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)

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)

Developing research questions -- Developing the framework for an ethical assessment -- Possible legitimation of whistleblowing policies -- Screening whistleblowing policies -- Towards what legitimation of whistleblowing?

Introduction: Morality in Modern and Postmodern Perspective Shattered beings are best represented by bits and pieces. Rainer Maria Rilke As signalled in its ...

What is right in the corporation is not what is right in a man's home or in his church," a former vice-president of a large firm observes. "What is right in the corporation is what the guy above you wants from you." Such sentiments pervade American society, from corporate boardrooms to the basement of the White House. In Moral Mazes, Robert Jackall offers an eye-opening account of how corporate managers think the world works, and of how big organizations shape moral (...) consciousnss. Based on extensive interviews with managers at every level of two industrial firms and of a large public relations agency, Moral Mazes takes the reader inside the intricate world of the corporation. It is a world where hard work does not necessarily lead to success, but where sharp talk, self-promotion, powerful patrons, and sheer luck might; where intense competition is masked by cheerfully bland public faces; where intentions are cloaked and frankness is simply one of many guises; and where words are always provisional and accountability often depends on the ability to outrun mistakes. In this topsy-turvy world, managers must bring often unforgiving technology and always difficult people together to make money, an uncompromising task demanding continual compromises with conventional verities. Moral issues are translated into practical concerns and into issues of public relations. Sooner or later, managrs ask themselves: How does one act in such a world and maintain a sense of personal integrity? Moral Mazes is a brilliant, sometimes disturbing, often wildly funny study of corporate thinking, decision-making, and morality. It is an analytical work of great importance, one filled with compelling real life stories of the men and women charged with running the business of America. It is a book for anyone interested in how big organizations actually function, or who is concerned with the current moral malaise in our public life. (shrink)

With the demise of Marxism and socialism, the United States is becoming a model not merely for free enterprise, but also for employment practices worldwide. I believe that free enterprise is the least worst economic system, given the alternatives, a position I shall assume, but not defend, here. However, I shall argue, a successful free enterprise political economy does not entail mimicking US employment practices. I find even today in 1998, as I shall outline in more detail, these practices, when (...) consistently carried out, by and large erode trust in the workplace, they are, on balance unfair to workers and managers, and, if Jeffrey Pfeffer is correct, they do not maximize long-term corporate earnings or growth. Getting clear on US employment practices and their weaknesses may help to shape other models for employment that neither contravene free enterprise nor are degrading to workers. (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)

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.

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)

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)

Much light can be shed on events which characterize or underlie scandals at firms such as Enron, Arthur Andersen, Worldcom, ImClone, and Tyco by appealing to the notion of ethical distance. Various inquiries have highlighted the difficulties in finding or identifying particular individuals to blame for particular events, and in the context of situations as complex as these it can sometimes be helpful to investigate the comparative ethical distance of various participants in these events. In this essay I offer a (...) characterization of ethical distance in terms of moral responsibility, and in doing so I describe and illustrate the rough inverse correlation between moral distance and degrees of moral responsibility. I urge that the concept of ethical distance is capable of shedding light upon situations in which several people are involved in bringing about a state of affairs. I then argue that moral responsibility cannot do justice to all situations involving ethical distance. When the distance between a person and a state of affairs grows sufficiently large, a different type of treatment is called for, and I introduce the notion of moral taint to describe the moral status of agents in these situations. (shrink)

In the short essay on theory and practice, Kant declares that the social contract differs from all other types of contracts in that agreement to its is obligatory and may be exacted through the use of force. In this paper, I examine Kant's justification of the moral necessity of civil society. Kant locates the ground of our obligation to enter into a civil union in the necessity of property for action and civil society as the necessary condition of the institution (...) of property. It is my contention that the idea of the social contract is central to this project in that it joins together both moral autonomy and political authority in a conceptual unity that establishes the legitimacy of civil society, or the juridical condition as the collective dimension of autonomy. (shrink)

Esteemed moral philosopher James Rachels here collects fifteen essays, some classic and others extensively revised, on the nature and limits of moral reasoning. Rachels argues that, rather than simply expressing societal conventions, moral philosophy can subvert received opinion and replace it with something better. Combining a concern for ethical theory with a discussion of practical moral issues such as euthanasia, the rights of animals, privacy, and affirmative action. Can Ethics Provide Answers is an excellent collection for students, scholars, and anyone (...) concerned with the degree to which our principles can guide our policies. (shrink)

