This study uses a rational ethical decision-making framework to examine the influence of moral intensity (potential harm and social pressure) on whistleblowing intention and behaviour using organisational commitment as a moderator. A scenario was developed, and an online questionnaire was used to conduct an empirical analysis on the responses of 533 participants. The mean age and years of work experience of the respondents were 31 and 8.2 years, respectively. The results show, first, that while moral intensity is correlated with whistleblowing (...) intention, only the potential harm is positively correlated with such intention. Second, potential harm and social pressure differentially affect whistleblower choice of using an internal or external channel. Third, organisational commitment has a moderated mediation effect among moral intensity, whistleblowing intention and behaviour. Fourth, whistleblowers may be grouped into four conceptual types: indifferent, rebel, mature and spoil. Finally, theoretical and managerial implications of the findings are discussed. (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)

This paper explores the ethical dilemma of conflicting loyalties found in whistleblowing. Central to this dilemma is the internal/external disclosure dichotomy; disclosure of organisational wrongdoing to an external recipient is seen as disloyal, whilst disclosure to an internal recipient is seen as loyal. Understanding how the organisation and society have dealt with these problems over the last 30 years is undertaken through an analysis of Vandekerckhove’s project, which seeks to place the normative legitimisations of whistleblowing legislation and organisational whistleblowing policies (...) within a globalisation semantic able to contain this conflict between society and the organisation. This project fails, it is argued, because of Vandekerckhove’s particular understanding of the organisation as an autopoietic system, i.e. an operationally closed system. A case is made to understand organisations as complex systems, i.e. operationally open systems. Critical Complexity theory sees the identities of systems and components as coterminous. In the context of the organisation, this means that the identities of the corporation and its corporate members arise and die together. The whistleblower’s disclosure reconfigures the organisation by forcing the organisation to open up and make its boundaries flexible, making the designation ‘internal’ or ‘external’ to the organisation, and, therefore, who qualifies as a recipient of a disclosure of wrongdoing, flexible. The organisation is restrained from retailing against the whistleblower, because its identities are coterminous. Furthermore, as the disclosure cannot be categorically defined as either internal or external, the question of whether an external disclosure can qualify as an act of organisational loyalty becomes moot. (shrink)

The research described here contributes to the extant empirical research on business ethics education by examining outcomes drawn from the literature on positive organizational scholarship (POS). The general research question explored is whether a course on ethical decision-making in business could positively influence students’ confidence in their abilities to handle ethical problems at work (i.e., moral efficacy), boost the relative importance of ethics in their work lives (i.e., moral meaningfulness), and encourage them to be more courageous in raising ethical problems (...) at work even if it is unpopular (i.e., moral courage). Specifically, the study used a rigorous quasi-experimental pretest–posttest research design with a treatment (N = 30) and control group (N = 30) to investigate whether a graduate-level course in business ethics could influence students’ levels of moral efficacy, meaningfulness, and courage. Findings revealed that participants in the business ethics treatment course experienced significant positive increases in each of the three outcome variables as compared to the control group. The largest increase was in moral efficacy, followed by moral courage, and finally, moral meaningfulness. These findings are discussed in the context of the current research on business ethics education and POS. Implications for future research are discussed. (shrink)

We conduct quantitative and qualitative analysis of 33 cases of internal and external whistleblowers wrongfully fired for reporting wrongdoing. Our results show external whistleblowers have less tenure with the organization, greater evidence of wrongdoing, and they tend to be more effective in changing organizational practices. External whistleblowers also experience more extensive retaliation than internal whistleblowers, and patterns of retaliation by management against the whistleblower vary depending on whether the whistleblower reports internally or externally. We discuss implications for organizations and whistleblowers, (...) and we conclude that researchers need to develop different theoretical explanations of internal and external whistleblowing processes. (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)

Despite the growing number of studies examining consumers' perceptions of unethical corporate and consumer practices, research examining the apparent double standard existing between what consumers perceive as acceptable corporate behaviour and what they believe are acceptable consumer practices remains scarce. Contradictory, double standards are often quoted by other researchers as a major stream in ethical literature.The few studies dealing with this topic as well as this study indicate that people rate corporate unethical actions as less admissible compared to similar consumer (...) misactions. However, little is known about the processes underlying these double standards. This research investigates whether the techniques of neutralization could provide a meaningful way of approaching this phenomenon. Findings indicate that the higher the extent to which people agree with arguments explaining away the misbehaviour instigated by consumers or business, the more they tolerate these questionable consumer and corporate practices. Furthermore and more importantly, these techniques give an answer on the question why people judge business (representatives) more harshly than consumers. More specifically, results show that the same respondents who justify questionable consumer actions to a certain degree, condone the same misbehaviours instigated by business (representatives) to a much lesser extent. In this way, the techniques of neutralization concern a process explaining the double standard phenomenon. (shrink)

