We contribute to the literature on intentions to report wrongdoing by examining whether Chinese internal auditors make consistent judgments when an ethical dilemma is presented in English and when the same dilemma is presented in Chinese. We invoke cultural frame switching theory, and our findings, which are based on a randomized experiment using between-subjects and within-subject mixed design, support the hypothesis that Chinese internal auditors are more likely to report wrongdoing when the ethical dilemma is presented in English than when (...) it is presented in Chinese. Our results, which demonstrate that internal auditors make inconsistent ethical judgments in English and Chinese, point to language-triggered cognitive bias resulting from cultural mindsets. We suggest practical interventions and language strategies to improve audit quality. (shrink)

This article uses two recent books on whistleblowing authored by political philosophers, to suggest that what political philosophy can contribute to the whistleblowing debate are notions of public interest that can help to enable and delineate responsibilities and protection of different actors. Whilst it is acknowledged that these recent works on whistleblowing offer a welcome articulation of the business ethics scholarship into that of political philosophy, it fails to deliver on its potential contribution. The argumentation proceeds along three objections, (1) (...) use of bad cases, (2) lack of new insights, and (3) conservative positioning. (shrink)

While attention to research integrity has been growing over the past decades, the processes of signalling and denouncing cases of research misconduct remain largely unstudied. In this article, we develop a theoretically and empirically informed understanding of the causes and consequences of reporting research misconduct in terms of power relations. We study the reporting process based on a multinational survey at eight European universities. Using qualitative data that witnesses of research misconduct or of questionable research practices provided, we aim to (...) examine actors’ rationales for reporting and not reporting misconduct, how they report it and the perceived consequences of reporting. In particular we study how research seniority, the temporality of work appointments, and gender could impact the likelihood of cases being reported and of reporting leading to constructive organisational changes. Our findings suggest that these aspects of power relations play a role in the reporting of research misconduct. Our analysis contributes to a better understanding of research misconduct in an academic context. Specifically, we elucidate the processes that affect researchers’ ability and willingness to report research misconduct, and the likelihood of universities taking action. Based on our findings, we outline specific propositions that future research can test as well as provide recommendations for policy improvement. (shrink)

Whistleblowing is a controversial yet socially significant topic of interest due to its impact on employees, organizations, and society at large. The purpose of this paper is to integrate knowledge of whistleblowing with theoretical advancements in the broader domain of business ethics to propose a novel approach to research and practice engaged in this complex phenomenon. The paper offers a conceptual framework, i.e., the wheel of whistleblowing, that is developed to portray the different features of whistleblowing by applying the whistleblower’s (...) perspective. The framework is based on five “W” questions: Who, What, hoW, Why, and to Whom? The answers to the proposed questions clarify the main aspects of whistleblowing, provide insights into existing studies of the subject, and identify relevant gaps in the literature which, in turn, offer opportunities for future research. (shrink)

A dual-processing model of moral whistleblowing in organizations is proposed. In this theory paper, moral whistleblowing is described as a unique type of whistleblowing that is undertaken by individuals that see themselves as moral agents and are primarily motivated to blow the whistle by a sense of moral duty. At the individual level, the model expands on traditional, rational models of whistleblowing by exploring how moral intuition and deliberative reasoning processes might interact to influence the whistleblowing behavior of moral agents. (...) The model combines individual variables, organizational variables, and external, societal variables to explain the moral whistleblowing process and the impact of moral agents on organizations and society. (shrink)

Our study contributes by providing new insights into the relationship between the individual levels of the antecedents and how the intention of whistleblowing is moderated by perceived organizational support, team norms, and perceived moral intensity. In this paper, we argue that the intention of both internal and external whistleblowing depends on the individual-level antecedents [attitudes toward whistleblowing, perceived behavioral control, independence commitment, personal responsibility for reporting, and personal cost of reporting ] and is moderated by POS, TNs, and PMI. The (...) findings confirm our predictions. Data were collected using an online survey on 256 Indonesian public accountants who worked in the audit firm affiliated with the Big 4 and non-Big 4. The results support the argument that all the antecedents of individual levels can improve the auditors’ intention to blow the whistle. The nature of the relationship is more complex than analysis by adding moderating variables using the Partial Least Squares-Structural Equation Modeling approach. We found that POS, TNs, and PMI can partially improve the relationship between the individual-level antecedents and whistleblowing intentions. These findings indicate that the POS, TNs, and PMI are a mechanism or that attribute is important in controlling behavior. (shrink)

