Ethical Decision Making in the Public Accounting Profession: An Extension of Ajzen’s Theory of Planned Behavior

The purpose of this study is to expand our understanding of the factors that influence ethical behavioral intentions of public accountants. Recent scandals have dominated the news and have caused legislators, regulators and the public to question the role of the accounting profession. Legislative changes have brought about major structural changes in the profession and continued scrutiny will surely lead to further changes. Thus, developing an understanding of the personal and contextual factors that influence ethical decisions is critical. An extension of the theory of planned behavior [Ajzen, I.: 1985, Action Control-From Cognition to Behavior (Springer, Heidelberg)], the model used in this study examined the influence of personal, social and organizational factors on ethical intentions. Specifically, the individual level model tested direct effects of attitudes, subjective norms, perceived behavioral control, moral sensitivity and ethical climate. Professionals from five accounting firms completed a survey that measured responses to ethical dilemmas related to the public accounting domain. To minimize the potential impact of common method bias, the survey instrument was administered in two phases. Hypotheses were evaluated using a structural modeling technique, partial least squares. Results show strong support for a direct relationship between attitudes and ethical intentions. The proposed direct effect of subjective norms was not supported. However, a significant relationship between subjective norms and attitudes was found. Professionals’ attitudes towards ethical issues clearly influence intentions. Moreover, this study illustrates the potential influence of social factors in attitude formation. Future research should explore the factors in the public accounting domain that most strongly influence attitude formation. This study suggests that the theory of reasoned action offers a useful framework for exploring these issues.     

Ethical Work Climate as a Factor in the Development of Person-Organization Fit

The purpose of this study was to determine if there is a relationship between the ethical climate of the organization and the development of person-organization fit. The relationship between an individual's stage of moral development and his/her perceived ethical work environment was examined using a sample of 86 working students. Results indicate that a match between individual preferences and present position proved most satisfying. Subjects expressing a match between their preferences for an ethical work climate and their present ethical work climate indicated that they were less likely to leave their positions.     

The Influence of Deontological and Teleological Considerations and Ethical Climate on Sales Managers' Intentions to Reward or Punish Sales Force Behavior

This study examined how sales managers react to ethical and unethical acts by their salespeople. Deontological considerations and, to a much lesser extent, teleological considerations predicted sales managers' ethical judgments. Sales managers' intentions to reward or discipline ethical or unethical sales force behavior were primarily determined by their ethical judgments. An organization's perceived ethical work climate was not a significant predictor of sales managers' intentions to intervene when ethical and unethical sales force behavior was encountered.     

An Examination of the Relationship Between Ethical Work Climate and Moral Awareness

This paper draws from the fields of history, sociology, psychology, moral philosophy, and organizational theory to establish a theoretical connection between a social/organizational influence (ethical work climate) and an individual cognitive element of moral behavior (moral awareness). The research was designed to help to fill a gap in the existing literature by providing empirical evidence of the connection between organizational influences and individual moral awareness and subsequent ethical choices, which has heretofore largely been merely assumed. Results of the study provide evidence that ethical work climate (EWC) is a primary predictor of individual moral awareness, and that the influence of social factors often overrides the effects of individual differences in a work group setting. Implications for future research are provided.     

Ethical Pressure, Organizational-Professional Conflict, and Related Work Outcomes among Management Accountants

This study examines the effects of ethical pressure on management accountants' perceptions of organizational-professional conflict, and related work outcomes. It was hypothesized that organizational pressure to engage in unethical behavior would increase perceived organizational-professional conflict, and that this perceived conflict would reduce organizational commitment and job satisfaction, and increase the likelihood of employee turnover. A survey was mailed to a random sample of Certified Management Accountants to assess perceptions of the relevant variables. The results of a structural equations model indicated that, as hypothesized, ethical pressure was associated with higher levels of perceived organizational-professional conflict. Also as hypothesized, higher levels of conflict were associated with lower levels of organizational commitment and job satisfaction. Finally, lower levels of commitment and satisfaction were associated with higher turnover intentions.     