This paper compares and evaluates two forms of dissent: civil disobedience — protests by citizens against the laws or actions of their government; and whistleblowing — disclosure by employees of illegal, immoral or questionable practices by their employees. Each is identified, the conceptual issues are distinguished from strategic and normative ones and parallel moral questions posed. Should one first dissent within prescribed channels before going outside them? Should one act publicly or is withholding one's identity permissible or desirable? What is (...) the basis and limits for one's loyalty to one's country or employer, and how can transgressing these limits be morally justified? (shrink)

Why is it that some business managers appear to behave differently in private and at work? How, if at all, are the decisions managers make affected by the nature of their organisations? What impact do organisational values have on the moral autonomy of managers? A research project into these questions is now under way in three disparate Australian business firms and this paper sets out the premise underlying it. For purposes of research the general premise is that the moral character (...) of a business influences the moral judgements and actions of its members. More specifically, it is suggested that the economic paradigm renders a business organisation amoral rather than moral or immoral, and as a result moral responsibility comes to be assigned to individual members. However, the socio-cultural nature of such firms interferes with the ability of managers to exercise moral autonomy. Governed as it is by the market or laws of economics, the amoral organisation is likely to transform its members into individuals without moral standards. (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)

The astute manger should be aware that, in organizations, the deck is frequently ‘stacked’ against higher levels of ethical behavior. This deck stacking occurs because of socialization processes, environmental influences, and the organization hierarchy. As a result of bosses using hierarchical leverage to take the ethical dimension of decision-making away from subordinates, the stage is set for a they-made-me-do-it defense of their moral integrity by these subordinates if and when violations of ethical norms come to light. There is also at (...) work, however, an I-made-them-do-it situation in which professionals who prefer to ‘nest’ in the more technical aspects of their work ‘delegate’ — upward — to their bosses ethical decision-making. Understanding these dynamics is crucial in an age which is especially sensitized to the ethical facet of organizational behavior. (shrink)

Since the introduction of the U.S. Sarbanes-Oxley Act in 2002 and several other national corporate governance codes, whistleblowing policies have been implemented in a growing number of companies. Existing research indicates that this type of governance codes has a limited direct effect on ethical or whistleblowing behaviour whereas whistleblowing policies at the corporate level seem to be more effective. Therefore, evidence on the impact of (inter)national corporate governance codes on the content of corporate whistleblowing policies is important to understand their (...) indirect impact on whistleblowing behaviour. This study analyzes the contents of whistleblowing policies, and parts of corporate codes of conduct and codes of ethics, describing such policies of 56 leading European companies. By classifying the contents in seven categories, an exploratory framework was created. General contents often identified were: applicability to all employees, a group-wide scope and an authoritative tone. The most common general violations to report were breaches of internal policies and external regulations or laws. The more specific violations most frequently mentioned were criminal offences and dangers to health and safety or the environment. Contacts to report to were the direct or indirect supervisors, a compliance officer or a confidential "hotline" facility. A confidentiality guarantee was common and anonymous reporting was often possible, though sometimes discouraged. Protection against retaliation is stated by ensuring that retaliation will not happen, prohibiting it or making it punishable. The requirement of good faith was frequently given. Finally, investigation of the report was often guaranteed. Surprisingly little information is given on the treatment of whistleblowers reporting an unfounded complaint in good faith, or reporting a violation they were involved in. The study's findings are most relevant to companies without a whistleblowing policy or those that intend to benchmark their policies, and to pan-European standard setters. (shrink)

‘Responsibility’, ‘accountability’ and ‘governance’ are key terms within business ethics. This paper aims to construct a framework to help us understand the relationships between these terms. I first of all analyse the concept of responsibility to show the place of accountability within it, then move to analyse accountability as a sub–concept of responsibility, then finally attempt to show how accountability along with responsibility in general figures within governance structures. While obviously not as complex as the concept of responsibility of which (...) it is part, the sub–concept of accountability is somewhat more complex than often seems to be supposed. The view taken of governance is that as a concept it is relatively straightforward. It acquires complexity only with the involvement of responsibility along with accountability and other aspects of responsibility. The vexed questions as to how these are to be applied lie at the heart of disputes about corporate governance. Though not offering a solution to those disputes, the fact that they arise from the involvement of responsibility, accountability and related matters means that the analysis of concepts given here does offer a framework for thinking about these disputes more clearly. (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)

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)