Present study aims to examine the role of perceived fear of retaliation and value orientations on whistleblowing intentions. Sample used in the present study consists of 237 executive MBA students from two leading Indian business schools. According to the results of paired sample t test, respondents reported significantly higher internal whistleblowing intentions than external whistleblowing intentions. Results also indicate that there is a significant inverse relationship between fear of bad consequences on job and whistleblowing intentions. Also, fear of bad consequences (...) for the company is positively correlated with internal whistleblowing intentions. Lastly, collectivism is also found to be positively related with internal whistleblowing intentions. Limitations and implications of the findings were also discussed. (shrink)

Management plays an important role in reinforcing ethics in organizations. To support this aim, managers must use incentive and goal programs in ethical ways. This study examines experimentally the potential ethical costs associated with incentive-driven and goal-induced employee behavior from a managerial perspective. In a quasi-experimental setting, 243 MBA students with significant professional work experience evaluated a hypothetical employee’s ethical behavior under incentive pay systems modeled on a business case. In the role of the employee’s manager, participants evaluated the ethicality (...) of the employee’s incentive-driven and goal-induced ethical/unethical behavior and the outcomes of behavior, with consequences that were either favorable or unfavorable to the organization. The results indicated that participants discounted the ethical considerations of incentive-driven and goal-induced behavior when consequences were favorable to the organization. Participants’ morals and outcome orientations were also significantly related to their ethical judgments and intentions to intervene. The implications of these findings for research and practice are discussed. (shrink)

The purpose of this paper is to examine whether anonymous reporting channels are effective in detecting fraud against companies. Fraud, which comprises predominantly asset misappropriation, represents a key operational risk and a major cost to organisations. The fraud triangle provides a framework for developing our understanding of how ARCs can increase detection of fraud. Using publicly listed company survey data collected by KPMG in Australia—where ARCs are not mandated—we find a positive association between ARCs and reported fraud. These results indicate (...) that ARCs are effective in detecting fraud. Additional analysis reveals that small firms derive the greatest benefit from adopting ARCs. We also find that independent boards do not directly influence the detection of fraud, but companies with independent boards detect more fraud because they implement ARCs. (shrink)

AbstractIn marketing channels, distributor whistleblowing can deter unethical behaviors, though little academic research investigates this tactic. Drawing on whistleblowing literature in business ethics and organizational theory, as well as field interviews with channel managers, this article identifies and elucidates the notion of distributor whistleblowing in marketing channels. Specifically, this study investigates how a manufacturer’s control modes (monitoring and incentives) encourage or discourage distributor whistleblowing. This study also considers the impact of distributor whistleblowing on relationship quality and the moderating effects of (...) exchange hazards (i.e., transaction-specific investments and market uncertainty). The empirical results from a sample of 211 Chinese distributors indicate that manufacturers’ monitoring inhibits, whereas incentives boost distributor whistleblowing. Further, a positive link arises between distributor whistleblowing and relationship quality, which is weakened by distributor transaction-specific investments and strengthened by market uncertainty. (shrink)

AbstractEmployee whistleblowing via social media channels represents a very high risk to corporate reputation and can potentially lead to litigation and financial loss, especially when the message goes viral. This research examines the effect of social media strategy and social media policy on employees’ sensitivity to the high risk of whistleblowing via social media. We study the effect across employee gender and across two social media misconducts (information leaking and online venting). Our results indicate that the impact of social media (...) strategy and social media policy on employees’ sensitivity differs between gender and across the two cases. In the information leaking case, social media strategy, social media policy and gender jointly influence employee sensitivity to the risk of whistleblowing via social media channels. In the online venting case, gender has a main effect on that sensitivity. Our study has implications for the role of social media in management control systems and adds to the literature on whistleblowing. Our findings also have practical implications related to the use of social media strategy and policies. (shrink)

