Concern for the transgressor’s consequences: an explanation for why wrongdoing remains unreported

Published in: Journal of Business Ethics - October 2021

Written by

Saera Khan and Lauren Howe

Summary

What we found: In close-knit company cultures where co-workers have strong social bonds, employees are less likely to report wrongdoing. This is because close cultures encourage the perception that the perpetrator of a crime felt remorse for their actions, which causes employees to worry about the consequences a perpetrator would face if their crime were reported and prompts their silence.

Why it matters: Wrongdoing is common at work; recent surveys suggest 47% of employees have witnessed so­mething unethical, but around one-third failed to do anything about it. This research illustrates a new barrier to reporting and suggests companies with close-knit cultures may need to take extra steps to encourage whistleblowing.

What next: Companies with such cultures should assess whether there is a ‘silence problem’ in their organization and take steps to encourage whistleblowing even when relationships are close, such as reframing whistle-blowing as getting a perpetrator the help they need to reform rather than as punishment for wrongdoing.

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