We revisit religiosity, gender, age, ethics education and experience as drivers of ethicality, while expanding prior research from Anglo-Saxon and Asiatic/Euro-Asiatic countries to a Latin European country, Portugal. We apply the Merchant instrument of attitudes towards earnings management, in a sample of Portuguese accounting students and alumni. We find no significant evidence of a positive association between religiosity and accountants’ judgments on earnings management. However, gender, age, education and experience are significant predictors of accountants’ judgments. The results are unchanged when (...) we control for the intent of earnings management. Females, older individuals and alumni judge accounting earnings management more harshly than males, younger individuals, and students. A higher level of accounting work experience induces accountants to judge accounting earnings management as a less ethically questionable practice. This finding is theoretically relevant because it underscores the necessity of taking people’s constraints in the workplace into consideration when studying ethical behavior in business contexts. The results are also practically relevant, as they highlight the importance of a systematic ethics education throughout the accountant’s life. (shrink)

The primary purpose of this study was to explore the indirect effect of intrinsic religiosity and extrinsic religiosity on ethical intention through ethical judgment. A review of the literature shows the need for more research at the intersection of religiosity and ethics, especially in non-Western, highly religious contexts. This research, therefore, addresses the research question: Do intrinsic religiosity and extrinsic religiosity indirectly impact ethical intention through influencing the ethical judgment of management professionals? Data were gathered from members of the Management (...) Association of Pakistan through a questionnaire. Pearson correlation results show the overall trend between the constructs of interest. Multiple regression results show that both intrinsic religiosity and extrinsic religiosity are significant positive predictors of ethical judgment. Ethical judgment was also found to be a significant, positive predictor of ethical intention. The main contribution of the study is evidence that ethical judgment acts as a mediator between religiosity (whether intrinsic or extrinsic) and ethical intention in a non-Western highly religious context. This research also found that intrinsic religiosity impacts ethical intention directly as well as indirectly through ethical judgment, but extrinsic religiosity influences ethical intention only through its effect on ethical judgment. We discuss our results along with practical and research implications, and limitations of this research are highlighted to guide future research. (shrink)

Ethically questionable leader conduct continues to garner headlines. It has prompted the leadership field to renew their focus on research regarding the ethical dimensions of leadership. Empirical emphases have focused on understanding negative leader behaviour, with the typical leadership study reliant upon positivist approaches. I critique these studies as not having produced meaningful, practicable or wholly relevant insights regarding the challenges and support mechanisms required to lead ethically. Few studies have in fact examined leadership in not-for-profit organisations where decisions might (...) reasonably be expected to possess elevated moral capital. To test this, my study interviewed leaders from professional sectors in both the USA and the UK, to offer a more holistic interpretation of what underpins and directs leader moral disposition. As corollary, this research explicates issues of practicability and how other sectors might learn from leaders who perpetually practise their ethicality. To gain insights that develop the field of leadership research, my thesis centres on the experiences of ten high-level, elite and specialised leaders. Although not selected as ethical, they were found to be principled, ethical decision-makers. A specific type of in-depth, qualitative interviewing was conducted and justified to more readily reflect the status of the leaders. Elite and specialised interviewing has not been widely used as a data collection tool, but it offered a unique opportunity to garner specialised data, once access issues had been overcome. The findings reveal unique insights into the underexplored ethical leader mindset and highlight the complex processes of leader decision-making in situ by demonstrating what underpins leaders’ behaviour, with reference to how they understand experiences for themselves. This study uncovers the symbiotic and interconnected nature of the variety of ideological frameworks at play, positing theological concepts alongside sociological and philosophical counterparts. Ethical awareness, the notions of trust and responsibility are shown as bedrock and explicit. This research presents a new ethical leadership, a typology that shows how ethical leaders are created through experience, sustained and developed over time, and nourished by awareness beyond the self. Current conceptions have done little to inform ethical leadership development, whereas I offer a more practical and holistic way to use the unexpected, traumatic, and intense crucibles of leadership experience to explicate and consolidate ethical foundations. This thesis presents a vision of a welfare driven leadership originating from the self, in the service of others, and for society; an ethical leadership for all. (shrink)

In this paper, we examine the relationship between various Christian denominations and attitude and behavior regarding consumption of socially responsible products. Literature on the relationship between religiosity and pro-social behavior has shown that religiosity strengthens positive attitudes towards pro-social behavior, but does not affect social behavior itself. This seems to contradict the theory of planned behavior that predicts that attitude fosters behavior. One would therefore expect that if religiosity encourages attitude towards SR products, it would also increase the demand for (...) them. We test this hypothesis for four affiliations on a sample of 997 Dutch consumers, using structural equation modeling. We find that Christian religiosity, indeed, increases positive attitude towards SR products, except for the Orthodox Protestant affiliation. In accordance with the theory of planned behavior, attitude is found to increase the demand for SR products. We find no evidence of hypocrisy for any of the Christian denominations. (shrink)

