Manajemen | Fakultas Ekonomi Universitas Maritim Raja Ali Haji joeb.84.6.357-366

Journal of Education for Business

ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20

Using a Corporate Code of Ethics to Assess
Students' Ethicality: Implications for Business
Education
Obeua Persons
To cite this article: Obeua Persons (2009) Using a Corporate Code of Ethics to Assess Students'
Ethicality: Implications for Business Education, Journal of Education for Business, 84:6,
357-366, DOI: 10.3200/JOEB.84.6.357-366
To link to this article: http://dx.doi.org/10.3200/JOEB.84.6.357-366

Published online: 07 Aug 2010.

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Date: 11 January 2016, At: 22:57

Using฀a฀Corporate฀Code฀of฀Ethics฀to฀
Assess฀Students’฀Ethicality:฀Implications฀for฀
Business฀Education

Downloaded by [Universitas Maritim Raja Ali Haji] at 22:57 11 January 2016

OBEUA฀PERSONS
RIDER฀UNIVERSITY
LAWRENCEVILLE,฀NEW฀JERSEY

ABSTRACT.฀The฀author฀used฀a฀corporate฀
code฀of฀ethics฀as฀a฀roadmap฀to฀create฀18฀

scenarios฀for฀assessing฀business฀students’฀
ethicality฀as฀measured฀by฀their฀behavioral฀
intention.฀Using฀a฀logistic฀regression฀analysis,฀the฀author฀also฀examined฀8฀factors฀that฀
could฀potentially฀influence฀students’฀ethicality.฀Results฀indicate฀6฀scenarios฀related฀
to฀5฀areas฀of฀the฀code฀that฀deserve฀special฀
attention฀and฀increasing฀course฀coverage.฀
These฀5฀areas฀of฀concern฀are฀(a)฀failure฀to฀
report฀unethical฀behavior,฀(b)฀improper฀use฀
of฀company฀assets,฀(c)฀conflict฀of฀interest,฀
(d)฀inaccurate฀accounting฀records฀by฀way฀of฀
channel฀stuffing฀(offering฀a฀deep฀discount฀
to฀customers฀to฀overbuy),฀and฀(e)฀trading฀
on฀inside฀information.฀Regression฀analysis฀
results฀suggest฀that฀female฀gender,฀accounting฀major,฀full-time฀work฀experience,฀and฀
the฀number฀of฀workplace฀ethics฀trainings฀
have฀a฀positive฀influence฀on฀students’฀ethicality.฀These฀results฀should฀help฀educators฀
and฀corporate฀ethics฀trainers฀direct฀more฀
attention฀to฀students฀or฀entry-level฀personnel฀with฀these฀characteristics.฀
Keywords:฀corporate฀code฀of฀ethics,฀ethics฀
courses,฀ethics฀training,฀students’฀ethicality,฀

work฀experience

Copyright฀©฀2009฀Heldref฀Publications

฀

A

ccounting฀debacles฀due฀to฀highly฀
unethical฀conduct฀by฀top฀executives฀ of฀ well-known฀ corporations฀ such฀
as฀Enron,฀WorldCom,฀and฀Tyco฀have฀led฀
to฀ the฀ public฀ outcry฀ for฀ better฀ business฀
ethics.฀ In฀ response฀ to฀ this฀ outcry,฀ the฀
U.S.฀ Congress฀ and฀ President฀ George฀
W.฀Bush฀enacted฀into฀law฀the฀SarbanesOxley฀Act฀of฀2002฀(2002),฀Section฀406,฀
that฀requires฀publicly฀traded฀companies฀
to฀ disclose฀ whether฀ they฀ have฀ adopted฀
a฀ code฀ of฀ ethics฀ that฀ applies฀ to฀ frontline฀ employees฀ and฀ senior฀ executives.฀
In฀compliance฀with฀the฀Sarbanes-Oxley฀
Act฀of฀2002,฀in฀2003฀the฀NYSE฀(2009)฀

and฀ the฀ NASDAQ฀ (2009)฀ issued฀ new฀
corporate฀governance฀rules฀that฀require฀
their฀listed฀companies฀to฀adopt฀and฀disclose฀ a฀ code฀ of฀ business฀ conduct฀ and฀
ethics.฀ These฀ regulations฀ also฀ require฀
public฀ companies฀ to฀ have฀ enforcement฀
mechanisms฀ for฀ the฀ code฀ in฀ place฀ and฀
are฀updated฀annually.฀
Therefore,฀it฀is฀important฀that฀business฀
students฀ are฀ familiar฀ with฀ a฀ corporate฀
code฀ of฀ ethics,฀ because฀ they฀ will฀ soon฀
enter฀ the฀ business฀ world฀ and฀ become฀
our฀future฀business฀leaders.฀For฀business฀
schools฀ to฀ effectively฀ expose฀ students฀
to฀a฀corporate฀code฀of฀ethics,฀educators฀
need฀ to฀ be฀ aware฀ of฀ business฀ students’฀
behavioral฀ intentions,฀ which฀ may฀ be฀
in฀ violation฀ of฀ such฀ code.฀ The฀ present฀
study฀ aimed฀ to฀ assess฀ such฀ students’฀
behavioral฀intention฀using฀a฀number฀of฀
scenarios฀directly฀linked฀to฀a฀corporate฀

code฀ of฀ ethics.฀ In฀ the฀ present฀ study,฀
the฀ term฀ behavioral฀ intention฀ refers฀ to฀
whether฀ the฀ person฀ would฀ behave฀ in฀ a฀

