Why External Witnesses Report Organizational Misconduct to Inspectorates: A Comparative Case Study in Three Inspectorates

Abstract

Inspectorates and enforcement agencies increasingly depend on information from societal actors to detect and enforce business offenses, but little is known about the factors underlying external reporting. This paper aims to contribute to a better understanding of what drives external reporters to report offenses to enforcement agencies, and how reporters experience the reporting process. Potential reasons to report are derived of the literature on whistleblowing and on business relations within organizational fields. The article then presents findings of an extensive comparative, qualitative empirical study on reporting businesses. We find that reporters aim to incapacitate competitors who gain economic advantage by bending the rules, and regard inspectorates as their ally in maintaining a level playing field.