Research on organizational epistemic vice alleges that some organizations are epistemically malevolent, i.e. they habitually harm others by deceiving them. Yet, there is a lack of empirical research on epistemic malevolence. We connect the discussion of epistemic malevolence to the empirical literature on organizational deception. The existing empirical literature does not pay sufficient attention to the impact of an organization’s ability to control compromising information on its deception strategy. We address this gap by studying eighty high-penalty corporate misconduct (...) cases between 2000 and 2020 in the United States. We find that organizations use two different strategies to deceive: Organizations ‘sow doubt’ when they contest information about them or their impacts that others have access to. By contrast, organizations ‘exploit trust’ when they deceive others by obfuscating, concealing, or falsifying information that they themselves control. While previous research has focused on cases of ‘sowing doubt’, we find that organizations ‘exploit trust’ in the majority of cases that we studied. This has important policy implications because the strategy of ‘exploiting trust’ calls for a different response from regulators and organizations than the strategy of ‘sowing doubt’. (shrink)

In terms of reversal theory, both dominant and alternative explanations of the initiation of organizational wrongdoing assume that its perpetrators act in a telic state of mind. This leaves us with explanations of organizational wrongdoing that are insufficiently appreciative of the agent’s experience. The human mind can be creative and imaginative, too, and people can fully immerse in their activity. We suggest that the paratelic state of mind is relevant for the phenomenological understanding of the initiation (...) of original, creative, daring courses of action, and that the paratelic state of mind may originate courses of action that social control agents, at a later moment in time, may label as organizational wrongdoing. Our proposal is especially relevant when organizational agents are on a course of exploration, facing uncertainty, complexity, and unavailability of information. (shrink)

In terms of reversal theory, both dominant and alternative explanations of the initiation of organizational wrongdoing assume that its perpetrators act in a telic state of mind. This leaves us with explanations of organizational wrongdoing that are insufficiently appreciative of the agent’s experience. The human mind can be creative and imaginative, too, and people can fully immerse in their activity. We suggest that the paratelic state of mind is relevant for the phenomenological understanding of the initiation (...) of original, creative, daring courses of action, and that the paratelic state of mind may originate courses of action that social control agents, at a later moment in time, may label as organizational wrongdoing. Our proposal is especially relevant when organizational agents are on a course of exploration, facing uncertainty, complexity, and unavailability of information. (shrink)

Recent financial fraud legislation such as the Dodd–Frank Act and the Sarbanes–Oxley Act (U.S. House of Representatives, Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, [H.R. 4173], 2010 ; U.S. House of Representatives, The Sarbanes–Oxley Act of 2002, Public Law 107-204 [H.R. 3763], 2002 ) relies heavily on whistleblowers for enforcement, and offers protection and incentives for whistleblowers. However, little is known about many aspects of the whistleblowing decision, especially the effects of contextual and wrongdoing attributes on (...) organizational members’ willingness to report fraud. We extend the ethics literature by experimentally investigating how the nature of the wrongdoing and the awareness of those surrounding the whistleblower can influence whistleblowing. As predicted, we find that employees are less likely to report: (1) financial statement fraud than theft; (2) immaterial than material financial statement fraud; (3) when the wrongdoer is aware that the potential whistleblower has knowledge of the fraud; and (4) when others in addition to the wrongdoer are not aware of the fraud. Our findings extend whistleblowing research in several ways. For instance, prior research provides little evidence concerning the effects of fraud type, wrongdoer awareness, and others’ awareness on whistleblowing intentions. We also provide evidence that whistleblowing settings represent an exception to the well-accepted theory of diffusion of responsibility. Our participants are professionals who represent the likely pool of potential whistleblowers in organizations. (shrink)

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. (shrink)

How a person perceives a wrongdoing being committed by a coworker will affect whether the incident is reported within the organization. A significant factor that may influence the decision to report a wrongdoing is the perceived intentionality of the wrongdoer. This study sought to examine if differences in perceptions of a wrongdoing could affect the disclosure of unethical behavior. Three hundred seventy-two registered nurses (N = 372) responded to a survey consisting of both intentional and unintentional wrongdoings (...) that could occur by a nurse. Results of a paired t-test were as predicted. More wide ranging revelations found that respondents were more likely to discuss the unintentional wrongdoings with the wrongdoer in lieu of officially reporting to an immediate supervisor, or a member of upper management. Discussion, limitations, and suggestions for future research are provided. (shrink)

When successful and ethical managers are alerted to possible organizational wrongdoing, they take corrective action before the problems become crises. However, recent research [e.g., Rynes et al. (2007, Academy of Management Journal50(5), 987–1008)] indicates that many organizations fail to implement evidence-based practices (i.e., practices that are consistent with research findings), in many aspects of human resource management. In this paper, we draw from years of research on whistle-blowing by social scientists and legal scholars and offer concrete suggestions to (...) managers who are interested in encouraging internal reporting of problems requiring attention, and to observers of questionable activity who are considering reporting it. We also identify ways that research suggests policy-makers can have a more positive influence. We hope that these suggestions will help foster evidence-based practice regarding whistle-blowing. (shrink)

