We model the coupled decision-making of workers and the policy-making of an organization in response to an effort-saving, yet risky innovation. We examine the cases where individuals can only alert the organization of wide-spread wrong-doing (anonymous whistleblowing) and where they can report specific illicit behavior (semi-anonymous reporting). We show that depending on policy parameters and individual characteristics, one of 4 equilibria may arise, with the interesting outcomes that whistleblowing only flourishes in a light-punishment regime, and that semi-anonymous reporting leads to the relative prevalence of illicit behavior.