now you're getting convicted instead of having an opportunity to correct the problem
You have completely ignored the fact that this is literally the opposite of what has (likely) happened in this case, and is provably almost the norm in countless other cases like this. There was an opportunity to make things right by the leadership. They did not choose to do so. At every step along the way.
Even assuming that these were honest mistakes (I don't believe so), the actions taken by leadership in most of these situations tend to wring the complainant out of the system. If there's a "free market" way to resolve these problems, this certainly ain't it, which calls for regulations. If those regulations aren't strong enough to coerce the intended result (if you find out one of your employees acted in this manner, immediately contact law enforcement and let them figure it out, otherwise you're in trouble as well), then you are actively encouraging an extrajudicial mechanism for resolving these matters. Specifically, you're encouraging civil remedies vs. criminal ones.
Failure to report isn't the problem here. It's that the failure to report has no consequences on people with adequate power, who get to create their own kangaroo court of dispute and certainly resolve cases to their own benefit.