Incentivising ethics: Should internal whistleblowing be rewarded? A cross-country study

by Bashir Alao and Professor Kate Kenny

The occurrence of high-profile corporate scandals such as Enron, WorldCom, and the Deepwater Horizon disaster has reaffirmed the necessity for robust internal reporting mechanisms. Despite regulatory reforms and ethical training programmes, employees who witness wrongdoing frequently choose silence over disclosure due to fear of retaliation, reputational harm, or perceived futility. ¹ Research indicates that internal whistleblowing - where employees report concerns through internal channels - remains the most effective method for detecting organisational wrongdoing. ² However, fostering such a culture remains an enduring challenge.