The literature on organizational ethicality to date has focused primarily on elements of the cultural, social, and political factors that enhance positive behaviors, interspersed with isolated accounts of malfeasance and wrongdoing. This treatise defines the anatomy of organizational dysfunction as a matter of ethicality, reframing the relationship from individual transgression to the organization itself. It is argued that the structure of an organization predisposes in large part whether it is itself conducive or prohibitive to unethical acts. Our (...) approach allows for a new stream of ethics research whose focus is how an organization functions rather than on the specific acts of those within it. (shrink)

The stigma of reporting wrongdoing at work: When doing right is perceived as wrong The act of reporting unethical, illegal and illegitimate practices at work, whistleblowing, can be associated with a stigma for the individual in question. This article presents the stigmatizing position of reporting wrongdoing at work, types of wrongdoing and individual antecedents. Since empirical studies have shown very few systematic results regarding individual differences, one way to decrease societal stigma can be to relate the act (...) of reporting to other known acts that are perceived upon as more positive within society. We therefore also discuss similarities and differences between the idea of whistleblowing and other concepts such as Organizational Citizenship Behaviour, in-role, and extra-role behaviour before we make some concluding remarks. (shrink)

Student cheating and reporting of that cheating represents one form of organizational wrong-doing and subsequent whistle-blowing, in the context of an academic organization. Previous research has been hampered by a lack of information concerning the validity of survey responses estimating the incidence of organizational wrongdoing and whistle-blowing. An innovative method, the Randomized Response Technique (RRT), was used here to assess the validity of reported incidences of wrongdoing and whistle-blowing. Surprisingly, our findings show that estimates of these (...) incidences did not vary significantly when RRT questionnaire results were compared to those obtained from standard surveys. In fact, a large number of business undergraduates admitted cheating while only a small percentage reported peers'' cheating when they observed it. These results should be sobering for managers and their implications are considered in some detail. (shrink)

Response to wrongdoing is modeled as a decision process in an organizational context. The model is grounded in theory of risk, ambiguity, and informational influences on decision making. Time pressure, inadequate information and coworker influences are addressed. Along the way, a handful of propositions are provided which emphasize influences on the actual choice between response options.

Research on whistleblowing has not yet provided a finite set of variables which have been shown to influence an employee's decision to report wrongdoing. Prior research on business ethics suggests that ethical business decisions are influenced by both organizational as well as intrapersonal variables. As such, this paper attempts to predict the decision to whistleblow using organizational and intrapersonal variables. External whistleblowing was found to be significantly related to supervisor support, informal policies, gender, and ideal values. External (...) whistleblowing was not found to be significantly predicted by formal policies, organizational tenure, age, education, satisfaction, or commitment. (shrink)

Research in sociology and organization studies has consistently documented the tendency for organizations to develop wrongdoing practices that are at odds with the legal and moral frameworks of society. Often, this wrongdoing acquires a degree of normalization where it is endorsed, encouraged, and accepted throughout the organization. Such normalized wrongdoing can have severe negative effects on the whistleblowing opportunities of employees. While these effects are intuitively easy to understand, we still lack an understanding of the significant variation (...) that exists across situations of normalized wrongdoing and how that variation may affect potential whistleblowers. To advance such an agenda, the paper analyzes 14 whistleblower autobiographies. Building on work on normalized wrongdoing within corruption, fraud, and management studies and Niklas Luhmann’s theories on organization, the analysis finds that normalized wrongdoing in the autobiographies appears in different intensities that depend on the role of management, the benefits organizations obtain from wrongdoing, and the extent to which wrongdoing norms are internalized by employees. The paper builds on these distinctions to suggest a continuum of normalized wrongdoing from ‘weak’ to ‘strong.’ Understanding this variation offers a new set of tools to assess the organizational realities that concerned employees must navigate in when they attempt to resist and address situations of normalized wrongdoing. (shrink)

Codes of ethics are being increasingly adopted in organizations worldwide, yet their effects on employee perceptions and behavior have not been thoroughly addressed. This study used a sample of 613 management accountants drawn from the United States to study the relationship between corporate and professional codes of ethics and employee attitudes and behaviors. The presence of corporate codes of ethics was associated with less perceived wrongdoing in organizations, but not with an increased propensity to report observed unethical behavior. Further, (...) organizations that adopted formal codes of ethics exhibited value orientations that went beyond financial performance to include responsibility to the commonweal. In contrast to corporate codes of ethics, professional codes of ethical conduct had no influence on perceived wrongdoing in organization nor these codes affect the propensity to report observed unethical activities. (shrink)

Whistleblowing by employees to regulatory agencies and other parties external to the organization can have serious consequences both for the whistleblower and the company involved. Research has largely focused on individual and group variables that affect individuals'' decision to blow the whistle on perceived wrongdoing.This study examined the relationship between selected organizational characteristics and the perceived level of external whistleblowing by employees in 240 organizations. Data collected in a nationwide survey of human resource executives were analyzed using analysis (...) of variance. (shrink)

There has recently been a growth in research that examines how corporations respond to allegations of unethical actions. Although scholars have gained much insight about the range of responses available to and used by organizations, there has been almost no study of why firms choose one response over another. In this article, the authors present a framework of likely organizational response choices to allegations of wrongdoing; we propose that response choices are based on the degree of reputational risk (...) from stakeholder withdrawal of support and on perceived threats to the firm’s primary or secondary identity. (shrink)