certain฀ ethical฀ or฀ unethical฀ manner.฀ I฀
used฀a฀dichotomous฀variable฀in฀the฀present฀ article฀ because,฀ from฀ a฀ corporation฀
viewpoint,฀an฀employee’s฀conduct฀is฀in฀
compliance฀with฀the฀code฀(being฀ethical)฀
or฀in฀violation฀of฀the฀code฀(being฀unethical).฀ I฀ focused฀ on฀ behavioral฀ intention,฀
as฀opposed฀to฀ethical฀perception฀or฀judgment฀ (a฀ personal฀ conclusion฀ about฀ the฀
ethicality฀ of฀ an฀ act),฀ because฀ intention฀
is฀more฀directly฀linked฀to฀an฀action฀that฀
students฀would฀likely฀take฀when฀facing฀
an฀ethical฀dilemma.฀In฀other฀words,฀the฀
capability฀of฀ethical฀perception฀does฀not฀
guarantee฀an฀ethical฀action.฀
In฀ addition,฀ the฀ present฀ study฀ investigated฀ eight฀ factors฀ that฀ can฀ potentially฀
affect฀ such฀ intention.฀ These฀ factors฀ are฀
gender,฀ accounting฀ major,฀ culture,฀ fulltime฀ work฀ experience,฀ part-time฀ work฀
experience,฀accounting฀work฀experience,฀

the฀number฀of฀ethics฀courses฀taken,฀and฀
the฀ number฀ of฀ workplace฀ ethics฀ trainings.฀Many฀prior฀studies฀have฀examined฀
the฀ effects฀ of฀ gender,฀ major,฀ and฀ culture฀ on฀ ethical฀ judgment฀ and฀ behavioral฀ intention.฀ Only฀ a฀ handful฀ of฀ studies฀
have฀ investigated฀ the฀ effects฀ of฀ work฀
experience,฀the฀number฀of฀ethics฀courses฀
taken,฀and฀the฀number฀of฀workplace฀ethics฀ trainings.฀ In฀ particular,฀ Su฀ (2006)฀
called฀ for฀ future฀ studies฀ to฀ examine฀ the฀
effects฀of฀work฀experience฀and฀education฀
on฀ethical฀decision-making.฀Prior฀studies฀
also฀ examined฀ each฀ individual฀ ethicsinfluencing฀ factor฀ separately,฀ whereas฀
the฀ present฀ study฀ is฀ the฀ first฀ to฀ investigate฀these฀factors฀simultaneously฀using฀a฀
logistic฀regression฀analysis.฀
July/August฀2009฀

357

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The฀ findings฀ of฀ the฀ present฀ study฀
should฀ provide฀ insight฀ to฀ educators฀

regarding฀ specific฀ areas฀ of฀ a฀ corporate฀
code฀of฀ethics฀that฀deserve฀special฀attention฀ and฀ higher฀ course฀ coverage.฀ The฀
findings฀ should฀ also฀ help฀ educators฀ to฀
direct฀ their฀ attention฀ to฀ students฀ with฀
specific฀traits฀or฀characteristics฀to฀effectively฀ improve฀ students’฀ ethicality.฀ In฀
line฀ with฀ educators,฀ corporations฀ could฀
use฀these฀findings฀to฀improve฀their฀ethics-training฀ program฀ by฀ placing฀ more฀
emphasis฀on฀issues฀with฀a฀high฀percentage฀of฀students’฀unethical฀responses.
Corporate฀Code฀of฀Ethics฀and฀
Questionnaire฀Development
No฀ study฀ has฀ investigated฀ students’฀
behavioral฀ intention฀ using฀ a฀ real-world฀
corporate฀code฀of฀ethics฀as฀a฀road฀map฀
for฀ developing฀ questions฀ or฀ scenarios.฀
Given฀ the฀ strong฀ emphasis฀ of฀ the฀ Sarbanes-Oxley฀ Act฀ of฀ 2002฀ (2002)฀ on฀
improving฀ corporate฀ ethics฀ disclosure฀
and฀enforcement,฀it฀is฀crucial฀to฀expose฀
business฀students฀to฀a฀corporate฀code฀of฀
ethic,฀and฀to฀use฀the฀code฀to฀help฀create฀
scenarios฀ for฀ assessing฀ students’฀ ethicality.฀A฀ corporate฀ code฀ of฀ ethics฀ typically฀covers฀nine฀areas.1฀These฀areas฀are฀

in฀accordance฀with฀the฀Sarbanes-Oxley฀
Act฀of฀2002฀and฀the฀NYSE฀(2009)฀and฀
the฀ NASDAQ฀ (2009)฀ ethics฀ requirements.2฀ I฀ present฀ short฀ ethics฀ scenarios฀
that฀ I฀ created,฀ each฀ with฀ a฀ question฀
requiring฀ a฀ yes฀ or฀ no฀ answer,฀ for฀ each฀
area฀ of฀ the฀ code.฀ These฀ scenarios฀ are฀
based฀ on฀ accounting฀ issues฀ presented฀
in฀ textbooks,฀ suggested฀ by฀ accounting฀
alumni฀who฀are฀CPAs฀or฀certified฀internal฀auditors,฀or฀adapted฀from฀real-world฀
articles฀ published฀ in฀ business฀ periodicals฀(all฀of฀which฀are฀based฀on฀the฀Generally฀Accepted฀Accounting฀Principles).฀
There฀are฀a฀total฀of฀18฀scenarios฀for฀the฀
following฀9฀areas.฀
Accurate฀Accounting฀Records฀
All฀ business฀ records฀ must฀ be฀ clear,฀
truthful,฀and฀accurate.฀This฀includes฀such฀
data฀as฀quality,฀safety,฀personnel,฀and฀all฀
financial฀ records.฀ Misrepresenting฀ facts฀
or฀falsifying฀company฀records฀is฀a฀serious฀
offense.฀The฀following฀are฀scenarios:฀
Scenario฀ 1:฀ Will฀ you฀ honor฀ your฀ boss’s฀

request฀ to฀ sign฀ and฀ submit฀ a฀ company฀
purchase฀order฀for฀a฀computer฀game฀(cost,฀
$19.95)฀that฀he฀wants฀to฀give฀to฀his฀son?

