Skip to main content
Log in

From Inaction to External Whistleblowing: The Influence of the Ethical Culture of Organizations on Employee Responses to Observed Wrongdoing

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Putting measures in place to prevent wrongdoing in organizations is important, but detecting and correcting wrongdoing are also vital. Employees who detect wrongdoing should, therefore, be encouraged to respond in a manner that supports corrective action. This article examines the influence of the ethical culture of organizations on employee responses to observed wrongdoing. Different dimensions of ethical culture are related to different types of intended responses. The findings show that several dimensions of ethical culture were negatively related to intended inaction and external whistleblowing and positively related to intended confrontation, reporting to management, and calling an ethics hotline.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

References

  • Alford, C. F. (2007). Whistle-blowers narratives: the experience of choiceless choice. Social Research, 74, 223-48.

    Google Scholar 

  • Ayers, S., and Kaplan, S. E. (2005). Wrongdoing by consultants: An examination of employees’ reporting intentions. Journal of Business Ethics, 57, 121-37.

    Article  Google Scholar 

  • Bamberger, K. A. (2006). Regulation as delegation: Private firms, decision-making, and accountability in the administrative state. Duke Law Journal, 56, 377-466.

    Google Scholar 

  • Berry, B. (2004). Organizational culture: A framework and strategies for facilitating employee whistleblowing. Employee Responsibilities and Rights Journal, 16, 1-11.

    Article  Google Scholar 

  • Blackburn, M. S.: 1988, ‘Employee Dissent: The Choice of Voice Versus Silence’, Unpublished Doctoral Dissertation, The University of Tennessee, Knoxville.

  • Bowie, N. (1982). Business ethics. Englewood Cliffs, NJ: Prentice-Hall.

    Google Scholar 

  • Brown, M. E., Treviño, L. K., and Harrison, D. A. (2005). Ethical leadership: A social learning perspective for construct development and testing. Organizational Behavior and Human Decision Processes, 97, 117-34.

    Article  Google Scholar 

  • Callahan, E. S., and Dworkin, T. M. (1994). Who blows the whistle to the media, and why: Organizational characteristics of media whistleblowers. American Business Law Journal, 32, 151-84.

    Article  Google Scholar 

  • Callahan, E. S., Dworkin, T. M., Fort, T. L., and Schipani, C. A. (2002). Integrating trends in whistleblowing and corporate governance: promoting organizational effectiveness, societal responsibility, and employee empowerment. American Business Law Journal, 40, 177-215.

    Article  Google Scholar 

  • Chiu, R. K. (2003). Ethical judgment and whistleblowing intention: Examination the moderating role of locus of control. Journal of Business Ethics, 43, 65-74.

    Article  Google Scholar 

  • Chung, J., G. S. Monroe and L. Thorne: 2004, ‘An Examination of Factors Affecting External and Internal Whistleblowing by Auditors’, Working Paper, York University, Toronto.

  • DeGeorge, R. T. (1986). Business ethics. New York: MacMillan.

    Google Scholar 

  • Den Nieuwenboer, N. A.: 2008, ‘Seeing the Shadow of the Self: Studies on Organizational Deviance’, PhD-Thesis, ERIM, Rotterdam.

  • Dozier, J. B., and Miceli, M. P. (1985). Potential predictors of whistle-blowing: A prosocial behavior perspective. Academy of Management Review, 10, 823-36.

    Article  Google Scholar 

  • Dworkin, T. M., and Baucus M. S. (1998). Internal vs external whistleblowers: A comparison of whistleblowing processes. Journal of Business Ethics, 17, 1281-98.

    Article  Google Scholar 

  • Dyck, A., A. Morse and L. Zingales: 2008, ‘Who Blows the Whistle on Corporate Fraud?’, Chicago Booth, Working Paper 08-22.

  • Elliston, F. A. (1982). Anonymity and whistleblowing. Journal of Business Ethics, 1, 167-77.

    Article  Google Scholar 

  • Enz, C. (1988). The role of value congruity in intraorganizational power. Administrative Science Quarterly, 35, 504-29.

