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Private vs. Public Companies: Diverging Paths in Workplace Incident Reporting

TL;DR

Private companies lead in Reports per 100 Employees and substantiation rates, indicating a more proactive approach to compliance.

NAVEX's 2025 Benchmark Report analyzes internal reporting data to provide insights for compliance officers and executives.

The report helps organizations understand cultural health, operational risks, and improve workplace civility, ultimately fostering transparent and safer environments.

Insider Trading and Political Activity saw significant increases while Product Quality and Safety declined, reflecting dynamic shifts in reporting trends.

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Private vs. Public Companies: Diverging Paths in Workplace Incident Reporting

The 2025 Whistleblowing & Incident Management Benchmark Report by NAVEX sheds light on the contrasting approaches private and public companies take towards internal incident reporting. With data from over 4,000 organizations, the report reveals that private companies not only report incidents at a higher rate of 1.80 reports per 100 employees compared to 1.10 in public companies but also substantiate these reports more frequently, with a 50% substantiation rate versus 43% for public entities.

Workplace civility stands out as the most reported category, making up nearly 18% of all incidents. Carrie Penman, Chief Risk and Compliance Officer at NAVEX, points out the profound impact of workplace incivility on organizational culture, productivity, and employee retention. This finding underscores the importance of fostering a respectful work environment to mitigate negative outcomes.

The report also uncovers differences in how organizations respond to substantiated reports. Private companies are more inclined to terminate employment following a substantiated case, whereas public companies often opt for disciplinary actions. Additionally, private companies report a higher percentage of business integrity issues, accounting for 21% of total reports compared to 18% in public companies.

Among the report's key findings is a record-high overall substantiation rate of 46%, indicating an improvement in the effectiveness of compliance programs. There's also a notable shift in reporting channels, with web and digital forms now more commonly used than traditional hotline methods. Despite an increase in retaliation reporting rates from 2.84% to 3.08%, the substantiation of these claims remains low at 18%.

This comprehensive analysis by NAVEX, accessible at https://www.navex.com, emphasizes the evolving dynamics of workplace reporting and the necessity for strong, transparent compliance mechanisms across different types of organizations. The disparities in reporting practices between private and public companies highlight the need for tailored approaches to incident management and compliance.

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