PREDICTING WHISTLE-BLOWING INTENTION AMONG SUPERVISORS IN MALAYSIA

The function of whistle-blowing as an effective internal control mechanism has long been accepted around the globe. Several individual factors have been considered as predictive variables of whistle-blowing intention. However, findings are still inconclusive. Using the theory of planned behaviour as a framework, this study examines the relationship between the selected predictive variables (internal locus of control, work experience and ethics training) and whistle-blowing intention. Data were collected randomly from 311 supervisors within large manufacturing companies in Malaysia. Applying multiple regression analysis, results indicated that work experience and ethics training are significantly related to whistle-blowing intention. On the other hand, there is no significant relationship between internal locus of control and whistle-blowing intention. Implications for theory and practice from the findings are discussedwhistle-blowing intention, theory of planned behaviour, internal locus of control, work experience, ethics training, Malaysia

Determinants of Internal Auditors Behavior in Whistle Blowing With Formal Retaliation And Structural Anonimity Line As Moderating Variables (Empirical Study At State-Owned Enterprises In Indonesia)

The research was aimed to test the determinant of auditors internal behavior in whistle blowing with formal retaliation and structural anonimity line as moderating variables. The population of research was 735 internal auditors of entire State-Owned Enterprises in Indonesia. Census methods was applied to collect the data and the samples were 197 among them. Structural Equation Modelling (SEM) aided by Warp PLS 5,0 was used for data processing. The conclusion was that auditors attitude on whistle blowing, subjective norms, and perceived behavioral control positively influenced whistle blowing intention. Whistle blowing intention positively influenced whistle blowing behavior. Structural anonimity line reinforced the relationship between whistle blowing intention and whistle blowing behavior. Formal retaliation weakened the relationship between whistle blowing intention and whistle blowing behavio

Impact of organizational trust on whistle-blowing intentions at Malaysian enforcement agency

The current study investigated the relationship between organizational trust and whistle-blowing intentions at Malaysian Enforcement Agency.For further analysis, a sample of 346 employees working at Malaysian Enforcement Agency was selected using proportionate stratified random sampling method. For measurement, this study has adopted by Bews (1999) for organizational trust and adopted by Park (2009) for whistle-blowing intentions. To show the relationship between organizational trust and whistle-blowing intentions, this study using factor analysis and correlation analysis.The data analysis indicated that the organizational trust has positive impact on whistle-blowing intentions.The results also showed that organizational trust has significant and positive impact on the dimension of whistle-blowing intentions (internal whistle-blowing and external whistle-blowing)

Towards A Cross-Cultural Model Of Online Whistle-Blowing Systems Use

Whistle-blowing has long been an important organizational phenomenon that improves organizations in the long-run. Online whistle-blowing systems are becoming increasingly prevalent channels for reporting organizational abuses. Given that the Sarbanes-Oxley Act and similar financial laws throughout the world require multi-national firms to establish whistle-blowing procedures and systems, whistle-blowing research is even more important (Ernst & Young 2009). Existing whistle-blowing theory does not explicitly predict risk, trust, cross-cultural considerations, nor use of anonymous, online whistle-blowing systems. Yet, all of these are key considering in the whistle-blowing act and whistle-blowing in general. Furthermore, unless these systems are further understood, they may not be used, or they may not be used properly. This is a particular problem for multi-national financial firms that increasingly need to comply with whistle-blowing regulations. This research-in-process paper details our plans to create and extend baseline whistle-blowing theory, by uniquely considering anonymity, risk, trust, and cross-cultural considerations in using whistle-blowing systems. The model will be rigorously testing using working professionals in the USA, Middle East, and China. We propose our design and measures for testing the model

Whistle blowing

For law enforcement purposes corruption and fraud are hard battles. Because of the highly secretive and premeditated nature of these crimes, prime witnesses are themselves often implicated in the fraudulent transaction. Promises of immunity and whistle blowing rewards are often required to resolve these information asymmetries. These insights have set a trend, both in scholarship and law enforcement practice, towards reward-based approaches (carrots), as an alternative or complement to punishment based deterrence (sticks). Applying the U.S. False Claims Act (FCA) as an analytical framework, we provide a critical review of the efficiency limitations of whistle blowing. More specifically, the formal model developed in this contribution, reveals a gap between social and private incentives in whistle blowing, both with regard to the decision to pursue litigation and the timing of whistle blowing. First, while an insider will blow the whistle whenever his expected recovery exceeds the expected costs of litigation, enforcement agencies seek to optimise enforcement in the long run. The autonomy of whistle blowers to pursue claims without government involvement, weakens the government’s bargaining position and obstructs the government’s ability to weigh in wider factors of enforcement (the effect of an individual case on a multiple claim suit, etc.). Second, whenever rewards are tied to recovery, bounty awards create a perverse incentive whereby fraudulent practices are not terminated at a socially optimal point in time. The potential race among whistle blowers cannot mitigate this effect fully because the stigma and loss of opportunities on the job market act as internal constraints on whistle blowing