In this study, we draw on moral cleansing theory to investigate the consequence of unethical pro-organizational behavior from the perspective of the actors. Specifically, we hypothesize that after conducting UPB, people may feel guilty and tend to cleanse their wrongdoings by providing suggestions or identifying problems at work. We further hypothesize that the above relationship is moderated by the actor’s moral identity symbolization. We conducted three studies, including experiment and surveys, to test our hypotheses. Results of these studies show (...) consistent support to our hypotheses. In particular, individuals reported more felt guilt after conducting UPB, and they tended to compensate with more prohibitive and promotive voice subsequently. In addition, the indirect relationship from UPB acting to both voice behaviors via felt guilt was stronger for people with a high level of moral identity symbolization. Theoretical and practical implications are discussed. (shrink)

Whistleblowers have significantly shaped the state of contemporary society; in this context, this research sheds light on a persistently neglected research area: what are the key determinants of whistleblowing within government agencies? Taking a unique methodological approach, we combine evidence from two pieces of fieldwork, conducted using both primary and secondary data from the US and Indonesia. In Study 1, we use a large-scale survey conducted by the US Merit Systems Protection Board (MSPB). Additional tests are conducted in Study 1, (...) making comparisons between those who have and those who do not have whistleblowing experience. In Study 2, we replicate the survey conducted by the MSPB, using empirical data collected in Indonesia. We find a mixture of corroboration of previous results and unexpected findings between the two samples (US and Indonesia). The most relevant result is that perceived organizational protection has a significant positive effect on whistleblowing intention in the US sample, but a similar result was not found in the Indonesian sample. We argue that this difference is potentially due to the weakness of whistleblowing protection in Indonesia, which opens avenues for further understanding the role of societal cultures in protecting whistleblowers around the globe. (shrink)

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. (shrink)

Incidences of organizational wrongdoing have become wide spread throughout the whole business world. The management of organizational wrongdoings is of growing concern in organizations globally, since these types of acts can be detrimental to financial well being. Wrongdoing occurs within organizational settings and organizational members commonly have knowledge of and thus the opportunity to report the wrongdoing. An employee’s decision to report individual or organizational misconduct, i.e. blow the whistle, is a complex (...) phenomenon that is based upon organizational, situational and personal factors. The purpose of this study is to examine the relationship between value orientations of individuals and choices for particular whistleblowing modes. Our results show that there are significant relationships between these variables. We contribute to the extant literature by choosing Turkey as context as most studies have been conducted in the US and Europe, and little has been reported about the actions taken by employees in non-Western cultures when they observe wrongdoing in their organizations. (shrink)

The issues of organizational wrongdoing damage organizational performance and limit the development of organizations. Although organizational members may know the wrongdoing and have the opportunity to blow the whistle, they would keep silent because of the interpersonal risks. However, leaders can play an important role in shaping employee whistleblowing. This study focuses on discovering the mechanisms of how authentic leaders influence employee whistleblowing with a sample from China. Results demonstrate that authentic leadership is positively related (...) to internal whistleblowing. Team psychological safety partly mediates the relationship between authentic leadership and internal whistleblowing. Personal identification partly mediates the relationship between authentic leadership and internal whistleblowing. The study contributes to the extant theory by filling the gap between leadership and whistleblowing. (shrink)

What makes an external whistleblower effective? Whistleblowers represent an important conduit for dissensus, providing valuable information about ethical breaches and organizational wrongdoing. They often speak out about injustice from a relatively weak position of power, with the aim of changing the status quo. But many external whistleblowers fail in this attempt to make their claims heard and thus secure change. Some can experience severe retaliation and public blacklisting, while others are ignored. This article examines how whistleblowers can succeed (...) in bringing their claims to the public’s attention. We draw on analyses of political struggle by Ernesto Laclau and Chantal Mouffe. Specifically, we propose that through the raising of a demand, the whistleblowing subject can emerge as part of a chain of equivalences, in a counter-hegemonic movement that challenges the status quo. An analysis of a high-profile case of tax justice whistleblowing-that of Rudolf Elmer-illustrates our argument. Our proposed theoretical framing builds upon and contributes to literature on whistleblowing as organizational parrhesia by demonstrating how parrhesiastic demand might lead to change in public perception through the formation of alliances with other disparate interests—albeit that the process is precarious and complex. Practically, our article illuminates a persistent concern for those engaged in dissensus via whistleblowing, and whose actions are frequently ignored or silenced. We demonstrate how such actions can move towards securing public support in order to make a difference and achieve change. (shrink)

This paper employs theory of normal organizational wrongdoing and investigates the joint effects of management tone and the slippery slope on financial reporting misbehavior. In Study 1, we investigate assumptions about the effects of sliding down the slippery slope and tone at the top on financial executives’ decisions to misreport earnings. Results of Study 1 indicate that executives are willing to engage in misreporting behavior when there is a positive tone set by the Chief Financial Officer, regardless of (...) the presence or absence of a slippery slope. A negative tone set by the CFO does not facilitate the transition from minor indiscretions to financial misreporting. In Study 2, we find that auditors evaluating executives’ decisions under the same conditions as those in Study 1 do not react to the slippery slope condition, but auditors assess higher risks of fraud when the CFO sets a negative tone. Overall, our results indicate that many assumptions about the slippery slope and tone at the top should be questioned. We provide evidence that pro-organizational behaviors and incrementalism yield new insights into the causes of ethical failures, financial misreporting behavior, and failures of corporate governance mechanisms. (shrink)

