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1、1 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM2023Regional Whistleblowing Hotline Benchmark Report Covering Europe,Asia Pacific,North America and South AmericaNAVEX.COMPrepared byCarrie Penman Chief Risk&Compliance Officer,NAVEX Ian Painter Director,Marketing EMEA&APAC,NAVEXEric G
2、neckow Research Analyst,NAVEXIsabella Oakes Senior Data Analyst,NAVEXContentsIntroduction 3Executive Summary 4A Snapshot of our Database 61 Report Volume 81a How does your Report Volume Per 100 Employees compare to others?91b Report Intake Method the impact of using a unified incident 11 management
3、system on reporting volume 1c Report Volume by month 142 Report Benchmark Categories 162a Reports by Benchmark Category 172b Reports by Issue Type 202c Reporter Allegations Versus Inquiries 223 Anonymous Reporting Rate 243a Anonymous Versus Named Reporting 253b Anonymous Reporting Rate by Employee C
4、ount 273c Follow-Ups to Anonymous Reports 294 Substantiated Reports 314a Substantiation Rate 324b Substantiation Rate by Benchmark Category 344c Substantiated Versus Named Reports 374d Substantiation Rates by employee count 395 Case Closure Time 415a Case Closure Time in days 425b Case Closure Time
5、by Anonymous Versus Named Reports 456 Incident&Report Date 476a Gap Between Incident and Report Date 486b Gap Between Incident and Report Date by Benchmark Category 507 Reporting Intake Method 527a Report Intake Method comparison 537b Substantiation Rate by Intake Method 567c Anonymous Reporting Rat
6、e by Intake Method 598 Reports of Retaliation 608a Frequency of Retaliation Reports 619 Report Outcomes 639a Report Outcomes by frequency of total reports 649b Outcome Substantiation 66Conclusion 68About the Authors 693 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMIntroductionConsi
7、stent analysis and benchmarking of whistleblowing hotline data helps organizations answer crucial questions about their risk and compliance programs.This includes the efficacy those programs have in driving the ethical culture of the organizations operations worldwide.Does the organizations culture
8、encourage employees to raise concerns without fear of retaliation?Is the investigation process expedient and effective,helping to build trust and mitigate risk?Does the nature of reported issues raise red flags when compared to regional norms?Utilizing over 1.5 million anonymized customer reports re
9、ceived in 2022,and with a focus on four geographic regions,NAVEX provides this 2023 analysis to help risk and compliance practitioners understand and benchmark how their program performance compares with regional peers.The benchmarking metrics in this document provide a framework for organizations t
10、o speak a common language of ethics and compliance risk while identifying areas to enhance ethical cultures across silos and regional boundaries.Throughout this study,we will focus on commonalities and differences across Europe,Asia Pacific(APAC),North America and South America.This report benefits
11、from an extensive refinement of data analysis methodology NAVEXs internal data science team conducted to inform the approach of the previously published 2023 Hotline&Incident Management Benchmark Report.This earlier report,which looks at incident trends from a global perspective,includes additional
12、guidance and context for these enhancements.Readers are encouraged to review the previous report for more information on these refinements and for guidance on how to apply them in assessing their own programs.New for this regional report is a first-ever view of several benchmarking metrics by region
13、 of report origination,which supplements the view of metrics by region of organization headquarters.These two views provide different lenses through which to consider the various benchmarking metrics in the context of organizations and workforces.This report also features several new benchmarking me
14、trics,including analysis of 24 Issue Types revealing nuanced workforce sentiment.APAC calculations for 2021 have also been updated to include the Middle East,which resulted in some refinements to 2021 data.Several metrics show enhanced distributions,though for certain years,only medians are availabl
15、e.Risk and compliance professionals can trust these benchmarks to help guide decision making and to better understand how their programs compare against peers in their respective regions.To leverage more advanced benchmarks,NAVEX offers custom benchmarking options as part of our GRC Insights benchma
16、rking services.These resources include benchmarking based on industry,size and other elements specific to individual organizations.Learn more about our services at .4 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMExecutive SummaryEach year,NAVEX conducts a deeper analysis of our ann
17、ual global Hotline&Incident Management Benchmark Report to gain insights on regional incident reporting trends among our worldwide customer base.We analyze our global data by four main regions:North America,South America,Europe and Asia Pacific(APAC).As in years past,there are meaningful regional di
18、fferences revealed through this analysis.Yet we start our analysis of the 2022 reporting data with a major commonality reporters in all regions seem to be growing more cautious since 2021s“Great Resignation”,as evidenced by a marked increase in anonymous reporting year over year.Identifying all the
19、causes for this increased caution is beyond the scope of this study,but we suspect generalized economic uncertainty and geopolitical instability are playing a major role.These macro-economic trends likely contributed to an apparent retreat by reporters who were only recently far more likely to put t
20、heir name to a report than in years past.Workers now seem to have retrenched,bringing workforce culture issues to the fore as they devote greater focus to their current,and not prospective,employment.Yet even this major trend features regional nuances,revealed through enhanced analysis included in t
21、his report for the first time.In addition to our examination of incident data in the region of an organizations headquarters,NAVEX is now also presenting data as calculated by the region of report origination.This helps tell the story of organizational cultures illustrating how companies based in ce
22、rtain regions are employing their ethics and compliance programs worldwide.It also shines a light on regional cultures;metrics viewed through region of report origin that help reveal insights specific to workforces in those global areas.Below are some of the key insights from this analysis.Report vo
23、lume rises across all regions;reporters are more cautiousMedian Report Volume per 100 Employees rose for all regions comparing 2022 to 2021.This likely points to broad forces impacting the worlds workforces potentially,that weaker job markets and more uncertainty have given some workers greater urge
24、ncy to invest energy in the dynamics in their current workplaces versus focusing outward at exploring different opportunities.Organizations in the European Union also faced the accelerating rollout of the EU Whistleblower Protection Directive during this time period,which mandated many organizations
25、 in the bloc set up internal whistleblowing systems.It will be notable to see the extent to which EU report volume increases over time Europe and APAC still show far smaller median volumes than North and South America overall.As volumes have increased,so has the share of reports submitted anonymousl
26、y.This may again reflect a greater sense of caution among workers in all regions.Organizations in North America show the lowest median anonymity rate.Meanwhile,it was reports made in Europe that were the least likely to be anonymous,suggesting reporters in that region may have the least actual conce
27、rn about retaliation.5 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMExecutive summary continuedHealth&safety reports recede while HR-type reports grow;Europe retaliation holds steadyNew for this report,NAVEX examined 24 Issue Types as subsets to the six broader Benchmark Categories
28、 defining the sorts of issues reporters are flagging through various intake mechanisms.This Issue Type analysis is the result of an extensive review of nearly 22,000 variations of ways in which NAVEX customers categorize the report issue data of their own programs.We consider a common taxonomy as a
29、gold standard for the industry going forward,but our reconciliation of these thousands of reports into respective Issue Types allows them to meaningfully inform this reports analysis.Guidance on categorizing this issue data for individual programs is available in the 2023 Hotline&Incident Management
30、 Benchmark Report.Starting with Benchmark Categories,broadly speaking,Environment,Health and Safety(EHS)reports were a smaller median share,or a generally consistent share,of total reports across all regions and measures in 2022 compared to 2021.This likely shows the decline of COVID-19s prominence
31、as a share of other issues around the world,whether viewed through the lens of headquarters or by region of report.Meanwhile,the median share of HR,Diversity and Workplace Respect reports generally grew in prominence across all regions and measures,likely showing how workers are focusing more intens
32、ely on the human dynamics of their workplaces.Looking at the 24 Issue Types reveals some complex nuances between regions by headquarters and report origination.Some differences stood out,often where North America deviated from other regions.Organizations based in North America showed a far smaller m
33、edian share of reports representing Conflicts of Interest.Free and Fair Competition reports were significantly more prominent as a share of all reports made outside of North America.Health and Safety reports were a greater share across all measures in North America,as were reports related to Imminen
34、t Threat to a Person or Property.These findings could all be considered through the lens of regional regulatory pressures the EUs proposed directive on human rights in the supply chain,for example,or through review of the political climate in the United States where reports of threats against people
35、 or property are,unfortunately,more regular occurrences.Finally,we continue to closely watch the share of reports linked to retaliation.While this Issue Type represents a relatively small share of global reports,it has an outsize impact on how much reporters are willing to trust an internal reportin
36、g system.The share held steady for organizations based in Europe while Substantiation Rates decreased with the rollout of the EU directive,we would have expected both these measures to grow as workers became more used to utilizing reporting systems.That said,for reports actually made in Europe,the s
37、hare of retaliation reports increased.This may be evidence of a growing public awareness around the issue of retaliation in that region.Japan is also seeing the rollout of new whistleblower protection and internal reporting regulations these are all forces to watch in the impact on metrics going for
38、ward.North American originating reports and North America-based organizations show by far the greatest share of retaliation reports this could show a reporter awareness around this issue,or that organizations are doing a good job at inviting reports of this issue type.Meanwhile,the share of reports
39、submitted about retaliation increased slightly for reports made in all regions apart from APAC,where it held steady.Phone and web use grow as intake methodsFor reports originated by reporters in every region,phone intake grew as a share of all intake methods.To this day,some reporters simply want to
40、 talk to a person.The rise of remote work may also help explain this trend,eliminating the fear some workers might have of being overheard by a coworker or other party while making a report.That said,the share of reports made by phone for organizations headquartered in Europe fell.Risk and complianc
41、e program leaders based in this region may have an opportunity to better educate reporters about the value of a phone call as an option in order to avoid missing out on potential reports.Reports made by web generally comprised the largest share of reports across all measures and geographies,with som
42、e exceptions.Phone intake represents the largest share of reports originating in North America.“Other”,which includes in-person reporting,matches web for reports originating in APAC,suggesting workers in that region are utilizing in-person and other channels in a significant way.Seasonal pattern eme
43、rges for report volumeExamining median reports by month,a consistent trend seems to emerge across all regions that might help inform the seasonal allocation of training resources to best support the greatest reporting activity periods.Specifically,with some individual variance,regions generally show
44、 a stable increase in reporting volumes during the final four-to-five months of the year and into January.This pattern appears most clear when viewed by region of report origination,supporting a sense that norms for those respective areas are driving these patterns.6 /2023 Regional Whistleblowing Ho
45、tline Benchmark ReportNAVEX.COM6 /2023 Regional Whistleblowing Benchmark ReportNAVEX.COM52 MILLION Employees1.52 MILLION Reports3,430 Organizations A SNAPSHOT OF OUR DATABASEHR,Diversity&Workplace RespectMedians and ranges provide context for your individual benchmarksIndustry Leading ApproachWe use
