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Encouraging Whistle Blowing to Improve Corporate Governance? A Malaysian Initiative

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  • Shanthy Rachagan
  • Kalaithasan Kuppusamy

Abstract

This article reviews if the introduction of new laws to encourage and protect whistleblowers is sufficient to improve corporate governance in Malaysian public-listed companies. It provides suggestions to formulate internal whistle-blowing policies for companies. It concludes that due to the culture of the people and the taxonomy of Malaysian public-listed companies and companies in other countries in the Asia–Pacific region, having laws to encourage and protect whistleblowers to get rid of corporate wrong-doings is not necessarily the only solution. The article defines whistle blowing and the benefits of encouraging whistleblowers. It proceeds to highlight the issues of concern on whistle blowing. It also deliberates particular issues of whistleblowing in Malaysia by discussing the taxonomy of Malaysian public-listed companies, the strength of the regulators in enforcement, the Malaysian culture, and the Malaysian corporate scandals. The article elaborates on the whistle-blowing laws in Malaysia and concludes by providing alternate ways to encourage whistle blowing in Malaysian companies having in mind the taxonomy of Malaysian companies, enforcement by regulators and the Malaysian culture. Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • Shanthy Rachagan & Kalaithasan Kuppusamy, 2013. "Encouraging Whistle Blowing to Improve Corporate Governance? A Malaysian Initiative," Journal of Business Ethics, Springer, vol. 115(2), pages 367-382, June.
    • Handle: RePEc:kap:jbuset:v:115:y:2013:i:2:p:367-382
    DOI: 10.1007/s10551-012-1402-7
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    References listed on IDEAS

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    1. Stijn Claessens & Simeon Djankov & Joseph P. H. Fan & Larry H. P. Lang, 2002. "Disentangling the Incentive and Entrenchment Effects of Large Shareholdings," Journal of Finance, American Finance Association, vol. 57(6), pages 2741-2771, December.
    2. On Kit Tam & Monica Guo‐Sze Tan, 2007. "Ownership, Governance and Firm Performance in Malaysia," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 208-222, March.
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    Cited by:

    1. Clark, Daniel R., 2023. "Embracing whistleblowing for enhanced firm self-regulation," Business Horizons, Elsevier, vol. 66(6), pages 817-833.
    2. Mia Mahmudur Rahim, 2017. "Improving Social Responsibility in RMG Industries Through a New Governance Approach in Laws," Journal of Business Ethics, Springer, vol. 143(4), pages 807-826, July.
    3. Mujeeb Saif Mohsen Al-Absy & Ku Nor Izah Ku Ismail & Sitraselvi Chandren, 2019. "Corporate Governance Mechanisms, Whistle-Blowing Policy and Real Earnings Management," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(6), pages 265-282, October.
    4. Barbara Culiberg & Katarina Katja Mihelič, 2017. "The Evolution of Whistleblowing Studies: A Critical Review and Research Agenda," Journal of Business Ethics, Springer, vol. 146(4), pages 787-803, December.
    5. Hanen Khemakhem & Richard Fontaine & Nadia Smaili & Mahbub Zaman, 2023. "Whistleblowing regulations and the role of audit committees: insight from interviews," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(1), pages 131-151, March.
    6. Maura Campra & Paolo Esposito & Valerio Brescia, 2023. "Corporate social responsibility and technological perspectives in healthcare: An exploratory analysis of the evolution of the anti‐corruption system through multiple case studies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 2816-2829, November.
    7. Tengku Noor Maziah Tuan Abdullah & Intan Salwani Mohamed & Siti Nur Shuhada Nazuri, 2024. "Factors Influencing Whistleblowing Intentions within Malaysian Enforcement Agencies," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(10), pages 3068-3084, October.
    8. Shweta Mehrotra & R. K. Mishra & V. Srikanth & Govind Prasad Tiwari & E. V. Mahesh Kumar, 2020. "State of Whistleblowing Research: A Thematic Analysis," FIIB Business Review, , vol. 9(2), pages 133-148, June.
    9. Miranda Tanjung, 2020. "A cross-firm analysis of corporate governance compliance and performance in Indonesia," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 35(5), pages 621-643, February.
    10. Hengky Latan & Charbel Jose Chiappetta Jabbour & Ana Beatriz Lopes de Sousa Jabbour, 2021. "To Blow or Not to Blow the Whistle: The Role of Rationalization in the Perceived Seriousness of Threats and Wrongdoing," Journal of Business Ethics, Springer, vol. 169(3), pages 517-535, March.
    11. Pietro Previtali & Paola Cerchiello, 2022. "Organizational Determinants of Whistleblowing. A Study of Italian Municipalities," Public Organization Review, Springer, vol. 22(4), pages 903-918, December.

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