AAA Spark Meeting of the Regions

The Impact of the Legal and Cultural Environment on Whistle-Blowing in Russia

• In Event: Accounting Professionals' Behaviors

Abstract

Whistle-blower protection is an effective tool for fighting fraud, mismanagement, and corruption in a marketplace. The protection is also necessary to ensure transparency and accountability of private and public sectors. This study explores legal environment and cultural factors and their impact on the propensity for whistle-blowing in Russia. The analysis is based on the survey conducted among Russian managers from diverse economic sectors and students pursuing an executive MBA degree. The study uses the principal component analysis (PCA), t-test, and ANOVA techniques to analyze the data. We found that there are significant differences in the propensity to whistle-blow and the sense of morality among Russian respondents. The findings revealed a high effect of personal relationships (blat) on work relationships and the propensity to whistle-blow. Monetary rewards had no impact on whistle-blowing in Russia. Our findings showed that older respondents felt less favorable towards whistle-blowing compared to younger respondents. The results of this study will help policy makers, managers, accountants, and other professionals who conduct business in Russia. This paper offers new insights into understanding of whistle-blowing in Russia and how the national culture, traditions, and personal relationships may influence the propensity of Russian working adults to whistle-blow.

Authors

• Dina Clark, Bloomsburg University

• Natalia Ermasova, Governors State University

• Victoria Geyfman, Bloomsburg University