The Influence of Nationality and Gender on Ethical Sensitivity: An Application of the Issue-Contingent Model

When a member of an organization has to make a decision or act in a way that may benefit some stakeholders at the expense of others, ethical dilemmas may arise. This paper examines ethical sensitivity regarding the duties to clients and owners (principals), employees (agents), and responsibilities to society (third parties). Within this framework, ethical perceptions of male and female managers are compared between the U.S. and Turkey – two countries that differ on power distance as well as the individualism/collectivism dimensions. Our results show that ethical sensitivity varies depending upon whether the interests of principals, agents, or third parties are affected by a given ethical dilemma. We also find that, contingent upon the principal-agent–society relationships, the nationality and gender of the decision-maker influences ethical sensitivity.Can Simga-Mugan is a Professor of Accountancy at Departmentof Business Administration of Middle East Technical University,Ankara, Turkey. She received her Ph.D. inaccountancy from University of Illinois-Urbana-Champaign.Her current research interests are ethics, international financialreporting issues, manipulation in the stock market and effect ofnews on the stock market.Bonita A. Daly, Ph.D., is an Assistant Professor of Accountingin the School of Business, University of Southern Maine inPortland, Maine. She teaches auditing and financialaccounting to both undergraduate and graduate students. Dr.Daly also teaches business ethics in continuing educationprograms for practicing accountants. Her research on theaccounting profession has appeared in Critical Prespectiveson Accounting, Accounting, Organizations, andSociety, and the St. Johns Law Review, among others.Dilek Onkal is a Professor of Decision Sciences and is currentlythe Acting Dean of the Faculty of Business Administration atBilkent University, Turkey. She received a Ph.D. inDecision Sciences from the University of Minnesota, and isdoing research on ethics judgements, risk perception, riskcommunication, and judgmental forecasting.Lerzan Kavut is an Associate Professor at Faculty of BusinessAdministration of Istanbul University. She has received herB.A. and Ph.D. from Istanbul University. Her currentresearch interest is in the area of behavioral auditing.