The relationship between religiosity and ethical behavior at work has remained elusive. In fact, inconsistent results in observed magnitudes and direction led Hood et al. (The psychology of religion: An empirical approach, 1996 ) to describe the relationship between religiosity and ethics as “something of a roller coaster ride.” Weaver and Agle (Acad Manage Rev 27(1):77–97, 2002 ) utilizing social structural versions of symbolic interactionism theory reasoned that we should not expect religion to affect ethical outcomes for all religious individuals; (...) rather, such a relationship likely depends on specific religious attitudes including religious motivation orientation (intrinsic RMO vs. extrinsic RMO), perceived sacred qualities of work (job sanctification), and views of God (VOG, loving vs. punishing). We examined the effects of these three religious attitudes on participants’ judgments of 29 ethically questionable vignettes. Consistent with symbolic interactionism theory, intrinsic RMO and having a loving view of God were both negatively related to endorsing ethically questionable vignettes, whereas extrinsic RMO was positively related to endorsing the vignettes. Unexpectedly, job sanctification was positively related to endorsing the vignettes. However, both intrinsic and extrinsic RMO moderated this relationship such that sanctifying one’s job was related to ethical judgments only for those who were: (a) low in intrinsic RMO or (b) high in extrinsic RMO. We reasoned based on symbolic interactionism theory that intrinsically motivated participants, in contrast to extrinsically motivated participants, may have utilized their religious beliefs as a guiding framework in making ethical judgments. (shrink)

Background/purpose: Research from other disciplines demonstrates that ethical position, idealism, or relativism predicts ethical decision-making. Individuals from diverse cultures ascribe to various religious beliefs and studies have found that religiosity and culture affect ethical decision-making. Moreover, little literature exists regarding undergraduate nursing students’ ethical position; no studies have been conducted in the United States on students’ ethical position, their self-identified culture, and intrinsic religiosity despite an increase in the diversity of nursing students across the United States. Participants and Research Context (...) Objectives: The study’s two aims were to determine the relationship of self-identified culture, religiosity, and ethics position of undergraduate nursing student and whether students’ level of education and past ethics courses taken related to idealism. Two hundred and twelve volunteer undergraduate students participated. Research design: A descriptive cross-sectional study was designed for participants who completed the Ethical Position Questionnaire, The intrinsic subscale of the Religious Orientation Scale, and a Demographic, Cultural, Ethnicity Form. To test the five hypotheses, analyses included t-tests, correlations, and ANOVA. Ethical Considerations: The study was approved by the Institutional Review Board at Adelphi University. Results: Idealism and intrinsic religiosity were significantly related. Differences were observed for intrinsic religiosity and idealism for cultural identity and cultural dimensions such as parents’ place of birth, and if participants were US born. Students’ level of education or participation in past courses on ethics did not influence idealism. Conclusions: The study’s findings were similar to most of the research from other disciplines on culture, ethics position, and religiosity. Generic courses on ethics taken prior to clinical work may not assist nursing students in integrating principles into complex ethical dilemmas. Self-identified culture, religion, and intrinsic religiosity related to ethics position; completing ethics courses and level of education, juniors compared with seniors, did not influence idealism. Faculty should consider integrating students’ culture, religious orientation, and ethics position into teaching ethics for all levels of nursing education. (shrink)

This study furthers scholarship on the religion-entrepreneurship link by proposing that aspects of a country’s religious profile impact individual entrepreneurial activity differently and that a country’s level of investments in knowledge serves as a contingency factor in this milieu. Our cross-level analyses of data from 9,266 individuals and 27 predominantly Christian countries support the second, but not the first suggestion. The study contributes to a more nuanced understanding of religion’s role for entrepreneurship and bridges the literatures on religion and knowledge-based (...) entrepreneurship. Furthermore, the study provides evidence of the effects of religion above and beyond the effects of national culture. (shrink)

Despite the obvious link between spirituality, religiosity and ethical judgment, a definition for the nature of this relationship remains elusive due to conceptual and methodological limitations. To address these, we propose an integrative Spiritual-based model derived from categories presumed to be universal across religions and cultural contexts, to guide future business ethics research on religiosity. This article aims to empirically test in the context of Islam. It examines how different Muslims' views of God influence their ethical judgments in organizations, and (...) how this process is mediated by their religious practice and knowledge. Comprising focus group and vignette designs, the study was carried out with a random sample of 427 executives and management professionals from Saudi. After data collection, the study hypotheses were tested using structural equation modeling. The findings confirmed that a view of God based on hope might be more closely associated with unethical judgments than a view based on fear or one balancing hope and fear. Furthermore, religious practice and knowledge were found to mediate the relationship between Muslims' different views of God and their ethical judgments. These results provide unique theoretical insights into religiosity's influence on ethical judgment, with important implications for management. (shrink)