358฀

Journal฀of฀Education฀for฀Business

Scenario฀ 2:฀ Will฀ you฀ honor฀ your฀ boss’s฀
request฀to฀sign฀and฀submit฀a฀company฀purchase฀order฀for฀a฀computer฀(cost,฀$1,995)฀
that฀he฀wants฀to฀give฀to฀his฀son?
Scenario฀3:฀You฀are฀the฀CEO฀of฀a฀firm฀that฀
uses฀free฀on-board฀shipping-point฀term฀for฀
all฀ sales฀ contracts.฀ This฀ means฀ sales฀ can฀
be฀ properly฀ recorded฀ when฀ products฀ are฀
loaded฀onto฀delivery฀trucks.฀Total฀sales฀just฀
one฀day฀before฀the฀December฀31฀year-end฀
are฀ 3%฀ below฀ the฀ target฀ sales.฀ There฀ are฀
two฀ large฀ customer฀ orders฀ which฀ amount฀
to฀5%฀of฀the฀target฀sales.฀These฀orders฀are฀

scheduled฀for฀shipment฀on฀January฀2฀next฀
year.฀Will฀you฀try฀to฀record฀sales฀of฀these฀
orders฀ in฀ the฀ current฀ year฀ by฀ asking฀ the฀
warehouse฀manager฀to฀fulfill฀these฀orders฀
by฀December฀31฀(i.e.,฀loading฀products฀per฀
these฀ orders฀ onto฀ deliver฀ trucks฀ by฀ midnight฀of฀December฀31)?
Scenario฀4:฀As฀the฀CEO฀of฀a฀company,฀you฀
are฀concerned฀that฀sales฀this฀year฀may฀be฀
much฀below฀the฀target฀sales.฀Will฀you฀offer฀
your฀ wholesale฀ customers฀ an฀ unusually฀
big฀ discount฀ to฀ induce฀ them฀ to฀ buy฀ more฀
products฀than฀they฀can฀promptly฀resell?

Conflict฀of฀Interest฀
Employees฀must฀make฀business฀decisions฀ and฀ actions฀ on฀ the฀ basis฀ of฀ the฀
best฀ interests฀ of฀ the฀ company฀ and฀ its฀
stakeholders฀and฀must฀not฀be฀motivated฀
by฀ personal฀ considerations฀ or฀ relationships.฀ For฀ example,฀ relationships฀ with฀
prospective฀ or฀ existing฀ suppliers,฀ contractors,฀ customers,฀ competitors,฀ or฀
regulators฀ must฀ not฀ affect฀ employees’฀

independent฀ and฀ sound฀ judgment.฀ The฀
following฀is฀a฀scenario:฀
Scenario฀1:฀You฀are฀the฀purchasing฀department฀director฀who฀is฀supposed฀to฀get฀the฀
best฀deal฀for฀your฀company฀from฀different฀
suppliers.฀One฀of฀the฀suppliers฀would฀like฀
to฀take฀you฀out฀for฀a฀nice฀lunch.฀Will฀you฀
accept฀this฀supplier’s฀invitation?

Confidential฀Information
Except฀ in฀ connection฀ with฀ the฀ performance฀ of฀ their฀ duties,฀ employees฀
are฀prohibited฀from฀disclosing฀or฀using฀
confidential฀ or฀ proprietary฀ information฀
outside฀ the฀ company,฀ during฀ or฀ after฀
employment,฀without฀company฀authorization.฀The฀following฀is฀a฀scenario:฀
Scenario฀1:฀You฀are฀the฀manager฀of฀a฀local฀
UPS฀delivery฀office.฀Your฀sister฀just฀started฀
her฀whole-selling฀business฀in฀the฀local฀market฀in฀which฀there฀is฀only฀one฀other฀competitor.฀This฀competitor฀uses฀UPS฀services฀

for฀ all฀ deliveries฀ to฀ his฀ customers.฀ Will฀
you฀provide฀your฀sister฀with฀the฀name฀and฀
address฀of฀customers฀of฀her฀competitor?

