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)

Ethical leadership matters in the context of organizational change due to the need for followers to trust the integrity of their leaders. Yet, there have been no studies investigating ethical leadership and organizational change. To fill this gap, we introduce a model of the moderating role of involvement in change. Organizational change and involvement in change are proposed as context-level moderators in the relationships of ethical leadership and work-related attitudes and performance. We employ a sample of 199 supervisor–subordinate pairs from (...) a wide variety of organizations. Results support a three-way interaction (ethical leadership, organizational change, and involvement in change) for performance and OCBs. Our results have important implications for organizational change since ethical leadership appears to complement follower involvement when change is happening. (shrink)

Current evidence supports how deviant behavior can be predicted by sociodemographic factors, subjective well-being, and perceived religiousness. However, there is limited research when it concerns specificity such as Muslims justifying deviant behavior, and their subjective well-being and perceived religiousness within a single study. Most studies used Christian population or using a non-denominational approach. Therefore, in this study, data from World Value Survey Wave 6 was used to examine the Muslim population (N = 20,559) and deviant behavior justification. Sociodemographic factors, subjective (...) well-being (life satisfaction, happiness, and state of health), and perceived religiousness (prayer frequency and importance of God in life) were hypothesized as predictors. Results revealed that these hypotheses are supported. However, many of these predictors are weak, having minimal effect. This is with the exception of having the worldview of God being important in one’s life, being both a strong and statistically significant predictor of deviant behavior justification. The more a person views God being important in life, the more it predicts a decrease in deviant behavior justification. This research provides a novel finding on the belief-behavior nexus, specifically concerning Muslims justifying deviant behavior when two forms of perceived religiousness—ritualistic and worldview—are being compared. (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)

Consumers’ engagement in morally-questionable behaviors poses a serious threat to firms. To further the understanding of consumers’ behavior, this study explores the association and conflicts between their ethical and legal judgments. In addition, it examines the way consumers’ judgments depend on their mind-sets and the legal liability criterion of action. In two experiments, participants were asked to judge the ethicality and legality of consumers’ morally-questionable behaviors. Behavior activity and participants’ mind-sets were manipulated. The results show that consumers are more likely (...) to judge a behavior to be legal when they consider it ethical than when they consider it unethical. Nevertheless, conflicts between ethical and legal judgments are prevalent. Furthermore, ethical judgments, legal judgments, and the occurrence of conflicts between them depend on activity and on consumers’ mind-sets. Finally, consumers report uncertainty about the ethicality and legality of a wide range of morally-questionable behaviors. Thus, the results paint a picture of individuals who perceive the law to be often beyond their reach or in conflict with their ethical principles. They portray both ethical and legal judgments as dynamically-changing, subjective, and context-dependent. Theoretical contribution and business applications are discussed. (shrink)

Following the recent call for advancement in knowledge about business ethics in East Asia, this study proposes a complementary perspective on business ethics in South Korea. We challenge the conventional view that South Korea is a strictly collectivist country, where group norms and low trust determine the norms and values of behavior. Using the concept of civil religion, we suggest that the center of the South Korean civil religion can be seen in the affective ties and networks pervading the economic, (...) political, and social institutions, embedded in and guided by Confucian ideals. We argue that South Korea should be seen not as a collectivist low-trust society, but rather as an affective-relational society, in which the relational context determines whether collectivism or individualism prevails. Further, we assert that trust, the cohesive factor of affective ties and networks, has until now been inadequately captured by conventional surveys. Our proposed perspective contributes to a more holistic picture and a more firmly grounded understanding of business ethics in South Korea. (shrink)

This study attempts to advance knowledge in the area of controversial advertising by examining the antecedents and consequences of controversial advert perceptions in the context of social media, and particularly social networking sites. Specifically, we explore how ethical judgement and religious commitment shape controversial advert perceptions leading to attitudes towards the advert, brand attitudes and purchase intentions. Our results indicate that when a SNS advert is judged to be ethically acceptable, the level of perceived advert controversy is lower. However, the (...) impact of ethical judgement on controversial advert perceptions becomes significant and positive when intrapersonal commitment and interpersonal religious commitment are introduced as moderators. This result implies that the level of religious commitment changes the ethical judgement–controversial advert perceptions relationship. The results also highlight that controversial advert perceptions negatively influence attitude towards the advert. The study contributes to the limited knowledge on controversial advertising on SNS, yielding significant and relevant implications for academics and advertisers alike, in their effort to improve advertising effectiveness without offending or alienating target audiences. (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)

