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Strengthening the effectiveness of whistleblowing system: A study for the implementation of anti-corruption policy in Indonesia
Abstract
Purpose
The purpose of this paper is to identify and map out various aspects and key elements, which are necessary to strengthen an effective and systematic whistleblowing system (WBS) and ensure adequate protection in accordance with the characteristics typical of Indonesia.
Design/methodology/approach
This research emphasizes the extensive use of literature review and previous research that analyze whistleblowing as an issue and ethical challenge in public institutions. This research also reviews documents pertaining to the formulation and implementation of existing WBS. Additionally, this research also analyzes some cases experienced by a number of whistleblower figures in Indonesia as a contribution and recommendation to parties interested in formulating a more effective and systematic WBS.
Findings
An effective and systematic WBS, assuring adequate protection, needs a number of key elements which will be identified and mapped out in this research and, subsequently, categorized into several aspects covering human and ethical culture; policy; legal protection; organizational structure; and procedures and process in accordance to Indonesia’s specific characteristics.
Practical implications
The paper can be a source to explore anti-corruption policy and the prevention approach of corruption based on Indonesian perspectives.
Originality/value
This paper is a significant undertaking aimed at raising public trust in public institutions and providing adequate protection to whistleblowers. It also contributes by encouraging the public organization to prevent corruption and other wrongdoing, which, nowadays, are common in Indonesia.
... Acts of fraud that occur throughout the world, both in the business and public sectors, make organizations place a focus not only on efforts to answer and handle every incident but also to detect and prevent fraudulent practices (Nurhidayat & Kusumasari, 2018). Corruption is an act of fraud that is classified as an extraordinary crime. ...
... After ratifying the 2003 Anti-Corruption Convention in New York, the paradigm of Indonesia's anti-corruption strategy should ideally not only emphasize a repressive approach but also shift to a detective and preventive approach (Nurhidayat & Kusumasari, 2018). Indonesian Fraud Survey Report from the Association of Certified Fraud Examiners (ACFE) Indonesia Chapter (2019) stated that prevention efforts should be more focused as the main and most effective means of preventing fraudulent practices in the government sector, which is the sector most disadvantaged by fraudulent practices. ...
... Basri et al. (2017), are aware that whistleblowing can prevent fraudulent acts and minimize the problems and losses associated with fraud. In addition, whistleblowing can also increase employee morale, and work efficiency, and minimize the negative stigma that surrounds an organization (Nurhidayat & Kusumasari, 2018). Miceli & Near (1984), states that whistleblowing actions can be associated with prosocial theory because whistleblowing is a form of prosocial action by members of the organization to convey directions, actions or policies which he thinks may be unethical, illegal, or disastrous for the long-term goals of the organization to individuals or other bodies who have a position to take corrective action. ...
The purpose of this study is to examine and provide empirical evidence of the effect of personal cost, professional commitment, and seriousness of wrongdoing on whistleblowing intention, as well as the impact of legal protection in influencing as a moderating variable. The populations of this study are civil servants (ASN) from the Directorate of Construction Services Procurement, the Directorate General Of Construction Development in Ministry of Public Works and Housing (MPWH). The sample of this study are 90 respondents, obtained using a saturated sampling technique. The questionnaire data of this study are analyzed using the Statistical Package for Social Sciences (SPSS). The result shows that civil servants consider their personal cost and the seriousness of wrongdoing as they intend to blow the whistle. Yet, the study finds that professional commitment does not affect civil servant’s whistleblowing intention. The study also finds that legal protection is only able to moderate the effect of personal cost and professional commitment on whistleblowing intention and is unable to moderate the seriousness of wrongdoing. These findings help to obtain insight regarding the policy that can improve whistleblowing intention.
... Witness is someone who sees, hears or experiences the violation committed by the reported party and is willing to provide information before a court hearing; while reporter or whistleblower is a person who reports a violation but he / she may not see or hear the conduct of the violation himself but has evidence in the form of records, pictures, etc. that a violation has occurred (KNKG, 2008: 4). Nurhidayat and Kusumasari (2018) argue that from the very beginning of its emergence, whistleblowing has been a behavior based on ethical issues. In other words, it is related to ethical behavior. ...
... Pamungkas et al. (2017) defines ethical behavior as the suitainability of one's behavior/ actions, generally complied with correct and good norms so that dignity and respect increase. According to Nurhidayat and Kusumasari (2018), the ethical values that underlie whistleblowing are the values of integrity, transparency, public interests protection, and rejection of any deviations from the rules of conduct and code of ethics. Furthermore, whistleblowing which is an ethical dilemma can be described as to the following: where an individual is faced with two options, that is, maintaining the integrity of an individual and being a member of an organization whose loyalty is demanded to protect the wider public interest. ...
... According to Nurhidayat and Kusumasari (2018), based on their research conducted in Indonesia, developing a more effective and systematic whistleblowing system is deemed necessary and urgent to develop good governance and create integrity in all public institutions in Indonesia. In addition, the whistleblowing system must also provide more guarantees of protection by considering and including key elements categorized into several aspects that include human culture and ethics, policy, legal protection, and organizational structure as with processes and structures that are aligned with special/ appropriate characters in Indonesia. ...
This article discusses whistleblowing and fraud in the digital era in Indonesia using a literature study. Digital whistleblowing allows someone to reveal a number of information accompanied by photos/ videos through social media/ other online sources. This information is investigated further to find out if there is fraud after checking the truth, because there is a possibility that the information is inaccurate. The absence of a checking process and confirmation of its truth causes inaccurate information. The case that occurred in one of the SOEs in Indonesia initially emerged from a tweet on a Twitter account which was finally able to uncover the alleged fraud in terms of abuse of office. This is an example of the role of technology in digital whistleblowing and fraud. Digital technology can detect if there is a change in the softcopy file through the recorded digital footprint and then submit it to the authorities so that they can track the identification of previous users related to the possibility of document leakage. Artificial Neural Network (ANN) which is part of artificial intelligence (AI) technology can be used to detect fraud. ANN is a system that is able to process complex amounts of data through pattern recognition. There has been much discussion about the use of information technology in Indonesia, but the use of ANN has not been much discussed.
... Understanding the principles of good corporate governance and ethical standards is important, including implementing a whistleblowing system (Ciasullo et al., 2017). The system makes companies more transparent because they can follow applicable rules, correct procedures, and established guidelines according to regulations (Nurhidayat & Kusumasari, 2018). The whistleblowing system formed in the company becomes a means of controlling the value created and anticipating fraud (Lee & Xiao, 2018). ...
... By implementing an effective whistleblowing system, organizations can prevent harm to the public, protect their reputation, and foster a culture of ethical behavior (May-Amy et al., 2020). Actions in the whistleblowing system rely on the values of integrity, transparency, and protection of public interests, so there is an increase in the rejection of behavioral deviations and applicable codes of ethics and regulations (Nurhidayat & Kusumasari, 2018). Whistleblowing ensures that companies follow existing regulations and can prevent illegal, immoral, and illegitimate practices (Smaili, 2021;Wijayanti et al., 2024;Manesh et al., 2024). ...
Managers always strive to produce increased profitability by building systems in the company to be efficient and effective. Good corporate governance is formed in companies by increasing the role of supervise independent commission. This research aims to analyze the influence of good corporate governance on financial performance by using the whistleblowing system as a moderating variable. This research uses research samples from companies included in the LQ45. The research results state that good corporate governance with independent commissions positively affects financial performance. This condition can be seen from the increasing role and function of supervisors not affiliated with the company. Second, good corporate governance with an independent commission supported by the whistleblowing system can strengthen the impact of good corporate governance on financial performance. Third, the whistleblowing system established in companies has not been able to play a direct role in improving financial performance because there is still no system established in companies, and there are no government regulations to protect employees who disclose violations. Research provides practical contributions for governments and company managers to form adequate independent commissions because it can produce increased financial performance.
... However, there are still parties who are not responsible for managing and allocating these funds according to their goals. These irresponsible actions can be the beginning of fraud because they aim to gain individual or group profits (Nurhidayat & Kusumasari, 2018). Based on a survey conducted by ACFE in 2019 in Figure 1, it was concluded that the most common fraud committed in Indonesia was corruption which had caused significant losses to the country. ...
... The theory of planned behavior (TPB) sindicated by Ajzen (1991 public information as an objection or complaint to the appropriate authorities (Nurhidayat & Kusumasari, 2018). ...
This study aims to empirically examine the effect of employee competence (KP), organizational commitment (OCM), personal cost (PC), and legal protection (LP) on whistleblowing. Whistleblowing is a system that can be used to report fraud that occurs based on accurate facts and evidence. This study uses primary data in the form of questionnaires distributed online and directly. The samples of this study were principals, vice principals, teachers, and staff of public and private high schools in 5 sub-districts of Yogyakarta City, namely Gondokusuman, Umbulharjo, Gondomanan, Kotagede, and Tegalrejo sub-districts. The data analysis method used is Structural Equation Modeling (SEM). The results of this study obtained 263 respondents and showed that employee competence does not affect whistleblowing, while organizational commitment, personal cost, and legal protection affect whistleblowing. This means that high school employees in the Yogyakarta City neighborhood already have the intention of whistleblowing. It is recommended that officials can improve facilities for employees to carry out whistleblowing if needed by more easily reducing risk (personal cost).
