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From Inaction to External Whistleblowing: The Influence of the Ethical Culture of Organizations on Employee Responses to Observed Wrongdoing

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ERIM report series research in management Erasmus Research Institute of Management

Putting measures in place to prevent wrongdoing in organizations is important, but detecting and correcting wrongdoing is just as vital. Employees who observe wrongdoing should therefore be encouraged to respond in a manner that supports corrective action. This paper examines the influence of the ethical culture of organizations on employee responses to observed wrongdoing.The findings show that, contrary to transparency and congruency of management, many other dimensions of ethical culture were negatively related to inaction and external whistleblowing and positively related to direct interven-tion, reporting to management and calling an ethics hotline. The model used for ethical culture explained 27.5% of intended responses by employees.

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Keywordsethical culture,ethics hotline,reporting,whistleblowing,wrongdoing
JELMultinational Firms; International Business (jel F23),Corporate Finance and Governance (jel G3),Business Administration and Business Economics; Marketing; Accounting (jel M),Corporate Culture; Social Responsibility (jel M14)
PublisherErasmus Research Institute of Management
Persistent URLhdl.handle.net/1765/16600
SeriesERIM Report Series Research in Management
JournalERIM report series research in management Erasmus Research Institute of Management
OrganisationErasmus Research Institute of Management
Citation
Kaptein, M. (2009).From Inaction to External Whistleblowing: The Influence of the Ethical Culture of Organizations on Employee Responses to Observed Wrongdoing (No. ERS-2009-047-ORG).ERIM report series research in management Erasmus Research Institute of Management. Retrieved from http://hdl.handle.net/1765/16600

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