In a sample of 522 police officers and staff in an English police force, we investigated the role of authoritarian leadership in reducing the levels of employee ethical voice. Drawing upon uncertainty management theory, we found that authoritarian leadership was negatively related to employee ethical voice through increased levels of felt uncertainty, when the effects of a motivational-based mechanism suggested by previous studies were controlled. In addition, we found that the negative relationship between authoritarian leadership and employee ethical voice via (...) felt uncertainty is mitigated by higher levels of benevolent leadership. That is, when authoritarian leaders simultaneously exhibit benevolence, they are less likely to cause feelings of uncertainty in their followers who are then more likely to speak up about unethical issues. We discuss theoretical and practical implications of the findings. (shrink)

The present study combines dehumanization research with the concept of organizational trust to examine how employees perceive various types of maltreatment embedded within the organizational practices that form the ethical climate of an organization. With the help of grounded theory methodology, we analyzed 188 employment exit interview transcripts from an ICT subcontracting company. By examining perceived trustworthiness and perceived humanness, we found that dehumanizing employees can deteriorate trust within organizations. The violations found in the empirical material were divided into animalistic (...) and mechanistic forms of dehumanization and linked to perceived integrity and benevolence, respectively. Based on the results, a model describing the link between dehumanization and trust is presented and discussed in relation to the ways in which perceptions of humanness become rooted in practices and affect the basic assumptions underlying ethical organizational behavior. (shrink)

ABSTRACT:Despite a significant increase in whistle-blowing practices in work organizations, we know little about what differentiates whistle-blowers from those who observe a wrongdoing but chose not to report it. In this review article, we first highlight the arenas in which research on whistle-blowing has produced inconsistent results and those in which the findings have been consistent. Second, we propose that the adoption of an identity approach will help clarify the inconsistent findings and extend prior work on individual-level motives behind whistle-blowing. (...) Third, we argue that the integration of the whistle-blowing research with that on ethics programs will aid in systematically expanding our understanding of the situational antecedents of whistle-blowing. We conclude our review by discussing new theoretical and methodological arenas of research in the domain of whistle-blowing. (shrink)

This study examines the mediating role of felt accountability and cost–benefit consideration in the relationship between implicit ethics institutionalization and ethical selling intention. The research hypotheses are developed and tested with data collected using a scenario‐based questionnaire. The research design proposes two types of ethical dilemmas. In the first dilemma, the insurance salespeople are told that the dishonest selling behavior will lead to a profitable outcome. In the second dilemma, the insurance salespeople are informed that the honest selling behavior will (...) lead to an unprofitable outcome. The findings show that implicit ethics institutionalization is positively related to felt accountability, cost–benefit consideration and ethical selling intention, while felt accountability and cost–benefit consideration could partially mediate the relationship between implicit ethics institutionalization and the insurance salespeople’s ethical selling intention. The study highlights the importance of implicit ethics institutionalization in sales ethics and helps researchers and practitioners to better understand the mediators of felt accountability and cost–benefit consideration through which implicit ethics institutionalization benefits ethical selling intention. (shrink)

Research on destructive leadership has largely focused on leader characteristics thought to be responsible for harmful organizational outcomes. Recent findings, however, demonstrate the need to examine important contextual factors underlying such processes. Thus, the present study sought to determine the effects of an organization's climate and financial performance, as well as the leader's gender, on subordinate perceptions of and reactions (i.e., whistle-blowing intentions) to aversive leadership, a form of destructive leadership based on coercive power. 302 undergraduate participants read through a (...) series of vignettes describing a fictional organization, its employees, and an aversive leader in charge of the company's sales department. They were then asked to envision themselves as subordinates of the leader and respond to several quantitative measures and open-ended questions. Consistent with Padilla and colleagues' (2007) toxic triangle theory, results suggest that both perceptions and reactions to aversive leadership depend on the three aforementioned factors. Specifically, aversive leaders were perceived more aversively and elicited greater whistle-blowing intentions in financially unstable organizations possessing climates intolerant of negative leader behavior. Moreover, female aversive leaders were perceived more aversively than their male counterparts under such conditions. Theoretical and practical implications as well as future research directions are also discussed. (shrink)

Unethical behavior coordinated and concealed by teams continues to represent a troubling and all-too-frequent occurrence in organizations. Unfortunately, those who are most knowledgeable about this behavior and thereby best suited to report it to authorities—the complicit members themselves—are susceptible to unique pressures that often discourage them from blowing the whistle. Team members rely on their teammates for relational and other beneficial resources, making it more difficult to potentially break those ties by snitching. However, we argue that the pressure to stay (...) silent is alleviated for members who are ostracized by their team members. Drawing on social exchange theory, we theorize that ostracism decreases positive affect and increases negative affect, decreasing individuals’ communion striving motivation and, in turn, increasing the propensity to blow the whistle. In Study 1, we examined the link between ostracism and whistleblowing utilizing a field sample of diverse employees surveyed over time. In Study 2, we built upon Study 1 and conducted a lab study to examine affect and communion striving motivation as serial mediators. Results were generally supportive of our arguments, although we did not find support for the mediating effect of negative affect. (shrink)

In business ethics, there is a large body of literature focusing on the conditions, factors, and influences in the ethical decision-making processes. This work builds upon the past critical reviews by updating and extending the literature review found in Craft’s :221–259, 2013) study, extending her literature review to include a total of 141 articles. Since past reviews have focused on categorizing results based upon various independent variables, we instead synthesize and look at the trends of these based upon the four (...) ethical decision making categories: Awareness, Behavior, Judgment, and Intention. We focus on the moderation and mediation effects found within these studies and provide an in-depth analysis of future trends. Furthermore, we also highlight key statistical and methodological concerns, outline overarching trends, and directions of future research in empirical ethical decision making. (shrink)

