Disparity in consumer ethics reflects cultural variations; these are differences in the collective programming of the mind that distinguishes one culture from another. This study explores the differences in consumer ethics across cultural dimensions using Hofstede's (in Culture's consequences: international differences in work-related values, Sage, Beverly Hills, 1980) model (collectivism, masculinity, power distance, and uncertainty avoidance) and Muncy and Vitell (in J Bus Res 24(4): 297-311, 1992) consumer ethics model (i.e., illegal, active, passive, and no harm). This is the first (...) study to empirically explore consumer ethics using these two major constructs. Seven hundred sixty one African American consumers were used to test the four major hypotheses developed in this study. Current research has revealed that there are significant differences in ethics between consumers who score high and consumers who score low on Hofstede's four cultural dimensions. In general, this research revealed that consumers who score high on collectivism, high on uncertainty avoidance, low on masculinity, and low on power distance scales reject questionable activities more than consumers who score low on collectivism, low on uncertainty avoidance, high on masculinity, and high on power distance. This study should prove valuable to international marketers because the Hofstede cultural model allows managers to identify differences in consumer ethics across different cultures and thus provides a theoretical base for designing effective marketing strategies. (shrink)

Corporate social responsibility has become a very common buzz word in the field of marketing since many years. This empirical paper assesses the attitude of devout and nondevout customers towards CSR in the context of a religious society. As making clear distinction between devout and nondevout customers may have associated measurement problems in a single-religion-dominated country, this paper initiates the discussion of peculiarity between two important religiosity measures, that is, observation based and solicited. A hypothetical story board with embedded CSR (...) information in a scenario supporting a religious cause is presented to the highly and less religious subjects in text written form. The scenario is followed by questions pertaining to their religious behaviors and attitude towards the company in question. The results illustrate that highly religious customers show slightly greater preference towards CSR as compared to less religious customers and the observation-based religiosity measure has a tendency of more reliability if the researchers have deep cultural and religious know-how about a specific society. Results of this study might help international marketers about choosing a particular cause under its umbrella CSR activities particularly when entering in a highly religious society dominated by a single religion. (shrink)

In this study, we aim to investigate how multinational corporations (MNCs) balance ethical pressures from both the home and host countries. Drawing on theories from institutional theory, international business, and business ethics, we build a theoretical framework to explain the ethical behavior of MNCs. We apply the institutional logic concept to examine how MNCs with established logics and principles that have grown in the home country respond to local ethical expectations in the host country. We differentiate the core values from (...) the peripheral components of a MNCs institutional logic and propose that a MNC will pursue distinctive ethical strategies under different scenarios and choose the "right" configuration of core values and peripheral components that align with institutional environment in host countries. (shrink)

This research examines the ethical orientations of students (ethical idealism, ethical relativism and Machiavellianism) towards their attitude to plagiarize. It also examines the moderating effect of religious orientation on the relationship of the independent variables toward students’ attitude towards plagiarism. Data was collected from 160 business diploma and undergraduate students from a local private college and a local public university in Malaysia. Results from the hierarchical regression analysis showed that ethical relativism and Machiavellianism had a positive relationship with students’ attitude (...) towards plagiarism whilst ethical idealism was negatively related to students’ attitude towards plagiarism. Religious orientation was found to have no moderating effect on the relationship between the three independent variables: ethical idealism, ethical relativism and Machiavellianism and the dependent variable, students’ attitude towards plagiarism. (shrink)

This study examines the impact of trust and a national culture of secretiveness on the number of bank relationships per firm. We hypothesize that the degree of openness of a firm and trust between economic agents may influence the willingness of the firm to release sensitive information to its lenders, as well as the decision between maintaining single or multiple bank relationships. Using a sample of over 8000 non-financial firms operating in 12 countries from the eurozone we provide evidence that (...) a national culture of secrecy enhances the number of bank relationships, while trust has the opposite effect. Results are robust to the use of various estimation techniques, alternative definitions of secrecy and trust, controls for firm-level and country-level characteristics, and instrumental variables. The main implication of this finding is that the financial decisions of firms cannot be effectively examined without considering deep-rooted national cultural elements. We also find that the results are mainly driven by small and medium enterprises, implying that the higher informational opaqueness of these firms enhances the role of secrecy and trust. (shrink)

