Monetary intelligence theory asserts that individuals apply their money attitude to frame critical concerns in the context and strategically select certain options to achieve financial goals and ultimate happiness. This study explores the dark side of monetary Intelligence and behavioral economics—dishonesty. Dishonesty, a risky prospect, involves cost–benefit analysis of self-interest. We frame good or bad barrels in the environmental context as a proxy of high or low probability of getting caught for dishonesty, respectively. We theorize: The magnitude and intensity of (...) the relationship between love of money and dishonest prospect may reveal how individuals frame dishonesty in the context of two levels of subjective norm—perceived corporate ethical values at the micro-level and Corruption Perceptions Index at the macro-level, collected from multiple sources. Based on 6382 managers in 31 geopolitical entities across six continents, our cross-level three-way interaction effect illustrates: As expected, managers in good barrels, mixed barrels, and bad barrels display low, medium, and high magnitude of dishonesty, respectively. With high CEV, the intensity is the same across cultures. With low CEV, the intensity of dishonesty is the highest in high CPI entities —the Enron Effect, but the lowest in low CPI entities. CPI has a strong impact on the magnitude of dishonesty, whereas CEV has a strong impact on the intensity of dishonesty. We demonstrate dishonesty in light of monetary values and two frames of social norm, revealing critical implications to the field of behavioral economics and business ethics. (shrink)

As a result of numerous, highly publicized, ethical breaches, firms and their agents are under ongoing scrutiny. In an attempt to improve both their image and their ethical performance, some firms have adopted ethical codes of conduct. Past research investigating the effects of ethical codes of conduct on behavior and ethical attitudes has yielded mixed results. In this study, we again take up the question of the effect of ethical codes on ethical attitudes and find strong evidence to suggest that (...) business professionals employed at firms with ethical codes of conduct are significantly less accepting of ethically questionable behavior toward most stakeholders. One notable exception relates to ethical actions toward customers. (shrink)

This article theoretically proposes and empirically verifies an understudied issue in the business ethics and corporate social responsibility literature—how moral degradation in a society influences the relationship between BE or CSR and firm performance. Building on strategic choice theory, we propose that both BE and CSR become more important in enhancing business success when the perceived MD is heightened. Our analysis of 300 firms operating in China statistically confirms our hypotheses: first, under high MD, firms’ engagement in CSR results in (...) higher corporate legitimacy and competitive advantage, and second, their adherence to ethical business codes leads to higher corporate legitimacy. We conclude the article by outlining the implications for both theory and practice. (shrink)

Research suggests that attitudes guide individuals’ thinking and actions. In this study, we explore the monetary intelligence construct and investigate the relationships between a formative model of money attitudes involving affective, behavioral, and cognitive components and several sets of outcome variables—unethical intentions, intrinsic and extrinsic job satisfaction, and coping strategies. Based on 515 managers in the Republic of Macedonia, we test our model for the whole sample and also cross sector and gender. Managers’ negative stewardship behavior and positive cognitive meaning (...) of money define MI which, in turn, is related to unethical intentions. Positive cognition in the public sector and poor stewardship behavior in the private sector contribute to unethical intentions, respectively. Good stewards have higher intrinsic and lower extrinsic job satisfaction, those in the private sector, in particular. Affective motive and stewardship behavior are related to their stronger “approach” coping strategies and weaker “avoidance” coping strategies. Affective motive and stewardship behavior contribute to coping responses for managers in the public and private sectors, respectively. Further, the relationship between stewardship behavior and coping mechanisms exists for females, but not for males. We demonstrate that MI, a type of social intelligence, allows individuals to monitor their own emotions, behaviors, and cognitions and guides their thinking and actions. (shrink)

In this study, we developed a model of unethical behavior intentions, collected data from managers of the private (n = 208) and the public (n = 307) sectors in the Republic of Macedonia, and tested our model across these two sectors. Results suggested that for both sectors, unethical behavior intentions were not related to the love of money and corporate ethical values, whereas irritation was negatively related to life satisfaction. Moreover, corporate ethical values were related to life satisfaction for the (...) private sector only, whereas the love of money and unethical behavior intentions were related to irritation for the public sector only. Managers in the private sector had higher corporate ethical values, lower unethical behavior intentions, lower irritation, and higher life satisfaction than those in the public sector. There was no difference in the love of money. There were more bad apples in the public sector (34.85%) than in the private sector (23.56%). The strongest factor of unethical behavior intentions in the private and the public sectors was theft and corruption, respectively. Finally, for the culture-free (etic) model, the love of money was positively related to irritation. Corporate ethical values had a positive "double-whammy" effect: reducing irritation and enhancing life satisfaction. Unethical behavior intentions were positively related to irritation (a mediator), which was negatively related to life satisfaction. Our theory provides new insights regarding doing business in the Republic of Macedonia. (shrink)

