Determinant Factors of Whistleblowing Intention

Abstract

Whistleblowing is an act of reporting by organizational participants about illegal, immoral practices done by colleagues or their superiors. None are willing to whistle blow due to the consequences behind it. Therefore, a whistleblowing system is applied to encourage the active role of all parties to whistle blow potential/occurrence of fraud, sincerely and responsibly. This research reveals the effect of behavioral control, personal cost, ethical environment, moral identity, and risk aversion on whistleblowing intentions. This study uses primary data collected from Jakarta's finance, accounting, marketing, and procurement divisions implementing a whistleblowing system. The result showed a positive influence of perceptions of behavioral control and ethical environment on whistleblowing intentions. Risk aversion strengthens the positive effect of moral identity and weakens the negative impact of personal cost on whistleblowing intentions. Based on this result, the leaders need to socialize the existence of a witness protection mechanism to convince and provide guarantees for the safety of whistleblowers and rewards for their courage and moral awareness, reducing the occurrence of potential fraud.