Family values are argued to enable ethical family business conduct. However, how these arise, evolve, and how family leaders articulate them is less understood. Using an ‘identity work’ approach, this paper finds that the values underpinning identity work: arise from multiple sources, evolve in tandem with the context; and, that their articulation is relational and aspirational, rather than merely historical. Prior research mostly understood family values as rooted in the past and relatively stable, but our rhetorical analysis unlocks a more (...) dynamic and promising research direction advancing family business ethics. (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)

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)

This study examines the varying roles of power, status, and national culture in unethical decision-making. Most research on unethical behavior in organizations is grounded in Western societies; empirical comparative studies of the antecedents of unethical behavior across nations are rare. The authors conduct this comparative study using scenario studies with four conditions in both China and Canada. The results demonstrate that power is positively related to unethical decision-making in both countries. Status has a positive effect on unethical decision-making and facilitates (...) the unethical decisions of Canadian participants who have high power but not Chinese participants who have high power. To explicate participants’ unethical decision-making rationales, the authors ask participants to justify their unethical decisions; the results reveal that Chinese participants are more likely to cite position differences, whereas Canadian participants are more likely to cite work effort and personal abilities. These findings expand theoretical research on the relationship between social hierarchy and unethical decision-making and provide practical insights on unethical behavior in organizations. (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)

Prior literature has demonstrated that religiosity is associated with a reduced acceptance of unethical business practices and financial reporting irregularities. On this premise, we examine whether religiosity, conceptualized as the degree of adherence to religious norms in the geographical area where a firm’s headquarters is located, has an impact on audit firms’ pricing decisions in the US. We measure the intensity of religiosity by the number of adherents relative to the total population in a county and demonstrate that increased religious (...) adherence operates as an institutionalized monitoring mechanism that decreases audit risk and audit costs, which is, in turn, reflected in reduced audit pricing. Additional tests suggest that the impact of religiosity on auditors’ pricing decisions is not differentiated by levels of auditor expertise but that audit fees are determined by an auditor’s relative location in a market sector and religious adherence. We conclude that religious adherence reduces the need for shareholders to bear the costs of monitoring agents, a finding which could be of importance for market participants and regulators. (shrink)

We extend the literature by providing evidence that a cultural variable, intrinsic Islamic religiosity is important in understanding auditors’ judgement in the Islamic context of Pakistan. The intrinsic Islamic religiosity theoretical construct examined is Islamic Worldview which represents deeply held enduring and stable values which are likely to be dominant in influencing professionals’ judgements. Moreover, theoretical underpinning and empirical evidence in social psychology and organisational behaviour have established the critical role of intrinsic religiosity in influencing behaviour. Our first objective is (...) to examine whether IW impacts auditors’ judgements in the context of their acceptance of uncorroborated low-reliability client-provided evidence. Understanding the potential impact of cultural factors on auditors’ acceptance of client-provided information is an essential factor in improving audit quality. Our findings support the hypothesis that auditors with high IW scores are more likely to accept uncorroborated low-reliability client-provided evidence. Our second objective is to examine the relationship between IW and auditors’ preference for exercising more or less judgements. Examining this topic is important because auditing is a judgement-based process: auditors’ judgements determine audit quality and, by extension, the quality of associated financial reports. Our findings provide overall support for the hypothesis that auditors with high IW scores have a preference for exercising more judgement. Our findings have implications for global and national standard setters, regulators, practitioners, and researchers. The results are also relevant to global audit firms and their affiliates, particularly networks operating in Islamic countries, in ensuring global consistency of audits. (shrink)

It is widely accepted that quid pro quo or favoritism exists in bookbuilding IPOs where the securities underwriter has share allocation discretion, and that auctioned IPOs should be largely free from quid pro quo because the underwriter does not have share allocation discretion. Using proprietary data on IPO auctions from China and a regulatory regime change on share allocation, we show that when the share allocation rule shifts from pro rata to lottery draw (that makes quid pro quo valuable to (...) a bidder), mutual fund families having stronger pre-shift brokerage commission ties with the underwriter submit bids later, place more strategic bids, have more bids qualified for the allocation round, and are more likely to receive share allocation than other fund families. These patterns are not apparent in fund families that possess a robust business culture. The evidence is consistent with the existence of quid pro quo in IPO auctions facilitated by the underwriter’s leakage of confidential bidding information in some fund family and underwriter pairs. This unethical practice not only creates conflicts of interest, jeopardizes fair play, but also discourages information production and affects accurate valuation. (shrink)