Recent data breaches underscore the importance of organizational cybersecurity. However, the high costs of such security can force chief financial officers (CFOs) to make difficult financial and ethical trade-offs that have both business and societal implications. We employ a 2 × 2 randomized experiment that varies both an observed scenario CFO’s investment decision (invest/not invest in security) and organizational outcomes (positive/negative) to investigate these trade-offs. Participant managers assess the observed CFO’s investment behavior and indicate their own intentions to invest. Results (...) indicate that when the observed scenario CFO invests in security, managers primarily follow their peers when making investment decisions. However, when the observed CFO does not invest in security, managers make their own decisions by engaging in more in-depth reasoning that includes assessment of the seriousness of consequences, as well as the ethical and societal considerations. Moderated mediation findings further deconstruct and corroborate these relationships. (shrink)

This study explores the micro-determinants of corruption tolerance among 1414 university students in Guatemala, a country grappling with significant corruption issues. By examining the attitudes of economics majors compared to students in other disciplines through ordered logistic regression analysis, we offer new insights into factors influencing corruption tolerance in a developing country setting. This approach, by focusing on a developing country, fills a research gap in the literature on the differences between economics students and their peers from other programs. We (...) find that economics students exhibit a greater tolerance for corruption. This result aligns with theories and research that suggest that economists show a profit-maximizing mindset, and distinctive values and fairness perceptions. Furthermore, our analysis reveals significant effects of gender and age on corruption tolerance, with women and older students reporting lower tolerance to corrupt practices. The study also uncovers the higher tolerance towards private versus public corruption. These findings provide valuable guidance for developing policies and educational initiatives to reduce corruption tolerance among future professionals in similar socio-economic environments. (shrink)