ABSTRACT Leaders have been thought to play a vital role in influencing employees’ unethical behavior. However, what happens to leaders and followers in the aftermath of unethical conduct has received little attention in the literature. Drawing from the correspondent inference theory, we examine the conditions under which leaders attribute their followers’ unethical behavior to poor moral character and eventually assign them low performance ratings. Through a two-wave research design and data from 290 matched employee–leader dyads, we found that a leader (...) is more likely to infer that a follower who has engaged in unethical behavior is of poor moral character when the leader has a higher moral identity, and the leader will impose lower performance ratings on this follower when the leader prefers lower moral decoupling. (shrink)

Are risk-takers more likely to engage in unethical behaviors? We examined the relationship between risk-taking propensity and cheating in two experimental studies. In Study 1, we examined the relationship between subjects’ risk-taking propensity and their actual self-serving dishonesty using a gambling-like task. The results suggested that risk-taking propensity, measured using a behavioral approach, was positively correlated with actual self-serving dishonest behavior. In Study 2, we measured participants’ performances using a matrices test and found that the positive correlation still held. We (...) found that participants with high risk-taking propensity reported a lower perceived probability of being detected, which might drive their dishonest behavior. (shrink)

In this study, we draw on moral cleansing theory to investigate the consequence of unethical pro-organizational behavior from the perspective of the actors. Specifically, we hypothesize that after conducting UPB, people may feel guilty and tend to cleanse their wrongdoings by providing suggestions or identifying problems at work. We further hypothesize that the above relationship is moderated by the actor’s moral identity symbolization. We conducted three studies, including experiment and surveys, to test our hypotheses. Results of these studies show consistent (...) support to our hypotheses. In particular, individuals reported more felt guilt after conducting UPB, and they tended to compensate with more prohibitive and promotive voice subsequently. In addition, the indirect relationship from UPB acting to both voice behaviors via felt guilt was stronger for people with a high level of moral identity symbolization. Theoretical and practical implications are discussed. (shrink)

It would seem, on the surface, logical that entrepreneurs would treat stakeholders with honesty and respect. However, this is not always the case—at times, entrepreneurs lie to stakeholders in order to take a step closer to achieving legitimacy. It is these legitimacy lies that are the focus of the current work. Overall, while we know that legitimacy lies are told, we know very little about the psychological processes at work that may make it more likely for someone to tell a (...) legitimacy lie. Thus, we theorize about the pressure to pursue legitimacy, the situational and individual factors that affect this pursuit, as well as how this context can lead to moral disengagement and the telling of legitimacy lies. Our theorizing advances the existing literature and provides a dynamic framework by which future research can delve more deeply into the nuanced context that breeds the escalation of legitimacy lies. (shrink)

In this article, we demonstrate that individuals use motivated reasoning to convince themselves that their self-serving behavior is justified, which in turn affects the distribution of resources in business situations. Specifically, we explore how ambiguous contextual cues and individual beliefs can jointly form motivated reasoning. Across two experimental studies, we find that whereas individual ideologies that endorse status hierarchies can strengthen the relationship between contextual ambiguity and motivated reasoning, individual beliefs rooted in fairness and equality can weaken it. Our findings (...) contribute to person–situation theories of business ethics and provide evidence that two ubiquitous factors in business organizations—contextual ambiguity and social dominance orientation—give rise to motivated reasoning, enabling decision makers to engage in self-serving distributions of resources. (shrink)

Social desirability bias (SDB) is one of the main concerns in self-reported studies that measures explicit attitudes such as ethics research. Although SDB was introduced since the early 1950s, little effort has been made to understand the necessity of including an SDB scale in studies of sensitive topics such as ethics. The purpose of this paper was to (1) identify whether current ethics-related studies considered SDB when conducting their research and (2) ascertain whether SDB was a significant variable in such (...) studies. This investigation takes the form of a systematic review of articles published within the last 20 years in well-known business ethics journals (2000–2019). We found that (a) only 13.67% of ethics research measured SDB; (b) although the majority of the reviewed articles were from the West, researchers in Asia have also made significant progress in recent years in measuring SDB in their studies; (c) SDB was used mainly as a control variable and as such researchers preferred scales with fewer items; and (d) SDB was unavoidable even when using online surveys. Based on our findings, we attempt to provide an overview of SDB in ethics research and encourage ethics researchers who adopt self-reported surveys to include an SDB measurement in their studies to control SDB. (shrink)

