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Embracing whistleblowing for enhanced firm self-regulation

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  • Clark, Daniel R.

Abstract

Whistleblowing is extraordinarily controversial because its occurrence is often reflective of fundamental failures in organizational governance, making leadership look bad. I argue that this perspective is shortsighted; rather, whistleblowing is a critical self-regulatory mechanism that, when properly actualized, protects asset value. I build on new research exploring a whistleblower orientation and integrate it with existing research on internal whistleblowing programs and whistleblowing cultures. Against this background, I present a novel, three-tier integrated program focused on promoting, supporting, and protecting a specific group of value-driven, highly moral—herein termed offended—whistleblowers to enhance firm self-regulation against fraud, sexual harassment, toxic cultures, and other malfeasances that occur both within firms and by their own actions. Whereas previous research has focused on organizational responses to whistleblowing, central to this program is identifying, nurturing, and supporting an idiosyncratic whistleblower orientation within key employees for a firm’s own protection. The implication is that owners and managers can harness the power of whistleblowing, thereby protecting their firms, with less risk of individuals taking their grievances outside, where they could instead harm firms.

Suggested Citation

  • Clark, Daniel R., 2023. "Embracing whistleblowing for enhanced firm self-regulation," Business Horizons, Elsevier, vol. 66(6), pages 817-833.
    • Handle: RePEc:eee:bushor:v:66:y:2023:i:6:p:817-833
    DOI: 10.1016/j.bushor.2023.05.003
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