When compliance culture fails to curb incivility: leadership mechanisms and organizational culture across key industries

Abstract

Purpose This study examines how three compliance culture dimensions – organizational compliance (formal governance), individual compliance (value internalization) and leadership compliance (visible commitment), predict employee whistleblowing intentions across industries and countries. Design/methodology/approach Survey data from 752 employees across four countries and five industries were analyzed using individual-level OLS regression models to test direct effects, organizational culture moderation, cross-industry and cross-national differences and leadership mediation. Findings All three compliance dimensions predicted whistleblowing (R2 = 0.361), with differential effects across contexts. Clan and Adhocracy cultures amplified relationships; Hierarchy cultures showed contingent effects. Industry and national context significantly moderated compliance effects. Most critically, leadership compliance mediated 71% of the organizational compliance effect, indicating formal governance primarily influences reporting through visible leadership commitment. Practical implications Organizations cannot assume compliance infrastructure directly promotes whistleblowing, particularly within highly regulated sectors such as financial services, where compliance culture directly influences trust, reputation and stakeholder confidence. Leadership must visibly embody compliance values, and interventions require customization to organizational and cultural contexts. Originality/value This research demonstrates that leadership enactment represents the primary mechanism through which compliance structures influence employee reporting behavior across multiple industries and national contexts.

The authors' abstract, as published at the source. International Journal of Bank Marketing, 2026 · DOI ↗