This paper explores how Islam is understood by Muslim women entrepreneurs and considers its influence on their entrepreneurial experiences in the country-specific context of Lebanon. In so doing, we adopt a qualitative interpretative approach, drawing upon 21 in-depth, semi-structured interviews with women entrepreneurs. Accordingly, we present empirical evidence detailing how Muslim women entrepreneurs utilise various aspects and teachings of Islam to make sense of their entrepreneurial decisions. We thus provide insight into how women’s entrepreneurship interlocks with Islamic teachings and the (...) restrictions imposed by patriarchal socio-cultural values in Lebanon. This paper advances entrepreneurship research by demonstrating how Islam unfolds as a source of inspiration and resilience for women entrepreneurs, if and when equipped with an Islamic feminist interpretation. (shrink)

AbstractSpirituality continues to exert a strong influence in people’s lives both in work and beyond. However, given that spirituality is often non-formalized and personal, we continue to know little about how moral reasoning is strategized. In this paper, we examine how Buddhist leader-practitioners interpret and operationalize a process of self-decentralization based upon Buddhist emptiness theory as a form of moral reasoning. We find that Buddhist leader-practitioners share a common understanding of a self-decentralized identity and operationalize self-decentralization through two practices in (...) Buddhist philosophy—skillful means and the middle way—to foreground social outcomes. However, we also find that practitioners face tensions and challenges in moral reasoning relates to agency—the ‘re-centering’ of the self as an enlightened self and the use of karmic reasoning to justify (un)ethical behavior—and contextual constraints that lead to feelings of vulnerability and exclusion. We present a model that elaborates these processes and invite further research that examines novel approaches and dynamic interpretations of the self in moral reasoning. (shrink)

In this paper, we draw upon Islamic teachings to address two questions. How do Islamic ethics deepen and advance our understanding of the whistleblowing act? To what extent are Islamic ethics of whistleblowing promoted in practice? First, we have undertaken a thematic content analysis of the holy book of Qur’an, supported by the Sunnah (Prophetic Traditions). This has yielded a novel Islamic ethics-based framework of whistleblowing comprising the five aspects of the whistleblowing process: _What_ should one blow the whistle about? (...) _Who_ should blow the whistle? _Why_ should one blow the whistle? _How_ should one blow the whistle? And _to Whom_ should one blow the whistle? Second, using the developed framework, we have analyzed the whistleblowing policies of 20 Islamic banks and financial institutions across 11 countries. This analysis reveals that there exists a narrow view of what ought to be reported as wrongdoings, a confined scope of potential whistleblowers, a lack of connection with Islamic motivations, missing steps in the actual whistleblowing process, and a lack of gradation in relation to rectifying corrupt acts, thus highlighting a framework–policy gap. This is the first study to conceptualize the whistleblowing process from an Islamic perspective. The developed framework offers guiding procedures that individuals can consult to guide whistleblowing reasoning behavior and that organizations can use while developing whistleblowing policies. It also serves as a foundation for the development of organizational whistleblowing policies in different sectors. (shrink)

The convergence of India’s rich cultural and religious heritage with its rapidly transforming economy provides a unique opportunity to understand how senior executives navigate the demands of the business environment within the context of their religious convictions. Forty senior executives with varying religious backgrounds and global responsibilities within Indian multinational corporations participated in this study. Drawing from virtue ethics theory and using systematic content analysis, several themes emerged for ethical virtues. The analysis illustrates how these deeply seated ethical virtues helped (...) to form and refine these executives’ ethical mindsets via guiding principles such as an ethical culture, environment, molding, education, commitment and leadership. In turn, these ethical mindsets influenced the executives’ ethical decision-making processes. We find that these executives’ ethical virtues and mindsets are inspired by their religious backgrounds. In summary, a very complex mental tug-of-war appears to take place as these executives rationalize and negotiate unethical circumstances while being cognizant of personal religious beliefs. We contend that in a pluralistic multi-faith society such as India, it is critical for corporations to align the virtues of its senior executives with those of the corporation so that virtues are applied consistently when dealing with various stakeholders. The findings present several theoretical and practical implications, which are discussed. (shrink)

This study examined the direct influence of national economic condition, as well as the indirect effects through the strength of noneconomic institutions on supervisors’ ethical reasoning using the institutional anomie theory developed by Messner and Rosenfeld :1393–1416, 2001). Utilizing data of 20,025 supervisors across 52 countries, the analyses showed that high disparity in the economic distribution directly and indirectly leads to unethical values. High economic inequality in a country resulted in high tendency of supervisors to justify unethical acts. In addition, (...) some of this influence went through the institutional strength of family, education, polity, and religion, thereby indicating partial mediation. As a result, the study presented the important roles of social institutions in explaining supervisors’ attitude and behavior. The findings of this research contribute to the institutional anomie theory by clarifying the multilevel path of the macrostructures’ conditions in explaining supervisors’ ethicality. Moreover, since some of the relationships between variables resulted in the direction opposite to the propositions of the theory, this study suggested other theoretical models that may be integrated with IAT. Along with these theoretical contributions, practical implications to businesses and society are discussed to strengthen supervisors’ ethics. (shrink)

