Studies on the ethical culture of organizations have mainly focused on ethical culture at the organizational level. This study explores ethical culture at the team level because this can add a more detailed understanding of the ethics of an organization, which is necessary for more customized and effective management interventions. To find out whether various teams within an organization can have different ethical cultures, we employ the differentiation perspective and conduct a survey of 180 teams from one organization. The results (...) show that there are significant differences between the ethical cultures of teams. These differences are relevant given the different relationships that were established between high and low clusters of team ethical culture and two outcome variables. The results also show that the dimensions of ethical cultures among teams have different patterns, which indicates the usefulness of using a multidimensional scale for capturing further differences among team ethical cultures. (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)

In view of recent studies that identified certain interest groups as potential whistleblowers, we propose an integrative conceptual framework to examine whistleblower behavior by whistleblower type. The framework, dubbed the whistleblowing triangle, is modeled on the fraud triangle and is comprised of three factors that condition the act of whistleblowing: pressure, opportunity, and rationalization. For a rich examination, we use a qualitative research framework to analyze 11 whistleblowing cases of corporate financial statement fraud in Canada that were publicly denounced between (...) 1995 and 2012. Our analysis indicates that whistleblowers are not only insiders but also outsiders [financial analysts, auditing firms, journalists, politicians, customers, and investors]. It also suggests that a dynamic relation may exist between whistleblowers. In addition, our findings show that most whistleblowers opt for external channels when they fail to receive an adequate response from management, seek media exposure, are interested in financial benefits resulting from the act of whistleblowing, or are interested in protecting their investment. Lastly, we propose categorizing whistleblowers into four conceptual types: protective, skeptical, role-prescribed, and self-interested. (shrink)

Accounting professionals play an important role in the generation and auditing of financial statements and, given their understanding of business processes, may be relied upon in the development of organizations’ ethical infrastructures (i.e., the formal aspects of an organization’s ethical environment that are explicitly under the control of the organization). Thus, understanding and improving the work environments of accounting professionals is crucial to improving organizational ethical culture and reducing fraud. In this study, we extend prior research that documents the prevalence (...) of ethical infrastructure programs by assessing how accounting professionals, a key employee group, perceive their organizations’ ethical infrastructures. In addition, we examine whether perceptions of the effectiveness of the ethical infrastructure and professional autonomy influence accountants’ ethical judgments. Based on the responses of 378 CPAs in the United States, we find the perceived state of the ethical infrastructure across accounting work environments—both public accounting firms and other organization types—is relatively strong. However, of the five ethical infrastructure components we examine (i.e., ethics code, ethics training, ethics-based punishments and incentives, ethics reporting system, and ethics review system), only 35% of respondents indicate that their organizations have more than three of these components. Importantly, we find that perceived ethical infrastructure effectiveness and professional autonomy influence both perceptions of the ethical culture and the ethical judgments of accounting professionals. We also contribute to practice by highlighting opportunities for improvement in ethics training formats, ethics-based incentives, and ethics review systems. (shrink)

Whistleblowing is an effective tool against fraud and corruption in organizations. However, as researchers have struggled to acquire data on actual whistleblowers, research relies on hypothetical intention data and student samples, which is seen as a major limitation. Using a field study of 1,416 employees from China, Germany, and Russia, the purpose of this article is to identify differences and similarities between intention and actual whistleblowing decisions, thus aiding research and interpretation of prior and future studies. I also contribute by (...) analyzing whether findings can be generalized across different cultures and whether status and power influence the whistleblowing process. My results reveal that the key difference between hypothetical and real decisions is not in variables that affect the process, but in effect sizes: Employees underestimate the effect of situational (retaliation) and organizational (compliance measures) variables in hypothetical compared to actual whistleblowing. Thus, reliance on intention research is not inherently problematic, when effect sizes are interpreted with caution. I also find that results are similar across countries and that status and power may not be decisive factors in whistleblowing. My findings should also be of interest to practitioners and policymakers, as they assist in designing effective whistleblowing systems and environments in organizations. (shrink)

The purpose of this study is to examine whether United States -style regulatory intervention to encourage whistle-blowing can be immediately effective if transplanted into another country with a distinctly different historical cultural background and institutional system. A total of 98 U.S. and 84 German accountants participated in a laboratory experiment relating to a case of financial statement fraud. The provision of anti-retaliation protection and monetary rewards for whistle-blowing were manipulated and participants were asked to assume the role of an internal (...) auditor. We hypothesize and find that the provision of anti-retaliation protection and monetary rewards encourage U.S. accountants to blow the whistle. In contrast, among German accountants, where their country features a historical fear and distrust of whistle-blowers, U.S.-style regulatory interventions are less effective. Together, our findings provide strong support for the theory of path-dependence, suggesting that whistle-blowing regulation should not be uniformly transplanted without due consideration of the unique history and culture of a country. (shrink)

This work empirically tests the concept of the ‘whistleblowing triangle,’ which is modeled on the three factors encapsulated by the fraud triangle, in the Indonesian context. Anchored in the proposition of an original research framework on the whistleblowing triangle and derived hypotheses, this work aims to expand the body of knowledge on this topic by providing empirical evidence. The sample used is taken from audit firms affiliated with both the big 4 and non-big 4 companies operating in Indonesia. The results (...) of analysis using the PLS-PM method found a significant relationship between the components of the whistleblowing triangle and the intention of blowing the whistle. We found that financial incentives are the most significant predictor of auditors’ intention to blow the whistle in Indonesia. Other components, such as opportunity and rationalization, also play an important role in supporting auditors’ intention to blow the whistle. Our findings also suggest that related pressures are the top priority for audit firms in Indonesia to consider in increasing whistleblowing intention. We expand the previous literature on whistleblowing which has been derived from the components of the fraud triangle :28–56, 2016; Smaili and Arroyo in J Bus Ethics, https://doi.org/10.1007/s10551-017-3663-7, 2017) by adding empirical evidence. (shrink)