This study examined whether it was possible to classify Australian public sector employees as either whistleblowers or non-reporting observers using personal and situational variables. The personal variables were demography (gender, public sector tenure, organisational tenure and age), work attitudes (job satisfaction, trust in management, whistleblowing propensity) and employee behaviour (organisational citizenship behaviour). The situational variables were perceived personal victimisation, fear of reprisals and perceived wrongdoing seriousness. These variables were used as predictors in a series of binary logistic regressions. It was (...) possible to identify whistleblowers on the basis of individual initiative, whistleblowing propensity (individual and organisational), fear of reprisals, perceived wrongdoing seriousness and perceived personal victimisation. It was concluded that whistleblowers are not markedly dissimilar to non-reporting observers. Based on the two most influential variables (perceived personal victimisation and perceived wrongdoing seriousness), the average Australian public sector whistleblower is most likely to be an ordinary employee making a good faith attempt to stop what they perceived to be a serious wrongdoing that was initially identified through personal victimisation. (shrink)

Many models of (un)ethical decision making assume that people decide rationally and are in principle able to evaluate their decisions from a moral point of view. However, people might behave unethically without being aware of it. They are ethically blind. Adopting a sensemaking approach, we argue that ethical blindness results from a complex interplay between individual sensemaking activities and context factors.

Over the past 20 years business ethics in Europe witnessed a remarkable growth. Today business ethics is faced with two challenges. The first comes from the social sciences and consultants who have both reclaimed the topics of business ethics, regretfully often at the loss of the proper ethical perspective. The second comes from the remarkable rise of corporate social responsibility which has pushed aside the mainstream business ethics methodology with its emphasis on moral deliberation by the individual. These challenges can (...) be tackled by an institutional transformation in business ethics that links up to the long-standing European tradition of institutional analysis of the market. The second remedy is an enlargement of the research agenda in business ethics by coming closer to other parts of applied ethics where the business ethics view is at this moment grossly neglected. (shrink)

In response to the lack of empirical studies examining the internal disclosure behavior in the Chinese context, this study tested a whistleblowing -decision-making process among employees in the Chinese banking industry. For would-be whistleblowers, positive affect and organizational ethical culture were hypothesized to enhance the expected efficacy of their whistleblowing intention, by providing collective norms concerning legitimate, management-sanctioned behavior. Questionnaire surveys were collected from 364 employees in 10 banks in the Hangzhou City, China. By and large, the findings supported the (...) hypotheses. Issues of whistleblowing in the Chinese context and implications were discussed. (shrink)

Ethical sensitivity triggers the entire ethical decision-making process (i.e., recognition of ethical content in work situations). In this article, five factors are examined that affect tax practitioners' professional ethical sensitivity. The five factors that were examined include role conflict, role ambiguity, job satisfaction, professional commitment, and ethical orientation. Ethical content in work situations is examined in relation to professional ethics as enumerated by the American Institute of Certified Public Accountant's (AICPA) Statements on Responsibilities in Tax Practice (SRTP). Utilizing Hunt and (...) Vitell's (1986, 1993) General Theory of Ethics, a model of ethical sensitivity was constructed and empirically tested. Role conflict negatively and job satisfaction positively influenced tax practitioners' ethical sensitivity. Also, the covariates of the tax practitioner's professional risk level and type of employer were found to be significant. The significant factors are job specific. The tax firm may have the best opportunity to positively change a tax practitioner's ethical recognition abilities. Professional accounting organizations may need to evaluate if resources should be used to formulate, maintain, and publicize codes of conduct because of the lack of significance of professional commitment. (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)

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.

Whistleblowing has been defined often and in differing ways in the literature. This paper has as its main purposes to clarify the meaning of whistleblowing and to speak for a narrow interpretation of it. A restrictive, general purpose definition is provided which contains six necessary elements: act of disclosure, actor, disclosure subject, target, disclosure recipient, and outcome.Whistleblowing is characterised as a dissenting act of public accusation against an organisation which necessitates being disloyal to that organisation. The definition differs from others (...) in many ways but especially by its emphasis on dissent, by being based on the ethical dilemma of conflicting loyalties, and by the strict way that dilemma is formulated in terms of confidentiality and proprietary rights over information. These features result in a definition in which motive has no part, and which requires a free choice decision to make disclosure to an external party. (shrink)

