Measuring internal auditor’s intention to blow the whistle (a Quasi-experiment of internal auditors in the local government)
Abstract
This study measures the cognitive moral development and tests its interaction with antecedent variables of prosocial behaviour such as fraud level, the status of person committing fraud and cohesiveness in affecting the willingness of internal auditors of local government (APIPs) to be a whistleblower. Quasi-experiment between subject design using pattern of 3×2×2×2 and 2×2 full factorial was employed in this research. The participants involved were internal auditors of 24 local governments in South Sulawesi which were divided into 18 groups. The data were analysed using ANOVA and t-test. The results of this study showed that based on the Cognitive Moral Development (CMD), majority of the internal auditors were categorised as pragmatic, the least number were autonomous, while accommodation was in between of both. Moreover, the intention of APIP to whistleblow was found high though insignificantly different among the three categories of CMD. Similarly, the different was insignificant among the variance of fraud level, the status of person committing fraud, and cohesiveness. The interaction between CMD and treatment variables resulted insignificant figure, except for the interaction between CMD and the fraud level which indicated significant result. Generally, it can be concluded that APIPs have a high intention to blow, but the intention will differ when their CMD interact with the fraud level and cohesiveness.
Keyword : cognitive moral, Fraud, position, status, prosocial behaviour, cohesiveness, whistleblower
How to Cite
Habbe, A. H., Rasyid, S., Arif, H., & Muda, I. (2019). Measuring internal auditor’s intention to blow the whistle (a Quasi-experiment of internal auditors in the local government). Business: Theory and Practice, 20, 224-233. https://doi.org/10.3846/btp.2019.22
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Greenberger DB, Marcia P Miceli, Debra JC (1987) Oppositionists and group norms: The reciprocal influence of whistle- blowers and co-workers. Journal of Business Ethics 6(2): 527–542. https://doi.org/10.1007/BF00383744
Habbe AH, Alimuddin A Kusumawati, A Rura Y (2017) Cognitive moral development, organizational situation, and ethical decision making in business and accounting. Working Paper.
Habbe AH, Mande H (2016) The effect of information sequential and personality on the investor belief revision. Ponte, International Scientific Researches Journal 72(10): 150–166.
Hill GW (1982) Group versus individual performance: Are N+1 head better than one? Psychological Bulletin 91 (3): 517-539. https://doi.org/10.1037/0033-2909.91.3.517
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Hofstede G (1997) Cultures and Organizations: Software of the Mind. London: McGraw-Hill.
Hofstede G, Gert JH, Michael M (2010) Cultures and organisations: Software of the mind intercultural cooperation and its importance for survival. New York: McGraw-Hill.
Jones TM (1991) Ethical decision making by individuals in organizations: An issue-contingent model. Academy of Management Review 16(2): 366–395. https://doi.org/10.5465/amr.1991.4278958
Jubb B (2000) Auditors as whistleblowers. International Journal of Auditing 4(1): 153–167. https://doi.org/10.1111/1099-1123.00310
Jubb PB (1999) Whistleblowing: A restrictive definition and interpretation. Journal of Business Ethics 21(2): 77–94. https://doi.org/10.1023/A:1005922701763
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King G (1997) The Effects of interpersonal closeness and issue seriousness on blowing the whistle. The Journal of Business Communication 34(4): 419–436. https://doi.org/10.1177/002194369703400406
Kohlberg L (1971) Stages of moral development as a basis of moral education. in Beck CM, Crittenden BS, Sullivan EV (pnyt.). Moral education: interdisciplinary approaches. New York: Newman Press, 23-92. https://doi.org/10.3138/9781442656758-004
Kohlberg L (1977) The cognitive-developmental approach to moral education. Dalam. Rogrs D. Issues in adolescent psychology. New Jersey: Printice Hall, Inc., 283-299.
Kohlberg L (1984) The psychology of moral development: The nature and validity of moral stages (Vol. 2). Harpercollins College Div.
