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The courage of whistleblowing of prospective accountants: evidence from Saudi Arabia
Abstract
Purpose
Whistleblowing has received increasing attention and support in recent years as a means of detecting and correcting illegal, unethical or illegitimate practices in organizations. This study aims to examine the extent to which accounting students in Saudi Arabia, as prospective accountants, have the courage to blow the whistle.
Design/methodology/approach
A questionnaire survey was administered to a sample of final year accounting students in Saudi Arabia. The questionnaire contained four groups of questions aimed at exploring the students' reaction to whistleblowing, the whistleblowing channel that students prefer, the encouraging factors for whistleblowing and the factors that discourage whistleblowing from the students' point of view. The instrument questions were developed with reference to previous studies conducted in other countries.
Findings
The findings of the study revealed that accounting students have the courage to whistle the wrongdoing. What encourages students to blow the whistle is their perception that fraud and corruption is an unethical behavior which goes against religious values and that the wrongdoer must take appropriate punishment. However, there are some factors that negatively affect the students' courage to blow the whistle, the most important of which is the fear of retaliation, in addition to their feeling that the wrongdoer will not be held accountable.
Research limitations/implications
A sample of accounting students from one university limits generalizing the results to the population of accounting students in Saudi Arabia. Future research could examine this issue using larger samples of students, employees or professional accountants.
Practical implications
This study serves the Saudi vision 2030, which aims to combat fraud and corruption which negatively affect economic development. This study sheds light on the encouraging factors for Whistleblowing, which must be strengthened, as well as the discouraging factors, which must be addressed to mitigate their impact.
Originality/value
This study explores whistleblowing in Saudi Arabia where there is no research on this topic. This study comes at the appropriate time, as Saudi Arabia is currently witnessing an increasing interest in combating corruption, whether in the public or private sectors, and has recently introduced several legislations, as well as initiatives to encourage citizens to whistle the wrongdoing.
... Good corporate governance has an important role in a company's long-term success and bringing other positive impacts (Hatane et al., 2019). Good corporate governance allows organizations to reduce administrative corruption and enhance corporate performance (Ebaid, 2023;Dammak et al., 2024). The impacts arising from the implementation of good corporate governance include increasing investor confidence, improving risk management, improving financial performance, improving relationships with stakeholders, as well as increasing ethical behavior and social responsibility within the company (Dimes et al., 2023;Altaf et al., 2022). ...
... The whistleblowing system is part of a company's internal control, which is used to reveal violations (Ciasullo et al., 2017;Triantoro et al., 2019). In this case, the organization implements a whistleblowing system, allowing employees to report illegal, unethical, and immoral activities without fear of retaliation (Mbago et al., 2018;Ebaid, 2023). A whistleblowing system can also promote a culture of transparency and accountability in organizations (Verschuuren, 2021). ...
... Employees who report fraud to the company face various risks, such as being ostracized by colleagues, demotion from their position, and even termination of employment (Teichmann & Falker, 2021). The impacts that arise from a whistleblowing system include improving governance, increasing transparency, increasing ethics, protection for whistleblowers, increasing reputation, increasing trust, and preventing danger and loss (Ebaid, 2023). By having an effective internal whistleblowing system, the organization can create a more positive organizational culture and contribute to the sustainability of its business. ...
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.
... Whistleblowing has gained more attention in recent years, and the term whistleblowing is often used to describe the act of revealing wrongdoing (Ebaid, 2022). Most firms are aware of the wrongdoing within their organisation but choose to handle the issues delicately, and as a result, misbehavior that initially seems to be merely non-compliance could turn into a huge financial corporate scandal (Nawawi & Salin, 2019). ...
... Internal reporting mechanisms relate to the disclosure of misconduct to management or through anonymous channels within the organisation, while external mechanisms include reporting channels outside the organisation, such as regulators and media (Alleyne, 2016). Ebaid (2022) found that students would choose internal channels for reporting wrongdoing over external mechanisms and, consistent with Owusu et al. (2020) tend to report internally rather than externally. An internal reporting channel is preferable to external auditors to reduce the possible lawsuits or loss of licences as they may be charged with violating the client's confidentiality (Tuan Mansor et al., 2021). ...
... Correlation analysis was employed to test the relationship of the factors with whistleblowing intentions. 80 it impact the organisation's reputation (Ahmad et al., 2012;Ebaid, 2022;Owusu et al., 2020). Furthermore, there is also a significant and positive value (r = 0.299) in the relationship with the wrongdoer and the intention to whistleblow (Miller & Hurtt, 2013). ...
... More profoundly, Petty & Briñol (2012) stated that the persuasion effect is not only determined by a message being framed but also by the credibility of the sender of the message and emotional factors. Research on whistleblowing with accounting student participants has been conducted by Ebaid (2023). The findings of the study by Ebaid (2023) revealed that accounting students dare to whistle the wrongdoing. ...
... Research on whistleblowing with accounting student participants has been conducted by Ebaid (2023). The findings of the study by Ebaid (2023) revealed that accounting students dare to whistle the wrongdoing. What encourages students to blow the whistle is their perception that fraud and corruption are unethical behavior that goes against religious values and that the wrongdoer must take appropriate punishment. ...
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.
... Kohlberg's moral development theory is a widely accepted paradigm for understanding human ethical behavior, focusing on the stages of moral reasoning individuals go through before reporting wrongdoing (Belgasem-Hussain and Hussaien, 2020;Sarikhani and Ebrahimi, 2022). This theory highlights the relationship between trying to change the system and developing higher-order moral reasoning, which is primarily associated with a readiness to blow the whistle as an appropriate view, rather than personal gains (Ebaid, 2023;Mohd Zain et al., 2021) The highest stages of moral development lean against universal ethical principles and duty, rather than self-centered preoccupations. However, there are few resources incorporating Kohlberg's model consideration with the religion of Islam for context (Ali, 2009;Bhatti et al., 2016). ...
... The fourth point suggests that individuals may link whistleblowing with their lineage's preservation largely out of self-interest or retribution. Ebaid (2023) argues that whistleblowers may report corrupt acts in family-owned businesses out of fear of personal repercussions, but their actions are in favor of preserving the family's honor and moral principles. Finally, the fifth point suggests that people may view whistleblowing as an act to protect wealth, such as embezzlement or fraud, because of personal concerns or financial losses (Alazzabi et al., 2020;Sham et al., 2021). ...
Purpose-The purpose of this study is to develop a new whistleblowing scale considering the conventional and Islamic perspectives in combating corruption. Whistleblowing has received great attention because it helps the corruption prevention process by revealing bad practices, improving transparency and ensuring accountability. However, not many scholars have focused on the concept of whistleblowing in the Islamic context. Design/methodology/approach-The study uses a theoretical inquiry design, delving into the literature to thoroughly examine whistleblowing likelihood, Kohlberg's theory and Maqasid Shariah. Through qualitative content analysis, relevant concepts are scrutinized and synthesized. The integration of Kohlberg's theory and Maqasid Shariah aims to offer a comprehensive framework for comprehending whistleblowing likelihood, integrating perspectives from both Western and Islamic traditions. Findings-This study has conceptualized the integration of the six stages of Kohlberg and Maqasid Shariah to understand whistleblowing likelihood. The study offers a scale to explain whistleblowing likelihood based on the two theories.