... Thus, a special prosecutor will be free from political influence to investigate allegations of misconduct and prosecute government officials who have committed misconduct themselves. The Indonesia Corruption Eradication Commission (Komisi Pemberantasan Korupsi -KPK), for example, with authority to investigate and prosecute corruption cases, has significantly reduced and controlled corruption (Nurhidayat and Kusumasari, 2018). For example, 13 years after the establishment of the KPK, at least 17 governors, 50 regents/ mayors, 14 judges, 121 legislators, and hundreds of high-ranking officials were imprisoned on corruption charges (KPK, 2016, Nurhidayat andKusumasari, 2018). ...
... The Indonesia Corruption Eradication Commission (Komisi Pemberantasan Korupsi -KPK), for example, with authority to investigate and prosecute corruption cases, has significantly reduced and controlled corruption (Nurhidayat and Kusumasari, 2018). For example, 13 years after the establishment of the KPK, at least 17 governors, 50 regents/ mayors, 14 judges, 121 legislators, and hundreds of high-ranking officials were imprisoned on corruption charges (KPK, 2016, Nurhidayat andKusumasari, 2018). The separation of the KPK from the executive branch of the Indonesian government has had a significant impact on those prosecuted figures. ...
Corruption, as a concept, is widely held to erode government legitimacy and the commitment of political actors and civil workers to serve the public. As a result, several countries are attempting to combat corruption through legislative reform and the establishment of anti-corruption institutions. Ghana, for example, established an Office of the Special Prosecutor (OSP) in 2018 to provide new chances to combat corruption and strengthen Ghana’s constitution-enshrined accountability. Indeed, some Ghanaians see the OSP as a cure-all for the country’s corruption. However, law reforms and new organisations established to combat corruption frequently fail to provide credible outcomes. Are there any contextual or systemic factors that could affect the OSP’s effectiveness to combat corruption in Ghana? Using a face-to-face qualitative interview, this article examines perceptions of officials in Ghana’s criminal justice and anti-corruption agency. The findings indicated that political interferences and resource constraints are critical elements affecting the OSP’s operation and effectiveness. The most important takeaway from this study is that instead of enacting new laws and establishing new offices, authorities should strengthen existing institutions through adequate resourcing and legal empowerment. Furthermore, a special prosecutor’s office should be established and empowered to deal with corruption without external interference.
... The whistleblowing system is one of tools to prevent fraud and support fraud reporting using information technology (Fieger & Rice, 2018). Research of Nurhidayat and Kusumasari (2018) explains the condition of whistleblowing system in Indonesia that although a country has implemented a safe regulation and protection scheme for fraud reporters, it still needs a means of transparency for retaliation from the fraud perpetrator might happen (Fieger & Rice, 2018). The KPK and the Witness and Victim Protection Agency (LPSK) collaborated in the implementation of whistleblowing system in the Indonesian ministries as one of efforts to uncover fraud. ...
... Indonesia needs to have an optimal and sustainable and transparent and multifunctional model of fraud prevention called Whistleblowing System (Kartini, 2018). Nurhidayat and Kusumasari (2018) explain that in developing of whistleblowing system in Indonesia needs to pay attention to aspects of legal protection for reporters; sufficient policies and ethics for whistleblowers to feel safe; easily accessed reporting channels for fraud reporters; and information that is used by management for verification of reporting which needs to be filtered and addressed to people who are authorized for follow-up processes. Syamsuddin (2017) explains that Indonesia needs support from employers and auditors regarding the implementation of whistleblowing system because it needs re-learning about the culture of corruption and replacing it gradually with knowledge about of the risk of corruption in the government. ...
... Ariyanti et al. (2023) (9) argue that while whistleblower testimonies are crucial for anti-corruption efforts, existing regulations provide limited safeguards against retaliation, leaving whistleblowers vulnerable to both professional and personal repercussions. This analysis aligns with Nurhidayat et al. (2017), (10) who suggest that enhancing Indonesia's legal protections for whistleblowers could significantly bolster anti-corruption measures. Both studies underscore the need for reforms that establish clear protection mechanisms for whistleblowers to foster a culture of openness in reporting misconduct. ...
Introduction: accountants and auditors are entrusted to maintain high levels of integrity and independence in the practice of their profession. Whistleblowing is a critical aspect on fraud reporting disclosing financial irregularities in the governance and financial management of an institution. The study aims to provide evidence on the internal-external whistleblowing intentions among accountants and auditors in the Philippines and Indonesia, and identify what factors will influence them in reporting the violations they uncover. Method: the samples tested are accountants/auditors from the Directorate General of Taxes (DJP) of the Ministry of Finance (Kemenkeu) in the DKI Jakarta area and Certified Public Accountants and/or auditors from the Philippines. Quantitative analysis originating from the results of questionnaire data processing were employed in this study. Purposive sampling of sixty-four accountants/auditors of the Directorat General of Taxes in Indonesia and sixty-four practicing accountants/auditors in the Philippines were used in this study. Results: the study shows that attitude and independence commitment have a significant relationship to the internal-external whistleblowing intentions of accountants and auditors in the Philippines. On the other hand, rationalization significantly affects only the external whistleblowing intentions of the Philippine accountants/auditors. Religiosity has no significant correlation to whistleblowing intentions in the Philippines. Attitude, rationalization, and religiosity have a significant impact on the intentions of Indonesians to blow the whistle towards authorities. Independence commitment does not show a significant relationship with external whistleblowing intentions. Conclusions: the intentions to report fraudulent acts among accountants and auditors from both countries vary on the aspect of religiosity.
... The whistleblowing system described in this study proves that the guarantee of confidentiality of reporter data and the clarity of follow-up to the report results can influence individuals to decide whether to report fraud or not. These results support the findings of Nurhidayat and Kusumasari (2018), who stated that an effective and systematic WBS, which guarantees adequate protection, needs to be considered by companies in designing a fraud reporting system. Emotional conditions described by good past experiences related to whistleblowing and an unemotional personality can have a different impact on accounting students in reporting fraud compared to bad emotional conditions related to whistleblowing and an emotional personality. ...
This research aims to test students' understanding of fraud cases using the persuasion elaboration model, namely the influence of argument framing, source credibility, and emotional condition on the decision to reveal fraud. This research method uses a 2x2x2 online laboratory experiment between subjects with 127 accounting students from Universitas Hayam Wuruk Perbanas. The results showed that the argument framing (positive vs. negative) did not make a significant difference. In contrast, source credibility (high vs. low) and emotional condition (good vs. bad) made a significant difference in accounting students' decisions to reveal fraud. This research contributes to behavioral accounting theory developed with communication science in predicting the behavior of prospective accountants. ABSTRAKPenelitian ini bertujuan untuk menguji pemahaman mahasiswa atas kasus kecurangan menggunakan model elaborasi persuasi, yaitu pengaruh pembingkaian argumen, kredibilitas sumber, dan kondisi emosi terhadap keputusan mengungkapkan kecurangan. Metode penelitian ini menggunakan eksperimen laboratorium online antar subjek 2x2x2 dengan partisipan sebanyak 127 mahasiswa akuntansi Universitas Hayam Wuruk Perbanas. Hasil penelitian menunjukkan bahwa pembingkaian argumen (positif vs negatif) tidak memberikan perbedaan yang signifikan, sedangkan kredibilitas sumber (tinggi vs. rendah), dan kondisi emosi (baik vs. buruk) memberikan perbedaan yang signifikan dalam keputusan mahasiswa akuntansi mengungkapkan kecurangan. Penelitian ini berkontribusi pada teori akuntansi keperilakuan yang dikembangkan dengan ilmu komunikasi dalam memprediksi perilaku calon akuntan.
... According to studies, implementing whistleblowing mechanisms in SOEs such as PT JR, PT Asuransi, and PT Pertamina TBBM Baubau has improved fraud detection (Gita et al., 2023). The research underlines the significance of effective corporate governance and the function of whistleblower mechanisms in avoiding fraud inside these organizations (Ilham and Bevaola, 2017). The audit committee and internal audit have been proven to affect the deployment of whistleblower systems in Indonesia, emphasizing the importance of internal control mechanisms (Suyatno et al., 2017). ...
... To the above, there have been many scandals of audit malpractice and ethical violations by auditors who work as public accountants in Indonesia, which have harmed many parties. Cases of ethical violations should not occur if every accountant has the knowledge, understanding, and willingness to apply moral and ethical values adequately to implement his professional work (Nurhidayat and Kusumasari, 2018). Public accountants have not fully obtained sufficient and appropriate audit evidence to assess the appropriateness of accounting treatment according to the substance of the transaction from the underlying agreement (Kok and Maroun, 2020). ...
The purpose of this study was to ascertain the effect of a firm's capital components on its performance, including supply chain design, intellectual capital, and capital structure, which increases firm value between 2020 and 2023. A total of 385 were used as test objects from findings in the field by grouping 65 samples. It can be concluded that the findings are that intellectual and structural capital is an important factor in creating company performance and providing value creation for the company; this is a good issue for investors. Since investors recognised the importance of skilled human resources capable of successfully managing the business and establishing positive relationships with external parties, financial performance has not been shown to mediate the effect of intellectual capital on creating firm value. Simultaneously, capital from the structure impacts the company and company value directly and through the mediation of the company's financial performance. The important issue of structural capital is the level of security of trading capital, which is important for prospective investors.
... The findings of this study are consistent with those of (Viva, 2022) and (Nurhidayat & Kusumasari, 2018), who concluded that there is insufficient evidence to support a correlation between CEO education and company value. The lack of influence may be attributed to the time interval between the CEO's degree completion and their appointment to their position, as the benefits of education may diminish over time. ...
