Ethical awareness, ethical judgment and whistleblowing: a moderated mediation analysis

Hengky Latan, Charbel Jose Chiappetta Jabbour, Ana Beatriz Lopes de Sousa Jabbour

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

This study aims to examine the ethical decision-making (EDM) model
proposed by Schwartz (2015), where we consider the factors of non-rationality and aspects that affect ethical judgments of the auditor to arrive at the decision to blow the whistle. In this paper, we argue that the intention of whistleblowing depends on ethical awareness (EAW) and ethical judgment (EJW) as well as there is a mediation moderation due to emotion (EMT) and perceived moral intensity (PMI) of auditors. Data was collected using an online survey of 162 external auditors who worked for an audit firm in Indonesia as well as 173 internal auditors working in manufacturing and financial services. The results of the multigroup analysis show that emotion (EMT) can mediate the relationship between EAW and EJW. This relationship becomes more complex when moderating variables using Consistent Partial Least Squares (PLSc) approach are added. We found that EMT and PMI can improve the relationship between ethical judgments of the auditor and whistleblowing intentions. These findings indicate that internal auditors are more likely to whistle the blow than external auditors; and reporting wrongdoing internally and anonymously are the preferred ways to blow the whistle in Indonesia.
LanguageEnglish
Pages1-41
Number of pages41
JournalJournal of Business Ethics
Early online date18 Apr 2017
DOIs
Publication statusE-pub ahead of print - 18 Apr 2017

Fingerprint

mediation
emotion
Indonesia
financial service
online survey
audit
manufacturing
firm
decision making
Whistle blowing
Ethical judgment
Mediation
Auditors
Emotion
External auditor
Moral intensity
Intentions

Keywords

  • whistleblowing
  • ethical decision making
  • emotion
  • perceived moral intensity
  • professional accountants
  • responsible business

Cite this

Latan, Hengky ; Chiappetta Jabbour, Charbel Jose ; Lopes de Sousa Jabbour, Ana Beatriz. / Ethical awareness, ethical judgment and whistleblowing : a moderated mediation analysis. In: Journal of Business Ethics. 2017 ; pp. 1-41.
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Ethical awareness, ethical judgment and whistleblowing : a moderated mediation analysis. / Latan, Hengky; Chiappetta Jabbour, Charbel Jose; Lopes de Sousa Jabbour, Ana Beatriz.

In: Journal of Business Ethics, 18.04.2017, p. 1-41.

Research output: Contribution to journalArticle

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