Whistleblowing on organizational wrongdoing is becoming increasingly prevalent. What aspects of the person, the context, and the transgression relate to whistleblowing intentions and to actual whistleblowing on corporate wrongdoing? Which aspects relate to retaliation against whistleblowers? Can we draw conclusions about the whistleblowing process by assessing whistleblowing intentions? Meta-analytic examination of 193 correlations obtained from 26 samples (N = 18,781) reveals differences in the correlates of whistleblowing intentions and actions. Stronger relationships were found between personal, contextual, and wrongdoing characteristics and (...) whistleblowing intent than with actual whistleblowing. Retaliation might best be predicted using contextual variables. Implications for research and practice are discussed. (shrink)

Using a 2×2×2 experimental design, the effects of situational and individual variables on individuals' intentions to act unethically were investigated. Specifically examined were three situational variables: (1) quality of the work experience (good versus poor), (2) peer influences (unethical versus ethical), and (3) managerial influences (unethical versus ethical), and three individual variables: (4) locus of control, (5) Machiavellianism, and (6) gender, on individuals' behavioral intentions in an ethically ambiguous dilemma in an work setting. Experiment 1 revealed main effects for quality (...) of work experience, Machiavellianism, locus of control, and an interaction effect for peer influences and managerial influences. Experiment 2 showed main effects for all three situational variables and Machiavellianism. Neither experiment supported gender differences. Limitations, future research, and implications for management are discussed. (shrink)

This research examines how the fit between employees moral development and the ethical work climate of their organization affects employee attitudes. Person-organization fit was assessed by matching individuals' level of cognitive moral development with the ethical climate of their organization. The influence of P-O fit on employee attitudes was assessed using a sample of 304 individuals from 73 organizations. In general, the findings support our predictions that fit between personal and organizational ethics is related to higher levels of commitment and (...) job satisfaction and lower levels of turnover intent. Ethical P-O fit was related to higher levels of affective commitment across all three ethical climate types. Job satisfaction was only associated with ethical P-O fit for one of the three P-O fit variables and turnover intentions were significantly associated with two of the ethical P-O fit variables. The most consistent effect was found for the Conventional - Caring fit variable, which was significantly related to all three attitudes assessed. The weakest effect was found for the Preconventional - Instrumental fit variable, which was only predictive of affective commitment. The pattern of findings and implications for practice and future research are discussed. (shrink)

Abstract:We analyzed data from a survey of employees of a large military base in order to assess possible differences in the whistle-blowing process due to type of wrongdoing observed. Employees who observed perceived wrongdoing involving mismanagement, sexual harassment, or unspecified legal violations were significantly more likely to report it than were employees who observed stealing, waste, safety problems, or discrimination. Further, type of wrongdoing was significantly related to reasons given by employees who observed wrongdoing but did not report it, across (...) all forms of wrongdoing. However, the primary reason that observers did not report it was that they thought nothing could be done to rectify the situation. Finally, type of wrongdoing was significantly related to the cost of the wrongdoing, the quality of the evidence about the wrongdoing, and the comprehensiveness of retaliation against the whistle-blower. These findings suggest that type of wrongdoing makes a difference in the whistle-blowing process, and it should be examined in future research. (shrink)

When successful and ethical managers are alerted to possible organizational wrongdoing, they take corrective action before the problems become crises. However, recent research [e.g., Rynes et al. (2007, Academy of Management Journal50(5), 987–1008)] indicates that many organizations fail to implement evidence-based practices (i.e., practices that are consistent with research findings), in many aspects of human resource management. In this paper, we draw from years of research on whistle-blowing by social scientists and legal scholars and offer concrete suggestions to managers who (...) are interested in encouraging internal reporting of problems requiring attention, and to observers of questionable activity who are considering reporting it. We also identify ways that research suggests policy-makers can have a more positive influence. We hope that these suggestions will help foster evidence-based practice regarding whistle-blowing. (shrink)

Moral and financial scandals emerging in recent years around the world have created the momentum for reconsidering the role of virtuousness in organizational settings. This empirical study seeks to contribute toward maintaining this momentum. We answer to researchers’ suggestions that the exploratory study carried out by Cameron et al. :766–790, 2004 ), which related organizational virtuousness and performance, must be pursued employing their measure of OV in other contexts and in relation to other outcomes :928–958, 2007 ). Two hundred and (...) sixteen employees reported their perceptions of OV and their affective well-being at work, their supervisors reporting their organizational citizenship behaviors. The main finding is that the perceptions of OV predict some OCB both directly and through the mediating role of AWB. The evidence suggests that OV is worthy of a higher status in the business and organizational psychology literatures. (shrink)

