This Bachelor Thesis investigates the identification of corporate culture, internal control systems, and legal aspects of the new EU whistleblower Directive in the context of wrongdoing in SMEs, with a focus on Northwestern Switzerland. The aim of the research is to examine and identify an effective strategy for mitigating external whistleblowing.

The methodology includes a discussion of the theoretical basis and terms, as well as the findings from the literature on whistleblowing. Additionally, a Whistleblowing Radar was created for this purpose in order to analyze the companies' current standing on whistleblowing. Seven senior executives from small and medium-sized businesses in Northwestern Switzerland were interviewed as part of a combined method approach that included both qualitative and quantitative data analysis.

The results have shown that more than two-thirds of the top managers value culture higher than processes and governmental regulations in relation to whistleblowing. Furthermore, they see internal whistleblowing as a sign of loyalty to the organization. External disclosure, on the other hand, links whistleblowing with a negative perception. Improving their corporate culture by promoting openness and loyalty would be one way to reduce misconduct. The data demonstrates that the top managers' and their firms' values are congruent with those discovered in the study. The features of company culture, according to the literature study, are well suited for an effective approach to mitigating external whistleblowing. As a result of the analysis, it is possible to propose investing in company culture and also incorporating whistleblowing measures into internal control systems.