Value Orientations as Determinants of Preference for External and Anonymous Whistleblowing

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.     

Predictors of External Whistleblowing: Organizational and Intrapersonal Variables

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.     

Religiosity,ethical ideology,and intentions to report a peer's wrongdoing

Peer reporting is a specific form of whistelblowing in which an individual discloses the wrongdoing of a peer. Previous studies have examined situational variables thought to influence a person's decision to report the wrongdoing of a peer. The present study looked at peer reporting from the individual level. Five hypotheses were developed concerning the relationships between (1) religiosity and ethical ideology, (2) ethical ideology and ethical judgments about peer reporting, and (3) ethical judgments and intentions to report peer wrongdoing.Subjects read a vignette concerning academic cheating, and were asked to respond to a question-naire concerning the vignette. Data were analyzed using structural equation methodology.Results indicated that religiosity was positively associated with an ethical ideology of non-relativism. Individuals whose ethical ideologies could be described as idealistic and non-relativistic were more likely to state that reporting a peer's cheating was ethical. In turn, individuals who believed reporting a peer's cheating was ethical were more likely to say that they would report a peer's cheating. Tim Barnett is Assistant Professor of Management at Louisiana Tech University. He has authored or coauthored articles appearing in Human Relations, Personnel Psychology, the Journal of Business Research, and the Journal of Business Ethics, among others. His current research interests include whistle-blowing and the ethical decision making process. Ken Bass is Assistant Professor of Management at East Carolina University. He has published articles in journals including the Journal of Personal Selling and Sales Management and the Journal of Business Ethics. His research interests include ethical decision making, ethical strategy, and methodology. Gene Brown is Professor of Marketing at Louisiana Tech University, and received the Ph.D. from the University of Alabama. He has published in a variety of journals including the Journal of Marketing Research, the Journal of Business Research, the Journal of Business Ethics, and the Journal of the Academy of Marketing Science. His research intersts include personal selling, retailing, ethics, and methodology.     

After the wrongdoing: What managers should know about whistleblowing

Most of us are likely at some point to observe wrongdoing in our organizations, and some of us will blow the whistle to someone with the authority to put a stop to the wrongdoing. Or we may be managers, inspectors, or auditors who serve as the official ‘complaint recipient’ when one of our colleagues wants to report wrongdoing in the organization. Whether we blow the whistle or are tasked with cleaning up after someone else does so, we are better off knowing in advance how the whistleblowing process usually plays out. In this article we discuss the pragmatic implications of 30 years of systematic research about whistleblowing: who does it and when, and why they choose to report the wrongdoing internally (within the organization) or externally (to outsiders). To avoid external whistleblowing, which entails all sorts of costs for the organization, we recommend that managers take clear steps: investigate the allegations, make the results of the investigation known to those affected, correct the problem if one is found, and avoid reprisal against whistleblowers. These actions can increase the chance that information about organizational wrongdoing stays inside the organization, where it may be remedied, instead of being made public.     

Wrongdoing by Consultants: An Examination of Employees’ Reporting Intentions

Organizations are increasingly embedded with consultants and other non-employees who have the opportunity to engage in wrongdoing. However, research exploring the reporting intentions of employees regarding the discovery of wrongdoing by consultants is scant. It is important to examine reporting intentions in this setting given the enhanced presence of consultants in organizations and the fact that wrongdoing by consultants changes a key characteristic of the wrongdoing. Using an experimental approach, the current paper reports the results of a study examining employees reporting intentions subsequent to their discovery of wrongdoing by a consultant. The results of the study indicate that perceptions about the seriousness of a wrongdoing, personal costs and personal responsibility related to reporting a wrongdoing, and moral-equity judgments are significantly associated with reporting intentions for a normal (non-anonymous) reporting channel. Only perceptions of seriousness and personal costs are significantly associated for an anonymous reporting channel. Lastly, while personal costs for the anonymous reporting channel were lower than the normal reporting channel, reporting intentions were similar across the two channels.Susan Ayers is an Associate Professor of Accounting at the University of San Diego, where she has been a faculty member since 2000. Previously, she served on the faculty at the University of Tennessee in Knoxville. She received her Ph.D. from Arizona State University. She has published in journals such as Auditing: A Journal of Practice Theory, Accounting Horizons, Information Systems Audit and Control Journal, and ABACUS. She teaches undergraduate and graduate classes in Accounting Information Systems. Her primary research interests involve the investigation of judgment and decision making in information systems environments. Steve Kaplan is a Professor of Accounting at Arizona State University, where he has been a member of the faculty since 1981. He received his Ph.D. from the University of Illinois. He has published widely in journals such as The Accounting Review, Journal of Accounting Research, Journal of Accounting and Public Policy, Business Ethics Quarterly, and Journal of Business Ethics. He is the previous editor of Behavioral Research in Accounting, a section journal of the American Accounting Association. His primary research interests are behavioral issues, judgement and decision making, and ethics.     