46、 Medians or Midpoints rather than averages to reduce the impact of outliersWe calculate ranges to help identify extreme data points as potential areas of concernMethodologyOur report reflects many issue types:Our report reflects all intake methods:0554045500070HotlineWebOtherAc
47、counting,Auditing&Financial ReportingBusiness IntegrityMisuse,Misappropriation of Corporate AssetsOtherEnvironment,Health&SafetyNAVEX customers generate the worlds largest database of reports.This 2023 benchmark provides compliance insights from around 52 million employees generating over 1.5 millio
48、n reports in 2022,representing 3,430 customers that received 10 or more reports in 2022.7 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM7 /2023 Regional Whistleblowing Benchmark ReportNAVEX.COMRepresentative of these top 12 industriesHEALTHCARE&SOCIAL ASSISTANCEFINANCE&INSURANCEACCO
49、MMODATIONEDUCATIONAL SERVICESPROFESSIONAL,SCIENTIFIC,AND TECHNICAL SERVICES ADMINISTRATIVE AND SUPPORT SERVICESRETAIL TRADETRANSPORTATION EQUIPMENT MANUFACTURINGINFORMATIONFOOD SERVICES AND DRINKING PLACESTRANSPORTATION&WAREHOUSINGWHOLESALE TRADEReports from Around the WorldNAVEX analyzed the report
50、ing data used in this publication by both company headquarters region and report origination region.We then grouped these organizations into four regions:Europe,Asia Pacific(APAC),North America and South America.APAC includes Australasia,Middle East and Asia.Reports from Africa-based organizations o
51、r Africa-originated reports are omitted unless otherwise noted.5.4%3.9%6.9%0.9%77.0%93.2%10.8%2.0%HQ LocationReport Origination8 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM1Report Volume 9 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM1aHow does your Report Volum
52、e per 100 Employees compare to others?The Report Volume per 100 Employees benchmarking metric allows organizations of all sizes to compare total unique contacts across all reporting channels(web,hotline,open door,email and more).It is key for organizations to have accurate employee counts when asses
53、sing this metric.Additionally,any large changes in staffing levels over the course of a period should be considered.How to calculateFind the number that reflects all the reports gathered by all reporting channels,divide that number by the number of employees in the organization and then multiply it
54、by 100.For this metric to accurately compare to the calculation weve provided,organizations should not exclude any reports,regardless of intake method,issue type,substantiation or category.NAVEX methodology update NAVEX refined its analysis to include an additional decimal place to better differenti
55、ate year-over-year reporting.Central 50%range of the distributions were included as an additional refinement to this metric within the overall range graph to better reflect the concentration of report volumes.The smaller bars collocated within the graphs show the range of Report Volume per 100 Emplo
56、yees represented by the central 50%.The full bar represents the central 80%of all organizations.Findings In Europe,specifically the EU,whistleblower protection regulations are rolling out across all member countries.This may be contributing to increased reporting rates year-over-year as more organiz
57、ations adopt reporting mechanisms.However,levels were still only at about pre-pandemic volumes across Europe in this years data.South America saw a major increase in median reporting volume comparing 2019 to 2022,rising from 2.24 to 2.54 Reports per 100 Employees.This is also the largest absolute me
58、dian Reports per 100 Employees across all geographies.These findings come with the caveat that this region has the fewest data points among those in this study.North America and APAC have also exceeded pre-pandemic reporting volumes.AnalysisBetter informed by the inclusion of an additional decimal p
59、lace in this years analysis,median Report Volume per 100 Employees was above pre-pandemic levels across all geographies apart from Europe which was effectively level in 2022.All geographies saw median volume increase compared to the prior year.North and South America-headquartered organizations saw
60、the biggest year-over-year increase from 1.36 to 1.64 Reports per 100 Employees for North America,and 2.30 to 2.54 for South America.This increase comes after a year where median report volumes dipped across regions apart from APAC.That period coincided with what many called“The Great Resignation”a
61、strong job market following the initial disruptions of the COVID-19 pandemic that saw many workers becoming less engaged with their current employer.It is possible that there is a pent-up demand of sorts for reporting issues at various organizations,one that is now emerging as the disruption of the
62、pandemic appears to be subsiding and workers are returning to being more invested in their current workplaces.This data also comes as the EU Whistleblower Protection Directive began coming into effect across all member countries.While Europe did indeed see a year-over-year increase in median reporti
63、ng volume comparing 2021 to 2022,the volume remains substantially lower than South and North America-headquartered organizations.It will be interesting to see how European volumes change as more people have access to internal reporting systems in the region.10 /2023 Regional Whistleblowing Hotline B
64、enchmark ReportNAVEX.COMMedianRangeCentral 50%Range Report Volume per 100 Employees by Headquarters Region(HQ)and Median Reporting Value(MRV)00194.00.15.90.10.6620214.90.21.80.6220226.10.32.30.800.10.10.34APAC202020192.22.40.10.10.500.5220212.80.10.21.10.4720222.30.10.31.20.5300.511.522.5
65、3Europe 05020201916.813.60.60.32.652.24202134.05.42.30202227.56.20.61.11.40.32.54South America02468912.711.80.30.31.511.54202111.70.63.61.36202214.00.74.41.640.40.3North America1a11 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMThe Report Intake Method compares
66、 the level of reporting received by two groups of organizations.The first group only tracks reports received from their hotline and web reporting channels.The second group tracks reports gathered by other means(open-door conversations,email,physical mail,mobile and more)in their incident management
67、system in addition to the reports received via their hotline and web reporting channels.Readers of this report should benchmark their program against the appropriate cohort,yet it is also worth noting that the“all sources”method clearly illustrates the benefit of a holistic,multi-channel approach fo
68、r recording larger volumes.How to calculateFirst determine which group best reflects your organizations approach.Then conduct the Reports per 100 Employees calculation as described previously.NAVEX methodology update NAVEX refined its analysis to include an additional decimal place to better differe
69、ntiate year-over-year reporting.Central 50%distributions were included as an additional refinement to this metric within the overall range graph to better reflect the concentration of report volumes.The smaller bars collocated within the graphs show the range of Report Volume per 100 Employees repre
70、sented by that central 50%group.The full bar represents the central 80%of all organizations.In previous years,NAVEX has used both open and closed case sources to determine customer category.This year we have refined the methodology to only use open cases,which has resulted in some refinements to pri
71、or year reporting.This will be our methodology moving forward.APAC was recalculated to include the Middle East,as it was not included when the 2021 metrics were calculated last year.NOTE regarding reports received via mobile intake:while some organizations have requested a breakout of reports receiv
72、ed via mobile intake,this is not currently possible.Therefore,“mobile”reports reports made online through a mobile device are counted with the“web”Intake Method.Findings Not surprisingly,organizations that track report volume across multiple channels registered greater median report volumes than tho
73、se who measure only web and hotline.This held true across all regions.For those measuring only web and telephone intake,median volumes ticked up for all regions apart from Europe.For organizations tracking all intake sources,North and South America saw significant increases in volume year-over-year.
74、AnalysisBe it generational,situational,technological or simple personal preference,reporting parties differ in how they interact with an internal reporting system.Tracking only some of these channels web and telephone means a risk and compliance professional may be missing out on the full picture of
75、 their organizations cultural health.Aside from Europe,year-over-year median Intake Method volumes rose in all regions for organizations that only measure web and hotline reports.APAC showed the largest increase,from a median of 0.40 Reports per 100 Employees to 0.68.For organizations only measuring
76、 web and hotline intake,APAC showed the greatest median increase year-over-year,from 0.40 to 0.68 Reports per 100 Employees.Europe showed a comparatively small drop that was consistent with a multi-year decline,from 0.40 to 0.33 median Reports per 100 Employees.For those measuring intake from all so
77、urces,both South America and North America saw substantial increases to median Report Volume per 100 Employees 2.17 to 3.68,and 1.97 to 2.54,respectively.All regions showed increases for organizations measuring intake from all sources,evoking the overall finding of increased Report Volume per 100 Em
78、ployees seen globally.As noted in the methodology updates,this is the first year NAVEX has included a central 50%distribution.Retroactive analysis shows the central 50%range growing slightly in the direction of more reports for some geographies,with the largest shift appearing to be for North Americ
79、an organizations capturing all intake sources.1bReport Intake Method the impact of using a unified incident management system on reporting volume12 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMMedianRangeCentral 50%RangeReport Volume per 100 Employees for Organizations that Track R
80、eports from Web&Telephone Only(MRV)00194.65.60.10.10.370.4620212.91.420227.71.60.680.10.1 0.20.20.40APAC20202.20.10.4620192.60.10.5220212.40.1 0.20.80.4020221.70.1 0.20.70.3300.511.522.53Europe 11.302468912.516.90.60.32.312.2820219.74.72.3020224.72.430.50.81.30.3South America02
81、4681012202011.60.31.50201911.20.41.5520216.12.220227.80.52.61.150.30.2 0.50.99North America1b13 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMMedianRangeCentral 50%RangeReport Volume per 100 Employees for Organizations that Track Reports from All Sources(MRV)00195.95.90.1
82、0.20.500.7820215.90.32.30.7320226.12.50.880.20.10.3APAC202020192.73.20.10.10.580.6720212.90.10.21.40.6120222.90.31.40.7100.511.522.530.2Europe 0020201957.920.10.60.42.7.473.00.41.09.11.67.81.32.173.682.69South America0501916.716.30.40.62.112.3202116.35.21.97202220.91
83、.16.92.540.50.4 0.8North America1b14 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMFindings Monthly report volume trends show a consistent global pattern generally lower from April through August,and rising to a sustained,higher volume through the end of the year.Seasonal patterns i
84、n reporting volume appear clearest when grouped by country of report origin,suggesting that regional norms such as holiday travel may be drivers.AnalysisIn the first year of analyzing report volume by month,NAVEXs globally framed Hotline&Incident Management Benchmark Report contemplated that a plung
85、e in reporting volume identified in the first part 2020 was attributable to widespread COVID-19 lockdowns.However,subsequent analysis has found that this lull,while more pronounced in 2020,appears to be part of a seasonal pattern that is largely consistent across different geographies.Regions genera
86、lly show a stable increase in reporting volumes during the final four-to-five months of the year and into January.While its beyond the scope of this analysis to determine a definitive cause,this end-of-year timeframe corresponds to a time when many workers have returned to work after periods of holi
87、day travel,and when some are facing increased pressure to achieve year-end goals.This may be a time when risk and compliance professionals want to ensure they have strong resources for following up on reports,and to focus training that reminds users of the nature of the system.Trends identified in t
88、his analysis were strongest when viewed by region of report origin as opposed to region of organization headquarters,suggesting that it is the norms of those regions,not the culture of the organization itself,that is the biggest contributor to these patterns.1cReport Volume by month15 /2023 Regional
89、 Whistleblowing Hotline Benchmark ReportNAVEX.COM Monthly Reports(Frequency by Region HQ)0.50%0.45%0.40%0.35%0.30%0.25%0.20%0.15%0.10%0.05%0%9.0%8.5%8.0%7.5%7.0%6.5%FJAJAOMMJSDNNorth AmericaSouth AmericaMiddle East&AfricaAPACEuropeFJAJAOMMJSDN7.0%6.0%5.0%1.0%0.9%0.8%0.7%0.6%0.5%0.4%0.3%0.2%0.1%0%Mon
90、thly Reports(Frequency by Report Origination Region)1c16 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM2Report Benchmark Categories 17 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMReceiving reports in a variety of categories can be an indication of program effectiv