This study aims to determine the effect of CEO education, CEO tenure, company risk, and environmental performance on company value. This research used a purposive sampling method with the following criteria: the companies must not be delisted or suspended by the IDX, they must have complete background financial statement data and additional information regarding the educational background and tenure. The 294 samples observed in this research came from 116 companies listed on the Indonesia Stock Exchange that have an environmental management assessment (PROPER) report for the period 2018 – 2020. The research data were collected through the Indonesia Stock Exchange website, the company’s website, and the PROPER report issued by Indonesia’s Ministry of Environment and Forestry. SPSS 27 was used to process the data. The research found that CEO tenure has a negative effect on company value, while environmental performance positively affects company value. However, CEO education and company risk do not have a significant effect on company value. This research provides managerial contributions to investors and management, suggesting that they need to pay attention to aspects of CEO tenure and environmental performance because these factors were responded to by the market.
... Without worrying about information being extensively disseminated to the public, managers can tackle internal issues using WBS (Siregar et al., 2022). This benefit can assist management in upholding the company's positive reputation (Nurhidayat & Kusumasari, 2018). ...
This study examines and analyses the impact of pressure, opportunity, rationalization, capability, ego, and collusion on financial statement fraud. Testing of the whistleblowing system variable is a moderating variable in the relationship between the fraud hexagon theory variable and financial statement fraud. Purposive sampling resulted in a total of 120 observation data. Data was collected from annual and sustainability reports from 68 state-owned enterprises on the Indonesia Stock Exchange (IDX) in 2019-2022. The data were processed and analyzed using WarpPLS 7.0 software. This research confirms that WBS can reduce the link between pressure and FSF and that pressure directly affects FSF. Any other variables cannot directly or indirectly influence financial statement fraud. The novelty of this research is the whistleblower system variable, which moderates the association between financial statement fraud and the factors of the fraud hexagon theory.
... The results of this survey show that tipping is an effective method of revealing fraud in an organization. Nurhidayat & Kusumasari (2017) in his research explains that an effective whistleblowing system is a system that has five aspects, namely human and ethical culture, policies, legal protection, organizational structure and processes, and procedures. Utami, Jori, & Hapsari (2017) in their research also explain that individuals will disclose fraud when the organization applies a closed reporting line (without identity). ...
... However, this result is in line with Salleh and Yunus (2015). According to Nurhidayat and Kusumasari (2018), whistleblowing is regarded as a positive duty that, if not carried out, will instigate a breach of morality. Therefore, whether management's response was positive or negative, employees will continue to report because it is their duty and responsibility, as well as fulfilling their altruistic motives, to protect the organization from unethical conduct. ...
The objective of this study is to determine the factors influencing whistleblowing intention among public sector employees. This study utilized the Theory of Prosocial Behavior which includes contextual determinants (policy and procedure, training, responsiveness of management, reporting channel, financial reward, seriousness level of wrongdoing) and individual determinants (knowledge, trust) as independent variables while whistle blowing intention is the dependent variable. Additionally, this study also includes gender as a moderating variable in the relationship between the contextual and individual determinants toward whistleblowing intention. The data was collected from 123 public sector employees in the northern region of Malaysia (Perlis, Kedah, Penang) from various ministries via an online survey questionnaire and analyzed using SmartPLS. This study found that there is a significant relationship between all independent variables and whistleblowing intention, except for the responsiveness of management. Additionally, gender was found to be significant in the relationship between several independent variables and whistleblowing intention.
... Corruption has been characterised as an extraordinary crime that is highly dangerous -a systemic crime resulting in high social costs and violating human rights (Handoyo, 2021;Pusat Edukasi Anti Korupsi, 2023;Zulqarnain, Ikhlas, & Ilhami, 2022;Ebekozien, Samsurijan, Amadi, Awo-Osagie, & Ikuabe, 2022). Indonesia has the highest level of corruption among developing countries (Hudiarini, 2021;Nurhidayat & Kusumasari, 2018). Based on data from the corruption perception index, corruption crime in Indonesia is relatively high. ...
Corruption is a bureaucratic disease that has become as entrenched as the common cold, undermining governments globally. Proactive government policies can reduce corruption crimes through prosecution, prevention and education. The Indonesian government has implemented a ‘trident’ corruption eradication policy in educational institutions aiming to shape the attitudes, norms and behaviour of the nation’s younger generation. Unfortunately, the existing literature is limited in assessing the policy output of preventing and eradicating corruption, particularly the effectiveness of anti-corruption education among university students. A policy output evaluation perspective is offered to fill this research gap. This study aims to evaluate the policy output of anti-corruption education in shaping attitudes, norms and behaviour using the theory of planned behaviour. A quantitative approach and survey method were chosen, and a total of 125 respondents participated. The partial least squares algorithm and bootstrapping methods were used to analyse the data. The study’s results reveal that perceived behaviour control, attitude, subjective norm have significant influences on students’ intention. Perceived behaviour control has significant influences on students’ anti-corruption behaviour, though attitudes do not affect students’ anti-corruption behaviour. The findings also show that it has a good level of effectiveness in anti-corruption education policy outputs in achieving policy goals. Our policy recommendations include socialisation about anti-corruption to the community, implementing ideology education and upholding the law on corruption to increase the success of corruption prevention and eradication policies.
... KPK menjadi pusat pengungkapan tindakan ilegal karena KPK merupakan lembaga tertinggi untuk pemberantasan karus korupsi di Indonesia. Namun ada beberapa hal yang perlu dipertimbangkan dalam penerapan Whistleblowing antara lain kategori laporan, bukti pendukung, saluran pelaporan, prinsip anonimitas, pengelolaan informasi AKTIVA Jurnal Akuntansi dan Investasi, Vol 6, No.2, November 2021 oleh tim, dan siapa yang berhak menindaklanjuti laporan (Nurhidayat & Kusumasari, 2018). ...
Whistleblowing is one of the tools used by anti-corruption agencies in Singapore and Indonesia to support the prevention and implementation of an anti-corruption culture. The implementation of Whistleblowing in Indonesia and Singapore has complied with the standard of application, but there are several things that are still obstacles to implementation, including the absence of a law that guarantees the confidentiality of the reporter. This study uses a qualitative descriptive analysis method to explain the differences in the application of Whistleblowing at the KPK and CPIB Singapore corruption eradication institutions. From the results of the study, it can be concluded that CPIB Singapore applies Whistleblowing with complete content and independent application because it has a centralized structure while at the Corruption Eradication Commission, the application of Whistleblowing is not centralized because it is derived from central government institutions and local governments.
... In other words, this may suggest that the participants see the importance of reporting such incidents but do not necessarily perceive the process as enjoyable. The respondents may view whistleblowing as a serious matter due to the prevalence of reprisal and retaliation against whistleblowers (Nurhidayat & Kusumasari, 2017) even if whistleblowing is good. As Alleyne et al. (2017) stated, whistleblowing will improve the workplace, reduce fraud, and increase openness, accountability, and morality. ...
Any fraud or wrongdoing that occurs in the halal food industry can have a severe impact on the safety and integrity of halal food products. Whistleblowing is one of the methods that can be used to combat fraudulent halal food and food safety issues. Some illegal, unsafe, or unethical behaviour may not be discovered by top management or Halal authorities. The safety and integrity of Halal food industry depend on the honesty of the food producers. Hence, whistleblowing is encouraged and should be practiced to counter the possibility of Halal food fraud occurrence. The purpose of this research is to determine the level of whistleblowing intention among employees of Halal certified food manufacturing companies and assess the level of factors influencing this intention (attitude, subjective norm, perceived behavioural control, perceived organizational support, religious obligation, knowledge, personal cost reporting, personal responsibility, and seriousness of wrongdoing). The survey was collected among 210 of employees of Halal certified food manufacturing companies in Selangor via a structured questionnaire. The results revealed that the level of whistleblowing intention among employees is very good and most means scores of the factors influencing employee’s decision to whistleblow are positive and favourable. The low mean score for personal cost reporting suggests minimal perceived personal costs associated with whistleblowing. Recommendations to implement whistleblowing system as food fraud prevention needs to be explored as employees’ intention was positive. Suggestions are also presented to ensure that reporting any wrongdoing within companies has a positive effect in preventing such incident.
... To the above, there have been many scandals of audit malpractice and ethical violations by auditors who work as public accountants in Indonesia, which have harmed many parties. Cases of ethical violations should not occur if every accountant has the knowledge, understanding, and willingness to apply moral and ethical values adequately to implement his professional work (Nurhidayat and Kusumasari, 2018). Public accountants have not fully obtained sufficient and appropriate audit evidence to assess the appropriateness of accounting treatment according to the substance of the transaction from the underlying agreement (Kok and Maroun, 2020). ...
... Moreover, the main requirement for a public servant is to believe in one of the religions recognized by the Indonesian government. Despite requiring citizens to be religious, at least 17 governors, 50 regents/mayors, 14 judges, 121 members of the legislature, and hundreds (even thousands) of high-ranking officials were imprisoned for corruption charges [42]. Even Statistics Indonesia in 2021 reported that Indonesia has a corruption index level of 3.88 (the maximum index is 5, and a high score indicates a mass of anti-corruption behavior). ...
Fraud is a problem that occurs in various organizations, including educational institutions. This condition is very ironic, educational institutions as institutions are required to teach anti-fraud education, but in fact, the educational institutions themselves are still fraudulent. This study aimed to explain the factors that can influence the principal, treasurer, and school committee to abuse school aid funds. The research sample was 145 principals, treasurers, and school committees for the elementary, junior high, and senior high school levels selected by convenience sampling method. All variables were measured using five Likert scales and analyzed with the multiple regression method. Instrument validity test using Pearson product-moment. This study shows that we found that pressure, internal control, integrity, and religiosity influence fraud. High financial pressures stemming from greed, a luxurious lifestyle, debt, integrity, low systems of control, and religiosity can increase fraud. These results reinforce the importance of schools or education-related regulatory agencies to be able to take policies to form a school environment that encourages honesty, limits teachers to hedonism, has a fair compensation system, and encourages teachers to practice worship, which needs to be done to avoid financial fraud from abuse of school aid funds.