Risk, Information, and the Decision about Response to Wrongdoing in an Organization

Response to wrongdoing is modeled as a decision process in an organizational context. The model is grounded in theory of risk, ambiguity, and informational influences on decision making. Time pressure, inadequate information and coworker influences are addressed. Along the way, a handful of propositions are provided which emphasize influences on the actual choice between response options.     

Let the Story Go: The Role of Emotion in the Decision-Making Process of the Reluctant, Vulnerable Witness or Whistle-Blower

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.     

Decent Work: The Moral Status of Labor in Human Resource Management

Historically, whistleblowing research has predominantly focused on psychological and organisational conditions of raising concerns about alleged wrongdoing. Today, however, policy makers increasingly start to look at institutional frameworks for protecting whistleblowers and responding to their concerns. This article focuses on the latter by exploring the roles that trade unions might adopt in order to improve responsiveness in the whistleblowing process. Research has consistently demonstrated that the two main reasons that deter people from reporting perceived wrongdoing are fear of retaliation and a belief that the wrongdoing is unlikely to be rectified. In this article, we argue that trade unions have an important part to play in dealing with both these inhibiting factors but this requires them to be appropriately engaged in the whistleblowing process and willing to take a more proactive approach to negotiations. We use Vandekerckhove’s 3-tiered whistleblowing model and Kaine’s model of union voice level to structure our speculative analysis of the various ways in which trade unions can interact with whistleblowers and organisations they raise concerns about alleged wrongdoing in, as well as agents at a regulatory level. Our articulation of specific roles trade unions can play in the whistleblowing process uses examples from the UK as to how these trade union roles are currently linked to and embedded in employment law and whistleblowing regulation.     

The Effects of Contextual and Wrongdoing Attributes on Organizational Employees’ Whistleblowing Intentions Following Fraud

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.     

From Inaction to External Whistleblowing: The Influence of the Ethical Culture of Organizations on Employee Responses to Observed Wrongdoing

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.     

Ethical Codes of Conduct and Organizational Context: A Study of the Relationship Between Codes of Conduct, Employee Behavior and Organizational Values

Codes of ethics are being increasingly adopted in organizations worldwide, yet their effects on employee perceptions and behavior have not been thoroughly addressed. This study used a sample of 613 management accountants drawn from the United States to study the relationship between corporate and professional codes of ethics and employee attitudes and behaviors. The presence of corporate codes of ethics was associated with less perceived wrongdoing in organizations, but not with an increased propensity to report observed unethical behavior. Further, organizations that adopted formal codes of ethics exhibited value orientations that went beyond financial performance to include responsibility to the commonweal. In contrast to corporate codes of ethics, professional codes of ethical conduct had no influence on perceived wrongdoing in organization nor these codes affect the propensity to report observed unethical activities.     