91、eness.Reporters are trusting the system as a vehicle for reporting a wide range of issues not just certain types of concerns.Tracking the nature of reports collected can reveal program gaps and successes.Receiving below-typical volumes in certain areas could speak to a need for more training or awar
92、eness,while receiving above-typical volumes could indicate an area where there is risk to be addressed.We organize our database into five primary report categories,as well as an“Other”category.These groupings comprise our six primary Benchmark Categories broad characterizations of the major forces i
93、mpacting the culture of organizations across the globe.We further divide these Benchmark Categories by a total of 24 Issue Types,a more nuanced label of specific issues.NAVEX is analyzing this Issue Type data by region in this report for the first time.At NAVEX,we believe the standardization of Issu
94、e Types across the ethics and compliance industry is necessary for effective benchmarking.It is more meaningful to understand,and report on,the true nature of issues impacting an organization when Benchmark Categories and Issue Types are more standardized.Definitions of the 24 Issue Types are availa
95、ble as an appendix to NAVEXs 2023 Hotline&Incident Management Benchmark Report.The Benchmark Categories are defined below:Accounting,Auditing&Financial Reporting are reports that pertain to these functions in an organization(e.g.,financial misconduct,internal controls,audit).Business Integrity are r
96、eports that show how an organization interacts with third parties,data,legislation,patients or customers.Issue Types include conflicts of interest,vendor/customer issues,fraud/waste/abuse,HIPAA,data protection,global trade,human rights,free and fair competition,product quality/safety,and insider tra
97、ding.Human Resources(HR),Diversity&Workplace Respect are reports that involve internal parties and often relate to employee relations or misconduct.Issue Types include discrimination,harassment,workplace civility,retaliation,compensation and benefits,substance abuse,and general or other HR.Environme
98、nt,Health&Safety(EHS)are reports that involve an element of safety typically pertaining to employees,environmental regulations or workplace health(e.g.,EPA compliance,assault or threat of an assault,workplace safety,OSHA).Misuse or Misappropriation of Assets are reports that specify company assets o
99、r time is being wasted or used in a manner other than what is expected(e.g.,employee theft,inaccurate expense reporting,time clock abuse).Other is a category for hard-to-classify reports,that might range from complaints about too few snacks in the breakroom to feral cats prowling the corporate parki
100、ng lot(those are actual reports organizations have received over the years).Historically these Other reports were included with HR,Diversity and Workplace Respect issues,as these issues were typically addressed by Human Resources.Starting in 2021,we report these separately to be more precise in our
101、analysis and keep the HR category as truly HR-related issues.2aReports by Benchmark Category18 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMHow to calculateFirst,ensure each report is sorted into one of the six Benchmark Categories or the 24 Issue Types.Then,divide the number of re
102、ports in each of the six categories by the total number of reports.Please note,when we are using the median for each category,the total wont necessarily add up to 100%.NAVEX methodology updateIn calculations involving Benchmark Category or Issue Type frequency,we categorize the reports and find the
103、frequency among all reports without grouping by organization.Frequency values should total 100%,or close to it,due to rounding.This year,NAVEX undertook an exhaustive audit of the categorization of each Issue Type which comprise the six Benchmark Categories.As a result of the extensive audit,finding
104、s related to reports of Harassment,Discrimination and Retaliation have been refined,including data reported in prior year reports.Findings Whether by headquarters location or region of report origination,Europe,North America and South America saw median rates of EHS reports fall and HR,Diversity&Wor
105、kplace Respect reports increase as workforce concerns pivoted away from COVID-19.APAC was the exception,where reports in those categories were relatively consistent by headquarters location and region of report origination.The greatest proportion of HR-type reports made in respective regions were ma
106、de by reporters located in North and South America a potentially meaningful reading into workforce attitudes in those regions.AnalysisSince percentages for this benchmark are relative to overall reports in a given year,the share that a given Benchmark Category or Issue Type represents as part of an
107、overall mix does not necessarily indicate that the number of reports of a certain issue are growing or shrinking year over year.Rather,the proportion of reports in different areas can be seen as something of a“temperature check”for the“mood”of reporters in different regions around the world in a giv
108、en year.This can help risk and compliance professionals ensure they have resources in place to accommodate those trends.Indeed,it does appear that the“mood”is evolving.Viewed by both headquarters location and region of report origination,EHS reports comprised a smaller median share of overall report
109、s year-over-year for all regions apart from APAC,where they largely held steady.This is consistent with other conjecture in this report that COVID-19-related workplace concerns were declining in prominence,though risk and compliance programs connected to APAC appear to be facing more consistent work
110、force attitudes around EHS.Meanwhile,the median share of HR,Diversity&Workplace Respect reports increased by headquarters and report origination region in all regions apart from APAC,where it largely held steady.This comes as more organizations were settling on long-term plans for their current and
111、future workplaces after the disruptions of COVID-19.Relatively speaking,North-and South America originated reports showed a stronger proportion of issues in the HR,Diversity&Workplace Respect category than Europe or APAC.Reports made in Europe showed the greatest share of issues in the Accounting,Au
112、diting&Financial Reporting Benchmark Category,which is not surprising given that this was the primary focus of allowable reports in Europe for many years.2a19 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Benchmark Categories by Region HQ(MRV)Accounting,Auditing and Financial Repor
113、tingBusiness IntegrityHR,Diversity and Workplace RespectEnvironment,Health and SafetyMisuse,Misappropriation of Corporate AssetsOther Benchmark Categories by Report Origination Region(MRV)20222222202222South America23%65%6%3%4%4%16.7%
114、22.1%8.1%5.2%47.9%4.8%20.0%22.7%6.5%5.1%53.5%4.3%APAC28%57%10%5%7%24.2%46.5%7.7%6.7%5.9%15.7%23.8%46.8%8.2%7.3%14.3%7.1%North America25%65%11%3%55.0%18.2%6.7%4.1%13.7%3.5%51.1%18.8%8.2%4.8%13.0%3.7%Europe15.1%20.8%7.8%5.2%46.2%26%58%6%5%9%50.8%7.1%15.0%7.2%20.7%Europe50.0%South America14.5%25%61.3%7
115、.7%8.9%5.9%16.7%23.4%63.4%6.7%7.9%5.8%APAC33.3%8.3%50.0%10.0%6.5%15.8%33.3%11.2%7.3%16.1%50.0%North America18.8%59.2%4.4%16.0%3.9%18.9%9.5%55.6%5.0%15.4%4.3%18.2%33.3%12.5%8.3%11.7%12.5%8.6%20.0%55.0%33.3%2a7.9%8.2%10.0%4.8%9.4%20 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMFindin
116、gs The share of reports for a respective region frequently shifts when viewed from either location of headquarters or area of report origination,inviting nuanced interpretations of this data Conflict of Interest reports were more prominent as a share of total reports made in Europe,APAC and South Am
117、erica compared to those made in North America.For organizations headquartered in Europe,however,they were much higher than for those headquartered in the other regions Misuse or Misappropriation of Assets-type reports were more prominent as a share of total reports made in APAC.By headquarters,APAC
118、still leads,but only just ahead of organizations headquartered in North America Health and Safety reports had the largest relative share of reports among regions for reports originating in North America,and also for organizations headquartered in that region Imminent Threat to a Person or Property r
119、eports represented a substantially greater share of reports originating in North America than in other regions,and also when viewed by headquarters location Reports of harassment or discrimination were a larger share of reports for organizations headquartered in Europe and APAC.Rates were roughly co
120、nsistent when viewed by report originationAnalysisBetween the 24 Issue Types,four regions,and the distinction of either headquarters or report origination,readers of this report have no shortage of ways to examine this data and find figures relevant to their own programs.As a reminder,viewing by hea
121、dquarters location weighs findings more toward the culture of organizations and how they implement their values and incident management programs globally.This could reflect certain regulatory pressures or cultural norms that guide the mindset of leadership in those regions,such as whether it is more
122、 common to encourage all workers to use the intake system to report a wide range of issues.When considered through the lens of report origination,this can give a closer sense of potentially meaningful distinctions cultural or otherwise in how reporters are using those systems.One example is Bribery
123、and Corruption.This has traditionally been more prominent as a median share of reports for Europe and APAC,possibly due to the complexity of third parties or agencies involved in cross-border deals.Organizations headquartered in those regions showed the greatest median respective shares of Bribery a
124、nd Corruption reports.Yet this shifts when looking at the median share of reports originating in different regions,showing smaller shares in Europe and APAC and with South America-originated reports showing a greater share.Human Rights is another important topic for Europe in particular given supply
125、 chain regulations that are now taking effect.This is another complex story.Here APAC-headquartered organizations showed the greatest median share of their reports as Human Rights,and by report origination,South America showed the greatest share.Europe-headquartered organizations still showed relati
126、vely large median shares of their reports as related to Human Rights,suggesting reporters across their global supply chains are paying attention to this issue reports made in Europe around Human Rights were a relatively small share.The nuances continue.Conflict of Interest reports represented a far
127、greater frequency of reports made in Europe(14.53%),APAC(17.48%)and South America(10.21%)than in North America(4.85%).It is important to note that this may not necessarily suggest that this issue is less prominent as a concern among North America reporters for example,it may be that North American r
128、eporters are more likely to be using internal hotlines to report a broader mix of other issues.Interestingly,while Europe remains at the top of the list for its relatively large share of respective Conflict of Interest reports when data is viewed through the lens of headquarters location,the other r
129、egions generally level out,with 18.35%for Europe,5.66%for APAC,7.97%for South America and,finally,7.55%for North America.Free and Fair Competition reports made from Europe(0.38%),APAC(0.26%)and South America(0.33%)were also a significantly larger share of overall reports than in North America(0.07%)
130、.This finding was generally consistent when looking at data by headquarters region.A greater median share of reports made in North America were related to Health and Safety(9.25%),compared to Europe(5.72%),APAC(6.11%)and South America(5.63%)another finding consistent by headquarters location.The fre
131、quency of reports made from APAC showed the greatest share of reports related to the Misuse or Misappropriation of Assets(10.08%),compared to Europe(5.63%),North America(3.29%)and South America(3.37%).This was also largely consistent with findings by headquarters location.Organizations headquartered
132、 in Europe and APAC showed a substantially greater share of their reports in the Harassment and Discrimination Issue Types.This could be seen as a good sign organizations headquartered in those regions are encouraging reporters to“speak up”about these important HR-type issues.Meanwhile,the share of
133、reports originating across all regions is generally consistent in these categories,with reports made in North America showing the greatest share of respective reports in the Discrimination Issue Type.Finally,in a sobering finding,reports originating in North America showed the greatest frequency amo
134、ng all regions of reports related to Imminent Threat to a Person or Property(0.45%),compared to the share in Europe(0.09%),APAC(0.09%)and South America(0.12%).This contrast was even more pronounced when viewed through the lens of organizations headquartered in North America.2bReports by Issue Type21
135、 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMIssue Types(Frequency)2bIssue Type HQ Region Report Origination RegionEuropeAPACNorth AmericaSouth AmericaEuropeAPACNorth AmericaSouth AmericaAccounting,Auditing&Financial ReportingAccounting,Auditing and Financial Reporting7.71%9.10%1.
