Archival research reports that managers often use the FIN 48 uncertain tax liability accrual to manage earnings. To assess solutions to this problem, we deconstruct the ethical and psychological reasoning that leads to FIN 48 opportunistic behavior. Hence, we employ a survey of seasoned accounting managers to assess the influences of cynicism, two measures of moral disengagement, and pressure from a CFO on the propensity to engage in FIN 48 earnings management. Specifically, we manipulate the influence of the study scenario (...) supervisory CFO as either a latent bully or a transformational leader. While the CFO bully main effect condition enhances FIN 48 earnings management, the CFO transformational leader condition interacts with less cynical accounting managers to reduce FIN 48 earnings management. We also find that both dispositional trait and situational state moral disengagement factors independently mediate the relationship between the cynicism model antecedent and FIN 48 earnings management. Collectively, study findings provide implications for both theory and practice. (shrink)

In business ethics research, little is known about why and how employees engage in unethical behavior, especially unethical pro-organizational behavior (UPB) and unethical pro-family behavior (UPFB). Based on cognitive-affective personality system theory and conservation of resources theory, this study aims to explore the mechanisms underlying the effects of workplace bullying, as a negative event, on UPB (Study 1) and UPFB (Study 2). In Study 1, workplace bullying negatively correlated with UPB where emotional exhaustion and organization-oriented moral disengagement played chain-mediating roles (...) in this relationship. In Study 2, workplace bullying positively correlated with UPFB where emotional exhaustion and family-oriented moral disengagement played chain-mediating roles in the relationship. In both studies, perceived forgiveness climate, as a conditional factor, was found to weaken the positive impact of workplace bullying on both emotional exhaustion and the chain-mediating effect of emotional exhaustion and moral disengagement in the relationship between workplace bullying and UPB/upfb. Overall, this study explains why, how, and when employees exhibit UPB and UPFB. The implications for theory and practices that could enable organizations to reduce employees’ unethical behavior are discussed. (shrink)

Based on a framework that integrates job demands-resources theory, social cognitive theory Handbook of personality, Guilford Press, New York, pp 154–196, 1999) and regulatory focus theory, the purpose of this research is to investigate the relationship between perceptions of organizational politics and subsequent moral disengagement and unethical behavior. We conducted a laboratory study and also collected data in two separate surveys 6 weeks apart from 206 individuals working full time to investigate the relationships presented in our model. In both studies, (...) we examined the direct relationship of politics perceptions on unethical behavior in organizations as well as the indirect relationship through the influence of moral disengagement. We investigated the moderating effect of regulatory focus on the relationship between moral disengagement and unethical behavior using the survey data. Results indicated that perceptions of politics were significantly related to our mediator, moral disengagement, which was significantly related to our dependent variable, unethical behavior. However, only prevention-focus moderated the relationships examined. Implications for future research and managerial practice are discussed. (shrink)

Deontological and teleological evaluations are widely utilized in the context of consumer decision-making. Despite their use, the differential effect of these distinct types of evaluations, and the conditions under which they hold, remains an unresolved issue. Thus, we conduct a meta-analysis of 316 effect sizes, from 53 research articles, to evaluate the extent to which deontological and teleological evaluations influence ethical judgments and intentions, and under what circumstances the influence occurs. The effect is explored across three categories of moderators: (1) (...) contextual elements of the ethical issue, (2) stakeholders, and (3) methodological characteristics of primary studies. We find that the overall effect of deontological evaluations on ethical judgments and intentions is stronger than for teleological evaluations; however, the magnitude of the effect is contingent on several moderators. Deontological evaluations are weaker in offline consumer contexts and stronger when there are financial implications of the ethical issue. Conversely, the effect of teleological evaluations is relatively stable across ethical consumer contexts. Teleological evaluations are stronger from a utilitarian perspective than from an egoist one. Furthermore, the effect of deontological evaluations is weaker, but the effect for teleological evaluations is stronger, when the decision-maker has a personal relationship (as compared to an organizational relationship) with the victim of the unethical act. Findings validate the effect of both deontological and teleological evaluations on ethical judgments and intentions and highlight their importance in consumers’ ethical decision-making. Implications for developing programs to prevent consumer unethical behavior are discussed. (shrink)

