While a corporate ethics program is expected to reduce employees’ unethical behavior, understanding the effects of the ethics program elements on reducing the unethical behavior is a crucial issue. This study aims to explore how a corporate ethics program with multiple control elements, including punishment, monitoring, internal reporting, code of ethics, ethics support service and ethics training, influence employees’ threat appraisal process, coping appraisal process and unethical behavior at workplaces. The data to verify proposed research hypotheses were collected by administering (...) questionnaire survey on four autonomous government organizations in Bangladesh. Research findings show that only punishment and monitoring have significantly negative relationships with unethical behavior. Monitoring and internal reporting have significantly positive relationships with threat appraisal. The code of ethics, ethics support service and ethics training are associated positively with coping appraisal. The mediation results reveal that coping appraisal mediates the relationship between ethics program elements and unethical behavior; but the mediation effects of threat appraisal are not significant. This study provides valuable insights into how a corporate ethics program with multiple control elements reduces employees’ unethical behavior as well as how employees’ threat and coping appraisal processes are related to the corporate ethics program and unethical behavior in organizations. (shrink)

This paper examines the emotional processes in Machiavellian leadership. The leadership literature portrays Machiavellians as ‘dark’ individuals that engage in unethical actions, causing employee dissatisfaction, distress, emotional exhaustion and high turnover. However, research has seldom questioned the processes behind these unethical and negative outcomes. This study explores Machiavellian emotional processes at multiple levels—within-persons and relational levels (between-persons and interpersonal interactions in organisations). In this study, emotions and leadership are not explored in isolation but as social processes that occur in relationships (...) between leaders and employees in evolving organisational settings. This study draws on 20 participants from four large multi-national construction firms in Sri Lanka. Open-ended semi-structured interviews were conducted to explore the emotions of Machiavellians in organisations. The findings suggest that Machiavellianism influences leader and employee emotional processes. Furthermore, the emotional processes, influenced by Machiavellianism, appear to facilitate the development of leader and employee relationships and emotional experiences at within-persons and relational levels in organisations. (shrink)

Business students have long been noted for their differential proclivity to engage in academic misconduct. Unfortunately, the potential for misconduct has been exacerbated in recent years by rapid advances in technology, easy access to information, competitive pressures, and the proliferation of websites that provide students access to information that allows them to directly circumvent the learning process. Using a convenience sample of 631 students matriculating in various business majors at four U.S. universities and structural equations modeling procedures, this study assesses (...) the effects of psychological factors on business students’ propensities to utilize the services of homework assistance websites. Specifically, we examine how “Dark Triad” personality traits (i.e., narcissism, Machiavellianism, and psychopathy) interact with Fraud Diamond elements to influence student decisions to engage the services of these websites. We find that each Dark Triad trait exerts a significant influence on at least one of the Fraud Diamond elements, which in turn have a significant direct or indirect positive association with students’ reported intentions to utilize, and reported utilization of, these websites. (shrink)

There is considerable variability across people in their punitive responses to employee offenses in the workplace. We attempt to explain this variability by positing a novel antecedent of punishment: moral recognition. We find consistent evidence that identifying moral considerations and implications for workplace offenses predicts punitive responses toward employees who commit those offenses. Drawing on functional theoretical accounts of morality and punishment, we posit that people are motivated to punish others to the extent that they believe a moral offense has (...) been committed, because much of what it means to commit a moral offense (as opposed to a non-moral offense) is to act in a way that prevents, or inhibits, cooperative behavior to achieve social goals. Punishment can discourage group members from committing those offenses in the future, thereby regulating behavior in a way that facilitates cooperation and social cohesion. We offer correlational and causal evidence that the link between moral recognition and punishment is explained, in part, by participants’ beliefs that committing these offenses prevents cooperative behavior to achieve organization-related goals. (shrink)

