Baç, Mehmet (2009) An economic rationale for firing whistleblowers. European journal of law and economics, 27 (3). pp. 233-256. ISSN 0929-1261 (Print) 1572-9990 (Online)
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Official URL: http://dx.doi.org/10.1007/s10657-008-9091-5
Abstract
Organization members disclosing their superiors' violations of duty are characterized by high ethical standards and, surprisingly often, fired for blowing the whistle. This paper provides an economic rationale for firing whistleblowers in a model where only the "ethical" type of agent can internally report the manager's violation of duty. Revelation of an ethical type in the organization increases the perceived future probability of detecting and punishing the manager. Replacing the ethical type by an agent of unknown type restores this probability to its initial level, and this is optimal in organizations in which the standard of proof in establishing the manager's violation of duty is low.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Incentives; Whistleblowing; Information; Organization |
| Subjects: | H Social Sciences > HB Economic Theory K Law > K Law in general. Comparative and uniform law. Jurisprudence |
| Divisions: | Faculty of Arts and Social Sciences |
| Depositing User: | Mehmet Baç |
| Date Deposited: | 14 Jul 2009 11:28 |
| Last Modified: | 26 Apr 2022 08:28 |
| URI: | https://research.sabanciuniv.edu/id/eprint/11601 |
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An economic rationale for firing whistleblowers. (deposited 14 May 2009 16:38)
- An economic rationale for firing whistleblowers. (deposited 14 Jul 2009 11:28) [Currently Displayed]
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