Ethically Questionable Negotiating: The Interactive Effects of Trust, Competitiveness, and Situation Favorability on Ethical Decision Making

This study explores the direct and interactive effects of individual differences in interpersonal trust and negotiation style on ethical decision-making processes across commonly faced negotiation situations. Individual differences influence basic ideas about legitimate negotiating behaviors, affect behavioral intentions directly, and interact with the favorability of negotiating situations, resulting in direct, indirect, and interactive effects on ethical decision-making processes. Using a sample of 298 participants in executive education workshops, the study analyzes the relationship between interpersonal trust, competitiveness, moral judgment, and behavioral intentions in different negotiating conditions through a series of structural equation models and regression analyses. Our results suggest that individual difference variables exert a significant influence not only on how managers assess the morality of ethically ambiguous negotiation practices but also directly on their behavioral intentions, and that this effect changed across specific negotiation situations. We discuss these results in terms of their usefulness in explaining ethical decision-making processes in negotiations.     

伦理型领导与伦理问题报告：一个多层次模型

基于社会学习理论及社会信息加工视角,文章探讨了伦理型领导激发员工报告组织内部伦理问题的多层次作用机制。文章采用两阶段问卷调查方式收集67名团队领导与302名员工调查样本,运用多层线性模型进行假设检验,结果表明,个体导向的伦理型领导对员工伦理问题报告具有显著正向影响,道德勇气在二者之间起部分中介作用。同时,团队导向的伦理型领导显著正向影响员工伦理问题报告,伦理氛围在二者之间起完全中介作用。此外,在伦理氛围更强的团队,个体导向的伦理型领导对伦理问题报告的作用更强。研究结果揭示了伦理型领导影响员工伦理问题报告的多层次作用路径及边界条件,对于加强组织的伦理管理具有重要的现实意义。     

The Effects of Commitment to Moral Self-improvement and Religiosity on Ethics of Business Students

Using survey methodology we examined the relationships between commitment to moral self-improvement (CMSI), religiosity, ethical problem recognition, and behavioral intentions in a sample of 242 business students. Results of the study suggest that CMSI predicts ethical problem recognition and behavioral intentions. Our findings also suggest that CMSI is positively related to religiosity. The study provides some evidence of CMSI being a mediator in the influence of religiosity on ethical problem recognition and behavioral intentions. Compared to religiosity, CMSI turned out to be a better predictor of perceived importance of ethics, ethical problem recognition, and ethical behavioral intentions. The results of the study have implications for increasing understanding of ethical decision-making, future studies of business ethics, and business ethics education.     

Spanish and American Executives' Ethical Judgments and Intentions

This study explores differences between executives in the U.S. and Spain in their perceptions of ethical issues in pricing, specifically comparing a domestic firm's actions affecting a foreign market versus a foreign firm's actions affecting the domestic market. Overall, Spanish and American executives provided somewhat different responses to the scenarios. Findings indicate that ethical judgments and intentions among Spanish executives did not vary based on which country was harmed. U.S. executives generally perceived that a morally questionable act directed at a foreign country was more unethical than a morally questionable act directed at the United States. Possible explanations for these findings are suggested.     

Organization-Harm vs. Organization-Gain Ethical Issues: An Exploratory Examination of the Effects of Organizational Commitment

The existing literature on the relationship between organizational commitment and ethical decision making suggests that ethical decision makers with higher organizational commitment are less likely to engage in ethically questionable behaviors. The ethical behaviors previously studied in an organizational commitment context have been organization-harm issues in which the organization was harmed and the individual benefited (e.g., overstating an expense report). There is another class of ethical issues in an organizational context, however. These other issues, termed organization-gain issues, focus on the organization obtaining a benefit while outsiders, such as investors, are harmed (e.g., overstating reported revenue). We explore whether individuals with higher organizational commitment are more or less likely to engage in questionable behaviors that benefit the organization. Results of our study indicate that individuals with higher organizational commitment are less likely to engage in ethically questionable behaviors, regardless of whether the behaviors are organization-harm or organizational-gain issues.     

