Search Results (24)

This research presents a novel framework and experimental results that combine zero-knowledge proofs (ZKPs) with private blockchain technology to safeguard whistleblower privacy while ensuring secure digital evidence submission and verification. For example, whistleblowers involved in corporate fraud cases can submit sensitive financial records anonymously while maintaining the credibility of the evidence. The proposed framework introduces several key innovations, including a private blockchain implementation utilising proof-of-work (PoW) consensus to ensure immutable storage and thorough scrutiny of submitted evidence, with mining difficulty dynamically aligned to the sensitivity of the data. It also features an adaptive difficulty mechanism that automatically adjusts computational requirements based on the sensitivity of the evidence, providing tailored protection levels. In addition, a unique two-phase validation process is incorporated, which generates a digital signature from the evidence alongside random challenges, significantly improving security and authenticity. The integration of ZKPs enables iterative hash-based verification between parties (Prover and Verifier) while maintaining the complete privacy of the source data. This research investigates the whistleblower’s niche in traditional digital evidence management systems (DEMSs), prioritising privacy without compromising evidence integrity. Experimental results demonstrate the framework’s effectiveness in preserving anonymity while assuring the authenticity of the evidence, making it useful for judicial systems and organisations handling sensitive disclosures. This paper signifies notable progress in secure whistleblowing systems, offering a way to juggle transparency with informant confidentiality. Full article

One of the fundamental components of internal controls, a whistleblowing system (WBS) is crucial for preventing fraud, addressing irregularities, and enhancing good governance. The purpose of this study is to investigate the impact of whistleblower disclosures on earnings management in Saudi Arabia’s Takaful Insurance (TKI) sector between 2017 and 2023. To this end, a whistleblowing index was constructed as a tool to evaluate the whistleblowing framework’s effectiveness. Using the Dynamic Generalized Method of Moments (GMM) to account for endogeneity, it was found that most Saudi insurance companies increased their efforts to disclose information about whistleblowers, which significantly reduced earnings management practices. Specifically, the study concludes that the size of the audit committee (ACS) significantly and negatively affects how insurance businesses manage their earnings when a whistleblower system is in place. Additionally, there is a notable and adverse effect on earnings management from board size (BSZ), the percentage of non-executive independent members (PNIM), and Shariah board size (SBS). However, it was found that earnings management is unaffected by the frequency of board meetings (BMFR). This study adds to the body of knowledge by demonstrating how corporate governance enhances the effectiveness of the whistleblowing system. Full article

Purpose—This paper investigates the role of forensic accounting skills in enhancing auditor self-efficacy towards fraud detection in Indonesia. It also examines the moderating effect of the implementation of Generalized Audit Software (GAS) and the whistleblowing system on the relationship between accounting and auditing skills and auditor self-efficacy, as well as their combined role in enhancing fraud detection. Methodology—A cross-sectional survey was conducted with 537 external auditors in Indonesia. Data were analyzed using multiple linear regression with moderation models, employing WarpPLS 8.0 software. Findings—The results indicate that practical communication skills, psychosocial skills, and accounting and auditing skills significantly enhance auditor self-efficacy. However, technical and analytical skills do not show a significant effect on auditor self-efficacy. Furthermore, auditor self-efficacy is found to have a direct and significant impact on fraud detection. This study also reveals that implementing GAS moderates the relationship between auditor self-efficacy and fraud detection, whereas the whistleblowing system does not demonstrate a significant moderating effect. Novelty—This study contributes to the literature by highlighting the role of forensic accounting skills and the implementation of GAS in enhancing auditor self-efficacy and fraud detection in the Indonesian auditing context. Full article

