Jones (1991) has proposed an issue-contingent model of ethical decision making by individuals in organizations. The distinguishing feature of the issue was identified as its moral intensity, which determines the moral imperative in the situation. In this study, we adapted three scenarios from the literature in order to examine the issue-contingent model. Findings, based on a student sample, suggest that (1) the perceived and actual dimensions of moral intensity often differed; (2) perceived moral intensity variables, in the aggregate, significantly affected (...) an individual''s moral judgments; and (3) some dimensions of moral intensity (namely, perceived social consensus and perceived magnitude of consequences) mattered more than others. (shrink)

Merchant and Rockness (1994, p. 92) characterize earnings management as "probably the most important ethical issue facing the accounting profession" and provide initial evidence of the ethical judgments of various organizational members. The current study extends their work by examining the extent to which an individual''s ethically-related judgments in response to earnings management activities are associated with the individual''s role.In an experimental study, evening MBA students read three hypothetical scenarios involving a manager engaging in earnings management. The scenarios involved a (...) gain from an operating activity, a gain from an accounting activity, and a loss from an accounting activity. Before reading the cases, however, participants were randomly assigned to one of three roles: a shareholder, another manager from the company who is unfamiliar with the manager in the case, or another manager from the company who is familiar with the manager in the case. Following each case, participants made four ethically related judgments. (shrink)

There are many ways that accountants and managers can influence the reported accounting results of their organizational units. When such influence is directed at changing the amount of reported earnings, it is known as earnings management. The purpose of this paper is to present the results of surveys of undergraduate students, MBA students, and practicing accountants concerning their attitudes on the ethical acceptability of earnings management. Analysis of the survey results reveals how the attitudes of the three groups differ and (...) what variables are associated with these differences. Based on the analysis, the authors suggest changes in accounting education curriculum and ethics awareness programs in business which might increase students'' and practitioners'' sensitivity to the ethical ramifications of earnings management. (shrink)

The present paper reports the results of a vignette- and questionnaire-based research project investigating the influence of Moral Intensity (MI) on decision making in a New Zealand business context. The use of a relatively sensitive research design yielded results showing that – in contrast to previous research – objective manipulations, as well as subjective perceptions, of three of the six MI components were of particular importance in accounting for a comparatively large proportion of the variation in four outcome variables. There (...) were no interactions of appreciable magnitude between MI components, or variations across scenarios. Also, no support was found for a reliable multi-dimensional structure of perceptions of Moral Intensity. Implications of the findings are discussed. (shrink)

This experiment examined the effects of three elements comprising Jones' (1991) moral intensity construct, (social consensus, personal proximity, and magnitude of consequences) in a cross-cultural comparison of ethical decision making within a human resource management (HRM) context. Results indicated social consensus had the most potent effect on judgments of moral concern and judgments of immorality. An analysis of American, Eastern European, and Indonesian responses also indicted socio-cultural differences were moderated by the type of HRM ethical issue. In addition, individual differences (...) in personal ethical ideology (relativism and idealism) varied reliably with moral judgments after controlling for issue characteristics and socio-cultural background. (shrink)

Using a scenario approach involving hypothetical moral decisions, the study aims to (1) compare managerial professionals' ethicality judgments with those made by the general public, and (2) ascertain the roles of perceived intensity (Jones, 1991) as well as perceived fairness of the moral issue in judgments of ethicality. While the two respondent groups made similar ratings on variables of moral intensity, fairness, and ethicality; the evaluation processes underlying their ethicality judgments were different. Empirically, the study has also established a link (...) between judgments of fairness and judgments of ethicality. (shrink)