    Google Scholar 

  • Ferrell, O. C., Thorne LeClair, D., and Ferrell, L. (1998). ‘The Federal Sentencing Guidelines for Organizations: A framework for ethical compliance. Journal of Business Ethic, 17, 353-63.

    Article  Google Scholar 

  • Graham, J. W. (1993). Blowing the whistle. Administrative Science Quarterly, 38, 683-85.

    Article  Google Scholar 

  • Greenberger, D.B., Miceli, M. P., and Cohen, D. J. (1987). Oppositionists and group norms: the reciprocal influence of whistle-blowers and co-workers. Journal of Business Ethics, 6: 527-542.

    Article  Google Scholar 

  • Hassink, H., de Vries, M., and Bollen, L. (2007). A content analysis of whistleblowing policies of leading European companies. Journal of Business Ethics, 75, 25-44.

    Article  Google Scholar 

  • Heard, E. and W. Miller: 2006, ‘Creating an Open and Non-Retaliatory Workplace’, International Business Ethics Review Summer, 1–7.

  • Hirschman, A. O. (1970). Exit, voice, and loyalty. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Jubb, P.B. (1999). Whistleblowing: A restrictive definition and interpretation. Journal of Business Ethics, 21, 77-94.

    Article  Google Scholar 

  • Kaptein, M. (1998). Ethics management: Auditing and developing the ethical content of organizations. Dordrecht: Springer.

    Google Scholar 

  • Kaptein, M. (2002). Guidelines for the development of an ethics safety net. Journal of Business Ethics, 41, 217-234.

    Article  Google Scholar 

  • Kaptein, M. (2008a). ‘Development of a measure of unethical behavior in the workplace: A stakeholder perspective. Journal of Management, 34, 978-1008.

    Article  Google Scholar 

  • Kaptein, M. (2008b). Developing and testing a measure for the ethical culture of organizations: The corporate ethical virtues model. Journal of Organizational Behavior, 29, 923-47.

    Article  Google Scholar 

  • Kaptein, M.: 2010, ‘Understanding Unethical Behavior by Unraveling Ethical Culture’, Working Paper.

  • Kaptein, M., and Avelino, S. (2005). Measuring corporate integrity: A survey-based approach. Corporate Governance, 5, 45-54.

    Article  Google Scholar 

  • Kaptein, M., and J. Dalen, van (2000). The empirical assessment of corporate ethics: A case study. Journal of Business Ethics, 24, 95-114.

    Article  Google Scholar 

  • Karpoff, J. M., Lee, D. S., and Martin, G. S. (2008). The cost to firms of cooking the books, Journal of Financial and Quantitative Analysis, 43, 581-611.

    Article  Google Scholar 

  • Keenan, J. P. (1990). Upper-level managers and whistleblowing: Determinants of perceptions of company encouragement and information about where to blow the whistle. Journal of Business and Psychology, 5, 223-35.

    Article  Google Scholar 

  • Keenan, J. P. (2002). Whistleblowing: A study of managerial differences. Employee Responsibilities and Rights Journal, 14, 17-32.

    Article  Google Scholar 

  • King, G. III (1997). The effects of interpersonal closeness and issue seriousness on blowing the whistle. The Journal of Business Communication, 34, 419-36.

    Article  Google Scholar 

  • King, G. III (1999). The implications of an organization’s structure on whistleblowing. Journal of Business Ethics, 20, 315-26.

    Article  Google Scholar 

  • King, G. III (2001). Perceptions of intentional wrongdoing and peer reporting behavior among registered nurses. Journal of Business Ethics, 34, 1-13.

    Article  Google Scholar 

  • KPMG (2007). Profile of a fraudster survey 2007. Swiss: KPMG Forensic.

    Google Scholar 

  • Lee, J.Y., Heilman, S.G., and Near, J. P. (2004). Blowing the whistle on sexual harassment: Test of a model of predictors and outcomes. Human Relations, 57, 297-322.

    Article  Google Scholar 

  • Lewis, D. (2001). Whistleblowing at work: On what principles should legislation be based? The Industrial Law Journal, 30, 169-193.

    Article  Google Scholar 

  • Mesmer-Magnus J. R., and Viswervaran, C. (2005). Whistleblowing in organizations: An examination of correlates of whistleblowing intentions, actions and retaliation. Journal of Business Ethics, 62, 277-97.