136、74%2.09%4.84%4.73%1.70%3.38%Business IntegrityBribery and Corruption1.62%1.64%0.63%1.07%1.06%1.78%0.34%2.31%Confidential and Proprietary Information1.10%0.34%0.45%0.27%1.08%0.71%0.38%0.42%Conflicts of Interest18.35%5.66%7.55%7.97%14.53%17.48%4.85%10.21%Data Privacy and Protection1.71%1.09%5.21%0.14%
137、6.52%3.32%4.01%1.63%Free and Fair Competition0.77%0.26%0.07%0.11%0.38%0.26%0.07%0.33%Global Trade0.23%0.05%0.13%0.01%1.39%0.14%0.09%0.09%Human Rights0.64%0.88%0.06%0.30%0.18%0.22%0.04%0.39%Insider Trading0.08%0.03%0.02%-0.08%0.03%0.01%0.03%Other Business Integrity8.66%10.82%15.05%5.83%10.15%11.17%12
138、.65%11.54%Political Activity0.01%0.01%0.02%-0.06%0.02%0.01%0.02%Product Quality and Safety0.43%0.63%0.53%0.04%0.35%0.53%0.28%0.15%HR,Diversity&Workplace RespectCompensation and Benefits0.60%1.30%2.20%0.42%2.98%0.64%3.32%0.91%Discrimination9.27%14.61%7.81%5.87%7.06%5.06%9.82%7.58%Harassment8.39%14.03
139、%4.07%4.15%4.39%4.89%5.54%6.62%Other Human Resources20.22%14.33%26.60%51.12%21.25%22.80%29.49%29.65%Retaliation0.75%0.63%0.99%0.43%0.64%0.52%1.33%0.80%Substance Abuse0.51%0.16%0.73%0.37%0.56%0.25%0.68%0.25%Workplace Civility3.41%3.66%7.16%4.97%4.90%4.55%7.58%7.84%Environment,Health&SafetyEnvironment
140、0.16%0.02%0.12%0.08%0.13%0.03%0.13%0.18%Health and Safety4.96%7.28%9.85%2.54%5.72%6.11%9.25%5.63%Imminent Threat to a Person or Property0.08%0.02%0.40%0.02%0.09%0.09%0.45%0.12%Misuse or Misappropriation of AssetsMisuse or Misappropriation of Assets3.16%4.34%4.02%1.62%5.63%10.08%3.29%3.37%OtherOther7
141、.20%9.09%4.60%10.59%6.02%4.61%10.59%6.53%22 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMThis metric categorizes reports made by employees as either an allegation or an inquiry.Both types of reports provide valuable insight.Allegations are important points of concern or incidents e
142、mployees have trusted their organization to investigate.Inquiries are questions,requests for guidance,etc.and are not any less important.Inquiries highlight key areas where more training may be needed,or policies that may need to be refreshed.Traditionally,inquiries have lagged far behind allegation
143、s as a share of total uses of an incident management system.Yet users should be made to feel comfortable making inquiries a stronger understanding of the policies around a potential issue can help support better substantiation rates and investigatory outcomes.How to calculateCategorize each of your
144、reports as either an inquiry or an allegation.To find your percentage of inquiries,divide the number of inquiries by the total number of reports received in the period.Repeat this process for your allegations.Findings Europe and APAC-headquartered organizations recorded a notably smaller share of in
145、quiries in 2022 compared to North and South America.Yet the finding nearly flips for reports made in Europe and APAC.In a multi-year trend,the frequency of inquiries has decreased compared to allegations across all regions except South America.This is most pronounced for reports originating in Europ
146、e and APAC,and least in North America.APAC-headquartered organizations showed the smallest respective share of inquiries in 2022.South America-headquartered organizations showed near parity for Reporter Allegations Versus Inquiries,a finding to be considered with caution due to less available data f
147、rom this region.AnalysisIt is possible that the proliferation of personal electronic devices and remote work has given users of internal reporting systems an increasingly better opportunity to“do their own research”around policies and regulations.This might be helping to drive a decline in the share
148、 of inquiries compared to allegations.Yet it may also be the case that organizations are not doing enough to educate their users about the methodology and value of inquiries or that users are rushing to make an allegation without enough research.These points all deserve consideration.Organizations s
149、hould be doing everything they can to ensure reporters feel comfortable making inquiries this helps reporters to be properly informed on policy before alleging a violation and builds trust that an investigation will be taken seriously.Across all regions,users of reporting systems were far more likel
150、y to use internal reporting systems to make allegations as opposed to inquiries.This was generally consistent when viewed through the lens of headquarters location,though South America-headquartered organizations have shown a substantially larger share of system utilization as inquiries since 2020.T
151、his finding should be taken with some caution due to less data available regarding South America for this study.In an interesting reversal,while Europe-and APAC-headquartered organizations showed the smallest frequency of reports as inquiries,reporters in those regions were far more likely to make i
152、nquiries with Europe showing the largest share.The share of reports categorized as inquiries has ticked downward across all regions for several years.This finding may provide the grounds for risk and compliance professionals to gain buy-in for training to refresh understanding about the capability t
153、o make inquiries through the system.2cReporter Allegations Versus Inquiries 23 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Reporter Allegations Versus Inquiries by HQ Region(Frequency)Europe Region HQ202092%8%202193%7%202294%6%APAC Region HQ202097%3%202197%3%202297%3%North Americ
154、a Region HQ202086%14%202190%10%202290%10%South America Region HQ202073%27%202155%45%202258%42%Inquiry Reports(%)Allegation Reports(%)North America Report Region2020202191%91%9%9%202292%8%South America Report Region202088%12%202188%12%202290%10%Europe Report Region202082%18%202186%14%202288%12%APAC R
155、eport Region202082%18%202185%15%202290%10%Reporter Allegations Versus Inquiries by Report Origination Region(Frequency)2c24 /2022 Risk&Compliance Incident Mangement Benchmark ReportNAVEX.COM3Anonymous Reporting Rate25 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMThe Anonymous Versu
156、s Named Reporting benchmarking metric shows the percentage of all reports submitted by reporters who chose to not disclose their identity.How to calculateDivide the number of reports submitted by an anonymous reporter by the total number of anonymous and named reports received.Findings Anonymous rep
157、orting rates increased across all geographies in 2022,signaling more caution among reporters North America-headquartered organizations had the lowest median anonymity rates among regions.Meanwhile,it was reports that originated in Europe that were least like to be anonymousAnalysisAs in other areas
158、of this analysis,looking at data by headquarters can be seen as a stronger indicator of the way that organizations in given regions are implementing their cultural and ethical practices locally and globally.Reports by originating region,meanwhile,may more directly show the attitudes of reporters in
159、those respective regions.Both lenses show a reversal of the dip in anonymity seen in 2021,suggesting that reporters have grown more cautious in the year following the so-called“Great Resignation.Looking at the region of report origination,it was reporters in Europe that were least likely to make a r
160、eport anonymously.It may be that the EU directive is helping to reassure reporters in the region that they are protected from retribution,inspiring more to submit a named report.Meanwhile origination,organizations based in North America had the lowest anonymity rates.3aAnonymous Versus Named Reporti
161、ng26 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Anonymous Reporting Rate by HQ Region(MRV)MedianRangeCentral 50%Range3a85%18%38%75%56%86%28%46%76%63%83%0%18%69%83%13%33%71%48%55%75%16%36%71%91%29%48%80%57%67%North America202120222020APAC20202022202020%80%40%60%100%0Europe 202120
162、22202056%56%64%85%38%54%75%89%15%35%77%58%68%South America202%Anonymous Reporting Rate by Report Origination Region(MRV)100%0%77%46%100%0%29%82%58%87%0%25%71%50%84%12%35%71%55%100%0%31%82%60%100%0%42%88%67%100%2%72%100%0%11%48%0%40%74%20%80%40%60%100%0APAC20212022Europe 20212022South Amer
163、ica20222North America27 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMThis metric provides Anonymous Reporting Rate across different sizes of organizations.NAVEX previously analyzed this data across two defined organizational size cohorts,and now provides this data across
164、 six organizational size definitions.Findings Median rates of anonymous reporting tend to be lower for the largest sizes of organizationsAnalysisLooking through the lens of employee count and headquarters,the median rate of anonymous reports generally tends to decrease toward the larger end of the s
165、ize spectrum across all geographies.That said,APAC-headquartered organizations saw a bulge in the middle,with the greatest median anonymous reporting rates in the 6,000-9,999-employee size range.Data for South America-headquartered organizations does not include the largest two cohorts,though it sti
166、ll appears anonymous reporting rates weigh heaviest toward smaller organizations in that region.3bAnonymous Reporting Rate by Employee Count28 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Anonymous Reporting Rate by HQ Region and Employee Count(MRV)0%10%20%30%40%50%60%70%80%90%100
167、%EmployeesEurope100,000+55%10,000-49,99962%2,500-5,99968%50,000-99,99960%6,000-9,99964%0-2,49965%APAC100,000+62%10,000-49,99969%2,500-5,99969%50,000-99,99965%6,000-9,99976%0-2,49963%North America100,000+45%10,000-49,99952%2,500-5,99958%50,000-99,99942%6,000-9,99956%0-2,49955%South America100,000+10,
168、000-49,99967%2,500-5,99972%50,000-99,9996,000-9,99949%0-2,49967%Percentage of All Reports3b29 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMTraining and communication about the organizations reporting system should always highlight the capabilities provided for anonymous reporters t
169、o follow up on their reports while maintaining their anonymity.The Follow-Up Rate to Anonymous Reports benchmarking metric indicates the percentage of reports that were submitted anonymously and subsequently followed-up on by the reporter.How to calculateFind the number of reports where the anonymou
170、s reporter returned to the system at least once.Divide this number by the total number of anonymous reports received.Please note,we do not count multiple follow-ups to the same report per metric.If an anonymous reporter returned to the system two times,that report would be included once.Findings Med
171、ian anonymous follow-up rates were strongest in Europe and APAC by both headquarters and report origination By origin of report,reporters in all regions followed up less in 2022 than they did in 2021.By headquarters,Europe saw a slight increase,South America held steady and APAC and North America sa
172、w declinesAnalysisNew this year,NAVEX has analyzed follow-up rates to anonymous reporting by region.Median anonymous report follow-up rates were strongest for Europe and APAC,whether viewed by headquarters region of organization or by region of report origination.Looking at region of report originat
173、ion,median follow-up rates show a dip for all regions between 2021 and 2022.Yet by headquarters,while most regions declined or held steady,Europe-headquartered organizations recorded an increase.As noted in other areas of this report,the breadth and recent rollout of the EU Whistleblower Protection
174、Directive,which impacts EU-headquartered organizations,may be connected to this finding.Compliance professionals should be working to promote these follow-up rates as much as possible anonymous reporters should feel confident that they can remain engaged in the process without fear of reprisal,which