Role of Internal Auditors in Whistle Blowing Program to Reduce Corporate Fraud

According to Fraud Survey 2004 by KPMG Malaysia, 62 percent of respondents felt that fraud is a serious problem for Malaysian business. The survey finding also highlights the importance of implementing an independent communication channel for whistle blowing. Whistle blowing is one of the elements in corporate governance and it can play an important role in reducing fraud occurrence. Internal auditors can help Audit Committee in creating effective whistle blowing program that protect the employees and enable organisations to address fraud before they become public knowledge. This study examines the extent of whistle blowing complaints received by internal auditors based on survey responses from 213 Chief Audit Executive of Malaysian Public Listed Companies (PLC). Within the past two years, only 18 percent of Chief Audit Executive surveyed received genuine whistle-blowing complaints from internal whistle blower and only 14 percent of Chief Audit Executive surveyed received genuine whistle-blowing complaints from external whistle blower. The lack of whistle blowing program implementation in Malaysian companies is possibly due to absence of legislation in Malaysia that forces the establishment of whistle blowing program. Although the Securities Industry Act (1983) and Capital Market and Services Act 2007 (CMSA) provides the employees, independent auditors and key officers' protection when they whistle blow, the act does not compel a whistle blowing program. On the effectiveness of whistle blowing program, this study shows the CAE perception about the effectiveness of code of ethics in their organisation is negatively related to the fraud occurrence, that is the more the code is perceived as effective, the lesser fraud incidents will occur

My Lips are Sealed: Whistle-blowing as a Function of Collective and Interpersonal Connections to Social Groups

Persons experience attachment to groups because they (a) share those aspects (characteristics, goals, values) that define the group and/or (b) have close relationships with the group members. Two studies examined whether such collective and interpersonal connections affect whistle-blowing (reporting ingroup wrongdoing). We hypothesized that collective connection would promote whistle-blowing via concern for the group’s welfare and interpersonal connection would inhibit whistle-blowing via fear of lost relationships. In Study 1 (N =127) participants listed up to eight ingroups and, for each, rated their collective connection, interpersonal connection, and likelihood of whistle-blowing. In Study 2, participants (N =153) were prompted to think about an ingroup defined by a factorial crossing of collective connection (weak, strong) and interpersonal connection (weak, strong) and rated their likelihood of whistle-blowing. In both studies, whistle-blowing was negatively related to the interpersonal connection and unrelated to the collective connection. Strong interpersonal connections to group members undermine whistle-blowing and facilitate continued ingroup wrongdoing

THE ECONOMIC AND BEHAVIORAL EFFECTS OF OFFERING FINANCIAL REWARDS FOR INTERNAL WHISTLE-BLOWING

I compare two approaches employers can use to induce workers to blow the whistle on internal misconduct such as co-worker theft. Employers can improve control over their resources and mitigate their substantial economic losses from internal misconduct if they can induce workers who observe such misconduct to report it. Prior research suggests that non-financial motivations drive worker whistle-blowing. Consistent with this perspective, employers in practice rarely offer workers explicit financial rewards for whistle-blowing but instead rely on workers’ non-financial motivations to blow the whistle. My dissertation compares the economic and behavioral effects of this approach relative to offering workers an explicit financial reward for whistle-blowing. My study examines whistle-blowing using both analytical and experimental research methods. First, I formulate an analytical model of whistle-blowing that integrates behavioral theory to help explain the conditions under which employers would prefer to induce whistle-blowing by relying on workers’ non-financial motivation versus offering workers an explicit financial reward. I find that neither approach strictly dominates, but rather that the optimal approach depends on the social norms that govern the interactions between workers and employers. My model also predicts that the approaches are mutually exclusive, i.e., employers will induce whistle-blowing by relying either on workers’ non-financial motivations or on their financial self-interest, but not on both. Second, I conduct experimental labor markets to determine whether employers can improve their welfare by offering workers an explicit financial reward for whistle-blowing and the behavioral consequences of doing so. I find that employers can induce more whistle-blowing and earn higher payoffs by offering workers explicit financial rewards for whistle-blowing, but that this comes at the cost of decreasing workers’ non-financial motivation to blow the whistle. My study contributes to the theoretical understanding of whistle-blowing and provides practical insights that will help employers decide whether to offer workers an explicit financial reward for whistle-blowing. In turn, this should help employers design better incentive contracts to induce whistle-blowing and improve their welfare. I also discuss some potentially fruitful avenues for future research on whistle-blowing that could extend the analytical and experimental findings documented in my study

Pengaruh Komitmen Profesi dan Self Efficacy terhadap Niat untuk Melakukan Whistle Blowing

Penelitian ini untuk mengetahui: (1) Pengaruh komitmen profesi terhadap niat untuk melakukan whistle blowing, (2) Pengaruh self efficacy terhadap niat untuk melakukan whistle blowing, (3) Pengaruh komitmen profesi dan self efficacy terhadap niat untuk melakukan whistle blowing. Populasi adalah bagian keuangan rumah sakit di Kabupaten Purworejo berjumlah 76 orang. Teknik pengumpulan data menggunakan kuesioner. Teknik sampling menggunakan sampel jenuh. Jumlah sampel terkumpul 51 orang. Hasil penelitian menunjukkan (1) Komitmen profesi berpengaruh positif terhadap niat untuk melakukan whistle blowing ditunjukkan nilai konstanta 33,438, nilai R 0,454 dan nlai t hitung 3,563. (2) Self efficacy berpengaruh positif terhadap niat untuk melakukan whistle blowing ditunjukkan nilai konstanta 30,214, nilai R 0,319 dan nilai t hitung 2,356. (3) Komitmen profesi dan self efficacy secara bersama-sama berpengaruh positif terhadap niat untuk melakukan whistle blowing ditunjukkan nilai R 0,541 dan nilai F hitung 9,942