Where snitches make pitches--Corporate hotlines for ethics violations

 The WSJ has this story on the business of corporate hotlines for whistleblowers to report potential ethics violations.

Sex Scandals. Accounting Fraud. It’s All Showing Up on the Corporate Hotline.
A tip left on such a hotline led to the ouster of the Nestlé CEO. For affairs or minor office annoyances, operators are standing by.
By  Lauren Weber, Margot Patrick,  and Chip Cutter

"It’s an industry operating under the premise that companies run better when workers can safely sound the alarm on everything from bad breath to bribery. The task is often farmed out to third parties with names like SpeakUp, Navex and EQS.

"SpeakUp, based in Amsterdam, helps operate Nestlé’s line. In 2024, it handled 3,218 calls and messages with allegations ranging from bullying and harassment to fraud and conflicts of interest at Nestlé and its suppliers. Nestlé says it substantiated 20% of them, and 119 people left their jobs as a result.

“Hotlines are magic,” said Raheela Anwar, president and CEO of Group 360 Consulting, a Chicago-based corporate advisory firm. “Because people are willing to tell the truth.”

"At public companies, they’re also required. The post-Enron Sarbanes-Oxley financial reforms passed in 2002 mandated that companies have a process for whistleblowers to report potential ethics violations. A 2019 European Union directive does the same. More than 90% of U.S. firms with at least 1,000 employees provide a hotline for workers, according to HR Acuity, a company that helps employers track internal investigations and includes employee hotlines among its offerings. "