Abstract
The study aims to empirically examine the variables relationship and the effect of retaliation, legal protection, financial incentives, on whistle-blowing intention with organizational commitment as moderating variable. Questionnaires were distributed to collect data from the employees of banks classified in Book IV, namely PT Bank Rakyat Indonesia Tbk., PT Bank Mandiri Tbk., PT Bank Negara Indonesia Tbk., PT Bank Central Asia Tbk., PT Bank CIMB Niaga Tbk., and PT Bank Panin Tbk. They occupied various position levels and the number of respondents reached 190 persons. Subsequently. The questionnaires were then analyzed using SEM (Structural Equation Modeling) and processed using the software SmartPLS Version 3.2.9. Based on the analysis results, it shows that retaliation variable has a negative effect on whistle-blowing intention, while legal protection, financial incentives, and organizational commitment have a positive effect on whistle-blowing intention. Organizational commitment can have a positive effect on legal protection and financial incentives on whistle-blowing intentions, while organizational commitment is unable to show a negative effect on whistle-blowing intention.
Highlights
With the increasingly occurring fraud cases, the community has a very salient role in anticipating or taking action if they recognize or encounter an act of fraud
Effect of organizational commitment in moderating retaliation on whistle-blowing intention Organizational commitment is unable to weaken the negative effect of retaliation on whistle-blowing intention; the hypothesis is rejected
These study results prove that high organizational commitment within individuals coupled with the presence of legal protection can further motivate whistle-blowers to report existing fraud
Summary
With the increasingly occurring fraud cases, the community has a very salient role in anticipating or taking action if they recognize or encounter an act of fraud. Of cases of fraud were detected or revealed by whistle-blowers who came from various elements of society This ACFE survey shows that employees (53%) are the most active subjects in whistle-blowing, followed by customers (21%), anonymous individuals (14%), vendors (8%), others (5%), competitors (3%) and shareholders/owners (2%). From the survey, it can be observed the fact that there are many cases of fraud with great losses, most of which are revealed by whistle-blowers’ reports. The research conducted by Kusnadi and Ariyanto (2018) found that retaliation has an adverse and significant effect on whistle-blowing intention According to their findings, when there is low consequence/risk to the individual who performs whistle-blowing, his intention to do so will be even higher. This study takes into account the organizational commitment as a moderating variable which refers to the research conducted by Helmayunita (2019) which found a positive and significant effect of organizational commitment on whistle-blowing intention
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