... These negative consequences will be further exacerbated if individuals do peer reporting. Whistleblowing has become a prominence topic for the last two decade (Niazi et al., 2020) for its ability to deter fraud (Nurhidayat & Kusumasari, 2018;Peltier-Rivest, 2018). ...
This paper examines the influence of organizational commitment and microsocial ethical environment on internal whistleblowing intentions. This paper also investigates the moderating effect of organizational ethical leadership on organizational commitment and microsocial ethical environment. A total of 197 students at universities in Madura became respondents to this study. The sample is filtered from students in Madura Universities who join student organizations with snowball sampling. The hypotheses are tested using the partial least square (PLS) technique. The findings indicate that support from an ethical environment is associated with students' whistleblowing intentions, while organizational commitment is not significantly associated with whistleblowing intentions. Organizational ethical leadership is revealed to strengthen the effect of organizational commitment and to weaken the impact of microsocial ethical environment on internal whistleblowing intentions. The findings of this study lead researchers to conclude that "safety" is the driving factor to report fraud, not "responsibility" or "bravery". The rectorate in higher education institutions in Madura also prompted the implementation of an official whistleblowing system and ethics training so students who join student organizations feel safe and keep sensible of wrongdoing around them.
... Second, the error must be reported first to an internal party who has higher power, and third, if the deviation has been reported to the internal authority but no results have been obtained, and even the deviation continues, then reporting the deviation to an external party can be referred to as an act of citizenship the good one (Nawawi and Salin, 2018). Nurhidayat and Kusumasari (2018) uses two aspects of whistleblowing, namely views on whistleblowing perceptions and whistleblowing intentions. Robbins explains perception as a process carried out by an individual to organize and interpret the impressions captured by his five senses to give meaning so that the perception of whistleblowing is defined as a process to determine whether whistleblowing will have a good or bad impact on the individual himself or the environment (Noviani and Sambharakreshna, 2014). ...
The research made is qualitative research, where researchers look at various sources related to the whistleblowing system in Islamic banking. The object of this research is PT. Bank Syariah Indonesia (BSI) one of the largest Islamic banks in Indonesia, and targets to become the 10 largest Islamic banks in the world in the next 5 years. This research is needed to understand and see how the BSI whistleblowing system controls fraud and crime in the Indonesian banking world. Based on a survey from The Association of Certified Fraud Examiners, the level of banking fraud in Indonesia reaches 41% when compared to other sectors. This is one of the things that can be taken into account by the government, and stakeholders in banking. In addition to using qualitative methods. This study analyzes the BSI website with support from various sources related to the whistleblowing system in Islamic banking. Hopefully, in the future, there will be continued research looking at the implications of the whistleblowing system to prevent fraud in banking, especially Islamic banking, both in Indonesia but also abroad.
... PT TASPEN memaksimalkan peran manajer dalam memberikan contoh dan bagian dari sosialisasi terlaksananya whistleblowing system merupakan salah satu strategi yang mampu mengefektifkan sistem pelaporan pelanggaran yang dibuat. Sesuai dengan penelitian Nurhidayat & Kusumasari (2018dalam Kusumasari, 2018 dengan judul Penguatan Effefektivitas dari Sistem Whistleblowing Sebuah Studi untuk Implementasi Kebijakan Anti Korupsi di Indonesia yang memiliki hasil bahwa kepemimpinan merupakan salah satu faktor yang dapat memberikan pengaruh positif terhadap keberhasilan penerapan whistleblowing system. Dimana dalam PT TASPEN manajer merupakan pimpinan yang paling dekat dengan staff. ...
Fraud in insurance companies has become a rife thing lately. The Association Certified Fraud ExaminersI (ACFE) noted that in 2019 there were 239 cases of fraud in which the companies that suffered the most losses were financial sector companies in which the insurance company was included. One way to implement a clean and professional work environment is to implement Good Corporate Governance. To support this, it is necessary to optimize the application of the whistleblowing system as an element of Good Corporate Governance as a control and prevention of fraud. In this study, the author aims to determine how the implementation of the whistleblowing system at PT TASPEN. The author uses a qualitative method with a qualitative descriptive approach and gives results that in the implementation of the whistleblowing system PT TASPEN has almost applied all the indicators formulated in the Whistleblowing System by the National Committee on Governance, except for the hard skills training for employees and benchmarking activities.Keywords : Whistleblowing System; Fraud;GCGAbstrak: Kecurangan dalam perusahaan asuransi menjadi hal yang marak terjadi akhir-akhir ini. Association Certified Fraud ExaminersI (ACFE) mencatat bahwa dalam tahun 2019 terdapat 239 kasus fraud dimana perusahaan yang paling dirugikan adalah perusahaan sektor keuangan yang mana perusahaan asuransi masuk didalamnya. Salah satu cara menerapkan lingkungan kerja yang bersih dan profesional adalah dengan mengimplementasikan Good Corporate Governance. Untuk mendukung hal tersebut perlu dioptimalkan penerapan whistleblowing system sebagai salah satu elemen Good Corporate Governance sebagai pengendalian dan pencegahan adanya kecurangan. Pada penelitian ini penulis bertujuan untuk mengertahui bagaimana pelaksanaan whistleblowing system pada PT TASPEN. Penulis menggunakan metode kualitatif dengan pendekataan deskriptif kualitatif dan memberikan hasil bahwa dalam pelaksanaan whistleblowing system PT TASPEN hampir sudah menerapkan semua indikator yang dirumuskan dalam Pedoman Pelaporan Pelanggaran - Whistleblowing System oleh Komite Nasional Kebijakan Governance terkecuali bagian pelatihan hardskill kepada karyawan dan kegiatan benchmarking.Kata Kunci : Whistleblowing System; Fraud; GCG
... To the above, there have been many scandals of audit malpractice and ethical violations by auditors who work as public accountants in Indonesia, which have harmed many parties. Cases of ethical violations should not occur if every accountant has the knowledge, understanding, and willingness to apply moral and ethical values adequately to implement his professional work (Nurhidayat and Kusumasari, 2018). Public accountants have not fully obtained sufficient and appropriate audit evidence to assess the appropriateness of accounting treatment according to the substance of the transaction from the underlying agreement (Kok and Maroun, 2020). ...
... By identification with their organisation, they can get more legitimate roles to blow the whistle internally. These results are in line with a prior study that when issues are raised through internal whistleblowing, Indonesian bureaucrats with high organisational identification believe that potential problems can be dealt with before they cause significant damage to the organisation's reputation or its stakeholders (Nurhidayat and Kusumasari, 2018). ...
Purpose
This paper aims to reframe the whistleblowing process by examining the individual and situational factors that have been overlooked by prior studies. Ethical climate, public service motivation (PSM), organisation identification and psychological safety are inquired.
Design/methodology/approach
The present study sample was drawn from a population of Indonesian local governments located in east Java, Indonesia. Particularly, self-administered questionnaires were hand-distributed to the employees in the four local governments. Of 2,169 questionnaires distributed to the employees, 1,687 questionnaires were returned to the researcher. However, the researcher removed 33 returned questionnaires because of poor data quality, such as incomplete answers. Thus, only 1,654 questionnaires were analysed in this study.
Findings
The findings support the idea of an ethical climate that can encourage the individual to blow the whistle. However, its effect is indirect. The predictive power of ethical climate on the individual’s whistleblowing intentions depends on the meditating roles of PSM, psychological safety and organisation identification. Interestingly, the mediating effects of PSM, psychological safety and organisation identification are extremely acknowledged when individuals have an opportunity to choose internal or external disclosures.
Originality/value
This study produces a different approach to understanding people’s intentions to report any wrongdoings. This study is dissimilar from prior studies in terms of the theoretical paradigm and research design. Previous studies mostly used students as their experiments. In contrast, the current study recruited employees who work in local governments. This situation fundamentally affects the understanding of the impact of an ethical climate on the individual intention to blow the whistle.
... Whistleblowing is an attempt to disclose illegal practices by members of an organization under the control of its leader to individuals or organizations who may provide corrective action (Triantoro et al., 2020). Whistleblowing is the act of employees to disclose certain information that they believe is related to violations of laws, rules, practical guidelines or professional statements and involves improper procedures, corruption, abuse of authority or endangering public safety (Nurhidayat & Kusumasari, 2018). ...
The purpose of this study is to test the relationship between competency, organizational culture, love of money, and whistleblowing against prevention fraud with spiritual intelligence as moderation. The samples in this study were the village staff of West Halmahera Regency, namely the village head, village secretary, treasurer, head of the village administration section, head of the village development and empowerment section, and the section of village head community development of 213 people. The data in this study were taken using surveys with questionnaires and conducted validity and reliability tests. Hypothesis testing in this study using simple regression analysis and hierarchy. The results showed that out of the eight hypotheses submitted, only five hypotheses were supported and the rest are not supported.