175、 in turn promotes better investigatory efficacy for compliance programs.At the end of the day,anonymous follow-up rates are another indicator of trust in the system and cultural health.3cFollow-Ups to Anonymous Reports30 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Follow-Ups to A
176、nonymous Reporting Rate by HQ Region(MRV)20%80%40%60%100%0APAC20212022Europe 20212022South America20222North America65%24%54%38%59%14%25%28%45%36%53%8%19%41%30%50%7%16%37%26%56%9%18%36%25%50%9%16%35%25%56%25%46%54%18%28%36%13%34%44%MedianRangeCentral 50%Range3c Follow-Ups to Anonymous Rep
177、orting Rate by Report Origination Region(MRV)100%71%44%78%0%14%0%51%36%57%0%17%43%29%54%0%15%40%26%83%0%12%50%32%67%0%11%44%28%100%100%0%53%35%0%40%58%20%80%40%60%100%0APAC20212022Europe 20212022South America20222North America31 /2022 Risk&Compliance Incident Mangement Benchmark ReportNAV
178、EX.COM4Substantiated Reports32 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMThe overall Substantiation Rate reflects the median rate of reports from both named and anonymous reporters that were closed as substantiated or partially substantiated.A high Substantiation Rate reflects a
179、 well-informed employee base making high-quality reports,coupled with effective investigation processes.How to calculateFor overall Substantiation Rate:Divide the number of allegation reports that were closed as substantiated or partially substantiated by the total number of allegation reports that
180、were closed as substantiated/partially substantiated or unsubstantiated as defined below.1.Substantiated:Reports that when investigated prove to be correct or partially correct as reported 2.Unsubstantiated:Reports that when investigated prove to be inaccurate as reported or reports that cannot be p
181、roven to be true NAVEX methodology update Organization overall Substantiation Rates of 0%and 100%are included in the distribution this year.This ensures that median calculations are more reflective of changes that may occur across the entire population previously considered to be outliers.This chang
182、e impacts some previously published metrics for prior years.The refinements to previous year calculations are noted throughout this section when updated.Findings The only metric to show a notable shift in Substantiation Rate year-over-year was for reports made in Europe,where rates increased.This ma
183、y show increased reporter education in light of the EU directive By headquarters,most regions have seen stable rates for several years,though median rates for APAC-headquartered organizations declined 10 percentage points since 2019(becoming in-line with Europe-and North America-headquartered peers)
184、South America-headquartered organizations continued to show the strongest substantiation,at a median 47%for 2022.By report origination region,South America and Europe now show the strongest substantiation at 42%AnalysisEvery year-over-year measure in this analysis showed Substantiation Rates effecti
185、vely staying the same apart from one an increase in median Substantiation Rates for reports made in Europe.This may show that reporters are becoming more educated about how and what to report in light of the EU directive.This is certainly a positive shift.South America-headquartered organizations ha
186、ve maintained some of the highest substantiation rates over multiple years,with a 47%median substantiation rate in 2022.North America-headquartered organizations had the second-highest median rate,at 41%.APAC-headquartered organizations have seen a steady decline in median substantiation rates since
187、 2019,declining 10 percentage points to the 2022 rate of 40%.These trends are largely consistent when comparing data by headquarters of organization and by region of report origination,though notably,by report origination region,South America and Europe showed the same median Substantiation Rate in
188、2022.4aSubstantiation Rate33 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Substantiation Rate by HQ Region(MRV)79%25%56%75%25%0%0%41%52%40%MedianRangeCentral 50%Range4a43%44%75%0%25%56%41%79%0%25%58%41%North America2021202220200%66%52%39%79%5%26%25%60%40%42%APAC202020222020100%0%2
189、2%58%47%91%19%31%58%47%50%South America202%80%40%60%100%0Europe 202120222020 Substantiation Rate by Report Origination Region(MRV)0%76%56%38%97%0%9%8%60%39%75%0%16%53%36%80%0%14%53%36%100%0%17%66%43%100%0%11%64%42%100%0%66%100%5%0%38%67%42%20%80%40%60%100%0APAC20212022Europe 20212022South
190、 America20222North AmericaFindings Substantiation Rate by Benchmark Category tells a complex story readers should carefully consider how data by headquarters and data by report origination region are relevant to their organizationsAnalysisA complex story emerges when viewing substantiatio
191、n rates by Benchmark Categories and regions.For example,median EHS report Substantiation Rates reached a four-year low for organizations headquartered in APAC in 2022,though they ticked up significantly for reports originating in that region comparing 2021 and 2022.By contrast,median EHS substantiat
192、ion rose year-over-year for organizations headquartered in Europe yet declined for reports actually originating in that region.It seems likely in all of these cases that COVID-19 would be the primary driver of any major EHS trends,but these differences show that compliance professionals should think
193、 critically about these findings in the context of their own organization and the regions in which it operates.4bSubstantiation Rate by Benchmark Category34 /2022 Regional Whistleblowing Benchmark ReportNAVEX.COM35 /2022 Regional Whistleblowing Benchmark ReportNAVEX.COM Substantiation Rate by Benchm
194、ark Category and HQ Region(MRV)56%50%50%57%202050%50%67%48%202150%50%67%50%202232%33%25%45%202131%33%42%40%202247%44%31%42%202043%42%47%45%202150%48%74%37%202237%35%37%37%33%34%50%39%50%40%33%38%20202021202249%46%46%43%202038%39%33%42%202141%31%40%40%2022EuropeNorth America South AmericaAPAC34%50%55
195、%50%202050%34%56%67%202149%40%54%50%2022Accounting,Auditing and Financial ReportingBusiness IntegrityHR,Diversity and Workplace RespectEnvironment,Health and SafetyMisuse,Misappropriation of Corporate AssetsOther4b36 /2022 Regional Whistleblowing Benchmark ReportNAVEX.COM Substantiation Rate by Benc
196、hmark Category and Report Origination Region(MRV)68%86%46%46%50%56%50%50%2021202223%29%22%15%202122%33%22%25%202244%39%40%43%50%50%33%50%2021202230%33%32%32%44%43%33%35%2021202241%43%37%38%33%35%38%38%20212022EuropeNorth America South AmericaAPAC50%56%38%33%50%50%36%35%20212022Accounting,Auditing an
197、d Financial ReportingBusiness IntegrityHR,Diversity and Workplace RespectEnvironment,Health and SafetyMisuse,Misappropriation of Corporate AssetsOther4b37 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMThe comparison of Substantiation Rates between anonymous and named reports shows t
198、he substantiation rate of all reports submitted by reporters who chose to remain anonymous versus the percentage of all reports submitted by reporters who did disclose their identity.Findings Substantiation Rates for anonymous versus named reports were largely flat,with some regional variance by hea
199、dquarters and region of report origination Named reports continued to have substantially greater substantiation rates than anonymous reports across all regions Named substantiation rates for APAC and Europe increased substantially by both headquarters and region of report originationAnalysisSubstant
200、iation Rates for anonymous reports held largely flat year-over-year when viewing results by report origination region.There was some variance when viewed by headquarters a small dip for Europe,and a small increase in South America.For named reports,both Europe and APAC saw year-over-year increases i
201、n Substantiation Rates by both headquarters and report origination region.This may be related to increased reporter confidence in response to requirements addressing reporting systems in the EU Whistleblower Protection Directive.Japan is also rolling out internal reporting requirements for many orga
202、nizations.For all regions and measures,Substantiation Rates for named reports significantly exceeded that for anonymous reports.Given this difference,risk and compliance professionals should take care to ensure reporting parties have no fear of reprisal when submitting a report.Secondly,to improve s
203、ubstantiation for anonymous reports,programs should encourage mechanisms that allow anonymous reporters to follow up on their allegations anonymously.4cSubstantiated Versus Named Reports(MRV)38 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Named Substantiation by Report Origination
204、 Region40%40%2021 2022North America50%50%2021 2022South America43%202150%2022Europe45%202150%2022APAC60%40%20%0%Anonymous Substantiation by Report Origination Region30%202130%2022North America35%202137%2022South America29%202129%2022Europe29%202129%2022APAC60%40%20%0%Comparison of Substantiation Rat
205、es Between Anonymous&Named Reporters(MRV)60%40%20%0%Anonymous Substantiation by HQ Region38%35%2019 202030%202131%2022North America49%42%2019 202041%202145%2022South America40%37%2019 202039%202134%2022Europe39%33%2019 202034%202134%2022APAC60%40%20%0%Named Substantiation by HQ Region50%50%43%44%201
206、9 2020 2021 2022North America52%57%54%50%2019 2020 2021 2022South America50%50%2019 202041%202145%2022Europe61%47%2019 202043%202150%2022APAC4c39 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMThis metric shows Substantiation Rate by employee count across the expanded six size cohort
207、s NAVEX included for this years analysisFindings Smaller organizations tended to have higher Substantiation Rates across all regions Differences in Substantiation Rate by employee count tend to be least pronounced for organizations headquartered in North AmericaAnalysisSubstantiation Rates tend to b
208、e higher for smaller organizations.Interestingly,this weighting of greater substantiation rates toward the smaller end of the size spectrum appears to be least significant for organizations headquartered in North America.As elsewhere in this report involving employee count-centric benchmarking metri
209、cs,this data is only available by headquarters region.Note:For 2023,we have moved to a larger breakdown of employee count as shown in the following chart.4dSubstantiation Rates by employee count40 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Anonymous Reporting Rate by HQ Region a
210、nd Employee Count(MRV)0%10%20%30%40%50%60%70%80%90%100%EmployeesEurope100,000+34%10,000-49,99938%2,500-5,99947%50,000-99,99940%6,000-9,99940%0-2,49946%APAC100,000+40%10,000-49,99934%2,500-5,99951%50,000-99,99930%6,000-9,99944%0-2,49960%North America100,000+39%10,000-49,99938%2,500-5,99939%50,000-99,
211、99936%6,000-9,99938%0-2,49943%South America100,000+10,000-49,99949%2,500-5,99932%50,000-99,9996,000-9,99970%0-2,49947%Percentage of All Reports4d41 /2022 Risk&Compliance Incident Mangement Benchmark ReportNAVEX.COM5 Case Closure Time42 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMC
212、ase Closure Time metrics measure the number of calendar(not business)days it takes an organization to close a case.This benchmark is a key indicator of program effectiveness and impacts employees perception of the process.How to calculateCalculate the number of days between the date a report is rece