Are Students Really Less Ethical Than Business Practitioners?

Past research provides evidence of lower ethical standards amongst the student population when compared to business practitioners, using business-based survey instruments. This study examines the adequacy of this conventional research tool by assessing the influence of scenario context (university or business setting) on ethical intentions using data from 243 commerce tertiary students.Students tended to respond more ethically to issues set in a university context than to equivalent issues in a business setting. The tolerance level for unethical behaviour in both contexts was also found to decline with full-time work experience and age. However, full-time work experience appears to be the major variable influencing ethical ratings set in a business context, whereas age was found to predict the ethical judgements of students in the university scenarios. The overall pattern of responses indicates that ethical standards vary according to scenario context.The study illustrates the importance of considering respondents' exposure to the settings concerned when conducting ethical studies using scenario-based instruments. Respondents should have adequate knowledge and exposure to the type of setting they are asked to evaluate. Results of this study argue for caution in the interpretation of past findings involving student samples responding to ethical issues in business settings.     

An Empirical Evaluation of the Effect of Peer and Managerial Ethical Behaviors and the Ethical Predispositions of Prospective Advertising Employees

An advertising firm's ethical culture (as defined by the firm's managerial and peer ethical behaviors) may affect the employees' comfort levels and ethical behaviors. In this research, scenarios were used to describe advertising firms with various ethical cultures. Respondents' perceived comfort levels in working for the firms described in the scenarios and the respondents' behavioral intentions when faced with various advertising situations were assessed. Results of the study indicate that peer ethical behavior exerts a strong influence on the comfort or discomfort level and the ethical behavioral intentions of potential advertising employees. Further, the strong influence exerted by peers seems to transcend the ethical behavior of the manager and carry over to the attitude toward the entire corporate advertising environment. This study provides insights for firms and researchers interested in assessing the impact of an advertising firm's ethical culture on potential employees.     

Ethical work climate,employee commitment and proactive customer service performance: Test of the mediating effects of organizational politics

This study examined the mediating effects of organizational politics on the relationships between ethical work climate and two employee outcomes: affective commitment and proactive customer service performance. Using 200 survey responses collected from six shopping malls, we found that perceived ethical work climate had a direct effect on employee perceptions of organizational politics, affective commitment and proactive customer service performance. Moreover, perceived organizational politics partially mediated the relationship between ethical climate and affective commitment, but not that between ethical climate and proactive customer service behavior. We recommend retailers develop ethical climate to strengthen their competitive advantage.     

The Impact of Normative Influence and Locus of Control on Ethical Judgments and Intentions: a Cross-Cultural Comparison

The study extends the Theory of Planned Behavior (TPB) in a cross-cultural setting, incorporating ethical judgments and locus of control in a comparison of Taiwanese and US businesspersons. A self-administered survey of 698 businesspersons from the US and Taiwan examined several hypothesized differences. Results indicate that while Taiwanese respondents have a more favorable attitude toward a requested bribe than US counterparts, and are less likely to view it as an ethical issue, their higher locus externality causes ethical judgments and behavioral intentions to conform to normative influences of in groups and superiors. In the Taiwanese sample, locus externality effectively functions as a countervailing pressure against the unethical behavior in the scenario. No such effect is found in the US sample. A path model fitted to the data shows that locus internals exhibit more consistency among attitudes, judgments, and behavioral intentions than locus externals. Implications for managers and researchers are discussed, and suggestions and precautions for development of efficacy-enhancement programs are offered.     

You Support Diversity,But Are You Ethical? Examining the Interactive Effects of Diversity and Ethical Climate Perceptions on Turnover Intentions

Efforts to identify antecedents of employee turnover are likely to offer value to organizations through money saved on recruitment and new-hire training. The authors utilized the stakeholder perspective to corporate social responsibility to examine the effects of a perceived climate for ethics on the relationship between diversity climate and voluntary turnover intentions. Specifically, they examined how ethics climate (employees’ perceptions that their organization values and enforces ethically correct behavior) affected the diversity climate–turnover intentions relationship. Results indicated that ethics climate moderated the diversity climate–turnover intentions relationship. Turnover intentions were lowest among workers perceiving both a pro-diversity and highly ethical climate. These results reinforce the need to communicate both diversity values and ethical standards to employees.     

