THE IMPACT OF TRUST ON THE RELATIONS BETWEEN ETHICAL LEADERSHIP AND INTERNAL WHISTLEBLOWING INTENTION

Andriati Fitriningrum, Ni Made Ayu Diah Pradnya Dewi, Nadya Nurul Imani

Abstract


The aim of this study is to examine the impacts of trust on the relationship between ethical leadership and internal whistleblowing intention. The study is motivated by lack of willingness of organisation members to willingly blow the whistle misconduct or unethical action internally compare to the external whistleblowing. The willingness to blow the whistle internally is crucial particularly to prevent the negative impacts of the organisation performance and reputation. Using a quantitative method through survey, this study examines 140 Indonesian public servants from three government financial institutions’ perceptions on trust, ethical leadership, and internal whistleblowing intention. Structural Equation Modelling (SEM) and Partial Least Square (PLS) are employed to test the impacts of trust on the relationship between ethical leadership and internal whistleblowing intention. This study emphasises the roles of affective and cognitive trusts on this relations. The study reveals that emotional feeling becomes a key for the development of affective trust which significantly affects the relations between ethical leadership and internal whistleblowing intentions. The length of working periods determines this development of trust. Therefore, the emotional feeling is a key for affective trust that influences the ethical leadership to encourage the willingness organisation members to intentionally whistleblowing misconduct or unethical action internally. This study contributes to accounting, corporate governance, fraud, whistleblowing, and business ethics fields.


Keywords


whistleblowing, ethical leadership, affective trust, cognitive trust.

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