This study focuses on the reliability and validation of the Chinese version of the Moral Attentiveness Scale. Factor analysis confirmed that the scale includes two factors: perceptual moral attentiveness and reflective moral attentiveness. Moral attentiveness is negatively correlated with normlessness and positively associated with internalization and symbolization, moral identity, and other academic dishonesty behaviors. Reflective moral attentiveness moderated the relationship between formalism and unethical decision making. All results showed that the Chinese version of the Moral Attentiveness Scale has satisfactory psychometric (...) properties and is a valid and reliable measurement of moral attentiveness in the Chinese population. (shrink)

The aim of this literature-based study is to explore the influence of socio-cultural factors on business ethics in post-soviet countries with dissimilar cultural contexts. Specifically, this article seeks to identify and compare contextual influences on informal norms of morality in business in transitional post-soviet societies. In order to pursue this investigation, the countries of Belarus and Estonia were identified as being among the most noteworthy examples of culturally different post-soviet countries in transition. The study reveals contradictory manifestations of mixtures of (...) business norms in both Estonia and Belarus, which are conditioned by the merger of an autocratic bureaucratic soviet system with more participative and empowering forms of western management. The most persistent changes relate to moves from patriarchal and paternalistic types of relationship and low work motivation. The significance of these differences, which include nationality and religious legacies, will almost inevitably be overlooked should the countries be placed under the general umbrella of'former soviet states' when considering business ethics in these contexts. (shrink)

Located at the crossroads of the Eastern and Western world, Turkey today is characterized by a demographically versatile and modernizing society as well as a rapidly developing economy. Currently, the country is negotiating its accession to the European Union. This article yields some factual grounding into the ongoing value-related debate concerning Turkey's potential EU-membership. It describes a mixed-methodology study on moral reasoning in Austria and Turkey. In this study, the arguments given by individuals when evaluating ethically problematic situations in business (...) were compared. Although there were major consistencies, a number of differences were found. These differences, however, were not in the substance of arguments used but in their relative frequency. Overall, our findings suggest that young, well-educated urban individuals from Western Christian and Eastern Islamic countries are highly consistent in their moral reasoning. (shrink)

In this paper, we present and test a theory of how political connectedness affects corporate governance and productive efficiency of firms. Our model predicts that underdeveloped democratic institutions that do not punish political corruption result in political connectedness of firms that in turn has a negative effect on performance. We test this prediction on an almost complete population of Slovenian joint-stock companies with 100 or more employees. Using the data on supervisory board structure, together with balance sheet and income statement (...) data for 2000–2010, we show that a higher share of politically connected supervisory board members leads to lower productivity. (shrink)

Studies have shown ethics education has not systematically improved the moral reasoning of business students and professionals and, therefore, its effectiveness should be seen as deeply questionable. Business ethics education has limited effect, in part, because it rests on rationalistic traditions within normative ethics, business theory, and cognitive psychology. Emphasis is usually placed on student’s rationally thinking about issues as a way of improving their critical analysis and reasoning skills. Yet by focusing primarily on its cognitive dimension, ethics education has (...) tended to underdetermine the importance of social interaction in moral development. As an alternative to traditional business ethics education, using the work of the Russian psychologist Lev Vygotsky, I argue, that peer influence through a dialogical process is a better way to enhance and improve the moral reasoning and judgement of individuals. More specifically, small-group dialogue with peers encourages deep reflection about business dilemmas and has a direct influence on how one thinks about ethics. (shrink)

Based on theory of planned behavior, we develop a theoretical model involving love of money (LOM), job satisfaction (attitude), coping strategies/responses (perceived behavioral control), work environment (subjective norm), and work-related behavioral intentions (behavioral intention). We tested this model using job satisfaction as a mediator and sector (public versus private), personal character (good apples versus bad apples), gender, and income as moderators in a sample of 515 employees and their managers in the Republic of Macedonia. For the whole sample, both coping (...) strategies and helpful work environment were related to high job satisfaction. The relationship between work environment and job satisfaction was the strongest link in all subsequent analyses. High LOM is associated with unfavorable work environment for employees in the private sectors and people with low income and is positively associated with coping strategies for bad apples. A favorable work environment was related to less corrupt intent for people in the public sectors, good apples, and with low income, but not for their counterparts. Coping strategies were related to high job satisfaction for males, but not for females. Our counterintuitive results showed that bad apples’ high LOM was related to low corrupt intent. Our theoretical model sheds new light and provides novel theoretical, empirical, and practical implications to Macedonian managers’ corrupt intent. (shrink)