We extend research on the effects of local audit office characteristics on audit quality by investigating whether audit offices in highly religious U.S. Metropolitan Statistical Areas exhibit going concern decisions that reflect heightened professional skepticism relative to audit offices in less religious MSAs. Prior research links religiosity to risk aversion and ethical development and suggests audit practice offices in more religious MSAs are more likely to issue going concern opinions because they will assess the effects of mitigating factors in a (...) more skeptical manner. Our results indicate that audit practice offices located in highly religious MSAs are more likely to issue going concern audit opinions, consistent with a more skeptical assessment of mitigating factors. Additional tests provide direct evidence consistent with the argument that these audit offices are more risk averse in issuing going concern opinions. Our findings are relevant to auditors, audit clients, researchers, and regulators. (shrink)

While there is a widespread acceptance of the link between religiosity and ethics, there is less certainty how this influence occurs exactly, necessitating further research into these issues. A main roadblock to our understanding of this influence from an Islamic perspective is the absence of a validated measurement tool. The purpose of this study therefore is to develop a Scale of Muslims’ Views of Allah. This article discusses how the SMVA was developed through the following five steps: establishment of content (...) and face validity; application of a cognitive interviewing technique to pretest the SMVA with sixteen participants; pilot testing of the SMVA with twelve participants; administration of the SMVA online to marketing and management professionals via a multi-stage cluster sampling process to verify the scale’s reliability and validity; and testing criterion-related validity. The results showed that the newly constructed 13-item scale had adequate psychometric properties. Finally, the implications for organisations, limitations and future research are discussed. (shrink)

Chinese consumers comprise a unique subculture that exerts a considerable influence on the market and are treated as a collective group by researchers. However, few studies have examined the effects of collectivism and consumer attitudinal attributes on consumer ethics. Although the practice of religion was prohibited in China before economic reforms in the late 1970s, religion remains a major factor that affects the ethical judgment of consumers. The present study, based on the Hunt–Vitell model, examines the influence of culture and (...) personal characteristics on consumer ethics. A total of 284 Chinese consumers were surveyed. Structural equation modeling was used to test hypothesized relationships in the research model. The results indicate that collectivism had a significant explanatory power for four dimensions of consumer ethical beliefs: actively benefiting from illegal activities; passively benefiting from questionable activities; actively benefiting from deceptive legal activities; and engaging in no harm and no foul activities. However, consumer attitude toward business significantly explained only the passive dimension of consumer ethics, and religious beliefs significantly explained only the active dimension of consumer ethical beliefs. (shrink)

Using an international sample of banks, we study how differences in religiosity across countries affect earnings management. Given that religiosity is a major source of morality and ethical behavior, it may reduce excessive risk taking and act as deterrence for earnings manipulations. Therefore, we predict lower earnings management in societies that have higher religiosity. Consistent with expectations, our cross-country analysis indicates that religiosity is negatively related to income-increasing earnings management for loss-avoidance and just-meeting-or-beating prior year’s earnings. We also find that (...) religiosity reduces income-increasing earnings management through abnormal loan loss provisions. In additional tests, we document that religiosity increases the information value of bank earnings, with both earnings persistence and cash flow predictability being enhanced by higher religiosity. For the crisis period analysis, our evidence shows that banks in countries with higher religiosity exhibit lower probability of reporting asset deterioration and lower probability of having poor performance. (shrink)

For a sample comprising 36,105 U.S. firm-year observations from 1985 to 2008, we find that firms located in more religious counties enjoy cheaper equity financing costs. This result is robust to a battery of sensitivity tests, including alternative assumptions and model specifications, additional controls for noise in analyst forecasts, and various approaches to addressing endogeneity. In another set of tests, we find that the equity pricing role that religion plays comes predominantly from Mainline Protestants. We also document that the effect (...) of religiosity on firms’ cost of equity capital is larger for firms (periods) lacking alternative monitoring (regulation) mechanisms as measured by lower institutional ownership (the pre-SOX era), implying that religion plays a corporate governance role. Finally, we find that the importance of religion to equity pricing is concentrated in firms that suffer lower visibility, which tend to be more sensitive to local social and economic factors. By examining the links between religiosity and valuation at the firm level, we provide strong, robust evidence supporting the perspective that religion facilitates economic development. (shrink)