This paper examines the moral arguments for and against employees' blowing the whistle on illegal or immoral actions of their employers. It asks whether such professional dissidents are justified in disclosing wrongdoing by others while concealing their own identity. Part I examines the concept of anonymity, distinguishing it from two similar concepts — secrecy and privacy. Part II analyzes the concept of whistleblowing using recent definitions by Bok, Bowie and De George. Various arguments against anonymous whistleblowing are identified and evaluated. (...) The author concludes with a defense of the practice in terms of social benefits — primarily the redressing of wrongdoing. (shrink)

We conduct quantitative and qualitative analysis of 33 cases of internal and external whistleblowers wrongfully fired for reporting wrongdoing. Our results show external whistleblowers have less tenure with the organization, greater evidence of wrongdoing, and they tend to be more effective in changing organizational practices. External whistleblowers also experience more extensive retaliation than internal whistleblowers, and patterns of retaliation by management against the whistleblower vary depending on whether the whistleblower reports internally or externally. We discuss implications for organizations and whistleblowers, (...) and we conclude that researchers need to develop different theoretical explanations of internal and external whistleblowing processes. (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)

Managers of organizations should be aware of the attitudes of employees concerning whistleblowing. Employee views should affect how employers choose to respond to whistleblowers through the evolving law of wrongful discharge.This article reports on a survey of employee attitudes toward the legal protection of whistleblowers and presents an analysis of the results of that survey.

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)

This paper explores moral sensitivity in a learning perspective, and a framework is developed for the understanding of how moral sensitivity can be developed through reiterative problem solving in the face of diverse ethical problems. Factors that may inhibit the individual's ability to conceive of moral issues are discussed, and perspectives from moral psychology are integrated with theory on problem formulation. It is argued that (1) the individual's moral sensitivity is pivotal for ethical problem solving, because problem formulation is paramount (...) for further reflection and behaviour; (2) ethical behaviour must be understood both (a) in terms of the individual's psychological make‐up that determines psychological response to moral features and (b) in terms of external constraints on the individual's moral sensitivity; and (3) the development of moral sensitivity can be promoted by actively and consciously pursuing disciplined imagination in multi‐perspective formulations of problems. (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)

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)

The current study presents the findings of an empirical inquiry into the effects of Confucian ethics and collectivism, on individual whistleblowing intentions. Confucian Ethics and Individualism–Collectivism were measured in a questionnaire completed by 343 public officials in South Korea. This study found that Confucian ethics had significant but mixed effects on whistleblowing intentions. The affection between father and son had a negative effect on internal and external whistleblowing intentions, while the distinction between the roles of husband and wife had a (...) positive effect on those intentions. The effects of collectivism were also different depending on the specific types of collectivism. Horizontal collectivism had a positive effect on both types of whistleblowing intentions, whereas vertical collectivism did not show any significant effects on whistleblowing intentions. These results indicate that cultural traits such as Confucian ethics and collectivism may affect an individual’s whistleblowing intentions in degree and direction, making blanket predictions about cultural effects on whistleblowing difficult. (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)

This review summarizes the research on ethical decision-making from 2004 to 2011. Eighty-four articles were published during this period, resulting in 357 findings. Individual findings are categorized by their application to individual variables, organizational variables, or the concept of moral intensity as developed by Jones :366–395, 1991). Rest’s four-step model for ethical decision-making is used to summarize findings by dependent variable—awareness, intent, judgment, and behavior. A discussion of findings in each category is provided in order to uncover trends in the (...) ethical decision-making literature. A summary of areas of suggested future research is provided. (shrink)

The first edition was awarded the '2005 Textbook Award of the Association of University Professors of Management (Verband der Hochschullehrer fur ...

This article summarizes the multitude of empirical studies that test ethical decision making in business and suggests additional research necessary to further theory in this area. The studies are categorized and related to current theoretical ethical decision making models. The studies are related to awareness, individual and organizational factors, intent, and the role of moral intensity in ethical decision making. Summary tables provide a quick reference for the sample, findings, and publication outlet. This review provides insights for understanding organizational ethical (...) decision constructs, where ethical decision making theory currently stands, and provides insights for future empirical work on organizational ethical decision making. (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)

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)

