Serpico Effect: Weird Reason Nobody Wants The Dirty Truth

The Serpico effect is derived from a real story from 1970s New York. Serpico is the last name of former NYPD policeman Frank Serpico. He kept exposing the police force for corruption during the period. But for these actions he was not recognized as a fair agent of law enforcement. Instead, he was harassed, threatened, and isolated from his fellows. Serpico was shot in the face in 1971 and some assumed he was brought into the crime scene by his colleagues on purpose to be murdered. The case has not been investigated further or solved since.

That is what we call the Serpico effect: when a well-intentioned whistleblower who exposes wrongdoing within an organization is hated and potentially faces danger from his peers and superiors. It’s a term that highlights how risky it is for whistleblowers to speak out the ugly truth. The Serpico effect affects the workplace today in particular. Of course it isn’t wise to remain silent, but employees are afraid of losing their position. The issue has long been part of corporate culture: staff know of misconduct and wrongdoing within the organization, yet they cannot report it since they will face retaliation and mistreatment from management if they do so.

The bullet in the head for Serpico is getting fired and your career ruined as a modern employee. You cannot be sure who will turn their back on you when you threaten the safety of the organization as a whole. Because of this trust discrepancy, day-to-day corporate culture operates under opaque circumstances. No one is willing to blow the whistle. Nobody wants to report misconduct for fear of the gigantic repercussions. Honesty is not valued as much as is saying what will please your co-workers and supervisors. The result: organizational issues are not addressed promptly and escalate in the background, like a cancer, eroding and causing the eventual death of the firm.

View the Serpico effect as the cause of our silent culture of fear. How productive and transparent can a workplace be when it operates under the principle of threat? No one is encouraged to speak the ugly truth. Everybody is scared to talk about the unethical behaviors neighboring their cubicle. Misconduct grows. Toxicity evolves. Not one employee holds genuine trust in the company’s integrity and mission. Of course this wreaks havoc for employee engagement and job satisfaction. Because of the awful culture and lack of support, team spirit erodes. Individuals start leaving the company. The business has to deal with the incredible recruitment costs. Over time, as mentioned, this slaughters the enterprise. And if it doesn’t kill it, it definitely does not make it stronger: forget everything to do with reputation.

Real-life implications of the Serpico effect:

• Organizational change and governance: companies and institutions may experience periods of intense scrutiny and change after a whistleblower’s revelations, resulting in restructuring, compliance or legal issues, and equalization of hierarchies. While this is objectively beneficial in reducing systemic flaws, the transition is disruptive and costly to the firm so it is discouraged by higher-ups;

• Public policy and regulation: whistleblowing prompts policymakers and regulators to design, investigate, and amend policies. Meaning more work for them. Thus revelations, say, of corruption, would result in stricter oversight and new laws, which is why they are discouraged. A whistleblower can drive long-term policy reforms and public opinion shifts, but entrenched interests once again drown them out;

• Culture and society: on a broader spectrum, the act of exposing system-wide quandaries can shift public attitude and spark social movements. Yet again something that legislators and governments do no want to deal with. The awareness generated by a whistleblower’s actions can result in a re-evaluation of accepted practices. The change: a more transparent, fair, and ethical culture. But the supporters of the old system and the stagnant, comfortably-seated politicians don’t want such initiatives, thus the blown whistle does not reach our ears and the person suddenly and unexpectedly disappears, most of the time.

Simply put, the Serpico effect comes at a huge personal cost while encouraging the organization to improve as a whole. It’s key for any evolving firm to create protection and support for those who speak out. Easier said than done. As for the others, being aware of the phenomenon is a reminder to be critical of systems and aware of what is “normal”. Sometimes “normal” can be overflowing with hidden flaws. Layers of corruption are typically accessible only to insiders. Companies fear public retaliation and loss of reputation. Thus we get the Serpico effect.

How you might handle the Serpico effect and perhaps leverage it as a mental model: (1) encourage transparency, building in rewards for ethical behavior and openness in your culture or organization or team as this results in the long-term improvement of the enterprise; (2) establish whistleblower protection, policies that support and shield individuals who come forward with information, ensuring their revelations lead to constructive change and not personal destruction; (3) foster critique, using the momentum generated by a whistleblower or a significant exposure to review your processes and identify additional areas of unethical behavior or improvement; (4) balance change and consistency, as you don’t want organizational chaos, but you do want gradual evolution. A single act of courage can be a catalyst for systemic change. Don’t shut off the whistleblower.