Ethics Codes and Sales Professionals' Perceptions of Their Organizations' Ethical Values

Most large companies and many smaller ones have adopted ethics codes, but the evidence is mixed as to whether they have a positive impact on the behavior of employees. We suggest that one way that ethics codes could contribute to ethical behavior is by influencing the perceptions that employees have about the ethical values of organizations. We examine whether a group of sales professionals in organizations with ethics codes perceive that their organizational context is more supportive of ethical behavior than sales professionals in companies without codes. After accounting for the effect of several covariates, our results indicated that sales professionals employed in organizations with codes of ethics perceived their work environments to have more positive ethical values than did other sales professionals.     

Ethical Decision Making in Fair Trade Companies

This paper reports on a study of ethical decision-making in a fair trade company. This can be seen to be a crucial arena for investigation since fair trade firms not only have a specific ethical mission in terms of helping growers out of poverty, but they tend to be perceived as (and are often marketed on the basis of) having an "ethical" image. Eschewing a straightforward test of extant ethical decision models, we adopt Thompson's proposal for a more contextualist understanding rooted in ethnographic data. Our findings suggest that the fair trade mission of the firm is experienced as an over-riding ethical claim, which is often invoked to justify potentially ethically questionable decisions. Moreover, decision precedents emerge which can mean that the decision process is bypassed or hurried through. Finally we provide evidence that the significance of these precedents, and indeed, even moral intensity itself, could be actively shaped and constructed by organization members to support different, even shifting, conceptions of what is a morally acceptable decision for a fair trade company to make.     

Perceptions of the Ethical Climate in the Korean Tourism Industry

This study investigates the ethical climate types presented in the Korean tourism industry, the differences in the perceptions of these ethical climate types based on individual/organizational characteristics, and the influence of ethical climate types based on job satisfaction/organizational commitment. Empirical findings of this study identify six ethical climate types and demonstrate significant difference and significant influence of the proposed relationships. This research contributes to the existing body of academic work by using empirical data collected from 820 respondents across 14 companies within the Korean tourism industry, to demonstrate the relationship between actual ethical climate types and ethical climate related factors. The findings of this study identify the new factor ‹moral caring,’ which describes an environment characterized by decisions that maximize collective interest, but based on an individual employee’s personal values and ethics. Such a factor has important implications for the service industry, where face-to-face encounters typify the relationship between employee and consumer.     

You Support Diversity,But Are You Ethical? Examining the Interactive Effects of Diversity and Ethical Climate Perceptions on Turnover Intentions

Efforts to identify antecedents of employee turnover are likely to offer value to organizations through money saved on recruitment and new-hire training. The authors utilized the stakeholder perspective to corporate social responsibility to examine the effects of a perceived climate for ethics on the relationship between diversity climate and voluntary turnover intentions. Specifically, they examined how ethics climate (employees’ perceptions that their organization values and enforces ethically correct behavior) affected the diversity climate–turnover intentions relationship. Results indicated that ethics climate moderated the diversity climate–turnover intentions relationship. Turnover intentions were lowest among workers perceiving both a pro-diversity and highly ethical climate. These results reinforce the need to communicate both diversity values and ethical standards to employees.     

Determinants of Ethical Decision Making: The Relationship of the Perceived Organizational Environment

This study attempts to help explain the ethical decision making of individual employees by determining how the perceived organizational environment is related to that decision. A self- administered questionnaire design was used for gathering data in this study with a sample size of 245 full-time employees. Perceived supervisor expectation, formal policies, and informal policies were used to assess the expressed ethical decision of the respondents. The findings indicate that the perceived organizational environment is significantly related to the ethical decision of the respondent.