Virtue and valor: Examining how ethical leadership and moral reasoning propel whistleblowing intentions
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Author(s)Fatchan AchyaniLink to ORCID Index: https://orcid.org/0009-0005-0315-8158
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Ilham Nuryana FatchanLink to ORCID Index: https://orcid.org/0000-0002-6086-1836
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Fuad Hudaya FatchanLink to ORCID Index: https://orcid.org/0009-0004-3191-1197
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FauzanLink to ORCID Index: https://orcid.org/0009-0006-8253-7566
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DOIhttp://dx.doi.org/10.21511/ppm.23(3).2025.40
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Article InfoVolume 23 2025, Issue #3, pp. 555-566
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3 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Type of the article: Research Article
Abstract
Whistleblowing plays a critical role in fraud detection, especially in organizations where fraudulent activities can severely undermine performance and trust. This study, conducted at Universitas Muhammadiyah Surakarta (one of the leading private universities in Indonesia), examines how students in accounting and management programs decide to report misconduct, influenced by moral reasoning and ethical leadership. The data were collected in 2024 through an online questionnaire distributed to 246 accounting and management students who are likely to face ethical dilemmas in their professional environments.
The findings reveal a significant correlation between ethical leadership (t = 6.788, p = 0.014) and moral reasoning (t = 2.411, p = 0.017) in shaping students’ propensity to engage in whistleblowing. Specifically, ethical leadership, characterized by leaders who prioritize integrity, transparency, and ethical behavior, significantly encourages individuals to report wrongdoing. Moreover, strong moral reasoning enables individuals to better understand ethical considerations, fostering an environment where whistleblowing is seen as a responsible action.
Interestingly, although both factors positively influence whistleblowing decisions, moral reasoning does not moderate the effect of ethical leadership on these decisions (t = –0.479, p = 0.632). This suggests that ethical leadership acts as a direct motivator for whistleblowing, independent of an individual’s moral reasoning. Ultimately, this study underscores the importance of cultivating ethical leadership within organizations to support and encourage whistleblowing, thereby enhancing fraud detection mechanisms and overall organizational integrity. It offers valuable new insights into the dynamics of moral conduct and its implications for future organizational regulations.
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JEL Classification (Paper profile tab)M14, M51, D63
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References67
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Tables6
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Figures0
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- Table 1. Demographics of research respondents
- Table 2. Descriptive statistics
- Table 3. Validity and reliability results
- Table 4. Classical assumption testing
- Table 5. Analysis results
- Table 6. Moderation regression analysis
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The effect of ethical leadership on management accountants’ performance: the mediating role of psychological well-being
Muhannad Akram Ahmad , Seif Obeid Al-Shbiel
doi: http://dx.doi.org/10.21511/ppm.17(2).2019.17
Problems and Perspectives in Management Volume 17, 2019 Issue #2 pp. 228-241 Views: 2238 Downloads: 670 TO CITE АНОТАЦІЯThis paper examined the impacts imparted by ethical leadership on both the performance and well-being of management accountants employed in public shareholding companies operating in Jordan. The mediating effect of psychological well-being was also examined. In testing the study hypotheses, analysis was performed on 93 obtained responses. The structural equation modeling (SEM) approach was used. From the outcomes, the ethical leadership level has significant impact on the psychological well-being of management accountants, while ethical leadership indirectly and significantly affects job performance, but only by way of psychological well-being. All these lend support to the mediating role of the psychological well-being of employees in the delineation of the link existing between ethical leadership and employee performance. Limitations and implications of the study are discussed. The directions of forthcoming studies are proposed as well.
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Fraud prevention in the Indonesian banking sector using anti-fraud strategy
Nanang Shonhadji ,
Soni Agus Irwandi
doi: http://dx.doi.org/10.21511/bbs.19(1).2024.02
Banks and Bank Systems Volume 19, 2024 Issue #1 pp. 12-23 Views: 2008 Downloads: 649 TO CITE АНОТАЦІЯFraud and financial crimes involving banking employees have become serious and complex problems throughout the world, including Indonesia. This study aimed to analyze a fraud prevention through anti-fraud strategy and modified situational crime prevention theory. Data were obtained using a questionnaire distributed and interviewed to accounting officers, marketing departments, customer services, tellers, operational supervisors and risk management of banks in Indonesia. Respondent filled in 217 questionnaires completely. The data analysis technique used is a path analysis technique with the WarpPLS. The results show that anti-fraud strategies have a positive effect on fraud prevention. Banking in Indonesia has succeeded in implementing anti-fraud strategy through a whistleblowing policy, which focuses on efforts to protect whistleblowers and disclose potential fraud, compliance with the implementation of internal controls in activity units, and the proper functioning of risk management. The modified situational crime prevention theory also has a positive effect, and religiosity is a moderating variable. The results have also informed that banks have attempted to create conditions and awareness for perpetrators that the benefits of fraud are less and not commensurate with the high risks borne, and narrowing opportunities and providing strict sanctions to perpetrators can prevent fraud.
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The impact of ethical leadership on employee engagement within a South African public higher education institution
Anrusha Bhana ,
Sachin Suknunan
doi: http://dx.doi.org/10.21511/ppm.17(4).2019.26
Problems and Perspectives in Management Volume 17, 2019 Issue #4 pp. 314-324 Views: 1667 Downloads: 694 TO CITE АНОТАЦІЯEthical leadership has become a fundamental building block amongst the corporate organizations globally. However, minimal research evidence was found from a higher education institution (HEI) perspective, including the evidence from a South African higher education setting. Due to the lack of research linking the ethical leadership`s style and employee`s engagement (EE) at higher education institutions, it becomes important to find out if ethical leadership can positively promote the EE, which, in turn, can promote various other benefits at the institutions. Therefore, this study aims to examine this from the perspective of ethical leadership style and its impact on the EE. This study focused on a large HEI (Higher Education institution) based in KwaZulu-Natal (South Africa). Quantitative data collection employed the probability sampling targeting 420 employees. Questionnaires were used as data collection tools and obtained a response rate of 312 (74%). The results show that the average mean value for EE (M = 2.87) was weak in comparison to the measurement standard of 3.00, which implied a lack of EE between leadership and employees. In addition, the results indicate that ethical leadership can positively influence the EE (M = 4.27), thus, indicating the need for more ethical leadership at this institution. Furthermore, the current lack of employee`s engagement by leaders that do not exhibit the ethical leadership style can result in employees` disengagement at the institution.