213、ived and the date it is closed for each report.Then,calculate your mean Case Closure Time by dividing the total sum of all Case Closure Times by the total number of cases closed.For median values,find the middle point of the data this is an important metric to explore,as it helps lessen the impact o
214、f outliers that can have a major impact on overall metrics.NAVEX methodology update Previously,Case Closure Times were centered only on organization mean values.This year,the“median reporting value(MRV)of organization median”values are calculated.Findings Europe and South America-headquartered organ
215、izations saw substantial decreases in median Case Closure Time over recent years Reports made in Europe and APAC have trended toward shorter Case Closure Times in recent years By both headquarters and report origination region,North America shows substantially shorter Case Closure Time compared to o
216、ther regions with little change over recent yearsAnalysisIn order to facilitate more robust benchmarking for readers of this report,NAVEX is now providing“median of organization median”values for this metric to diminish the impact of outliers.Our team of experts considers the“median of organization
217、median”method to be the gold standard,giving risk and compliance professionals and other senior leaders a better idea of the typical performance of their programs.This method forms the focus of our analysis of trends throughout this years report.Looking at headquarters region which can be seen as a
218、general indicator of how organizations are deploying their compliance programs globally median case closure times have dropped substantially over the past three years for Europe(52 days,46 days,42 days)and South America(40 days,32 days,28 days).This is a very positive trend.APAC experienced a small
219、increase over that time period,and North America largely held steady.Looking at report origination region,Case Closure Time has fallen for the reports made in Europe and APAC over that same period,and largely held steady for North and South America.Case Closure Time varies substantially across diffe
220、rent regions.By headquarters and report origination region,North America showed by far the shortest median case closure time,a rate that has remained consistent in recent years.5aCase Closure Time in days43 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Case Closure Time by HQ Regio
221、n(MRV)MedianRangeCentral 50%Range5a24747244862551152213740Days0North America202120222020APAC202020222020South America202120222020Europe 202 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM5a Case C
222、losure Time Using Organization Medians by Report Origination Region5246944893353665349735541Days0North America202120222020APAC202020222020South America202120222020Europe 2024541MedianRangeCentral 50%Range45 /2023 Regional W
223、histleblowing Hotline Benchmark ReportNAVEX.COMThe median Case Closure Time by Anonymous Versus Named Reports shows the calendar days taken to close a case in each respective category.As in other areas of analysis for Case Closure Time,NAVEX focuses its analysis on“median of medians.Findings By head
224、quarters and report origination region,North America marked the shortest median Case Closure Times in both anonymous and named reports.Closure times for both anonymous and named reports originating in Europe have shortened substantially since 2020,perhaps fueled by growing focus on whistleblowing du
225、e to the EU Whistleblower Protection DirectiveAnalysisBy both headquarters and region of report origination,North America showed the shortest median case closure times for in both the anonymous and named categories.Organizations headquartered in South America were close to their North American peers
226、,though reports originating in South America took relatively longer to close.Organizations headquartered in APAC and Europe showed substantially longer case closure times than those headquartered in the Americas.Median case closure times for both named and anonymous reports originating in Europe hav
227、e steadily shortened since 2020 especially in the case of anonymous reports.This may reflect increased maturity for internal whistleblowing programs in light of the rollout of the EU Whistleblower Protection Directive.5bCase Closure Time by Anonymous Versus Named Reports46 /2023 Regional Whistleblow
228、ing Hotline Benchmark ReportNAVEX.COMDaysDays Case Closure Time by Anonymous Versus Named Reports and Report Origination Region(MRV)020406080100Europe Anonymous2024435383433202120222020NamedDays 020406080100APACAnonymous2025644444437202120222020Named020406080100South AmericaAno
229、nymous20247444222020NamedDays 020406080100North AmericaAnonymous20224242222020NamedDaysDays Case Closure Time by Anonymous Versus Named Reports and HQ Region(MRV)020406080100Europe Anonymous20249520222020NamedDays 020406080100APACAnon
230、ymous2024648252543202120222020Named020406080100South AmericaAnonymous2023429352524202120222020NamedDays 020406080100North AmericaAnonymous20225232222020Named5b47 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM6Incident&Report Date48 /2023 R
231、egional Whistleblowing Hotline Benchmark ReportNAVEX.COMThis metric measures the days between the date on which an alleged incident occurred and the date the report was made.This gap can help assess an organizations culture,particularly around fear of retaliation and the extent to which reporting pa
232、rties have access to resources to inform their reports.How to calculateFind the time difference between the alleged incident date and the date the report was made for each report.Then,calculate your mean difference by dividing the total sum of all the differences between alleged incident dates and r
233、eport dates divided by the total number of cases closed.For median values,find the middle point of the data this is an important metric to explore,as it helps lessen the impact of outliers that can have a major impact on overall metrics.NAVEX methodology update Previously,Time Difference Between Inc
234、ident and Report Date was based only on organization mean values.This year,the“median reporting value(MRV)of organization median”value is used.For the purpose of NAVEXs latest approach to analysis,this is the most statistically accurate standard.Findings North America-headquartered organizations had
235、 the shortest median Gap Between Incident and Report Date;South America-headquartered organizations had the longestAnalysisOrganizations headquartered in North America had the shortest median Gap Between Incident and Report Date in 2022,at seven days.South America-headquartered organizations had the
236、 longest,at 22 days.This metric is only available by headquarters region.6aGap Between Incident and Report Date49 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Gap Between Incident and Report Date by HQ Region(MRV)Gap of Time (In Days)Europe13North America 7APAC15South America22504
237、03020100 Gap Between Incident and Report Date by Report Origination Region(MRV)Gap of Time (In Days)Europe13APACNorth America 146South America006a50 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM6bGap Between Incident and Report Date by Benchmark CategoryThis metric shows
238、 the Gap Between Incident and Report Date by the six Benchmark Categories the primary classifications for the varieties of allegations that broadly impact corporate culture.Median values are the primary focus for this analysis,which helps mitigate the impact of outliers.Findings Accounting-type repo
239、rts generally showed the longest median Gap Between Incident and Report Date across all measures and regions,apart from longer gaps for South America-headquartered organizations in the Business Integrity and misuse of assets-type reports Excluding“Other,”EHS-type reports generally had the shortest m
240、edian Gap between Incident and Report Date by both report origination region and headquarters region HR-type reports,which are growing in prominence as a share of all reports,had the longest Gap between Incident and Report Date for organizations based in Europe,and shortest for those based in North
241、AmericaAnalysis For organizations based in all regions,accounting-type reports typically showed the longest Gap Between Incident and Report Date.These incidents are likely to be complex and may take reporting parties longer to articulate as a coherent allegation.EHS-type reports were some of the sho
242、rtest.Longer gaps may show that reporters have greater fear of retaliation or less immediate awareness about what constitutes misconduct both areas where compliance programs can provide training and tools.HR-type reports had the longest gap for organizations based in Europe,and shortest for those ba
243、sed in North America.51 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Gap Between Incident and Report Date by Benchmark Category and HQ Region(MRV)EuropeAPACSouth America629122North America 77134853916Number of DaysBusiness IntegrityHR,Diversity and Workplace
244、RespectEnvironment,Health and SafetyMisuse,Misappropriation of Corporate AssetsOtherAccounting,Auditing and Financial Reporting Gap Between Incident and Report Date by Benchmark Category and Report Origination Region(MRV)EuropeAPACSouth America561511North America 66113651216Num
245、ber of DaysBusiness IntegrityHR,Diversity and Workplace RespectEnvironment,Health and SafetyMisuse,Misappropriation of Corporate AssetsOtherAccounting,Auditing and Financial Reporting6b52 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM7Reporting Intake Method53 /2023 Regional Whistle
246、blowing Hotline Benchmark ReportNAVEX.COMIt is important to offer a variety of intake channels to employees and to track all reports received in a single,centralized database.This includes hotline,web intake and all other intake sources such as open-door conversations,letters to leadership,emails an
247、d walk-ins to the compliance office.Monitoring the methods employees choose for reporting can help determine which are preferred or easy to access,and which methods employees may not know are available to them.Employee choice will vary depending on the makeup of the workforce and their access to pho
248、nes,computers or onsite human resources.How to calculateGroup all non-hotline and non-web intake reports such as open-door,email,postal mail,fax and manager submissions together as Other.Then total up the number of reports received by each channel,hotline,web intake and other methods,and divide each
249、 by the total number of reports.Findings All reporting channels remain significant for all regions,but variations for relative utilization exist by headquarters region and region of report origination Phone and web intake frequency has grown or stayed mostly flat by report origination region Analysi
250、sAcross all regions,it is important to note that all intake channels are utilized.While the popularity of a given channel may differ by region,organizations should ensure they are eliminating as many obstacles to reporting as possible and enabling reporting parties to use their system in the manner
251、that is best suited for their individual situation.Web intake continues to grow as a share of intake for reports across all regions when viewed by originating region of report.This channel has become the most popular channel in all reporting regions apart from North America,where most reports 45%wer
252、e made via phone.In fact,phone intake has also grown in popularity for reporters year-over-year in all regions reporters still want to talk to a person in many cases,and remote work arrangements may be making it easier to do so privately.These trends are more complex when viewed through the lens of