There are questions about how ethics is best taught to undergraduate business students. There has been a proliferation in the number of stand-alone ethics courses for undergraduate students but research on the effectiveness of integrated versus stand-alone mode of delivery is inconclusive. Christensen et al. :347–368, 2007), in a comprehensive review of ethics, corporate social responsibility and sustainability education, investigated how ethics education has changed over the last 20 years, including the issue of integration of these topics into the core (...) course offerings. We use Brenner and Molander’s :57–71, 1977) situational ethics survey instrument to examine the effect of the mode of delivery of business ethics education on undergraduate student responses. We found a significant difference on mode of delivery. Studies have also found interesting results in respect of the effect of cultural differences and gender on the effectiveness of business ethics instruction. While not the primary focus of this study, we also looked at the influence of gender and culture on students’ responses. Our results indicate significant differences in respect of mode of delivery and culture. In contrast to other studies, we found that gender was not significant. We did test for any interactive effects of gender, culture and mode of delivery. However, no significant differences were found. (shrink)

The impact of “love of money” on different aspects of consumers’ ethical beliefs has been investigated by previous research. In this study we investigate the potential impact of “love of money” on a manager’s ethical decision-making in marketing. Another objective of the current study is to investigate the potential impacts of extrinsic and intrinsic religiosity on ethical marketing decision-making. We also include ethical judgments as an element of ethical decision-making. We found “love of money”, both dimensions of religiosity, and ethical (...) judgment to have significant impacts on ethical intentions in a marketing situation. In addition to providing an important contribution to the business ethics literature, the findings also have important managerial implications. (shrink)

This article presents a theory of how the consumption of Islamic products may promote morally consistent behavior over time. We identify and examine three unique meta-characteristics (MCs) of Islamic ethics: ubudiyah (subservience to God), akhirah (focus on the hereafter or the long-term), and tawado (being modest while doing an ethical act). In four experiments, we show that after consumption of an Islamic banking product, MCs produce moral consistency or repeat ethical behavior, which is one major objective of an ethical system. (...) We also show that the absence of MCs results in moral inconsistency, that is, unethical behavior follows earlier consumption of an Islamic banking product due to the mediating psychological mechanism of moral licensing. Hence, it is not only the enactment of general ethical practices, rather the enactment of ethical practices in the specific context set by the MCs through which Islamic ethical system promotes ethical conduct and prevents unethical conduct. The findings have implications for Islamic ethical system and Islamic banking. (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)

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)

The dominant approach to understanding Islamic Business Ethics has been based almost exclusively on either interpretations of the Qur’an and Sunna or influenced by Western understanding of Islam and ethics. However, there is a rich—largely ignored-tradition of ethical analysis conducted by Muslim philosophers which would broaden our understanding of Islamic ethics and hence IBE. We seek to correct this imbalance by examining works of Al-Ghazali, an early Muslim philosopher, scholar, and mystic. His approach to Sufism, combining an interpretation of revelation (...) with reason, can contribute to new developments in business ethics scholarship and practice especially in Muslim communities. His thought portrays a vibrant work ethic that, while based in Sufism, has important practical implications for business. We argue that including such historically and contextually recognized perspectives in our understanding of BE, both in theory and in practice, would work well with an audience that looks to Islam as a source of justice and proper moral conduct. (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)