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)

We employ a Layers of Workplace Influence theory to guide our study of whistleblowing among public accounting audit seniors. Specifically, we examine professional commitment, organizational commitment versus colleague commitment (locus of commitment), and moral intensity of the unethical behavior on two measures of reporting intentions: likelihood of reporting and perseverance in reporting. We find that moral intensity relates to both reporting intention measures. In addition, while high levels of professional identity increase the likelihood that an auditor will initially report an (...) observed violation, the auditor's commitment to the organization drives perseverance in reporting. Results may assist organizations and researchers in their understanding of antecedents to whistleblowing as a form of corporate governance and of the effect of these antecedents on whistleblowing perseverance. (shrink)

ABSTRACT:Despite a significant increase in whistle-blowing practices in work organizations, we know little about what differentiates whistle-blowers from those who observe a wrongdoing but chose not to report it. In this review article, we first highlight the arenas in which research on whistle-blowing has produced inconsistent results and those in which the findings have been consistent. Second, we propose that the adoption of an identity approach will help clarify the inconsistent findings and extend prior work on individual-level motives behind whistle-blowing. (...) Third, we argue that the integration of the whistle-blowing research with that on ethics programs will aid in systematically expanding our understanding of the situational antecedents of whistle-blowing. We conclude our review by discussing new theoretical and methodological arenas of research in the domain of whistle-blowing. (shrink)

Previous research on unethical business behavior usually has focused on its impact from a financial or philosophical perspective. While such foci are important to our understanding of unethical behavior, we argue that another set of outcomes linked to individual well-being are critical as well. Using data from psychological, criminological, and epidemiological sources, we propose a model of unethical behavior and well-being. This model postulates that decrements in well-being result from stress or trauma stemming from being victimized by, engaging in, or (...) witnessing unethical behavior, or even from being associated with individuals involved in such behavior. (shrink)

Existing whistle-blowing models rely on “cold” economic calculations and cost-benefit analyses to explain the judgments and actions of potential whistle-blowers. I argue that “hot” cognitions – value conflict and emotions – should be added to these models. I propose a model of the whistle-blowing decision process that highlights the reciprocal influence of “hot” and “cold” cognitions and advocate research that explores how value conflict and emotions inform reporting decisions. I draw on the cognitive appraisal approach to emotions and on the (...) social-functional value pluralism model to generate propositions. (shrink)

This study examined experimentally the effect of retaliation strength and accounting students’ level of moral reasoning, on their propensity to blow the whistle (PBW) when faced with a serious wrongdoing. Fifty-one senior accounting students enrolled in an auditing course offered by a large New Zealand university participated in the study. Participants responded to three hypothetical whistle-blowing scenarios and completed an instrument that measured moral reasoning (Welton et al., 1994, Accounting Education . International Journal (Toronto, Ont.) 3 (1), 35–50) on one (...) of two conditions – i.e., strong or weak retaliation for whistle-blowing. Consistent with the results of Arnold and Ponemon (1991, Auditing: A Journal of Practice and Theory 10 , 1–15) this study found that the strength of retaliation and participants’ moral reasoning level positively affected their PBW. Unlike results reported in Arnold and Ponemon (1991, Auditing; A Journal of Practice and Theory 10 , 1–15) a significant interaction effect of moral reasoning level and retaliation on participants’ PBW was not found. However, results showed that a participant’s gender has a significant effect on the relationship between his or her moral reasoning level and PBW. These results support the need to improve ethical awareness through accounting education and to increase protection for whistle-blowing (Miceli 2004, Journal of Management Inquiry 13 , 364–366). Furthermore, many participants found it difficult to take a stand when serious wrongdoing is discovered. Therefore, policymakers must exercise caution when placing heavy reliance on whistle-blowing, especially when whistle-blower protection processes are complex and not easily accessible, and processes to facilitate whistle-blowing may vary substantially between public and private sector organizations (Scholtens, 2003, Review of the operation of the Protected Disclosures Act 2000: Report to the Minister of State Services ). (shrink)

