Employ Respons Rights J (2007) 19:85–94 DOI 10.1007/s10672-007-9036-0
Comparing Chinese and American Managers on Whistleblowing John P. Keenan
Published online: 20 April 2007 # Springer Science + Business Media, LLC 2007
Abstract Whistleblowing involves present or former organization members reporting illegal, unethical or illegitimate activities under the control of organization leaders to parties who are willing and able to take action to correct the wrongdoing. A major shortcoming of prior whistleblowing research concerns the fact that there has been a tendency to examine whistleblowing from a culturally-bound perspective without looking at cultural and international differences. The present paper attempts to extend whistleblowing research into the international arena. This study will consider the differences in culture and societal structures between a United States sample of managers and a Chinese sample of managers with respect to differences in individual, organizational, and moral perception whistleblowing tendencies. Key words whistleblowing . ethics . moral perceptions . culture . management practices The Enron scandal, the Walter Reed Army Hospital scandal concerning poor treatment of US veterans returning from the Iraq War, insider trading on Wall Street, the BCCI scandal and similar incidents continue to draw attention to illegal or unethical practices within American-based organizations and former or present employees who choose to blow the whistle on such activities. Similar incidents are increasingly being documented within other countries such as Japan, Brazil, Germany, and Great Britain to name only a few. In a global marketplace, managers often face major difficulties when it comes to handling ethical problems within a different cultural context. Unfortunately, little research has been conducted on cross-cultural or multi-cultural ethics although efforts are being made in developing a conceptual approach to cross-cultural ethics (Chen 2001; Keenan 2002a; Sims and Keenan 1999; Tavakoli et al. 2003; Tsui and Windsor 2001; and Wines and Napier 1992).
J. P. Keenan (*) President and Professor of Leadership Studies, The Institute for Leadership and Global Education (ILGE), 2 Hillsboro Drive, Orchard Park, NY 14127, USA e-mail:
[email protected]
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Multi-national organizations are taking greater interest in whistleblowing. Some have established special departments for the receipt of whistleblowing reports (Ewing 1983). Others have established ethics codes which encourage employees to contact the organization’s legal counsel should they observe or become aware of possible illegal or unethical activities (Mathews 1987). A study of international codes of conduct for multi-national corporations (MNEs) indicates substantial agreement on the moral duties of MNEs (Getz 1990).
Purpose of Paper While a number of organizational and individual factors have been considered within the study of whistleblowing, a major shortcoming of prior whistleblowing research concerns the fact that there has been a tendency to examine whistleblowing from a culturally-bound perspective without looking at cultural and international differences (Keenan 2002b; Sims and Keenan 1999). One explanation has to due with the fact that the concept of culture has been a difficult one with respect to agreements on definition, influences on behavior, measurement, and managerial practices (Adler 1983; Berry 2004; Hofstede 1997; Kedia and Bhagar 1988; Kroeber and Kluckhohn 1952). Despite such difficulties, the present paper attempts to extend whistleblowing research into the international arena. With a literature search indicating there has been no empirical research of whistleblowing in China (Vinten 1999), it is an opportune time to conduct such a study. The study will consider the differences in culture and societal structure between a United States sample of managers and a Chinese sample of managers using Hofstede’s (1997) theory of international cultures. Cultural and societal differences will be examined in an attempt to better understand differences in whistleblowing tendencies between these two groups. Whistleblowing can be examined as a complex phenomenon, resulting from the interplay of individual, organizational, and situational variables (Miceli, Dozier, and Near, 1987). The following discussion examines the major variables shown to have significant effects in prior studies of American managers on whistleblowing (Keenan 2002b, 2000, 1990; Sims and Keenan 1998). Variables examined include: moral perceptions of wrongdoing, the likelihood of blowing the whistle on various types of wrongdoing, individual propensity for whistleblowing, perceptions of organizational propensity for encouraging whistleblowing, and fear of retaliation. The discussion will also include references to the potential societal and cultural differences between Chinese and American managers to assist in the explanation of results presented.