253、headquarters region,but again,readers should note that all channels are active and remain important to support in 2022.Finally,apart from organizations headquartered in APAC,“Other”reporting which includes in-person reports notched downward.This aligns with the increase seen in anonymous reporting i
254、n this years data,as this category inherently sees a very small number of anonymous reports.7aReport Intake Method comparison54 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMNote:Percentages may not total 100%due to rounding.HotlineWebOther Report Intake Method by HQ Region(Frequenc
255、y)South AmericaNorth AmericaEurope20022200222002222%21%27%19%38%56%39%49%39%21%34%32%APAC2002220%17%26%19%47%65%66%58%34%19%8%23%33%32%32%35%21%25%27%27%46%42%41%38%20%12%11%12%60%72%51%52%20%19%38%36%7a55 /2023 Regional Whistleblowing Hotline Benchmark Re
256、portNAVEX.COM Report Intake Method by Report Origination Region(Frequency)Europe20202021202217%9%15%8%17%10%37%49%37%41%45%44%46%42%48%50%38%46%APAC202020212022North America20202021202238%40%45%27%31%30%35%29%25%South America20202021202221%19%24%51%49%52%28%32%24%7aNote:Percentages may not total 100
257、%due to rounding.HotlineWebOther56 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMThis metric illustrates the rate that allegations from both named and anonymous reporters are found to have some merit,segmented by intake method.“Other”includes methods such as reports made face-to-fac
258、e,emails and physical mail.Findings Data by report origination region generally shows lower median substantiation rates than data by headquarters region APAC reports,both by headquarters and report origination region,showed a decline in phone substantiation rates “Other”reports showed the highest me
259、dian substantiation rates across all measures and geographies Web reports had greater substantiation rates than telephone reports across all measures and geographiesAnalysisBy headquarters region and report origination region,APAC saw a decrease in median hotline(phone)substantiation rates comparing
260、 2021 to 2022.The intake channel where the greatest number of overall reports are found to be substantiated is Other,which notably includes walk-in reports.Further,web reports where reporters can take time to think through the framing of an allegation were substantiated at a higher rate than phone r
261、eports.These findings hold true across regions,whether by headquarters or origination of report.Interestingly,data by report origination generally showed lower substantiation rates than by headquarters region.7bSubstantiation Rate by Intake Method57 /2023 Regional Whistleblowing Hotline Benchmark Re
262、portNAVEX.COM Hotline Substantiation Rate by HQ Region(MRV)40%38%31%33%2019 2020 2021 20222019 2020 2021 20222019 2020 2021 20222020 2021 2022Europe37%34%36%25%38%37%30%30%53%33%50%APACNorth AmericaSouth America70%60%50%40%30%20%10%0%70%60%50%40%30%20%10%0%2020 2021 202250%43%45%39%40%35%40%2018 201
263、9 2020 2021Europe40%35%38%38%40%39%33%36%2018 2019 2020 2021APAC2018 2019 2020 2021North AmericaSouth America Web Substantiation Rate by HQ Region(MRV)70%60%50%40%30%20%10%0%2020 2021 202267%61%41%55%51%50%50%2018 2019 2020 2021Europe63%65%50%60%57%56%51%55%2018 2019 2020 2021APAC2018 2019 2020 2021
264、North AmericaSouth America Other Substantiation Rate by HQ Region(MRV)7b58 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Hotline Substantiation Rate by Report Origination Region(MRV)25%29%2021 2022Europe2021 202233%25%APAC2021 202227%27%North America2021 202237%41%South America70%6
265、0%50%40%30%20%10%0%70%60%50%40%30%20%10%0%Other Substantiation Rate by Report Origination Region(MRV)50%50%2021 2022Europe2021 202250%56%APAC2021 202250%56%North America2021 202260%57%South America70%60%50%40%30%20%10%0%Web Substantiation Rate by Report Origination Region(MRV)27%33%2021 2022Europe20
266、21 202229%33%APAC2021 202233%34%North America2021 202239%33%South America7b59 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM7cAnonymous Reporting Rate by Intake Method The median Anonymous Reporting Rate by Intake Method metric shows the share of anonymous reports made in respective
267、 reporting channels.Findings Anonymous reporting was most common in the web channel for organizations headquartered in all regions Europe,APAC and South America-headquartered organizations received more anonymous reports via the“Other”channel than those headquartered in North AmericaAnalysisIt appea
268、rs clear for organizations headquartered in all geographies that providing a Web intake mechanism is important to capture reports from parties that wish to remain anonymous.This is the channel that receives the greatest respective share of anonymous reports.It is interesting to see a substantially g
269、reater share of reports for organizations headquartered in Europe,APAC or South America in the“Other”category than for organizations headquartered in North America.It is possible that North American organizations are funneling reporters toward hotline or web channels,or potentially are less likely t
270、o track reports from the“Other“channels.In any case,compliance professionals should be sure they are facilitating the channels necessary to accommodate reporters who wish to remain anonymous.Anonymous Reporting Rate by Intake Channel by HQ Region(MRV)EuropeSouth AmericaSouth AmericaAPACNorth America
271、 North America 62%71%14%60%76%9%51%72%1%68%73%8%HotlineWebOther Anonymous Reporting Rate by Intake Channel by Report Origination Region(MRV)EuropeAPAC50%57%0%63%74%4%51%69%0%73%79%0%HotlineWebOther60 /2022 Risk&Compliance Incident Mangement Benchmark ReportNAVEX.COM8Reports of Retaliation61 /2023 Re
272、gional Whistleblowing Hotline Benchmark ReportNAVEX.COMAgain for this years report,NAVEX chose to highlight specific observations regarding the Retaliation Issue Type.While representing a relatively small share of reports overall,reports of retaliation are a critical signal for compliance profession
273、als and their organizations.If reporters are experiencing retaliation or believe it is a risk,it is fundamentally damaging to promoting a speak-up culture.Reporters are more likely to go to outside enforcement bodies to have their voices heard,and misconduct is more likely to occur unknown to compli
274、ance programs until it is too late to act.Findings The share of reports alleging retaliation for APAC-headquartered organizations fell year-over-year,while substantiation of the reports received increased By region of report origination,the share of retaliation reports and substantiation rates were
275、largely steady apart from an increase in substantiation for South America Reports pertaining to North America(by headquarters region or report origination region)were the most likely to allege retaliation compared to other regions,but least likely to be substantiatedAnalysisSeeing reports of retalia
276、tion drop does not necessarily mean actual retaliation is less common it might indicate reporters are less vigorous in reporting it.Looking at frequency compared to substantiation rates for reports of retaliation helps paint a more nuanced picture of what is occurring within organizations and region
277、s.Seeing substantiation rates go up while retaliation reports went down for APAC may be seen as a potentially positive signal.When reports are made,they are more likely to reflect actual retaliation.However,compliance professionals should look at these numbers with a critical lens as a low rate of r
278、eports of retaliation does not mean retaliation is not occurring.The frequency of retaliation reports,along with their rate of substantiation,have both decreased for Europe-headquartered organizations since 2019.This comes as a surprise given our assumption that the EU Whistleblower Directive would
279、presumably increase public awareness about retaliation and reporting mechanisms in Europe.Reports pertaining to North America,both by headquarters and report origination,were the most likely among all regions to pertain to retaliation.However,through each lens,those reports were least likely among t
280、he regions to be substantiated.8aFrequency of Retaliation Reports62 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Retaliation Reports(Frequency)and Substantiation(MRV)by Report Origination Region1.4%1.2%1.0%0.8%0.6%0.4%0.2%0%0.4%0.6%28%28%20212022Europe0.5%17%2021APAC0.5%17%20220.7
281、%0.8%22%28%20212022South America1.1%1.3%14%14%20212022North America Retaliation Reports(Frequency)and Substantiation(MRV)by HQ Region1.4%1.2%1.0%0.8%0.6%0.4%0.2%0%1.1%42%1.2%0.7%0.7%27%28%23%20022Europe0.9%15%2021APAC0.6%24%20220.3%0.4%27%16%20212022South America1.1%24%0.9%0.8%1.0%22%14%1
282、5%20022North AmericaSubstantiation Reports(%)Retaliation Reports(%)8a63 /2022 Risk&Compliance Incident Mangement Benchmark ReportNAVEX.COM9Report Outcomes64 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMTo analyze this metric,we organized Report Outcome results to include
283、:discipline,no action,policy review/change,referral,separation,training and other.How to calculateSort substantiated reports into one of the seven outcomes.Divide the number of reports in each of the outcomes by the total number of reports.NAVEX methodology update Previously noted updates to the Sub
284、stantiation Rate calculation methodology carry through to impact Report Outcome calculations,as these calculations use Substantiation Rate.Report Outcome frequencies now uses only substantiated reports(rather than all closed reports).Findings The balance of outcomes was generally consistent across a
285、ll regions,whether by headquarters or region of report origination Organizations headquartered in Europe and APAC were most likely to employ training in response to a substantiated report “No action”was the most common report outcome across all regionsAnalysisThese findings show that,by and large,or
286、ganizations headquartered in different regions were balanced in the frequency of their responses to substantiated reports.“No action”was the most frequent response.Compared to data from last years report,organizations headquartered in all regions were more likely to see“no action”as a report outcome
287、.Organizations headquartered in Europe were less likely to have the outcome of“discipline”this year(15%versus 11%).The same held true for those headquartered in APAC(16%versus 12%),North America(16%versus 12%)and South America(10%versus 4%).Only data by headquarters was available for year-over-year
288、comparisons in this metric.Organizations headquartered in APAC and Europe were most likely to provide training as a response.South America-headquartered organizations were least likely to impose discipline.9aReport Outcomes by frequency of total reports 65 /2023 Regional Whistleblowing Hotline Bench
289、mark ReportNAVEX.COM Outcome by HQ Region(Frequency)DisciplinePolicy Review/ChangeNo ActionReferredOtherSeparationTrainingEuropeAPACNorth America 3%2%4%South America11%19%14%15%4%3%4%2%3%6%4%4%0%7%7%4%2%61%55%58%73%11%12%12%4%Outcome by Report Origination Region(Frequency)DisciplinePolicy Review/Cha
290、ngeNo ActionReferredOtherSeparationTrainingEuropeAPACNorth America 3%10%3%South America15%10%13%11%3%3%4%2%3%3%4%5%3%4%3%3%4%64%53%58%63%9%18%13%12%9a66 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM9bOutcome Substantiation by HQ RegionThis metric shows the median substantiation rat
291、e for reporting outcomes.This reflects the typical percentage of reports in each outcome category that were considered substantiated.Findings Across all geographies,high median Substantiation Rates were seen for“discipline.”In all measures,all regions showed a 100%Substantiation Rate for“separation.
