Types of Whistleblowers: Internal vs External Whistleblowing

Do you know difference between internal and external whistleblowers? Whistleblowing is crucial in maintaining ethical standards and ensuring accountability within organizations.These types vary depending on how and where they report the misconduct. In this post, we’ll explore the types of whistleblower and how they impact both ethical practices and organizational behavior.

What is Whistleblowing?

Whistleblowing is the act of reporting wrongdoing, unethical behavior, or misconduct within an organization. Whether it’s uncovering corruption, exposing harassment, or pointing out safety violations, whistleblowers often shine a light on issues that would otherwise remain hidden. Whistleblowing is often the response to an issue, but it can also be used to address problems before they escalate and protect the well-being of employees, stakeholders, and the public. 

The two types of whistleblowing can be broken down into two main categories based on the method and audience of the report: internal and external whistleblowing. Understanding these categories is essential, as each has its own set of challenges, benefits, and ethical considerations.

Internal Whistleblowing

Internal whistleblowing occurs when employees raise concerns within their organization, typically to their managers, HR departments, or compliance teams. 

• Organizations often prefer this type of whistleblowing because it allows them to address issues internally before they escalate or become public.

Companies encouraging internal whistleblowing are more likely to foster transparency, as employees feel they can voice concerns without fear of retaliation. However, challenges can arise if whistleblowers believe their concerns won't be taken seriously or fear backlash from their superiors. This is where building a speak-up culture becomes crucial, empowering employees to trust the process.

So, what are the types of whistleblowing? While internal whistleblowing involves keeping the matter within the company, external whistleblowing takes things to the next level, involving outside legal authorities or agencies. 

External Whistleblowing

External whistleblowing happens when individuals report issues to an authority outside the organization, such as government agencies, media outlets, or non-profit organizations. 

• This often occurs when internal reporting channels fail, or when the whistleblower believes that the organization might not handle the issue properly.

In contrast, external whistleblowing carries higher risks, such as public exposure of the issue, but it can also bring greater rewards. By bringing misconduct to light, whistleblowers can drive systemic change and hold powerful organizations accountable. 

However, laws exist to protect whistleblowers who go this route, ensuring they aren’t retaliated against for their actions. The difference between internal and external whistleblowing becomes particularly significant when deciding whether to resolve an issue quietly or bring it into the public eye.

The Two Types of Whistleblowing in Ethics

From an ethical perspective, the decision to engage in internal vs external whistleblowing can be a moral dilemma. 

On one hand, internal whistleblowing may give the organization a chance to rectify the issue without public scrutiny. On the other hand, if internal mechanisms are broken or corrupt, external whistleblowing may be the only way to achieve justice.

These types of whistleblowing in ethics greatly influence the organization's culture as well as society’s perception of accountability. It’s essential for organizations to ensure their internal reporting channels are trustworthy, as whistleblowers often face difficult ethical challenges when deciding whether to report internally or externally.

Impact of Whistleblowing on Organizations

Whether internal or external, whistleblowing can have profound effects on organizations. When handled properly, internal whistleblowing can lead to early detection of issues, helping organizations to resolve problems discreetly and maintain their reputation. However, ignoring or mishandling whistleblowers can lead to public exposure via external whistleblowing, which often results in greater scrutiny, legal consequences, and reputational damage.

Whistleblowers, whether they report internally or externally, have an important role in maintaining organizational integrity. The two different types of whistleblowers are both influenced by the culture of trust and transparency in their organizations. Providing safe and effective reporting channels makes the decision between internal and external whistleblowing easy for employees knowing they can speak up without fear.

So, are you ready to foster a speak-up culture in your organization? Book a demo with FaceUp, and provide your team with the tools they need to make their voices heard. You’ll be surprised at how quickly you’re on your way to creating a more ethical and transparent workplace.