Moral Perceptions of Wrongdoing A study of American managers have found inter-level differences between managers’ moral perceptions of minor fraud (but not major fraud or harm to others wrongdoing) as influential of the studied managers’ knowledge about their organization’s procedures for reporting wrongdoing as well as their likelihood of blowing the whistle (Keenan 1990). Prior research on American managers perceptions of major fraud indicates a very strong belief about the seriousness of such wrongdoings (Keenan 1992). Though no prior research exists with respect to Chinese managers on this subject, no evidence exists to suggest that they would have stronger moral perceptions about serious, major forms of fraud when compared to American managers. On the other hand, prior research on American managers perceptions of minor fraud indicates they see these kinds of wrongdoing as only moderately
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wrongful (Keenan 1993). It is not unreasonable to expect that cultural influences might play a more influential role concerning perceptions of such minor forms of fraud. The Chinese culture, though diverse within itself, tends to have a “collectivistic” versus “individualistic” value orientation though these are times of transition (Chiu et al. 2001; Early 1992; Gao 2002; Hofstede 1997; Hofstede and Bond 1988; Park et al. 2005; Steidlmeier 1998). Collectivistic cultures and groups place a strong emphasis on shared beliefs, views, needs, norms, duties, and a preference to maintain stable and long-term membership (Early 1992). In individualistic societies such as the United States, there is an inclination to believe that individuals act independent of groups (Triandis 1989). Perceptions of an obligation to the welfare of the collective whole rather than to the individual might tend to influence Chinese managers to be more critical of minor, less serious forms of fraud, than their American counterparts. They might tend to see such forms of fraud as potentially causing more damage and harm to the welfare of their organizations than American managers. It would be reasonable to expect American managers to have stronger perceptions with respect to harm to others as a consequence of the high value that American society puts on equality, individuality, and respect for human rights. An example of a “harm to others” item was “discriminating against another because of sex, race, and age.” According to Confucianism, an individual is fundamentally a social or relational being. Social order and stability depend on a properly differentiated role relationship between particular individuals (King 1999). Traditional Chinese values include high power distance and role differentiation for men and women. The strong emphasis on role differentiation and obligation may lead Chinese managers to not identify strongly with age and gender discrimination.
Likelihood of Blowing the Whistle Keenan (1992, 1993) has examined a variety of individual and organizational influences on the likelihood of American managers blowing the whistle on both major and minor forms of fraud. Chinese managers may be expected to be less likely to blow the whistle than there American counterparts, since China is a country in transition without well established rule of law. The protection given to whistleblowers are not as strong as in the US. There lacks a strong institutional trust. Secondly, as mentioned earlier, Chinese society is a relationshiporiented society. Related to the first point, inappropriate or illegal acts of bribery, kickbacks, nepotism exist more widely in the Chinese society. Whistleblowing behavior may be looked down upon as an act of betrayal to someone or to a group.
Personal Propensity The degree to which an individual approves of whistleblowing, thinks employees should be encouraged to blow the whistle, and feels personally obliged to blow the whistle if he or she were to observe fraudulent or wrongful behavior can be expected to be associated with the likelihood that they would actually blow the whistle on fraudulent or wrongful activities. Research by Miceli and Near (1985) suggests that an individual’s perceptions and attitudes about whistleblowing are related to the decision to blow the whistle. Individual propensity for whistleblowing as examined through these factors has been associated with the likelihood of blowing the whistle on minor fraud and wrongdoing for a sample of American managers (Keenan 1993). As discussed above, Chinese culture has been characterized as being collectivistic rather than individualistic in nature. From this context, there is a tendency to
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respect the needs of the collective rather than those of the individual. Since a personal propensity for whistleblowing represents a tendency to step out from the collective as an individual, it might be reasonable to expect that Chinese managers would have less positive perceptions about whistleblowing.
Organizational Propensity An individual’s perceptions of an organization’s degree of encouragement of whistleblowing and the degree that the organization provides information on where to blow the whistle is an important matter of concern for the potential whistleblower, especially if the wrongdoing involves one’s immediate supervisor or someone at higher levels within the organization (Near and Miceli 1987). Mathews (1987) emphasizes the important role of clear organizational policies in these areas while Victor and Cullen (1987) discuss the effects of organizational climate on ethical decision-making. Prior research on American managers in this area suggests a positive association between organizational encouragement, enough information, knowledge where to blow the whistle, and feelings of being obliged to blow the whistle on wrongdoing (Keenan 1991, 1992). The collectivistic nature of Chinese society might be expected to dispose Chinese managers to perceive a higher organizational propensity to engage in whistleblowing. Under the heavy influence of Confucianism, Chinese often view themselves as interdependent with the surrounding social context, and it is the “self in relation to other” that becomes the focal individual experience. This view of an interdependent self is in sharp contrast to the Western view of an independent self. The latter sees each human being as an independent, self-contained, autonomous entity who, (a) comprises a unique configuration of internal attributes (e.g., traits, abilities, motives, and values) and (b) behaves primarily as a consequence of these internal attributes (Markus and Kitayama 1991). Chinese people consider their existence not as isolated individual, but a connected network. Therefore, what motivates them to act is not individual, but a collective whole.
