Introduction
Whistleblowing� is� an�
effective� way� to�
detect� fraud� in�
the� organization.� The Association of Certified Fraud Examiners
states that whistleblowing behavior can uncover fraud cases is more than
forty� percent� within�
an� organization (Hashim, Salleh,
Shuhaimi, & Ismail, 2020).� Along with the development of technology and
information, the risk of fraud in government agencies is also increasing. There
are so many government institutions and large companies have committed fraud
and revealed the fraud with help by whistleblower. Whistleblower will report
illegal acts and actions that are not in accordance with the rules and moral
norms applies to both internal and external parties of the organization (Zanaria, 2016). (Perks & Smith, 2008)
state that whistleblowing occurs when an employee found an
error in the organization, and then report it to the public or authorities. For
organization who conduct
their
business activities ethically, whistleblowing is a part of the control system,
but
for organizations that do not carry out their business activities unethically,
whistleblowing is a threaten. (kompasiana,n.d..com).
Whistleblowing is a system of information
disclosure about an action that considered to contain a violation of the law
such as unethical behavior and fraud that happen in the organization (Baggs, Rees, Smith, & Vinten, 2000). According
to the National Committee on Indonesian Governance Policy in the book of
Whistleblowing Reporting (Wang & Sampliner,
2008), it states
that a person who reports a violation or act of fraud is called a
whistleblower. As for the reason an employee becomes a whistleblower is when
they feels that there is a fraud that harm to the organization (Jalilvand, Nasrolahi
Vosta, & Yasini, 2017).Whistleblowing�
is �an� effective�
way� to� detect�
fraud� in� the�
organization.� The Association of
Certified Fraud Examiners states that whistleblowing behavior can uncover fraud
cases is more than forty� percent� within�
an� organization (Hashim,
Salleh, Shuhaimi, & Ismail, 2020). Whistleblowing is a system
of information disclosure about an action that considered to contain a violation
of the law such as unethical behavior and fraud that happen in the organization (Baggs, Rees, Smith, & Vinten, 2000). According to the National
Committee on Indonesian Governance Policy in the book of Whistleblowing
Reporting , it states that a person
who reports a violation or act of fraud is called a whistleblower. As for the
reason an employee becomes a whistleblower is when they feels that there is a
fraud that harm to the organization .
There are many examples of individuals who dare to be a whistleblowers, including Arifin Wardiyanto,
Endin Wahyudin, Maria Leonita, Frans Amanue, Sarah Lerry Mboeik, Muchtar
Lufthi, and Heli Werror.
However, most of them are criminalized on the basis of defamation (Tuannakotta, 2017).
Judging from the number of whistleblowers who receive retaliation for
fraudulent disclosures, this causes the low level of reporting violations in
Indonesia. An effective and responsible whistleblowing system can overcome a
person's reluctance to report fraud.
Several indications of fraud cases were also revealed by
whistleblower, consist of the case of BLBI (Bank Indonesia Lliquidity Aassistance), the e-KTP project, The Hambalang Case of the P3SON project (construction of
Education, Training and Facilities Centers National Sports). The prevalence of
fraud in public sector entities encourages the implementation of fraud
reporting system which is often referred to as the whistleblowing system (Valentine &
Godkin, 2019).
(Bagustianto & Nurkholis,
2015) stated that the empowerment
of whistleblowers to media is an effective way to uncover corruption. Based on
survey result, the (Floyd, Xu, Atkins,
& Caldwell, 2013) stated
that more than a third (34%) of employees chose to remain silent
about violations and refused to report for fear of reprisals from their
superiors (Floyd, Xu, Atkins,
& Caldwell, 2013).
Employee who reporting fraud is subject to one or more risks of retaliation,
such as denial, isolation, defamation or expulsion (Kaptein, 2011).
According to �(Tadu & Mukonya,
2016)(Tadu & Mukonya, (2016),
being a whistleblower is not easy, therefore some people will not dare to
inform fraud or deception occurring within their organization to the company
management. According to �(Jalilvand et
al., 2017)(Jalilvand & Heidari, (2017),
a whistleblower has the potential to be threatened with job layoff or
experiencing various other forms of retaliation. Since there is still the potential
risk of retaliation, then it can affect one�s intention to take the decision to
do the whistleblowing. Consequently, it takes courage and determination for
someone to do whistleblowing.