... The current research differs from (Dhamija & Rai, 2018), (Ebaid, 2023), (Namazi et al., 2023) by applying TPB to determine the effect of whistleblowing intentions, which was not implemented in the two studies. This research also differs from (Iwai et al, 2021), which uses ethical behaviour as an independent variable. ...
... This study used a sample of accounting students as future accountants. The consideration for selecting accounting students is due to remembering that current accounting students are the seeds of future accountants; standing on the courage of these whistling students indicates their courage to whistle at work after graduation (Ebaid, 2023). The data collection procedure in this study used a questionnaire or questionnaire method by distributing questionnaires using Google Forms to the research object, namely accounting students, to obtain information in this study. ...
Accounting students' role in maintaining ethical standards by reporting fraud is crucial. This study empirically examines how individual factors-attitudes, subjective norms, perceived control, and Machiavellianism-affect their decisions. Using a quantitative approach, 212 Indonesian accounting students participated via questionnaire surveys and purposive sampling. Findings from Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis reveal positive correlations between willingness to report fraud and attitudes, norms, control perceptions, and Machiavellianism. These results underline the significance of addressing individual factors to foster a culture of integrity and accountability within the accounting profession, guiding educational institutions and policymakers in developing strategies to encourage ethical behavior and whistleblowing.
... The current research differs from (Dhamija & Rai, 2018), (Ebaid, 2023), (Namazi et al., 2023) by applying TPB to determine the effect of whistleblowing intentions, which was not implemented in the two studies. This research also differs from (Iwai et al, 2021), which uses ethical behaviour as an independent variable. ...
... This study used a sample of accounting students as future accountants. The consideration for selecting accounting students is due to remembering that current accounting students are the seeds of future accountants; standing on the courage of these whistling students indicates their courage to whistle at work after graduation (Ebaid, 2023). The data collection procedure in this study used a questionnaire or questionnaire method by distributing questionnaires using Google Forms to the research object, namely accounting students, to obtain information in this study. ...
Accounting students' role in maintaining ethical standards by reporting fraud is crucial. This study empirically examines how individual factors—attitudes, subjective norms, perceived control, and Machiavellianism—affect their decisions. Using a quantitative approach, 212 Indonesian accounting students participated via questionnaire surveys and purposive sampling. Findings from Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis reveal positive correlations between willingness to report fraud and attitudes, norms, control perceptions, and Machiavellianism. These results underline the significance of addressing individual factors to foster a culture of integrity and accountability within the accounting profession, guiding educational institutions and policymakers in developing strategies to encourage ethical behavior and whistleblowing.
... In Saudi Arabia, accounting students' religious values and ethical training were pivotal in motivating whistleblowing. Ebaid (2023) (23) revealed that these prospective accountants were willing to report fraud based on their religious beliefs, but fear of retaliation was a significant deterrent. Shawver et al. (2015) (16) found that the perceived moral intensity of unethical acts (e.g., the level of harm caused by financial fraud) shaped accountants' moral judgments and whistleblowing intentions. ...
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 positive influence of attitudes on whistleblowing intentions suggests that students who have a positive attitude towards whistleblowing are more likely to report unethical behaviour. This finding is consistent with previous research that has shown that attitudes play a significant role in shaping behavioural intentions (Ebaid, 2023). Namazi et al. (2023) agree that professional commitment as part of individual belief influences whistleblowing intention. ...
The prevalence of fraud, corruption, and other forms of mismanagement has shown an alarming increase in Malaysia over the years. This trend is emphasized by Transparency International's recent survey, the Corruption Perception Index (CPI) for 2023, which revealed Malaysia's drop of three spots from 61 to 57 out of 180 countries. This decline intensively illustrates the pervasive nature of corruption, especially among individuals in positions of power who exploit their authority for personal gain and disregard national laws. Media coverage has extensively documented instances of fraud and unethical conduct, emphasizing the urgent need for effective control mechanisms. In addressing this pressing issue, whistleblowing practices emerge as a crucial tool for combating corruption, and awareness should start from the university level. Universities are tasked with cultivating competent and ethical professionals. However, an alarming trend is the prioritization of high grades by many students, overshadowing the importance of honesty and accountability. Consequently, this study proposes to leverage the Theory of Planned Behaviour as a conceptual framework to explore whistleblowing intention, encompassing subjective norms, attitudes, and perceptions of behavioural control. Specifically, this research aims to assess the influence of perceptions of behavioural control, subjective norms, and attitudes on whistleblowing intentions among accounting students.
Purpose
This study aims to explore the effect of whistleblowing and interpretation among practitioners in the Nigerian economy. The research puts a premium on understanding the relevance and critical issues in its practices and developing an improved model for the effective practice of whistleblowing and interpretation in Nigeria.
Design/methodology/approach
This study adopted a conceptual approach, relying on extant literature to understand the management of whistleblowing incidents and identify the managers’ and other stakeholders’ responsibility in the whistleblowing process. It applied systems dynamics conceptual modelling and presented an improvement approach to addressing the complexities associated with whistleblowing and interpretation among Nigerian organizations.
Findings
This study contributed to the extant literature by developing a model for proper management of whistleblowing in the Nigerian context and enhancing the robust practice of whistleblowing and interpretation in Nigeria. The findings highlighted critical factors such as managers’ skills development, legal system support, institutional stakeholders’ function and ethical balance as key factors to effective whistleblowing management and interpretation. This implies that the act of identifying and developing responses to an emerging case of whistleblowing requires a process of developing underpinning assumptions, engagement and consideration of stakeholders’ interests while driving the sustenance of organizational focus.
Originality/value
This study emphasized the departure from absolute best practice to developing idea approaches that reflect stakeholders’ interests and the context of whistleblowing and interpretation. While the study acknowledges limitations in the sole focus on the Nigerian private sector and the Nigerian economic background, it recommends further exploration of whistleblowing and its interpretation on a comparative approach, to improving the current understanding of the topic.
Purpose
The purpose of this study is to develop a new whistleblowing scale considering the conventional and Islamic perspectives in combating corruption. Whistleblowing has received great attention because it helps the corruption prevention process by revealing bad practices, improving transparency and ensuring accountability. However, not many scholars have focused on the concept of whistleblowing in the Islamic context.
Design/methodology/approach
The study uses a theoretical inquiry design, delving into the literature to thoroughly examine whistleblowing likelihood, Kohlberg’s theory and Maqasid Shariah. Through qualitative content analysis, relevant concepts are scrutinized and synthesized. The integration of Kohlberg’s theory and Maqasid Shariah aims to offer a comprehensive framework for comprehending whistleblowing likelihood, integrating perspectives from both Western and Islamic traditions.
Findings
This study has conceptualized the integration of the six stages of Kohlberg and Maqasid Shariah to understand whistleblowing likelihood. The study offers a scale to explain whistleblowing likelihood based on the two theories.