... Beberapa penelitian sebelumnya mengenai penerapan WBS sudah banyak dilakukan seperti penelitian oleh Triantoro, Utami, dan Joseph (2019) dan Larasati, Sadeli, dan Surtikanti (2017) yang menyatakan jika adanya WBS dapat mengurangi dan mencegah terjadinya kecurangan. Penerapan WBS yang efektif diperlukan karena untuk menciptakan tata kelola yang lebih baik dan juga harus dapat memberikan perlindungan bagi whistleblower (Nurhidayat & Kusumasari, 2018). Wardani dan Sulhani (2017) menyatakan jika pelaporan tanpa penyertaan identitas (anonymous) cenderung dapat lebih mendorong penerapan WBS karena dapat melindungi whistleblower dari ancaman jika identitasnya diketahui. ...
The case of fraud is currently a hot topic, according to ACFE in 2018 the rate of fraud in the education sector in the Asia-Pacific region is reached five percent. There are several ways to detect fraud in order to overcome or minimize the occurrence of fraud, one of which is whistleblowing. Based on the ACFE survey in 2020, shows that currently, the form of fraud reporting media tends to be online or electronic. This research aims to explore the ease of use, usefulness, and importance of fraud reporting information systems in educational institutions using the TAM theory. This research method is descriptive qualitative. The results showed that the number of reports submitted to the fraud reporting portal was not driven by the ease and usefulness of the reporting portal service. The results of this study, apart from being able to add insight and literature, can also be used as material for consideration in making improvements related to the use of fraud reporting information systems, especially in educational institutions.
... This regulation is very essential because the reality shows that frauds are revealed by employees and not by auditors as authorities. An effective whistleblowing system is a system that contains five aspects, namely, human and ethical culture, policy, legal protection, organizational structure and processes and procedures (Nurhidayat & Kusumasari, 2018). Nowadays, there are a number of government and private organizations implementing whistleblowing reporting systems. ...
... Due to lack of protection for whistleblowers, various regulators have urged for the implementations of whistleblowing policies and whistleblowing laws (Nurhidayat & Kusumasari, 2018;Tang & Ong, 2011). ...
... Organizations will suffer losses if they fail to create conducive conditions for their members to disclose fraud and wrongdoings from the internal aspect. The organization is expected to be able to create a conducive environment in order to encourage employees against all fraud, wrongdoings, and corruption that occur in an organization (Nurhidayat & Kusumasari, 2018). ...
This paper aims to synthesize and identified several constraints of the research literature about whistleblowing and its impact on the
organizations from the human resource and organizational behavior point of view. The importance of study concerning whistleblowing is
an important trend in this today fraudulent world, however to our knowledge an integrative review in this sense is limited. By looking at the impact of whistleblowing act in collectivist culture, especially from the Asian perspective would give an impact to the development of the
studies in the future. This review using an integrative review with the distribution of databases including Sciencedirect, EBSCO, JSTOR
and soon using several terms including whistleblowing and collectivist of research published during 2003 to 2018. Thirty five papers were
identified, analyzed, and capturing data of research located in several Asian countries such as China, India, Indonesia, Malaysia, South
Korea, Thailand and Turkey. The findings of this review reveals that despite a positive trend of whistleblowing research in collectivist
culture, the importance to increase human resource and organizational behavior aspects also lead to positive ethic climate in organization. Human resource and organizational behavior aspects to be found have a significance role in creating ethical culture in the organization.
... Moreover, potential whistleblowers also need to be legally protected (Nurhidayat and Kusumasari, 2018) as they may feel discouraged from disclosing information about their leaders or organization, and the fear of backlash against them. Countries such as Kuwait and the UK have passed legislations that protect and encourage whistleblowers to expose illegal, unethical and corrupt activities in public and private organizations (Al-Haidar, 2018). ...
Purpose
The purpose of this study is to provide a structural model of the role of ethical leadership on intent to whistle blow workplace corruption using the theory of planned behaviors.
Design/methodology/approach
The study used a mixed method, sequential design. Interviews were conducted in the first phase to identify corrupt practices and validate the salience of the variables in the study. The second phase administered surveys to test the hypotheses of the study. Structural equation modeling (SEM) was done to analyze structural relationships among variables.
Findings
SEM results showed an adequately fit model, indicating ethical leadership predicting organizational norms and controls. It also found that ethical leadership has indirect effect toward employees’ attitude toward corruption through organizational norms and control. Furthermore, ethical leadership also has indirect effect on intent to whistle blow through organizational controls.
Research limitations/implications
This study was conducted in the Philippines, a high-power distance culture. In such a culture, the influence of leadership is crucial, as it dictates standard behaviors of members and the organization as a whole. Future research may wish to explore whether the findings would also apply in low-power distance cultures.
Practical implications
The finding suggests that ethical leadership is crucial in shaping organizational norms and controls, which in turn, influences employees’ attitude toward corruption and their intention to whistle blow.
Originality/value
The study contributes to corruption literature by providing empirical evidence of the structure model how the role of ethical leadership shapes organizational norms and controls that, in turn, influences employee attitude toward corruption and intent to whistle blow.
... Therefore, information that would ordinarily be relied upon to enrich this study is limited, insufficient, and not deep enough. The focus of the few available studies in this area is mainly on the procedures of whistleblowing [5], the impact of whistleblowing on the whistle- blowers [6], and the impact of whistleblowing in preventing fraud [7,8,9]. Therefore, there is a research gap in the examination of the impact of whistleblowing policy in mitigating potential risks in family businesses. ...
Whistleblowing via the media is among the most devastating ways of exposing wrongdoing in a company. This is because such exposure tends to be accompanied by negative publicity for the company and internal fallout in the company. Therefore, the best scenario for organizations is to avoid the escalation of internal matters to the extent that a whistle-blower turns to the media. One of the ways of preventing public whistleblowing is the creation of a whistleblowing policy. Such a policy sets out the procedures a potential whistle-blower should use to report wrongdoing and the protections that will be afforded for such individuals. This paper sought to identify the impact of whistle-blowing policy in mitigating potential risks in family business. Data was obtained via an online questionnaire from family businesses in Kuwait, Lebanon, Saudi Arabia, and the United Arab Emirates. 401 valid responses were received and analyzed. The study established that a whistleblowing policy plays a key role in protecting a firm from the risks associated with public whistleblowing, including bad publicity, heavy fines by industry regulators, and loss in consumer and shareholder confidence. A whistle blowing policy also deters future wrongdoing and encourages employees to report wrongdoing thereby protecting the organization from losses associated with corruption and other unethical behavior.
Purpose — This study examines how integrating Tri Hita Karana principles—Parahyangan (spiritual harmony), Pawongan (social harmony), and Palemahan (environmental harmony)—influences accounting practices and organisational change to combat corruption in Bali’s government institutions, with potential broader applications.
Design/methodology/approach — Semi-structured interviews with 21 departmental leaders were analysed using thematic analysis to understand how Tri Hita Karana principles are embedded in accounting and governance practices.
Findings — The integration of Tri Hita Karana principles fosters ethical behaviour, transparency, and accountability. Parahyangan strengthens spiritual accountability in financial reporting, Pawongan enhances collaborative oversight, and Palemahan promotes sustainable decision-making, reducing corruption linked to resource misuse. These principles offer a holistic anti-corruption approach that extends beyond compliance, showing potential adaptability in diverse contexts.
Research limitations/implications — While context-specific to Bali, the Tri Hita Karana principles reflect universal values of integrity and sustainability. Further research is needed to adapt these principles to different cultural and organisational environments.
Practical implications — Insights from this study guide policymakers in incorporating cultural values into governance to enhance ethical practices, especially in regions with weak regulatory frameworks.
Social implications — The study highlights how local wisdom like Tri Hita Karana can drive ethical governance, providing a model adaptable to various contexts for sustainable anti-corruption efforts.
Originality/value — This study shows how cultural values can enhance anti-corruption efforts, offering a framework adaptable to diverse global settings.
Keywords — Tri Hita Karana, Balinese culture, anti-corruption, accounting practices, organisational change
Paper type — Research paper
This study underscores the critical importance of prioritizing efforts to combat corruption within the development agenda. Focusing on least-developed nations characterized by extensive regulation and central planning, the chapter delves into the roots and ramifications of corruption. In such contexts, institutional deficiencies within legislative and judicial systems, coupled with a dearth of accountability, transparency, and consistency, create fertile ground for the proliferation of rent-seeking behavior. Beyond catalyzing the growth of shadow economies and incurring substantial societal costs, corruption exerts detrimental effects on investment, consumer behavior, income distribution, government finances, and economic reforms. Moreover, the study sheds light on the global pervasiveness of bribery and its underlying supply-side dynamics, while offering insights into strategies aimed at combating and preempting corrupt practices.
Effectiveness Returning state financial losses due to criminal acts of corruption is still far from expectations. In 2022, the number of decisions observed by ICW will increase fundamentally, namely 2,056 decisions with 2,249 defendants. In 2022, the average perpetrator of corruption will be imprisoned for 3 years and 4 months, which will cost the state Rp. 48,786,368,945,194.70 (Rp. 48,786 trillion). This article aims to describe the form of failure of Indonesian criminal law in efforts to return state assets and analyse the causes and consequences resulting from the failure of criminal law in efforts to return state assets. This research is based on qualitative research by conducting legislative studies and literature studies. The research results show that the form of failure to recover state financial losses is characterized by the increasing value of unrecovered state losses from year to year. This is a result of the legal vacuum that can be applied in efforts to recover state financial losses because the applicable legal formulation is no longer relevant or cannot reach the scope for confiscation of corruptors' assets so that judges have limitations in making sentences regarding the return of state losses. This has the impact of hampering equitable economic development and hindering foreign investors because the rulers and conglomerates use land to benefit certain groups. This research concludes that the formulation of criminal law cannot accommodate legal needs regarding the recovery of state financial losses due to corruption, so it is recommended to immediately pass the Asset Confiscation Bill.
