Balancing Loyalties: A Behavioral Study on How Supervisor-Subordinate Relationships Affect Whistleblowing Intentions

• In Event: Behavioral Audit Research - Various Topics

Abstract

While good relationships among employees yield many benefits to organizations, they may have unintended consequences for whistleblowing. We investigate whether good employee-supervisor relationships reduce employees’ willingness to report wrongdoing by the supervisor. We also investigate whether good relationships mitigate the effect of evidence strength on reporting intention, and whether the presence of a code of ethics and employees’ belief that auditors’ work is important help to mitigate the negative effects of relationship quality on whistleblowing. We find that strong employee-supervisor relationships reduce whistleblowing intentions and reduce the effect of evidence strength on reporting intentions. We find that neither the presence of a code of ethics nor certification of a code of ethics mitigates the effect of relationship quality. However, we find that employees who believe auditors’ work is important are more likely to blow the whistle and are less susceptible to the negative effects of relationship quality. We also provide evidence that the effect of relationship quality on reporting intentions operates through perceived evidence strength and perceived betrayal.

Authors

• Jace Garrett, Clemson University

• Douglas F Prawitt, Brigham Young University

• Kyle Sopp, Florida State University