To commemorate 40 years since the founding of the Journal of Business Ethics, the editors in chief of the journal have invited the editors to provide commentaries on the future of business ethics. This essay comprises a selection of commentaries aimed at creating dialogue around the theme Technology, Megatrends and Work. Of all the profound changes in business, technology is perhaps the most ubiquitous. There is not a facet of our lives unaffected by internet technologies and artificial intelligence. The Journal (...) of Business Ethics established a dedicated section that focuses on Technology and Business Ethics, yet issues related to this phenomenon run right through all the sections. Kirsten Martin, editor of the Technology and Business Ethics section, joins our interim social media editor, Hannah Trittin-UIbrich, to advance a human-centric approach to the development and application of digital technologies that places Business Ethics at centre of the analysis. For Shuili Du, technology is the defining condition for a new era of Corporate Social Responsibility—CSR 3.0—which she defines as “a company’s socially responsible strategies and practices that deal with key ethical and socio-technical issues associated with AI and related technologies on the one hand and leverage the power of AI and related technologies to tackle social and environmental problems on the other hand.” It is not just technologies that are a determining feature of our lives but technology companies, an argument made by Glen Whelan as he examines Big Business and the need for a Big Business Ethics as we try to understand the impact of Big Tech on our post-work world. Indeed, as noted by Ernesto Noronha and Premilla D’Cruz, megatrends in addition to advancement in technologies, namely globalization, the greening of economies, and changes in demographics and migration, are shaping the future for workers in ways previously unimaginable. Contributing to this important debate, Praveen Parboteeah considers the influence of another longstanding but oft overlooked megatrend, the role of religion in the workplace. Given the enormity of the influence of technology and other megatrends in our world, it is not surprising that this essay introduces ground-breaking ideas that speak to the future of business ethics research. (shrink)

This study investigates how Islamic religiosity affects ethical decision making. The study was conducted in the Malaysian workforce across the public and private sectors with a sample of N = 160. Five factors are tested to determine if they mediate the relationship between Islamic religiosity and ethical intention. These factors are: perceived importance of the ethical issue, moral judgment, ego strength, spiritual intention, and conscience. A parallel mediation design was chosen to test six hypotheses derived from the theoretical literature. The (...) findings indicate that only the variable conscience mediates the relationship between religiosity and ethical intention. This study gives insights into the role of Islam in ethical decision-making, especially for Muslims in Malaysia, an area which has limited exploration. More generally, it contributes to the ongoing discussion in the literature on the relationship between religiosity and ethical decision-making. (shrink)

Few studies examine plagiarism in a Middle Eastern context, specifically from the perspectives of preservice teachers. As future gatekeepers of academic integrity, preservice teachers need to understand plagiarism. This study surveyed 128 female preservice teachers in one university in the Gulf Cooperation Council (GCC) countries. The survey explores preservice teachers regarding their understandings and reasons for academic plagiarism and their responses to particular scenarios. Findings indicate that preservice teachers have a thorough comprehension of plagiarism and suggest a lack of knowledge (...) of citing sources, weak writing skills, a lack of time, and not knowing the research process as reasons for plagiarism. Informants' responses to six scenarios are presented to illustrate their perspectives further. Discussion addresses language and cultural issues to contextualize the study. (shrink)

Based on prior studies which show that firms headquartered in high religiosity counties exhibit high level of business ethics, this study examines whether these firms are associated with low audit risk, and therefore low audit fees. In investigating this relationship, we draw a distinction between intrinsic and extrinsic religiosity of auditees. Using a sample of 25,872 U.S. observations from 2003 to 2012, we find that intrinsic religiosity of the auditees is associated with low audit fees after controlling for auditee extrinsic (...) religiosity, social capital, firm-specific characteristics, and county-specific characteristics. Furthermore, we find that external monitoring weakens the negative relationship between auditee intrinsic religiosity and audit fees. Finally, we conclude that the effect of auditor religiosity on audit fees is a regional effect that may affect the relationship between audit fees and auditee intrinsic religiosity. (shrink)

The emergence and scope of personal and collective efforts to integrate faith into workplaces is a social movement that includes and extends beyond personal ethics. This paper discusses the development of The Integration Profile Faith and Work Integration Scale, which is designed to measure the multidimensional nature of faith expressions within workplace settings. TIP measures the manifestations of faith, religion, and spirituality at the individual level. Earlier research theorized that individuals tend to manifest or live out their faith in one (...) of four ways ; TIP expands this to assess eight sub-orientations, nested within the four main manifestations of faith–work integration. The development of the 24-item TIP scale involved exploratory analyses in a sample of 512 employees of a for-profit palliative care organization and a hierarchical confirmatory factor analysis in a sample of 4463 employees in an American multinational food processing organization. Additional analyses were conducted in a third sample of 266 working adults to assess the convergent and discriminant validity of the eight sub-orientations with other faith variables as well as associations with work outcomes. (shrink)

Over the past two decades, Victor and Cullen's (Adm Sci Q 33:101-125, 1988) typology of ethical climates has been employed by many academics in research on issues of ethical climates. However, little is known about how managerial practices such as communication and empowerment influence ethical climates, especially from a functional perspective. The current study used a survey of employees from Taiwan's top 100 patent-owning companies to examine how communication and empowerment affect organizational ethical climates. The results confirm the relationship between (...) these two managerial practices and organizational ethical climates. We discuss our results and their implications for both future academic research and practice. (shrink)

