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Corporate virtue: Treatment of whistle blowers and the punishment of violators

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  • Arce, Daniel G.

Abstract

An evolutionary game-theoretic model is employed to address three essential aspects of whistle blowing: ethical decision making, the duality of mutual accountability among cohorts in large organizations, and role conflict between individual and organizational values. I derive an equilibrium condition relating the treatment of whistle blowers to the punishment of violators. The model facilitates an evaluation of the whistle blowing provisions in the Sarbanes-Oxley (2002) Act.

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  • Arce, Daniel G., 2010. "Corporate virtue: Treatment of whistle blowers and the punishment of violators," European Journal of Political Economy, Elsevier, vol. 26(3), pages 363-371, September.
    • Handle: RePEc:eee:poleco:v:26:y:2010:i:3:p:363-371
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    Cited by:

    1. Heinrich Ursprung, 2012. "The evolution of sharing rules in rent seeking contests: Incentives crowd out cooperation," Public Choice, Springer, vol. 153(1), pages 149-161, October.
    2. Frederick Bereskin & Terry Campbell II & Simi Kedia, 2020. "Whistle Blowing, Forced CEO Turnover, and Misconduct: The Role of Socially Minded Employees and Directors," Management Science, INFORMS, vol. 66(1), pages 24-42, January.
    3. Daniel Arce, 2015. "Integrity, unprincipled agents and corporate governance reform," European Journal of Law and Economics, Springer, vol. 39(3), pages 539-551, June.
    4. Quinteros, María José & Villena, Marcelo J. & Villena, Mauricio G., 2019. "Whistleblowing Behavior in Organizations," MPRA Paper 99215, University Library of Munich, Germany, revised 24 Nov 2019.

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