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Whistleblowing Environment in Indonesian Financial Institutions

Author

Listed:
  • Jennifer Erwin

    (Faculty of Business and Management, Asia Pacific University of Technology and Innovation, Kuala Lumpur, Malaysia.)

  • Associate Professor Dr. Barry Ramsay1

    (Faculty of Business and Management, Asia Pacific University of Technology and Innovation, Kuala Lumpur, Malaysia.)

Abstract

This study investigates the whistleblowing environment in Indonesian financial institutions from Indonesian employees’ perspective. Using primary data extracted from questionnaires this study to address two issues: investigate and explore the factor that encourages and discourages Indonesian employees to whistleblower in the Indonesian financial industry; and investigate and explore the Indonesian financial company’s environment that affects whistleblowing activity. Results were consistent with previous research by Martens and Kelleher (2004), Curtis (2006), Hwang, Staley, Chen and Lan (2008), Dandekar (1991) and Worth (2013) in their relative domains. The Indonesian employees and financial institutions are less influenced by confusion culture (guanxi) which provides some variations in findings from prior research. Generally in Indonesia Financial Institutions there is a positive sign towards whistleblowing activity, “where†companies create a positive environment to support the activity although more could be done by government to regulate and enforce compliance to encourage trust in protecting employees when whistleblowing.

Suggested Citation

  • Jennifer Erwin & Associate Professor Dr. Barry Ramsay1, 2015. "Whistleblowing Environment in Indonesian Financial Institutions," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 5(11), pages 28-35, November.
    • Handle: RePEc:mir:mirbus:v:5:y:2015:i:11:p:28-35
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