Research limitations/implications
The correlation between Kohlberg and Maqasid Shariah reveals a nuanced relationship between individual moral evolution and Islamic ethical imperatives, in the context of whistleblowing likelihood. As individuals progress through Kohlberg’s stages, aligning with Maqasid Shariah’s emphasis on societal well-being, their inclination to blow the whistle evolves from early considerations of fear and conformity to a commitment to universal ethical principles and justice.
Practical implications
The new scale integrating Kohlberg and Maqasid Shariah aids ethical climates in organizations by assessing employees’ moral development and promoting ethical leadership through tailored training. Aligned with Islamic values, the scale becomes a tool for fostering ethical behavior and organizational culture, emphasizing justice and commitment to higher ethical objectives. Managers must delicately balance justice and community harmony when implementing whistleblowing initiatives to ensure a positive impact on both ethical principles and organizational cohesion.
Social implications
By integrating the six stages of moral development proposed by Kohlberg, the new scale plays a role in promoting transparency and accountability for sustainable development. Furthermore, its alignment with Maqasid Shariah contributes to addressing corruption and advocating for social justice, making the scale a catalyst for societal well-being that respects cultural and religious values. Ultimately, the scale supports a socially responsible approach, reinforcing ethical behavior and contributing to the broader global agenda for sustainable and just societies.
Originality/value
The new scale integrating Kohlberg and Maqasid Shariah offers an innovative and interdisciplinary approach to assessing whistleblowing likelihood. This fusion provides a nuanced understanding of individuals’ ethical reasoning, aligning universal moral principles with Islamic ethics. The scale not only broadens the conceptual framework for evaluating ethical decision-making but also respects cultural diversity, making it inclusive and applicable across diverse global contexts.
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.
Along with the many cases of fraud in the world of accounting in various companies, whistleblowing is a way to detect and prevent fraudulent practices or violations. However, becoming a whistleblower is not easy. It takes a strong courage and conviction to do it. This happens because a whistleblower is likely to experience acts of retaliation from several persons. Accounting students as prospective accountants need to prepare themselves from an early age to face the world of the accounting profession in the future. Accounting students need to understand whistleblowing as an effort to prevent fraud or unethical violations. The purpose of this research is to find out and test the perceptions of accounting students towards whistleblowing actions based on the Theory of Planned Behavior. The research method used in this study is a verification method with a quantitative approach. Source of data used in this research is primary data. The sampling technique used is non-probability by using purposive sampling. The hypothesis test used in this study is multiple regression analysis. The results of the hypothesis show that perceptions about behavioral control, subjective norms, and attitudes toward behavior influence accounting students to take whistle-blowing actions. Abstrak. Seiring dengan banyaknya kasus kecurangan dalam dunia akuntansi di berbagai perusahaan, whistleblowing menjadi cara yang dilakukan untuk mendeteksi dan mencegah terjadinya praktik kecurangan atau pelanggaran. Meski demikian, untuk menjadi seorang whistleblower bukanlah hal yang mudah. Dibutuhkan sebuah keberanian dan keyakinan yang kuat untuk melakukannya. Hal tersebut terjadi dikarenakan seorang whistleblower kemungkinan akan mengalami tindak pembalasan dari beberapa oknum. Mahasiswa akuntansi sebagai seorang calon akuntan perlu untuk mempersiapkan diri sejak dini dalam menghadapi dunia profesi akuntan di kemudian hari. Mahasiswa akuntansi perlu memahami tindakan whistleblowing sebagai upaya dalam mencegah terjadinya kecurangan maupun pelanggaran tidak etis. Tujuan dari penelitian ini adalah untuk mengetahui dan menguji pengaruh persepsi kontrol perilaku, norma subjektif, dan sikap perilaku terhadap tindakan whistleblowing. Metode penelitian yang digunakan dalam penelitian ini adalah metode verifikatif dengan pendekatan kuantitatif. Sumber data yang digunakan dalam penelitian ini adalah data primer. Teknik pengambilan sampel yang digunakan adalah non-probability dengan menggunakan purposive sampling. Uji hipotesis yang digunakan dalam penelitian ini adalah analisis regresi berganda. Hasil hipotesis menunjukkan bahwa persepsi kontrol perilaku, norma subjektif, dan sikap perilaku berpengaruh terhadap mahasiswa akuntansi untuk melakukan tindakan whistleblowing.
The increasing number of frauds has become a serious threat to stakeholders. The best method for preventing fraud is to disclose fraud in an organization. This study aims to examine the potential for whistleblowing actions undertaken by employees under transformational and transactional leadership styles. The method used in this study is a 2x2 experiment between research subjects involving 96 undergraduate students of a state university in Central Java. The results of this study prove that the subjects have greater whistleblowing intentions when they are under transformational leadership than transactional leadership, the subjects have greater whistleblowing intentions when they are under high accountability pressure than low accountability pressure, and the interaction between transformational leadership and high accountability pressure has a significant influence on whistleblowing intentions.
When giant companies are involved in fraud that has an extremely detrimental effect on the economy, the fraud cases become scandalous. The giant company's fraud case was revealed, mostly because of the information within the company that was revealed by the company's employees, which is called whistleblowing. The purpose of this study is to prove the differences in students' perceptions of fraud and whistleblowing behavior based on gender factors. Research is conducted on students of the Faculty of Economics of Universitas Hasyim Asy'ari Tebuireng Jombang, who are in the third semester or above so that they already understand fraud and whistleblowing. This type of research is quantitative research based on empirical studies. The research sample was selected by using the technique of probability sampling with the category of simple random sampling. The hypothesis testing using multiple research paradigms with one dummy variable and two dependent variables so that it uses two simple dummy regression tests. The decision on the results of hypothesis testing uses two R Square determination coefficients to explain the relationship of each variable. The results of this study prove that there is no gender effect on the students' perception of fraud and whistleblowing.
Whistleblowing is an important action for the organization as a form of internal control of illegal actions that cause losses. This study aimed to test of causality of the personal cost of reporting and status of the wrongdoer on whistleblowing intention. This study used a true experimental design between subjects 2x2. The subjects of this study were 95 accounting study program students. The students acted as the government's internal auditor. The results of this study indicate that whistleblowing intentions will be higher in personal cost of reporting and the status of the wrongdoer low compared to personal cost of reporting and status of wrongdoer high. A whistleblower prefers not to perform whistleblowing when the wrongdoer has a higher position and sanctions to be received are severe.
Purpose
This study aims to investigate the intentions of a section of Ghanaian university students towards whistleblowing and the factors that predict such intentions.
Design/methodology/approach
This study used the survey method of research, and data was gathered through the use of questionnaires. A total of 524 accounting students from the University of Ghana Business School participated in the survey. The structural equation modelling technique was used to analyse the data.
Findings
The findings of this study show that the sampled students have greater intentions to report wrongdoings when detected and that majority of the students would prefer to use internal mechanisms for reporting purposes than using external means. Further, the study found students’ attitude towards whistleblowing and subjective norm to be key predictors of internal whistleblowing intentions whereas perceived behavioural control was found to have a positive influence on the intention to blow the whistle externally.
