Corporate
governance is refer to how a company is govern. Good corporate governance is
important as it can make the company being more transparent and satisfied the
shareholders and other stakeholders of a company. Whistleblower is an
individual or an employee in a company who expose or disclose information that
he/she believes is evidence of illegality, fraud, misconduct, abuse of power,
general wrongdoing or substantial and specific danger to public health and
safety. The focus of this study was on the role of whistleblower in enhancing
good corporate governance of Malaysian Publicly Listed Companies (PLCs). This
study investigates the roles of whistleblower in enhancing good corporate
governance of Malaysian public listed companies. The roles of whistleblower in
this study consist of combating malpractice, promoting best practice, asset
protection and making a report to the authorities. This study used a
quantitative approach via questionnaire to obtain relevant information in
relation to the roles of whistleblower from company secretary perspective. The study used descriptive statistics,
correlation and regression analysis to analyse the data collected. Based on the
findings of the study it is found that the role of whistleblower in making a
report to authorities had a statistically positive relationship with enhance
good corporate governance. In addition, the study also found as expected that
there is a high level of corporate governance among Malaysian publicly listed
companies. However for the other whistleblower roles, there are no significant
relationship with enhance good corporate governance. The results suggested that
the role of whistleblower in making the report to authorities is the most
significant role in enhancing good corporate governance. Thus, practitioners
and policy makers should focus on this role in order to enhance company corporate
governance. There are several implications of the study, first each individual
employee has a duty and responsibility to act as a whistleblower to make a
report of any wrong doing that occurred within the company. In order to
strengthen other roles of whistleblower, company should provide appropriate
training and development programmes to increase the core value and create a
better corporate culture as to have a good working practice and corporate
environment. In respect of policy, the government should revise the
Whistleblower Protection Act 2010 to provide sufficient protection to the whistleblower
by also including protection to employee who blows the whistle internally.
Future study should pay attention to other possible variables such as role of
directors, internal control or corporate culture that might enhance Malaysia
Corporate Governance in future empirical work.