Mattingly C (1991) What is clinical reasoning? The American Journal of Occupational Therapy 45 (11): 979-986. https://doi.org/10.5014/ajot.45.11.979
Miceli MP (1994) Relationships among value congruence, perceived victimization, and retaliation against whistle-blowers. Journal of Management 20(4): 773–794. https://doi.org/10.1177/014920639402000405
Miceli MP (1994) Relationships among value congruence, perceived victimization, and retaliation against whistle-blowers. Journal of Management 20(4): 773–794. https://doi.org/10.1177/014920639402000405
Miceli MP, Janet PN, Charles RS (1991) Who blows the whistle and why? Industrial and Labor Relations Review 45 (1): 113-130. https://doi.org/10.1177/001979399104500108
Miceli MP, Janet PN (1985) Characteristics of organizational climate and perceived wrongdoing associated with whistle-blowing decisions. Personnel Psychology 38 (2): 525-544. https://doi.org/10.1111/j.1744-6570.1985.tb00558.x
Miceli MP, Michael Rehg, Janet P Near, Katherine CR (1999) Can law protect whistle-blowers? Work and Occupations 26 (1): 129-151. https://doi.org/10.1177/0730888499026001007
Miller DL, Thomas T (2005) The impact of relative position and relational closeness on reporting of unethical acts. Journal of Business Ethics 61(3): 315–328. https://doi.org/10.1007/s10551-005-8771-0
Patel C (2003) Some cross-cultural evidence on whistle-blowing as an internal control mechanism. Journal of International Accounting Research 2(1): 69–96. https://doi.org/10.2308/jiar.2003.2.1.69
Rest JR (1979) Revised manual for the defining issues test: An objective test of moral judgment development. Minnesota Moral Research Projects.
Rest JR (1994) Background: Theory and Research James R. Rest. In Moral development in the professions. Psychology Press, 13-38.
Rushton JP, Chrisjohn RD, Fekken GC (1981) The altruistic personality and the self-report altruism scale. Personality and individual differences 2(4): 293–302. https://doi.org/10.1016/0191-8869(81)90084-2
Sabang I (2013) Cheating, Fraud status, individual-group interaction, and interests being a whistleblower. Thesis Unpublished. Brawijaya University.
Schultz Jr JJ, Douglas A Johnson DM, Sverre D (1993) An investigation of the reporting of questionable acts in an international setting. Journal of Accounting Research 31(1): 75–103. https://doi.org/10.2307/2491165
Tavakoli AA, Keenan JPB (2003) Culture and whistleblowing an empirical study of Croatian and United states managers utilizing hofstede’s cultural dimensions. Journal of Business Ethics 43(1): 49–64. https://doi.org/10.1023/A:1022959131133
Tharp K, Mattingly C (1991) Whistleblowing. Plastic surgical nursing: official journal of the American Society of Plastic and Reconstructive Surgical Nurses 11(1): 33–34.
Tsaharidu EE, Wim V (2008) Organisational whistleblowing policies: Making employees responsible or liable? Journal of Business Ethics 82 (1): 107-118. https://doi.org/10.1007/s10551-007-9565-3
Vandekerchove W (2006) Whistleblowing and organizational social responsibility: A global assessment. Ashgate Publishing Limited.
Witness & Victim Protection Agency (2011) Understanding whistleblower. Witness and Victim Protection Agency. Jakarta.
Xu Y, Ziegenfuss DE (2008) Reward systems, moral reasoning, and internal auditors’ reporting wrongdoing. Journal of Business and Psychology 22(4): 323–331. https://doi.org/10.1007/s10869-008-9072-2
Arnold DF Sr, Ponemon LA (1991) Internal auditors perceptions of whistleblowing and the influence of moral reasoning: An experiment. Auditing: A Journal of Practice and Theory 10(2): 1–15.