Research limitations/implications
Findings of this study have implications for policymakers who have a keen interest in enhancing whistleblowing activities and whistleblower protection.
Originality/value
This study provides some insights into the whistleblowing intentions of students. An understanding of the views of students towards whistleblowing and the factors driving their intentions should be useful to organisations that may use these students upon graduation.
The present research is aimed at identifying the most important variables affecting whistle-blowing and prioritise them in the intention of internal reporting of frauds in the financial statements by accountants. For this purpose, the effect of organisational justice, attitude toward whistle-blowing, personal cost of reporting, proactive personality traits, religiosity and moral intensity are studied. This research is based on a survey research and the statistical population of the study consists of the accountants of the 400 companies listed on the Tehran Stock Exchange in 2015. The hypotheses were tested using OLS regression and the results indicate that among preceding factors, only organisational justice, attitude toward whistle-blowing, religiosity and moral intensity have positive and significant effects on the intention of reporting fraud. The results of prioritising effective factors of whistle-blowing intentions show that organisational justice, religiosity and then gender have the most impact on the intention to whistle-blow in financial statements.
This article examines how worldwide governance, global competiveness, and other institutional determinants have influenced the number of accounting fraud cases in several countries. The researchers have focused more closely on the importance of ‘good governance’ as one of the indicators of development objectives in itself. The institutional perspective is employed to explain the complexity of frauds in different societies which can be compatible for the purposes of international judgments in order to increase the effectiveness of previous forensic accounting theories. In this paper, a linear regression model is tested where governance, competitiveness, and other institutional variables are associated with a measure of accounting fraud cases. From our results, we can merely claim that an increased level of controlled corruption and political stability might reduce the number of fraud cases in various countries, while more effective and independent governance services with a higher freedom of expression seemed to increase them. The existence of accounting crimes also appeared to be a suitable proxy of better competitiveness. Anglo-Saxon countries have more stated fraud cases than other countries, attributed, perhaps, to the finest commercial courts with the most professional and least corrupt judges in the world, with centuries of precedent cases and experience in dealing with fraud. Moreover, we believe that a better understanding of fraud detection is a potentially important element in forensic accounting analytics in the success of governance policies to enhance development and reduce the risk of bankruptcies related to the reported fraud cases of enterprises.
Present study aims to examine the role of perceived fear of retaliation and value orientations (individualism, collectivism, idealism, and relativism) on whistleblowing intentions (both internal and external). Sample used in the present study consists of 237 executive MBA students from two leading Indian business schools. According to the results of paired sample t test, respondents reported significantly higher internal whistleblowing intentions than external whistleblowing intentions. Results also indicate that there is a significant inverse relationship between fear of bad consequences on job and whistleblowing intentions (both internal and external). Also, fear of bad consequences for the company is positively correlated with internal whistleblowing intentions. Lastly, collectivism is also found to be positively related with internal whistleblowing intentions. Limitations and implications of the findings were also discussed.
Purpose
Whistleblowing has been receiving increased attention and support in recent times as a means of detecting and correcting wrongdoing in organizations. This study aims to examine perceptions, attitudes and consequences (actions and reactions) of whistleblowing, as well as the predictors of internal and external whistleblowing intentions, by using Graham’s (1986) model of principled organizational dissent in a small emerging and collectivist culture like Barbados.
Design/methodology/approach
The study utilized a self-administered survey of 282 accounting employees working in organizations in Barbados.
Findings
Results reveal that there is little awareness of whistleblowing legislation. Most respondents perceive whistleblowing as ethical and favor internal over external whistleblowing. Findings show that personal responsibility and personal costs significantly influence internal whistleblowing intentions, while personal costs influence external whistleblowing. Using qualitative data, several themes emerged as influencing whistleblowing: perceived benefits of whistleblowing, actual whistleblowing experiences (handling of reports), personal costs (climate of fear and hostility), perceived lack of anonymity and cultural norms.
Research limitations/implications
Future research should control for social desirability bias and use more rigorous qualitative approaches such as face-to-face interviews and focus groups to gain in-depth opinions and feelings on the topic.
Practical implications
Whistleblowing can be achieved through such mechanisms as perceived organizational support, strong ethical codes of conduct, rewarding ethical behavior and promoting sound work ethics in organizations.
Originality/value
This paper explores whistleblowing in an emerging economy where there has been little research on the topic. Thus, this study supplements the existing research in emerging economies by examining the applicability of Graham’s (1986) model of principled organizational dissent.
Accounting fraud and workplace misconduct has had dramatic economic and societal effects. Research suggests that most observations of workplace misconduct go unreported. We suggest that before graduating from an accounting program, students should be exposed to ethics interventions that prepare them to deal with whistleblowing situations they may encounter as future accounting professionals. This study finds that an ethics intervention increases students’ understanding of how accountants have manipulated information to complete an accounting fraud and increases their understanding of whistleblowing, its consequences, and protections for whistleblowers under the Sarbanes Oxley Act. Further, this study finds that an ethics intervention not only increases the students’ level of ethical sensitivity and judgment, but also positively impacts the likelihood that an accounting student would intend to blow the whistle for situations involving accounting manipulations. This study also provides empirical evidence that analyzing cases and participating in class discussions are effective ways of meeting specific course goals related to whistleblowing.
Many jurisdictions have put regulatory strategies in place to provide incentives and safeguards to whistleblowers to encourage whistleblowing on corporate wrongdoings. One such strategy is the provision of a financial incentive to the whistleblower if the complaint leads to a successful regulatory enforcement action against the offending organization. We conducted an experiment using professional accountants as participants to examine whether such an incentive encourages potential whistleblowers to report an observed financial reporting fraud to a relevant external authority. We also examine the effect of perceived seriousness of the wrongdoing on accountants’ intention to whistleblow. We find that a financial incentive results in a higher intention to whistleblow to a relevant external authority. We also find that perceptions of the seriousness of the wrongdoing are significantly and positively associated with accountants’ intention to whistleblow to a relevant external authority. We find a significant interaction between the provision of a financial incentive and the perceived seriousness of the wrongdoing on the intention to report the wrongdoing externally. The intention to report the financial reporting fraud externally is higher when the level of perceived seriousness is higher, regardless of the availability of a financial incentive. However, when the perceived level of seriousness is lower, the presence of financial incentive results in a higher intention to report the financial reporting fraud externally. These findings indicate that the impact of a financial incentive on the intention to whistleblow is moderated by perceptions of the seriousness of the wrongdoing.
Purpose
This paper aims to offer empirical evidence about the effect of the interaction between the audit committee and the internal audit function (IAF) on the moral courage of the chief audit executive (CAE).
Design/methodology/approach
A mixed approach was followed. In the first stage, questionnaires were sent to CAEs of 60 listed, financial and non-financial Tunisian companies. To enhance the depth of the analysis, in the second stage, semi-directed interviews with 22 CAEs from listed financial and non-financial Tunisian companies were performed.
