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This paper uses a laboratory experiment to examine the effect of accountability pressure as a monitoring control tool to mitigate subordinates' propensity to create budgetary slack. The results suggest that budgetary slack is (lowest) highest when accountability pressure is (present) absent under a private information situation. The results further reveal that accountability pressure is positively associated with subordinates' perceived levels of honesty, which in turn is negatively associated with budgetary slack creation. The findings of this paper have important theoretical and practical implications for budgetary control systems design.

The topic of this research focuses simultaneously on the perceived trust of companies towards suppliers and customers in supply chains. Initially, it is assumed that lean, responsive, and agile supply chains require satisfactory or high levels of perceived trust of companies towards suppliers and customers. Otherwise, it is assumed that less leanness, less responsiveness, and less agility may dominate the activities in supply chains. Trust often appears to be a requisite or a phenomenon that smoothes the well‐functioning of all activities in supply chains. The outcome of this study is generated and based on the empirical findings from a survey in the Swedish automotive industry. The automotive industry is characterised by its lean, responsive, and agile supply chains due to a keen competitive marketplace. Finds that there are high levels of companies’ perceived trust towards suppliers and customers in the Swedish automotive industry. Concludes in part that the perceived trust towards the suppliers and the perceived trust towards the customers differ from each other. There is also in part an association between the companies’ perceived trust towards both suppliers and customers in the industry.

Purpose — The aim of this chapter is to explain the concepts of honesty and dishonesty in management and provide a general understanding why and how honesty and dishonesty may manifest in different ways.Design/methodology/approach — This conceptual chapter discusses what (dis)honesty is, which factors affect it and which consequences result from it. It is illustrated with several short examples.Findings — (Dis)honesty is a complex concept. It is not always possible to classify a certain act as honest or dishonest: sometimes, it is in the ‘grey area’. Moreover, the understanding what is honest and what is not depends on the cultural context. Thus, the term (dis)honesty may be sometimes more appropriate.Originality/value — The complexity of (dis)honesty in management (encompassing its nature, impact factors and consequences) has received relatively little research attention.

This paper examines what drives match-fixing in football and why some leagues collapse from corruption. Based on more than 220 interviews with players, referees, sports officials and law enforcement officers, the gambling industry and corrupters, three factors presented when high levels of match-fixing were observed: strong illegal gambling networks, high levels of relative exploitation of players, and perceived corrupt officials. Leagues collapsed if the public became aware of high-level corruption and an alternative market competitor was introduced.

The intricacies of electronic commerce via the Internet and World Wide Web have provided marketers with a host of interesting challenges. From using the Internet and World Wide Web sites as communication and promotional tools to performing distribution functions, marketers are finding an entirely new world of consumer purchasing behavior. Issues such as store layout, traffic patterns, and salesperson interactions within a retail store are vastly different in E‐Business marketing. As in a direct‐marketing exchange, trust becomes a central issue in the negotiation process. Winning the customers' trust, and keeping their trust, is essential to E‐Business.

The purpose of this paper is to assess the impact of seven variables that emerge from forensic research on facial-composite construction and naming using contemporary police systems: EvoFIT, Feature and Sketch.

The paper involves regression- and meta-analyses on composite-naming data from 23 studies that have followed procedures used by police practitioners for forensic face construction. The corpus for analyses contains 6,464 individual naming responses from 1,069 participants in 41 experimental conditions.

The analyses reveal that composites constructed from the holistic EvoFIT system were over four-times more identifiable than composites from “Feature” (E-FIT and PRO-fit) and Sketch systems; Sketch was somewhat more effective than Feature systems. EvoFIT was more effective when internal features were created before rather than after selecting hair and the other (blurred) external features. Adding questions about the global appearance of the face (as part of the holistic-cognitive interview (H-CI)) gives a valuable improvement in naming over the standard face-recall cognitive interview (CI) for all three system types tested. The analysis also confirmed that composites were considerably less effective when constructed from a long (one to two days) compared with a short (0-3.5 hours) retention interval.

Variables were assessed that are of importance to forensic practitioners who construct composites with witnesses and victims of crime.

Using a large corpus of forensically-relevant data, the main result is that EvoFIT using the internal-features method of construction is superior; an H-CI administered prior to face construction is also advantageous (cf. face-recall CI) for EvoFIT as well as for two further contrasting production systems.

There has been a call for additional managerial accounting research that examines the effect of non-pecuniary preferences (such as those for honesty and fairness) on managerial reporting decisions.

Drawing from trait theory, agency theory, and psychological contracts theory, Kidder (2005) suggests that personality traits and perceived unfairness in the workplace both help predict detrimental workplace behaviors, with perceived fairness affecting the honesty in reporting of some individuals but not others. We test Kidder’s (2005) theory in an experimental setting where participants have opportunity and incentive to report dishonestly.

Participants’ honesty preferences and ethical values (idealism and relativism) were measured, and the fairness of the participants’ employment contracts was manipulated. As predicted, higher preferences for honesty are significantly associated with honesty in reporting, suggesting that participants make trade-offs between increasing their own wealth and acting honestly. Additionally, the perceived fairness of compensation interacted with honesty preferences and relativism to affect honesty in reporting.

The implication for practice is that while a small number of employees are likely to consistently behave in honest or self-interested ways, firms may be able to positively influence the behavior of the majority of employees by enacting policies and procedures that contribute to perceptions that compensation is fair.

These findings contribute to our understanding of non-pecuniary preferences on managerial reporting decisions.

We examine the effect of peer honesty on focal manager honesty in a budget reporting setting. We disclose peer honesty to the focal manager at three levels: no, partial, and full disclosure of the reporting behavior of the other managers in the focal managers’ cohort. In partial disclosure, only the reports of the least honest peers are disclosed to the focal manager. In full disclosure, all managers’ reports in the cohort are disclosed to the focal manager. We predict and find that disclosure of other managers’ reports leads to less honesty compared to the absence of disclosure. We show that disclosure changes the focal manager’s perceptions of what constitutes acceptable reporting behavior, such that reporting more dishonestly becomes more acceptable. Our results have implications for understanding fraud dynamics and have practical implications for the design of control systems, as they suggest that managers will use peer dishonesty to justify their own dishonesty, even when they know that only some of their peers report dishonestly.

This paper reports the results of a three-year-long research on business relationships, relying on qualitative data gathered through multiple-case study research of four focal companies operating in Australia. The industry settings are as follows: steel construction, vegetable oils trading, aluminum and steel can manufacture, and imaging solutions. The research analyzes two main aspects of relationships: structure and process. This paper deals with structure describing it by the most desired features of intercompany relationships for each focal company. The primary research data have been coded drawing on extant research into business relationships. The main outcome of this part of the research is a five construct model composed by trust, commitment, bonds, distance, and information sharing that accounts for all informants’ utterances about relationship structure.