The issue of communicated accountability is particularly important in Faith-Based Charity Organisations as the donated funds and use of those funds are often meant to fulfil religious obligations for the well-being of society. Integrating Stewart’s (1984) ladder of accountability with the Statement of Recommended Practice guidance for charities, this paper examines communicated accountability practices of Muslim and Christian Charity Organisations in England and Wales. Our content analysis results indicate communicated accountability to be generally limited, focusing on providing basic descriptive information (...) rather than judgement-based information. Our interviews with trustees and preparers of Trustee Annual Reports in Muslim Charity Organisations identified the reasons being due to high donor trust and consequently weak demand by stakeholders for the latter type of information, as well as internal organisational issues related to the organisational structure and culture, lack of internal professional expertise and high accountability cost. (shrink)

In contrast to the conventional fund management industry with a profit-oriented logic based on risk and return, ethical and faith-based funds should follow the religious principles of their investment-style philosophy. Islamic funds should obey the theological teachings of the primary sources of Islam, the Quran and Sunnah, as stakeholders expect these religious teachings to influence the investment decisions of fund managers. In practice, Islamic fund managers use Accounting and Auditing Organization for Islamic Financial Institutions ’s screening criteria, based on secondary (...) sources of Islam, which allow investments that are only partially halal to be included in their portfolios. This study finds that a more religious logic in screening practices, although impairing diversification, does not necessarily harm performance. Thus, Islamic investment funds, and the wider ethical fund management industry, should, and could, adopt stricter screening criteria that match their investment mandates and bring more ethical business practices to the industry. (shrink)

Despite the prevalent role of guanxi in conducting business in Chinese, it is unclear whether interpersonal guanxi fosters interfirm trust. Taking a contingency approach, this study examines how institutional (government–market relationship and Buddhism influence) and individual (relative role performance and the span of partner control) factors moderate the association between interpersonal guanxi and interfirm trust. Based on a paired survey between salespersons and sales managers and two secondary datasets, this study finds that interpersonal guanxi is positively associated with interfirm trust. (...) Moreover, this positive effect is stronger when firms operate in regions with strong government–market relationships and strong Buddhism influence. In addition, the positive relationship is weaker when guanxi resides in boundary spanners who have relatively high role performance, but becomes stronger when boundary spanners have a broad span of partner control. These findings highlight the situations in which guanxi at an interpersonal level is more or less likely to foster interfirm trust. (shrink)

This study involved using a mixed method research design to examine the moral philosophy difference between the ethical decision-making process of CEOs in U.S.-led and non-U.S.-led within the luxury goods industry. The study employed a MANOVA to compare the ethical profiles between the two leader types and a phenomenological qualitative process to locate themes that give indication as to the compatibility of the luxury strategy values and practices with the principles and concepts of responsible leadership and conscious capitalism. As the (...) luxury goods industry is facing the first slowdown since 2000, pressure to achieve sales targets in the U.S. to make up for losses in other markets will place these CEOs under extreme pressure from their headquarters. These leaders must possess the ethical decision-making capability to balance legal and moral dilemmas unique to multinational luxury goods organizations while delivering business results in a challenging environment. Results of the study show no evidence of difference in the ethical decision-making profiles between the two groups of leaders. The themes and emergent findings resulting from the qualitative analysis indicate a profound incompatibility between the values informing decision-makers using the luxury strategy and those employed by leaders operating within the principles and parameters of responsible leadership and conscious capitalism. Recommendations for future research include replicating the study with a larger sample, within a different geographic region or comparing leaders using the luxury strategy to those using conscious capitalism. (shrink)

Various studies on the impact of religiousness on consumer ethics have produced mixed results and suggested further clarification on the issue. Therefore, this article examines the effect of religiousness, materialism, and long-term orientation on consumer ethics in Indonesia. The results from 356 respondents in Indonesia, the largest Muslim population in the world, showed that intrinsic religiousness positively affected consumer ethics, while extrinsic social religiousness negatively affected consumer ethics. However, extrinsic personal religiousness did not affect consumer ethical beliefs dimensions. Unlike other (...) studies in developed countries, materialism and long-term orientation influenced only a few of the consumer ethical beliefs dimensions in this study. To date, the study is one of the first empirical studies to explore the impact of religiousness on consumer ethics in Indonesia. The study contributes to the debate on the impact of religiousness on consumer ethics and can assist managers and public policymakers in their effort to mitigate unethical consumer activities in Indonesia. (shrink)

