Internal auditor and internal whistleblowing intentions : a study of organisational, individual, situational and demographic factors (original) (raw)
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Internal Whistle-Blowing Intentions: A Study of Demographic and Individual Factors
Internal auditors hold a unique position in their organizations to prevent, deter, and detect corporate wrongdoings. However, the role of this profession in investigating their ethical decision-making behaviors towards internal whistle-blowing intentions has been very often neglected. Furthermore, although extensive researches have been undertaken on the issue of whistle blowing globally, empirical studies on this area are still scarce in Malaysia. This paper examines internal whistle-blowing intentions among internal auditors in Malaysia by utilizing three independent vignettes. A mail survey was conducted to investigate demographic and individual factors that could influence internal auditors’ ethical decision-making processes. The likelihood for internal whistle-blowing intentions was significant among internal auditors’ ethical judgments for all the three vignettes. Demographic factors (gender, age, and tenure) and other individual factors (locus of control and organizational co...
2011
Internal auditors hold a unique position in their organisations to prevent, deter and detect corporate wrongdoings; however, the role of this profession in investigating their ethical decision-making behaviour towards internal whistleblowing intentions has been very much neglected. Furthermore, although extensive research having been undertaken on the issue of whistleblowing globally, empirical study in this area is still scarce in Malaysia. This paper examines internal whistleblowing intentions among internal auditors in Malaysian utilising three independent vignettes. A mail survey was conducted to investigate demographic and individual factors that could influence internal auditors' ethical decision-making process. The likelihood for internal whistleblowing intentions was only significant among internal auditors' ethical judgments on all the three vignettes. Demographic factors (gender, age, and tenure) and other individual factors (locus of control and organisational commitment) failed to explain the likelihood internal auditors' internal whistleblowing intentions. Findings should aid researchers in their understanding of the determinants of individuals' internal whistleblowing behaviour.
Despite extensive research undertaken on the issue of whistleblowing globally, empirical study in this area is clearly lacking in Malaysia. This paper examines internal whistleblowing intentions among internal auditors in Malaysian organisational settings. A mail survey was conducted to investigate a variety of individual, organisational and situational factors that could influence the internal auditors' ethical decision-making process. Results are generally consistent with predictions based on a model of whistleblowing as a type of prosocial behaviour. Implications of the findings on Malaysian organisations for research and practice are discussed.
International Journal of Applied Statistics and Econometrics, 2018
Organizational wrongdoing incidences have been widely spread throughout the business world. Accounting professionals are the key human resources who find evidence of wrongdoing in firms and have the opportunity to report it. The purpose of this study is to examine the relationship between the perception by accounting professionals concerning valid predictors for whistle-blowing and their preferences in doing so. Using the survey method, 177 responses were collected from Turkish accounting professionals. A partial least square structural equation model was constructed to test both the reliability and validity of the measurement and the structural model. The results showed that the 'ethics and professional benefit' and 'corporate benefit' dimensions of whistle-blowing predictors have significant positive impact on 'internal whistle-blowing'. However, the accountants' perceptions of 'fear of retaliation' and 'corporate benefit' as whistle-blowing predictors have positive influence on 'anonymous whistle-blowing'. Finally, while perception of the accountants about 'fear of retaliation' has a positive relationship for deciding to not blow the whistle, the accountant professionals who have more 'corporate benefit' whistle-blowing perception have less propensity to not blow the whistle.
Identification and Protection of Corporate Whistle-blowers: A Legal Perspective
Journal of Accounting and Finance in Emerging Economies
Purpose: Internal audit, management review, and account reconciliation are popular tools for combating corporate fraud, but whistle-blowing is the most prevalent. Whistle-blowers frequently fear reprisal from coworkers and bosses. That is why they require protection and support. Many international organizations have advocated that countries adopt regulatory frameworks for protecting whistle-blowers. Therefore, the current study investigates the notion of whistle-blowing to compare it to Public Interest Disclosure Act 2017 of Pakistan, which was enacted. It identifies the influence of legal and ethical cultural norms in organizations on whistle-blowing behaviour. Design/Methodology/Approach: Qualitative method was used to analyze statutes, local and international protocols, rules and regulations of Pakistan and developed countries. Findings: The results suggest that the development of legal and ethical culture in a business may inspire whistle-blowing, and whistle-blowers may feel ps...
Creating and Promoting A Culture Of Internal Whistle Blowing in the Workplace
Internal whistle blowing constitutes a very important and influential strategy for curbing misconduct in the workplace. It inspires workers to call attention to moral and legitimate abuses of which they are cognizant, to an internal power to ensure that the challenge is fixed promptly. It reduces injury to the organization in the face of workers by-passing internal machineries and shows employees the significance the organization attaches to the observance of ethics. Nevertheless, possibly due to the nonexistence of a vigorous whistle blowing structure, the practice is not very popular. This paper posits that whistleblowing on wrongdoings in organisations is imperative in averting organization disgrace; disasters and scams so organizations must create and encourage an internal whistleblowing culture to prevent external whistleblowing and its attendant harmful effects. It examines best practices to create a culture that encourages employees to speak up on wrong or unlawful practices and address them before they become fatal to an organization. Employees must be sensitized on the price of silence, being a menace to organization viability. Organization top management must motivate an affirmative approach to whistleblowing by initiating appropriate policies and offering organizational support structures for whistleblowing. Moreover, they must attach stiff penalties to silence especially when severe misconducts occur coupled with compensation for whistleblowers. Moreover, there is need to provide training to all organization members on whistleblowing procedures, ensure prompt probes of reported anxieties. A whistleblowing culture in an organization can improve its Doing Business Report, and Competitiveness Index consequently unwrapping prospective investment chances.
The Management of Whistleblowing
Encyclopedia of Criminal Activities and the Deep Web, 2020
Corporate scandals have cost organizations and economies billions of dollars in direct and indirect costs. Whistleblowing has often been underutilized as a disclosure mechanism for rooting out and managing such illegal and unethical business practices due to the high personal costs on the whistleblower. However, once such issues are managed, whistleblowing has the potential to be a powerful tool in the management of corporate wrongdoing. This article examines the role of whistleblowing in the management of corporate wrongdoing and presents a managerial framework to maximize the effectiveness of whistleblowing. The usefulness of the managerial framework is assessed, and recommendations are made to enhance the effectiveness of whistleblowing.
The effect of situational factors on employees’ whistle-blowing motives: A case study
This research examined the whistle-blowing intentions of an Indonesian state-owned company’s employees by presenting them with several fraud scenarios in order to assess the impact of fraud and situational factors; such as fraud type, materiality, wrongdoer’s awareness, and others’ awareness on employees’ whistle-blowing intentions. The motivation comes from the fact that there is still not much evidence on the factors affecting the intentions of potential whistle-blowers for reporting wrongdoing, particularly in the context of situational factors. The data are collected through the distribution of questionnaires to the employees. The results indicate that employees are more likely to make a report in the following circumstances: theft rather than financial statement fraud; material fraud rather than immaterial fraud; in conditions in which the wrongdoer is aware and when others are aware of the wrongdoing. The findings may become a source of information to enhance the effectiveness of whistle-blowing policies.