Investigating the Relationship between Managers' Leadership Style with Whistleblowing in Auditing Firms:with Emphasis on Theories of Emotional Intelligence and Social Identity

Managers' leadership style is one of the important factors affecting the behaviors and level of ethical reasoning of employees and achieving organizational goals, and whistleblowing is an important source of information to identify wrongdoing in the organization. Therefore, in this study, the relationship between ethical leadership style and whistleblowing with the moderating role of emotional intelligence and social identity (professional identity and organizational identity) of independent auditors has been investigated.

In this study, 441 auditors working in private sector audit firms and the audit organization in 2020 participated. Data were collected through the distribution of paper and electronic questionnaires and using structural equations analyzed. 

Findings of this study show that managers 'ethical leadership style and its components have a positive and significant effect on auditors' whistleblowing directly and due to emotional intelligence, professional identity and organizational identity.

Due to the pattern of managers for employees, the implementation of ethical leadership style causes ethical characteristics to be considered by auditors working in audit firms and also strengthening emotional intelligence and professional and organizational identity causes auditors to be used in social interactions and when in a whistleblowing position.

The findings of this study can be considered in the development of whistleblowing procedures and amendments to ethical and educational regulations, and thus lead to an increase in the tendency to whistleblowing among auditors and the prevention and reduction of violations in auditing firms.