We examined the mediating role of employee moral ownership in the relationship between employees’ perception of organizational support and their actual ethical behavior. Data were collected from 689 faculty members affiliated with different educational institutions in India. Structural equation modeling analysis showed that perceived organizational support significantly impacts employee ethical behavior. In addition, the results revealed that employee moral ownership mediates the relationship between perceived organizational support and employee ethical behavior. Implications and limitations of the study are discussed.

In this article, we extend the research on the public interest to non-audit engagements performed by accounting firms and public accountants. Our thesis is that non-audit engagements, as private goods, require a distinct approach to the public interest than auditing. We suggest that a public value perspective can be used conceptually to provide substantial criteria for designing non-audit engagements conducive to public value creation and greater accountability. We illustrate the applicability and consequences of a public value perspective by analyzing and (...) contrasting the decision of two judicial opinions deciding whether Deloitte and the lead partner of a consulting engagement failed to act in the public interest in engineering the sale of collapsed British carmaker MG Rover. We advocate for a significant change in ethical codes of conduct by defining public interest obligations, not only in terms of professional attributes, but also in terms of outcomes. Our approach also suggests a requirement regarding planning a non-audit engagement, including establishing a public value proposition detailing the planned nature of the engagement, and extent of the assessment of the intended public value creation. We discuss the aspirational function of codes of conduct to provide accountability other than in terms of technical output, and to maintain the legitimacy and purpose of the profession. (shrink)

Corporate social responsibility (CSR) aspirations by companies have been identified as a motivating factor for active employee participation in CSR implementation. However, a failure to practise what one preaches can backfire and lead to attribution of hypocrisy. Drawing on a qualitative study of an award-winning sustainability pioneer in the cosmetics sector, we explore the role of moral judgement in how and when employees interpret word–deed misalignment in CSR implementation as hypocritical. First, our case reveals that high CSR aspirations by companies (...) raise employees’ moral expectations. Second, we develop a framework that explains variations in employees’ hypocrisy interpretations based on consequentialist and deontological forms of moral judgement. Our research advances a contextual view of hypocrisy, not as an objective characteristic of an organisation, but as an outcome of interpretative processes of perceived motives and results in CSR implementation. Our framework thereby explains why even highly committed organisations may face accusations of hypocrisy. (shrink)

Two distinct and perhaps mutually exclusive understandings of utilitarianism have emerged in the ethics literature. Utilitarianism is typically regarded as an approach to determine ethicality by focusing on whether or not actions produce the greater good, but has also been conceptualized as a set of traits to which individuals might be predisposed. This paper is designed to clarify the meaning and implications of such utilitarian traits as “results-oriented,” “innovative,” and “a winner.” Although the Janus-headed model of ethical theory from which (...) these traits emerged had been acknowledged by its developer as possibly misrepresenting typical views of utilitarianism, much research using these traits appears to have been conducted without clear recognition of this. If the conceptual foundation underpinning hypothesis development is disconnected from the measure used to test them, then little support for relevant predictions should emerge. A review of the literature which featured utilitarian traits generally confirmed this. This paper also explored the origins and emergence of these traits and suggested that existing evidence that these measure utilitarian ethical predispositions is not especially persuasive. Understanding what utilitarian traits do not assess is critical in order for knowledge about this potentially useful measure to advance. (shrink)

Business Ethics: A European Review, EarlyView.

This study focuses on the reliability and validation of the Chinese version of the Moral Attentiveness Scale. Factor analysis confirmed that the scale includes two factors: perceptual moral attentiveness and reflective moral attentiveness. Moral attentiveness is negatively correlated with normlessness and positively associated with internalization and symbolization, moral identity, and other academic dishonesty behaviors. Reflective moral attentiveness moderated the relationship between formalism and unethical decision making. All results showed that the Chinese version of the Moral Attentiveness Scale has satisfactory psychometric (...) properties and is a valid and reliable measurement of moral attentiveness in the Chinese population. (shrink)