    Article  Google Scholar 

  • Miceli, M. P., and Near, J. P. (1984). The relationships among beliefs, organizational position, and whistleblowing status: A discriminant analysis. The Academy of Management Journal, 27, 687-705.

    Article  Google Scholar 

  • Miceli, M. P., and Near, J. P. (1985). Characteristics of organizational climate and perceived wrongdoing associated with whistleblowing decisions. Personnel Psychology, 38, 525-44.

    Article  Google Scholar 

  • Miceli, M. P., and Near, J. P. (1988). Individual and situational correlates of whistleblowing. Personnel Psychology. 41, 267-81.

    Article  Google Scholar 

  • Miceli, M. P., and Near, J. P. (1992). Blowing the whistle: The organizational and legal implications for companies and employees. New York: Lexington Books.

    Google Scholar 

  • Miceli, M. P., and Near, J. P. (1994). Relationships among value congruence, perceived victimization, and relation against whistle-blowers. Journal of Management, 20, 773-94.

    Google Scholar 

  • Miceli, M. P., and Near, J. P. (2002). What makes whistle-blowers effective? Three field studies. Human Relations, 55, 455-79.

    Article  Google Scholar 

  • Miceli, M. P., and Near, J. P. (2005). Standing up or standing by: What predicts blowing the whistle on organizational wrongdoing. In J. Martocchio (Ed.). Research in personnel and human resources management (24, 95-136). Greenwich, CT: JAI/Elsevier Press.

    Chapter  Google Scholar 

  • Miceli, M. P. and J. P. Near: 2006, ‘Standing up or standing by: What predicts blowing the whistle on organizational wrongdoing?’, in J. Martocchio (ed.), Research in Personnel and Human Resource Management (JAI, Stamford, CT).

  • Miceli, M. P., Near, J. P., and Dworkin, T. M. (2008). Whistleblowing in organizations. New York: Routledge.

    Google Scholar 

  • Miceli, M. P., Near, J. P., and Dworkin, T. M. (2009). A word to the wise: How managers and policy-makers can encourage employees to report wrongdoing. Journal of Business Ethics, 86, 379-396.

    Article  Google Scholar 

  • Miceli, M. P., and Near, J. P., and Schwenk, C. P. (1991). Who blows the whistle and why? Industrial and Labor Relations Review, 45, 113-30.

    Article  Google Scholar 

  • Miceli, M. P., Rehg, M., Near, J. P., and Ryan, K. (1999). Can laws protect whistle-blowers? Results of a naturally occurring field experiment. Work and Occupations, 26, 129-51.

    Article  Google Scholar 

  • Miethe, T. D. (1999). Whistleblowing at work: Tough choices in exposing fraud, waste and abuse on the job. Boulder: Westview Press.

    Google Scholar 

  • Murphy, P. E. (1988). Implementing business ethics. Journal of Business Ethics 7, 907-15.

    Google Scholar 

  • Near, J. P., and Miceli, M. P. (1985). Organizational dissidence: The case of whistleblowing. Journal of Business Ethics, 4, 1-16.

    Article  Google Scholar 

  • Near, J. P. and Miceli, M. P. (1987). Whistle-blowers in organizations: Dissidents or reformers? Research in Organizational Behavior, 9, 321-68.

    Google Scholar 

  • Near, J. P., and Miceli, M. P. (1995). Effective whistleblowing. Academy of Management Review, 20, 679-708

    Article  Google Scholar 

  • Near, J. P., and Miceli, M. P. (1996). Whistleblowing: Myth and reality. Journal of Management, 22, 507-26.

    Article  Google Scholar 

  • Near, J. P., Rehg, M. T., Scotter J. R. van, and Miceli, M. (2004). Does type of wrongdoing affect the whistleblowing process? Business Ethics Quarterly, 14, 219-42.

    Google Scholar 

  • Nunnally, J. C. (1978). Psychometric theory. New York: McGraw-Hill.

    Google Scholar 

  • Patel, C (2003). Some cross-cultural evidence on whistleblowing as an internal control mechanism. Journal of International Accounting Research, 2, 69-97.

