By Contributor Rhett Power
Building a company isn鈥檛 just about market fit or fundraising milestones 鈥 it鈥檚 about fostering a culture where people feel empowered to raise concerns and call out wrongdoing when they see it.
For entrepreneurs and startup leaders, embracing a 鈥渟ee something, say something鈥 mindset isn鈥檛 simply an ethical box to check. Encouraging employees to speak up isn鈥檛 just an ethical choice 鈥 it鈥檚 a way to build lasting success, strengthen company culture, and prevent reputational or operational harm before it starts.
Yet many founders overlook just how much effort it takes to lay this cultural foundation. They focus on product-market fit, hiring, or scaling strategies 鈥 while assuming that ethical behavior will naturally fall into place. In truth, the opposite is often true: without clear signals from leadership, a startup鈥檚 speed and intensity can create conditions where ethical missteps go unnoticed or unaddressed.
The silent risks hiding inside startups
Startups move fast 鈥 often too fast for their own good when it comes to ethics. Founders juggle multiple roles, teams adjust on the fly, and influence tends to concentrate in just a few hands. So when a problem surfaces, whether it鈥檚 a small policy slip or a major ethical breach, the impact doesn鈥檛 stay contained. It can spread across the whole company before anyone realizes what鈥檚 happened.
In many startups, the voices leaders most need to hear go quiet 鈥 not because people don鈥檛 care, but because they鈥檙e unsure or afraid. Employees might hesitate to speak up out of fear of retaliation, damaging their reputation, or simply being seen as a troublemaker. And when leadership doesn鈥檛 create clear, visible support for raising concerns, small problems are often left to fester until they turn into much bigger risks.
One real danger here is the normalization of deviance 鈥 when small ethical compromises become routine, paving the way for larger issues down the line. Leaders must remain vigilant and intentionally create systems that surface problems early, rather than hoping concerns will magically rise to the top.
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Creating a culture of accountability isn鈥檛 just about installing a hotline or drafting a code of conduct. It鈥檚 about embedding ethical leadership and open communication into the DNA of the company 鈥 from the founder鈥檚 behavior to the tools the organization uses.
Four ways to make speaking up part of your culture
To build an ethical, accountable startup culture, leaders need more than good intentions. They need actionable strategies 鈥 concrete steps that move beyond vague values statements and translate into everyday practices employees can trust.
Here are four essential ways entrepreneurial leaders can turn 鈥渟ee something, say something鈥 from a catchphrase into a lived, thriving part of their company culture.
1. Champion a culture of open communication
The best leaders don鈥檛 just push information down the chain 鈥 they create space for real conversations. They make sure people know their input matters, even when the company is facing tough decisions or uncertainty. By following through on promises and staying open to feedback, leaders can slowly rebuild the trust that makes employees feel safe enough to raise concerns. When workplaces intentionally create space for honest dialogue 鈥 through team meetings, listening sessions, or routine check-ins 鈥 they lay the groundwork for a culture where people feel safe raising tough issues.
2. Lead by ethical example
Ethical leadership goes beyond good intentions; it鈥檚 about daily action. Founders and leaders set the tone by upholding integrity, fairness, and respect 鈥 not just in policies, but in how they handle power, make decisions, and treat others. Modeling ethical behavior signals to teams that doing the right thing matters, even when shortcuts might bring faster wins. When leaders stay consistent with their values, they don鈥檛 just strengthen trust 鈥 they also draw in great talent and earn the loyalty of both employees and customers alike.
3. Establish clear and trusted reporting mechanisms
Secure, anonymous reporting systems reduce the risk of retaliation, which has historically cost companies over $20 million in legal and operational fallout. Yet despite 52% of employees witnessing or experiencing misconduct, many choose not to report due to fear.
As Sara Kennedy, a compliance expert at StarCompliance, explains, tools like theirs help companies implement configurable, confidential systems that connect the dots across employee activities while protecting anonymity. When combined with clear communication, training, and leadership follow-through, these platforms create a psychologically safe environment where employees trust that speaking up will lead to fair action, protecting both people and the business.
4. Recognize 鈥渟eeing something, saying something鈥 as a strength
While 97% of employees say they would report misconduct if they saw it, only 50% actually do. Why? Almost half fear retaliation, and nearly as many believe nothing will change. Leaders can flip this narrative by framing reporting as an act of strength and loyalty, not disloyalty. Recognizing and rewarding employees who raise concerns, avoiding retaliatory behaviors (even perceived ones), and making ethics a regular part of team conversations all help create a culture where transparency becomes the norm 鈥 not the exception.
Why accountability gives startups a competitive edge
In startups, every decision matters 鈥 and ethical leadership is at the heart of lasting success. When founders focus on transparency, offer safe ways for employees to report concerns, and lead with accountability, they set the stage for companies built to last 鈥 not just to check compliance boxes.
A startup鈥檚 ability to survive often hinges as much on the integrity of its people as on the strength of its innovations. The leaders who recognize this aren鈥檛 just building businesses; they鈥檙e shaping cultures that can stand the test of time.
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