“…Nonetheless, organizations need to develop an ethical corporate culture, where employees become 'ethical partners' and do the right thing, not because they have to, but because they want to (Farooqi, Abid, & Ahmed, 2017). Paeth (2013) on the contrary, believes that the moral complexity of whistleblowing in context of corruption in the organizations has to be considered from other aspects as well.…”
This study aims to determine individual perceptions of ethical behavior and whistleblowing on fraud detection through self-efficacy. Study on the banking sector in Bali Province. This study uses a quantitative approach. Sampling method using simple random sampling method, with the number of samples that is 70 respondents. Whistleblowers are employees and or stakeholders who see some wrong actions can be independent and without published report the action to the company's management without fear of mutual action. The type of data in this study is primary data. The data were collected by using questionnaires. Measurement using a Likert scale. Analysis of research data using hierarchical regression analysis model. The results showed: (1) individual perceptions about ethical behavior have no effect on fraud detection; (2) whistleblowing and self-efficacy have a positive and significant effect on fraud detection; (3) self-efficacy does not succeed in moderating the relationship between individual perceptions of ethical behavior toward fraud detection; and (4) self-efficacy does not moderate the relationship between whistleblowing to fraud detection.
“…Nonetheless, organizations need to develop an ethical corporate culture, where employees become 'ethical partners' and do the right thing, not because they have to, but because they want to (Farooqi, Abid, & Ahmed, 2017). Paeth (2013) on the contrary, believes that the moral complexity of whistleblowing in context of corruption in the organizations has to be considered from other aspects as well.…”
This study aims to determine individual perceptions of ethical behavior and whistleblowing on fraud detection through self-efficacy. Study on the banking sector in Bali Province. This study uses a quantitative approach. Sampling method using simple random sampling method, with the number of samples that is 70 respondents. Whistleblowers are employees and or stakeholders who see some wrong actions can be independent and without published report the action to the company's management without fear of mutual action. The type of data in this study is primary data. The data were collected by using questionnaires. Measurement using a Likert scale. Analysis of research data using hierarchical regression analysis model. The results showed: (1) individual perceptions about ethical behavior have no effect on fraud detection; (2) whistleblowing and self-efficacy have a positive and significant effect on fraud detection; (3) self-efficacy does not succeed in moderating the relationship between individual perceptions of ethical behavior toward fraud detection; and (4) self-efficacy does not moderate the relationship between whistleblowing to fraud detection.
“…This result can also be interpreted as evidence that the availability of organizational virtuousness does not require moral courage among employees for them to report violations in the workplace (Kurian and Nafukho, 2021). Consequently, trust in leaders plays a key role in assuring employees that they will not face issues if they report violations, consistent with typical Arab cultural characteristics (Farooqi et al, 2017;Hassan et al, 2020). Hence, Arab hotel employees need organizational traits, like organizational climate and psychological empowerment, to Internal whistleblowing among employees support them in reporting ethics violations more than individual traits, like moral courage and ethical efficacy.…”
Section: Ejmbementioning
confidence: 59%
“…Ethical principles are close to organizational virtuousness (Nazarian et al, 2021;Schwepker and Dimitriou, 2021). These principles were practiced within service organizations to create a positive organizational image (Farooqi et al, 2017;May-Amy et al, 2020). Therefore, one may predict that ethics influences the reporting of wrongdoing in organizations (Ahmad et al, 2014), enabling whistleblowers to spot disruptive acts that threaten corporations' competitiveness and sustainability (Tarkang-Mary and Ozturen, 2019).…”
PurposeThis study investigates the relationship between leaders' ethical behaviors and internal whistleblowing among hotel employees through the mediation role of organizational virtuousness. According to the conceptual framework, ethical leadership creates a virtuous workplace and encourages whistleblowing.Design/methodology/approachA survey approach with responses of 442 employees from Egyptian five-star hotels was used. Structural equation modeling (SEM) was used to test the hypotheses proposed based on leader–member exchange (LMX) and ethical leadership theories.FindingsEthical leadership has a favorable impact on organizational virtuousness and, as a result, has a significant impact on whistleblowing intention. The ethical leaders–subordinates' intents to whistleblow association partially mediated organizational virtuousness. To assist them in reporting ethics violations, most hotel employees require organizational characteristics, such as organizational climate and psychological empowerment, in addition to individual characteristics, such as moral bravery and ethical efficacy.Originality/valueThe conceptual framework of this paper adds a new guide for future research related to the hospitality literature, which is how employees' intent to internal whistleblowing. As such, senior management should serve as a moral role model for hotel employees, inspiring them to be moral and allowing them to participate in decision-making.
“…In some cases, whistleblowers are ostracized and isolated to identify wrongdoing. However, organizations need to develop an ethical corporate culture, in which employees become "ethical partners" and do the right thing, not because they need to, but because they want to (Farooqi et al, 2017). On the contrary, Paeth (2013) considers that the moral complexity of reporting in the context of corruption in organizations must be taken into account in other respects.…”
Section: Implications Of Internal Managerial Control -Warning Systemmentioning
From the broad typology of fraud, there is a certain type of fraud that deserves special attention, namely Robin Hood fraud. Some of the solutions proposed in the literature for its prevention and detection are those that refer to supervision and reporting mechanisms, both being ways to close the opportunities specific to internal managerial control. However, these concepts have a common element, namely perception. If in these cases we talk about employees' perception of what is considered to be ethical, in this approach we aim to show what is the perception of employees and the general public on internal managerial control and whether their perspective corresponds to the mission of this tool to eliminate opportunities for fraud.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.