Retaliation/Reprisal The perception about not fearing retaliation or reprisals and the degree of protection which a company offers employees who report fraudulent or dishonest activities is an important matter of concern for potential whistleblowers (Near and Miceli 1986). Reprisal involves taking an undesirable action against an employee or not taking a desirable action because that employee disclosed information about a serious problem. Prior research indicates a relationship between fear of retaliation and whistleblowing (Keenan 1991, 1990; Near and Miceli 1990). No research currently exists with respect to Chinese managers on fear of retaliation for whistleblowing. There is thus no support for concluding that Chinese managers will perceive more fear of retaliation for whistleblowing than American managers.
Materials and Methods Subjects The population of this study were mid-level managers in large companies in the US and People’s Republic of China. The US sample consists of 70 managers while the Chinese sample
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Table 1 Demographic characteristics of the samples. Demographic variables Gender Men Women Education High school Some college College graduate Master degree Age Mean s.d. Organizational tenure Mean s.d.
U.S. managers
Chinese managers
60% 40%
62.7% 37.3%
21.4% 27.1% 34.3% 17.1%
18.6% 16% 58.7% 6.6%
39.75 years 12.17
41.15 years 8.94
9.13 years 8.57
9.56 years 8
The sample size was 70 for U.S. managers and 75 for Chinese managers.
consists of 75 managers. T-tests were conducted on the sample to compare respondents’ age, gender, organizational tenure, and job tenure. No significant demographic differences were found between these two samples. The two samples are comparable in industry, organizational levels, gender, age, and organizational tenure. Please see Table 1 for sample characteristics. Measures The questionnaire included items which measured managers’ opinions and perceptions about organizational practices in regards to whistleblowing. It was a revised version of the U.S. Merit Systems Protection Board survey questionnaire which was used in a major study of employee whistleblowing within federal agencies in 1980 (USMSPB 1981). Terminology was changed to reflect work environments of managers within the private sector. Using a Likert-type response format, one question concerned issues related to moral perceptions of various kinds of fraud and harmful behavior. Similar questions concerned issues related to the likelihood one would report various kinds of wrongdoing, organizational policies and practices, individual perceptions and attitudes toward whistleblowing, and degree of fear of retaliation or reprisal for blowing the whistle. The second part of the questionnaire requested information on a variety of demographic issues including sex, age, education, industry type, organizational size, managerial level, years of managerial experience, and whether one was assigned to a home office, branch, or regional office. There were a total of nine scales used in this study. These included scales to measure: moral perceptions of major fraud (three items), minor fraud (three items), and harm to others (three items); the degree of likelihood of blowing the whistle on major fraud (three items), minor fraud (four items), and harm to others (items items); organizational propensity for whistleblowing (three items); individual propensity for whistleblowing (six items); and degree of fear of retaliation for whistleblowing (four items). Each of the scales has been tested and successfully used in previous studies of whistleblowing (Keenan 2002a, b, 2000, 1993, 1992). The correlation between scales for both the American and Chinese samples for each of the nine scales is presented in Table 2.
major fraud minor fraud harm to others major fraud minor fraud harm to others personal propensity organizational propensity retaliation
major fraud minor fraud harm to others major fraud minor fraud harm to others personal propensity organizational propensity retaliation
1. 2. 3. 4. 5. 6. 7. 8. 9.
1. 2. 3. 4. 5. 6. 7. 8. 9.
4.15 3.16 2.88 4.12 3.31 3.21 4.04 3.81 2.74
4.13 2.85 4.40 4.69 3.76 4.53 4.43 3.51 2.59
Mean
0.70 0.73 1.31 0.77 0.99 1.05 0.74 0.56 0.35
0.78 0.95 0.85 0.40 0.73 0.58 0.45 0.91 0.88
s.d.
0.40** 0.35** 0.45** 0.46** 0.29* 0.53** 0.36** −0.38**
0.32** 0.43** −0.10 −0.11 −0.14 0.04 −0.06 0.05
1
Likelihood to blow whistle: Scale of 1 to 5. Higher the score the more likely to blow the whistle.
Retaliation factor: Scale of 1 to 5. Higher the score the more fear of retaliation.
Organizational propensity: Scale of 1 to 5. Higher the score the more propensity.
Personal propensity: Scale of 1 to 5. Higher the score the more propensity.
Moral perception: Scale of 1 to 5. Higher the score the more fraudulent.
* p