Disclosure
case through whistleblowing has also happened to the figure controversial Susno Duadji, the ex of KABARESKIM
RI, who become a whistleblower of the fraud case carried out by Gayus Tambunan and several
police. Susno Duadji
dismissed from office and became a suspect for revealing that several officials
police that weare involved in the case (Bakhtiar, Tahir, &
Hasni, 2013).
Based on this example, it is undeniable that being whistleblower is a hard, a
whistleblower should have a courageous attitude and accept the negative impacts
that will be detrimental himself. Due to the risks that have a negative impact,
many of the candidates whistleblower candidates �discouraged from doing
whistleblowing.
The most important thing in implementation of
whistleblowing system is whether the employee who know the occurrence of fraud,
want to report the incident and become whistleblower or not. (Rothschild & Miethe, (1999), stated that most of the whistleblower rated
disloyal to the organization and they may be rejected by employees others in
the organization. This condition becomes an ethical dilemma for whistleblower
when it comes from within the organization, so it is important for
whistleblower to get support and protection from the organization. (Alleyne,
Weekes-Marshall, & Arthur, 2013) explained the importance of
perceived support organizations for individuals to report unethical behavior.
Become a whistleblower is not an easy thing to do. There
is some threats that will be received latter by a whistleblower such as,� lost work, are
shunned by other workers, and face life-threatening threats. Data from In
(Barometer, 2017)
stated showed that 36% of people are afraid
to report fraudulent actions because of the consequences that will later
be obtained. According to research,
said that 90% of people whistleblower
lost their jobs as a result of the confessions they make and 20% experience the
breakdown of a relationship (Lennane, 2012).
Whistleblowing is a controversial organizational issue.
Employee from internal organizations will generally face an ethical dilemma in
deciding whether to �blow the whistle� or keep it hidden. It takes courage and
faith to do so that some whistleblower receive heroic praise (Johnson, 2003).
Where some people look whistleblower as a traitor who breaks the norm
organizational loyalty, and others see that whistleblower as a heroic that are
considered more important than loyalty to the organization (Rothschild &
Miethe, 1999)..
On the other hand, whistleblower can help
organizations to fix unsafe things or provide the important of information in maintaining
organizational performance that complex, but not everyone is brave to do whistleblowing.
Even senior investigators at the KPK mentioned that basically a lot of employee want to become a whistleblowers but there is some things that causing them to feel reluctant in carrying out the
whistleblowing action (detiknews.com).
On the other hand, whistleblower can help
organizations to fix unsafe things or provide an important of information in
maintaining organizational performance that complex (Near &
Miceli, 1985). Whistleblower can act in the enforcement of
justice when exposing organizational wrongdoing (Near &
Miceli, 1985). The contradicting view often make the
candidates of whistleblower are doubt about determining the right attitude can
eventually distort the intention to do whistleblowing. Complaint from
whistleblower proven to be more effective in uncovering actions fraud compared
to other methods such as internal audit, internal control and external audit (Epstein et al., 2008).
The importance existence of whistleblowing in disclosing financial fraud or
scandals has been evident in the early decades of the twenty-first century (Dyck, Morse, &
Zingales, 2010).
The effectiveness of whistleblowing in disclosing fraudulent financial
statements not only recognized by accountants and regulators in the United States,
but also in other countries (Patel, 2003).
In addition to individual factors, external factors that
influence the behavior of auditors in doing whistleblowing is an organizational
commitment. One measure of level Auditor professionalism is also seen from its
performance, while one of the individual factors that influencing performance
improvement is organizational commitment. Organizational commitment can created
when members of the organization are aware of their rights and obligations as
members without look at the position or position of the individual. (Bariyima, 2012)
stated that success and a person's performance in a field
of work is largely determined by how much
itsthe level of organizational
commitment. High organizational commitment will increase high
performance (Randall &
Gibson, 1991).
Organizational commitment is the moderating variable in
this study, which organizational commitment is a component of subjective norms
in theory of plan behavior. In this case,
the individual will think of a certain behavior very precisely because actions
and behaviors that will be carried out will ultimately affect people's judgments other. In
the context of accountants, these other people are companies, communities, and organizations.