Using a social exchange perspective of narcissism as the foundation for study hypotheses, this study explored the relationship between leaders’ narcissism and the well-being of both leaders and subordinates at the individual and group levels. Results from a sample of 1017 subordinates working under 424 leaders generally support the hypothesized models finding leaders’ narcissism negatively relates to leader-member exchange, and that LMX subsequently relates to subordinates’ job satisfaction and emotional exhaustion. At the group level, leaders’ narcissism also negatively relates to (...) three forms of leaders’ personal well-being but these relationships go through average LMX. Elaboration on theoretical and empirical implications for business ethics is offered to provide a clearer direction for future research in this area. (shrink)

Any professional or scientific discipline has a responsibility to do what it can to ensure ethical behavior on the part of its members. In this context, this paper outlines and explores the criticism that to date the emphasis in ethics training in professional psychology, as with other disciplines, has been on the rational elements of ethical decision making, with insufficient attention to the role of emotions and other nonrational elements. After a brief outline of some of the historical background to (...) the development and understanding of ethical decision making, relevant theoretical and empirical literature on the influence of emotional and other nonrational factors on our ethical decisions is reviewed. The implications of this literature for ethics education and training are outlined, particularly with respect to the use of case studies. An integrative approach is proposed, and conclusions and recommendations are offered with respect to such an approach. (shrink)

The pandemic has altered accounting education with the widespread adoption of remote evaluation platforms. We apply the lens of the fraud triangle to consider how the adoption of remote evaluation influences accounting students’ ethical values by measuring the incidence of cheating behavior as well as capturing their perceptions of their opportunity to cheat and their rationalization of cheating behavior. Consistent with prior research, our results show that cheating is higher in the online environment compared to remote evaluation, although the use (...) of proctoring software in online evaluation appears to mitigate but not eliminate students’ the unethical behavior. However, cheating was not reduced when students attest to an honor code during the beginning of an exam. Nonetheless, we find that the use of both proctoring software and honor codes reduces students’ perceptions of opportunity and rationalization of cheating behavior. It follows that the remote evaluation environment may unintentionally be negatively influencing the ethicality of students and future accounting professionals by promoting cheating behavior and, by so doing, negatively influencing the development of unethical values of accounting students and future accounting professionals. Educators should consider the use of appropriate educational interventions to reduce the incidence and opportunities for unethical behavior and, by so doing, help promote the development of ethical values in future accounting professionals. Further implications for teaching and the accounting profession are discussed. (shrink)

Unethical employee behavior (UEB), an important organizational phenomenon, is dynamic and multi-faceted. Recent renewed interest in the role of emotion in ethical decision-making (EDM) suggests that unethical behaviors are neither always rationally derived nor deliberately undertaken. This study explores how to integrate the conscious and nonconscious dimensions of unethical decision-making. By broadening the scope of inquiry, we explore how integral affect—the emotion tied to anticipated decision outcomes for the employee engaging in misconduct—can shed light on UEB. We review related literature (...) on affect and EDM and propose a model in which we assert that at a decision point, an employee experiences multiple integral affects that are either persuasive or dissuasive toward UEB. We further posit that among these integral affects, a dominant integral affect (DIA) emerges, determining the nature and direction of unethical behavior. In addition, our model considers the role of affective residue and the influence of other factors, such as incidental affect, disposition, context, and retrospection, to derive propositions. Our DIA model can help managers gain a comprehensive understanding of how affect, characterized by its locus (self or other orientation) and valence (enhancing or harming), determines the characteristics of UEB. (shrink)

Although nascent research has begun to examine the consequences of perfectionism in organizations, the understanding of whether perfectionism may incur ethical costs in the workplace remains limited. This paper enhances knowledge about the potential ethical consequences of perfectionism by focusing on an important yet previously ignored behavior—workplace cheating. Across two multi-wave, multi-industry survey studies and a preregistered experiment (Ntotal = 1005), the results show that the relationship between employee perfectionism and workplace cheating depends on the dimension of perfectionism. We find (...) that employees with a high level of perfectionistic concerns (as opposed to perfectionistic strivings) may cheat in the workplace due to elevated fear of performance failure. In addition, supervisor bottom-line mentality exacerbates concern perfectionists’ fear of performance failure, leading to more cheating. Our findings hold even when several alternative explanations are accounted for, suggesting the robustness of our results. Theoretical and practical implications and directions for future research are discussed. (shrink)