Proper฀Use฀of฀Company฀Assets
Protecting฀ company฀ assets฀ against฀
loss,฀theft,฀and฀misuse฀is฀every฀employee’s฀responsibility.฀
Company’s฀ equipment,฀ vehicles,฀
tools,฀ and฀ supplies฀ are฀ to฀ be฀ used฀ for฀
conducting฀ company฀ business.฀ They฀
may฀ not฀ be฀ used฀ for฀ personal฀ benefit.฀
The฀following฀are฀scenarios:฀
Scenario฀ 1:฀ After฀ work฀ hours฀ or฀ during฀
lunch฀ break,฀ will฀ you฀ use฀ your฀ employer’s฀computer฀for฀personal฀purposes฀(e.g.,฀
sending฀ personal฀ e-mail฀ or฀ searching฀ for฀
the฀best฀deal฀for฀your฀family฀vacation)?
Scenario฀2:฀During฀work฀hours,฀will฀you฀
use฀ your฀ employer’s฀ computer฀ for฀ personal฀purposes?
Scenario฀ 3:฀ Will฀ you฀ use฀ your฀ employer’s฀
copy฀machine฀to฀copy฀your฀personal฀items?
Scenario฀ 4:฀ Your฀ company฀ gave฀ you฀ a฀
corporate฀ credit฀ card฀ to฀ pay฀ for฀ business฀
lunch฀ or฀ dinner฀ with฀ the฀ company’s฀ clients.฀Will฀you฀use฀your฀company’s฀credit฀
card฀to฀pay฀for฀your฀family฀dinner?

Compliance฀With฀Laws฀
Employees฀ must฀ comply฀ with฀ laws฀
and฀ regulations฀ wherever฀ a฀ company฀
does฀business.฀
Foreign฀Corrupt฀Practices฀Act฀(1977)฀
prohibits฀ U.S.฀ firms฀ and฀ their฀ workers฀
or฀agents฀from฀bribing฀foreign฀officials.฀
The฀following฀are฀scenarios:฀
Scenario฀1:฀Your฀company฀relocated฀you฀
to฀a฀country฀where฀it฀is฀common฀to฀bribe฀a฀
policeman฀for฀just฀$10฀to฀avoid฀the฀ticket฀
for฀ a฀ minor฀ traffic฀ law฀ violation฀ such฀ as฀
speeding฀ or฀ running฀ the฀ light.฀The฀ ticket฀
must฀ be฀ paid฀ in฀ person฀ at฀ a฀ local฀ police฀
station฀ and฀ the฀ whole฀ process฀ can฀ take฀
more฀than฀1฀hr.฀You฀are฀in฀a฀hurry฀to฀go฀
to฀a฀business฀meeting฀when฀a฀policeman฀
stops฀you฀for฀speeding.฀Will฀you฀make฀a฀
$10฀bribery฀to฀the฀policeman?
Scenario฀ 2:฀You฀ are฀ a฀ partner฀ to฀ a฀ joint฀
venture฀with฀a฀Chinese฀businessman.฀The฀
joint฀venture฀is฀about฀to฀be฀audited฀by฀the฀
Chinese฀ tax฀ authority฀ and฀ may฀ have฀ to฀
pay฀a฀few฀million฀dollar฀in฀tax฀underpayment฀and฀penalty.฀Your฀Chinese฀business฀
partner฀suggests฀$1,000฀bribery฀to฀the฀tax฀
auditor฀to฀avoid฀being฀audited.฀He฀states฀

that฀it฀is฀not฀uncommon฀in฀China฀to฀bribe฀
a฀tax฀authority฀and฀that฀he฀used฀to฀do฀it฀in฀
his฀previous฀joint฀venture.฀Will฀you฀agree฀
to฀make฀the฀$1,000฀bribery?

Competition฀and฀Fair฀Dealing

Downloaded by [Universitas Maritim Raja Ali Haji] at 22:57 11 January 2016

Employees฀ must฀ not฀ use฀ any฀ illegal฀
or฀unethical฀methods฀to฀gather฀competitive฀information.฀
The฀ Federal฀ Trade฀ Commission฀ Act฀
(1914)฀ prohibits฀ misrepresentations฀ of฀
all฀sorts฀that฀are฀made฀in฀connection฀with฀
sales฀including฀false฀or฀misleading฀advertisement.฀The฀following฀is฀a฀scenario:฀
Scenario฀1:฀You฀are฀the฀CEO฀of฀a฀firm฀that฀
makes฀ and฀ sells฀ dinnerware.฀ The฀ dinnerware฀is฀advertised฀as฀100%฀lead฀free,฀and฀
this฀is฀the฀main฀selling฀feature฀of฀the฀product.฀It฀recently฀came฀to฀your฀attention฀that฀
the฀most฀popular฀line฀of฀the฀dinnerware฀has฀
a฀ small฀ trace฀ of฀ lead฀ (within฀ the฀ required฀
safety฀level).฀Will฀you฀recall฀the฀product?

Trading฀on฀Inside฀Information฀
Using฀ inside฀ material฀ information,฀
which฀ is฀ not฀ available฀ to฀ the฀ public฀
for฀trading฀or฀tipping฀others฀to฀trade฀is฀
unethical฀and฀illegal.฀The฀following฀are฀
scenarios:
Scenario฀ 1:฀ You฀ overhear฀ your฀ boss’s฀
phone฀ conversation฀ that฀ your฀ company฀ will฀ soon฀ have฀ to฀ restate฀ downward฀earnings฀in฀the฀past฀3฀years.฀This฀
restatement฀ will฀ likely฀ lead฀ to฀ a฀ big฀
decline฀ in฀ the฀ company’s฀ stock฀ price.฀
Will฀you฀immediately฀sell฀the฀company฀
stock฀ that฀ you฀ own฀ before฀ a฀ release฀ of฀
this฀news฀to฀the฀public?
Scenario฀ 2:฀ Same฀ situation฀ as฀ the฀ aforementioned฀ except฀ that฀ you฀ do฀ not฀ own฀
the฀company฀stock.฀Will฀you฀try฀to฀profit฀
from฀the฀imminent฀decline฀in฀stock฀price฀
by฀buying฀a฀put฀option฀on฀the฀stock฀before฀
a฀release฀of฀this฀news฀to฀the฀public?฀