The extent and mechanisms through which religion intertwines with decision-making processes in family firms remain inadequately understood. Family firm owners, driven by their commitment to ethical business practices and the safeguarding of their socioemotional wealth, actively seek cues to inform their decision-making processes. This research demonstrates that, among these guiding cues, top-level executives’ perceived religiosity emerges as a relevant factor. Building upon the socioemotional wealth perspective and conducting a longitudinal analysis based on listed family firms between 2009 and 2018, our (...) findings reveal a positive association between family voting rights and the presence of board members perceived to be religious. Furthermore, this relationship is less pronounced if family firms operate in industries with high research and development intensity. Our study confirms that boards with high shares of religiously perceived directors are positively associated with the appointment of chief executive officers perceived to be religious during succession events. We thereby present a unique perspective that acknowledges perceived religiosity as a micro-level constituent shaping board membership and successor selection. This investigation captures the intricate interplay between religion and family firms under a socioemotional wealth umbrella, offering important insights to the family business ethics discourse. Our research also offers practical implications for board and leadership diversity management in family firms. (shrink)

Substantial literature has investigated the relationship between religiosity and ethical decision-making (the what), while lesser consideration has been given to exploring why decisions are made. As part of a larger study, this paper aims to delve beyond the descriptive relationship between religiosity and ethical decision-making of Muslim employees in Malaysia. We analyse the qualitative data received from 160 employees by using thematic analysis. Our results reveal that, while religious values are important for Muslims in Malaysia, there are other factors that (...) are also pertinent when making decisions at work, namely the organization’s interest and the context of the decision. We also found that individuals’ reasoning based on Islamic teachings is embedded in rules and regulations, which suggests lower levels of ethical reasoning. This study extends the current understanding of the processes of ethical reasoning in highly religious contexts by individuals at their workplace. Implications and suggestions for future research are discussed. (shrink)

We examine the role of religious identity in promoting strategic renewal in privately held founder family firms. Religious identity in these firms refers to their collective sense of being that reflects their founders’ and owner family members’ espoused religious values and beliefs, thereby distinguishing themselves from others in what is central, distinct, and enduring about their organization. We propose that such a religious identity determines family firms’ spiritual capital, which influences strategic renewal activities such as conflict resolution and resource allocation. (...) Specifically, we argue that spiritual capital can be a double-edged sword when family firms pursue strategic renewal. We discuss the implications of our work for future research. (shrink)

We extend research on the effects of local audit office characteristics on audit quality by investigating whether audit offices in highly religious U.S. Metropolitan Statistical Areas exhibit going concern decisions that reflect heightened professional skepticism relative to audit offices in less religious MSAs. Prior research links religiosity to risk aversion and ethical development and suggests audit practice offices in more religious MSAs are more likely to issue going concern opinions because they will assess the effects of mitigating factors in a (...) more skeptical manner. Our results indicate that audit practice offices located in highly religious MSAs are more likely to issue going concern audit opinions, consistent with a more skeptical assessment of mitigating factors. Additional tests provide direct evidence consistent with the argument that these audit offices are more risk averse in issuing going concern opinions. Our findings are relevant to auditors, audit clients, researchers, and regulators. (shrink)

In China, Buddhism and Taoism are two major religions. Using a sample of 10,363 firm-year observations from the Chinese stock market for the period of 2001–2010, I provide strong and robust evidence that religion (i.e., Buddhism and Taoism on the whole) is significantly negatively associated with owner-manager agency costs. In particular, using firm-level religion data measured by the number of religious sites within a radius of certain distance around a listed firm’s registered address, I find that religion is significantly negatively (...) (positively) associated with expense ratio (asset utilization ratio), the positive (reverse) proxy for owner-manager agency costs. This finding is consistent with the following view: religiosity has remarkable effects on the way how an individual thinks and behaves, and thereof can curb managers from unethical business practices. Moreover, my findings suggest that the negative association between religion and owner-manager agency costs is attenuated for firms with strong external monitoring mechanisms such as higher Marketization and high-quality auditors. Furthermore, after separating Buddhism from Taoism, my finding indicates that above conclusions are only available for Buddhism, suggesting that different religions may have asymmetric influence on owner-manager agency costs. Above results are robust to various measures of religiosity and a variety of robustness checks. (shrink)

This study examined whether having attended a public, private or religious affiliated grade and/or high school influenced a college student’s ethical decision making process. We also examined whether having taken an ethics course in college influences a student’s ethical decision making process. Our sample included 508 accounting students (237 men and 271 women) from Albania, Ecuador, Ireland and the United States. Our analyses indicated no differences in ethical decision making that associated with either grade-or-high-school education. While our data showed no (...) difference in the reported attitudes between students from Ecuador and the United States after controlling for social desirability response bias, we found significant differences between the attitudes students from the United States and students from both Albania and Ireland. While gender was also significant for six of our seven scenarios, social desirability response bias was significant in all of our scenarios. (shrink)

In this paper, we examine the relationship between Christian religiosity, attitudes towards corporate social responsibility, and CSR behavior of executives. We distinguish four types of CSR attitudes and five types of CSR behavior. Based on empirical research conducted among 473 Dutch executives, we find that CSR attitudes mediate the influence of religiosity on CSR behavior. Intrinsic religiosity positively affects the ethical CSR attitude and negatively affects the financial CSR attitude, whereas extrinsic religiosity stimulates the philanthropic CSR attitude. Financial, ethical, and (...) philanthropic CSR attitudes significantly affect some types of CSR behaviors. However, because religiosity has opposing effects on the three attitudes, the joint mediation effect of the three attitudes is negligible. Furthermore, we find a direct negative influence of intrinsic religiosity on diversity and a direct positive influence on charity. (shrink)