Fraud and financial crimes involving banking employees have become serious and complex problems throughout the world, including Indonesia. This study aimed to analyze a fraud prevention through anti-fraud strategy and modified situational crime prevention theory. Data were obtained using a questionnaire distributed and interviewed to accounting officers, marketing departments, customer services, tellers, operational supervisors and risk management of banks in Indonesia. Respondent filled in 217 questionnaires completely. The data analysis technique used is a path analysis technique with the WarpPLS. The results show that anti-fraud strategies have a positive effect on fraud prevention. Banking in Indonesia has succeeded in implementing anti-fraud strategy through a whistleblowing policy, which focuses on efforts to protect whistleblowers and disclose potential fraud, compliance with the implementation of internal controls in activity units, and the proper functioning of risk management. The modified situational crime prevention theory also has a positive effect, and religiosity is a moderating variable. The results have also informed that banks have attempted to create conditions and awareness for perpetrators that the benefits of fraud are less and not commensurate with the high risks borne, and narrowing opportunities and providing strict sanctions to perpetrators can prevent fraud. Nanang Shonhadji (Indonesia), Soni Agus Irwandi (Indonesia) Fraud prevention Fraud prevention in the Indonesian banking in the Indonesian banking sector using anti-fraud sector using anti-fraud strategy strategy
Penelitian ini bertujuan untuk mengevaluasi pemanfaatan sistem whistleblowing di Bank NTT sebagai salah satu cara mencegah terjadinya fraud di perusahaan. Metode penelitian yang digunakan adalah kualitatif dengan pendekatan studi kasus untuk memperoleh informasi mendalam terkait penerapan dan pemanfaatan sistem whistleblowing di Bank NTT. Temuan penelitian menunjukkan bahwa penerapan sistem whistleblowing di Bank NTT terjadi karena adanya tekanan yang diberikan oleh regulator melalui peraturan yang diterbitkan berdasarkan Peraturan Otoritas Jasa Keuangan Republik Indonesia Nomor 39/POJK 03/2019. Penerapan sistem whistleblowing di Bank NTT juga terjadi karena adanya kepercayaan terhadap nilai moral dan budaya perusahaan. Tekanan dari organisasi sejenis yang telah menerapkan sistem whistleblowing tidak menjadi faktor yang menyebabkan Bank NTT menerapkan sistem whistleblowing. Sistem whistleblowing dinilai pihak internal sangat membantu perusahaan dalam mengungkap dan mencegah terjadinya fraud yang ada di lingkungan kerja dan unit bisnis yang dimiliki perusahaan. Hasil penelitian ini diharapkan dapat menjadi masukan bagi Bank NTT dalam memaksimalkan penggunaan sistem whistleblowing melalui pihak internal perusahaan.
In Timor-Leste, one of the newest nations in the world, a case of corruption is explored in this chapter, which is associated with the resource curse of official corruption. The case involves an expatriate tax lawyer who worked for the Ministry of Finance and orchestrated a 'taxation miracle' for 'his' adopted country. He was charged for a 176 million.
An effective national anti-corruption policy is one of the means of improving the legal mechanisms of compliance with the guarantees of human rights and freedoms at the national level. The corruption rate in the public sector reflects the state of development of Ukraine as an economic and legal state and its place in the international arena. The aim of the study was to analyse the state anti-corruption policy of Ukraine and the effectiveness of its implementation mechanisms. Empirical and theoretical methods of scientific knowledge, as well as the method of comparative analysis, were used for a comprehensive study of the issue under research. The system of measures for the implementation of Ukraine’s anti-corruption policy has become an effective tool for preventing and countering corruption. Effective anti-corruption measures in Ukraine were: coordinated state anti-corruption strategy; the newly created structure of anti-corruption bodies; virtuous public service; implemented electronic systems for public procurement and property management; regular public reporting; independence of the prosecutor’s office and judiciary; monitoring and control of civil society. Further studies may focus on determining and justifying the impact of the anti-corruption policy on the comprehensive development of the state with the purpose of providing practical recommendations for the implementation of anti-corruption measures.
This research study compares and explores students’ perceptions (P), expectations (E), and quality gaps (QG) regarding service quality (SQ) of a public and private business school of Pakistan using SERVQUAL. Other objectives also included investigating the impact of demographic factors upon the students’ perceptions, institutional difference, and test the validity of SERVQUAL in Pakistan context. Using Random sampling technique, data was obtained from 190 respondents (students) from both B-schools through a structured instrument. A sample of 190 respondents including 100 respondents from Public B-school and 90 from private B-school was selected for this study. Cross Sectional Study design and structured SERVQUAL questionnaire was used to get feedback from respondents across five dimensions (regarding E and P) of SQ. Using Quantitative approach, data was analyzed through SPSS 23.0 by applying descriptive and inferential statistics. Results showed overall negative QG in public and private B-school with mean scores of -0.48 and -0.42 respectively and gap was also negative in 5 SERVQUAL dimensions. In public B-school, highest negative gap was reported in responsiveness (-0.63); followed by empathy (-0.62); reliability (-0.41); tangibles (-0.38); and assurance (-0.34). Similarly, in private B-school, highest gap was reported in empathy (-0.63); followed by responsiveness (-0.51); reliability (-0.50); assurance (-0.25); and tangibles (-0.23). Paired t-test results reported statistically significant difference between students’ P and E of SQ dimensions in both B-schools. The study findings revealed that students’ P are lower than their E resulting in QG and dissatisfaction. Hypothesis testing reported statistically no significant difference in terms of gender and qualification groups. Results also reported statistically significant institutional difference. As students’ P and E scores in private B-school were higher than public B-school. It was also concluded that SERVQUAL can be applied for quality assessment, gap analysis, and identification of problem areas (critical quality dimensions) in B-schools of Pakistan as findings supported previous study results. Findings of this study can guide management/policymakers of Business schools to improve quality and allocate resources based upon identified problem areas/gaps in SQ dimensions.
Key Words: Service Quality, Expectations, Perceptions, Quality Gap, SERVQUAL, Business School.
Riset ini disusun untuk menjawab terkait perbandingan sanksi yang berlaku di Saudi Arabia dan Indonesia dalam kasus korupsi, pada kasus ini Saudi Arabia memberi hukuman mati berupa pancung. Sedangkan Indonesia dalam memberikan sanksi berupa penjara dan denda. Kemudian penelitian ini bertujuan untuk Mengetahui sistem hukum yang sesuai diterapkan di Indonesia. Selain itu, untuk menganalisis efektivitas antara sistem penegakan hukum di Indonesia dan Saudi Arabia terkait tindak pidana korupsi, kemudian mengetahui pengaruh hukum apakah sudah kuat atau masih longgar. Metodologi yang digunakan pada penelitian ini yaitu deskriptif kualitatif menggunakan sumber data sekunder dengan jenis library research. Adapun hasil riset yang kami dapatkan negara dengan angka korupsi yang tinggi belum tentu benar-benar tinggi, terkadang keadaan tersebut dapat ditutupi dengan fakta koruptor yang belum terkuak.
In this chapter four themes for change management after white-collar crime scandals are presented: the transformation of organizational culture, the development of preventive measures, the advancement of detective skills, and the clarification of response actions. These themes are then applied to a large sample of investigation reports by fraud examiners, establishing that most recommendations by fraud examiners focus on the development of preventive measures concerned with routines, requirements, documentation, guidelines, governance, roles, access rights, approval rights, transparency, training, competence, compliance, and control mechanisms. It is argued that recommended change measures by fraud examiners offer specific relevance for the study of compliance, in terms of both the identification and the evaluation of their messages. This offers specific relevance to crime prevention, comparing recommendations from fraud examiners with the objective of reducing white-collar crime convenience and identifying possible areas of compliance weakness.
Aim/purpose – Internal whistleblowing is the most desirable form of reporting about wrongdoings for all kinds of organizations. The aim of this paper is to identify factors influencing the occurrence of internal whistleblowing and to provide recommendations for practitioners on how to encourage employees to report wrongdoings to an organiza- tion. Design/methodology/approach – The fundamental article database has been construct- ed with the use of ProQuest, EBSCO and Taylor & Francis databases. The timespan for the research was from 1990 to 2022. The papers for the fundamental database were found within the utilization of two words “whistleblowing” in titles and “internal” in abstracts. Next, the database was broadened by snowball review. Findings – Identified factors important for the occurrence of internal whistleblowing in an organization were assigned to one of the following areas: ethics, leadership, poli- cies and procedures, retaliations and safeguards, social climate, organizational justice, education and training, reporting channels, communication, additional motivation, organization’s size and structure, audit committee. Research implications/limitations – For researchers – the paper provides a picture of research on internal whistleblowing: identified factors influencing internal whistleblow- ing, popularity of exploring problems, and utilizing research methods. For practitioners – the paper provides practical implications (based on current knowledge) important for implementing and managing organizational whistleblowing systems in the organization of private and public sectors. Originality/value/contribution – The main contribution of this work states the frame- work of factors affecting internal whistleblowing, which was constructed on the basis of a systematic review of the scientific literature. Moreover, the paper provides guidelines for practitioners. Keywords: internal whistleblowing, factors, effectiveness, systematic review. JEL Classification: K22, L50, M10, M12, M14.