Anticipatory socialization is the result of all learning carried out by an
individual before his first day on the job (Garavan &
Morley, 1997). The
employee will tend to assess which actions should not and should not be taken
carried out by his profession if he has received socialization with his
profession since his childhood lectures and continue to receive socialization
while working in an organization. With anticipatory socialization the employee
will have the intention to prevent fraud in the organization by to be a
whistleblower. In a study conducted by (Lidiarti, 2019),
(Prayanthi &
Laurens, 2020),
(Vanneste et al., 2020),
(Pangesti & Rahayu, 2017),
(Faradiza & Suyanto, 2017) and (Elias, 2008), it was found that �state that anticipatory
socialization has a positive effect to on whistleblowing intention. However,
this is in contrast to research that conducted by (Rogers et al., 2016),
and (Kretinin et al., 2014),
which stated that anticipatory socialization has no effect on whistleblowing
intention.
Method
The population in this
study is all Government Internal Supervisory Apparatus (APIP) at the Inspectorate
of Banten Province, which consisted of 87 employees. This study use one endogenous
variable, namely whistleblowing intention, one moderating variable namely
organizational commitment, and two exogenous variable namely anticipatory
socialization and professional commitment. The data collection method was
carried out by distributing questionnaires to all auditor in Inspectorate
Banten Province. The number questionnaires obtained was 11900
copies distributes and only 87 copies of questionnaires could be processed.
Data analysis technique used SEM-PLS using SmartPLS 3
analysis tools.
Based on the results of testing
the research hypothesis in the table above, it is was obtained
found that t-count on all research
hypotheses > 1.96 and p-value on all research hypotheses < 0.05. This
shows that Ho is rejected and the research hypothesis
is proven or can be accepted.
1. Anticipatory Socialization
Towards Whistleblowing Intention
The Coefficient Value of Anticipatory socialization to
Whistleblowing Intention isof 0.213, and the p-value isof 0.006 < 0.05, then H0 is
rejected. These results indicate that Commitment Professionalsanticipatory socialization are
positively related to Whistleblowing Intention with effect Moderation of
Organizational Commitment and statistically significant at the
level of 5% significance.
Anticipatory
socialization is a longitudinal process that develops from year to year in
learning when at university to reach the senior level in the organization (Elias, 2008). (Elias, 2008) found that employees who are more committed to the
profession and are socialized with their profession from an early age are more
likely to tend to do whistleblowing. The
anticipatory socialization process begins when students accounting learn to
give priority to the needs of users of financial statements (Clikeman &
Henning, 2000).
So, anticipatory socialization is the result of all
learning carried out by a person individual before his or her first day on the
job (Garavan &
Morley, 1997).
Anticipatory
socialization is the most important part in shaping the individual's perception
of his profession, where aAnticipatory socialization is obtained
before the individual's first day working in an agency. Basically, without
realizing it, anticipatory socialization will support individuals to comply
with the code of ethics in their profession, so that they can influence
employees to report fraud through the system whistleblowing if they know that,
because of the code standard ethics they adhere to. So,
if there are things that deviate or are not in accordance with the code ethics,
they will immediately report it to the highest party to avoid an incident which
is not wanted.
Anticipatory
socialization refers to the socialization process in which a person practices
to determine its position in social, work, and future relationships. This
research is in line with research
conducted by (Elias, 2008)
which states that someone tends to do whistleblowing if they have a high level
of anticipatory socialization compared to someone with a low level of anticipatory
socialization.
From the results of the description above, it can
be concluded thatThe conclusion is anticipatory
socialization hasave
a positive relationship with whistleblowing
intention. The results of this study are in line with research conducted by (Lidiarti, 2019), (Vanneste et al., 2020),
(Pangesti & Rahayu, 2017),
(Faradiza & Suyanto, 2017) and (Elias, 2008).
1.
Organizational Commitment as Moderating Relationship
Between Anticipatory Socialization tTo Whistleblowing Intention
1.
