Whistleblowing Environment in Indonesian Financial Institutions

Authors

  • Jennifer Erwin Asia Pacific University
  • Barry Ramsay Asia Pacific University

DOI:

https://doi.org/10.18533/ijbsr.v5i11.898

Keywords:

Employees perspective, Financial Institutions, Indonesian, Whistleblowing.

Abstract

This study investigates the whistleblowing environment in Indonesian financial institutions from Indonesian employees’ perspective. Using primary data extracted from questionnaires this study to address two issues: investigate and explore the factor that encourages and discourages Indonesian employees to whistleblower in the Indonesian financial industry; and investigate and explore the Indonesian financial company’s environment that affects whistleblowing activity. Results were consistent with previous research by Martens and Kelleher (2004), Curtis (2006), Hwang, Staley, Chen and Lan (2008), Dandekar (1991) and Worth (2013) in their relative domains. The Indonesian employees and financial institutions are less influenced by confusion culture (guanxi) which provides some variations in findings from prior research. Generally in Indonesia Financial Institutions there is a positive sign towards whistleblowing activity, “where” companies create a positive environment to support the activity although more could be done by government to regulate and enforce compliance to encourage trust in protecting employees when whistleblowing.

Author Biography

  • Barry Ramsay, Asia Pacific University
    Dean, Faculty of Business and Management

References

Anwar, D. Z., (2003). Whistleblowing: Subversive Spy or Responsible Corporate Citizen? Retrieved from: http://www.sc.com.my/eng/html/resources/speech/sp_20030929. html [Accessed 29 October 2015].

Brody, R., Coulter, J., and Mihalek, P. H., (1998). Whistleblowing: A Cross Cultural Comparison of Ethical Perceptions of US and Japanese Accounting Students, American Business Review, 16(2), pp. 14-21.

Camerer, C., (2001). Protecting Whistle Blowers: The Protected Disclosure Act. Organization. 7 February, p.21.

Curtis, M. B., (2006). Whistleblower Mechanisms: A Study of the Perceptions of “Users” and “Responders”. Retrieved from: https://na.theiia.org/iiarf/Public%20Documents/ Whistleblower%20Mechanisms%20-A%20Study%20of%20the%20Perceptions%20of%20Users %20and%20Responders%20-%20Dallas.pdf [Accessed 23 October 2015].

Dandekar, N., (1991). Can Whistleblowing be fully legitimated? A Theoretical Discussion, Business and Professional Ethics Journal, 10, pp. 89-108.

GOV UK. (2015). Whistleblowing for employees. Retrieved from: https://www.gov.uk/whistleblowing/what-is-a-whistleblower [Accessed 25 October 2015].

Hwang, D., Staley, B., Chen, Y. T., and Lan, J. S., (2008). Confucian Culture and Whistleblowing by Professional Accountants: An Exploratory Study. Managerial Auditing Journal, 23(5), pp. 504-526.

Kelton, E. A., (2009). Rewarding Whistleblowers. Retrieved from: http://www.washingtonpost.com/wp-dyn/content/article/2009/03/20/AR2009032003188.html [Accessed 27 September 2015].

KPK, (2002). KPK Whistleblowers System. Retrieved from: https://kws.kpk.go.id/ [Accessed 27 September 2015].

Lennane, J. (1996). “What happens to whistle-blowers and why?”, in Woldring, K. (Ed.), Business Ethics in Australia and New Zealand: Essays and Cases, Thomas Nelson, Melbourne, pp. 51-63.

Loeb, S., and Cory, S., (1989). Whistleblowing and Management Accounting: An Approach, Journal of Business Ethics, 8, pp. 903-916.

Martens, L. T., and Kelleher, A., (2004). A Global Perspective on Whistleblowing, International Business Ethics Review, 7(2), pp. 1-7.

Miceli, M. P., and Near, J., (1992). Blowing the Whistle: The Organizational and Legal Implications for Companies and Employees. New Jersey: Lexington Books.

Mustapha, M., and Siaw, L. S., (2012). Will Final Year Accountancy Students Whistle Blow? A Malaysian Case. International Journal of Trade, Economics and Finance, 3(5), pp. 327-331.

Ravishankar, L., (2002). Encouraging Internal Whistleblowing in Organizations. Retrieved from: http://www.scu.edu/ethics/publications/submitted/whistleblowing.html [Accessed 4 September 2015].

Transparency International, (2014). 2014 Corruption Perceptions Index – Results. Retrieved from: http://www.transparency.org/cpi2014/results [Accessed 29 October 2015].

Verschoor, C. C., (2013). Whistleblower Need Encouragement, Not Roadblocks. Retrieved from: http://www.accountingweb.com/article/whistleblowers-need-encouragement-not-roadblocks/222544 [Accessed 27 January 2014].

Vinten, G., (1997). Corporate Governance, Credit Control, 81(2), pp. 27-31.

Weiss, J. W. (1994). Business Ethics, Wadsworth, Belmont, CA.

Worth, M., (2013). Whistleblowing in Europe Legal Protections for Whistleblowers in the EU. Retrieved from:http://www.transparency.org/whatwedo/pub/whistleblowing_in_ europe_legal_protections_ for_whistleblowers_in_the_eu [Accessed 27 August 2015].

Downloads

Published

2015-12-01

Issue

Section

Article