ABSTRACT. Response to wrongdoing is modeled
as a decision process in an organizational context. The
model is grounded in theory of risk, ambiguity, and
informational influences on decision making. Time
pressure, inadequate information and coworker influ-
ences are addressed. Along the way, a handful of
propositions are provided which emphasize influences
on the actual choice between response options.
Wrongdoing, illegal, unethical or simply
wasteful, is widespread in organizations and its
costs to organizations and society in general are
immense (Murphy, 1993). If not for individuals’
decisions to stop wrongdoing, society and
members of organizations would be more
vulnerable to fiduciary irresponsibility, waste
of resources, damage to our environmental
commons, and other forms of ethical, moral, and
criminal misconduct. Unfortunately, as evidenced
by many anecdotal reports, taking an active
response to wrongdoing can be an emotional
and risky decision (Keenan, 1991, 1995; Near
and Miceli, 1990). Acting against wrongdoing
may risk damage to relationships with co-
workers, go against cultural beliefs about “telling
on” others, and result in unexpected reactions
from others who benefit from or participate in
wrongdoing or who do not wish wrongdoing to
be exposed. The anticipated tragedy that befalls
the career of the whistleblower well explains
“Deep Throat”’s decades of chosen anonymity
(Perry, 1998).
Despite increasing concern about wrongdoing
in organizations, research is hindered by our
limited understanding of what is a stressful and
risk-laden decision and for which a comprehen-
sive set of distinct response options is not well-
defined. Several models addressing different
ethical dilemmas in organizations have been con-
structed (see discussions by Collins (1989); Ford
and Richardson (1994); Forsyth (1980); Miceli
and Near (1992). None of these has satisfied the
need for a parsimonious yet comprehensive
model of the decision process useful for guiding
both research and practice. Our review of
existing work suggests a need for a decision
process model which emphasizes ambiguity and
risk concerning organizational policies and
culture, the wrongdoing and wrongdoers, and
the consequences of responding.
Several characteristics of decision making,
the responder, and the phenomenon of wrong-
doing in an organizational context must be
incorporated in such a model if the model is
to accurately predict actual behavior. To guide
development of the model, several issues must
be addressed. This model should not address only
one response, such as whistleblowing, and should
not assume every person, despite similar situa-
tions, follows the same sequence of steps in the
decision process such as those models which
assume a whistleblower first tries to report
wrongdoing procedurally, then goes outside the
organization with his or her report. Individuals
who perceive complicity in the wrongdoing
among managers in the organization may imme-
diately go outside the organization. The model
should take the perspective of the responder. This
individual processes information and makes
behavioral choices. The needed model must
recognize the process varies with the ethical
philosophy of the responder and is not always
guided by, for example, the greatest good for the
greatest number of people as in an economically
rational view. Also influencing the response
Risk, Information, and the
Decision about Response to
David L. McLain
Wrongdoing in an Organization John P. Keenan
Journal of Business Ethics 19: 255–271, 1999.
© 1999 Kluwer Academic Publishers. Printed in the Netherlands.