Prior studies suggest that firms headquartered in areas with strong religious social norms have higher ethical standards. In this study, we examine whether the ethical standards associated with local religious norms influence the M&A announcement returns. We document that the M&A announcement returns of acquirer firms increase with the strength of religious social norms in the area surrounding firms’ headquarters. We also document that the relationship is attenuated when acquirer firms have strong corporate social responsibility credentials, is amplified when public (...) trust that firms act in the best interest of stakeholders suffers a negative shock and when the M&A deal has greater economic significance for the acquirer, and manifests predominantly in the lower tail of the distribution of M&A returns. Our findings are consistent with investor assessments of firms’ ethical standards driving the relationship between local religious social norms and M&A announcement returns. We find no evidence for the competing explanation—that investor assessments of firms’ risk preferences drive the documented relationship. (shrink)

Management practices prevailing in business organizations receive considerable criticism for often treating the employee as one of many resources or an instrument to achieve the organization’s goals. As employee reification has so far been largely investigated in the scientific literature from the perspective of neo-Marxist approach, this article seeks to broaden the discussion by showing how social teaching of the Catholic Church can serve to solve the problem of reification. Although there is no doubt that universal norms of business ethics (...) can serve as protection of the employee dignity from the individual’s reification tendencies, moral relativism operating in postmodern life tends to call into question any universal moral norms. Therefore, this article discusses how responses to challenges posed by moral relativism can be obtained by applying methodological approaches proposed by the neo-Marxist classics Lukács, Honneth, and Catholic Social Teaching. The similarities and differences of these approaches are identified, and attention is also drawn to the possibilities and limitations of their application in business ethics practice. It is also demonstrated how understanding of human dignity and the attitude to a virtue, offered by social teaching of the Catholic Church, broadens the discussion on addressing the dangers posed by the person’s reification in organizations. (shrink)

This inter‐temporal study compares the ethical attitudes of business students at three points: in 2001, when the economy was relatively healthy; in 2009, near the beginning of the current recession; and in 2010, when the economy was worse. Ethical attitudes were measured by replicating a popular survey consisting of 25 ethically charged vignettes. The survey measures willingness to engage in white‐collar crime behaviors, some clearly illegal; others marginally unethical. Findings show an increase in tolerance for clearly illegal behaviors from 2001 (...) to 2009 and an increase in tolerance for an even broader array of unethical acts from 2009 to 2010. As compared with 2001 respondents, 2009 respondents were more tolerant of seriously illegal behaviors but less tolerant of marginally unethical ones. In 2010, respondents were more accepting of both kinds of unethical behaviors. The results also suggest that the change in ethical attitudes from 2009 to 2010 was larger than the average annual change in ethics from 2001 to 2009. These findings are discussed within the framework of classical strain theory, Agnew's General Strain Theory, and the legitimacy of social institutions. (shrink)

To study how religiosity affects family business goals, we merge literatures on goal setting, temporal orientation, and family business to argue that family business goals can be distinguished into short-term and long-term orientations and propose that religiosity affects both orientations, but to varying degrees. Drawing on a sample of private U.S. family businesses and applying partial least squares structural equations modeling, we find tentative support that religiosity has a stronger positive effect on long-term goal orientation than on short-term goal orientation. (...) We discuss implications for theory development and future research involving religiosity and family business goals. (shrink)

This study develops and tests an integrated model that explains how Schwartz’s higher order personal values of Openness to Change, Conservation, Self-Transcendence and Self-Enhancement influence the ethical behavior of accountants. The study further explores the influence of ethics training, gender and religiosity on ethical behavior. A survey instrument was administered to 252 accounting students and the findings reveal that some of the higher order personal values are significant in explaining the ethical behavior of accounting students. The findings also reveal that (...) gender and ethical training influence ethical behavior, and that effect of the personal value Self-Transcendence differs depending on participant gender and also religiosity. The implications of the findings are discussed. (shrink)

This study examines whether religiosity is associated with the valuation multiples investors assign to fair-valued assets that are susceptible to managerial bias. Using a sample of U.S. banking firms, I find that the value relevance of such assets is higher for firms located in more religious counties than it is for firms located in less religious counties. Moreover, I find that this result is more consistent with the ethicality trait than the risk aversion trait of more religious individuals. Additional tests (...) show that the positive association between religiosity and value relevance of fair-valued assets is limited to firms with high fair value exposure, and it is stronger for firms with lower audit quality, lower institutional ownership, and lower analyst following. The results of this study suggest that investors perceive the role played by religiosity, in particular ethicality, in curbing managerial accounting biases and price accounting estimates accordingly. (shrink)