Ayers S, Kaplan SE (2005) Wrongdoing by consultants: An examination of employees’ reporting intentions. Journal of Business Ethics 57(2): 121–137. https://doi.org/10.1007/s10551-004-4600-0
Ayers S, Kaplan SE (2005) Wrongdoing by consultants: An examination of employees’ reporting intentions. Journal of Business Ethics 57(2): 121–137. https://doi.org/10.1007/s10551-004-4600-0
Brennan N, Kelly J (2007) A study of whistleblowing among trainee auditors. The British Accounting Review 39(1): 61–87. https://doi.org/10.1016/j.bar.2006.12.002
Brief APS, Motowidlo JM (1986) Prosocial organizational behaviors. The Academy of Management Review 11(4): 710–725. https://doi.org/10.5465/amr.1986.4283909
Clark MS (1981) Noncomparability of benefits given and received: A cue to the existence of friendship. Social Psychology Quarterly 44(4): 375–381. https://doi.org/10.2307/3033907
Clark MS, Miller J (1979) Interpersonal attraction in exchange and communal relationships. Journal of Personality and Social Psychology 37(1): 12–24. https://doi.org/10.1037/0022-3514.37.1.12
Cortina LM, Magley VJ (2003) Raising voice, risking retaliation: events following interpersonal mistreatment in the workplace. Journal of Occupational Health Psychology 8(4): 247–265. https://doi.org/10.1037/1076-8998.8.4.247
Dozier JB, Marcia P Miceli (1985) Potential predictors of whistle-blowing: A prosocial behavior perspective. Academy of Management Review 10(4): 823–836. https://doi.org/10.5465/amr.1985.4279105
Elias A, Ryan L, Sulkes A, Collins J, Aisner J, Antman KH (1989) Response to mesna, doxorubicin, ifosfamide, and dacarbazine in 108 patients with metastatic or unresectable sarcoma and no prior chemotherapy. Journal of Clinical Oncology 7(9): 1208–1216. https://doi.org/10.1200/JCO.1989.7.9.1208
Goodwin J, David G (1999) Ethical judgments across cultures: A comparison between business students from Malaysia and New Zealand. Journal of Business Ethics 18(1): 267–281. https://doi.org/10.1023/A:1005785020162
Greenberger DB, Marcia P Miceli, Debra JC (1987) Oppositionists and group norms: The reciprocal influence of whistle- blowers and co-workers. Journal of Business Ethics 6(2): 527–542. https://doi.org/10.1007/BF00383744
Habbe AH, Alimuddin A Kusumawati, A Rura Y (2017) Cognitive moral development, organizational situation, and ethical decision making in business and accounting. Working Paper.
Habbe AH, Mande H (2016) The effect of information sequential and personality on the investor belief revision. Ponte, International Scientific Researches Journal 72(10): 150–166.
Hill GW (1982) Group versus individual performance: Are N+1 head better than one? Psychological Bulletin 91 (3): 517-539. https://doi.org/10.1037/0033-2909.91.3.517
Hofstede G (1980) Culture’s consequences: international differences in work related values. Sage Publications, Beverly Hills, CA.
Hofstede G (1997) Cultures and Organizations: Software of the Mind. London: McGraw-Hill.
Hofstede G, Gert JH, Michael M (2010) Cultures and organisations: Software of the mind intercultural cooperation and its importance for survival. New York: McGraw-Hill.
Jones TM (1991) Ethical decision making by individuals in organizations: An issue-contingent model. Academy of Management Review 16(2): 366–395. https://doi.org/10.5465/amr.1991.4278958
Jubb B (2000) Auditors as whistleblowers. International Journal of Auditing 4(1): 153–167. https://doi.org/10.1111/1099-1123.00310
Jubb PB (1999) Whistleblowing: A restrictive definition and interpretation. Journal of Business Ethics 21(2): 77–94. https://doi.org/10.1023/A:1005922701763
Kaplan SE, Whitecotton SM (2001) An examination of auditors’ reporting intentions when another auditor is offered client employment. Auditing: A Journal of Practice and Theory 20(1): 45–63. https://doi.org/10.2308/aud.2001.20.1.45
King G (1997) The Effects of interpersonal closeness and issue seriousness on blowing the whistle. The Journal of Business Communication 34(4): 419–436. https://doi.org/10.1177/002194369703400406
Kohlberg L (1971) Stages of moral development as a basis of moral education. in Beck CM, Crittenden BS, Sullivan EV (pnyt.). Moral education: interdisciplinary approaches. New York: Newman Press, 23-92. https://doi.org/10.3138/9781442656758-004
Kohlberg L (1977) The cognitive-developmental approach to moral education. Dalam. Rogrs D. Issues in adolescent psychology. New Jersey: Printice Hall, Inc., 283-299.