To identify the boundary conditions for proactive employees making whistle-blowing decisions, we developed a cross-level model comprising employee proactive personality and two types of whistle-blowing intentions that incorporates the influences of organizational- and individual-level attributes. Analyses of data collected from 432 Chinese employees in 32 companies indicated that proactive personality was positively related to internal whistle-blowing intention and even more positively related to external whistle-blowing intention when individuals were working in organizations characterized by an instrumental ethical climate and employees with (...) a high level of moral identity. (shrink)

Silence in organizations refers to a state in which employees refrain from calling attention to issues at work such as illegal or immoral practices or developments that violate personal, moral, or legal standards. While Morrison and Milliken (Acad Manag Rev 25:706–725, 2000) discussed how organizational silence as a top-down organizational level phenomenon can cause employees to remain silent, a bottom-up perspective—that is, how employee motives contribute to the occurrence and maintenance of silence in organizations—has not yet been given much research (...) attention. In this paper, we argue that this perspective is a meaningful complementation of the existing literature and that it is sensible to conceptualize distinct forms of employee silence (Pinder and Harlos, Research in personnel and human resources management. JAI Press, Greenwich, 2001; van Dyne et al., J Manag Stud 40:1359–1392, 2003). Drawing on past research and theory we conceptualize four forms of employee silence, namely quiescent, acquiescent, prosocial, and opportunistic silence. We present scales to assess the four forms and provide empirical tests for their distinctiveness and patterns of relationships to various correlates and potential antecedents and consequences. (shrink)

Silence in organizations refers to a state in which employees refrain from calling attention to issues at work such as illegal or immoral practices or developments that violate personal, moral, or legal standards. While Morrison and Milliken (Acad Manag Rev 25:706–725, 2000) discussed how organizational silence as a top-down organizational level phenomenon can cause employees to remain silent, a bottom-up perspective—that is, how employee motives contribute to the occurrence and maintenance of silence in organizations—has not yet been given much research (...) attention. In this paper, we argue that this perspective is a meaningful complementation of the existing literature and that it is sensible to conceptualize distinct forms of employee silence (Pinder and Harlos, Research in personnel and human resources management. JAI Press, Greenwich, 2001; van Dyne et al., J Manag Stud 40:1359–1392, 2003). Drawing on past research and theory we conceptualize four forms of employee silence, namely quiescent, acquiescent, prosocial, and opportunistic silence. We present scales to assess the four forms and provide empirical tests for their distinctiveness and patterns of relationships to various correlates and potential antecedents and consequences. (shrink)

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. (shrink)

The purpose of this paper is to examine whether anonymous reporting channels are effective in detecting fraud against companies. Fraud, which comprises predominantly asset misappropriation, represents a key operational risk and a major cost to organisations. The fraud triangle provides a framework for developing our understanding of how ARCs can increase detection of fraud. Using publicly listed company survey data collected by KPMG in Australia—where ARCs are not mandated—we find a positive association between ARCs and reported fraud. These results indicate (...) that ARCs are effective in detecting fraud. Additional analysis reveals that small firms derive the greatest benefit from adopting ARCs. We also find that independent boards do not directly influence the detection of fraud, but companies with independent boards detect more fraud because they implement ARCs. (shrink)

We study how an organization’s error-management climate affects organizational members’ beliefs about other members’ willingness to report errors that they discover when chance of error detection by superiors and others is extremely low. An error-management climate, as a component of the organizational climate, is said to be “high” when errors are accepted as part of everyday life as long as they are learned from and not repeated. Alternatively, the error-management climate is said to be an “error averse” climate when discovery (...) of errors invokes the laying of blame on those admitting to or found committing errors. We examine the effects of this error-management climate in a professional services environment where uncorrected errors may have severe consequences and discovery of work errors is crucial for organizational success. We find that error-management climate affects organizational members’ beliefs about what other members will report about discovered self-made errors, with a high error-management (versus error averse) climate leading to greater reporting willingness. We also find a significant interaction with a key contextual variable, error type (conceptual or calculation), that suggests the effect is more significant for conceptual errors than calculation errors. Our findings suggest that an organization’s error-management climate is an important factor in promoting ethical behavior of employees, especially junior employees, carrying out routine tasks whose failure to report errors discovered incidental to those tasks may have severe implications for their organizations. (shrink)

This study examined whether it was possible to classify Australian public sector employees as either whistleblowers or non-reporting observers using personal and situational variables. The personal variables were demography (gender, public sector tenure, organisational tenure and age), work attitudes (job satisfaction, trust in management, whistleblowing propensity) and employee behaviour (organisational citizenship behaviour). The situational variables were perceived personal victimisation, fear of reprisals and perceived wrongdoing seriousness. These variables were used as predictors in a series of binary logistic regressions. It was (...) possible to identify whistleblowers on the basis of individual initiative, whistleblowing propensity (individual and organisational), fear of reprisals, perceived wrongdoing seriousness and perceived personal victimisation. It was concluded that whistleblowers are not markedly dissimilar to non-reporting observers. Based on the two most influential variables (perceived personal victimisation and perceived wrongdoing seriousness), the average Australian public sector whistleblower is most likely to be an ordinary employee making a good faith attempt to stop what they perceived to be a serious wrongdoing that was initially identified through personal victimisation. (shrink)