7 examples of workplace misconduct

When we think of whistleblowing, high-profile cases of corporate fraud, bribery, or insider trading often dominate the headlines. But in practice, workplace misconduct can take many shapes—some glaring, others subtle but just as damaging.

In the United States, federal and state laws like the Sarbanes-Oxley Act, Dodd-Frank Act, and OSHA’s whistleblower provisions require or strongly encourage organisations to establish internal reporting mechanisms. A clearly defined whistleblower policy that includes real-world examples of misconduct—ranging from financial fraud to harassment or safety breaches—helps employees distinguish personal grievances from genuine legal or ethical violations. This clarity empowers individuals to report concerns through the appropriate channels and ensures that serious risks don’t go unnoticed.

Why help employees identify misconduct?

A strong whistleblower policy isn’t just about legal compliance—it’s also about workplace culture. When employees understand what constitutes reportable misconduct versus issues that are best resolved by HR, organisations avoid unnecessary escalations and improve the efficiency of internal investigations.

More importantly, clearly outlining types of misconduct reinforces your company’s commitment to ethical conduct, transparency, and employee wellbeing. When staff know that their voices will be heard—and protected—they’re far more likely to speak up.

7 common forms of workplace misconduct

1. Theft

Theft in the workplace isn’t limited to financial fraud or embezzlement. It also includes taking office supplies, equipment, merchandise, or even proprietary data. While these actions may seem minor, they are illegal and can lead to serious legal consequences. Including theft in your whistleblower policy helps employees feel confident reporting it—regardless of the scale.

2. Sexual harassment

Despite increased awareness, sexual harassment often goes unreported—especially when the boundaries feel unclear. This type of misconduct can involve co-workers, supervisors, clients, vendors, or contractors. Your policy should clearly define unacceptable behaviour and encourage reporting in a way that protects the reporter from retaliation.

3. Abuse of power

Power imbalances can lead to workplace bullying, intimidation, and unjust treatment. Whether it’s a supervisor threatening job loss or playing favourites with promotions, abuse of power is corrosive to workplace morale. Providing a safe reporting system enables employees to disclose these issues without fear.

4. Falsifying documents

From tampering with financial reports to forging signatures or manipulating compliance certifications, falsifying documents is a serious offence. These actions can have far-reaching legal and reputational implications—especially in highly regulated industries like finance, healthcare, or manufacturing.

5. Health and safety violations

Ignoring safety protocols, failing to report hazards, or cutting corners on compliance can put lives at risk. In the U.S., OSHA protects workers who report unsafe conditions. A robust whistleblower system can help identify violations early—before they escalate into accidents or lawsuits.

6. Property damage

Whether intentional or negligent, damaging company or client property is both unethical and costly. In certain industries, such actions can also endanger lives or disrupt operations. Misconduct of this kind should be clearly included in your reporting policy.

7. Drug or alcohol misuse

Employees under the influence at work—especially in safety-sensitive sectors such as transportation, construction, or healthcare—pose serious risks. While many companies have substance policies in place, a whistleblower channel adds an extra layer of accountability, helping you address concerns before harm is done.

Misconduct isn’t one-size-fits-all

Every industry faces unique risks. In financial services, misconduct might involve insider trading; in healthcare, it could be patient neglect or billing fraud. The key is to ensure your whistleblower policy addresses both general and industry-specific risks—especially those that affect public safety or corporate integrity.

Support a speak-up culture

Creating a culture where employees feel safe reporting misconduct isn’t just the right thing to do—it’s also a smart business decision. Proactive reporting can prevent regulatory breaches, reduce legal exposure, and protect your organisation’s reputation.

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