The Effectiveness of Probity Audit in Preventing Procurement Fraud. This study seeks to examine the effectiveness of applying probity audits in preventing the fraudulent provision of goods and services. The case study approach was used as a method in the DKI Jakarta Provincial Inspectorate in 2016. The results show that the probity audit was not optimal. This is because sampling data was still used in the probity audit process, and the probity audit stage has not been carried out as a whole. Also, there are obstacles to the implementation of the audit probity in the form of limited facilities and infrastructure, budget, auditor competence, time, human resources, and documentation.
Why do some observers of organizational wrongdoing choose to report it? This question has received little research attention despite its prominence in the popular media. This paper attempts to show that whistle-blowing is a form of prosocial behavior. Empirical studies in the social-psychological literature of prosocial behavior provide clues about personality and situational variables predictive of whistle-blowing. Latané's and Darley's (1968, 1970) bystander intervention framework is modified for whistle-blowing decisions. Propositions for future research are offered.
This paper has four parts. The first states the standard theory of whistleblowing. The second argues that the standard theory is paradoxical, that it is inconsistent with what we know about whistleblowers. The third part sketches what seems to me a less paradoxical theory of whistleblowing. The fourth tests the new theory against one classic case of whistleblowing, Roger Boisjoly's testimony before the presidential commission investigating the Challenger disaster ("the Rogers' Commission"). I use that case because the chief facts are both uncontroversial enough and well known enough to make detailed exposition unnecessary. For the same reason, I also use that case to illustrate various claims about whistleblowing throughout the paper.
We analyzed data from a survey of employees of a large military base in order to assess possible differences in the whistle-blowing process due to type of wrongdoing observed. Employees who observed perceived wrongdoing involving mismanagement, sexual harassment, or unspecified legal violations were significantly more likely to report it than were employees who observed stealing, waste, safety problems, or discrimination. Further, type of wrongdoing was significantly related to reasons given by employees who observed wrongdoing but did not report it, across all forms of wrongdoing. However, the primary reason that observers did not report it was that they thought nothing could be done to rectify the situation. Finally, type of wrongdoing was significantly related to the cost of the wrongdoing, the quality of the evidence about the wrongdoing, and the comprehensiveness of retaliation against the whistle-blower. These findings suggest that type of wrongdoing makes a difference in the whistle-blowing process, and it should be examined in future research.
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.
Putting measures in place to prevent wrongdoing in organizations is important, but detecting and correcting wrongdoing is just as vital. Employees who observe wrongdoing should therefore be encouraged to respond in a manner that supports corrective action. This paper examines the influence of the ethical culture of organizations on employee responses to observed wrongdoing.The findings show that, contrary to transparency and congruency of management, many other dimensions of ethical culture were negatively related to inaction and external whistleblowing and positively related to direct interven-tion, reporting to management and calling an ethics hotline. The model used for ethical culture explained 27.5% of intended responses by employees.
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.
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.
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 etal. (2007, Academy of Management Journal
50(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.
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.
Given the lack of unequivocal findings on person-career fit, this investigation aims to gain insight into the role of cognitive styles in understanding students’ career preferences by two complementary studies. In study 1, we examined whether students (n = 84) with different cognitive styles differ in their entrepreneurial attitudes. Results showed a strong positive correlation between the creating style and the overall occupational status choice index, which implies a preference to become self-employed. No significant correlations were found between this index and the knowing and the planning style respectively. A more detailed look at the occupational status choice sub-indexes showed a positive correlation for the knowing style with the ‘economic opportunity’ index, for the planning style with ‘security’ and ‘participation in the whole process’, and for the creating style with ‘career’, ‘challenge’, ‘economic opportunity’, ‘autonomy’, ‘authority’, and ‘self-realisation’. No significant differences in overall occupational status choice were found in terms of gender, degree option, or family background in entrepreneurship. Study 2 focused on the link between students’ career anchors and their cognitive styles and personality profile (n = 275). We found for the knowing style a positive correlation with ‘pure challenge’, for the planning style a positive correlation with ‘lifestyle’ and ‘security/stability’ and a negative one with ‘autonomy/independence’, and for the creating style a positive correlation with ‘entrepreneurial creativity’ and ‘pure challenge’ and a negative one with ‘security/stability’. Hierarchical regression analyses showed that cognitive styles and personality traits could predict people’s career anchors to a certain extent. These findings are particularly relevant for career counselling services of higher education institutions and for selection and recruitment policies of organ
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.
This article examines the issue of whistle-blowing and discusses how employees should respond when something illegal, immoral, or contrary to company policies becomes known to them. It evaluates three prominent theories of when an employee would be justified in blowing the whistle. These are the Harm Theory, the Complicity Theory, and the Good Reasons Theory. This article identifies the strengths and weaknesses in each of these theories and proposes an integrity account of whistle-blowing. It also discusses organizational design issues that businesses should undertake to avoid the ethical issue of whistle-blowing.
Purpose
– The purpose of this paper is to examine the role of private sector in Indonesia to prevent and combat corruption practices. The eradication of corruption is not only the government’s problem which can be solved only by government regulations. The private sector should be involved in and be aware of these matters because of the huge interest of the business activities concerning national interest as well as their private interest to achieve highest profit.
Design/methodology/approach
– This paper explores the Indonesian laws on corruption eradication and analyzes the important role of the private sector that needs to be built.
Findings
– The role of private sector in the financial system can be viewed as a non-penal policy, which has a great impact as a prevention method to combat economic crimes such as corruption. A new perspective is needed to build, balance and integrate the role of the private sector. As a new perspective combating corruption, Indonesian Laws on Corruption Eradication is fostering the role of the private sector in promoting integrity and good corporate governance.
Practical implications
– The paper can be a source to explore the eradication of corruption based on Indonesian perspectives.
Originality/value
– This paper contributes by encouraging the private sector to prevent corruption and bribery practices, which, nowadays, are common in Indonesia.
Vice is a neglected concept in business ethics. This paper attempts to bring vice back into the contemporary dialogue by exploring one vice that is destructive to employee and organization alike. Interestingly, this vice was first described by Aristotle as akolastos. Drawing extensively on the criminology literature, the findings challenge both common sense and popular images of white-collar crime and criminals. While not all instances of employee betrayal are attributable to vice, some most certainly are, and the paper offers a description of those violations of trust in which vice may play a role.
The process of public whistle-blowing and the organizational responses to it are explored, with particular emphasis on retaliation. Individuals who had filed complaints of unfair employment discrimination completed questionnaires about the organizational retaliation that followed their whistle-blowing. Correlation and regression analyses revealed that organizations were more likely to retaliate both against whistle-blowers who were valued by the organization because of their age, experience, or education, and against whistle-blowers whose cases lacked public support, than against other whistle-blowers.
The abstract for this document is available on CSA Illumina.To view the Abstract, click the Abstract button above the document title.
Whistleblowing unwanted "The greatest rogue in the whole land is, and will remain, the informer". This is a quote attributed to Hoffmann von Fallersleben (1798-1874), author of the lyrics of the German national anthem. It is frequently used by those who want to block any discussion on the necessity to support whistleblowers and the concept of whistleblowing in Germany. After two dictatorships using denunciations as a tool, after Gestapo and Stasi 1 , the Germans are fed up with informers 2 . Whistleblowers, just another English term most people know nothing about, often are immediately measured by the same yardstick as those informers – without further discussion. Normally there is no reflection that Hoffmann made his statement against police spies in the mid-19th Century and that today he could certainly be described as a whistleblower himself. In 1842, he had lost his professorship at the University of Wrocław because he had, based on his national liberal convictions, criticised the prevailing conditions in his poems which had the ironic title "non-political songs" (1840/1841) 3 . Those who exert criticism in Germany must still often fear losing their jobs. It is true that, especially in comparison to the Anglo-Saxon countries, there is a sophisticated labour and employee protection legislation. However, when dealing with the issue of whistleblowing it often fails – as will be shown later. And the situation is aggravated by the fact that, under the pressure of globalisation and mass unemployment, the German employee protection is noticeably on the decline.
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.
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.
The literature on whistleblowing focuses on individual whistleblowers, their options within an organization, their motivation and ethics, procedural and legal protection, and the personal consequences of dissent. In this paper we examine a neglected aspect of whistleblowing in the federal bureaucracy: its impact on public policy. We use two case studies to assess policy impact, and find that in both instances there is evidence of impact on the policy agenda, bureaucratic procedures, and substantive public policy. We suggest that such policy impact is attributable to characteristics of the whistleblower, the nature of the issues raised, and especially the existence of several critical conditions: extensive and sympathetic media coverage, active support by politically influential groups within the agency and outside of it, and strong interest on the part of members of Congress in a position to conduct oversight investigations and promote policy change.
Observers of organizations recognize now that work related misconduct is both pervasive and costly. There is ample evidence that members of organizations sabotage processes, steal company property, harass others, cheat the government, or mislead customers. Companies and the public pay dearly.
What are the motivational forces that drive organizational members to exhibit such varied forms of misconduct? Are these forces different from those that drive them to engage in constructive behavior? What kinds of personal and organizational factors influence such acts of intentional misbehavior?
Our basic objectives in this paper are three-fold; first, to formally define a new construct of Organizational Misbehavior (OMB), and to discuss the theoretical implications of the definition; second, to identify different types of OMB; and third, to develop a conceptual framework that would allow the inclusion of OMB in a comprehensive theory of work motivation, applicable to both proper and improper conduct.
We define Organizational Misbehavior as “any intentional action by members of organizations that violates core organizational and/or societal norms.” A crucial element in the definition is the intention underlying the misbehavior. It therefore serves as the basis for the distinction among three types or organizational misbehavior: (a) OMB Type S, misbehavior that intends to benefit the self; (b) OMB Type O, misbehavior that intends to benefit the organization; and (c) OMB Type D, misbehavior that intends to inflict damage.
