Antecedents and Consequences of Unethical Behavior: Does Economic Development Make a Difference? International Congress of Psychology Berlin, Germany, July 20- 28, 2008 Presented by Thomas Li-Ping Tang, Ph.D. Middle Tennessee State University, the USA
43
Embed
Antecedents and Consequences of Unethical Behavior: Does Economic Development Make a Difference?
Antecedents and Consequences of Unethical Behavior: Does Economic Development Make a Difference?. International Congress of Psychology Berlin, Germany, July 20-28, 2008 Presented by Thomas Li-Ping Tang, Ph.D. Middle Tennessee State University, the USA. - PowerPoint PPT Presentation
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Antecedents and Consequences of Unethical Behavior:
Does Economic Development Make a Difference?
International Congress of PsychologyBerlin, Germany, July 20-28, 2008
Presented by
Thomas Li-Ping Tang, Ph.D.Middle Tennessee State University, the USA
TOTO SUTARSO, Middle Tennessee State University, USA,ADEBOWALE AKANDE, International Institute of Research, South Africa,MICHAEL W. ALLEN, Griffith University, Australia,ABDULGAWI SALIM ALZUBAIDI, Sultan Qaboos University, Oman,MAHFOOZ A. ANSARI, University of Lethbridge, Canada, FERNANDO ARIAS-GALICIA, National University of Mexico, Mexico,MARK G. BORG, University of Malta, Malta,LUIGINA CANOVA, University of Padua, Italy,BRIGITTE CHARLES-PAUVERS, University of Nantes, France,BOR-SHIUAN CHENG, National Taiwan University, Taiwan,RANDY K. CHIU, Hong Kong Baptist University, Hong Kong, IOANA CODOBAN, Babes-Bolyai University, Romania,LINZHI DU, Nanjing University, China,ILIA GARBER, Saratov State Social-Economic University, Russia,CONSUELO GARCIA DE LA TORRE, Technological Institute of
Monterrey, Mexico,ROSARIO CORREIA HIGGS, Polytechnic Institute of Lisbon – Portugal,
Portugal, CHIN-KANG JEN, National Sun-Yat-Sen University, Taiwan,ALI MAHDI KAZEM, Sultan Qaboos University, Oman,KILSUN KIM, Sogang University, South Korea,
VIVIEN KIM GEOK LIM, National University of Singapore, Singapore,ROBERTO LUNA-AROCAS, University of Valencia, Spain,EVA MALOVICS, University of Szeged, Hungary, ANNA MARIA MANGANELLI, University of Padua, Italy,ALICE S. MOREIRA, Federal University of Pará, Brazil, ANTHONY UGOCHUKWU O. NNEDUM, Nnamdi Azikiwe University, Nigeria, JOHNSTO E. OSAGIE, Florida A & M University, USA,FRANCISCO COSTA PEREIRA, Polytechnic Institute of Lisbon – Portugal, Portugal,RUJA PHOLSWARD, University of the Thai Chamber of Commerce, Thailand, HORIA D. PITARIU, Babes-Bolyai University, Romania, MARKO POLIC, University of Ljubljana, Slovenia,ELISAVETA SARDZOSKA, University St. Cyril and Methodius, Macedonia, PETAR SKOBIC, Middle Tennessee State University, Croatia,ALLEN F. STEMBRIDGE, Southwestern Adventist University, USA,THERESA LI-NA TANG, Affinion Group, Brentwood, TN, USA, THOMPSON SIAN HIN TEO, National University of Singapore, Singapore,MARCO TOMBOLANI, University of Padua, Italy,MARTINA TRONTELJ, University of Ljubljana, Slovenia, CAROLINE URBAIN, University of Nantes, France,PETER VLERICK, Ghent University, Belgium
Scandals and Corruptions1. It is not lack of brains (intelligence), but
lack of wisdom (Feiner, 2004: 85) or virtue (Giacalone, 2004: 417)
2. Pressure & Opportunity: The bottom-line-mentality” (Sims, 1992: 508) or “Maximizing shareholder value” (Kochan, 2002: 139).
3. Power tends to corrupt, and absolute power corrupts absolutely. (Lord Acton, Letter to Bishop Mandell Creighton, 1887)
Management Spirituality and Religion
“People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. For the love of money is a root of all kinds of evil”
(http://www.biblegateway.com, 1 Timothy, 6: 9-10, New International Version).
