Ilham Nuryana Fatchan

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.

Type of the article: Research Article

Abstract
This paper empirically analyzes the influence of the Shariah Supervisory Board (SSB) and its characteristics on the disclosure of the Islamic Corporate Ethical Identity (ICEI) among 42 Islamic banks in Qatar, Indonesia, Saudi Arabia, Malaysia, the United Arab Emirates, and Turkey (collectively referred to as QISMUT) during the period 2019–2023. The study employs text analysis to measure the extent to which ICEI information is disclosed in these banks’ annual reports, demonstrating a significant increase in such disclosures over the analyzed period.
The study utilizes descriptive statistics to provide a foundational understanding of the trends in ICEI reporting. Furthermore, it applies multiple regression analysis to ascertain the relationship between SSB characteristics and ICEI disclosures, controlling for variables such as bank size, financial performance, and economic performance.
The findings reveal significant disparities in ICEI disclosure rates, with Turkey exhibiting the lowest levels and Saudi Arabia the highest. This variation indicates a notable deficiency in the emphasis on ICEI among Islamic banks within the region. Additionally, the study highlights a positive correlation between SSB characteristics and ICEI disclosure levels. Banks with larger SSBs, possessing diverse expertise, intellect, and reputable credentials, tend to show higher ICEI disclosure levels. This suggests that effective SSBs enhance the governance of Islamic banks, promoting adherence to Islamic ethical standards. However, intriguingly, the study finds a significant impact of ICEI disclosure on the financial performance of these banks. In conclusion, Islamic banks should strengthen governance and improve communication about ICEI disclosures to enhance transparency, accountability, and alignment with Islamic values, boosting financial performance.