Ethical Judgment and Whistleblowing Intention: Examining the Moderating Role of Locus of Control

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 (n = 306). Statistical analysis largely supports the hypotheses, which suggests that an individual's locus of control does moderate the relationship between ethical judgment and whistleblowing.     

Cultural Orientation and Attitudes Toward Different Forms of Whistleblowing: A Comparison of South Korea,Turkey, and the U.K.

This article reports the findings of a cross-cultural study that explored the relationship between nationality, cultural orientation, and attitudes toward different ways in which an employee might blow the whistle. The study investigated two questions – are there any significant differences in the attitudes of university students from South Korea, Turkey and the U.K. toward various ways by which an employee blows the whistle in an organization?, and what effect, if any, does cultural orientation have on these attitudes? In order to answer these questions, the study identified six dimensions of whistleblowing and four types of cultural orientation. The survey was conducted among 759 university students, who voluntarily participated; 284 South Korean, 230 Turkish, and 245 U.K. Although all three samples showed a preference for formal, anonymous and internal modes of whistleblowing, there were significant variations related to nationality and cultural orientation. The findings have some key implications for organizational practice and offer directions for future research.     

The Effects of Compensation Structures and Monetary Rewards on Managers’ Decisions to Blow the Whistle

Recent research indicates that compensation structure can be used by firms to discourage their employees from whistleblowing. We extend the ethics literature by examining how compensation structures and financial rewards work together to influence managers’ decisions to blow the whistle. Results from an experiment indicate that compensation with restricted stock, relative to stock payments that lack restrictions, can enhance the likelihood that managers will blow the whistle when large rewards are available. However, restricted stock can also threaten the effectiveness of whistleblowing systems without the presence of large financial rewards for whistleblowing. Thus, the large potential rewards for whistleblowing enacted by the Dodd–Frank Act appear timely as firms are moving toward compensation agreements that include greater proportions of restricted stock.     

Whistleblowing in Organizations: An Examination of Correlates of Whistleblowing Intentions,Actions, and Retaliation

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.     

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.     

The motivations of external whistleblowers and their impact on the intention to blow the whistle again

The purpose of this study was to inquire into the relative importance of morality, cost‐benefit, and emotion as motivations for the decision to blow the whistle externally, and the effects of such factors as motivations, perceived negative consequences, and preferences for reform on the intention to blow the whistle again. Based on a literature review, we formulated some hypotheses and, to test them, we used the data collected from a survey of 127 external whistleblowers in South Korea. The results revealed that morality was the most important motivation, followed by emotion, and then cost‐benefit, which thus, seemed to be the least important for the whistleblowers. Morality as a motivation and the perceived negative consequences of whistleblowing had a significant effect on the intention to blow the whistle again. This study helps advance the understanding of the motivations behind whistleblowing and the factors that influence the intention to blow the whistle again.     

What can managers do about unethical management?

What can and should we do as managers and administrators when our sense of personal morality is at odds with our organization's behavior? Among the many alternatives are: (1) not think about it; (2) go along and get along; (3) protest; (4) conscientiously object; (5) leave; (6) secretly blow the whistle; (7) publicly blow the whistle; (8) secretly threaten to blow the whistle; (9) sabotage; and, (10) negotiate and build consensus for a change in the unethical behavior. This article considers the advantages and disadvantages of these ten types of strategies based on some philosophy, game theory and everyday pragmatics.     

Whistleblowers in Organisations: Prophets at Work?

This article argues that the study of biblical prophets offers a profound contribution to understanding the experience, role and attributes of whistleblowers. Little is known in the literature about the moral triggers that lead individuals to blow the whistle in organisations or why whistleblowers may show persistence against the harshness experienced as a result of their actions. This article argues that our understanding of the whistleblower??s work is highly informed by appreciating how moral values and norms are exercised by prophets in seeking to become agents for change. This article identifies three core implications that have practical and theoretical relevance. The first concerns how the whistleblowing activity challenges the established order of an organisation as this is comprised of institutional structures, policies and procedures. Institutions display an unusual fragility against the seemingly powerless individual who helps reveal the wrongdoing. By disclosing ??hidden?? knowledge concerning illegitimate intentions and actions, the seemingly powerless individual creates tension that has implications for the stability and order of the organisation. The second implication concerns the degree of social concern and the individual??s interpretation of morality. Whistleblowers, like prophets, display concern for moral values that have implications for the welfare of others, and which they seek to promote through their whistleblowing act. The third implication concerns the importance of agency. By taking a moral stance, the whistleblower assumes an important agentic role facilitating change through his/her intervention. Although such change is sudden and unpredictable it brings about new conditions for the organisation and its members.     

Anonymity and whistleblowing

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.     

