The Effectiveness of Internal Whistleblowing Intention on Malaysian Companies : Mediated by Trust in Leader

D. Jayaseelan, Lavena (2022) The Effectiveness of Internal Whistleblowing Intention on Malaysian Companies : Mediated by Trust in Leader. Masters thesis, Tunku Abdul Rahman University College.

Text MBBD5308 PROJECT PAPER - Lavena D. Jayaseelan.pdf Restricted to Registered users only Download (1MB)

Abstract

The development of the Enron and WorldCom cases in early 2000 heralded the growth of fraud-related issues as a global concern during the last few decades. Whistleblowing is regarded as one of the most effective methods for detecting and preventing ethical infractions, such as accounting fraud. It is critical that Malaysia's anti-corruption laws are constantly updated, improved, and reformed as part of ongoing efforts and measures to combat corruption. However, corruption issues continue to be a major focus in Malaysia's mainstream media. From 2014 to 2017, Malaysia's place in the Corruption Perception Index (CPI) dropped considerably. it is critical for policymakers to investigate the governance system in order to encourage more disclosure of wrongdoings. Whistleblowing policies should be one of the techniques used to strengthen the company integrity system, since they should not only encourage public employees to disclose wrongdoings, but also provide them with an appropriate channel through which to do so. With that, a quantitative research study is conducted through the collection of primary data via online survey questionnaires from 120 employees working in Malaysian companies to satisfy the research questions and objectives. The findings exhibited that trust in leader mediates the relationship between ethical awareness and internal whistleblowing intention. It provides insight on how a leader would be able to make changes in Malaysia despite all the disastrous national cultures which are intoxicating the country. Practically, it delivers the awareness for Malaysian companies to start fostering ethical awareness. Keywords: Perceived Ethical Leadership; Perceived Distributive Justice; Ethical Awareness; Internal Whistleblowing Intention; Trust in Leader; Whistleblowing; Corporate Governance.