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The purpose of this study is to examine whether users’ perceived moral affect explains the effect of perceived intensity of emotional distress on responsibility judgment of a perpetrator and company, respectively, in an ill and good intention breach.

Participants completed a questionnaire containing items measuring their perceived intensity of emotional distress, perceived moral affect and responsibility judgment of a perpetrator and company, respectively.

The results support the mediating hypothesis on responsibility judgment of a perpetrator regardless of intention. The mediating hypothesis is also supported in an ill intention breach in responsibility judgment of a company. However, the mediating effect is not observed in a good intention breach when users assess a company’s responsibility.

The findings support the notion that users use the consequentialism approach when assessing a perpetrator’s responsibility because they focus on the victims’ emotional distress and discount a perpetrator’s intent, resulting in similar mediating effect of perceived moral affect in an ill and good intention breach. The results also indicate that perceived moral affect increases the negative effect of perceived intensity of emotional distress on responsibility judgment of a company, suggesting that users may exhibit empathetic feelings toward a company and perceive it as a victim of an ill intention breach. The lack of mediating effect in responsibility judgment of a company in a good intention breach may be attributed to the diminished effect of a perpetrator’s feelings of regret, sorrow, guilt and shame for causing emotional distress to the victims.

In an age where morality requires economic justification, it is a compelling task to explicate the deeper affecting implications of moral judgment than its mere financial costs. In this chapter, we explore the emotional, behavioral, and cognitive ramifications of moral leadership at both the individual and macro organizational levels; specifically, by summoning literature on leadership, affect, and organizational justice to build a conceptual model of affect and interactional justice in moral leadership. The aim of the model is to extend current theoretical frameworks and highlight the important ramifications that moral decision-making has on employee and organizational welfare including that of the decision maker. The chapter concludes with a call for research comparing moral and immoral leadership in terms of different influence and strategy processes adopted by leaders and their followers’ attributions, emotions, attitudes, and behaviors.

The purpose of this study is to investigate the role of consumers’ moral preferences between moral and economic benefits and consumers’ moral and rational behaviour intentions based on moral decision-making models of previous studies.

Respondents were asked to answer a questionnaire measuring moral and economic benefits, consumers’ moral preferences and moral and rational behaviour intention after reading a stimulus describing imaginary fashion brand A’s unethical activities.

Moral and economic benefits directly and significantly affect moral and rational behaviour intention. Homo economicus evoked by an economic benefit had a negative effect on moral behaviour intention.

This study focused only on a moral benefit and an economic benefit as factors evoking consumers’ moral preferences. This study was also conducted only in a Korean context and considered a specific industry. In future research, the results of this study should be extended to design the “possibility of punishment” to encourage moral behaviour by discouraging the effect of homo economicus. The results have implications for companies such as social enterprises and charities that want to promote consumers’ moral behaviour.

This study provides evidence on why ethical consumers do not always make ethical decisions by confirming that homo economicus has a significant influence on not only rational behaviour intention but also moral behaviour intention.

This paper aims to investigate the role of affect and tolerance of ambiguity on ethical decision-making of management and accounting students.

Weisbrod’s (2009) questionnaire on ethical decision-making in individual and organizational situations, McDonald’s (1970)16-factor questionnaire on tolerance of ambiguity and Watson et al.’s (1988) Positive and Negative Affect Schedule were used to study the students’ views toward research hypotheses. The population used in this study includes graduate and PhD students of accounting and management during the academic year 2014-2015. The number of samples is 398 and sample members selected using simple random sampling method. Hypotheses test using structural equation modeling in the AMOS software version 18.

Results of hypotheses shows that individual characteristics of positive and negative affect and tolerance of ambiguity have no effect on accounting students’ ethical decision-making, but there is a significant positive relationship between management students’ negative affect and ethical decision-making, and a significant negative relationship between management students’ increased level of tolerance of ambiguity and ethical decision-making. The findings also show that affect (positive and negative) and tolerance of ambiguity have no interactive effect on accounting students’ ethical decision-making, whereas among students of management, there is a significant relationship between interactive effect of negative affect and tolerance of ambiguity on ethical decision-making. The results show that there is a significant difference between students of management and accounting based on negative effects and tolerance of ambiguity on ethical decision-making.