Findings
This paper found that the existence of private access to the audit committee has a positive effect on the moral courage of the CAE. The number of meetings between the audit committee and the CAE, the examination of internal audit programmes and results together with the contribution of the audit committee to the appointment and dismissal of the CAE do not show a significant link with the moral courage of the CAE. It also found an insignificant relationship between the audit committee’s examination of interaction between management and the IAF and the moral courage of the CAE.
Originality/value
To the best of the authors' knowledge, this paper fills one of the major research gaps in the auditing literature by demonstrating the critical role of audit committee–internal audit interaction in promoting the CAE’s moral courage to behave ethically.
Purpose
– The purpose of this paper is to examine the influence of organisational commitment (OC) and corporate ethical values (CEV) on the whistle-blowing intentions of non-public accountants in Barbados.
Design/methodology/approach
– The study uses a sample of 236 self-administered questionnaires from non-public accountants working in corporate organisations.
Findings
– OC and CEV significantly influence internal and external whistle-blowing intentions. Non-public accountants with high OC, who also operate in organisations with strong perceived CEV, are more likely to exhibit high internal whistle-blowing intentions and low external whistle-blowing intentions. Non-public accountants with high perceived personal costs, low OC and a low degree of trust and confidence in the reporting systems, cite a general reluctance to whistle-blow internally and externally.
Research limitations/implications
– The findings may not be generalisable to other professions. In addition, it utilises a quantitative survey method, which does not allow for further investigation of non-public accountants’ perceptions and feelings.
Practical implications
– The study can assist firms in developing effective whistle-blowing mechanisms. The findings show the importance of high OC, strong CEV and reduced personal costs in a whistle-blowing framework.
Originality/value
– This study provides evidence of the influence of OC and CEV on whistle-blowing among members of the accounting profession in an emerging economy. The study also provides a whistle-blowing matrix and discusses the unique social and cultural factors influencing the whistle-blowing process in Barbados.
In four studies, we examine implicit voice theories - taken-for-granted beliefs about when and why speaking up at work is risky or inappropriate. In Study 1, interview data from a large corporation suggest that fine-grained implicit theories underlie reluctance to voice even pro-organizational suggestions. Study 2 survey data address the generalizability of the implicit theories identified in Study 1. Studies 3 and 4 develop survey measures for five such theories, establishing the measures' discriminant validity and incremental predictive validity for workplace silence. Collectively, our results indicate that implicit voice theories are widely held and significantly augment explanation of workplace silence.
Purpose
– The purpose of this paper is to explore pathways to fraud perpetrated in accounting-related roles, focusing both on situationally driven attitudes and contextual elements.
Design/methodology/approach
– Drawing on an anomie-based criminological taxonomy developed by Waring et al. (1995) and Weisburd and Waring (2001), which highlights individual attitudes and situational elements and their connection to illegitimate behaviour, the authors perform a qualitative content analysis of available media and court-reported information on a hand-collected database of 192 accountant frauds in Australia during the period 2001-2011.
Findings
– The analysis highlights four distinct pathways to accountant fraud – crisis responders, opportunity takers, opportunity seekers and deviance seekers – and the relative distribution of identified cases among these pathways. It also identifies the prevalence of gambling, female offenders, small and medium enterprises as victims, as factors in fraud, as well as the relatively unsophisticated methods in much accountant fraud. In addition, it establishes the importance of situational attitude in moderating inherent character as it relates to fraudulent behaviour and the variable importance of the fraud triangle elements across the pathways to accountant fraud.
Originality/value
– This paper provides direct evidence on the nature and pathways to accountant fraud, thus improving understanding of a significant category of occupational fraud. The evidence challenges conventional characterisations of accountant fraud offenders in prior research.
Whistle-blowing has received considerable attention in the ethics literature. However, following the collapse of Arthur Andersen in the Enron debacle, whistle-blowing within audit firms has taken on greater importance. Given the profession's requirements to be confidential, independent and to act in the public interest (e.g. Sarbanes–Oxley Act, 2002), there is a need for a model that is specific to the audit profession (e.g. Louwers, Ponemon, & Radtke, 1997), and in particular, that addresses auditors' whistle-blowing intentions. This paper presents a conceptual model on whistle-blowing intentions among external auditors where an auditor's individual factors (attitudes toward whistle-blowing, perceived behavioural control, independence commitment, personal responsibility for reporting and personal cost of reporting) have a direct influence on his or her intentions to whistle-blow, but are moderated by isomorphic factors (perceived organisational support and team norms) and issue-specific factors (perceived moral intensity). Using justice and institutional theories, the proposed model anticipates that whistle-blowing within an audit firm produces both positive and negative consequences to society, the audit firm and the individual whistle-blower. However, where audit firms have adequate formal supporting mechanisms for reporting wrongdoings to internal and external parties, the negative effects and personal costs of reporting will be minimised.
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.
In this research study, we apply the theory of organizational justice to the design of whistleblowing policies and procedures. As a pro-social behavior, we posit that employee whistleblowing is likely to increase when organizational whistleblowing procedures, outcomes, and related exchanges with superiors are perceived as fair. We test our hypotheses with an experiment involving 447 internal auditors and management accountants. Our results indicate that whistleblowing policies and mechanisms incorporating higher levels of procedural justice, distributive justice, and interactional justice were perceived to increase the likelihood that an organizational accountant would internally report financial statement fraud.
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.
We employ a Layers of Workplace Influence theory to guide our study of whistleblowing among public accounting audit seniors.
Specifically, we examine professional commitment, organizational commitment versus colleague commitment (locus of commitment),
and moral intensity of the unethical behavior on two measures of reporting intentions: likelihood of reporting and perseverance
in reporting. We find that moral intensity relates to both reporting intention measures. In addition, while high levels of
professional identity increase the likelihood that an auditor will initially report an observed violation, the auditor’s commitment
to the organization drives perseverance in reporting. Results may assist organizations and researchers in their understanding
of antecedents to whistleblowing as a form of corporate governance and of the effect of these antecedents on whistleblowing
perseverance.
Keywordsethics-moral intensity-organizational commitment-professional identify-whistleblowing
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.
Purpose
The purpose of this paper is to examine factors motivating an individual to report a whistleblowing scenario to various stakeholders within a company. This paper examines how four factors (country of origin and the espoused national cultures of masculinity, collectivism and uncertainty avoidance) influence the level of responsibility toward three stakeholders at different levels of hierarchy in an organization.
Design/methodology/approach
Using a case-based approach, this study collects data from 432 accounting students from two different countries. Using regression analysis on the pooled data, this paper provides evidence on how accounting students would behave when facing a whistleblowing situation involving their immediate supervisor.
Findings
This study finds that country of origin and espoused national cultural values influence the individual’s decision regarding whom to blow the whistle.
Originality/value
The study has improved upon the methodological deficiencies of previous studies that rely on Hofstede’s (1980) cultural values in that the paper focuses on the espoused national culture at the individual level.
Purpose
Despite various regulatory frameworks to combat unethical conduct, fraud and corruption remain alarmingly high. While whistleblowing is an important mechanism to identify and prevent unethical conduct, there is a lack of empirical studies on this issue in the Malaysian context, especially whistleblowing within the audit firms. Therefore, the purpose of this paper is to examine the whistleblowing intention of external auditors in Malaysia and the factors influencing this intention.
