Whistleblowing

By skipping managers and appealing directly to politicians, whistleblowers can play a critical role in revealing organizational information. However, the protection of whistleblowers can affect managers' abilities to provide employees with incentives to exert effort. This paper explores this tr...

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Veröffentlicht in:The American political science review 2008-05, Vol.102 (2), p.249-267
1. Verfasser: TING, MICHAEL M.
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description By skipping managers and appealing directly to politicians, whistleblowers can play a critical role in revealing organizational information. However, the protection of whistleblowers can affect managers' abilities to provide employees with incentives to exert effort. This paper explores this tradeoff with a model of agency decision-making under incomplete information. In the game, an employee's effort determines a project's quality, and a manager chooses whether to approve the project and discipline the employee. The employee and politician wish for only “good” projects to be approved. By whistleblowing, an employee reveals the quality to a politician outside of the organization, who may override the manager's decision. A key finding is that from the politician's perspective, the benefits of whistleblower protections depend on the preferences of the manager. If the manager is inclined toward approving projects, then the costs of lower employee effort may outweigh the informational benefits of whistleblowing. The optimal policy may then be to ban whistleblowing. By contrast, when the manager is inclined toward rejecting projects, whistleblower protections prevent him or her from suppressing effort and are unambiguously beneficial.
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identifier ISSN: 0003-0554
ispartof The American political science review, 2008-05, Vol.102 (2), p.249-267
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source Worldwide Political Science Abstracts; Cambridge Journals; JSTOR Archive Collection A-Z Listing
subjects Administrative agencies
Aggression
Business management
Civil service
Congressional investigations
Conservatism
Employee motivation
Employees
Ethics
Expected utility
FDA approval
Government (Administrative Body)
Government bureaucracy
Incentives
Intuition
Laws
Legal norms
Logical Thinking
Mass behaviour
Organization theory
Organizational culture
Organizational structure
Political morality
Political science
Politicians
Politics
Principals
Public sector
Social norms
Social psychology
Social values
State laws
Whistleblowing
Whistles
title Whistleblowing
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