Ring signatures are widely used in e-voting, anonymous whistle-blowing systems, and blockchain transactions. However, due to the anonymity of ring signatures, a signer can sign the same message multiple times, potentially leading to repeated voting or double spending in blockchain transactions. To address these issues in blockchain transactions, this work constructs an identity-based linkable ring signature scheme based on the hardness of the lattice-based Module Small Integer Solution (M-SIS) assumption, which is hard even for quantum attackers. The proposed scheme is proven to be anonymous, unforgeable, linkable, and nonslanderable in the random oracle model. Compared to existing identity-based linkable ring signature (IBLRS) schemes of linear size, our signature size is relatively smaller, and this advantage is more pronounced when the number of ring members is small. We provide approximate signature size data for ring members ranging from 2 to 2048. When the number of ring members is 16 (or 512. resp.), the signature size of our scheme is 11.40 KB (or 24.68 KB, respectively). Finally, a threshold extension is given as an additional scheme with specifications and security analysis. Full article

Rural Residential Land is a kind of public pond resource, and the implementation of the collective governance of Rural Residential Land is a response to the dilemma of utilizing the land. This paper takes the attribute of using Rural Residential Land as a public pond resource as an entry point, draws on Autonomous Governance Theory, and utilizes the OLS model and the mediated effect model to explore the influence of Government Embedment on supervisory effectiveness in the collective governance of Rural Residential Land, based on the fieldwork data of 450 farming households in three districts (cities and counties) in Sichuan Province. This study shows that Government Embedment, the Technological Environment and the Cultural Environment can significantly enhance supervisory effectiveness in the collective governance of Rural Residential Land, while the Resource Environment has a negative effect on it. The Resource Environment has a masking effect on the influence of Government Embedment on supervisory effectiveness in the collective governance of Rural Residential Land, while the Technological Environment and the Cultural Environment play a part in the mediating effect. The anonymous whistleblowing mechanism positively moderates the influence of the Technological and Cultural Environments on supervisory effectiveness. Additionally, there is obvious locational heterogeneity in the influence of Government Embedment and the Organizational Environment on supervisory effectiveness. Therefore, a coordinated supervision and sanctioning mechanism should be constructed in towns and villages to promote the integration and complementarity of formal and informal systems; a sound mechanism for anonymous reporting of illegal and irregular use of Rural Residential Land should be established; and the effective implementation of the collective governance of Rural Residential Land should be promoted in accordance with the differences in the location of the villages. Full article

This study examines the influence of fraud disclosure (FR_DISC) in annual reports on the financial stability of Takaful insurance (TKI) in Saudi Arabia over the period of 2014 to 2022. Moreover, the current study aims to explore the mediating impact of Shariah board size in shaping this relationship using agency theory and examines whether the different Islamic governance attributes could affect this stability differently. Using the dynamic generalized method of moments (GMM) approach to address the possibility of endogeneity, it was found that FR_DISC is significantly negatively related to the financial stability of a sample TKI. We also provide evidence that the larger the size of a Shariah board, the less FR_DISC affects TKI stability. Furthermore, significant negative influence of ownership concentration and the proportion of non-executives’ independent board members on the stability of insurance companies was also observed. Overall, our analysis reveals several significant challenges if accounting and whistleblowing are to contribute to financial stability. Full article

Directive 1937/2019 on the protection of persons who report breaches of Union law became effective very recently. However, Directive 1937/2019 lacks sufficient guidance on the implementation or governance of whistleblowing frameworks. In addition, the existing literature lacks a definition of whistleblowing and whistleblowing frameworks that is appropriate for internal audit and fraud prevention. The purpose of this paper is to address the lack of a definition of whistleblowing and whistleblowing framework appropriate for internal auditing and to guide the roles and responsibilities within an organization to apply and maintain a robust whistleblowing framework. To this effect, the Three Lines Model is used, one of the most recognized theoretical models in effective risk governance and internal audit. Full article