Whistle-blowing is generally considered from the viewpoint of professional morality. Morality rejects the idea of choice and the interests of the professional as immoral. Yet the dreadful retaliations against the messengers of the truth make it necessary for morality to leave a way out of whistle-blowing. This is why it forges rights (sometimes called duties) to trump the duty to the public prescribed by professional codes. This serves to hide the obvious fact that whether to blow the whistle is indeed (...) a choice, not a matter of objective duty. One should also notice that if it fails to achieve anything then blowing the whistle was the wrong decision (or maybe the right decision that nobody would want to make). There is nevertheless a tendency to judge it based on the motivation of the whistle blower. In a way, whistle blowers should strive to act like saints. Yet, it is logically impossible to hold both whistle-blowing as mandatory and whistle-blowers as heroes or saints. Moreover, this tends to value the great deeds of a few over the lives of the many, which is incompatible with the basic assumptions of morality. But consistency is not a main feature of professional morality. (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)

The Sarbanes–Oxley Act of 2002 requires audit committees of public companies’ boards of directors to install an anonymous reporting channel to assist in deterring and detecting accounting fraud and control weaknesses. While it is generally accepted that the availability of such a reporting channel may reduce the reporting cost of the observer of a questionable act, there is concern that the addition of such a channel may decrease the overall effectiveness compared to a system employing only non-anonymous reporting options. The (...) rationale underlying this concern involves the would-be reporter’s likelihood of reporting, the seriousness with which the organization treats an anonymous report, and the organization’s ability to thoroughly follow-up the report. Thus, we explore the extent to which the availability of an anonymous reporting channel influences intended use of non-anonymous reporting channels. Further, in response to Sarbanes–Oxley and the environment of financial scandals that led to its passage, many firms are strengthening their internal audit departments, and providing them with greater independence from upper management’s direct control. Accordingly, our examination tests whether the intended use of the internal audit department as an internal reporting channel is greater when the internal audit department is of “high” versus “low” quality. Finally, the study investigates intended reporting behavior across three different cases (e.g., settings). Results show that the existence of an anonymous channel does reduce the likelihood of reporting to non-anonymous channels, that generally the internal audit department quality does not affect reporting to non-anonymous channels, and that case-setting affects the type of channel to be used. Implications from the study are discussed. (shrink)

This paper develops a typology of moral problems in business. The cross-classification of two fundamental dimensions of ethical conduct: judgment and motivation, is employed to distinguish four types of moral problems: genuine dilemmas, compliance problems, moral laxity, and no-problem problems. Actual cases are brought to illustrate each type of problem, and corresponding coping strategies are presented. The paper highlights the need to design a dynamic strategy that will take into account the relationships among different types of ethical problems. In its (...) capacities as both an analytical tool for identifying and clarifying an ethical problem and a strategic tool for handling it, the typology has direct implications for developing ethical awareness, assigning accountability, and unfolding typical rationalizations in business activity. (shrink)

This study used a national sample of professionals and a questionnaire containing equitable relief vignettes to explore whether the new equitable relief subset of the revised innocent spouse rules is helpful to the IRS when making relief decisions. The study also addressed the ethical and gender issues associated with equitable relief innocent spouse cases. The results suggested that several equitable relief factors are useful as discriminators in the relief decision. The results also demonstrated that the recognition of an ethical issue (...) and perceptions of moral intensity affected the decision to grant relief in innocent spouse situations. Finally, women subjects were more ethical and more sympathetic toward the victim in an innocent spouse situation than were their male counterparts. These findings have numerous personal and societal implications for businesses, IRS agents, CPAs, and attorneys, as well as other nations wishing to reform their tax structures while assessing the tradeoff between equity and tax revenue generation. (shrink)

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)

A growing body of literature documents the important role played by moral outrage or moral anger in stakeholders’ reactions to cases of corporate social irresponsibility. Existing research focuses more on the consequences of moral outrage than a systematic analysis of how appraisals of irresponsible corporate behavior can lead to this emotional experience. In this paper, we develop and test, in two field studies, an extended model of moral outrage that identifies the cognitions that lead to, and are associated with, this (...) emotional experience. This research contributes to the existing literature on reactions to corporate social irresponsibility by explaining how observers’ evaluation of irresponsible corporate behavior leads to reactions of moral anger. The paper also helps clarify the difference between moral outrage and other types of anger and offers useful insights for managers who have to confront public outrage following cases of irresponsible corporate behavior. Finally, the analysis of the causes of stakeholders’ anger at irresponsible corporations opens important avenues for future research that are presented in the paper. (shrink)

This paper draws on cognitive psychological theory to explain the role of emotion in the decision-making process of four reluctant, vulnerable witnesses to wrongdoing, who were persuaded to blow the whistle on matters of substantial public interest. It proposes a theoretical explanation for the role of emotion on whistle-blower or witness decision-making, based on the Iterative Reprocessing Model and drawing on appraisal-based theories of cognitive psychology. It concludes that the decision to speak is preceded by an intense emotional episode, probably (...) due to changes in the witnesses’ coping and legitimacy appraisal structures. These changes are most likely a result of interaction with journalists and others during the decision-making process. (shrink)

