Whistleblowing NZ: By the Numbers

In New Zealand, we like to think of ourselves as a nation of ‘straight shooters’, so to speak. When something’s not right, we believe in speaking up. But while the intention is there, the reality of how we handle wrongdoing in the workplace can tell a different story…

The numbers don’t lie. They reveal a landscape where employees are increasingly aware of misconduct but are often left with a sense of dissatisfaction when they report it. This gap between awareness and effective action is where a robust, independent whistleblowing system becomes not just a nice-to-have, but a crucial component of a healthy business.

At Report It Now™, we believe in using data to understand the challenges and to build solutions that work. Let’s take a look at the latest statistics about whistleblowing in Aotearoa.

Rising Reporting: The New Normal

In recent years, the number of people coming forward with concerns has skyrocketed. The Chief Ombudsman has seen a significant surge in protected disclosures and whistleblower inquiries. This isn’t just a blip; it’s a fundamental shift in our collective willingness to report wrongdoing.

• 159% Increase: The number of protected disclosures and inquiries completed by the Chief Ombudsman’s office surged by a staggering 159% in the 2023/24 financial year compared to the year before. The Ombudsman’s Annual Report 2023/24 confirms this, reflecting a growing public trust in official channels and a greater intolerance for misconduct.
• 220 Cases: The Ombudsman completed 220 cases in this period, a historically high number that reflects a growing public trust in official channels and a greater intolerance for misconduct.

This trend is a direct result of strengthened legal protections, particularly the Protected Disclosures (Protection of Whistleblowers) Act 2022. This law has modernised the legal framework, extending protections to both the public and private sectors. It’s designed to give people more confidence that they can speak up without fear of reprisal.

The Problem: A Culture of Dissatisfaction

Despite the increase in reporting, there’s a serious problem with how those concerns are being handled. The data shows that while people are speaking up, they’re not happy with the outcomes.

• 49% Satisfaction: Only 49% of New Zealand employees who raised a concern were satisfied with the outcome. This is a crucial statistic. Not only is it the lowest satisfaction rate ever recorded for New Zealand, but it’s also well below the global average of 71%. This finding comes from the Institute of Business Ethics (IBE) “Ethics at Work: 2024 International Survey of Employees.”
• A Lack of Systems: The lack of formal processes for handling these concerns is a major contributor to this dissatisfaction. A report on New Zealand’s public sector revealed that 30% of agencies have no system in place to record and track concerns, while 23% lack a formal support strategy for staff who report issues. This data highlights a significant gap that contributes to employee frustration and reluctance to speak up.

This dissatisfaction creates a negative feedback loop. If employees feel their concerns are not taken seriously, they will be less likely to report them in the future. This is a huge risk for any organisation, as it can hide problems before they become critical.

“These statistics reveal a troubling reality,” says Craig McFarlane, Director of Report It Now™. “New Zealand employees are finding the courage to speak up about wrongdoing, but they’re being let down by systems that simply don’t deliver the outcomes they expect.”

“When only 49% of people who raise concerns are satisfied with the result, we’re not just failing individuals, we’re creating a culture of silence that puts entire organisations at risk. The gap between having a policy and having a system that actually works has never been more evident”.

“The surge in whistleblowing reports tells us that New Zealanders are ready to do the right thing—but the dissatisfaction rates show that many organisations are still treating this as a compliance tick-box exercise rather than recognising it as the early warning system it truly is.” says Greg Dunn, Director of Report It Now™.

“When employees lose faith in internal processes, it doesn’t make the problems disappear—it just means those problems stay hidden until they become crises.”

“That’s a risk no modern organisation can afford to take”.

The Cost of Silence: Financial and Reputational

Ignoring an ethical issue or a fraudulent activity doesn’t make it go away. It often allows the problem to fester and grow, leading to significant financial and reputational damage. The financial consequences of fraud are particularly stark.

• 5% Revenue Loss: The Association of Certified Fraud Examiners (ACFE) “Report to the Nations 2024” estimates that organisations lose approximately 5% of their revenue each year due to fraud. For many businesses, particularly small and medium enterprises (SMEs) and local government, this can be the difference between profit and loss.
• Tip-Offs are Key: The same ACFE report found that 43% of occupational frauds are detected through a tip-off from an employee. This is a far more effective method than internal or external audits, highlighting the critical role that a “speak up” culture plays in a company’s financial health.
• 56% Higher Tip-Off Rate: Companies that provide fraud awareness training are 56% more likely to receive tips from employees. This shows that proactive education and a clear process for reporting misconduct can significantly improve an organisation’s ability to detect and prevent fraud.

New Zealand has seen its own high-profile cases that prove the consequences of poor handling. The recent BNZ whistleblower case, for instance, showed that poor process can lead to significant legal findings of unjustified dismissal and a breach of good faith. The case is a powerful reminder that having the right systems in place is not just an ethical choice, but a legal and financial necessity.

The Solution: Beyond the Numbers

The numbers paint a clear picture: New Zealand workplaces need to move beyond a simple desire for ethical behaviour and provide concrete, effective systems that support it. This is where an independent, third-party service like Report It Now™ comes in.

We provide a secure, confidential, and comprehensive solution that addresses the gaps and barriers identified by the data.

How We Help NZ Businesses:

• 24/7 Hotline & Anonymous Reporting: We offer multiple reporting channels—phone, text, web, and mail—that are available 24/7. This independence ensures that employees feel safe to report their concerns without fear of retaliation.
• EthicsPro® Case Management: Our secure case management system ensures that every tip is recorded, tracked, and managed effectively. This directly addresses the 30% of public agencies that currently lack a proper system.
• Fraud Reduction: By providing a clear and accessible channel for tip-offs, our services can help businesses reduce fraud losses by up to 50%. This turns an abstract ethical concern into a tangible, measurable return on investment.
• Training & Analysis: We don’t just provide a hotline. We offer staff training and ongoing analysis to help foster a “speak up” culture. This proactive approach helps to boost tip-off rates, making your organisation more resilient.
• Compliance: Our system helps ensure your organisation meets its regulatory obligations under the Protected Disclosures Act, giving you peace of mind that you’re doing right by your employees and the law.

The Way Forward

The statistics on whistleblowing in New Zealand show both progress and persistent challenges. While a growing number of people are finding the courage to speak up, a significant portion of them are being let down by ineffective internal processes.

For any New Zealand organisation committed to building a transparent, ethical, and safe workplace, the message is clear. It’s not enough to simply have a policy; you need a system that works. By implementing a robust, independent whistleblowing solution, you can close the gap between your organisation’s ethical aspirations and its everyday reality, protecting your people, your reputation, and your bottom line.

Get in touch today.