The Implications of an Organization's Structure on Whistleblowing

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

Organisational Whistleblowing Policies: Making Employees Responsible or Liable?

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

A preliminary investigation of the relationship between selected organizational characteristics and external whistleblowing by employees

Whistleblowing by employees to regulatory agencies and other parties external to the organization can have serious consequences both for the whistleblower and the company involved. Research has largely focused on individual and group variables that affect individuals' decision to blow the whistle on perceived wrongdoing.This study examined the relationship between selected organizational characteristics and the perceived level of external whistleblowing by employees in 240 organizations. Data collected in a nationwide survey of human resource executives were analyzed using analysis of variance.Results indicated that executives of larger organizations perceived a higher level of employee-voiced concerns to the Equal Employment Opportunity Commission and the Occupational Safety and Health Administration, as well as a higher overall level of external whistleblowing. Executives of organizations with union employees perceived a higher level of employee-voiced concerns to the EEOC, the media, and a higher overall level of external whistleblowing. Executives of organizations in the manufacturing industry group perceived a higher level of employee-voiced concerns to the Occupational Safety and Health Administration.The implications of these findings are discussed, and limitations of the research are addressed. The paper concludes with several suggestions for continued research.Tim Barnett is an Assistant Professor of Management at Louisiana Tech University. His current research interests include ethical issues in human resources management and ethical decision making. His work has appeared in various journals, including theJournal of Business Research, theJournal of Business Communication, and theJournal of Business Ethics.     

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.     

Whistleblowing Intentions Among Public Accountants in Indonesia: Testing for the Moderation Effects

Our study contributes by providing new insights into the relationship between the individual levels of the antecedents and how the intention of whistleblowing is moderated by perceived organizational support (POS), team norms (TNs), and perceived moral intensity (PMI). In this paper, we argue that the intention of both internal and external whistleblowing depends on the individual-level antecedents [attitudes toward whistleblowing, perceived behavioral control, independence commitment, personal responsibility for reporting, and personal cost of reporting (PCR)] and is moderated by POS, TNs, and PMI. The findings confirm our predictions. Data were collected using an online survey on 256 Indonesian public accountants who worked in the audit firm affiliated with the Big 4 and non-Big 4. The results support the argument that all the antecedents of individual levels can improve the auditors’ intention to blow the whistle (internally and externally). The nature of the relationship is more complex than analysis by adding moderating variables using the Partial Least Squares-Structural Equation Modeling approach. We found that POS, TNs, and PMI can partially improve the relationship between the individual-level antecedents and whistleblowing intentions. These findings indicate that the POS, TNs, and PMI are a mechanism or that attribute is important in controlling behavior.     

Perceptions of Business Ethics in a Multicultural Community: The Case of Malaysia

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.     

Culture and Whistleblowing An Empirical Study of Croatian and United States Managers Utilizing Hofstede's Cultural Dimensions

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.     

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.     

To Blow or not to Blow: An Experimental Study on the Intention to Whistleblow on Software Piracy

Using the Behavioral Reasoning Theory, we examine the factors that determine individuals' attitudes toward and intentions to whistleblow on the use of pirated software. A scenario-based experiment was conducted to investigate the effects of the relationship between the potential whistleblower and wrongdoing party as well as the monetary incentive and the level of legal protection provided to the whistleblowers. Results suggest that the relationship with the company and legal protection had moderating effects on the relationship between whistleblowing attitude and intention. The study provides theoretical understanding regarding whistleblowing behavior in the context of software piracy as well as numerous managerial implications for the stakeholders of the software industry.     

Dissolving the Moral Dilemma of Whistleblowing

The ethical debate on whistleblowing concerns centrally the conflict between the right to political free speech and the duty of loyalty to the organization where one works. This is the moral dilemma of whistleblowing. Political free speech is justified because it is a central part of liberal democracy, whereas loyalty can be motivated as a way of showing consideration for one’s associates. The political philosophy of John Rawls is applied to this dilemma, and it is shown that the requirement of loyalty, in the sense that is needed to create the moral dilemma of whistleblowing, is inconsistent with that theory. In this sense, there is no moral dilemma of whistleblowing. This position has been labelled extreme in that it says that whistleblowing is always morally permitted. In a discussion and rejection of Richard De George’s criteria on permissible whistleblowing, it is pointed out that the mere rejection of loyalty will not lead to an extreme position; harms can still be taken into account. Furthermore, it is argued that the best way is, in this as in most other political circumstances, to weigh harms is provided by the free speech argument from democracy. Lars Lindblom is a Ph D. student in philosophy at the Royal Institute of Technology, Stockholm, Sweden. He has worked as a business ethics consultant and has written on efficency, workplace inspections and business ethics.