Antinepotism฀Policy
To฀ reduce฀ favoritism฀ or฀ the฀ appearance฀of฀favoritism฀and฀to฀prevent฀family฀ conflict฀ from฀ affecting฀ the฀ workplace,฀ an฀ employee’s฀ relative฀ is฀ not฀
permitted฀to฀work฀as฀a฀supervisor฀or฀a฀
subordinate฀ of฀ the฀ employee.฀ The฀ following฀is฀a฀scenario:
Scenario฀ 1:฀Your฀ niece฀ (with฀ a฀ different฀
last฀ name฀ from฀ yours)฀ applied฀ for฀ an฀
internal฀auditor฀position.฀She฀has฀5฀years฀
of฀ work฀ experience฀ in฀ internal฀ auditing.฀

฀

The฀other฀candidate฀has฀10฀years฀of฀internal฀auditing฀experience฀and฀the฀same฀education฀ background฀ as฀ your฀ niece.฀As฀ the฀
director฀ of฀ the฀ internal฀ auditing฀ department,฀will฀you฀hire฀your฀niece฀instead฀of฀
the฀other฀candidate?

Reporting฀Illegal฀and฀Unethical฀
Behavior฀

the฀ eight฀ factors฀ potentially฀ affecting฀
students’฀ behavioral฀ intention฀ toward฀
ethics฀ issues฀ covered฀ by฀ a฀ corporate฀
code฀ of฀ ethics.฀The฀ ninth฀ hypothesis฀ is฀
for฀testing฀a฀moral-intensity฀effect.
Gender฀

Literature฀Review฀and฀
Hypothesis฀Development

The฀ gender฀ socialization฀ approach฀
(Kohlberg,฀ 1984)฀ assumed฀ that฀ men฀
and฀women฀have฀distinctively฀different฀
values฀ and฀ traits,฀ thereby฀ creating฀ different฀ moral฀ orientations฀ that฀ result฀ in฀
different฀ decisions฀ and฀ practices.฀ Gilligan฀(1982)฀posited฀that฀women฀frame฀
moral฀ questions฀ as฀ problems฀ of฀ care,฀
involving฀ empathy฀ and฀ compassion,฀
whereas฀men฀frame฀moral฀questions฀as฀
problems฀of฀justice,฀rights,฀and฀fairness.฀
Betz,฀O’Connell,฀and฀Shepherd฀(1989)฀
posited฀ that฀ men฀ are฀ more฀ concerned฀
with฀ money฀ and฀ advancement,฀ and฀
women฀are฀more฀interested฀in฀relationships฀ and฀ helping฀ people.฀ The฀ gender฀
socialization฀ approach฀ suggested฀ that฀
men฀ and฀ women฀ respond฀ differently฀
to฀ the฀ same฀ set฀ of฀ conditions฀ (Kohlberg).฀ Men฀ tend฀ to฀ seek฀ competitive฀
success฀ and฀ are฀ more฀ likely฀ to฀ break฀
rules.฀Women฀are฀more฀likely฀to฀adhere฀
to฀ rules,฀ because฀ they฀ are฀ concerned฀
about฀doing฀tasks฀well฀and฀having฀harmonious฀relationships.฀There฀have฀been฀
many฀ studies฀ on฀ gender฀ differences฀
regarding฀ college฀ students’฀ ethicality.฀
Although฀some฀studies฀have฀not฀detected฀ any฀ gender฀ differences฀ among฀ students฀ (e.g.,฀ McCuddy฀ &฀ Peery,฀ 1996;฀
Sikula฀ &฀ Costa,฀ 1994;฀ Stanga฀ &฀ Turpen,฀1991),฀the฀majority฀of฀studies฀have฀
shown฀ that฀ female฀ students฀ are฀ more฀
ethical฀ than฀ are฀ male฀ students฀ (e.g.,฀
Albaum฀ &฀ Peterson,฀ 2006;฀ Ameen,฀
Guffey,฀&฀McMillan,฀1996;฀Betz฀et฀al.;฀
Cohen,฀Pant,฀&฀Sharp,฀1998;฀Libby฀&฀
Agnello,฀ 2000;฀ Malinowski฀ &฀ Berger,฀
1996;฀ Ruegger฀ &฀ King,฀ 1992).฀ This฀
gender฀ difference฀ is฀ also฀ documented฀
among฀ students฀ in฀ foreign฀ countries฀
such฀ as฀ Ukraine฀ (Roxas฀ &฀ Stoneback,฀
2004),฀ New฀ Zealand฀ (Okleshen฀ &฀
Hoyt,฀ 1996),฀ and฀ England฀ (Whipple฀
&฀Swords,฀1992).฀Therefore,฀I฀propose฀
the฀ following฀ hypothesis,฀ which฀ represents฀ my฀ review฀ of฀ the฀ literature฀ on฀
gender฀socialization:฀

The฀ present฀ study฀ has฀ nine฀ hypotheses.฀The฀ first฀ eight฀ hypotheses฀ are฀ for฀

