Businesses found ignoring tips from employees about possible internal wrongdoing could face stiffer penalties, warned Mary Inman, partner at law firm Constantine Cannon, at Compliance Week’s 2023 National Conference in Washington, D.C.

A whistleblowing employee serves as an early warning system for the organization that a potential risk exists and needs to be addressed, said Inman, who was interviewed during a fireside chat by Neta Meidav, chief executive officer and co-founder of software company Vault Platform.

In Inman’s experience representing whistleblowers, employees want to report the issue internally.

“Whistleblowers are very loyal. They’re the people who really care about the organization,” and that’s why they take the extraordinary step of complaining, Inman said. They think well of their organization and often believe they will be well-received internally by calling out wrongdoing, she said.

Former employees Inman has represented tend to still use the word “we” when talking about their former organization, she said.