If you work in private industry, you must have encountered a "bad" employee (e.g. lazy, does it wrong all the time, vindictive, sarcastic, etc.), ask yourself how many times YOU (or even another co-worker) reported said co-worker and what the results were. No matter where we work, reporting bad co-workers usually ends up with us getting harassed for doing so (or worse). So most don't do anything other than turning our backs on it.
I do work in private industry. I've been on both sides of the issue you describe as a manager taking the report and the employee filing a report about substandard workers. I've been in sales all my life. The dead wood gets cut away pretty quickly whether it be a sales person not producing or some admin support staff not getting it done and affecting the bottom line. I've fired plenty of people in my day. So....swing and a miss. Don't try to compare other worlds with the unethical and often times criminal BS happening daily in the world of LE.