Who blows the whistle — a loner or a well-liked team player? Which of them is more likely to lead a successful opposition to perceived organizational wrongdoing? The potential influence of co-worker pressures to conform on whistle-blowing activity or the likely effects of whistle-blowing on the group have not been addressed. This paper presents a preliminary model of whistle-blowing as an act of nonconformity. One implication is that the success of an opposition will depend on the characteristics of (...) the whistle-blower and how the complaint is pursued. Specific hypotheses and general suggestions for future research and practice are offered. (shrink)

How do people perceive the minds of organizations? Existing work on organizational mind perception highlights two key debates: whether organizational groups are ascribed more agency than experience, and whether people are really perceiving minds in organizational groups at all. Our current paper and its data weigh in on these debates and suggest that organizations can indeed be ascribed experiential minds. We present a “member and goals” framework for systematically understanding the mind perception of organization. This framework suggests (...) that people can perceive the organizational mind through its elemental building blocks: members (people who form the organization) and goals (its aims). Four studies reveal that people ascribe agency and experience to organizations based on whether the members of organizations and the goals of the organization are characterized by agency or experience. Study 1 finds that past work on mind perception often examines for‐profit corporations, which consist of agentic members (corporate professionals) and agentic goals (market competition). Studies 2 and 3 reveal that when an organization with members and goals high (vs. low) in experience, people imbue its mind with perceived experience—equal to that of a person—and that even emotions low in warmth (i.e., anger) can imbue an organization with such perceptions. Study 4 shows the moral consequences of emphasizing experience: after organizational wrongdoing, experiential organizations are seen to deliver more sincere apologies and are more forgiven. (shrink)

Do you want to make sure you · Don’t invest your money in the next Enron? · Don’t go to work for the next WorldCom right before the crash? · Identify and solve problems in your organization before they send it crashing to the ground? Marianne Jennings has spent a lifetime studying business ethics---and ethical failures. In demand nationwide as a speaker and analyst on business ethics, she takes her decades of findings and shows us in The Seven Signs of (...) Ethical Collapse the reasons that companies and nonprofits undergo ethical collapse, including: · Pressure to maintain numbers · Fear and silence · Young ’uns and a larger-than-life CEO · A weak board · Conflicts · Innovation like no other · Belief that goodness in some areas atones for wrongdoing in others Don’t watch the next accounting disaster take your hard-earned savings, or accept the perfect job only to find out your boss is cooking the books. If you’re just interested in understanding the (not-so) ethical underpinnings of business today, The Seven Signs of Ethical Collapse is both a must-have tool and a fascinating window into today’s business world. (shrink)

Managers often ask why their firm should have an ethics program, especially if no one has complained about unethical behavior. The pursuit of business ethics can cost money, they say. It can lose sales to less scrupulous competitors and can drain management time and energy. But as Harvard business professor Francis Aguilar points out, ethics scandals (such as over Beech-Nut's erzatz "apple juice" or Sears's padded car repair bills) can severely damage a firm, with punishing legal penalties, bad publicity, and (...) irreparably injured customer relations. Equally important if less obvious, unethical behavior can undermine a firm's organizational spirit. On the other hand, Aguilar argues, in a well run firm, ethical programs can actually enhance corporate performance, strengthening the company at every level and supercharging employee risk taking and innovation. In Managing Corporate Ethics, Aguilar shows managers how to create ethical programs within their organizations that not only discourage large-scale wrongdoing, but can contribute substantially to the achievement of corporate excellence. Aguilar's program is down-to-earth and comprehensive, and based on his extensive research on highly successful, ethical companies, both large and small. He recommends action on three fronts: first, get senior management to provide effective ethical leadership; second, set up an ethics program that promotes concern for the interests of people affected by the firm's operations and that provides safeguards against corrupting business pressures; and third, staff the company with ethical people and surround the organization with ethical advisors (including legal, financial, accounting, tax, and marketing consultants). To illuminate this three-step program, Aguilar incorporates the lessons learned in his in-depth study of ten prominent firms with proven successful ethics programs--among them Hewlett-Packard, Johnson & Johnson, Nucor Steel, Cray Research, ServiceMaster, and Texas Instruments. He examines Lincoln Electric's attention to compensation and job security to ensure quality products and to reduce the pressure or temptation to act unethically. He shows how General Mills, while pushing product line managers to compete aggressively, uses corporate staff units to guard against illegal or unacceptable claims (testing cake recipes, for example, to see if a product's quality fails under the less-than-perfect conditions of a normal kitchen). And he details how Armstrong World Industries uses pep talks, inspirational stories, role models, and ready access to management to promote ethical standards among employees. Throughout, Aguilar demonstrates convincingly that an ethical program pays dividends: that employees, suppliers, customers, and the community at large know when they are being treated in a positive and constructive manner, and are likely to respond in kind. Packed with real life examples of successful (and failed) ethical programs, Managing Corporate Ethics is a valuable roadmap to an often overlooked source of business success. (shrink)