Recent financial fraud legislation such as the Dodd–Frank Act and the Sarbanes–Oxley Act (U.S. House of Representatives, Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, [H.R. 4173], 2010 ; U.S. House of Representatives, The Sarbanes–Oxley Act of 2002, Public Law 107-204 [H.R. 3763], 2002 ) relies heavily on whistleblowers for enforcement, and offers protection and incentives for whistleblowers. However, little is known about many aspects of the whistleblowing decision, especially the effects of contextual and wrongdoing attributes on organizational (...) members’ willingness to report fraud. We extend the ethics literature by experimentally investigating how the nature of the wrongdoing and the awareness of those surrounding the whistleblower can influence whistleblowing. As predicted, we find that employees are less likely to report: (1) financial statement fraud than theft; (2) immaterial than material financial statement fraud; (3) when the wrongdoer is aware that the potential whistleblower has knowledge of the fraud; and (4) when others in addition to the wrongdoer are not aware of the fraud. Our findings extend whistleblowing research in several ways. For instance, prior research provides little evidence concerning the effects of fraud type, wrongdoer awareness, and others’ awareness on whistleblowing intentions. We also provide evidence that whistleblowing settings represent an exception to the well-accepted theory of diffusion of responsibility. Our participants are professionals who represent the likely pool of potential whistleblowers in organizations. (shrink)

This paper explores the possible impact of the recent legal developments on organizational whistleblowing on the autonomy and responsibility of whistleblowers. In the past thirty years numerous pieces of legislation have been passed to offer protection to whistleblowers from retaliation for disclosing organisational wrongdoing. An area that remains uncertain in relation to whistleblowing and its related policies in organisations, is whether these policies actually increase the individualisation of work, allowing employees to behave in accordance with their conscience and in line (...) with societal expectations or whether they are another management tool to control employees and protect organisations from them. The assumptions of whistleblower protection with regard to moral autonomy are examined in order to clarify the purpose of whistleblower protection at work. The two extreme positions in the discourse of whistleblowing are that whistleblowing legislation and policies either aim to enable individual responsibility and moral autonomy at work, or they aim to protect organisations by allowing them to control employees and make them liable for ethics at work. (shrink)

Examining intrapersonal factors theorized to influence ethics reporting decisions, the relation of self-efficacy as a predictor of propensity for internal whistleblowing is investigated within a US and Canadian multi-regional context. Over 900 professionals from a total of nine regions in Canada and the US participated. Self-efficacy was found to influence participant reported propensity for internal whistleblowing consistently in both the US and Canada. Seasoned participants with greater management and work experience demonstrated higher levels of self-efficacy while gender was also found (...) to be influential to self-efficacy. These individual traits, although related to self-efficacy, did not directly relate to propensities for internal whistleblowing. The findings demonstrate that self-efficacy could represent an important individual trait for examining whistleblowing issues. Internal whistleblowing is becoming an important organizational consideration in many areas of North America, yet there is relatively little research on the topic. Organizations seeking effective internal reporting systems should consider the influence of self-efficacy along with its potential reporting influence. By empirically testing an under-examined component of theory related to internal whistleblowing, this effort contributes to management literature, extending the knowledge beyond a US context, and provides recommendation for managing individual bias with internal reporting systems. (shrink)

We report the results of a study that examines the association between gender and individuals’ intentions to report fraudulent financial reporting using non-anonymous and anonymous reporting channels. In our experimental study, we examine whether reporting intentions in response to discovering a fraudulent financial reporting act are associated with the participants’ gender, the perpetrator’s gender, and/or the interaction between the participants’ and perpetrator’s gender. We find that female participants’ reporting intentions for an anonymous channel are higher than for male participants; the (...) fraud perpetrator’s gender and the interaction with participants’ gender were not significantly associated with anonymous channel reporting intentions. Neither of the two factors nor the interaction between the two factors was associated with reporting intentions to a non- anonymous reporting channel. Results from an additional analysis indicate that male and female participants differ in the extent to which they judge the reduction in personal costs of an anonymous reporting channel compared to a non-anonymous reporting channel and that the reduction in personal costs mediates the relationship between participant gender and anonymous reporting intentions. (shrink)

This article reports the findings from a study that investigates the relationship between ethical climates and police whistle-blowing on five forms of misconduct in the State of Georgia. The results indicate that a friendship or team climate generally explains willingness to blow the whistle, but not the actual frequency of blowing the whistle. Instead, supervisory status, a control variable investigated in previous studies, is the most consistent predictor of both willingness to blow the whistle and frequency of blowing the whistle. (...) Contrary to popular belief, the results also generally indicate that police are more inclined than civilian employees to blow the whistle in Georgia - in other words, they are less inclined to maintain a code of silence. (shrink)

This review summarizes and critiques the empirical ethical decision-making literature from 1996–2003. One hundred and seventy-four articles were published in top business journals during this period. Tables are included that summarize the findings by dependent variable – awareness, judgment, intent, and behavior. We compare this review with past reviews in order to draw conclusions regarding trends in the ethical decision-making literature and to surface directions for future research.