In order to integrate these forms of misconduct within a comprehensive motivational framework, we use the distinction between normative and instrumental sources of motivation. We propose that people who engage in OMB Type S are primarily motivated by self-interest consideration (i.e., instrumental processes), whereas those that perpetrate OMB Type O do so mostly because of strong identification with and loyalty to their organization (i.e., normative processes). OMB Type D, however, may he triggered by either instrumental or normative forces, or by both at the same time.
The various instrumental and normative factors that influence misbehavior are not only personal; they can also be organizational. On the individual level, we refer to such factors as the stage of moral development and personal need satisfaction At the organization level, we examine the role of such factors as organization culture and cohesiveness. We finally use the instrumental-normative framework to derive a set of formal propositions about the effects of some of these factors on the form and intensity of OMB.
This paper reviews research on the impact of classroom environments on student behavior, attitudes, and achievement. The first section examines studies of six environmental variables: seating position, classroom design, density, privacy, noise, and the presence or absence of windows. In the second part of the paper, research conducted from an “ecological” perspective is considered. A third section focuses on the effects of open space school designs. Finally, some future directions for research are discussed, and the advantages and limitations of various research designs are summarized.
″Wistleblowing″ is a new word in the glossary of labels generated by increased awareness of the ethical conflicts encountered at work. Whistleblowers sound an alarm from within the very organizations in which they work, aiming to spotlight neglect or abuses that threaten the public interest. The stakes in whistleblowing are high. Moral conflicts on several levels confront anyone who is wondering whether to speak out about abuses or risks or serious neglect. A would-be whistleblower must weight the responsibility to serve the public interest against the responsibility owed to colleagues and the employer institution. This conflict between responsibilities is reflected in contradictory messages within many professions. The professional ethic requires collegial loyalty, while the codes of ethics often stress responsibility to the public over and above duties to colleagues and clients.
Develops a model of principled organizational dissent after a review of literature in the social sciences, humanities, law and journalism. Propositions are derived from the model toward a program of research to estimate the magnitude of principled organizational dissent as a form of individual behavior in the workplace; identify and analyze factors affecting the causes and consequences of principled dissent; and suggest how principled dissent could be more effective as a stimulus for constructive organizational change. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Whistleblowing is a subject which seizes the media headlines from time to time, and nowhere is such a dilemma of conscience more sensitive than in the area of finance and internal auditing. Additionally, professional organisations are sometimes felt to be less than supportive of their members who occasionally resort to whistlelowing. But how does it look from inside the auditing profession? Professor Chambers is a director of The Institute of Internal Auditors Inc., and a member of the Internal Auditing Standards Board. He is Professor of Audit & Control at the University of Hull, and since 1991 he has chaired the Professional Standards & Guidelines Committee of IIA (UK). He is author of several books and a former Dean of the Business School of City University, London. In 1991 he established Management Audit Ltd., The Water Mill, Moat Lane, Old Bolingbroke, Spilsby, Lincolnshire PE23 4EU, which specialises in services to boards, audit committees and internal auditors. This article was originally presented to the 54e Conférence Internationale of The Institute of Internal Auditors, Inc., organised by the Institut Francais des Auditeurs Consultants Internes. Except where otherwise indicated, the views expressed in this article are those of the author.
ABSTRACT There is evidence from a variety of sources that employees often do not feel comfortable speaking to their bosses about organizational problems or issues that concern them. The purpose of this study was to shed light on the types of issues that employees are reluctant to raise, and identify why employees sometimes decide to remain silent rather than voice their concerns. We interviewed 40 employees and found that most had been in situations where they were concerned about an issue but did not raise it to a supervisor. Silence spanned a range of organizational issues, with several of our respondents indicating that they did not feel comfortable speaking to those above them about any issues or concerns. The most frequently mentioned reason for remaining silent was the fear of being viewed or labeled negatively, and as a consequence, damaging valued relationships. From our data, we develop a model of how the perceived consequences of voice contribute to silence, and a model of how the social and relational implications of speaking up can take away employees’ ability to have influence within an organizational setting.
ABSTRACT Employees often have ideas, information, and opinions for constructive ways to improve work and work organizations. Sometimes these employees exercise voice and express their ideas, information, and opinions; and other times they engage in silence and withhold their ideas, information, and opinions. On the surface, expressing and withholding behaviours might appear to be polar opposites because silence implies not speaking while voice implies speaking up on important issues and problems in organizations. Challenging this simplistic notion, this paper presents a conceptual framework suggesting that employee silence and voice are best conceptualized as separate, multidimensional constructs. Based on employee motives, we differentiate three types of silence (Acquiescent Silence, Defensive Silence, and ProSocial Silence) and three parallel types of voice (Acquiescent Voice, Defensive Voice, and ProSocial Voice) where withholding important information is not simply the absence of voice. Building on this conceptual framework, we further propose that silence and voice have differential consequences to employees in work organizations. Based on fundamental differences in the overt behavioural cues provided by silence and voice, we present a series of propositions predicting that silence is more ambiguous than voice, observers are more likely to misattribute employee motives for silence than for voice, and misattributions for motives behind silence will lead to more incongruent consequences (both positive and negative) for employees (than for voice). We conclude by discussing implications for future research and for managers.
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.
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.Among the most significant findings of the survey are:(1)
Recognition by employees of a hierarchy of proper whistleblowing outlets: internal first, law enforcement agencies second, and news media last.
(2)
Less employee support for legal protection for whistleblowers who report unethical activities than for those who report illegal conduct.
(3)
Very strong overall employee support for legal protection of whistleblowers, even among managerial and supervisory employees.
(4)
A belief among employees that a fear of being fired deters whistleblowing.
These findings have important implications for both management and public policy. Organizations that want to encourage whistleblowing clearly must protect whistleblowers from retaliation, while organizations that do not encourage whistleblowing may want to reconsider that policy. The survey results also have implications in the handling of individual whistleblowers.From a public policy perspective, the survey results provide support for increasing the legal protection of whistleblowers. On the other hand, any such increase in whistleblower protection should considerr the importance of employee loyalty and managerial discretion.
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.
This article argues that whilst the idea of whistleblowing as a positive duty to do good or to prevent harm may be defendable,
legislating that duty is not feasible. We develop our argument by identifying rights and duties involved in whistleblowing
as two clusters: one of justice and one of benevolence. Legislative arguments have evolved to cover the justice issues and
the tendency exists of extending rights and duties into the realm of benevolence. This article considers the problematic assumptions
and implications of whistleblowing as a positive duty, by examining the extent to which the Good Samaritan argument holds
with regard to whistleblowing. We argue that three criteria necessary for whistleblowing as a legally enforceable positive
duty are not met, namely that we need to be able to (1) specify who should know what, (2) minimize the risk to the whistleblower
and (3) adequately deal with mistaken concerns being raised.
Keywordsduty-legislation-obligation-right-whistleblowing-whistleblowing policies
Seven dimensions of organizational culture that influence the employee reflection process that ultimately leads to whistleblowing behavior are presented. These include 1) vigilance, 2) engagement, 3) credibility, 4) accountability, 5) empowerment, 6) courage, and 7) options. Key considerations within each dimension are discussed and a compliance framework is used to identify strategies for encouraging a culture that supports employee communication, questioning, and reporting of illegal, unethical, and illegitimate practices within organizations.
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.
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.
In recent times, whistleblowing has become one of the most popularly debated issues of business ethics. Popular discussion
has coincided with the institutionalisation of whistleblowing via legal and administrative practices, supported by the emergence
of academic research in the field. However, the public practice and knowledge that has subsequently developed appears to construct
a dichotomy of whistleblowing/silence; that is, an employee elects either to ‘blow the whistle’ on organisational wrongdoing, or remain silent. We argue that this
public transcript of whistleblowing/silence overshadows the importance of continuing research into alternative (individual
or collective) employee behaviour. Drawing on original research with a financial services organisation, our research uncovers
a dissenting discourse that operates through implicit communication, such as codes, sarcasm and jokes. We suggest that this hidden transcript offers
significant opportunities for employees to act ethically, and offers the potential to sustain an ethical organisational culture.
KeywordsWhistleblowing–Dissent–Ethical identity–Discourse–Foucault
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.
KeywordsWhistle blowing–Ethical leadership–Leader–member exchange–Moral intensity of the issue (magnitude of consequences)
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.
This paper reviews the literature on whistleblowing in the context of the ethical issues and conflicts of loyalties it raises. Factors which effect the likelihood of whistleblowing, such as individual and organisational characteristics and the severity of the incident, are discussed. Organisational responses, including retaliation, and the effectiveness of whistleblowing are considered, as well as the state of legal protection in the US and UK. The particular issues raised by whistleblowing in science and research are considered and the similarities and differences in the treatment of whistleblowers in the former Soviet Union and the US examined.
Although rational choice theory has made considerable advances in other social sciences, its progress in sociology has been limited. Some sociologists' reservations about rational choice arise from a misunderstanding of the theory. The first part of this essay therefore introduces rational choice as a general theoretical perspective, or family of theories, which explains social outcomes by constructing models of individual action and social context. "Thin" models of individual action are mute about actors' motivations, while "thick" models specify them ex ante. Other sociologists' reservations, however, stem from doubts about the empirical adequacy of rational choice explanations. To this end, the bulk of the essay reviews a sample of recent studies that provide empirical support for particular rational choice explanations in a broad spectrum of substantive areas in sociology. Particular attention is paid to studies on the family, gender, and religion, for these subareas often are considered least amenable to understanding in terms of rational choice logic.