An organizational ethical climate enhances the degree of collaboration and cohesion among employees and facilitates the development and interests of organizations. Such roles lead to organizational sustainable development and survival. Therefore, the importance of ethical climate in organizations is becoming increasingly apparent. In this background, this study aims to explore whether an organizational ethical climate can improve whistleblowing behavior and the mediating role of organizational identification in promoting whistleblowing behavior. Most previous studies have only focused on the mediating or moderating role of the model. This study expands the research field, adds the dual moderation of person–organization value congruence and leader ethical behavior, and verifies two moderated mediation models. Overall, the purpose of this study is to determine the behavior of employees under the influence of an organizational ethical climate and, on this basis, propose suggestions for strengthening organizational ethical climate, expanding the scope of research on organizational climate and providing a theoretical basis for related research. In order to achieve the research goals, the data were collected from 344 Chinese SMEs for empirical analysis. The results showed that an organizational ethical climate has no direct impact on whistleblowing behavior but could have a positive effect on whistleblowing formation through the mediating variable of organizational identification. In addition, person–organization value congruence and leader ethical behavior significantly moderated the mediating role of organizational identification between organizational ethical climate and whistleblowing behavior. Finally, the directions that can contribute to future research were suggested. Full article

There is a consensus in the literature that whistleblowing can operate as an instrument for deterring wrongdoing and promoting transparency in organizations. As such, whistleblowing connects with sustainability, and in particular with the UN sustainable development goals (SDG 16, reducing corruption) for transparency and accountability in public sector entities. The purpose of this study is to explore the attitudes of public servants in Greek municipalities before and after the introduction of the “EU Directive on Whistleblowing”. In particular, we investigate how the political, legal, organizational, and cultural environment within which Greek municipalities operate shapes negative employee attitudes toward whistleblowing. Primary data was collected through in-depth interviews with municipal employees from 2020 to 2023 before and after the incorporation of the “EU Directive on Whistleblowing” into the Greek legal system. Our findings indicate that municipal employees are skeptical and have negative attitudes toward whistleblowing, even if they have witnessed wrongdoing, mainly due to: perceived low protection by the law; limited trust in authorities; absence of an ethical climate; inadequate whistleblowing education; fear of retaliation and social isolation; and concerns that reported crimes will remain unpunished. Important information is generated through this study that can inform practice in relation to political and sociocultural dynamics, and particularly key determinants that negatively influence and undermine the efficiency of the whistleblowing process in certain cultural and organizational contexts. The implications of our findings for regulators, researchers and government authorities are also presented. This study supports the position that whistleblowing is closely related to sustainability as a transparency-promoting mechanism, and should be integrated into strategies in the fight against misconduct, fraud and corruption in public sector entities. Full article

This paper introduces a location–allocation model to support environmental emergency response strategic planning using a drone-based network. Drones are used to verify potential emergencies, gathering additional information to support emergency response missions when time and resources are limited. The resulting discrete facility location–allocation model with mobile servers assumes a centralized network operated out of sight by first responders and government agents. The optimization problem seeks to find the minimal cost configuration that meets operational constraints and performance objectives. To test the practical applicability of the proposed model, a real-life case study was implemented for the municipality of Ji-Paraná, in the Brazilian Amazon, using demand data from a mobile whistle-blower application and from satellite imagery projects that monitor deforestation and fire incidents in the region. Experiments are performed to understand the model’s sensitivity to various demand scenarios and capacity restrictions. Full article

The objective of this research is to appraise the level of entrepreneurial activity in South Africa and to identify the challenges to implementation of the fourth industrial revolution (4IR) that obstruct the leveraging of 4IR technologies to boost entrepreneurial activity in the country. A conceptual exploratory literature review approach was applied. This study’s results show that a high unemployment rate, the quality of entrepreneurial support initiatives, physical infrastructure, enterprise funds and increased economic freedom are enablers of entrepreneurial activity in South Africa. High data costs, poor digital technological preparedness, an unreliable energy supply, data protection and cyber security risks, among other factors, were identified as obstacles to 4IR implementation. We, therefore, recommend a 4IR fund, mandatory data price laws, proactive policing, further public–private partnerships, enhancement of whistle-blower protection laws, among others, as solutions to buoy entrepreneurial activity through application of 4IR technologies. These results signal the need to ensure a synchronized effort by all relevant spheres of government to address the 4IR implementation challenges and enhance entrepreneurial activity for South Africa’s economy. Full article

