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Employee Sensitivity to the Risk of Whistleblowing via Social Media: The Role of Social Media Strategy and Policy

Author

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  • Fangjun Xiao

    (San Jose State University)

  • Bernard Wong-On-Wing

    (Washington State University)

Abstract

Employee whistleblowing via social media channels represents a very high risk to corporate reputation and can potentially lead to litigation and financial loss, especially when the message goes viral. This research examines the effect of social media strategy and social media policy on employees’ sensitivity to the high risk of whistleblowing via social media. We study the effect across employee gender and across two social media misconducts (information leaking and online venting). Our results indicate that the impact of social media strategy and social media policy on employees’ sensitivity differs between gender and across the two cases. In the information leaking case, social media strategy, social media policy and gender jointly influence employee sensitivity to the risk of whistleblowing via social media channels. In the online venting case, gender has a main effect on that sensitivity. Our study has implications for the role of social media in management control systems and adds to the literature on whistleblowing. Our findings also have practical implications related to the use of social media strategy and policies.

Suggested Citation

  • Fangjun Xiao & Bernard Wong-On-Wing, 2022. "Employee Sensitivity to the Risk of Whistleblowing via Social Media: The Role of Social Media Strategy and Policy," Journal of Business Ethics, Springer, vol. 181(2), pages 519-542, November.
    • Handle: RePEc:kap:jbuset:v:181:y:2022:i:2:d:10.1007_s10551-021-04914-0
    DOI: 10.1007/s10551-021-04914-0
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    References listed on IDEAS

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