This paper develops the concept of the ‘continuum of destructiveness’ in relation to organizational corruption. This notion captures the slippery slope of wrongdoing as actors engage in increasingly dubious practices. We identify four kinds of individuals along this continuum in corrupt organizations, who range from complete innocence to total guilt. They are innocent bystanders, innocent participants, active rationalizers and guilty perpetrators. Traditional explanations of how individuals move from bystander status to guilty perpetrators usually focus on socialization and institutional (...) factors. In addition to these factors, we propose that the very distance between an act and its ethical consequences (ethical distance) may also play a determining role – if not always in the same way – in the transition process. Having developed this conceptual argument, we conclude with a discussion of managerial and research implications. (shrink)

Forgiveness has been a central issue for humankind since ancient times; it emerged in theology, but in recent decades it has received significant attention from different disciplines, such as philosophy and psychology. More recently, forgiveness has received attention also from organizational and managerial studies, particularly, in studying how individuals respond to interpersonal offenses, or perceived harm and wrongdoing in the workplace. Forgiveness is a complex concept, as it can be understood as a family of related constructs and can (...) be analyzed at different levels. Even if social sciences have widely recognized that the nature of forgiveness can be both conditional and unconditional, the notions of conditionality and unconditionality have not yet received sufficient study, especially in organizational and managerial fields. In these fields, forgiveness has been predominantly studied under a psychological approach, looking for the conditions under which it may occur in the workplace. Unconditional forgiveness has received less attention: with a few exceptions, managerial and organizational literature has limited the conceptualization of forgiveness, weakening its scope and probably not catching a relevant part of forgiving experiences in the workplace. This article proposes to follow a more comprehensive approach to forgiveness in the workplace, according to the social sciences field, which can take into account both conditionality and unconditionality. It focuses on unconditional forgiveness according to Continental philosophy, in particular, to the thought of Jacque Derrida and Paul Ricoeur. Through their contributions, the unconditionality of forgiveness is deepened, and the implications of considering both conditional and unconditional forgiveness are discussed. (shrink)

Whistleblowing” has entered the scholarly and the public debate as a way of describing the exposure by the member of an organization of episodes of corruption, fraud, or general abuses of power within the organization. We offer a critical survey of the main normative theories of whistleblowing in the current debate in political philosophy, with the illustrative aid of one of the epitomic figures of a whistleblower of our time: Edward Snowden. After conceptually separating whistleblowing from other forms of (...) class='Hi'>wrongdoing disclosures, we introduce and discuss two families of normative views of this practice: the “Extrema Ratio” and the “Deontic” views. We show how the two views can be usefully considered in tandem to offer an all-round assessment of the moral justification of whistleblowing either as an extraordinary individual conscientious act of indictment or as an ordinary dutiful organizational practice of answerability that enables the capacity of self-correction of an organization. (shrink)

Recognizing gaps in our present understanding of leader apologies, this investigation examines how followers appraise leader apologies and how these perceptions impact work-related outcomes. Results indicate that followers who viewed their leader as trustworthy or caring before a leader wrongdoing were more likely to perceive their leader’s apology to be sincere, as compared to followers who previously doubted their leader’s trustworthiness and caring. Attributions of apology sincerity affected follower reactions, with followers perceiving sincere apologies reporting greater trust in leadership, (...) satisfaction with supervision, leader–member exchange quality, affective organizational commitment, and forgiveness than those reporting insincere or no apologies. A mediation model was supported, showing that attributions of apology sincerity fostered perceptions of humility, which enhanced perceptions of transformational leadership, and consequently garnered more positive follower reactions. (shrink)

Previous studies investigating reports of corporate or individual wrongdoing have failed to examine the effects of an organization's structure upon the decision to blow the whistle. This paper suggests that an organization's structure may perform a significant role in the decision to report versus not report an observed wrongdoing. Five organizational structures were examined in regards to their effectiveness in encouraging or discouraging observers of unethical conduct channels for reporting such behavior. Discussion and implications are provided.

Previous studies investigating reports of corporate or individual wrongdoing have failed to examine the effects of an organization's structure upon the decision to blow the whistle. This paper suggests that an organization's structure may perform a significant role in the decision to report versus not report an observed wrongdoing. Five organizational structures (that is, centralized, matrix, horizontal, hybrid, and divisional) were examined in regards to their effectiveness in encouraging or discouraging observers of unethical conduct channels for reporting (...) such behavior. Discussion and implications are provided. (shrink)

This paper explores the possible impact of the recent legal developments on organizational whistleblowing on the autonomy and responsibility of whistleblowers. In the past thirty years numerous pieces of legislation have been passed to offer protection to whistleblowers from retaliation for disclosing organisational wrongdoing. An area that remains uncertain in relation to whistleblowing and its related policies in organisations, is whether these policies actually increase the individualisation of work, allowing employees to behave in accordance with their conscience and (...) in line with societal expectations or whether they are another management tool to control employees and protect organisations from them. The assumptions of whistleblower protection with regard to moral autonomy are examined in order to clarify the purpose of whistleblower protection at work. The two extreme positions in the discourse of whistleblowing are that whistleblowing legislation and policies either aim to enable individual responsibility and moral autonomy at work, or they aim to protect organisations by allowing them to control employees and make them liable for ethics at work. (shrink)

