This paper describes the results of a field experiment involving 400 employees from ten financial institutions operating within the Shenzhen Special Economic Zone of the Peoples Republic of China. It was found that, when faced with an agency-based problem, employees indicated they would be less inclined to advise management of the existence of unethical work practices. Younger employees without supervisory experience displayed significant risk aversion. Traditional Chinese values associated with Confucian work dynamism, were shown to be poor predictors of moral (...) choice response. A parsimonious regression model was developed that provides evidence that the universal trait Masculinity/Femininity (Human-heartedness) acted to offset the negative influence of the agency problem. On the other hand, an operatives level of education attainment exerted a negative influence on moral response scores. (shrink)

This paper describes the results of a field experiment involving 400 employees from ten financial institutions operating within the Shenzhen Special Economic Zone of the People's Republic of China. It was found that, when faced with an agency-based problem, employees indicated they would be less inclined to advise management of the existence of unethical work practices. Younger employees without supervisory experience displayed significant risk aversion. Traditional Chinese values associated with Confucian work dynamism, were shown to be poor predictors of moral (...) choice response. A parsimonious regression model was developed that provides evidence that the universal trait Masculinity/Femininity acted to offset the negative influence of the agency problem. On the other hand, an operative's level of education attainment exerted a negative influence on moral response scores. (shrink)

Moral choice, as a precursor to behaviour, has an important influence on the success or failure of business entities. According to Rest, 1983, Morality, Moral Behavior and Moral Development (John Wiley & Sons, New York), moral choice is prompted, amongst other things, by a motivational component. With this in mind, data obtained from a sample of four hundred financial sector operatives, employed in a rapidly developing region of China, was used to construct a relatively stable set of motivational typologies which (...) could be used to predict choice within an agency-based context. A non-egoist version of the agency theory was developed, which permitted the modelling of alternative heuristic patterns. Altruists and persons identified as bordering on the verge of being classified as psychological egoists, refused to reorganize their motives when responding to a problem that included both moral hazard and adverse selection criteria. It was also possible to identify certain personal and contextual issues which discriminated between the typologies. (shrink)

A study of 612 CPAs employed in four separate regions of the People’s Republic of China shows that they exhibit ethical orientations that are not significantly different from one another and that they do not, as a group identify with the Subjectivist description provided in the Forsyth et al. (Journal of Business Ethics 8(83):813–833, 2008) meta-analytic international study involving the Ethical Position Questionnaire. Confirmatory factor analysis did however establish the validity of the instrument as a measure of idealistic and relativistic (...) tendencies. It was established that the ethical tone within local accounting firms plays a significant role in forming ethical positions and that these variables together work to influence ethical judgement making with respect to issues involving independence and objectivity. The constructs of relativism and idealism act as reliable predictors of moral choice, but need to be carefully interpreted in the context of field research. The study highlights concerns about the ethicality of a fledgling group of professionals having to cope with the exigencies associated with the world’s fastest developing economy. (shrink)

This paper examines the effectiveness of ethics education provided by Malaysian universities. A total of 264 accounting students attending ethics courses in public and private universities responded to a pre and post questionnaire (treatment group) and another 57 students who did not complete an ethics course (control group) were included for comparative purposes. Statistical analysis reveals that business ethics courses are effective as students demonstrate higherlevel of ethical sensitivity upon completion of the course. In contrast, the control group students demonstrate (...) lower levels of ethical sensitivity. Students in the “good” and “average” academic performance category, females, and Malay students, gained most from an ethics education. Students from public universities were also found to benefit more than their private university counterparts. The results contribute to the dearth of research in this area and present a case for introducing compulsory business ethics courses in all Malaysian universities offering accounting programs. (shrink)

This paper examines the effectiveness of ethics education provided by Malaysian universities. A total of 264 accounting students attending ethics courses in public and private universities responded to a pre and post questionnaire (treatment group) and another 57 students who did not complete an ethics course (control group) were included for comparative purposes. Statistical analysis reveals that business ethics courses are effective as students demonstrate higherlevel of ethical sensitivity upon completion of the course. In contrast, the control group students demonstrate (...) lower levels of ethical sensitivity. Students in the “good” and “average” academic performance category, females, and Malay students, gained most from an ethics education. Students from public universities were also found to benefit more than their private university counterparts. The results contribute to the dearth of research in this area and present a case for introducing compulsory business ethics courses in all Malaysian universities offering accounting programs. (shrink)

