We study how increasing whistleblower incentives affects a firm's communication decisions, price informativeness and real efficiency. An informed manager, who can divert cash for private benefit, privately communicates with his employee about project fundamentals and chooses investment. Given her information, the employee maximizes internal alignment and can leak the manager’s message with some noise. Stronger whistleblower incentives lead to more informative leaks, less misconduct and higher price informativeness. However, they can decrease firm value and real efficiency by increasing the manager's manipulation of internal communication. More targeted policies (e.g., mandating more public disclosure) improve both price informativeness and real efficiency.