Confucian culture and whistle-blowing by professional accountants: an exploratory study

Purpose – The purpose of this paper is to use survey data to examine the impact of culture on current and future accounting and auditing professionals' intent to be whistle-blowers in a Chinese cultural society. Design/methodology/approach – The paper examines intent to whistle-blow and factors influencing whistle-blowing, using survey data collected by the authors. Findings – It was found that a majority of respondents believe that a general sense of morality was the most important factor to encourage whistle-blowing, with abiding by the policy of their organization as the second; it was also found that guanxi, fear of retaliation, and fear of media coverage may discourage whistle-blowing in a Chinese society. Research limitations/implications – The data are all from Confucian societies, which perhaps limits its usefulness elsewhere. Practical implications – The paper will help auditors, accountants, and policy makers to design policies that encourage whistle-blowing. Originality/value – The paper uses original survey data collected by the authors, and the analysis will enable policy makers and professional accountants to anticipate and predict whistle-blowing, a key factor in improving financial management and reporting, and possibly undermining auditor independence, audit quality, and the quality of financial reporting.