EQS Group GmbH
Companies with established whistleblowing systems are more successful in limiting financial damage
In 2024, four out of ten companies (39 percent) experienced cases of illegal or unethical conduct within their own operations, and a third (34 percent) reported misconduct in their supply chains. However, almost half of all companies affected by misconduct were able to uncover a large share of the resulting financial losses thanks to their whistleblowing reporting systems. These are among the findings of the new Whistleblowing Report, published by EQS Group in cooperation with the University of Applied Sciences of the Grisons. The Whistleblowing Report 2025 is the fourth edition of this international study for which 2,200 companies in Germany, France, the United Kingdom, Italy, Switzerland, Spain, and the United States were surveyed. Professor Dr. Christian Hauser of the University of Applied Sciences of the Grisons, who led the project, comments: "The results show that whistleblowing channels play a key role in uncovering misconduct in organizations and their supply chains. Organizations with established systems are significantly more successful in limiting financial damage - clear evidence of the preventive effect of these instruments." Whistleblowing channels and complaints mechanisms serve different stakeholders Unlike previous editions, this year's report makes a clear distinction between internal whistleblowing channels for employees and external complaints mechanisms for third parties such as customers or suppliers. Whistleblowing channels are designed to help employees report misconduct within the organization, while complaints mechanisms focus on illegal or unethical behavior in the supply chain. 63 percent of the companies surveyed have implemented an internal whistleblowing channel, and 64 percent have established an external complaints mechanism. Achim Weick, founder and CEO of EQS Group: "Across markets and regions, we are seeing a clear trend: whistleblowing and complaints mechanisms are gaining importance not just for regulatory compliance - when used effectively, they foster a culture of transparency and integrity that strengthens trust among employees, partners, and customers." Traditional reporting channels still most widely used, but digital platforms are on the rise When setting up their whistleblowing channels, companies typically rely on a mix of different reporting options for employees. On average, they provide four separate internal channels - predominantly traditional methods such as email (70 percent), in-person meetings (66 percent), or telephone hotlines (58 percent); however, web-based whistleblowing systems and digital platforms are gaining ground (48 percent). For external complaints mechanisms, companies provide an average of three channels, with traditional contact methods still prevailing. One in seven companies records losses exceeding €100,000 Misconduct in organizations or supply chains poses a significant risk and can result in major financial losses. Among the companies surveyed, one in six (16 percent) reported losses of at least €100,000 caused by illegal or unethical behavior. However, almost half of all companies (49 percent) were able to uncover over two-thirds of their total losses thanks to their whistleblowing or complaints systems. Achim Weick emphasizes: "Whistleblowing systems can serve as strategic tools for identifying risks early and minimizing financial losses. Companies that invest in reliable solutions strengthen their resilience and underscore their integrity in the marketplace." High relevance of incoming reports Companies surveyed considered 6 out of 10 incoming reports (61 percent) - from both internal and external sources - to be relevant and substantial. Reports from employees most frequently concerned diversity and respect in the workplace, human rights, occupational health and safety, and data protection. Reports from external stakeholders, on the other hand, focused primarily on accounting, auditing and financial reporting, business integrity, and human rights. Anonymous reporting does not lead to more abuse 62 percent of internal whistleblowing channels allow anonymous reporting. For external complaints mechanisms, the percentage is slightly lower (42 percent). Abusive reports - defined as reports intended to deliberately damage a company or individual's reputation - made up 10 percent of all reports, regardless of whether anonymity is offered. The study therefore confirms that allowing anonymous reporting does not lead to more false or malicious submissions. One in two companies uses AI for misconduct prevention Aside from whistleblowing systems, companies also rely on several other measures to prevent and detect misconduct. More than three-quarters have implemented a code of conduct, and 73 percent rely on active and open communication by leadership as a preventive measure. AI tools are also increasingly used to investigate and prevent misconduct. Nearly half of the companies surveyed (45 percent) deploy AI-based systems for this purpose, led by organizations in the U.S. (56 percent) and the UK (53 percent). The full report is available to download at: https://www.eqs.com/compliance-wpapers/whistleblowing-report-2025 Press contacts E-Mail: christina.jahn@eqs.com
FH Graubünden: Prof. Dr. Christian Hauser E-Mail: christian.hauser@fhgr.ch
About EQS Group EQS Group is a leading international cloud provider for compliance & ethics, data privacy, sustainability management, and investor relations. More than 14,000 companies across the world use EQS Group's products to build trust by reliably and securely meeting complex regulatory requirements, minimizing risks and transparently reporting on business performance and its impact on society and the environment.
EQS Group's solutions are bundled in a cloud-based platform. This allows compliance processes for whistleblower protection and case handling, policy management, and approval processes to be managed just as professionally as business partners, third parties and risks, insider lists and reporting obligations. In addition, EQS Group provides software to fulfill human rights due diligence requirements across corporate supply chains, ensure compliance with data privacy regulations like GDPR and EU AI Act, and support efficient ESG management and compliant sustainability reporting. Listed companies also benefit from a global newswire, investor targeting and contact management, as well as IR websites and webcasts for efficient and secure investor communication.
EQS Group was founded in Munich in 2000. Today, the group employs around 600 professionals worldwide. https://www.eqs.com/
About the University of Applied Sciences of the Grisons (FHGR)
As a university of applied sciences, the FHGR focuses on dynamic thinking and proactive action. Its degree programs are geared toward practical challenges in business and society. It develops its more than 2,400 students in education and continuing education into responsible individuals. The FHGR offers programs in the fields of architecture and civil engineering, media, technology, and IT, as well as economics, services, and information science. Its interdisciplinary and transdisciplinary research focuses on applied future technologies, development in alpine regions, and entrepreneurial activity. Through its activities, the FHGR contributes to the success and competitiveness of individuals, institutions, and regions. To this end, it is firmly rooted in the region, plays an important role in Switzerland, and has an international reach. fhgr.ch Dissemination of a CORPORATE NEWS, transmitted by EQS Group. |
2207720 02-Oct-2025
