The Determinants that Affect the Intention to Whistleblowing : the Mediating Role of Ethical Sensitivity

Shiek Suleiman Bux, Shiek Shawin Bux (2024) The Determinants that Affect the Intention to Whistleblowing : the Mediating Role of Ethical Sensitivity. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

Despite the worldwide drive for regulatory reforms, instances of corporate misconduct persist, as evidenced by recent cases involving Wells Fargo, Toyota Motor Company, and Volkswagen. Malaysia is no exception to this trend, as corruption remains a pressing issue. Surprisingly, despite the implementation of the Whistleblower Protection Act 2010, instances of wrongdoing remain prevalent, and the number of whistleblowers is low. This situation has also raised doubts about the effectiveness of company secretaries as crucial corporate gatekeepers. This prompts an examination into the factors that deter these individuals from engaging in whistleblowing behaviour. Considering the theoretical framework of Moral Intensity Theory and Stakeholder Theory was underexplored in Malaysia's existing literature on whistleblowing intention, this study aims to address these gaps by examining the relationship between moral intensity, professional commitment, ethical sensitivity, and whistleblowing intention through the lens of these two theories. The objective is to enrich existing theoretical perspectives and establish a more comprehensive basis for future academic studies. To achieve these objectives, a total of 132 samples, exclusively comprising company secretaries, were collected via an online survey. The collected data were analysed using two statistical software packages. The statistical findings confirm that moral intensity and ethical sensitivity exert a significant positive effect on whistleblowing intention. However, professional commitment is found to exhibit an insignificant negative relationship with whistleblowing intention. Additionally, moral intensity and professional commitment are observed to exert significant and positive influences on ethical sensitivity. Furthermore, the statistical findings affirm that ethical sensitivity acts as a mediator between moral intensity and professional commitment concerning whistleblowing intention. The outcomes of this study are anticipated to yield significant theoretical and practical implications. They emphasise the importance of various factors in influencing individuals' decisions to engage in whistleblowing, shedding light on key determinants and potential strategies for action. As the study concludes, it acknowledges certain limitations and provides recommendations for future studies focused on enhancing the understanding of whistleblowing intention and developing effective strategies to bolster the effectiveness of the whistleblowing system in Malaysia