Examining the Hindering Effects of Receiving Help on Internal Reporting of Unethical Behavior

ABSTRACT Despite the well‐documented positive individual and interpersonal benefits of receiving help, we argue that it can also lead to potentially damaging moral consequences for the organization. The purpose of this study is to add to our understanding of the moral consequences of receiving help and the inhibitors of reporting unethical behavior in organizations. Drawing from social exchange theory and the moral psychology of obligation, we argue that employees will be less likely to report a wrongdoer internally when they have received help from that person in the past due to feelings of obligation, or feeling that “I don't want to, but I have to.” Using laboratory experiments, we found that participants significantly reduced their internal reporting behavior after receiving a small favor, even when they had no prior relationship with the wrongdoer, due to feelings of obligation. We replicated the effect in a multi‐wave survey study. This effect was strengthened by positive reciprocity beliefs and help solicitation. We conclude by discussing the theoretical and practical implications of our research.