Empirical research identifies whistleblowing as one of the most effective internal antifraud controls. Very recently, Directive 1937/2019 became effective in the EU, aiming to deal with the defragmentation of whistleblowing legislation among the member states and provide common minimum accepted standards. The present article aims to provide a verified, weighted comparative maturity model. The suggested model has been constructed based on the methodology for constructing comparative maturity models and validated based on the Delphi method. The weights on each validated component have been calculated based on the summing of votes method. The study resulted in eight main components «scope», «corporate governance», «reporting mechanisms», «protection», «tone at the top», «organizational and human resource practices», «investigations» and «monitor and review» divided further into 18 elements. The suggested maturity model may provide a pathway for organizations to develop and maintain a robust whistleblowing maturity framework that will benefit both the organizations and the public welfare. Full article

Reporting helps to combat illegal activities and deters lawbreakers and potential lawbreakers. From ancient times to the present, public authorities have usually rewarded effective reporting information to build harmonious societies. In this process, protecting the privacy of the whistleblower is a very important issue. Existing blockchain-based anonymous reporting solutions help solve the problem of insufficient anonymity in traditional reporting solutions, but they do not address the issue of hiding the reporting behavior. The disclosure of reporting behavior may alert offenders in advance and negatively impact case handling. This paper proposes an anonymous and covert reporting scheme and rewarding mechanism based on blockchain, which realizes the covertness of the reporting behavior while protecting the privacy of the whistleblower. The proposed scheme uses ring signature and derived address technology to ensure anonymity and achieves covertness by embedding information in the ring signature based on the idea of covert communication. Theoretical analysis proves that the proposed scheme has covertness, anonymity, and unforgeability properties. Experiments show that the proposed scheme takes only 0.08 s to upload data and 0.07 s to verify while achieving covertness. Full article

Online food delivery increases dramatically during the COVID-19 era and has grown into a global marketplace worth more than $150 billion dollars, necessitating a more effective and responsive governance system. Public-private governance systems with whistleblowing to the public are seen as an effective tool for addressing the formidable challenges of food security in modern society. Accordingly, this study aims to explore the determinants of whistleblowing intentions and to propose policy policies for the whistleblowing system to fully utilize the advantages of public-private governance systems. Through empirical research, this paper finds that employees’ perceived effectiveness of government authorities, as well as their familiarity with whistleblowing systems, positively affect their intentions to blow the whistle. However, the whistleblowing intent of restaurant employees is adversely affected by the online platform’s focus. The root cause lies in the employee’s trust in both the government sector and corporate sector. This study thus argues that a suite of measures to promote individual trust in public-private governance systems is desired and that this is an effective means of better mitigating food safety governance challenges in terms of capacity and resources. Full article

As an informal environmental regulation, public participation plays a vital role in the multi-governance environmental system. Based on the evolutionary game theory, this paper constructs the game models of government enterprise, public enterprise and government public enterprise, and analyzes the impact of different intensity of government behavior and public participation on enterprise behavior strategies. The results show that: (1) In the two-party evolutionary game, the behavior of each stakeholder is related to its costs and benefits. Still, effective public participation allows the enterprise to choose legal discharge, even if the benefits of legal discharge are smaller than illegal discharge. (2) In the three-party evolutionary game, the steady-state conditions of government and the public are the same as those in two-party evolutionary game models. However, the decision-making behavior of enterprises also needed to consider the impact of public whistle-blowing on their reputation and image. (3) With the increase of the government’s ecological protection publicity, subsidies, fines, public concern, and whistle-blowing, the evolution speed of the enterprise towards legal discharge is faster. Full article