Individual actions designed to address issues of public concern is a common theme in the discourse on how to mobilize resources and target efforts toward sustainable practices. We contribute to this area by developing and empirically validating a multidimensional scale for civic engagement; synthesizing and testing the adequacy of the theory of planned behavior and the value–belief–norm theory in explaining civic engagement; and considering how an individual’s orientation, identity, and beliefs motivate moral thinking and action. The focus is on the (...) important social issues of global warming and climate change, income inequality, and world poverty, and hunger. We follow both correlational and configurational approaches to examine symmetric and asymmetric causal relationships, respectively. The findings from a sample of 819 US citizens reveal that the TPB and VBN theory can adequately explain civic engagement, after we control for the influence of past experience. In addition, while belief in a just world inhibits the occurrence of adverse consequences and the formation of positive attitudes, social value orientation, and moral identity facilitate them. Notably, at least two causal conditions need to be present for adverse confsequences to emerge, while moral identity is almost a necessary condition for the development of positive attitudes. We conclude with a discussion of important implications for researchers and practitioners. (shrink)

The purpose of this research is to examine the notion of salesperson moral identity as a prosocial individual trait and its associated effects on customer and coworker relationships. In addition, this study examines the underlying processes in which these effects occur as well as the moderating role of internal competitive climate. Our empirical investigation of business-to-business (B2B) sales professionals reveals that moral identity has both direct and indirect effects on a salesperson’s customer- and team-directed outcomes. Specifically, our results demonstrate that (...) salesperson moral identity positively affects both salesperson-customer identification and organizational identification, which, in turn, impact customer service provision and teamwork. Our findings also indicate that internal competitive climate exacerbates the positive effects of salesperson moral identity on customer service provision and teamwork. (shrink)

The article reports the findings of an empirical study among consumers, regarding the impact of physical, social, and psychological proximity on their engagement to the fair trade idea and purchasing behavior. Based on a random sample of 211 British and 112 Indian consumers and using structural equation modeling, it was found that high levels of physical, social, and psychological proximity leads to high consumer fair trade engagement. Moreover, consumer fair trade engagement was confirmed to have a positive impact on fair (...) trade purchasing behavior. Furthermore, consumer empathic concern was found to positively moderate the association between proximity and consumer fair trade engagement, while the opposite was true with regard to consumer hypocrisy. Finally, consumer nationality was found to have a control effect on physical, social, and psychological proximity, with the latter felt stronger among Indian, as opposed to British consumers. (shrink)

This paper applies moral foundations theory in the context of consumer ethics. The purpose of the study is to examine whether moral foundations theory can be utilised as a theoretical framework to explain consumers’ beliefs regarding both ethical and unethical consumption. The relationships among various moral foundations and different dimensions of consumer ethics are examined with a sample of 450 US consumers. The results demonstrate that, among the various moral foundations, only the sanctity/degradation foundation is negatively related to beliefs regarding (...) all forms of unethical consumer actions as well as ‘no harm, no foul’ actions. On the contrary, the care/harm, fairness/cheating and authority/subversion foundations are related to positive beliefs regarding ‘doing good’ actions. This indicates that moral motivations for supporting pro-social actions as a consumer are not necessarily the same as moral motivations for condemning unethical actions. The findings also demonstrate that the loyalty/betrayal foundation is positively related to beliefs regarding unethical consumer actions and negatively related to perceptions of pro-social consumer actions. This demonstrates that in-group loyalty leads to supporting unethical actions. Furthermore, the results show that various moral foundations mediate the relationships of idealism with consumers’ ethical beliefs. Hence, various moral foundations can explain the effects of personal variables on consumer ethics. (shrink)

