Whistle blowing intentions – evidence from Malaysian PLC

Abstract

Purpose

Most organizations are fully aware of the misconduct that occurs within their company but take a soft-handed approach attending to the problems. Consequently, misconduct that at the beginning is just a mere incompliance may become a corporate scandal involving a substantial amount of money. This paper aims to examine the factors that influence whistleblowing intentions of employees that work in one big corporation, ABC Berhad, which experienced a corporate scandal.

Design/methodology/approach

A survey questionnaire is used in which the respondents from the various departments of the selected study case, ABC Berhad, were required to indicate the seriousness of the wrong-doing cases and their intention to whistleblow based on the given vignette. A total of 70 survey questionnaires were distributed. Out of these, 63 questionnaires were returned, for a response rate of 90 per cent.

Findings

The result of the study shows that gender did not have any significant influence to the likelihood to whistle blow. However, the job position of the respondents has a significant result as it can influence the likelihood to whistle blow. The study also found that the more serious the wrongdoing, the higher the likelihood to blow the whistle.

Research limitations/implications

The results provide further confirmation of the determinants that influence employees to report wrongdoings in the organizations. This study, however, may be subject to self-reported data biasness due to the sensitivity of the topic. In addition, respondents may not give responses or answers based on the actual situation but be tempted to response based on socially desirable which is to please their peers and others.

Practical implications

This study shows ABC Berhad whether its employees are ethical in carrying their duties and indicates their levels in ethical reporting. In addition, the study helps the company generally and ABC Berhad particularly to understand the working culture in the company so that they can identify the areas of the governance that need improvement such as protection to the employee that blew the whistle.

Originality/value

This study is original as it focuses on the employees in a big organization such as government-linked companies (GLCs) that have experienced corporate scandals although they have a whistleblowing mechanism in place.

Citation

Nawawi, A. and Salin, A.S.A.P. (2018), "Whistle blowing intentions – evidence from Malaysian PLC", International Journal of Law and Management, Vol. 60 No. 5, pp. 1111-1125. https://doi.org/10.1108/IJLMA-04-2017-0096