Jamaliah Said, Normah Omar, Marhamah Rafidi and Sharifah Norzehan Syed Yusof
This paper aims to examine whether individual factors (religiosity and ethical values) and organizational factors (ethical leadership and whistleblowing practices) contribute to…
Abstract
Purpose
This paper aims to examine whether individual factors (religiosity and ethical values) and organizational factors (ethical leadership and whistleblowing practices) contribute to employee fraud mitigation.
Design/methodology/approach
Guided by Corporate Integrity System Malaysia, this study developed and collected 101-questionnaire survey from Royal Custom officers.
Findings
The findings revealed that individual factors (religiosity and ethical values) significantly contribute to fraud reduction, and organizational factors (both ethical leadership and whistle blowing practices) do not significantly contribute to employee fraud mitigation.
Originality/value
This study serves as a useful guide to alert and educate employers, professionals, law enforcement officers and policymakers of the importance of individual and organizational factors in mitigating employee fraud. There is very little empirical research conducted on employee fraud in Malaysia. This research helps bring that to light.
Details
Keywords
Jamaliah Said, Md. Mahmudul Alam, Dar Irna Bt Mohamed and Marhamah Rafidi
Whistleblowing is an important factor in preventing corruption and fraud in organizations. There is a law to promote whistleblowing practices, but the negative subsequent effect…
Abstract
Purpose
Whistleblowing is an important factor in preventing corruption and fraud in organizations. There is a law to promote whistleblowing practices, but the negative subsequent effect of whistleblowing demotivates the reporting of unethical behaviors. Thus, it is important to identify the factors that motivate an employee to exercise whistleblowing in an organization. Therefore, the purpose of this paper is to examine whether the personal factor of job satisfaction and organizational factors such as fair treatment as well as cooperativeness contribute to the whistleblowing practice in an organization.
Design/methodology/approach
This study collected primary data based on a questionnaire survey from 73 respondents of the seven top most government linked companies (GLCs) in Malaysia. The data are analyzed using descriptive statistics, factor analysis, and cross-sectional regression.
Findings
The findings of the study reveal that only fair treatment is statistically significant and positively related to the whistleblowing practice. The findings imply that if employees perceive that the organization provides fair treatment in terms of career advancement, awards, training, performance appraisal, job assignment, and pay increases, they would tend to report wrongdoing activities to protect the image of the organization.
Practical implications
The findings of the study will help the policy makers to ensure better working environment and accountability in the public sector of Malaysia and other similar countries.
Originality/value
This is an original study based on primary data to examine the current practices of whistleblowing and its relationship with the practices of job satisfaction, fair treatment, and cooperativeness in the GLCs of Malaysia.