The Coefficient vValue of pProfessional
cCommitmentanticipatory socialization to wWhistleblowing iIntention
with oOrganizational cCommitment
moderation wasof 0.078, and the p-value of 0.359
< 0.05, then H0 wasis accepted. These results indicated that anticipatory socialization are
positively related to Whistleblowing Intention with effect Moderation of Organizational
Commitment but not significant at statistic in the level of 5%.
2.
The
Coefficient value of anticipatory socialization to whistleblowing intention
with organizational commitment as the� moderating variable is 0.078, and the
�
p-value
is 0.359 > 0.05, then H0 was accepted. These results indicated that
anticipatory socialization are positively related to Whistleblowing Intention
with effect Moderation of Organizational Commitment but not significant at
statistic in the level�
of 5%.
Organizational
commitment is a big hope to stay and survive in the organization. The greater
the expectations of individuals in the organization, the higher their desire to
maintain their position in the organization, this things
make the employees more apathetic to what happens in the organization when they
find a fraud in the organization, to maintain their position in the
organization. That�s why, the employees will feel a dilemma whether
whistleblowing is something that should do or not, how they feel, and their
desire to remain in the organization where they work, support them to choose
silence rather than losing their profession in the organization Anticipatory
socialization will encourage someone to comply with the existing code of ethics
so the corruption cases are not repeated in government circles. High
anticipatory socialization possession of a person will lead him to reveal
cheating. OOn the other hand, individuals who
have a high organizational commitment will also perform prosocial behavior and
report any fraud. Thus, organizational commitment is expected to moderating
(strengthening) the relationship of anticipatory socialization with
whistleblowing intention .
From the results of the description above,
it can be concluded that The conclusion is organizational commitment can�t moderate the anticipatory socialization
relationships against whistleblowing intention. The results of this study are
in line with research conducted by The conclusion is
organizational commitment can moderating (strengthening) anticipatory
socialization relationships against whistleblowing
intention. The results of this study are in line with research conducted by (Lidiarti, 2019) and .
H6: Organizational Commitment Is Able to Moderate
Anticipatory Socialization Relationships Against Whistleblowing Intention
Conclusion
Based on the data that have
been carried out on the problem by using multiple regression analysis method,
it can be concluded that anticipatory socialization has a significant positive
relationship to whistleblowing intention, but organizational commitment can�t
moderate the anticipatory socialization and whistleblowing intention. This
study aims to determine the effect of Organizational Commitment as Moderating
Relationship Between anticipatory socialization toward Whistleblowing Intention
(Empirical Study on the Government Inspectorate's Internal Supervisory
Apparatus Banten Province) Respondents in this study amounted to 87 APIP
employees who work at the Inspectorate of Banten Province. Based on the data
that has been collected and tests that have been carried out on the problem by
using multiple regression analysis method, it can be concluded as follows:that anticipatory socialization has a significant
positive relationship to whistleblowing intention on the Government Internal
Supervisory Apparatus (APIP) Banten Province Inspectorate. In addition, anticipatory socialization has a
significant positive relationship to whistleblowing intention with
organizational commitment as moderating variable on the Government Internal
Supervisory Apparatus (APIP) Inspectorate Banten Province. The results of this
study, which states that anticipatory socialization has the insignificant relationship
with whistleblowing intention with organizational commitment as moderating
variable.
Based on
the results of the research, suggestions for the State Civil Apparatus must be
instilled in good norms and culture in order able to create a high commitment
in carrying out their duties and responsibilities as employees, so that
whistleblowing actions can have a positive value in the organization.
The last,
in carrying out the task of conducting an audit of financial statements, an
auditor is expected to be able to carry out all audit findings even though
these results may have a negative impact on the sustainability of the
organization or functional positions in the institution.
Anticipatory
socialization has a significant positive relationship to whistleblowing
intention on the Government Internal Supervisory Apparatus (APIP) Banten
Province Inspectorate. The results of this study are in line with research
conducted, which states that anticipatory socialization has the insignificant
relationship with whistleblowing intention.
Anticipatory socialization has a significant
positive relationship to whistleblowing intention with organizational commitment
as moderating variable on the Government Internal Supervisory Apparatus (APIP)
Inspectorate Banten Province. The results of this study, which states that
anticipatory socialization has the insignificant relationship with whistleblowing
intention with organizational commitment as moderating variable.
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