Design/methodology/approach
Data were collected using a structured questionnaire that was sent by post to external auditors throughout Malaysia. Participants were selected using a convenience non-probability sampling technique. A total of 274 responses were analyzed. SmartPLS version 3.2.8 was used for the analysis.
Findings
Professional commitment and independence commitment had a positive influence on whistleblowing intention, supporting the argument that professional factors can increase the intention of the external auditors to whistleblow. Perceived behavioural control had a positive relationship with whistleblowing intention, while there is no evidence to indicate that attitude and subjective norms influence whistleblowing intention.
Originality/value
This study explored whistleblowing among external auditors in Malaysia by focussing on the professional factors of professional commitment and independence commitment, which were hypothesized to be key factors in intention to whistleblow. These factors were incorporated with a multi-component of attitude, subjective norms and perceived behavioural control, which were derived from the theory of planned behaviour. The findings have implications for the auditing profession because they provide a better understanding of the factors that influence the whistleblowing intention of external auditors.
Given the importance of organizational whistleblowing, the purpose of this study is to investigate the relationships among individuals' perceptions of moral intensity, ethical decision making, and whistleblowing intentions. Using information collected from employees' working for varied firms, the analysis indicates that several dimensions of moral intensity, predominantly seriousness of consequences and social consensus, are positively related to components of ethical decision making, namely the recognition and perceived importance of an ethical issue, ethical judgment, and ethical intention. The results also show that the recognition and perceived importance of an ethical issue and ethical judgment are positively related to whistleblowing intention. Finally, seriousness of consequences is positively related to whistleblowing intention. The managerial implications of these findings are discussed, including the development of an ethical work context and programs that enhance ethical sensitivity. The research limitations and suggestions for future research are also highlighted.
A string of accounting-related scandals has revealed key shortcomings in internal auditor truthfulness. These scandals have led researchers, professional organisations and institutions to question causes of internal auditor silence and the failure of ethical guidelines. This study responds to these questions by revealing moral courage as the missing ingredient in internal auditor ethical instruction and as the tool needed for internal auditors to preserve their integrity and overcome their fears. Building on what is currently known of internal auditors and moral courage, this study sheds light on professional and ethical requirements placed on internal auditors to tell the truth, and it emphasises the role of moral courage in guiding their ethical behaviours. It also considers what must be known about the development of moral courage among internal auditors and seeks to identify the factors that promote internal auditors' moral courage through 30 structured interviews with chief audit executives.
This study investigates the effect of positive states, perceived supervisor support and independence of internal audit function on internal auditors' moral courage. Although extensive research has suggested that risk of feared consequences is the major cause that inhibits internal auditors from reporting managerial fraud, there has been little empirical investigation into the way of fostering internal auditors' moral courage to speak up. This study used a survey of 146 internal auditors in Tunisia. The partial least squares–structural equation model was used to test our hypotheses. The results indicate that self‐efficacy, resilience, perceived supervisor support and the independence of internal audit function have a positive effect on the internal auditors' moral courage; however, state hope does not show a significant link. Additionally, we find that women experience higher levels of moral courage than men do.
Mandatory audit firm rotation has been researched for decades with resulting opposition as well as support. Research has mainly treated mandatory auditor rotation at the firm macro level. We submit the client relationship length is comprised of firm tenure and audit team continuity, or auditor familiarity. Increased tenure, at the interorganizational or firm level and interpersonal or individual level, has been shown to increase trust; and further, trust is positively related to employee voice, such as speaking up about fraud (whistleblowing). We conduct an experiment examining whether increased audit firm tenure and auditor familiarity leads to increased trust, which enhances the willingness to whistleblow. We find evidence that suggests auditor familiarity enhances trust, which, in turn, positively influences an employee's intentions to whistleblow. This has important implications for the profession and for future research exploring mandatory audit firm rotation; in particular, the need to include auditor familiarity as a construct.
We review and summarize accounting literature that examines whistleblowing in the accounting context. We begin with a discussion of the whistleblowing model used in this study. Next, we conduct our review based on the following determinants of the whistleblowing intentions: characteristics of the whistleblower; characteristics of the report recipient, characteristics of the wrongdoer, characteristics of the wrongdoing, and characteristics of the organization. Under each determinant, we first summarize and analyze the findings of prior research, and then we present suggestions for future accounting research in whistleblowing.
Accounting fraud represents a severe threat to the public interest, and whistleblowing remains the most effective fraud discovery mechanism. In this research, we integrate the theory of planned behavior with the fraud triangle to organize prior whistleblowing literature and model the intention of professional accountants to blow the whistle on a material accounting fraud. The results, based on responses from 284 professional organizational accountants, support our theory development and indicate that attitudes and perceptions of control over whistleblowing are positively related to whistleblowing intention. In supplemental analyses, we also find that gender and management level are significantly associated with whistleblowing intent. Our results provide evidence for using our integrated theoretical model to explain and predict the reporting intention of corporate accountants. Findings should aid organizations and regulators seeking to improve corporate ethical culture and aid governance researchers in their understanding of the complex environmental and individual factors impacting whistleblowing intent.
Purpose
The purpose of this paper is to deal with an important element of the whistle-blowing decision, the whistle-blower. It is set within the environment of the small Mediterranean island of Malta. It has two objectives. The first is to identify the more important personality traits of the potential Maltese accountant whistle-blower and the situational factors that mostly affect his/her whistle-blowing decision. The second objective is to develop a regression model that can be used to identify the potential Maltese accountant whistle-blower.
Design/methodology/approach
The study is in the form of two e-mail questionnaires sent to Maltese accounting practitioners.
Findings
The personality traits of conscientiousness, openness to experience and extraversion and the situational factors of ethical considerations and professional requirements were found to be the more significant. The regression model proved substantially correct in singling out the potential Maltese accountant whistle-blower.
Research limitations/implications
The results are based on the replies of respondents to two questionnaires and not actual whistle-blowing behaviour. Also, the propensity to be a whistle-blower or not may not be a constant since it can be affected by shifts in internal attributes and situational factors.
Practical implications
Besides academic qualifications, the personality of the individual and his/her potential reaction to the working environment should be given due consideration in the recruitment of accounting staff.
Originality/value
The research contributes to the literature on the accountant whistle-blower in a small country setting that is rarely the subject of study.
Most of us are likely at some point to observe wrongdoing in our organizations, and some of us will blow the whistle to someone with the authority to put a stop to the wrongdoing. Or we may be managers, inspectors, or auditors who serve as the official 'complaint recipient' when one of our colleagues wants to report wrongdoing in the organization. Whether we blow the whistle or are tasked with cleaning up after someone else does so, we are better off knowing in advance how the whistleblowing process usually plays out. In this article we discuss the pragmatic implications of 30 years of systematic research about whistleblowing: who does it and when, and why they choose to report the wrongdoing internally (within the organization) or externally (to outsiders). To avoid external whistleblowing, which entails all sorts of costs for the organization, we recommend that managers take clear steps: investigate the allegations, make the results of the investigation known to those affected, correct the problem if one is found, and avoid reprisal against whistleblowers. These actions can increase the chance that information about organizational wrongdoing stays inside the organization, where it may be remedied, instead of being made public.