Neonatal professionals encounter many ethical challenges especially when it comes to interventions at the limit of viability (weeks 22–25 of gestation). At times, these challenges make the moral dilemmas in neonatology tragic and they require a particular set of intellectual and moral virtues. Intellectual virtues of episteme and phronesis, together with moral virtues of courage, compassion, keeping fidelity to trust, and integrity were highlighted as key virtues of the neonatal professional. Recognition of the role of ethics requires a recognition that (...) answering the obvious question (what shall we do?) does not always suffice. Acknowledging the tragic question (is any of the alternatives open to us free from serious moral wrongdoing) and recognizing the ethical dilemmas, where the lines between right and wrong are blurred, leads to actions taken towards establishing ethics frameworks to support decision-making. In neonatology units, such organizational support can help in allowing the team members to recognize the ethical dilemmas, avoid moral distress, and improve team cohesion and the quality of care provided. Only when the organizational structure allows ethical dilemmas to be recognized, adequate decisions can be made. (shrink)

This article originally advances the field of organizational whistleblowing by empirically investigating the suitability of the four elements of the fraud diamond as a means to understand the intention to disclose wrongdoing through virtual channels. This article also makes a contribution on the theme of whistleblowing as it relates to customers, an under-studied, however, relevant stakeholder in this field. The main findings of the article are as follows: the four elements of the fraud diamond as they relate to (...) whistleblowing—a combination of pressure, financial incentive, opportunity and rationalization, and capability—can explain the intentions behind customer reports of wrongdoing; online social media channels are customers’ preferred means of whistleblowing; the elements of opportunity and capability are strongly correlated with the use of social media as a method of disclosing wrongdoing; and virtual channels can be useful for whistleblowers in order to avoid potential retaliation. Unique managerial and academic implications of these research findings are also discussed, extending the layers of knowledge on whistleblowing in organizations. (shrink)

With the rise of incivility in organizational settings, coupled with an increase in discriminatory behavior around the world, we explain how these concerns have merged to become a pervasive workplace ethical issue. An ethical-decision making model is presented that is designed to help employees address issues of incivility with a moral response action, using Islamophobia and/or anti-Muslimism as an example. By adopting a proactive moral strength-based approach to embrace and address this issue, we hope to promote respect while also (...) mitigating the lack of its presence. We explicate potential cognitive and affective influences that support an organizational member’s desire and decision to respond to incivility in a reverential manner. Given the propensity for employees to turn away, become apathetic, or to simply ignore wrongdoing, scholars need to illustrate how a path to respectful behavior can be achieved. Our model highlights variables like group norms and anticipated emotions, punctuated by different forms of self-regulation. A Kantian view, underscoring the worth of every person, underpins our appeal. (shrink)

Due to the economic globalization which is characterized with business scandals, scholars and practitioners are increasingly engaged with the implementation of codes of ethics as a regulatory mechanism for stimulating ethical behaviours within an organization. The aim of this study is to examine various organizational practices regarding the effective implementation of codes of ethics within construction contracting companies. Views on ethics management in construction organizations together with the recommendations for improvement were gleaned through 19 semi-structured interviews, involving construction practitioners (...) from various construction companies in Hong Kong. The findings suggested some practices for effective implementation of codes of ethics in order to diffuse ethical behaviours in an organizational setting which include; introduction of effective reward schemes, arrangement of ethics training for employees, and leadership responsiveness to reported wrongdoings. Since most of the construction companies in Hong Kong have codes of ethics, emphasis is made on the practical implementation of codes within the organizations. Hence, implications were drawn from the recommended measures to guide construction companies and policy makers. (shrink)

The Sarbanes–Oxley Act of 2002 requires company executives to certify financial statements and internal controls as a means of reducing fraud. Many companies have operationalized this by instituting a sub-certification process and requiring lower-level managers to sign certification statements. These lower-level organizational members are often the individuals who are aware of fraud and are in the best position to provide information on the fraudulent act. However, the sub-certification process may have the effect of reducing employees’ intentions to report (...) class='Hi'>wrongdoing. We suggest that subordinates with knowledge of a superior who committed a fraudulent act and certified that there is no fraud will feel less personal responsibility to report the act, thus, decreasing reporting intentions. Additionally, we suggest that if the fraud is discovered subsequent to the reports being filed with the Securities and Exchange Commission, employees will perceive lower management responsiveness to investigate the fraud, which will reduce intentions to report. Using an experimental approach, we manipulate two between-participant variables: the presence or absence of sub-certification by the transgressor and the timing of fraud discovery, either before or after the reports have been filed with the SEC. We find that when sub-certification is present, perceived personal responsibility and intentions to report were diminished compared to when sub-certification is absent. Timing of the discovery of the fraudulent act did not influence perceived management responsiveness or reporting intentions. Supplemental analysis shows that personal responsibility partially mediates the relationship between sub-certification and reporting intentions. Our findings suggest that audit committees and senior executives may want to carefully consider the costs and benefits of the sub-certification process. (shrink)