This study examined how protection motivation intention and other cognitive appraisal processes influence the relationship between compliance and value-oriented ethics programs and employees’ unethical behavior. A total of 342 employees from various government and private organizations in Bangladesh participated in the study. The PLS-SEM results revealed that perceived vulnerability, perceived cost, and protection motivation intention have significant relationships with employees’ unethical behavior. However, perceived self-efficacy did not show a significant relationship with unethical behavior. The study also identified that cognitive appraisal (...) processes (perceived vulnerability, self-efficacy, and response cost) mediate the relationship between compliance and value-oriented ethics programs and protection motivation intention. Additionally, protection motivation intention was found to mediate the relationship between cognitive appraisal processes and employees’ unethical behavior. Furthermore, the study revealed that accountants and auditors exhibit stronger protection motivation intention to comply with ethics programs compared to other employees. Based on these findings, the study suggests that both academics and practitioners should emphasize the importance of protection motivation intention as a cognitive process when designing ethics programs aimed at preventing unethical behavior in the workplace. (shrink)

Machiavellianism is a popular construct in research on ethics and organizational behavior. This research has demonstrated that Machiavellianism predicts a host of counterproductive, deviant, and unethical behaviors. However, individuals high in Machiavellianism also adapt to their organizational surroundings, engaging in unethical behavior only in certain situations. Nevertheless, the utility of Machiavellianism has been questioned. Meta-analyses have demonstrated that psychopathy out-predicts Machiavellianism for most antisocial outcomes. Thus, many researchers assume Machiavellianism is a derivative and redundant construct. However, researchers examining the utility (...) of Machiavellianism may be asking the wrong question about how Machiavellianism is unique. In our review, we find it less informative to ask about what antisocial behaviors Machiavellianism predicts. Instead, we find it more informative to ask when Machiavellianism predicts antisocial behaviors. Drawing on Field Theory and Trait Activation Theory, we argue that Machiavellianism is a trait that is associated with person × environment interactions. Their adaptive nature is made possible through the presence of impulse control and environmental sensitivity to punishment, two characteristics that individuals high in psychopathy lack. Consequently, individuals high in Machiavellianism constrain their antisocial behavior to environments when the benefits outweigh the costs. Thus, environmental context, especially the risk of external punishment, moderates Machiavellian misbehavior more than it does for those high in psychopathy. These behavioral constraints align with Lewin’s argument that behavior is a function of the person, environment, and interaction between the two. From this discussion, we arrive at recommendations pertaining to the future of Machiavellianism research in organizational and other applied settings. (shrink)

We study the relationship between risk managers’ dark triad personality traits (Machiavellianism, narcissism, and psychopathy) and their selective hedging activities. Using a primary survey of 412 professional risk managers, we find that managers with dark personality traits are more likely to engage in selective hedging than those without. This effect is particularly pronounced for older, male, and less experienced risk managers. The effect is also stronger in smaller firms, less centralized risk management departments, and family-owned firms.

Based on upper echelon theory, we employ machine learning to explore how CEO characteristics influence corporate violations using a large-scale dataset of listed firms in China for the period 2010–2020. Comparing ten machine learning methods, we find that eXtreme Gradient Boosting (XGBoost) outperforms the other models in predicting corporate violations. An interpretable model combining XGBoost and SHapley Additive exPlanations (SHAP) indicates that CEO characteristics play a central role in predicting corporate violations. Tenure has the strongest predictive power and is negatively (...) associated with corporate violations, followed by marketing experience, education, duality (i.e., simultaneously holding the position of chairperson), and research and development experience. In contrast, shareholdings, age, and pay are positively related to corporate violations. We also analyze violation severity and violation type, confirming the role of tenure in predicting more severe and intentional violations. Overall, our findings contribute to preventing corporate violations, improving corporate governance, and maintaining order in the financial market. (shrink)

