Whistle-Blowing in Organizations (Leas Organization and Management)

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The answer is to institutionalize whistleblowing. While the word whistleblowing may have a generally negative connotation, in this context it means giving every employee the means to raise a hand when he or she has something important to share -- and making that information available to everyone, including the CEO. This could be anything from not having the resources to complete a project on time to seeing a potentially disruptive move by a competitor. Great managers solve this problem by walking around and getting the pulse of their employees.

As companies grow, this becomes a logistical challenge. At this point, leaders need to replace walking around with a system to solicit feedback about issues. Giving every employee a way to raise a red flag to management can help solve many problems before they become a catastrophe. Organizations can no longer afford for bureaucratic barriers to stifle their ability to pivot and grow. Entrepreneur Media, Inc. In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site both directly and through our partners.

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For more information on our data policies, please visit our Cookie Policy. Revoke Consent Submit Consent. Problem Solving Why You Should Encourage Whistleblowing in Your Organization Make it easy for employees at every level to raise a red flag about both problems and opportunities. Next Article -- shares Add to Queue. Image credit: Image Source Getty Images. Joel Trammell. Guest Writer. January 27, 4 min read. Opinions expressed by Entrepreneur contributors are their own.

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Learn More. General companies are more likely to expect employees to use internal blowing rather than external blowing because external blowing has a certain degree of impact on the reputation of the company. However, in the definition blowed in this article, there is no distinction between internal or external blowing by employees. Followed by the difference between anonymous and non-anonymous blowing methods, a significant advancement of the Sarbanes-Oxley Act introduced in the United States in was the establishment of an anonymous blowing channel.

The law requires listed companies to maintain an anonymous blowing channel that witnesses can use to blow matters related to suspicious accounting or auditing practices the US House of Representatives, year Unfortunately, there is no specific guidance on how to manage the blowing channels SEC, , 20 [21]. There are also scholars who have conducted research on the question of whether or not to conduct an interrogation investigation at the time of the whistle-blow.


Kaplan et al. The most influential factors in whistle-blowing the will of the wrongdoers are their power. It is obvious that the power of the whistleblower will affect the willingness to blow the whistle, and the whistleblower will also consider the identity and rights of the wrongdoer. The results showed that the auditor was more likely to report his classmate than to report his superiors.

J [7] [25]. The second obvious influencing factor is the credibility of the wrongdoers. There are three main aspects of the characteristics of wrongdoing in the study of the willingness to blowing the wrongdoing: the seriousness of the wrongdoing, the type of wrongdoing, and the credibility of the evidence. For example, the occurrence of sexual harassment may only be targeted at certain members of the organization [5]. Different types of wrongdoing may be targeted at very different variables, and because personal characteristics have an impact on the willingness to blow the whistle, there is also a correlation between the type of illegal type and the willingness to report.

Janet P. Near found that violations are more likely to be reported than other misconducts. In contrast, the minimum willingness to blow a wrongful act that involves waste or unfair discrimination is minimal [31]. Brink, Eller, and Gan studied the interaction between evidence strength and onlookers. They found that when evidence is strong and no onlookers are more likely to whistle-blow it. The results of the and surveys showed that the best way to ensure that employees report wrongdoing is to create a culture that allows employees to believe that management needs to be informed of their wrongdoing and to respond adequately to these issues MSPB, Only in this organizational culture can employees have the willingness to report if they see the occurrence of illegal behavior Shelley, The study by Paul L.

Miethe and Rothschild and Miceli and Near further support this [34]. With the increasing size of the organization, the organization becomes more bureaucratic and becomes more and more formal and complex Dewar and Hage, [39]. However, the emergence of bureaucracy may hinder the upward communication. Employees may think that it is difficult or impossible for managers to notice issues that they believe are critical, so the greater the size of the organization, the lower the willingness to report internally Near and Miceli, [40].

Therefore, some scholars have pointed out that large-scale organization executives should consider establishing internal communication channels, specifically designed for employees to care about possible illegal activities in the organization Tim Barnett, [32].

The research of Zhang et al. Because the domestic research on the internal reporting system is still in the exploratory stage and there are few literatures, domestic scholars mainly study the internal reporting system from the aspects of the status quo of the national system, whistleblower ethical judgments and cultural differences.