The current paper is almost the first paper which was conducted in developing countries.

The study aims to examine whether corporate social responsibility (CSR) disclosure does improve debt financing of listed firms with sustainable development agendas coupled with high chief executive officer (CEO) tenure in India.

Employing panel regression based on fixed effect and instrumental variable regression with fixed effect assumptions, the study examined data from the Bombay stock exchange from the period 2010 to 2019.

The study demonstrates that the disclosure of current exchange capital and moral capital cannot cause a firm to access short-term and long-term debt financing. However, lag investment in moral capital causes a positive effect on short-term debt financing. The second findings show that CEO tenure has a positive and statistically significant association with short-term debt financing and an insignificant association with long-term debt financing. The third findings show that the interaction of current CSR disclosure (moral and exchange capital) and CEO tenure is insignificant in affecting short-term and long-term debt finance. However, the interaction of lag CSR disclosure (moral and exchange capital) and CEO tenure positively affect short-term debt financing. The study addresses any endogeneity concerns arising from the CSR disclosure-debt financing association.

This study uses a single country to examine the inter-relationship between CEO tenure and debt financing and CSR measured by moral capital and exchange capital, thereby limiting the study's results for generalisation.

The observation is that moral capital investment and disclosure do not guarantee new entrants the chance to access debt financing, but subsequent and lag CSR disclosure ensures access.

No studies examine morality from CSR disclosure on debt financing. This study shows that decoupling CSR into exchange capital and moral capital in accessing debt financing presents new inputs for scholarly debate on CSR.

Moral intensity is the degree of feeling we have about the consequences of moral choices, similar, for example, to those perceived for crimes, from petty larceny to murder. Moral intensity is thought to increase moral sensitivity and judgment. Because the accounting professions require members to respond to accounting fraud with more sensitivity and intensity, we examine this response in 220 professional accountants (mostly Certified Public Accountants) under a controlled experiment using two different cases. We examine the first three parts of the Rest (1986) model including ethical evaluation, judgment, and intention to act. We measure moral intensity in the accountant’s perception of overall harm and societal pressure. As in prior research, we find that the degree of moral intensity may be contextual. We find that the ethical evaluations may become affected by perceived overall harm, and whistleblowing intentions by perceived societal pressure. However, in both cases, the professional’s judgments are most affected by moral intensity. Consistent with prior research, whistleblowing intentions may involve many other mitigating variables, such as audit reporting or non-audit reporting limited by codes of conduct. These findings relate to the increasing attention paid by the SEC to finding accounting fraud.

This manuscript makes three important contributions to the existing literature. First, there are few studies in this area and Jones (1991) identifies that moral intensity is issue contingent; therefore, replication studies using different scenarios are needed. Second, Bailey, Scott, and Thoma (2010) have suggested that accounting ethics research has focused too narrowly on Component II of Rest’s Four-Component Model. None of the previous studies looked at all three steps in Rest’s Model; therefore, our manuscript provides an important contribution over the other previous studies. Third, our sample uses professionals and not students as surrogates for professionals.

The purpose of this paper is to examine how psychological antecedents (i.e. consumer mindsets) and individual difference characteristics (i.e. moral identity) affect the intention to purchase Fair Trade products based on the triadic reciprocal causation model in social cognitive theory (Bandura, 1986). The primary factors that influence ethical consumption decisions in ethnic Chinese societies were explored by integrating the unique cultural environment of the Chinese.

The study effective sample comprised university students and professors. Structural equation modelling was used to test the hypotheses and indirect effects. Results showed that moral identity internalization had a mediating effect on the relationship between a collectivistic mindset and the intention to purchase Fair Trade products.

A high moral identity symbolization had a moderating effect on the relationship between a collectivistic mindset and the intention to purchase Fair Trade products. This demonstrated that the two dimensions of moral identity, internalization and symbolization, play different roles and have different functions in regards to the intention to purchase Fair Trade products.

Future studies are urged to examine this issue at a cultural level by performing a cross-cultural comparison and to integrate consumer heterogeneity for a deeper examination of the interaction between demographic factors and psychological traits on consumer behaviours regarding Fair Trade products.