Through the personal stories of managers running global business, this book takes an inside look into the dilemmas of managers who are asked to make profits ethically according to the dictates of their company's ethics code. It examines what companies `think" they are doing to help managers in those situations and how those managers are actually affected. Thanks to the boost from the 1991 Sentencing Guidelines which minimizes penalties for companies with ethics codes caught in ethical wrongdoing, more than (...) 85% of US companies and two thirds of all Canadian companies and half of all European companies now have Codes of Ethics. Yet, over and over, we hear of stories of personal dilemmas and conflicts experienced by individual managers navigating those business waters in other cultures. "Eileen Morgan does an excellent job of mapping the course for navigating the previously uncharted global ethical waters. By identifying best practices, she leads the reader on a journey from Surviving, to Understanding to Knowing the ethical issues that frequently confront international business people. This is a must read for anyone who wants to successfully compete in world markets." -Michael J. Litwin, Executive Vice President, Chief Credit Officer, Heller Financial, Inc. "Eileen Morgan has combined the pragmatic concerns of the individual manager with the moral concerns that come from personal-life history, cultural roots, and corporate ethical culture …This book focuses on the constructive task of formulating and using an "ethical map," and is sure to be a tonic to conscientious managers who want to navigate cross-cultural commerce with integrity. It has done a superb job of creating order out of the complexity of cross-cultural moral experience by insisting that the complexity must be honored and appropriated rather than ignored or suppressed." -Dr. Richard Beauchamp, Professor of Ethics, Christopher Newport University "In this groundbreaking book, Eileen Morgan has provided scores of real-life examples and developed a framework for approaching ethical leadership in international business. This is mandatory reading for anyone involved in global management today...This is an important book on an important subject." -Stephen H. Rhinesmith, Ph.D. Author, A Manager's Guide to Globalization "Eileen Morgan provides us with a much needed roadmap for how to walk the path of ethical leadership with practical feet. She reminds us that ethical decision-making is a critical aspect of every day leadership, and that we can all choose to be 'ethical pioneers' in our companies and our communities. Every leader engaged in global business can benefit from the lessons and stories included in this book." -Christi A. Olson, Ph.D. Chair, Telecommunications Management Department, Golden Gate University "Eileen Morgan's thoughtful analysis of 'ethical capital' should be read by anyone who does business in a global environment…Morgan's book presents the issue clearly, comprehensively and compellingly, demonstrating that ethics is an indispensable aspect of individual leadership and organizational credibility. …It provides a clear roadmap for business leaders who need to communicate their commitment to integrity and accountability to their employees, their partners, and their customer, making their 'ethical capital' one of their most valuable assets." -Nell Minnow, Principal, Lens, The Corporate Governance Investors "Eileen Morgan gives excellent insight into ethical practices. She focuses on business but her insights have general application. This book also describes differences in ethical interpretation that can arise between diverse cultures. Ms. Morgan has made an excellent contribution to understanding the benefit of positive ethical practices." -David C. Lincoln, Sponsor, Lincoln Center for Applied Ethics, College of Business, Arizona State University President, Arizona Oxides, LLC · First in-depth look at how managers in global companies actually bridge the gap between their organizations and their daily decisions · Explains the need for internal and external ethical operations¦and how organizations often create confusion rather than clarity with the label of "ethics". (shrink)

Within the business and management literature, empathy has taken on increased importance as a central element to leadership, improving marketing strategies, corporate philanthropy, creating organizational connectedness, and as a strategy for preventing managerial wrongdoing. Although defining empathy is difficult, it is the identification with another’s thoughts and emotions through an imaginative process. This identification, ideally, will facilitate a wider connection with stakeholders beyond self-interest and motivate a better business environment. This article argues empathy is an overblown concept that (...) is only marginally supported by the philosophical and psychological research and, therefore, has limited application to business. Empathy is problematic because our inferences of mind are often inaccurate; not everyone is good at empathizing; it’s not necessary to understand action intention; doesn’t motivate helping behaviour; and could lead to immoral actions. My stance is definitively anti-empathy; perspective-taking is not sufficient or necessary as a management or business tool. Our understanding of people rests, not on empathy, but with our emotions, norms, and the social context in which we find ourselves. (shrink)

Within the business and management literature, empathy has taken on increased importance as a central element to leadership, improving marketing strategies, corporate philanthropy, creating organizational connectedness, and as a strategy for preventing managerial wrongdoing. Although defining empathy is difficult, it is the identification with another’s thoughts and emotions through an imaginative process. This identification, ideally, will facilitate a wider connection with stakeholders beyond self-interest and motivate a better business environment. This article argues empathy is an overblown concept that (...) is only marginally supported by the philosophical and psychological research and, therefore, has limited application to business. Empathy is problematic because our inferences of mind are often inaccurate; not everyone is good at empathizing; it’s not necessary to understand action intention; doesn’t motivate helping behaviour; and could lead to immoral actions. My stance is definitively anti-empathy; perspective-taking is not sufficient or necessary as a management or business tool. Our understanding of people rests, not on empathy, but with our emotions, norms, and the social context in which we find ourselves. (shrink)

Past research on recruitment has shown that employer image predicts job seekers’ perceptions of organizational attractiveness. We contribute to this body of work by examining job seekers’ reactions to a market-dominant employer that has suffered from a case of corporate social irresponsibility (CSI). We show that job seekers’ reaction is buffered in the case of dominant employers’ wrongdoing. This effect is stronger for job seekers who are very interested in working in the dominant employers’ industry. Market dominance, however, (...) reduces the negative impact of CSI only under certain circumstances. We find that market dominance provides a buffer against the negative effect of CSI only when (1) CSI is directly relevant to the domain of performance of the organization and (2) job seekers feel very certain about their attitudes toward the organization. In two experiments with participants actively looking for employment at the time of study, we tested a model of moderated mediation examining how market dominance and CSI influence perceived employer ethicality and perceived employer competence. These two variables, in turn, explain how job seekers form perceptions of organizational attractiveness. This is the first study to explore how job seekers react to potential employers that are dominant in a market but have suffered from a CSI incident. The study identifies the boundary conditions that explain why sometimes market-dominant employers can emerge relatively unscathed in the eyes of job seekers following CSI. The research opens important managerial implications concerning the recruitment efforts of organizations that have suffered from CSI. (shrink)