Hypothesis฀1฀(H1):฀Female฀students฀are฀
more฀ethical฀than฀male฀students.฀

Employees฀ have฀ a฀ duty฀ to฀ promptly฀
report฀violations฀of฀a฀corporate฀code฀of฀
ethics฀ by฀ way฀ of฀ an฀ anonymous฀ phone฀
hotline฀ or฀ to฀ an฀ appropriate฀ company฀
representative฀ (e.g.,฀ chief฀ compliance฀
officer฀or฀chairperson฀of฀an฀audit฀committee).฀In฀addition,฀a฀company฀usually฀
requires฀ employees฀ to฀ certify฀ that฀ they฀
have฀ complied฀ with฀ all฀ areas฀ of฀ the฀
code.฀The฀following฀are฀scenarios:
Scenario฀1:฀Your฀close฀friend฀and฀coworker฀ confided฀ with฀ you฀ that฀ it฀ is฀ the฀ first฀
time฀that฀he฀used฀the฀company฀credit฀card฀
to฀ pay฀ for฀ his฀ family฀ dinner฀ because฀ he฀
forgot฀ his฀ personal฀ credit฀ card.฀ You฀ are฀
the฀ only฀ one฀ who฀ knows฀ this.฀ Will฀ you฀
report฀your฀friend฀to฀the฀company฀by฀way฀
of฀the฀anonymous฀phone฀hotline?
Scenario฀2:฀Your฀close฀friend฀and฀coworker฀ confided฀ with฀ you฀ that฀ he฀ has฀ been฀
using฀the฀company฀credit฀card฀to฀pay฀for฀
his฀family฀dinner฀whenever฀they฀eat฀out.฀
You฀are฀the฀only฀one฀who฀knows฀this.฀Will฀
you฀report฀your฀friend฀to฀the฀company฀by฀
way฀of฀the฀anonymous฀phone฀hotline?

Interpretation฀of฀a฀Response฀฀
to฀Scenarios฀
According฀ to฀ a฀ corporate฀ code฀ of฀
ethics,฀ a฀ no฀ answer฀ would฀ be฀ ethical฀
for฀ all฀ scenarios฀ except฀ for฀ the฀ competition฀ and฀ fair฀ dealing฀ scenario,฀ and฀
the฀ reporting-illegal-and-unethicalbehavior฀scenarios,฀where฀a฀yes฀answer฀
would฀ be฀ ethical.฀A฀ questionnaire฀ also฀
included฀ nine฀ demographic฀ questions฀
and฀ one฀ cultural-screening฀ question.฀
The฀ accounting฀ department’s฀ advisory฀
board฀ members,฀ who฀ were฀ corporate฀
executives฀or฀partners฀of฀public฀accounting฀firms,฀reviewed฀the฀questionnaire.฀I฀
have฀ incorporated฀ their฀ comments฀ into฀
the฀questionnaire.฀

July/August฀2009฀

359

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Major฀
Students฀may฀self-select฀into฀an฀academic฀ major฀ on฀ the฀ basis฀ of฀ their฀ personality฀types.฀Accounting฀majors฀seem฀
to฀be฀more฀willing฀to฀adhere฀to฀rules฀and฀
have฀stronger฀desires฀to฀be฀accurate฀than฀
do฀other฀business฀majors.฀Manley,฀Russell,฀and฀Buckley฀(2001)฀suggested฀that฀
accounting฀majors฀may฀be฀more฀ethical฀
than฀other฀business฀majors฀because฀the฀
public฀and฀the฀regulators฀such฀as฀the฀SEC฀
demand฀ that฀ the฀ accounting฀ profession฀
abide฀by฀rules฀and฀standards,฀particularly฀ the฀ Generally฀ Accepted฀ Accounting฀
Principles,฀ which฀ are฀ the฀ backbone฀ of฀
an฀ accounting฀ curriculum.฀ Fulmer฀ and฀
Cargile฀(1987)฀reported฀that฀accounting฀
majors฀ had฀ higher฀ ethical฀ perception฀
than฀did฀other฀business฀majors.฀Cohen฀et฀
al.฀(1998)฀found฀that฀accounting฀majors฀
were฀ less฀ likely฀ to฀ perform฀ questionable฀ actions฀ than฀ were฀ other฀ majors.฀
Arlow฀ and฀ Ulrich฀ (1983)฀ attributed฀ the฀
higher฀ ethicality฀ of฀ accounting฀ majors฀
to฀ accounting฀ majors฀ receiving฀ additional฀ trainings฀ in฀ accounting฀ ethics฀ in฀
the฀accounting฀curriculum.฀Therefore,฀I฀
propose฀the฀following฀hypothesis:
H2:฀Accounting฀majors฀are฀more฀ethical฀
than฀other฀business฀majors.
Culture
Carroll฀ (1996)฀ stated฀ that฀ “ethics฀ is฀
the฀ set฀ of฀ moral฀ principles฀ that฀ drive฀
behavior.฀ .฀ .฀ .฀ Values฀ are฀ the฀ individual’s฀ concepts฀ of฀ the฀ relative฀ worth,฀ utility฀ or฀ importance฀ of฀ certain฀ ideas.฀ .฀ .฀ .฀
One’s฀values,฀therefore,฀shape฀one’s฀ethics”฀ (pp.฀ 133–134).฀ To฀ the฀ extent฀ that฀
culture฀ affects฀ the฀ individual’s฀ values,฀
researchers฀might฀expect฀that฀differences฀
in฀ actions฀ and฀ motivations฀ in฀ identical฀
settings฀would฀vary฀by฀the฀cultural฀background฀of฀the฀individual.฀Ahmed,฀Chung,฀
and฀ Eichenseher฀ (2003),฀ Goodwin฀ and฀
Goodwin฀(1999),฀Phau฀and฀Kea฀(2007),฀
and฀ Su฀ (2006)฀ reported฀ significant฀ differences฀in฀ethical฀beliefs฀and฀tolerances฀
for฀ unethical฀ behavior฀ among฀ their฀ college-student฀ participants฀ with฀ different฀
cultural฀ backgrounds.฀ However,฀ there฀
is฀ no฀ conclusive฀ evidence฀ on฀ whether฀
American฀ students฀ are฀ always฀ more฀ or฀
less฀ ethical฀ than฀ those฀ from฀ other฀ cultures.฀This฀discussion฀leads฀to฀the฀following฀hypothesis:
360฀