Kohlberg L (1984) The psychology of moral development: The nature and validity of moral stages (Vol. 2). Harpercollins College Div.
Mattingly C (1991) What is clinical reasoning? The American Journal of Occupational Therapy 45 (11): 979-986. https://doi.org/10.5014/ajot.45.11.979
Miceli MP (1994) Relationships among value congruence, perceived victimization, and retaliation against whistle-blowers. Journal of Management 20(4): 773–794. https://doi.org/10.1177/014920639402000405
Miceli MP (1994) Relationships among value congruence, perceived victimization, and retaliation against whistle-blowers. Journal of Management 20(4): 773–794. https://doi.org/10.1177/014920639402000405
Miceli MP, Janet PN, Charles RS (1991) Who blows the whistle and why? Industrial and Labor Relations Review 45 (1): 113-130. https://doi.org/10.1177/001979399104500108
Miceli MP, Janet PN (1985) Characteristics of organizational climate and perceived wrongdoing associated with whistle-blowing decisions. Personnel Psychology 38 (2): 525-544. https://doi.org/10.1111/j.1744-6570.1985.tb00558.x
Miceli MP, Michael Rehg, Janet P Near, Katherine CR (1999) Can law protect whistle-blowers? Work and Occupations 26 (1): 129-151. https://doi.org/10.1177/0730888499026001007
Miller DL, Thomas T (2005) The impact of relative position and relational closeness on reporting of unethical acts. Journal of Business Ethics 61(3): 315–328. https://doi.org/10.1007/s10551-005-8771-0
Patel C (2003) Some cross-cultural evidence on whistle-blowing as an internal control mechanism. Journal of International Accounting Research 2(1): 69–96. https://doi.org/10.2308/jiar.2003.2.1.69
Rest JR (1979) Revised manual for the defining issues test: An objective test of moral judgment development. Minnesota Moral Research Projects.
Rest JR (1994) Background: Theory and Research James R. Rest. In Moral development in the professions. Psychology Press, 13-38.
Rushton JP, Chrisjohn RD, Fekken GC (1981) The altruistic personality and the self-report altruism scale. Personality and individual differences 2(4): 293–302. https://doi.org/10.1016/0191-8869(81)90084-2
Sabang I (2013) Cheating, Fraud status, individual-group interaction, and interests being a whistleblower. Thesis Unpublished. Brawijaya University.
Schultz Jr JJ, Douglas A Johnson DM, Sverre D (1993) An investigation of the reporting of questionable acts in an international setting. Journal of Accounting Research 31(1): 75–103. https://doi.org/10.2307/2491165
Tavakoli AA, Keenan JPB (2003) Culture and whistleblowing an empirical study of Croatian and United states managers utilizing hofstede’s cultural dimensions. Journal of Business Ethics 43(1): 49–64. https://doi.org/10.1023/A:1022959131133
Tharp K, Mattingly C (1991) Whistleblowing. Plastic surgical nursing: official journal of the American Society of Plastic and Reconstructive Surgical Nurses 11(1): 33–34.
Tsaharidu EE, Wim V (2008) Organisational whistleblowing policies: Making employees responsible or liable? Journal of Business Ethics 82 (1): 107-118. https://doi.org/10.1007/s10551-007-9565-3
Vandekerchove W (2006) Whistleblowing and organizational social responsibility: A global assessment. Ashgate Publishing Limited.
Witness & Victim Protection Agency (2011) Understanding whistleblower. Witness and Victim Protection Agency. Jakarta.
Xu Y, Ziegenfuss DE (2008) Reward systems, moral reasoning, and internal auditors’ reporting wrongdoing. Journal of Business and Psychology 22(4): 323–331. https://doi.org/10.1007/s10869-008-9072-2