GMxyB.pdf - Journal of Business Ethics(2019 160:189–204 https/doi.org/10.1007/s10551-018-3862-x ORIGINAL PAPER ‘Whistleblowing Triangle’ Framework

GMxyB.pdf - Journal of Business Ethics(2019 160:189–204...

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Vol.:(0123456789) 1 3 Journal of Business Ethics (2019) 160:189–204 ORIGINAL PAPER ‘Whistleblowing Triangle’: Framework and Empirical Evidence Hengky Latan 1,2  · Charbel Jose Chiappetta Jabbour 3  · Ana Beatriz Lopes de Sousa Jabbour 3 Received: 18 October 2017 / Accepted: 25 March 2018 / Published online: 31 March 2018 © Springer Science+Business Media B.V., part of Springer Nature 2018 Abstract This work empirically tests the concept of the ‘whistleblowing triangle,’ which is modeled on the three factors encapsulated by the fraud triangle (pressure or ff nancial incentives, opportunity and rationalization), in the Indonesian context. Anchored in the proposition of an original research framework on the whistleblowing triangle and derived hypotheses, this work aims to expand the body of knowledge on this topic by providing empirical evidence. The sample used is taken from audit ff rms afffiliated with both the big 4 and non-big 4 companies operating in Indonesia. The results of analysis using the PLS-PM method found a signiff cant relationship between the components of the whistleblowing triangle and the intention of blowing the whistle. We found that ff nancial incentives are the most signiff cant predictor of auditors’ intention to blow the whistle in Indonesia. Other components, such as opportunity and rationalization, also play an important role in supporting auditors’ intention to blow the whistle. Our ff ndings also suggest that related pressures are the top priority for audit ff rms in Indonesia to consider in increasing whistleblowing intention. We expand the previous literature on whistleblowing which has been derived from the components of the fraud triangle (Brown et al. in Account Public Interest 16(1):28–56, 2016 ; Smaili and Arroyo in J Bus Ethics, , 2017 ) by adding empirical evidence. Keywords Business ethics · Whistleblowers · Whistleblowing intention · Whistleblowing triangle · Reporting fraud Introduction The main objective of this work is to empirically test a recently developed concept—the whistleblowing trian- gle—in the context of an emerging economy (Indonesia). This research is anchored in certain recent propositions which suggest that the elements of the fraud triangle can be adapted to understand the intention to report wrongdoing in organizations (Brown et al. 2016 ), which has prompted the idea of the ‘whistleblowing triangle’ (Smaili and Arroyo 2017 ). Thus, we aim to expand the emergent literature on the elements that may explain the intention to report wrongdo- ing in organizations by proposing and empirically testing a research framework. It is worth mentioning at this junc- ture that this work focuses on the intention of whistleblow- ing (such as Brown et al. 2016 ), rather than on the action of reporting wrongdoing (for example, Smaili and Arroyo 2017 ).
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