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In terms of cultural differences, many people believe that the willingness to report is influenced to a certain extent by cultural traditions Liu Xin ; Guo Guihang, [42] [43]. Liu Xin proposed that countries advocating collectivism and individuals advocating individualism are affected by culture to a certain extent, so that potential whistleblowers have a resistance to reporting behaviors such as Confucian culture, three principles and family concepts, and family attitudes hinder the reporting behavior.

The escaping thought contained in the individualistic traditional culture, the compromise thought contained in the British conservative traditional culture [42]. Guo Guihang compared the accounting practitioners in China and the Australian accounting practitioners by collecting data from questionnaire surveys [43]. Distance caused by the cultural background. For the review of scholars at home and abroad, this article will reclassify and refine the effective reporting model proposed by the authors Near and Miceli see Figure 2 [7].

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Summarizing the existing research results of scholars at home and abroad, we can get the following inspiration. The study of influencing factors in foreign countries has gone through more than 20 years and has yielded rich results, which have laid a good foundation for follow-up research. At present, the research on the influencing factors of foreign whistle-blows mainly focuses on the whistleblower characteristics, the characteristics of the report recipients, the characteristics of the wrongdoers, the characteristics of the wrongdoing, and the organization characteristics.

There is no vertical analysis of the degree of reporting intentionality. Moreover, in the empirical literature, the foreign literature mainly focuses on organizational accounting and auditing. There is still a lack of research in the organizational environment. Moreover, no systematic indicator model has been established for the willingness to report.

So there is currently a relatively general theoretical framework. Compared with foreign studies, domestic scholars are still at the initial stage of research on the influencing factors of reporting, and existing research has started to explore the factors that affect the willingness to report in the context of. Figure 2. Five reporting modes proposed in this paper.

China from the cultural perspective. Therefore, there are still a lot of theoretical gaps in domestic research, especially. There is a lack of empirical evidence. Therefore, in the future in academic research scholars can pay more attention to the degree of analysis of the factors affecting the report. Therefore, the influencing factors at the micro level have not been explored excessively. Exploration at the enterprise level can also be more in-depth and detailed in future research.

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Schwartz suggests that languages with negative tone e. Therefore, future research can be conducted in control experiments to study the linguistic characteristics e.

Whistleblowing (Industrial-Organizational Psychology) IResearchNet

Training in the enterprise can change certain aspects of personality. There are still some limitations in the research review of this article. For example, the type of articles reviewed is relatively simple, and the reviewed articles are not complete yet. Therefore, the summary of the influencing factors of the report may still have some parts that need to be improved. So in the future research I hope all scholars can make amendments and improvements.

What is WHISTLEBLOWER? What does WHISTLEBLOWER mean? WHISTLEBLOWER meaning & explanation

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Claremont McKenna College, Claremont. Journal of Business Ethics, 57, Michigan Law Review, , Lynne Rienner Publishers, Boulder. Yale Journal on Regulation, 29, Journal of Business Ethics, 90, Academy of Management Review, 28, Results of a Naturally Occurring Field Experiment. Work and Occupations, 26, Policy Management and Administrative, Journal of Business Ethics, 93, Organization Science, 4, Journal of Accounting Literature, 38, Human Relations, 55, Work and Occupations, 10, Administrative Science Quarterly, 27, Business Ethics Quarterly, 14, Journal of Business Ethics, 11, Sociological Inquiry, 64, University of Mississippi, Oxford.

Accounting, Organizations and Society, 35, Journal of Business Ethics, , The British Accounting Review, 39, Administrative Science Quarterly, 23, In: Staw, B. ABA Journal, 72, Journal of Theory and Practice, 1, International Business Management, 25, Journal of Business Ethics, 41, Share This Article:. The paper is not in the journal.

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  • Why You Should Encourage Whistleblowing in Your Organization.
  • Go Back HomePage. DOI: Xinya Chen. Although China has already issued some whistle-blowing laws and many companies have established internal whistle-blowing systems, there are still loopholes in the existing internal whistle-blowing systems of enterprises. The internal whistle-blowing department of the enterprise is virtually empty and has little effect.

    Many employees observe the existence of wrongdoing but do not choose to report it. Internal problems of the company are still frequent.