Remediation of the challenges of reporting corporate scandals in governance

Abstract

Purpose

The barrage of corporate scandals has become pervasive such that it collapsed high-profile organizations worldwide. Prior studies show that reporters of corporate scandals encounter a number of challenges which discourages them from disclosing wrongful acts to appropriate authorities to effect action. Thus, this study aims to examine the remediation of the challenges of reporting corporate scandals in governance.

Design/methodology/approach

The study used cross-sectional survey design. Primary data was obtained from 400 employees of selected organizations and analyzed using descriptive statistics, correlation and regression techniques in Statistical Package of Social Science.

Findings

The results confirm that reporters of corporate scandals are confronted with challenges such as victimization, fear, suspension/dismissal, sideline and high power distance. However, these challenges can be remediated through award, code of conduct, free expression, participation/consultation and safeguard regulations to encourage and protect reporters of corporate scandals.

Practical implications

The findings imply that there should be an award scheme for reporters, and this must be made known to all employees. Furthermore, code of conduct for employees should include reporting of scandals together with its associated benefits and sanctions. Also, organizations would have to practice consultative/participatory governance system to minimize the effect of high power distance. Finally, regulations should be enacted and enforced to safeguard reporters of corporate scandals.

Originality/value

This research consolidated the challenges associated with reporting corporate scandals and provides remedies to curtail such challenges so as to encourage employees to report corporate scandals.

Citation

Hilton, S.K. and Arkorful, H. (2021), "Remediation of the challenges of reporting corporate scandals in governance", International Journal of Ethics and Systems, Vol. 37 No. 3, pp. 356-369. https://doi.org/10.1108/IJOES-03-2020-0031