In this paper, I report on the results of an empirical examination of cultural influences on professional judgments of Australian, Indian, and Chinese‐Malaysian accountants in relation to whistle‐blowing as an internal control mechanism. Australia serves as a proxy for the Anglo‐American cluster of countries comprising the U.S., U.K., and Canada, while India and Malaysia represent the Asian‐Indian and Chinese clusters, respectively. I draw on cultural characteristics and differences among these societies to formulate hypotheses that Australian professional accountants are both more likely and more accepting of engaging in whistle‐blowing as an internal control mechanism than Chinese‐Malaysian and Indian professional accountants. Data were gathered through a survey questionnaire administered to samples of senior professional accountants from Big 6 (at the time of data collection) firms in Australia, India, and Malaysia. The questionnaire comprised two whistle‐blowing scenarios, and used both single‐attribu...
Public accounting firms rely on effective reporting of unethical behavior (whistleblowing) as a form of corporate governance. This study presents results from a survey of 122 in-charge level auditors, who indicated their likelihood of internal whistleblowing under three forms of identity disclosure for three independent scenarios. Reporting likelihood was significantly lower under a disclosed identity format, while there was no significant difference in likelihood between anonymous and protected identity formats. Contrasts reveal a significantly higher likelihood of reporting audit standards violations than a professional code violation. Likelihood was also positively related to measures of trust that the firm would investigate and act on the reported incident. Personal characteristics (i.e., locus of control and ethical style) were significant antecedents to whistleblowing intentions. Findings should aid public accounting firms and organizational governance researchers in their understanding of the determinants of auditors' whistleblowing propensity.
This paper investigates auditors' likelihood to report observations of colleagues' unethical behavior. We consider whether two characteristics that are particularly relevant to the audit environment, prior organizational response and power distance, affect willingness to report. Data collected from 106 senior-level auditors suggest auditors are more likely to report on their peers than on their superiors, but they are more likely to report superiors when prior organizational response is strong than when it is weak. Additionally, men appear to be relatively less sensitive to variations in power distance or prior organization response than women. Moral intensity of the case is significantly related to reporting likelihood, and power distance moderates this effect such that those who perceive this scenario to be of lower moral intensity are much more influenced by power distance than are those who perceive it to be of high moral intensity. These results contribute to the existing literature on accounting ethics, as well as inform public accounting governance policies.
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.
Purpose ‐ The purpose of this study is to analyze whether whistleblowing is a fact among accounting professionals when there is a serious wrongdoing at the workplace and to investigate the differences between accounting professionals about whistleblowing intention according to demographic variables. This paper reviews whistleblowing behavior in the context of professional accounting in Turkey. This study discusses whistleblowing event and analyzes it by using the scenario technique. Design/methodology/approach ‐ Three whistleblowing scenarios were used and participants were asked to indicate the likelihood that the individual in the scenario would blow the whistle. Participants indicated blowing the whistle action on a seven-point likert-type of scale for the given scenario. Findings ‐ The main hypothesis is the differences between whistleblowing behavior of accounting professionals in relation to such demographic characteristics as working conditions, total tenure, gender, age, membership and number of customers according to the scenario. The findings support that accounting professionals' demographic factors are important to understand the whistleblowing behavior from their perspectives. Whistleblowing is experienced among accounting professionals above the average level for each scenario. There are no differences about accounting professionals' whistleblowing behavior in terms of their demographic characteristics (working circumstances, total tenure, age, membership and number of customers) with the exception of gender and age variables. Research limitations/implications ‐ This study's results come with some limitations. One limitation is the low response rate achieved in the data collection process. Another limitation is that this study is conducted among accounting professionals, so these finding results cannot be generalized to other different professionals in Turkey. Practical implications ‐ The findings of the study may get the board of directors' or managers' attention to the point that they should become aware of the importance of whistleblowing in their organizations to encourage employees to report the wrongdoings internally. Social implications ‐ When employees report these wrongdoings outside the organization, corporate reputation of the company can be damaged. This ethical issue should be solved in the context of the organization. Originality/value ‐ This study aims to make several contributions to the accounting and management literature. First, it extends the recent accounting literature on whistleblowing by examining demographic characteristics. Second, most of the studies use questionnaire to collect the data from the participants, but in this study, the authors used the scenario technique that reflects the whistleblowing behavior tendency in a work environment in order to learn accounting professionals' evaluations of whistleblowing behavior.
This study uses a rational ethical decision-making framework to examine the influence of moral intensity (potential harm and social pressure) on whistleblowing intention and behaviour using organisational commitment as a moderator. A scenario was developed, and an online questionnaire was used to conduct an empirical analysis on the responses of 533 participants. The mean age and years of work experience of the respondents were 31 and 8.2 years, respectively. The results show, first, that while moral intensity is correlated with whistleblowing intention, only the potential harm is positively correlated with such intention. Second, potential harm and social pressure differentially affect whistleblower choice of using an internal or external channel. Third, organisational commitment has a moderated mediation effect among moral intensity, whistleblowing intention and behaviour. Fourth, whistleblowers may be grouped into four conceptual types: indifferent, rebel, mature and spoil. Finally, theoretical and managerial implications of the findings are discussed.
This research consists of two studies with interrelated objectives. The purpose of the first study is to develop and validate scales measuring whistle-blowing subjective norms, attitudes, and intentions. The objective of the second study is to test a model of whistle-blowing intentions, motivated by the theory of reasoned action, across two contrasting cultures: the collectivist Thai and the individualistic American. To achieve cross-cultural comparisons, we first perform measurement and structural invariance tests. Tests of latent mean differences lend support for our prediction that individuals in the collectivist Thai culture have higher means on subjective norms, attitudes, and intentions for whistle-blowing than members of the individualist American culture. Our models indicate that subjective norms for whistle-blowing, even though significantly different for American and Thai participants, have a direct effect on whistle-blowing attitudes as well as direct and indirect effects on reporting intentions for both subject groups. Compared to American subjects, the whistle-blowing intentions of Thai participants are more strongly influenced by subjective norms for whistle-blowing.
Purpose
The paper proposes to compare the relative success of the Public Interest Disclosure Act 1998 (UK) and the Protected Disclosures Act 2000 (South Africa) in providing protection for whistleblowers in the UK and South Africa.
Design/methodology/approach
The assessment is conducted in the light of case law in both countries and empirical research previously conducted.
Findings
The most important feature of the relevant statutes in both countries is that they recognise the need to protect workers who disclose in the public interest. Although the current provisions are important first steps, it is believed that much more needs to be done.
Practical implications
In the light of this research, 14 suggestions are made for change.
Originality/value
The article makes proposals for reform to the legislation in both countries. It also attempts to provide guidance to practitioners by identifying good practice in handling concerns about wrongdoing.
