What Goes Around Comes Around: An Examination of the Effect of Psychological Contract Violations on Fraud Reporting Intentions

• In Event: Research Paper Session—Potpourri

Abstract

A psychological contract violation (PCV) occurs when there is a divergence between what an individual believes they were promised by another and what they receive. In an employment context this often results from a breakdown in the social exchange relationship between employee and employer. A PCV may cause undesirable behaviors in employees, one of which is decreased intentions to report fraud. This study examines the effect of PCVs in an experiment, provoked through the work environment and observed outcomes to previous reports of unethical behavior, on intentions to internally report fraud. Results indicate that a PCV significantly reduced intention to report to the supervisor.

Author

• Andrea Scheetz, Case Western Reserve University