ABSTRACT:While tone at the top is widely regarded as an important predictor of ethical behavior in organizations, we argue that recent research overlooks the various conflicting ethical tones present in many multi-organizational work settings. Further, we propose that the resolution processes promulgated in many firms and professional associations to reconcile this conflict reinforce the tone at the bottom or a tone at the top of the employee’s organization, and that both of these approaches can conflict with the tone at the (...) top of other important organizations such as professional and regulatory organizations. Here we adapt Integrative Social Contract Theory’s priority rules to propose a multi-tone reconciliation process which prioritizes conflicting ethical tones based upon features of the organization and the effects on society. Using three contextualizations, we demonstrate the effectiveness of the multi-tone reconciliation process over current processes. We conclude with recommendations for future research and implications for practice. (shrink)

Unethical behavior coordinated and concealed by teams continues to represent a troubling and all-too-frequent occurrence in organizations. Unfortunately, those who are most knowledgeable about this behavior and thereby best suited to report it to authorities—the complicit members themselves—are susceptible to unique pressures that often discourage them from blowing the whistle. Team members rely on their teammates for relational and other beneficial resources, making it more difficult to potentially break those ties by snitching. However, we argue that the pressure to stay (...) silent is alleviated for members who are ostracized by their team members. Drawing on social exchange theory, we theorize that ostracism decreases positive affect and increases negative affect, decreasing individuals’ communion striving motivation and, in turn, increasing the propensity to blow the whistle. In Study 1, we examined the link between ostracism and whistleblowing utilizing a field sample of diverse employees surveyed over time. In Study 2, we built upon Study 1 and conducted a lab study to examine affect and communion striving motivation as serial mediators. Results were generally supportive of our arguments, although we did not find support for the mediating effect of negative affect. (shrink)

Whistleblowers who need to decide whether or not they should report wrongdoing usually experience several anxieties and pressures before making a final decision. As whistleblowers continue to attract the attention of a wide range of stakeholders, more research is necessary to understand the effects of the perceived seriousness of threats and perceived seriousness of wrongdoing, as well as the effect of the rationalization process on the intention to blow the whistle. We make the original proposal that the rationalization process can (...) affect how PST and PSW trigger whistleblowing intentions. We tested our model using employees of tax offices operating in an emerging economy. We suggest several research findings, which can be summarized as follows: PST reduces individuals’ intention to blow the whistle. That is, the greater the threat perceived by whistleblowers, the higher the likelihood they will choose to remain silent; we find evidence of a positive relationship between PSW and whistleblowing intention, whereby PSW increases individuals’ intention to blow the whistle. That is, the more serious the wrongdoing perceived by potential whistleblowers, the more likely they are to choose to blow the whistle; and we find evidence of the important role of rationalization in moderating the relationships between PST, PSW, and whistleblowing intention. The implications of these findings for business ethics scholars, managers, and end-users interested in whistleblowing are also presented. (shrink)

In this paper, we draw upon Islamic teachings to address two questions. How do Islamic ethics deepen and advance our understanding of the whistleblowing act? To what extent are Islamic ethics of whistleblowing promoted in practice? First, we have undertaken a thematic content analysis of the holy book of Qur’an, supported by the Sunnah (Prophetic Traditions). This has yielded a novel Islamic ethics-based framework of whistleblowing comprising the five aspects of the whistleblowing process: _What_ should one blow the whistle about? (...) _Who_ should blow the whistle? _Why_ should one blow the whistle? _How_ should one blow the whistle? And _to Whom_ should one blow the whistle? Second, using the developed framework, we have analyzed the whistleblowing policies of 20 Islamic banks and financial institutions across 11 countries. This analysis reveals that there exists a narrow view of what ought to be reported as wrongdoings, a confined scope of potential whistleblowers, a lack of connection with Islamic motivations, missing steps in the actual whistleblowing process, and a lack of gradation in relation to rectifying corrupt acts, thus highlighting a framework–policy gap. This is the first study to conceptualize the whistleblowing process from an Islamic perspective. The developed framework offers guiding procedures that individuals can consult to guide whistleblowing reasoning behavior and that organizations can use while developing whistleblowing policies. It also serves as a foundation for the development of organizational whistleblowing policies in different sectors. (shrink)