Journal฀of฀Education฀for฀Business

H3:฀American฀students฀and฀international฀
students฀ respond฀ differently฀ to฀ the฀
same฀business฀ethics฀scenarios.
Full-Time฀Work฀Experience
Studies฀concerning฀a฀relation฀between฀
years฀ of฀ work฀ experience฀ and฀ ethical฀
behavior฀reported฀mixed฀results.฀Callan฀
(1992),฀ Dubinsky฀ and฀ Ingram฀ (1984),฀
Reiss฀ and฀ Mitra฀ (1998),฀ and฀ Serwinek฀
(1992)฀ have฀ found฀ no฀ significant฀ relation฀ between฀ length฀ of฀ employment฀
and฀ ethical฀ behavior฀ in฀ an฀ organization.฀ Alternatively,฀ Kidwell,฀ Stevens,฀
and฀ Bethke฀ (1987)฀ reported฀ a฀ positive฀
relation฀ between฀ years฀ of฀ employment฀
and฀ ethical฀ beliefs.฀ Ruegger฀ and฀ King฀
(1992)฀ found฀ through฀ class฀ discussion฀
that฀ students฀ who฀ had฀ worked฀ for฀ long฀
periods฀of฀time฀appeared฀to฀be฀more฀ethical฀than฀those฀with฀limited฀work฀experience.฀Weeks,฀Moore,฀and฀Longnecker฀
(1999)฀ found฀ that฀ practitioners฀ in฀ later฀
career฀ stages฀ displayed฀ higher฀ ethical฀
judgments฀ than฀ those฀ in฀ earlier฀ careers฀
stages,฀which฀supports฀the฀positive฀relation฀ between฀ years฀ of฀ full-time฀ work฀
experience฀and฀the฀individual’s฀ethicality.฀In฀an฀absence฀of฀a฀negative฀relation,฀
I฀propose฀the฀following฀hypothesis:

such฀a฀relation,฀I฀propose฀the฀following฀
hypothesis,฀which฀is฀similar฀to฀H4:
H6:฀ Students฀ with฀ more฀ part-time฀ work฀
experience฀are฀more฀ethical฀than฀฀those฀
with฀less฀part-time฀work฀experience.฀
College-Level฀Ethics฀Courses฀

In฀ addition฀ to฀ a฀ corporate฀ code฀ of฀
ethics,฀an฀accounting฀profession฀is฀governed฀ by฀ its฀ own฀ code฀ of฀ professional฀
ethics.฀ The฀ ethicality฀ of฀ the฀ profession฀
has฀ received฀ more฀ attention฀ from฀ the฀
public฀ and฀ regulators฀ because฀ of฀ the฀
accounting฀failures฀at฀Enron฀and฀WorldCom.฀Therefore,฀I฀propose฀a฀hypothesis฀
similar฀to฀H4:

Many฀ critics฀ have฀ suggested฀ that฀ a฀
lack฀of฀ethical฀education฀in฀business฀curricula฀ may฀ be฀ responsible฀ for฀ turning฀
out฀ managers฀ with฀ little฀ ethics฀ values฀
and฀ that฀ education฀ can฀ be฀ a฀ powerful฀
tool฀in฀shaping฀students’฀judgment฀about฀
what฀is฀right฀or฀wrong฀(Kohlberg,฀1984;฀
Rest,฀ 1988).฀ In฀ response,฀ the฀American฀
Assembly฀of฀Collegiate฀Schools฀of฀Business฀(AACSB)฀has฀suggested฀that฀ethics฀
be฀ taught฀ in฀ business฀ schools.฀ Others฀
have฀ argued฀ that฀ by฀ the฀ time฀ an฀ individual฀ reaches฀ adolescence,฀ his฀ or฀ her฀
ethicality฀has฀been฀formed฀and฀cannot฀be฀
changed฀ by฀ education฀ (Rohatyn,฀ 1988).฀
Arlow฀ (1991),฀ Borkowski฀ and฀ Ugras฀
(1992),฀ Davis฀ and฀ Welton฀ (1991),฀ and฀
Martin฀(1981,฀1982)฀have฀supported฀this฀฀
viewpoint฀ that฀ ethics฀ education฀ does฀
not฀ significantly฀ affect฀ students’฀ ability฀ to฀ correctly฀ assess฀ ethical฀ scenarios.฀
Alternatively,฀ Luthar,฀ DiBattista,฀ and฀
Gautschi฀ (1997),฀ Rest฀ (1988),฀ Salmans฀
(1987),฀and฀Steven,฀Harris,฀and฀Williamson฀ (1993)฀ have฀ documented฀ a฀ positive฀
influence฀of฀ethics฀education฀on฀students’฀
ethicality.฀ In฀ addition,฀ Weber’s฀ (1990)฀
literature฀ review฀ concluded฀ that฀ there฀
was฀ an฀ improvement฀ in฀ students’฀ ethical฀ awareness฀ and฀ reasoning฀ skills฀ right฀
after฀ taking฀ an฀ ethics฀ course฀ (Arlow฀ &฀
Ulrich,฀ 1983;฀ Boyd,฀ 1981,฀ 1982;฀ Stead฀
&฀ Miller,฀ 1988),฀ but฀ this฀ improvement฀
disappeared฀when฀measured฀4฀years฀later฀
(Arlow฀ &฀ Ulrich,฀ 1985).฀ In฀ an฀ absence฀
of฀a฀finding฀that฀ethics฀education฀lowers฀
students’฀ethicality,฀I฀propose฀the฀following฀hypothesis:

H5:฀Students฀with฀more฀accounting฀work฀
experience฀are฀more฀ethical฀than฀those฀
with฀less฀accounting฀experience.