*People do look to the social context: ethically right and wrong
*Social Learning Theory: (Bandura, 1977)
*Obey authority figures (Milgram, 1974),
*Reinforcement Theory: People do what is rewarded (Skinner, 1972)
*The Interactionist model of Ethical Behavior (Trevino, 1986).
*The Sarbanes-Oxley Act (July 30, 2002): Public companies to adopt a code of ethics (Anand, Ashforth, & Joshi, 2004).
Corruption Around the World
Countries with high GDP per Capita tend to have low CPI Corruption Perceptions Index (http://www.transparency.org/documents/cpi/2001/cpi2001.html)
Bribery is illegal in the USA (Foreign Corruption Practices Act), but widely practiced in other countries (Sims, 1992).
In cross-cultural research:
64% has covered only 2 countries, 23% > 2 countries (Sin, Cheung, & Lee, 1999)
72.43%: did not report Measurement Invariance (He, Merz, & Alden, 2008)
Theory of Reasoned Action
Behavior is determined by intention, which is a function of attitude towards the behavior and subjective norms (Ajzen & Fishbein, 1980; Ajzen, 1991; Armitage & Conner, 2001).
1. Attitude: the love of money (Cognitive moral development, economic, political, and religious value, ego strength, ethical philosophy, locus of control, Machiavellisnism, nationality, sex role orientation)
2. Subjective Norms: corporate ethical values (competition, economic conditions, organizational philosophy and policy, quality of the work experience, referent others, reinforcement contingencies, relationships among actors, responsibility for consequences, scarcity of resources , stakeholders).
3. Behavioral Intention: the propensity to engage in unethical behavior (workplace deviance, counterproductive behavior, corruption, organizational misbehavior, unethical behavior)
Attitude: Love of Money
Rich (A): “People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction.” (Bible: 1 Timothy, 6: 9-10; Tang & Chiu, 2003).
Motivator (B): “No other incentive or motivational technique comes even close to money” (Locke, Feren, McCaleb, Shaw, & Denny, 1980: 381). Money is a motivator (Stajkovic & Luthans, 2001).
Important (C): The most consistent thread of the money attitude literature is the “emphasis on its importance” (Mitchell & Mickel, AMR, 1999: 569).
Power (C): The adage “Power corrupts and absolute power corrupts absolutely” once again has proven true (Kochan, 2002: 139).
The Love of Money ScaleFactor 1: Rich (Affective)
1. I want to be rich.2. It would be nice to be rich.3. Having a lot of money (being rich) is good.
Factor 2: Motivator (Behavioral)4. I am motivated to work hard for money.5. Money reinforces me to work harder.6. I am highly motivated by money.
Factor 3: Important (Cognitive)7. Money is good.8. Money is important.9. Money is valuable.
Factor 4: Power (Cognitive) 10. Money is power. 11. Money gives one considerable power. 12. Money can buy the best products and services.
negatively related to organizational misbehavior (Vardi, 2001), unethical behavior, counterproductive behavior (Wimbush & Shepard, 1994),
workplace deviant behavior (Peterson, 2002), role conflict, and role ambiguity,
but positively related to ethical behavioral intentions (Shih & Chen, 2006) and ethical decision making (Jose & Thibodeaux, 1999).
Corporate Ethical Values Scale (CEV)
1. Top management in my company has let it be known in no uncertain terms that unethical behaviors will not be tolerated.
2. If a manager in my company is discovered to have engaged in unethical behaviors that result primarily in personal gain (rather than corporate gain), he or she will be promptly reprimanded.
3. If a manager in my company is discovered to have engaged in unethical behaviors that result primarily in corporate gain (rather than personal gain), he or she will be
Corruption: Misuse of position or authority for personal or organizational gain and may include acts that are committed against the organization or on behalf of the organization (Anand et al., 2004).
Propensity to Engage in Unethical Behavior (PUB)
Factor Resource Abuse 1. Use office supplies (paper, pen), Xerox machine, and stamps for personal purposes 2. Make personal long-distance (mobile phone) calls at work 3. Waste company time surfing on the Internet, playing computer games, and socializing
Factor Not Whistle Blowing4. Take no action against shoplifting by customers 5. Take no action against employees who steal cash/merchandise
Factor Theft 6. Abuse the company expense accounts and falsify accounting records.7. Take merchandise and/or cash home. 8. Borrow $20 from a cash register overnight without asking.