We conduct quantitative and qualitative analysis of 33 cases of internal and external whistleblowers wrongfully fired for reporting wrongdoing. Our results show external whistleblowers have less tenure with the organization, greater evidence of wrongdoing, and they tend to be more effective in changing organizational practices. External whistleblowers also experience more extensive retaliation than internal whistleblowers, and patterns of retaliation by management against the whistleblower vary depending on whether the whistleblower reports internally or externally. We discuss implications for (...) organizations and whistleblowers, and we conclude that researchers need to develop different theoretical explanations of internal and external whistleblowing processes. (shrink)

The ethics of whistleblowing are complex and challenging. On the one hand, there are a strong set of moral reasons why someone ought to blow the whistle when he or she learns of wrongdoing. On the other hand, such actions typically come at a significant cost to the whistleblower and may not bring about any significant change. Both aspects prompt us to ask, why would I be a whistleblower? Emanuela Ceva and Michele Bocchiola's Is Whistleblowing a Duty? answers that (...) question by arguing that one has an organizational duty to blow the whistle. Kate Kenny's Whistleblowing: Toward a New Theory reframes the question, showing how hard it has been for members of the international financial industry to blow the whistle and bring about any effective change to that industry. In this review essay, I suggest that analyses of whistleblowing need to take into account evolving technologies, the importance of loyalty, and special contexts such as whistleblowing in the national security sector. (shrink)

We conduct quantitative and qualitative analysis of 33 cases of internal and external whistleblowers wrongfully fired for reporting wrongdoing. Our results show external whistleblowers have less tenure with the organization, greater evidence of wrongdoing, and they tend to be more effective in changing organizational practices. External whistleblowers also experience more extensive retaliation than internal whistleblowers, and patterns of retaliation by management against the whistleblower vary depending on whether the whistleblower reports internally or externally. We discuss implications for (...) organizations and whistleblowers, and we conclude that researchers need to develop different theoretical explanations of internal and external whistleblowing processes. (shrink)

In this paper, we draw upon Islamic teachings to address two questions. How do Islamic ethics deepen and advance our understanding of the whistleblowing act? To what extent are Islamic ethics of whistleblowing promoted in practice? First, we have undertaken a thematic content analysis of the holy book of Qur’an, supported by the Sunnah (Prophetic Traditions). This has yielded a novel Islamic ethics-based framework of whistleblowing comprising the five aspects of the whistleblowing process: _What_ should one blow the whistle about? (...) _Who_ should blow the whistle? _Why_ should one blow the whistle? _How_ should one blow the whistle? And _to Whom_ should one blow the whistle? Second, using the developed framework, we have analyzed the whistleblowing policies of 20 Islamic banks and financial institutions across 11 countries. This analysis reveals that there exists a narrow view of what ought to be reported as wrongdoings, a confined scope of potential whistleblowers, a lack of connection with Islamic motivations, missing steps in the actual whistleblowing process, and a lack of gradation in relation to rectifying corrupt acts, thus highlighting a framework–policy gap. This is the first study to conceptualize the whistleblowing process from an Islamic perspective. The developed framework offers guiding procedures that individuals can consult to guide whistleblowing reasoning behavior and that organizations can use while developing whistleblowing policies. It also serves as a foundation for the development of organizational whistleblowing policies in different sectors. (shrink)

This paper explores the ethical dilemma of conflicting loyalties found in whistleblowing. Central to this dilemma is the internal/external disclosure dichotomy; disclosure of organisational wrongdoing to an external recipient is seen as disloyal, whilst disclosure to an internal recipient is seen as loyal. Understanding how the organisation and society have dealt with these problems over the last 30 years is undertaken through an analysis of Vandekerckhove’s project, which seeks to place the normative legitimisations of whistleblowing legislation and organisational whistleblowing (...) policies within a globalisation semantic able to contain this conflict between society and the organisation. This project fails, it is argued, because of Vandekerckhove’s particular understanding of the organisation as an autopoietic system, i.e. an operationally closed system. A case is made to understand organisations as complex systems, i.e. operationally open systems. Critical Complexity theory sees the identities of systems and components as coterminous. In the context of the organisation, this means that the identities of the corporation and its corporate members arise and die together. The whistleblower’s disclosure reconfigures the organisation by forcing the organisation to open up and make its boundaries flexible, making the designation ‘internal’ or ‘external’ to the organisation, and, therefore, who qualifies as a recipient of a disclosure of wrongdoing, flexible. The organisation is restrained from retailing against the whistleblower, because its identities are coterminous. Furthermore, as the disclosure cannot be categorically defined as either internal or external, the question of whether an external disclosure can qualify as an act of organisational loyalty becomes moot. (shrink)