Extensive research has documented the harmful effects associated with working for a narcissistic supervisor. However, little effort has been made to investigate ways for victims to alleviate the burdens associated with exposure to such aversive persons. Building on the tenets of conservation of resources theory and the documented efficacy of functional assets to combat job-related stress, we hypothesized that subordinates’ resource management ability would buffer the detrimental impact of narcissistic supervisors on affective, cognitive, and behavioral work outcomes for subordinates. We (...) found support for our hypotheses across three independent samples of US workers. Specifically, higher levels of subordinate resource management ability attenuated the harmful effects of supervisor narcissism on employee-reported emotional exhaustion, job tension, depressed mood, task performance, and citizenship behavior. Conversely, these relationships further deteriorated for subordinates with lower levels of resource management ability. Overall, our research contributes to the literature that, although extensively documenting the harmful ramifications of narcissism in organizations, has neglected to investigate potentially mitigating factors. (shrink)

Corroborating upper echelons theory, this study picks up the notion that narcissistic chief executive officers take advantage of accounting choices to enhance their firms’—and inherently their own—personal track records. Using a set of 15 indicators, reflecting the narcissistic trait of 1126 CEOs for the period 1992 to 2012, we find evidence of highly narcissistic CEOs engaging in accrual-based earnings management. In contrast to prior research, the results show evidence not only for income-increasing but also for income-decreasing ABEM. This indicates that (...) highly narcissistic CEOs not only strive to influence stakeholders’ perception of current performance. We conclude that they also assess their potential to influence perception of current and future earnings. The results imply that highly narcissistic CEOs’ accounting choices are driven by self-serving behavior rather than by the intention to provide additional information to the market. When earnings management techniques are used to derive personal advantage from the presentation of a firm’s earnings, the literature refers to this as a case of low earnings quality reflecting unethical behavior. Accordingly, this study contributes to the field of business ethics by showing that CEO narcissism is related to low earnings quality in that it is associated to discretionarily decreasing accruals. (shrink)

Narcissists often attain leadership positions, but at the same time do not care for others and often engage in unethical behaviors. We therefore explored the role of leader narcissism as an antecedent of abusive supervision, a form of unethical leadership. We based our study on the narcissistic admiration and rivalry concept (NARC) and proposed a direct positive effect of leaders’ narcissistic rivalry—the maladaptive narcissism dimension—on abusive supervision. In line with trait activation and threatened egotism theory, we also proposed a moderated (...) mediation assuming that leaders high in narcissistic rivalry would be particularly prone to showing abusive supervision in reaction to followers’ supervisor-directed deviance, as this form of follower behavior would threaten their self-esteem. We conducted a field study with leader–follower dyads (Study 1) and an experimental vignette study with leaders (Study 2). Leaders’ narcissistic rivalry was positively related to abusive supervision (intentions) in both studies. This effect was independent of followers’ supervisor-directed deviance and leaders’ perceived self-esteem threat. We discuss our findings in light of the NARC, as well as threatened egotism theory, and offer directions for future research. Finally, we make practical recommendations for organizations. (shrink)

We investigate the relationship between the dark triad personality traits (Machiavellianism, narcissism, and psychopathy) of managers and the practice of reporting manipulation using a primary survey of 837 professionals working in accounting and finance departments. We find that (a) managers who exhibit dark personality traits are associated with a higher prevalence of fraudulent accounting practices in their accounting and finance departments and (b) traditional risk management mechanisms are only partially effective in mitigating this effect. Internal audits are effective in curtailing (...) the negative behavior of managers with dark triad traits only if these internal audits are outsourced and performed by independent external personnel but not if they are conducted by internal personnel. This suggests that managers with dark triad traits are able to manipulate other employees quite effectively. Consequently, having external personnel perform the auditing task provides a safeguard against such unethical practices and manipulation. This finding has strong practical implications, as it provides support for outsourcing internal audits rather than keeping them in-house. (shrink)