292、”Some actions were taken with relatively low Substantiation Rates,prompting consideration of areas where compliance professionals are choosing to act regardless of investigatory outcome Europe-headquartered organizations had by far the greatest Substantiation Rate associated with“referred”casesAnaly
293、sisNot surprisingly,the most punitive report outcomes correlated with the highest report Substantiation Rate.This rises up to the 100%Substantiation Rate across organizations headquartered in all regions for“separation,”with rates between 90%and 100%for“discipline.”Low rates were seen for“no action.
294、”The“referred”category suggests some interesting regional differences.Europe-headquartered organizations showed by far the greatest median substantiation rate for cases marked as“referred,”perhaps revealing a heightened standard of proof within corporate governance norms before involving another dep
295、artment.This might also suggest stronger silos between departments is more common for organizations headquartered in Europe.Trends were largely consistent year-over-year by headquarters region when compared to data from last years report,though it appears North and South America now recorded a lower
296、 substantiation rate before choosing to implement training.Given the programmatic emphasis to this analysis,we are only focusing on headquarters location.Readers of this report should consider that actions are being taken in some cases when a report is not substantiated.This can send a number of sig
297、nals,one being that the impression that a report is true could prompt action as a matter of employee morale or reputational risk.67 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COM Outcome Substantiation Rate by HQ Region(MRV)DisciplinePolicy Review/ChangeNo ActionReferredOtherSeparat
298、ionTrainingEurope8%82%98%56%60%100%67%APAC11%67%100%49%50%100%67%North America 6%51%93%50%53%100%57%South America3%99%56%86%100%59%9b68 /2023 Regional Whistleblowing Hotline Benchmark ReportNAVEX.COMFor in-depth guidance regarding NAVEX Issue Type definitions,statistical methodology and more,see the
299、 NAVEX 2023 Hotline&Incident Management Benchmark Report.Following are recommendations based on our key insights and learning from this report.These are intended to help risk and compliance professionals consider refinements to internal reporting programs,and their risk and compliance programs overa
300、ll.Develop strategies to optimize greater report volumes and anonymityAn increase in median Report Volume per 100 Employees across all regions is good news and requires programs to be adequately resourced to address reports in a timely fashion.Greater reporting volumes mean issues that might otherwi
301、se go unnoticed are brought to light,creating the opportunity for action before the issue gets worse or a reporter takes their issue outside the organization.Ensure employees are trained on the different ways to submit a report,as well as the ability to make inquiries and locate related policies.Thi
302、s will help ensure organizations dont miss out on greater report volumes,while also supporting higher-quality reports.Take care to build trust that employees are safe from retaliation when submitting a report with their name named reports are associated with better substantiation but remind reporter
303、s that it is also possible to report and follow up anonymously.This guidance could be especially important for EU-based organizations that are deploying whistleblowing systems for the first time in response to the EU Whistleblower Protection Directive,and could support an increase in report volume i
304、n the future.As COVID recedes,prepare to focus on more HR-type issuesWith the way that COVID-19 dominated the trends impacting the worlds organizations in recent years,many risk and compliance programs no doubt became highly proficient in responding to Environment,Health and Safety-type cases.Now,as
305、 HR,Diversity and Workplace Respect cases take up a greater share of reports across regions,day-to-day program work is likely going to be more people-focused for many organizations.This is an opportunity to retool the mindset of the compliance function to pay extra attention to how these issues are
306、impacting the culture of the organization and to whether reporting parties have the information they need to make a substantiated claim.When looking through the context of region of report origination compared to headquarters regions,organizations may see opportunities to focus various resources aro
307、und issue types.Germany,and the EU overall,are rolling out new supply chain regulations.Human rights issues are substantially more common for reports made in Europe versus other regions,though they trend more toward APAC-based organizations in terms of the overall mix.This regional context is import
308、ant to consider as risk and compliance professionals allocate resources for their own programs.Remind employees there is zero tolerance for retaliation and encourage them to report itJust because retaliation is not reported doesnt mean its not happening.Higher rates of reporting for retaliation coul
309、d reflect a workforce that is well aware of how to spot it and trusts the ability to flag it without fear of reprisal.It would seem organizations based in the EU would have seen retaliation reporting rates rise amid the rollout of the EU directive after all,the whole point of the directive is to pro
310、tect an individuals ability to make a report,with this being perhaps an area where strong protections are critical.EU or otherwise,regions should ensure employees feel comfortable speaking up.Reporters still value phone intake,but all channels are importantIn todays digital world,its interesting to
311、see how the share of reports made by phone in all regions rose comparing 2021 to 2022.This remains an important intake method,but in truth,all intake methods are important and associated with different advantages and disadvantages for the reporter,substantiation rates and a host of other factors.The
312、 bottom line is that organizations should offer a range of intake methods and educate prospective reporters about the value of each.Its also important that all intake methods,including things like a closed-door meeting,are logged,giving a full picture of the organizations cultural health.Examine sea
313、sonal reporting patterns for opportunities to focus resourcesSeasonal reporting patterns appear generally consistent across regions,and while specifics may vary for a given organization,a month-to-month analysis of report volume could reveal opportunities to focus training resources in anticipation
314、of a ramp-up.Or,consider reminders at times when volumes decrease the risk and compliance functions door is open year-round.Conclusion 69 /2023 Regional Whistleblowing Benchmark ReportNAVEX.COMAbout the AuthorsCarrie PenmanChief Risk&Compliance Officer,NAVEX Carrie Penman is the Chief Risk&Complianc
315、e Officer for NAVEX.Carrie has been with NAVEX since 2003 after serving four years as deputy director of the Ethics and Compliance Officer Association(ECOA).Carrie was one of the earliest ethics officers in America.She is a scientist who developed and directed the first corporate-wide global ethics
316、programme at Westinghouse Electric Corporation.Since joining NAVEX she has conducted numerous programme and culture assessment projects for its clients and regularly works with,and trains,company boards of directors and executive teams.Winner of the ethics and compliance initiatives Marshall Award f
317、or innovation in corporate ethics,and the first ever recipient of Compliance Weeks Lifetime Achievement award,Carrie also served as a corporate monitor and independent consultant for companies with government agreements.Carrie is the author of numerous compliance related articles and commentary and
318、is regularly quoted as a compliance expert in press and publications including the Wall Street Journal.Ian PainterDirector,Marketing EMEA&APAC,NAVEX Ian Painter is Marketing Director,EMEA&APAC,for NAVEX.A business graduate,Ian started his career in marketing communications with some of the worlds le
319、ading high-tech brands.Ian has authored many blogs,white papers and reports discussing best practice recommendations for businesses based in EMEA&APAC on topics including whistleblowing,sexual harassment,information and policy management,data privacy and third-party risk.He has also conducted severa
320、l market research projects on business,regulatory and compliance programme trends for European organisations.As well as presenting at European compliance events,Ian has established NAVEX risk and compliance roundtables and networking conferences that are free to attend for the risk and compliance co
321、mmunity undertaken as virtual and in-person events.Eric GneckowResearch Analyst,NAVEX A reporter by training,Eric works with a range of NAVEX senior thought leaders and data scientists to help communicate meaningful findings from the companys broad scope of experience serving risk and compliance pro
322、grams worldwide.He is principally involved in producing NAVEXs major research publications,including the annual Hotline&Incident Management Report.Isabella OakesSenior Data Analyst,NAVEXIsabella started working at NAVEX in 2021 as a data analyst.She obtained her M.S.in applied data science from Univ
323、ersity of San Diego and has a background in sales and customer service analytics.She uses her skills and focus on data ethics to improve business practices and customer experiences and has been published in an article discussing the importance of women in data science.70 /2023 Regional Whistleblowin
324、g Hotline Benchmark ReportNAVEX.COMNAVEX is trusted by thousands of customers worldwide to help them achieve the business outcomes that matter most.As the global leader in integrated risk and compliance management software and services,we deliver our solutions through the NAVEX One platform,the indu
325、strys most comprehensive governance,risk and compliance(GRC)information system.For more information,visit NAVEX.com and our blog.Follow us on Twitter and LinkedIn.AMERICAS5500 Meadows Road,Suite 500 Lake Oswego,OR 97035United States of America +1(866)297 0224EMEA+APAC4th Floor,Vantage London Great West Road Brentford,TW8 9AG United Kingdom +44(0)20 8939 1650SWEDENWorld Trade Centre,WhistleB City Office,Klarabergsviadukten 70 111 64 Stockholm,Sweden +46 725 47 76 00COPYRIGHT 2023 NAVEX GLOBAL.ALL RIGHTS RESERVED.