Ethical Marginality: The Icarus Syndrome and Banality of Wrongdoing

This study proposes a conceptual model to explain persistent, accepted-as-normal corporate wrongdoing (hereafter banality of wrongdoing), particularly for high performance organizations. The model describes five explanatory variables: the culture of competition, ends-biased leadership, missionary zeal, legitimizing myth, and the corporate cocoon. Our thesis is that the nature of competition drives both legitimate and illegitimate goal-seeking to adopt an iconoclastic (rule-breaking) orientation. High performance organizations are favorable hosts for wrongdoing because high performance requires aggressive behavior at the ethical margins of what is acceptable. The way leadership reacts to competition sets the stage for ethical or unethical cultures to develop. Ends-biased leadership will project strong vision, using ideology and legitimizing myth as tools to inspire and motivate. The resulting missionary zeal justifies using questionable means because of the perceived value of the end. One critical method for building strong culture is creating a sense of being separate and apart from the ordinary. This cocoon effect may create a self-referential value system that is significantly at odds with mainstream culture and in which wrongdoing is banal. We intend an empirical study of the variables described in this model.     

Prediction of Whistleblowing or Non-reporting Observation: The Role of Personal and Situational Factors

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.     

非营利组织财务预警系统及其功能

非营利组织产生财务危机的原因是多方面的,既可能是组织经营者决策失误,也可能是管理失控,还可能是外部环境恶化等。应建立非营利组织财务预警系统,对组织的财务运营过程进行跟踪、监控,及早地发现财务危机信号,着手应变,以避免或减少对组织的破坏,促进非营利组织的健康发展。从而为我国实现全面建设小康社会、“和谐社会”的战略目标提供支持。     

Going the (Ethical) Distance

Nearly every day we participate in the vast, interconnected global economy. In doing so, we engage in chains of transactions that ultimately result in our benefiting from, or enabling, wrongdoing by others. In some cases this seems to be in itself wrong, but in many cases it seems unproblematic. I develop a concept of ‘ethical distance’ and argue that our responsibility for the wrongdoing of others is a function of our ethical distance from it. Furthermore, I argue that the concept of moral responsibility is vague, but that when we become clearly responsible for wrongdoing by others, we ought to sever our connection to it.     

Consideration of Moral Intensity in Ethicality Judgements: Its Relationship with Whistle-blowing and Need-for-Cognition

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.     

Sustainable corporate entrepreneurship: Evolving and connecting with the organization

Corporate entrepreneurship necessarily entails both risk and high levels of uncertainty; yet, established organizations are typically positioned as efficient engines that function best via cautious and routine progress, which can hinder attempts to inject innovative ideas into mature businesses. As such, conscious effort is required to build a corporation's capacity for sustainable entrepreneurship. While a few exceptional companies have built and maintained an enduring capability for entrepreneurship, the majority of firms possess a general resistance to these initiatives. Commitment to entrepreneurship may cycle between high or moderate support for the activity, to floundering interest or disbanded initiatives, as conditions in the internal and external environment shift. This cycling pattern, unfortunately, prevents the development of enduring capabilities. Herein, it is revealed how companies can progress their entrepreneurial capabilities over time, adjusting and improving them as the firm learns and adapts to change. To accomplish this, companies must develop strategic objectives to guide entrepreneurs, a management structure to support their work, and processes that inform assessment and decision making. Through an Evolve and Connect model, these three contexts can adjust to shifts in the external environment and the changes and progress happening within the organization. Over time, however, managers need to maintain a link between entrepreneurial activity and the organization's mainstream.     

Whistleblowing in a changing legal climate: is it time to revisit our approach to trust and loyalty at the workplace?

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.     

内部控制披露:争论与思考——兼对SOX内部控制强制性披露的反思

SOX法案的颁布引发了各国监管机构对内部控制及披露制度的强烈关注,其中很多争议性问题一直延续至今,严重阻碍了内部控制披露规范的统一性。在财务报告监管系统中,不同的控制机制之间存在替代或补充作用,只有充分发挥各种机制间的协同性,才能更好地防范公司造假,保障财务报告的可靠性,并能分散系统中的制度风险。SOX404条款对内部控制披露制度的部分设计破坏了这种协同性,违背了制度设计的初衷,也导致了实务的混乱。未来内部控制披露制度的完善必须考虑财务报告系统内机制设计的协同性。     

Internal vs. External Whistleblowers: A Comparison of Whistleblowering Processes

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.