This paper applies moral foundations theory in the context of consumer ethics. The purpose of the study is to examine whether moral foundations theory can be utilised as a theoretical framework to explain consumers’ beliefs regarding both ethical and unethical consumption. The relationships among various moral foundations and different dimensions of consumer ethics are examined with a sample of 450 US consumers. The results demonstrate that, among the various moral foundations, only the sanctity/degradation foundation is negatively related to beliefs regarding (...) all forms of unethical consumer actions (actively benefiting from illegal actions, passively benefiting from the mistakes of the seller and actively benefiting from legal but questionable actions) as well as ‘no harm, no foul’ actions. On the contrary, the care/harm, fairness/cheating and authority/subversion foundations are related to positive beliefs regarding ‘doing good’ actions. This indicates that moral motivations for supporting pro-social actions as a consumer are not necessarily the same as moral motivations for condemning unethical actions. The findings also demonstrate that the loyalty/betrayal foundation is positively related to beliefs regarding unethical consumer actions and negatively related to perceptions of pro-social consumer actions. This demonstrates that in-group loyalty leads to supporting unethical actions. Furthermore, the results show that various moral foundations mediate the relationships of idealism with consumers’ ethical beliefs. Hence, various moral foundations can explain the effects of personal variables on consumer ethics. (shrink)

Research on the antecedents of consumers’ ethical beliefs has mainly examined cognitive variables and has neglected the relationships among affective variables and consumer ethics. However, research in moral psychology indicates that moral emotions have a significant role in ethical decision-making. Thus, the ability to experience, perceive and regulate emotions should influence consumers’ ethical decision-making. These abilities, which are components of emotional intelligence, are examined as antecedents to consumers’ ethical beliefs in this study. Five hundred Australian consumers participated in this study (...) by completing an online questionnaire that included measures of emotional intelligence, consumers’ ethical beliefs and personal moral philosophies. Results demonstrate that the ability to appraise and express emotions in oneself is directly negatively related to beliefs regarding actively benefiting from illegal actions as a consumer, passively benefiting at the expense of the seller and actively benefiting from questionable but legal actions as a consumer. The ability to appraise and express emotions in oneself is directly positively related to beliefs regarding ‘doing-good’ actions. The ability to appraise and recognise emotions in others is also directly positively related to beliefs regarding ‘doing-good’ actions as well as pro-environmental buying actions. The effects of the different components of emotional intelligence on consumers’ ethical beliefs are mediated by personal moral philosophies. This study demonstrates the relationship between emotional intelligence and consumer ethics and highlights the interplay of affect and cognition in consumers’ ethical decision-making. (shrink)

Previous research demonstrates the critical role moral disengagement plays in unethical decision-making. This study investigates the relationships among moral endorsement, shareholder-value orientation, moral disengagement, and moral judgment on issues of different moral intensities. The results of a scenario-based survey conducted in China confirm the negative (positive) impact of moral disengagement (moral intensity) on moral judgment. The findings reveal that both moral endorsement and shareholder-value orientation of decision-makers significantly influence moral judgment and that moral intensity moderates the relationships between moral endorsement (...) and moral judgment, and between shareholder-value orientation and moral disengagement. The study’s theoretical contributions, managerial implications, and limitations are discussed. (shrink)

The current research investigates how religiosity can influence unethicality in a consumption context. In particular, considering the link between extrinsic religious orientations and unethicality, this research clarifies why and when extrinsic religiosity leads to unethical decisions. Across two studies, findings show that ethnocentrism is both a mediator and a moderator of the effects of extrinsic religiosity on consumers’ ethical judgments. This is because extrinsic religiosity leads to ethnocentrism, and in-group loyalty manifested through ethnocentrism increases support for unethical consumer actions, thus (...) establishing ethnocentrism as a mediator. At the same time, different levels of ethnocentrism can also influence how extrinsic religiosity leads to supporting unethical consumption via self-righteousness, thus establishing ethnocentrism as a moderator. The findings from this research have significant implications for diverse stakeholders who have an interest in religiosity and consumer behavior. (shrink)