This article presents the results of a systematic literature review on religiosity and spirituality, particularly in the work context. We aimed to verify the state-of-the-art of scientific production related to these themes. To achieve the proposed objective, we identified 312 articles published in journals in the period between 1960 and 2018 using a rigourous method of analysis and sorting, which resulted in 52 appropriate studies. The analyses presented are based on the three bibliometric laws: those of Lotka, Bradford and Zipf. (...) This article brings contributions that encompass four approaches: measurement scales of spirituality and religiosity; behavioural benefits of religiosity in individuals; insertion of religiosity and spirituality in social service practice; and research directions. This research presents technical and managerial implications to provide theoretical support for the creation of programmes and/or practices of spirituality and religion in the workplace as an effective strategy, towards ethical attitudes. Also, this study contributes to the methodological achievement of SLRs in the field of religion in the workplace, highlighting an effective method for thematic mapping, and holistically identifying new research topics and directions, especially because of the several guidelines presented. (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)

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)

We present a cross-sectional study of ethical decision-making correlated with spirituality and utilizing moral intensity as a moderator for workers in the Southeastern United States. This study presents spirituality as an individual variable and moral intensity as a situational variable along with ethical decision-making to examine the interaction of these factors in moral dilemmas. Utilizing previously validated instruments for ethical decision-making and individual spirituality, we find that workers with relatively high measured spirituality made less ethical decisions compared to workers with (...) relatively lower measures of spirituality. Further, we find that the introduction of high moral intensity as a situational variable does not moderate the observed correlation between spirituality and ethical decision-making. This research supports the conceptual nature of the Interactionist Theory by presenting in a single study both individual and situational variables in ethical decision-making. (shrink)

This study explored the relationship between egoistic, altruistic and biospheric values and pro-environmental attitudes, as well as their impact on the pro-environmental behaviours of Indian consumers. India is currently facing the burgeoning challenge of a rapidly increasing urban population, which is leading to waste segregation issues in households and the need for sustainable green products due to rising awareness among consumers. The goal of this research was to understand the effect of Indian consumers’ values and pro-environmental attitudes on the following (...) three specific behaviours: waste-sorting intention, green-consumption intention and social-activity intention. The authors found that values were positively related to pro-environmental attitudes, which in turn positively impacted the three pro-environmental behaviours. These findings suggest that, in order to strengthen individuals’ perceptions of the individual benefits of a cleaner and better environment, marketers should promote responsible consumption in tandem with government policymakers. (shrink)

Religiosity is one of the most prominent and extensive social factors influencing one’s behavior; however, there is a lack of research analyzing the religiosity impact on pro-environmental behavior, particularly for women in rural areas. To narrow the research gap, this study established a theoretical research model by incorporating religiosity into the Theory of Planned Behavior to explore factors affecting rural female facilitators’ pro-environmental behavior. The extended Theory of Planned Behavior model was consequently tested by empirical data collected from 110 rural (...) female facilitators in Qom Province in the center of Iran. The results of structural equation modeling indicated that subjective norms and environmental attitude were positively and significantly related to pro-environmental intentions. In addition, pro-environmental intentions and perceived behavioral control were found to be significantly associated with pro-environmental behaviors. The results revealed that there was a direct and indirect relationship between religiosity and pro-environmental behaviors via perceived behavioral control. In addition, there was an indirect relationship between religiosity and pro-environmental intentions via subjective norms and environmental attitudes. Therefore, this study revealed that religiosity as social pressure plays an important role in determining pro-environmental intentions and behaviors among rural female facilitators in Iran. Thus, in order to promote pro-environmental behavior, the religiosity aspects should be considered and people should be stimulated to act in a more environmentally friendly mode via religious prism. (shrink)

The study reported in this article examines the relationships between nationality, gender, and religiosity and business ethics attitudes in four countries in the Asia-Pacific region. Using a survey approach, university business students in Australia, New Zealand, Hong Kong, and Singapore were asked about their attitudes regarding business-related ethicality using a six-item scale of ethicality that was reported in the literature. Business students are appropriate for this study as they are “future business leaders.” For nationality significant differences emerged for only two (...) of the six items. There was no significant difference in total ethicality, and the values were positive in all countries. In general, females were reported being more ethical than males, particularly in New Zealand and Singapore. For religiosity, overall, there was a significant difference in ethicality where those respondents reporting being “very religious” also reporting being more ethical. For individual countries, significance did emerge for Australia and New Zealand. (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)