Factor Corruption9. Accept money, gift, and kickback from others. 10. Reveal company secrets when a person offers several million dollars.11. Sabotage the company to get even due to unfair treatment.12. Lay off 500 employees to save the company money and increase one’s personal bonus. (Chen & Tang, 2006, Journal of Business Ethics)
We included two consequences of ethical behavioral intention:
1. Job Stress
2. Life Satisfaction
Job Stress
When you think about yourself and your job nowadays, how do you feel?
Irritation
1. I get angry.
2. I get aggravated.
3. I get irritated or annoyed.(Caplan, Cobb, French, Van Harrison, & Pinneau, 1975).
Life Satisfaction
1. My work/family/personal life in general
2. My life as a whole these days
3. My overall life satisfaction
Similar to those in the United States’ General Social Survey (GSS) Conducted by the National Opinion Research Center since 1972 (Easterlin, 2001).
Theoretical Model: Variables
Theory of Reasoned Action Stewardship Theory (Ajzen & Fishbein, 1980; Trevino, 1986) (Davis, Schoorman, & Donaldson, 1997)
The LoveOf Money
EthicalValues
UnethicalBehavior
JobStress
LifeSatisfaction
The Love of Money
M40,
e4
M50,
e51
M60,
e61
M70,
e71
M80,
e8
M90,
e9
M10,
e1
M20,
e2
1
1
1
1
1
0
Motivator
1
0
Important
0
Rich
1
M30,
e31
1
0,
The Loveof Money
0,
e22
0,
e23
0,
e21
1
1
1
M100,
e10
M110,
e11
M120,
e12
0
Power
0,
e241
1
1
11
1
S40,
e34
S50,
e35
S60,
e36
1
1
1
S70,
e37
S80,
e38
S90,
e39
1
1
1
S100,
e40
S110,
e41
1
1
S10,
e31
S20,
e32
S30,
e33
1
1
1
0
AbuseResources
0
Not WhistleBlowing
0
Theft
0,
e51
0,
e52
0,
e53
1
0
Corruption
0,
e54
1
1
1
1
1
1
1
0,
Evil
S120,
e421
1
M40,
e4
M50,
e51
M60,
e61
M70,
e71
M80,
e8
M90,
e9
M10,
e1
M20,
e2
1
1
1
1
10
Motivator
1
0
Important
0
Rich
1
M30,
e31
1
0,
The Loveof Money
0,
e22
0,
e23
0,
e21
1
1
1
E4
0,
e54
E5
0,
e55
E60,
e56
1
1
E70,
e57
E80,
e58
E90,
e59
11 1
E100,
e60
E110,
e61
11
E1
0,
e51
E2
0,
e52
E3
0,
e531 11
0
ResourceAbuse
0
Not WhistleBlowing
0
Theft
0,
e81
0,
e82
0,
e83
1
0
Corruption
0,
e8411
11
1
0UnethicalBehaviorM10
0,
e10
M110,
e11
M120,
e12
0
Power
0,
e241
1
1
1 1
E120,
e62
1
V10,
e14
V20,
e15
0,
EthicalValues
1
1
1
V30,
e161
S10,
e63
S20,
e64
S30,
e65
0
Stress
1
1
L10,
e66
L20,
e67
L30,
e68
0
LifeSatisfaction
1 1
0,
e85
0,
e860,
e88
1
1
1
1
1
1
1 1
1
1
1
1
Measurement Invariance: CriteriaConfigural:
Chi-square/df < 5.00
TLI > .90 Tucker-Lewis Index,
CFI > .90 Comparative Fit Index,
IFI > .90 Incremental Fit Index,
SRMSR < .10 Standardized Root Mean Square Residual
RMSEA < .10 Root Mean Square Error of Approximation
Metric: Rule of thumb
If ΔCFI < .01: Differences between models do not exist(Cheung & Rensvold, 2002; Vandenberg & Lance, 2000).
29 Countries/Entities, N = 6081, (1) High GDP Group (> $20,000, n = 1,756):
the USA, Belgium, Australia, France, Spain, Singapore (2), and Hong Kong (PRC); 7 entities;
(2) Medium GDP Group ($5,000 - $20,000, n = 2,371): Portugal, Slovenia, South Korea, Taiwan, Malta, Oman, Hungary, Croatia, Mexico, Russia, South Africa, and Malaysia; 12 entities; and
(3) Low GDP Group (< $5,000, n = 1,954): Romania, Brazil, Bulgaria, Peru, Macedonia, Thailand, People’s Republic of China, Egypt, the Philippines, and Nigeria; 10 entities