During 2012 students enrolled in a Master’s management accounting unit were invited to complete a compulsory class quiz, which was arranged to include a mild form of deception allowing them an opportunity to cheat. Prior to the test students were coached concerning the importance of the ICMA code of ethical conduct, which formed the basis of the quiz. Following the test, students were made aware of the deception and asked to judge the propriety of their actions using a research instrument (...) based on moral intensity theory (Jones in The Academy of Management Review, 16(2), 366–395, 1991). Academic dishonesty, in its many forms is endemic in universities and in this study a significant number of students take advantage of an opportunity to maximise test scores and earn an advertised reward by cheating. Others adopted a virtuous position and opted not to use the information. As reported from an earlier investigation, Woodbine and Amirthalingam (2013) again demonstrate the effect of cognitive dissonance (Festinger 1957) although previously the research instrument did not clearly differentiate between respondent types. A logistic regression of subsequent data establishes that high achievers (in terms of their test scores) are more likely to take advantage of the disclosed information to maximise scores and that this is somewhat offset by aspects of their moral character. Immediately following the field experiment, students met to reflect on their actions. A summary of their responses is provided, which tends to support prior evidence that many are somewhat blasé in their attitude to this form of opportunistic behaviour. These findings have ramifications in terms of the way tertiary institutions emphasise academic excellence before moral development, while acting to manage the incidence of misbehaviour. (shrink)

A cross sectional study of a sample of Australian accounting students during 2011 is used to test whether the relationship concept of guanxi is accepted as a social networking concept across cultures. While favour-seeking guanxi appears to be equally important across cultural groups (as a universal set of values), its negative variant, rent-seeking guanxi continues to be sanctioned to a greater extent by students holding temporary visas from Mainland China. Contrary to the findings of Fan, Woodbine, and Scully (2012) involving (...) Chinese auditors, this study of Australian and Chinese students did not identify favour-seeking guanxi as a factor influencing ethical judgment, whereas rent-seeking guanxi was strongly significant as a predictor of judgment making for Australian students. Major concerns are expressed about the need to sensitize Chinese students to make them more aware of unethical practices prevalent in their home country. These findings have significant implications for educators delivering ethics courses to cohorts that include international students as well as the professional bodies involved in designing development programs. (shrink)

A cross sectional study of a sample of Australian accounting students during 2011 is used to test whether the relationship concept of guanxi is accepted as a social networking concept across cultures. While favour-seeking guanxi appears to be equally important across cultural groups (as a universal set of values), its negative variant, rent-seeking guanxi continues to be sanctioned to a greater extent by students holding temporary visas from Mainland China. Contrary to the findings of Fan, Woodbine, and Scully (2012) involving (...) Chinese auditors, this study of Australian and Chinese students did not identify favour-seeking guanxi as a factor influencing ethical judgment, whereas rent-seeking guanxi was strongly significant as a predictor of judgment making for Australian students. Major concerns are expressed about the need to sensitize Chinese students to make them more aware of unethical practices prevalent in their home country. These findings have significant implications for educators delivering ethics courses to cohorts that include international students as well as the professional bodies involved in designing development programs. (shrink)

A controlled experiment was conducted with a cohort of graduate accounting students, which involved a mild form of deception during a class ethics quiz. One of the answers to a difficult question was inadvertently revealed by a visiting scholar, which allowed students an opportunity to use the answer in order to maximise test scores and qualify for a reward. Despite an attempt to sensitize students prior to the test to the importance of moral codes of conduct, a high incidence of (...) cheating was reported. Students who took the opportunity to cheat were more condoning of the behaviour compared to control group members and this difference in attitudes was consistent regardless of the intensity of the issue specified in the survey. The cognitive dissonance associated with the academic dishonesty is believed to reveal behavioural orientations that reflect conscious and unconscious desires to alleviate the discomfort associated with the behaviour by attempting to condone it. This inappropriate behaviour appears to attract students professing no religious faith and is significantly influenced by the reported level of religious commitment. (shrink)

Accountants and auditors are often faced with ethical dilemmas, which they have to process using resources available to them. Although they may be sensitive to the ethicality of the issues and have the cognitive ability to work through a judgment process, the final action they take may be dependent on a number of motivational factors, endogenous to the issue. Agency issues are a continuing area of concern providing accountants with an ability to shirk their responsibilities and hide confidential information, which (...) may affect their career prospects if disclosed. This ongoing study explores these notions within a stakeholder context and uses a post test only field experiment to gain evidence to support the existence of an agency problem and that membership to one of a number of motivational typologies directly affects the way accountants respond to ethical issues. This association causes them to adopt informational heuristics that may result in less than optimal decisions. This study identified two specific endogenous constructs, namely social consensus and venal intent that discriminate between motivational types and which possibly provide psychological underpinnings explaining membership orientation. (shrink)