A new workplace ethics survey reveals that one-third of employees fear retaliation for reporting misconduct, while many feel pressure to compromise their values.
The study shows troubling trust gap in American workplaces, with one-third of employees saying fear of negative consequences would stop them from reporting unethical or illegal conduct. The findings, from law firm Outten & Golden LLP’s inaugural Trust @Work: Is the American Workplace Facing an Ethical Crisis? report, suggest many employers are still failing to create safe speak-up cultures, despite growing scrutiny around ethics, compliance, diversity and accountability.
The survey of more than 1,000 Americans found that 22% of respondents have witnessed unethical or illegal conduct at work. Yet one in three said fear of retaliation or other negative consequences would prevent them from reporting it.
“When one-third of American workers fear reporting misconduct, that’s not just a red flag — it’s a systemic failure,” said Tammy Marzigliano, Partner and Co-Chair of Outten & Golden’s Whistleblower & Retaliation Practice. “If employees believe that speaking up at work comes with a personal cost, employers should be worried. Companies that fail to build cultures of trust and accountability are not only risking legal exposure, they are undermining their own long-term success.”
ETHICS PRESSURE AT WORK
The report also found that more than one in five employees, or 21%, have felt pressure to compromise their ethical standards. That figure rises to 26% among male respondents.
For business leaders, the data raises serious questions about whether workplace cultures are rewarding transparency, or quietly encouraging silence.
As previously reported, corporate scandals are rarely caused by “bad apples” alone. In How to minimise corporate scandals & protect reputation, Professor Guido Palazzo warned that unethical behaviour often takes root in cultures where pressure, tunnel vision and weak challenge mechanisms allow poor decisions to become normalised.
DEI TRUST GAP
The workplace ethics survey also highlights a disconnect between employee values and employer action on diversity, equity and inclusion. While 73% of Americans believe DEI should be a workplace priority, 28% say their employer does not treat it as one. The report notes that younger workers, as well as Black and Hispanic employees, are especially likely to view inclusive workplace practices as central to integrity and trust.
That mirrors wider Fair Play Talks coverage showing that bad behaviour at work persists despite increased DEI focus. A previous study found that 47% of workers had experienced or witnessed discrimination, harassment or microaggressions, while only 52% felt prepared to speak up or report inappropriate treatment.
The US ethics survey mirrors a UK report, which also shows that one-third of working Brits have experienced or witnessed workplace bias, with 45% of respondents saying they would not blow the whistle because they feared reputational damage.
COMMUNICATION AND ACCOUNTABILITY CONCERNS
The US workplace ethics survey also found that 13% of respondents do not believe their employer communicates honestly and openly, with scepticism rising among older employees. Across the findings, a notable share of workers expressed uncertainty about workplace ethics, communication and reporting safetym suggesting that many organisations may be overestimating the strength of their internal trust culture.
The findings also connect with broader questions about the role of leadership in building fairer workplaces. As Fair Play Talks noted in its World Day of Social Justice 2026 feature, social justice is experienced daily through pay decisions, promotion pathways, job security, accessibility and whether leaders choose to speak up or stay silent.
WHISTLEBLOWERS: DEFENCE AGAINST CORPORATE WRONGDOING
The report positions whistleblowers as a critical safeguard against corporate wrongdoing. However, awareness of available protections remains limited, with more than 40% of respondents saying they are unaware of government whistleblower programmes offering confidentiality, legal protection and financial incentives.
“Government whistleblower programmes give employees something many workplaces still fail to provide: a safe path to speak the truth,” said Dave Jochnowitz, Co-Chair of Outten & Golden’s Whistleblower & Retaliation Practice. “Internal systems often fail. When they do, these programmes help restore balance and ensure misconduct does not go unchecked. When employees know they can report fraud confidentially and with legal protections behind them, they become an essential first line of defence against corporate wrongdoing.”
WHY BUSINESS LEADERS SHOULD ACT NOW
The findings suggest the American workplace may be at an ethical inflection point. When employees fear retaliation, feel pressure to compromise their values, or doubt their employer’s commitment to inclusion, misconduct risks are more likely to escalate.
For employers, the message is clear: ethics cannot sit solely within compliance policies or annual training. It must be embedded in leadership behaviour, manager accountability, transparent communication and trusted reporting systems.
“We must do better,” said Marzigliano. “Until we do, whistleblowers will remain one of the most powerful forces for accountability.”
5 WAYS TO CREATE A SPEAK UP CULTURE
Here are five ways ethical leaders can create a speak up culture at work:
1. Protect employees who raise concerns
Employees are far more likely to report misconduct when they believe retaliation will not damage their careers, reputation or wellbeing. That means organisations need:
- anonymous reporting channels,
- independent investigations,
- anti-retaliation safeguards,
- and visible consequences for unethical behaviour — regardless of seniority.
Research consistently shows that employees judge ethical culture less by corporate values statements and more by how leaders respond when problems are raised.
2. Train managers to respond constructively
Middle managers often determine whether employees feel psychologically safe. Poor responses such as dismissing concerns, becoming defensive or prioritising performance targets over integrity can silence teams quickly. Ethics training should therefore focus not only on compliance rules, but on:
- listening skills,
- conflict resolution,
- accountability,
- and ethical decision-making under pressure.
3. Link ethics to business performance
Companies often treat ethics as separate from growth strategy. Increasingly, investors, regulators and employees see them as interconnected. Strong ethical cultures are linked to:
- lower litigation risk,
- stronger employee retention,
- higher trust,
- and better long-term reputation management.
As explored in Fair Play Talks’ coverage of ethical compliance and corporate scandals, organisations that integrate ethics into leadership and governance structures are often better equipped to prevent reputational crises before they escalate.
4. Make inclusion part of integrity
The survey findings show employees increasingly connect diversity, equity and inclusion with workplace trust. Inclusive workplaces tend to create:
- stronger psychological safety,
- better communication,
- and greater willingness to challenge unethical behaviour.
Experts argue that DEI should not be treated as a standalone initiative, but as part of a broader integrity strategy.
5. Measure trust, not just compliance
Many organisations track hotline usage or mandatory training completion rates. But those metrics alone do not reveal whether employees genuinely trust leadership. Experts increasingly recommend measuring:
- employee confidence in reporting systems,
- perceptions of fairness,
- leadership transparency,
- and fear of retaliation.
Without those insights, ethical risks can remain hidden until they become public crises.
Click here to read the report: Trust @Work: Is the American Workplace Facing an Ethical Crisis?
RELATED ARTICLES
World Day of Social Justice 2026: What role should business leaders play in advancing social justice?
How to minimise corporate scandals & protect reputation
Bad behaviour at work persists despite increasing focus on DE&I
One-third of working Brits experienced or witnessed workplace bias, reveals study
Sign up for our newsletter
