Journal of Economics, Business, and Accountancy Ventura Vol. 25, No. 2, August – November 2022, pages 244 – 254 244 Is Whistleblowing an Ethical Practice? Nanang Shonhadji Universitas Hayam Wuruk Perbanas, Surabaya, East Java, Indonesia ARTICLE INFO Article history: Received : 12 June 2022 Revised : 2 September 2022 Accepted : 25 November 2022 JEL Classification: K22, M14, M48 Key words: Dilemmas, ethics, fraud accounting, and whistleblowing intention DOI: 10.14414/jebav.v25i2.3222 ABSTRACT Whistleblowing is susceptible to risks and ethical dilemmas in practice. It is not easy for members of an organization to become whistleblowers. The purpose of this study is to prove whether whistleblowing intention is a form of ethical practice. The empirical quantitative method was used for this study. The research samples were employees and auditors at the East Java Inspectorate. The use of Partial Least Square analysis techniques followed the collection of data through the distribution of questionnaires. The study results inform that whistleblowing intention was an ethical practice that was perceived and experienced by the whistleblower. Ethical sensitivity does not affect whistleblowing intention. In contrast, moral ethics, professional ethics, and ethical confidentiality affect whistleblowing intention. Ethical sensitivity has no effect because respondents believe that it is highly dependent on the sensitivity of the whistleblower’s attitude toward making decisions. The results of this study have contributed to strengthening the creation of a good whistleblowing system with definite legal protection guarantees provided by organizations and the state. ABSTRAK Whistleblowing rentan dengan risiko dan dilema etis di dalam praktiknya. Tidak mudah bagi anggota organisasi untuk menjadi whistleblower. Tujuan penelitian ini adalah untuk membuktikan apakah whistleblowing intention merupakan bentuk praktik etis. Metode penelitian kuantitatif empiris digunakan dalam penelitian ini. Sampel penelitian adalah karyawan dan auditor pada inspektorat Jawa Timur. Penelitian ini menggunakan teknik analisis Partial Least Square dan memperoleh datanya melalui penyebaran kuesioner. Hasil penelitian menginformasikan bahwa tindakan whistleblowing intention merupakan praktik etis yang dirasakan dan dialami oleh whistleblower. Hasil penelitian juga menginformasikan bahwa sensitivitas etis tidak berpengaruh terhadap whistleblowing intention, namun moral etis, profesional etis dan confidentiality etis berpengaruh terhadap whistleblowing intention. Sensitivitas etis tidak berpengaruh karena responden meyakini bahwa sensitivitas sangat bergantung kepada kepekaan sikap whistleblower untuk mengambil keputusan. Hasil penelitian ini memiliki kontribusi bagi penguatan terciptanya whistleblowing system yang baik dan kepastian jaminan perlindungan hukum yang diberikan oleh organisasi dan negara. 1. INTRODUCTION Cases of financial statement fraud and other forms of financial crime, also known as white-collar crimes, are still a severe problem in Indonesia (Azhari & Nuraini, 2019; Haqq & Budiwitjakson, 2020; Khusnah, 2020; Triyanto, 2020). This white- collar crime is generally carried out using corruption and fraudulent accounting practices detrimental to the company and the state. In Indonesia, white- collar crime does occur not only in private-sector companies but also in public-sector services. According to the results of a survey by ACFE in 2020 explaining that the average loss of fraud cases most often occurs in private companies, with losses of $220,000 or 37 percent. Followed by public companies with losses of $190,000 or 36 percent, the third largest loss is in government with a loss of $ 170,000 or 18 percent then the last is on non-profit companies with a percentage rate of 4 percent (Association of Certified Fraud Examiners, 2020). ACFE shows that non-profit companies tend to have more anti-fraud controls, so they have fewer losses than other companies. These institutions tend to have three weaknesses: the lack of implementation of internal control, lack of management review, and lack of a whistleblower system role (Miller, 2017). * Corresponding author, email address: nanang@perbanas.ac.id