Putting measures in place to prevent wrongdoing in organizations is important, but detecting and correcting wrongdoing is just as vital. Employees who observe wrongdoing should therefore be encouraged to respond in a manner that supports corrective action. This paper examines the influence of the ethical culture of organizations on employee responses to observed wrongdoing. The findings show that, contrary to transparency and congruency of management, many other dimensions of ethical culture were negatively related to inaction and external whistleblowing and positively related to direct interven-tion, reporting to management and calling an ethics hotline. The model used for ethical culture explained 27.5% of intended responses by employees.

Additional Metadata
Keywords ethical culture, ethics hotline, reporting, whistleblowing, wrongdoing
JEL F23, Multinational Firms; International Business (jel), G3, Corporate Finance and Governance (jel), M, Business Administration and Business Economics; Marketing; Accounting (jel), M14, Corporate Culture; Social Responsibility (jel)
Publisher Erasmus Research Institute of Management (ERIM)
Persistent URL hdl.handle.net/1765/16600
Kaptein, S.P. (2009). From Inaction to External Whistleblowing: The Influence of the Ethical Culture of Organizations on Employee Responses to Observed Wrongdoing (No. ERS-2009-047-ORG). ERIM report series research in management Erasmus Research Institute of Management. Erasmus Research Institute of Management (ERIM). Retrieved from http://hdl.handle.net/1765/16600