This article suggests that the introduction of employment protection rights for whistleblowers has implications for the way in which trust and loyalty should be viewed at the workplace. In particular, it is argued that the very existence of legislative provisions in the United Kingdom reinforces the notion that whistleblowing should not be regarded as either deviant or disloyal behaviour. Thus, the internal reporting of concerns can be seen as an act of trust and loyalty in drawing the employer's attention to (...) wrongdoing. Equally, external whistleblowing may result from a worker's belief that he or she also has a loyalty to the wider society. Given that the interests of employees do not necessarily coincide with those of their employer and that whistleblowers sometimes suffer reprisals, the author concludes that it is inappropriate to impose a contractual duty to report concerns. Instead, employers should endeavour to promote a culture of openness and create confidence in the mechanisms they provide for whistleblowing. (shrink)

The 2003 National Business Ethics Survey, conducted by the Ethics Resource Center, found that respondents who were both young and had short organizational tenure were substantially less likely than other respondents to report misconduct that they observed in the workplace to an authority. We propose that the life-course model of deviance can help account for this attenuation of acquiescence in misbehavior. As employees learn to perceive informal prosocial control during their socialization into the workforce, we hypothesize that they will become (...) more willing to blow the whistle on misconduct. Analysis of the 2003 NBES (n = 1,417, with a subset of 314 who observed misconduct) reveals that young and short-tenured employees do perceive less informal prosocial control, and that informal prosocial control does boost whistle-blowing; however, tests for mediation of the relationship between youth and short-tenure and whistle-blowing by informal social control were largely negative, suggesting that other explanations are still needed. (shrink)

When successful and ethical managers are alerted to possible organizational wrongdoing, they take corrective action before the problems become crises. However, recent research [e. g., Rynes et al. (2007, Academy of Management Journal 50(5), 987-1008)] indi cates that many organizations fail to implement evidence-based practices (i. e., practices that are consistent with research findings), in many aspects of human resource management. In this paper, we draw from years of research on whistle-blowing by social scientists and legal scholars and offer concrete (...) suggestions to managers who are interested in encouraging internal reporting of problems requiring attention, and to observers of questionable activity who are considering reporting it. We also identify ways that research suggests policy-makers can have a more positive influence. We hope that these suggestions will help foster evidence-based practice regarding whistle-blowing. (shrink)

Since there have been many recent occurrences of alleged wrongdoing by business persons and other professionals, it seems additional ethics research is needed to obtain knowledge that will impact real-world behavior. An empirical study assessed business students' impressions of hypothetical wrongdoers and whistleblowers. To some extent, impressions of an unethical executive and a whistleblower were influenced by the same variables and in opposite directions. Female respondents judged the unethical executive less favorably and the whistleblower more favorably than did males. The (...) executive was rated less favorably and the whistleblower more favorably when the executive sought a small gain than when the goal was a large gain or prevention of a loss of either magnitude. Some manipulations, however, impacted impressions of one actor, but not the other. Perhaps ethics training can make students aware that issue framing and moral intensity components may bias decisions. (shrink)

Putting measures in place to prevent wrongdoing in organizations is important, but detecting and correcting wrongdoing are also vital. Employees who detect wrongdoing should, therefore, be encouraged to respond in a manner that supports corrective action. This article examines the influence of the ethical culture of organizations on employee responses to observed wrongdoing. Different dimensions of ethical culture are related to different types of intended responses. The findings show that several dimensions of ethical culture were negatively related to intended inaction (...) and external whistleblowing and positively related to intended confrontation, reporting to management, and calling an ethics hotline. (shrink)

Research on whistleblowing has not yet provided a finite set of variables which have been shown to influence an employee's decision to report wrongdoing. Prior research on business ethics suggests that ethical business decisions are influenced by both organizational as well as intrapersonal variables. As such, this paper attempts to predict the decision to whistleblow using organizational and intrapersonal variables. External whistleblowing was found to be significantly related to supervisor support, informal policies, gender, and ideal values. External whistleblowing was not (...) found to be significantly predicted by formal policies, organizational tenure, age, education, satisfaction, or commitment. (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)

Based on organizational justice theories and cognitive dissonance theories, the authors hypothesized that: (a) perceived top management support for ethical behaviors will be positively correlated with all facets of job satisfaction (supervision, pay, promotion, work, co-workers, and overall); and (b) the correlation will be highest with the facet of supervision. Empirical results (n = 77 middle level managers from two organizations in South India) supported only the second hypothesis. Implications for managing a global workforce are discussed.