The Impact of Culture on the Efficacy and Fairness of Whistleblowing: A Contrast Between Brazil and the United States

The possibility of denouncing malpractice at corporations listed on the US stock exchange is a relatively recent requirement as promoted by the US Sarbanes‐Oxley 2002 Act. This organizational alert mechanism acts as a tool for fostering the exercise of control within a structured entity. However, a study in Brazil revealed that the anonymous whistleblowing mechanisms were occasionally utilized for maligning someone when use of the instruments was significantly restrained. This article examines the critical decisions made by the top‐level executives (headquarters) to effectively control subsidiaries and particularly with regard to hotlines that allow whistleblowing and its overall impact on organizational climate using Brazil as a case study. © 2015 Wiley Periodicals, Inc.