This study indicates that moral identity internalization is the primary factor that influences ethical consumption decisions in Chinese societies. In terms of the moderating effect of moral identity symbolization, results showed that the higher an individual’s moral identity symbolization, the stronger the relationship between a collectivistic mindset and the intention to purchase Fair Trade products is. These results can serve as a reference for marketing communications and market segmentation policies in the business world.

This study aims to investigate the effects of moral hazard on quality and satisfaction of public–private–partnership (PPP) construction projects in Ghana.

After undertaking a literature review, questionnaires were used to elicit responses from respondents. Population consisted of quantity surveyors, project managers, procurement officers, consultants, public agency officers involved in PPP projects, private partners and contractors. A total of 211 questionnaires were received from 250 distributed. Purposive and snowballing sampling techniques were adopted. Analytical tools were Cronbach’s alpha for testing reliability, regression, mean score ranking and relative importance index.

Reduced mutual trust and respect, poor clarity of project objectives; consequence on decision-making; less effective construction process; and increased construction risks were the significant effects of moral hazard on satisfaction of PPP construction projects. Value-based effects; manufacturer-based effects; product-based effects; user-based effects; and transcendent-based effects were the significant effects of moral hazard on quality of PPP construction projects.

Construction stakeholders involved in delivering PPP projects ought to take note of the findings and recommendations arising. Further studies should explore the effects on other project performance indicators apart from satisfaction and quality.

This paper extends knowledge in the area of exploring the effects of moral hazard on PPP project satisfaction and quality. The findings are beneficial to both academia and industry practitioners.

This paper aims to examine how observers evaluate a company that provides service failure (or excellence) to an immoral versus a moral customer. This study introduces the concept of deservingness to the service literature and suggests that observers appreciate when a company delivers “justice” – either bad service to an immoral customer or good service to a moral customer – and thus evaluate the company more favorably.

This paper presents three online studies using scenarios (ns = 205, 199 and 181) and one lab study (n = 89) using a confederate to manipulate customer morality.

Across four studies, this study finds that a service failure has a less negative impact on observers’ company evaluations when observers consider the target customer immoral, and thus deserving of the bad outcome. Conversely, the positive impact of observing service excellence is enhanced when observers consider the target customer to be moral, and thus deserving of a good outcome. This effect occurs because the perception of deservingness leads observers to experience more positive feelings about the service outcome and these positive feelings transfer over to observers’ evaluations of the service provider.

The mechanism shares some similarities with the concept of immanent justice reasoning, whereby individuals draw a causal link between someone’s prior immoral behavior and an unrelated negative outcome. However, the studies go one step further by showing that such causal reasoning, at least on a moral level, can impact the judgments of the other party (in this case, the company involved in the service outcome).

Service providers need to be particularly attentive when serving customers who are viewed in a positive light, as an observed failure that affects a moral customer can be particularly damaging to company evaluations. Conversely, companies should make efforts to publicize when exceptional service is given to nice, admirable customers, as this is particularly effective at improving evaluations.

Researchers have examined how allocations of responsibility affect observers' evaluation of service encounters. This paper adds deservingness as an alternate mechanism and examines service excellence as well.

The purpose of this study was to explicate how leaders’ knowledge hiding results in employees’ knowledge hiding. In addition, the study was intended to explore under what conditions leaders’ knowledge hiding affects employees’ moral disengagement more deleteriously.

Data were collected from 321 employees at three different times which were two months apart from each other. Structural equation modeling was used for data analysis.

The study found leaders’ knowledge hiding to be related to employee moral disengagement. In addition, the study found moral disengagement to affect employees’ knowledge-hiding behavior. Moral disengagement was found to mediate the relationship between leaders’ knowledge hiding and employees’ knowledge hiding. Finally, the study found that employees with high moral identity show more perseverance to preserve their moral engagement when led by knowledge-hiding leaders.

To the best of the authors’ knowledge, the study was first to establish a relationship between a leader’s knowledge hiding and employees’ moral disengagement. The study also established the mediating role of moral disengagement to work as a mediating mechanism linking leaders’ knowledge hiding to employees’ knowledge hiding. Finally, the study found that moral identity moderates the relationship between leaders’ knowledge hiding and employees’ moral disengagement.