The Effects of Corporate Social Responsibility and Wrongdoer Rank on Whistleblowing

• In Event: Research Paper Session—Potpourri

Abstract

This study examines the effects of Corporate Social Responsibility (CSR) and wrongdoer rank on the likelihood of reporting fraud internally vs. externally. Using a 2 x 2 between-subjects experiment with 90 professional accounting managers as participants, we manipulate a hypothetical firm’s CSR status (CSR firm vs. non-CSR firm) and wrongdoer rank within the firm (CFO vs. Senior Accounting Manager). Results indicate that participants in the CSR condition are more likely to report fraud through the internal reporting channel relative to the external reporting channel. Further, results show that internal reporting likelihood is greater when the wrongdoer is the Senior Accounting Manager than when the wrongdoer is the CFO. SEM analysis reveals that affective organizational commitment fully mediates the relation between CSR status and the preference to report internally. These findings contribute to the understanding of how CSR influences fraud reporting and what factors drive employees to report internally vs. externally.

Authors

• Alisa Gabrielle Brink, Virginia Commonwealth University

• Christopher Kevin Eller, Virginia Commonwealth University

• Karen Green, University of Toledo