Research on whistle-blowing has focused on the questions of who blows the whistle, who experiences retaliation, and who is effective in stopping wrongdoing. In this article, we review research pertinent to the first of these questions. Since the last known review (Near & Miceli, 1996), there have been important theoretical and, to a lesser extent, empirical developments. In addition, the U.S. law is changing dramatically, which may serve to promote valid whistle-blowing, and international interest in whistle-blowing is widespread and increasing. Unfortunately, evidence strongly suggests that media, popular, and regulatory interest is far outpacing the growth of careful scholarly inquiry into the topic, which is a disturbing trend. Here, we argue that the primary causes of the underdevelopment of the empirical literature are methodological, and that workable solutions are needed but very difficult to implement. By calling attention to these issues, we hope to help encourage more research on whistle-blowing.
Purpose
The purpose of this paper is to use survey data to examine the impact of culture on current and future accounting and auditing professionals' intent to be whistle‐blowers in a Chinese cultural society.
Design/methodology/approach
The paper examines intent to whistle‐blow and factors influencing whistle‐blowing, using survey data collected by the authors.
Findings
It was found that a majority of respondents believe that a general sense of morality was the most important factor to encourage whistle‐blowing, with abiding by the policy of their organization as the second; it was also found that guanxi , fear of retaliation, and fear of media coverage may discourage whistle‐blowing in a Chinese society.
Research limitations/implications
The data are all from Confucian societies, which perhaps limits its usefulness elsewhere.
Practical implications
The paper will help auditors, accountants, and policy makers to design policies that encourage whistle‐blowing.
Originality/value
The paper uses original survey data collected by the authors, and the analysis will enable policy makers and professional accountants to anticipate and predict whistle‐blowing, a key factor in improving financial management and reporting, and possibly undermining auditor independence, audit quality, and the quality of financial reporting.
Purpose
– The accounting profession has emphasized the need for professionals to develop ethical attitudes early in their career, even before they enter the profession. The current study aims to examine the attitude of 128 US auditing students regarding whistleblowing.
Design/methodology/approach
– Some determinants of whistleblowing perception such as professional commitment and anticipatory socialization (as operationalized by perception of financial reporting) are explored.
Findings
– The results indicate that auditing students very close to graduation with more commitment to their profession and higher perception of financial reporting are more likely to blow the whistle on illegal management actions.
Originality/value
– The results of the research have implications for the accounting profession and accounting education.
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.
Whistleblowing involves present or former organization members reporting illegal, unethical or illegitimate activities under
the control of organization leaders to parties who are willing and able to take action to correct the wrongdoing. A major
shortcoming of prior whistleblowing research concerns the fact that there has been a tendency to examine whistleblowing from
a culturally-bound perspective without looking at cultural and international differences. The present paper attempts to extend
whistleblowing research into the international arena. This study will consider the differences in culture and societal structures
between a United States sample of managers and a Chinese sample of managers with respect to differences in individual, organizational,
and moral perception whistleblowing tendencies.
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.
This study examined experimentally the effect of retaliation strength and accounting students’ level of moral reasoning, on their propensity to blow the whistle (PBW) when faced with a serious wrongdoing. Fifty-one senior accounting students enrolled in an auditing course offered by a large New Zealand university participated in the study. Participants responded to three hypothetical whistle-blowing scenarios and completed an instrument that measured moral reasoning (Welton et al., 1994, Accounting Education. International Journal (Toronto, Ont.)
3(1), 35–50) on one of two conditions – i.e., strong or weak retaliation for whistle-blowing. Consistent with the results of Arnold and Ponemon (1991, Auditing: A Journal of Practice and Theory
10, 1–15) this study found that the strength of retaliation and participants’ moral reasoning level positively affected their PBW. Unlike results reported in Arnold and Ponemon (1991, Auditing; A Journal of Practice and Theory
10, 1–15) a significant interaction effect of moral reasoning level and retaliation on participants’ PBW was not found. However, results showed that a participant’s gender has a significant effect on the relationship between his or her moral reasoning level and PBW. These results support the need to improve ethical awareness through accounting education and to increase protection for whistle-blowing (Miceli 2004, Journal of Management Inquiry
13, 364–366). Furthermore, many participants found it difficult to take a stand when serious wrongdoing is discovered. Therefore, policymakers must exercise caution when placing heavy reliance on whistle-blowing, especially when whistle-blower protection processes are complex and not easily accessible, and processes to facilitate whistle-blowing may vary substantially between public and private sector organizations (Scholtens, 2003, Review of the operation of the Protected Disclosures Act 2000: Report to the Minister of State Services).
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)
We report the results of a study that examines the association between gender and individuals’ intentions to report fraudulent
financial reporting using non-anonymous and anonymous reporting channels. In our experimental study, we examine whether reporting
intentions in response to discovering a fraudulent financial reporting act are associated with the participants’ gender, the
perpetrator’s gender, and/or the interaction between the participants’ and perpetrator’s gender. We find that female participants’
reporting intentions for an anonymous channel are higher than for male participants; the fraud perpetrator’s gender and the
interaction with participants’ gender were not significantly associated with anonymous channel reporting intentions. Neither
of the two factors nor the interaction between the two factors was associated with reporting intentions to a non- anonymous
reporting channel. Results from an additional analysis indicate that male and female participants differ in the extent to
which they judge the reduction in personal costs of an anonymous reporting channel compared to a non-anonymous reporting channel
and that the reduction in personal costs mediates the relationship between participant gender and anonymous reporting intentions.
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.
Many countries regard whistle blowing by employees as a way to assure ethical conduct of firms and as a result various statutory rules have been enacted in order to fortify that behavior, such as the two provisions of the Sarbanes Oxley Act of 2002 (SOX) enacted in the US. The article takes a neo-institutional economics perspective on the phenomenon of whistle blowing and analyzes in what sense a statutory fortification is indeed legitimate. Contrasting, sophisticated regulatory models of the US, the UK and Germany are critically discussed, and an appropriate statutory approach is suggested that utilizes whistle blowing particularly to enhance the regulation of accounting standards enforcement in Germany and Europe.
Over the last number of years whistleblowers have been gaining prominence. This paper investigates some of the factors that influence the propensity or willingness to blow the whistle among trainee auditors. Three categories of factors are examined: audit firm organisational structures, personal characteristics of whistleblowers and situational variables.A survey of 240 final year students of the Institute of Chartered Accountants in Ireland was undertaken. Trainee auditors (just about to sit their finals) were asked about their confidence in internal and external reporting structures in their firms. Using four scenarios, audit trainees were questioned on their willingness to challenge an audit partner's inappropriate response to concerns raised during the audit. Finally, audit trainees were asked about the influence of legal protection on their likelihood of whistleblowing.Results indicate that where firms have adequate formal structures for reporting wrongdoing, trainee auditors are more likely to report wrongdoing and have greater confidence that this will not adversely affect their careers. Training increases this confidence. Trainee auditors also express a willingness to challenge an audit partner's unsatisfactory response to wrongdoing. Significant differences were found in attitudes depending on whether the reports of wrongdoing were internal or external. The willingness to report wrongdoing externally reduces for older (aged over 25) trainees.