Why is it that some business managers appear to behave differently in private and at work? How, if at all, are the decisions managers make affected by the nature of their organisations? What impact do organisational values have on the moral autonomy of managers? A research project into these questions is now under way in three disparate Australian business firms and this paper sets out the premise underlying it. For purposes of research the general premise is that the moral character (...) of a business influences the moral judgements and actions of its members. More specifically, it is suggested that the economic paradigm renders a business organisation amoral rather than moral or immoral, and as a result moral responsibility comes to be assigned to individual members. However, the socio-cultural nature of such firms interferes with the ability of managers to exercise moral autonomy. Governed as it is by the market or laws of economics, the amoral organisation is likely to transform its members into individuals without moral standards. (shrink)

Individual scapetribing is identified as pointing the finger of blame at organizations (or groups, institutions, and systems) as a means of excusing or inaccurately ascribing responsibility for one's own actions and their consequences. This type of behavior is shown to be related to corporate scape-goating as described by Wilson (1993). The paper addresses responsibility ascriptions and the importance of corporate responsibility as a significantly influential multi-person system.

Large organisations are especially advised to consider the possibility of an Ethics Helpdesk in which all employees and managers can report with all suspected cases of unethical conduct, critical comments, dilemmas and advice for which there is insufficient room within the organisational hierarchy. A helpdesk is a central contact point where it is decided who the most appropriate person is to dealing with a given case. The helpdesk model is characterised by low barriers in its easy accessibility, positive approach and (...) the simple procedures employees need to follow. It offers employees consistent support while relying on the responsibilities of the individual employee as much as possible and it facilitates adequate monitoring and reporting. A helpdesk increases the chances of detecting unethical conduct which enables management to take adequate and timely measures against improper conduct. This article formulates principles, discusses critical factors and considers three models for adopting a sound and integrated ethics safety net. It also presents a case study and shows why organisational openness needs to be institutionalised. (shrink)

This paper draws upon a research study of accountants and HR specialists. The study eschewed hypothetical scenarios and focused upon those situations and scenarios that the interviewees defined as causing them ethical concerns. There are two distinct but related issues arising from the paper. The first is that the singular categorisations of moral reasoning attributed to individuals when faced with hypothetical scenarios by many who write on the issue of moral reasoning, did not correspond to the fluidity in moral choices (...) faced by the interviewees as they experienced their unfolding moral dilemmas. The second issue relates to the unwillingness of the interviewees to give voice to their concerns, not only externally, but also within their employing organisations. The tensions within the two cases featured were held in check only by the diminution of the autonomy of the two principal actors. As a consequence, the exercise of moral agency was denied. (shrink)

Since the introduction of the U.S. Sarbanes-Oxley Act in 2002 and several other national corporate governance codes, whistleblowing policies have been implemented in a growing number of companies. Existing research indicates that this type of governance codes has a limited direct effect on ethical or whistleblowing behaviour whereas whistleblowing policies at the corporate level seem to be more effective. Therefore, evidence on the impact of (inter)national corporate governance codes on the content of corporate whistleblowing policies is important to understand their (...) indirect impact on whistleblowing behaviour. This study analyzes the contents of whistleblowing policies, and parts of corporate codes of conduct and codes of ethics, describing such policies of 56 leading European companies. By classifying the contents in seven categories, an exploratory framework was created. General contents often identified were: applicability to all employees, a group-wide scope and an authoritative tone. The most common general violations to report were breaches of internal policies and external regulations or laws. The more specific violations most frequently mentioned were criminal offences and dangers to health and safety or the environment. Contacts to report to were the direct or indirect supervisors, a compliance officer or a confidential “hotline” facility. A confidentiality guarantee was common and anonymous reporting was often possible, though sometimes discouraged. Protection against retaliation is stated by ensuring that retaliation will not happen, prohibiting it or making it punishable. The requirement of good faith was frequently given. Finally, investigation of the report was often guaranteed. Surprisingly little information is given on the treatment of whistleblowers reporting an unfounded complaint in good faith, or reporting a violation they were involved in. The study’s findings are most relevant to companies without a whistleblowing policy or those that intend to benchmark their policies, and to pan-European standard setters. (shrink)

This paper draws upon a research study of accountants and HR specialists. The study eschewed hypothetical scenarios and focused upon those situations and scenarios that the interviewees defined as causing them ethical concerns. There are two distinct but related issues arising from the paper. The first is that the singular categorisations of moral reasoning attributed to individuals when faced with hypothetical scenarios by many who write on the issue of moral reasoning, did not correspond to the fluidity in moral choices (...) faced by the interviewees as they experienced their unfolding moral dilemmas. The second issue relates to the unwillingness of the interviewees to give voice to their concerns, not only externally, but also within their employing organisations. The tensions within the two cases featured were held in check only by the diminution of the autonomy of the two principal actors. As a consequence, the exercise of moral agency was denied. (shrink)