Given the prevalence of corporate frauds and the significance of whistle blowing as a mechanism to report about the frauds, the present study explores the impact of ethical leadership and leader–member exchange (LMX) on whistle blowing. Additionally, the article also explores the moderating role of the moral intensity [studied as magnitude of consequences (MOC)] of the issue on this relationship. The article reports results of three experimental studies conducted on the postgraduate students of a premier technology institute in India. Ethical (...) leadership, LMX, and moral intensity are manipulated through scenarios. Study one ( n = 81) manipulates ethical leadership (ethical/unethical) and quality of LMX (low and high) as independent variables; study two ( n = 80) manipulates ethical leadership and moral intensity (high and low MOC), and study three ( n = 87) manipulates LMX and MOCs to assess their individual and joint effects on whistle blowing. Results show that not only do ethical leadership and LMX predict whistle blowing, but these relationships get moderated by the moral intensity of the issue as well. (shrink)

Today's complex and decentralized organization gives rise to organizational needs for both loyalty and institutionalized whistle blowing. However, ethicists see a contradiction between both needs. This paper argues there is no such contradiction. It shows why earlier attempts to go beyond the dilemma are not satisfying. The solution proposed in this paper starts from an organizational perspective instead of an individual one. It does so by reframing the concept of loyalty into rational loyalty. This means that the object of loyalty (...) is not the physicality of an organization, but its corpus of explicit mission statement, goals, value statement and code of conduct. An implication is that organizations are – as their side of the duty of loyalty – obliged to institutionalize whistle blowing. (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)

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.

Whistleblowers have usually been treated as outcasts by private-sector employers. But legal, ethical, and practical considerations increasingly compel companies to encourage employees to disclose suspected illegal and/or unethical activities throughinternal communication channels. Internal disclosure policies/procedures (IDPP''s) have been recommended as one way to encourage such communication.This study examined the relationship between IDPP''s and employee whistleblowing among private-sector employers. Almost 300 human resources executives provided data concerning their organizations'' experiences.

Decades of empirical and theoretical research has produced an extensive literature on the ethical judgments construct. Given its importance to understanding people’s ethical choices, future research should explore the psychological processes that produce ethical judgments. In this paper, the authors discuss two steps needed to advance this effort. First, they note that the business ethics literature lacks a single, generally accepted definition of ethical judgments. After reviewing several extant definitions, the authors offer a definition of the construct and discuss its (...) advantages. Second, future ethical judgment research would benefit from greater integration between theories of ethical decision making and theories of social cognition. Drawing upon the Hunt–Vitell ( Journal of Macromarketing 6 (Spring), 5–15, 1986 ; In: N. C. Smith and J. A. Quelch (eds.), Ethics in Marketing . Irwin, Homewood, IL, pp. 775–784, 1992 ) model and the heuristic-systematic model (Chaiken, Journal of Personality and Social Psychology 39 (November), 752–766, 1980 ), the authors present a brief research agenda intended to stimulate research on the psychological processes behind ethical judgments. (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)

This article explores the relevance of the Theory of Planned Behavior to whistleblowing research, and considers whether its widely tested validity as a model of the link between attitudes, intention, and behavior might make it an appropriate candidate for a general theory to account for whistleblowing. This proposition is developed through an empirical test of the theory's predictive validity for whistleblowing intentions. Using a sample of 296 Korean police officers, the analysis showed that attitude, subjective norm, and perceived behavioral control (...) all had significantly positive main effects on internal whistleblowing intentions, but for external whistleblowing intentions only subjective norm was significant. The implications of these findings for applying the Theory of Planned Behavior to whistleblowing research are discussed. (shrink)

Incidences of organizational wrongdoing have become wide spread throughout the whole business world. The management of organizational wrongdoings is of growing concern in organizations globally, since these types of acts can be detrimental to financial well being. Wrongdoing occurs within organizational settings and organizational members commonly have knowledge of and thus the opportunity to report the wrongdoing. An employee’s decision to report individual or organizational misconduct, i.e. blow the whistle, is a complex phenomenon that is based upon organizational, situational and (...) personal factors. The purpose of this study is to examine the relationship between value orientations of individuals and choices for particular whistleblowing modes. Our results show that there are significant relationships between these variables. We contribute to the extant literature by choosing Turkey as context as most studies have been conducted in the US and Europe, and little has been reported about the actions taken by employees in non-Western cultures when they observe wrongdoing in their organizations. (shrink)