Whistleblowers have significantly shaped the state of contemporary society; in this context, this research sheds light on a persistently neglected research area: what are the key determinants of whistleblowing within government agencies? Taking a unique methodological approach, we combine evidence from two pieces of fieldwork, conducted using both primary and secondary data from the US and Indonesia. In Study 1, we use a large-scale survey conducted by the US Merit Systems Protection Board (MSPB). Additional tests are conducted in Study 1, (...) making comparisons between those who have and those who do not have whistleblowing experience. In Study 2, we replicate the survey conducted by the MSPB, using empirical data collected in Indonesia. We find a mixture of corroboration of previous results and unexpected findings between the two samples (US and Indonesia). The most relevant result is that perceived organizational protection has a significant positive effect on whistleblowing intention in the US sample, but a similar result was not found in the Indonesian sample. We argue that this difference is potentially due to the weakness of whistleblowing protection in Indonesia, which opens avenues for further understanding the role of societal cultures in protecting whistleblowers around the globe. (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)

This article originally advances the field of organizational whistleblowing by empirically investigating the suitability of the four elements of the fraud diamond as a means to understand the intention to disclose wrongdoing through virtual channels. This article also makes a contribution on the theme of whistleblowing as it relates to customers, an under-studied, however, relevant stakeholder in this field. The main findings of the article are as follows: the four elements of the fraud diamond as they relate to whistleblowing—a combination (...) of pressure, financial incentive, opportunity and rationalization, and capability—can explain the intentions behind customer reports of wrongdoing; online social media channels are customers’ preferred means of whistleblowing; the elements of opportunity and capability are strongly correlated with the use of social media as a method of disclosing wrongdoing; and virtual channels can be useful for whistleblowers in order to avoid potential retaliation. Unique managerial and academic implications of these research findings are also discussed, extending the layers of knowledge on whistleblowing in organizations. (shrink)

This study aims to examine the ethical decision-making model proposed by Schwartz, where we consider the factors of non-rationality and aspects that affect ethical judgments of auditors to make the decision to blow the whistle. In this paper, we argue that the intention of whistleblowing depends on ethical awareness and ethical judgment as well as there is a mediation–moderation due to emotion and perceived moral intensity of auditors. Data were collected using an online survey with 162 external auditors who worked (...) on audit firms in Indonesia as well as 173 internal auditors working in the manufacturing and financial services. The result of multigroup analysis shows that emotion can mediate the relationship between EAW and EJW. The nature of this relationship is more complex and then tested by adding moderating variables using consistent partial least squares approach. We found that EMT and PMI can improve the relationship between ethical judgments and whistleblowing intentions. These findings indicate that internal auditors are more likely to blow the whistle than external auditors; and reporting wrongdoing internally and anonymously are the preferred way of professional accountants to blow the whistle in Indonesia. (shrink)

Academic leaders in management from all over the world—including recent calls by the Academy of Management Shaw (Academy of Management Journal 60(3): 819–822, 2017)—have urged further research into the extent and use of questionable research practices (QRPs). In order to provide empirical evidence on the topic of QRPs, this work presents two linked studies. Study 1 determines the level of use of QRPs based on self-admission rates and estimated prevalence among business scholars in Indonesia. It was determined that if the (...) level of QRP use identified in Study 1 was quite high, Study 2 would be conducted to follow-up on this result, and this was indeed the case. Study 2 examines the factors that encourage and discourage the use of QRPs in the sample analyzed. The main research findings are as follows: (a) in Study 1, we found the self-admission rates and estimated prevalence of business scholars’ involvement in QRPs to be quite high when compared with studies conducted in other countries and (b) in Study 2, we found pressure for publication from universities, fear of rejection of manuscripts, meeting the expectations of reviewers, and available rewards to be the main reasons for the use of QRPs in Indonesia, whereas (c) formal sanctions and prevention efforts are factors that discourage QRPs. Recommendations for stakeholders (in this case, reviewers, editors, funders, supervisors, chancellors and others) are also provided in order to reduce the use of QRPs. (shrink)

While a corporate ethics program is expected to reduce employees’ unethical behavior, understanding the effects of the ethics program elements on reducing the unethical behavior is a crucial issue. This study aims to explore how a corporate ethics program with multiple control elements, including punishment, monitoring, internal reporting, code of ethics, ethics support service and ethics training, influence employees’ threat appraisal process, coping appraisal process and unethical behavior at workplaces. The data to verify proposed research hypotheses were collected by administering (...) questionnaire survey on four autonomous government organizations in Bangladesh. Research findings show that only punishment and monitoring have significantly negative relationships with unethical behavior. Monitoring and internal reporting have significantly positive relationships with threat appraisal. The code of ethics, ethics support service and ethics training are associated positively with coping appraisal. The mediation results reveal that coping appraisal mediates the relationship between ethics program elements and unethical behavior; but the mediation effects of threat appraisal are not significant. This study provides valuable insights into how a corporate ethics program with multiple control elements reduces employees’ unethical behavior as well as how employees’ threat and coping appraisal processes are related to the corporate ethics program and unethical behavior in organizations. (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)