    Article  Google Scholar 

  • Pershing, J. L. (2003). To snitch or not to snitch? Applying the concept of neutralization techniques to the enforcement of occupational misconduct. Sociological Perspectives, 46, 149–78.

    Article  Google Scholar 

  • Probst, T. M., Brubaker, T. L., and Barsotti, A. (2008). Organizational injury rate underreporting: the moderating effect of organizational safety climate. Journal of Applied Psychology, 93, 1147-54.

    Article  Google Scholar 

  • Ray, S. L. (2006). Whistleblowing and organizational ethics. Nursing Ethics, 13, 438-45.

    Article  Google Scholar 

  • Robinson, S. L. and A. M. O’Leary-Kelly: 1998, ‘Monkey See, Monkey Do: The Influence of Work Groups on the Antisocial Behavior of Employees’, Academy of Management Journal 41, 658–672.

    Google Scholar 

  • Rothschild, J. and Miethe, T. D. (1999). Whistle-blower disclosures and management retaliation. Work and Occupations, 26, 107-28.

    Article  Google Scholar 

  • Rothwell, G. R., and Baldwin, J. N. (2007): Ethical climate theory, whistleblowing, and the code of silence in police agencies in the State of Georgia. Journal of Business Ethics, 70, 341-61.

    Article  Google Scholar 

  • Schmidtke, J. W.: 2007, ‘The Relationship between Social Norm Consensus, Perceived Similarity, and Observer Reaction to Coworker Theft’, Human Resource Management 46(4), 561–582.

    Google Scholar 

  • Schnatterly, K. (2003). Increasing firm value through detection and prevention of white-collar crime. Strategic Management Journal, 24, 587-614.

    Article  Google Scholar 

  • Sims, R. L., and Keenan, J. P. (1998). Predictors of external whistleblowing: Organizational and intrapersonal variables. Journal of Business Ethics, 17, 411-21.

    Article  Google Scholar 

  • Solomon, R. C. (1992). Ethics and excellence. New York: Oxford University Press.

    Google Scholar 

  • Solomon, R. C. (1999). A better way to think about business: How personal integrity leads to corporate success. New York: Oxford University Press.

    Google Scholar 

  • Tavakoli, A. A., Keenan, J. P., and Crnjak-Karanovic, B. (2003). Culture and whistleblowing: an empirical study of Croation and United States managers utilizing Hofstede’s cultural dimensions. Journal of Business Ethics, 43, 49-64.

    Article  Google Scholar 

  • Treviño, L. K., and Nelson, K.A. (1999), Managing business ethics. New York: John Wiley.

    Google Scholar 

  • Treviño, L. K., and Weaver, G. R. (2003). Managing ethics in business organizations: Social scientific perspectives. Stanford: Stanford University Press.

    Google Scholar 

  • Tyler, T. R., and Blader, S. L. 2005. Can business effectively regulate employee conduct? The antecedents of rule following in work settings, Academy of Management Journal, 6, 1143-58

    Google Scholar 

  • Tulder, R. van, and Zwart, A. van der (2006). International business-society management. London: Routledge

    Google Scholar 

  • Velasquez, M. G. (2005). Business ethics: Concepts and cases. Englewood Cliffs, N.J.: Prentice Hall.

    Google Scholar 

  • Victor, B., and Cullen, J. B. (1988). The organizational bases of ethical work climates. Administrative Science Quarterly, 33, 101-25.

    Article  Google Scholar 

  • Victor, B., Treviño L. K., and Shapiro, D. L. (1993). Peer reporting of unethical behavior: the influence of justice evaluations and social context factors. Journal of Business Ethics, 12, 253-63.

    Article  Google Scholar 

  • Zhuang, J., Stuart, T., and Miller, D. L. (2005). Examining culture’s effect on whistle-blowing and peer reporting. Business and Society, 44: 462-86.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Muel Kaptein.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Kaptein, M. From Inaction to External Whistleblowing: The Influence of the Ethical Culture of Organizations on Employee Responses to Observed Wrongdoing. J Bus Ethics 98, 513–530 (2011). https://doi.org/10.1007/s10551-010-0591-1

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-010-0591-1

Key words

Navigation