GOVERNANCE AND WHISTLEBLOWING: A SYSTEMATIC LITERATURE REVIEW OF MANAGERIAL STRATEGIES FOR ENCOURAGING REPORTING AND MITIGATING RETALIATION

Abstract

This comprehensive review examines the significance of whistleblowing in encouraging organizational transparency and accountability. By exploring various aspects, including the importance, challenges, motivating factors, and effects of whistleblowing on organizations and auditors by considering various scandals and their impact on organizations, such as Enron, Volkswagen, WorldCom, and Olympus, which truly indicate the need of well-established whistleblowing mechanisms to prevent frauds and protect organizational goodwill. This study also explores structural issues such as power distance, weak implementation, and cultural differences are the challenges in establishing the whistleblowing mechanisms. Further, it highlights the different decisions individuals make in the "grey zone" between corruption and whistleblowing and also find that effective leadership is necessary to implement the organizational policies regarding whistleblowing mechanisms and ethical standards. An individual's intention to blow the whistle is significantly shaped by gender, culture, the risk of retaliation, and the regulatory environment, underscoring the necessity of strong protections and a supportive culture. Additionally, it explores the consequences of whistleblowing on director’s turnover and the pressure faced by auditors. The finding highlights the need for a strong regulatory framework, appropriate incentives, and oversights the structures of board. Overall, this study provides valuable insights into the significance and implications of whistleblowing in organizations.

Keywords:

Whistleblowing, Cultural Practices, Retaliation, Organizational Policies, Whistleblowers Rewards