Previous studies investigating reports of corporate or individual wrongdoing have failed to examine the effects of an organization's structure upon the decision to blow the whistle. This paper suggests that an organization's structure may perform a significant role in the decision to report versus not report an observed wrongdoing. Five organizational structures (that is, centralized, matrix, horizontal, hybrid, and divisional) were examined in regards to their effectiveness in encouraging or discouraging observers of unethical conduct channels for reporting such behavior. Discussion (...) and implications are provided. (shrink)

Abstract:Statutory approaches toward whistle-blowing currently appear to be based on the assumption that most observers of wrongdoing will report it unless deterred from doing so by fear of retaliation. Yet our review of research from studies of whistle-blowing behavior suggests that this assumption is unwarranted. We propose that an alternative legislative approach would prove more successful in encouraging valid whistle-blowing and describe a model for such legislation that would increase self-monitoring of ethical behavior by organizations, with obvious benefits to society (...) at large.A defense contractor’s inspectors used improper calibration standards when inspecting missile parts and other military products, used noncertified inspectors when inspecting such products, and used employees without top-secret clearance to work on classified projects. This created potentially life-threatening products as well as potential compromises of military secrets.Quality-control officials on the Trans Alaska Pipeline were threatened with physical harm, demoted, and spied on in an effort to force them not to turn in negative reports or report problems. As a result, the likelihood of damaging oil spills due to improperly built and maintained equipment is heightened.A major corporation allegedly initiated an analysis of the cost savings that would result from circumventing or reducing compliance with health, safety and environmental standards. Two officers who objected to this noncompliance cost/benefit analysis were subsequently fired. (shrink)

Within the theoretical framework of the moral intensity model of ethical decision making (Jones, 1991), two studies ascertained the contention that ethicality judgements are contingent upon the perceived intensity of the moral issue. In addition, Study 1 extended the validity of the moral intensity notion to whistle-blowing behaviour; Study 2 addressed the effect of the individual difference variable, need-for-cognition, on differential utilization of intensity dimensions in the ethical decision process. A scenario approach was used in both studies. Results have provided (...) convergent support for the issue-contingency nature of ethical decisions. Study 1 also showed that felt empathy for potential victims predicted the likelihood of whistle-blowing behaviour, and that the perceived overall ethicality of a wrongdoing predicted felt empathy when potential victims are psychologically and physically close. Results of Study 2 further suggested a greater utilization of issue-relevant information by high need-for-cognition individuals in ethical decision making. (shrink)

This study represents an improvement in the ethics scales inventory published in a 1988 Journal of Business Ethics article. The article presents the distillation and validation process whereby the original 33 item inventory was reduced to eight items. These eight items comprise the following ethical dimensions: a moral equity dimension, a relativism dimension, and a contractualism dimension. The multidimensional ethics scale demonstrates significant predictive ability.

Research on whistle-blowing has been hampered by a lack of a sound theoretical base. In this paper, we draw upon existing theories of motivation and power relationships to propose a model of the whistle-blowing process. This model focuses on decisions made by organization members who believe they have evidence of organizational wrongdoing, and the reactions of organization authorities. Based on a review of the sparse empirical literature, we suggest variables that may affect both the members' decisions and the organization's responses.

Survey responses from Fortune 1000 firms were examined to assess whether firms changed their whistleblowing policies to response to changes in state statutes concerning whistleblowing. We predicted that firms might have created internal channels for whistleblowing in response to new legislation that increased their vulnerability to whistleblowing claims by employees. In fact, very few firms indicated that they had created their policies in responses to legal changes.

Previous studies investigating reports of corporate or individual wrongdoing have failed to examine the effects of an organization's structure upon the decision to blow the whistle. This paper suggests that an organization's structure may perform a significant role in the decision to report versus not report an observed wrongdoing. Five organizational structures were examined in regards to their effectiveness in encouraging or discouraging observers of unethical conduct channels for reporting such behavior. Discussion and implications are provided.

Neither the corporate view of whistle blowers as tattle-tales and traitors, nor the more sympathethic understanding of them as tragic heroes battling corrupt or abused systems captures what is at stake in whistle blowing at its most distinctive. The courage, determination and sacrifice of the most ardent whistle blowers suggests that they only begin to be appreciated when they are seen as the saints of secular culture. Although some whistle blowers may be attempting to deflect attention from their own deficiencies (...) and others may be disgruntled employees, the most serious instances involve a level of moral sensitivity that approaches religious proportions that are baffling for a culture that has dispensed with sainthood. (shrink)

The growing body of whistleblowing literature includes many studies that have attempted to identify the individual level antecedents of whistleblowing behavior. However, cross-cultural differences in perceptions of the ethicality of whistleblowing affect the judgment of whistleblowing intention. This study ascertains how Chinese managers/professionals decide to blow the whistle in terms of their locus of control and subjective judgment regarding the intention of whistleblowing. Hypotheses that are derived from these speculations are tested with data on Chinese managers and professionals. Statistical analysis (...) largely supports the hypotheses, which suggests that an individual''s locus of control does moderate the relationship between ethical judgment and whistleblowing. (shrink)

This study reports on the development of scale items derived from the pluralistic moral philosophy literature. In addition, the manner in which individuals combine aspects of the different philosophies in making ethical evaluations was explored.

Leaders and managers of today's multinational corporations face a plethora of problems and issues directly attributable to the fact that they are operating in an international context. With work-sites, plants and/or customers based in another country, or even several countries, representing a vast spectrum of cultural differences, international trade and offshore operations, coupled with increased globalisation in respect to political, social and economic realities, contribute to new dilemmas that these leaders must deal with. Not the least of these being a (...) Code of Ethics and ethical decision making.This paper examines the differences in culture between a group of managers from the United States and similar group from Croatia using Hofstede's theory of International Cultures. The study explores how these cultural dimensions may help in our understanding of the differences in reported whistleblowing. The authors then postulate four hypotheses regarding various aspects of whistleblowing. These Hypotheses were than tested using a survey administered to a sample of U.S.A. and Croatian managers. Finally, the paper discusses the findings and practical implications for contemporary managers in the international arena. (shrink)