H7:฀Students฀who฀took฀more฀college-level฀
ethics฀courses฀are฀more฀ethical฀than฀students฀who฀took฀fewer฀ethics฀courses.

Part-Time฀Work฀Experience

Workplace฀Ethics฀Training

Virtually฀ all฀ college฀ students฀ now฀
have฀or฀once฀had฀part-time฀employment.฀
Therefore,฀ it฀ is฀ worthwhile฀ to฀ examine฀ a฀ relation฀ between฀ part-time฀ work฀
experience฀ and฀ students’฀ ethicality.฀ In฀
an฀ absence฀ of฀ a฀ study฀ that฀ examines฀

Beu,฀ Buckley,฀ and฀ Harvey฀ (2003)฀
stated฀ that฀ training฀ could฀ be฀ used฀ to฀
increase฀ cognitive฀ moral฀ development฀
and฀decrease฀inappropriate฀competitive฀
desire฀ to฀ win฀ at฀ any฀ cost฀ as฀ a฀ means฀
of฀ enhancing฀ self-worth฀ feelings,฀ with฀

H4:฀ Students฀ with฀ more฀ full-time฀ work฀
experience฀are฀more฀ethical฀than฀those฀
with฀less฀full-time฀work฀experience.
Accounting฀Work฀Experience฀

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attendant฀ orientations฀ of฀ manipulation,฀
aggressiveness,฀ and฀ deceit฀ of฀ others.฀
Because฀ of฀ the฀ enactment฀ of฀ the฀ Sarbanes-Oxley฀Act฀of฀2002฀(2002),฀most฀
corporations฀have฀provided฀ethics฀training฀ to฀ their฀ employees.฀ For฀ example,฀
Raytheon฀ (Waltham,฀ MA)฀ makes฀ ethics฀ training฀ a฀ requirement฀ for฀ every฀
employee,฀ even฀ the฀ CEO.฀ Regardless฀
of฀ the฀ rapidly฀ increasing฀ popularity฀ of฀
workplace฀ ethics฀ training,฀ an฀ assessment฀of฀the฀effectiveness฀of฀workplace฀
ethics฀ training฀ has฀ received฀ only฀ limited฀ research฀ attention,฀ most฀ of฀ which฀
is฀ descriptive฀ and฀ focuses฀ on฀ specific฀
case฀studies฀or฀anecdotes.฀Delaney฀and฀
Sockell’s฀ (1992)฀ exceptional฀ largescale฀ survey฀ suggested฀ that฀ workplace฀
ethics฀ training฀ has฀ a฀ positive฀ effect฀ on฀
managers฀ because฀ the฀ training฀ educates฀ managers฀ on฀ how฀ to฀ react฀ when฀
confronted฀ with฀ workplace฀ dilemmas.฀
Myers฀(2003)฀suggested฀that฀companies฀
schedule฀ regular฀ refresher฀ ethics฀ training฀ courses฀ for฀ all฀ employees,฀ implying฀ that฀ ethics฀ training฀ is฀ perishable฀
because฀ people฀ tend฀ to฀ forget฀ and฀ that฀
the฀positive฀effect฀is฀more฀evident฀when฀
a฀person฀has฀more฀frequent฀ethics฀training.฀This฀discussion฀leads฀to฀the฀following฀hypothesis:฀
H8:฀Students฀with฀more฀workplace฀ethics฀ training฀ are฀ more฀ ethical฀ than฀
those฀with฀less฀training.
Moral฀Intensity฀
Jones฀ (1991)฀ suggested฀ that฀ characteristics฀ of฀ the฀ moral฀ issue฀ itself฀ (moral฀
intensity)฀ are฀ important฀ determinants฀ of฀
ethical฀ decision-making฀ and฀ behavior.฀
Moral฀ intensity฀ is฀ increased฀ if฀ the฀ consequences฀ of฀ an฀ action฀ create฀ greater฀
harm฀or฀greater฀benefit.฀Beu฀et฀al.฀(2003),฀
Singer฀ and฀ Singer฀ (1997),฀ and฀ Morris฀
and฀McDonald฀(1995)฀found฀that฀moral฀
intensity฀ of฀ an฀ ethics฀ issue฀ affects฀ students’฀ethical฀perception.฀Scenarios฀such฀
as฀those฀about฀accurate฀accounting฀(Scenario฀ 1),฀ proper฀ use฀ of฀ company฀ assets฀
(Scenario฀1),฀compliance฀with฀laws฀(Scenario฀ 1),฀ trading฀ on฀ inside฀ information฀
(scenario฀ 1),฀ and฀ reporting฀ illegal฀ and฀
unethical฀ behavior฀ (Scenario฀ 1)฀ reflect฀
low฀ moral฀ intensity,฀ whereas฀ scenarios฀
such฀as฀accurate฀accounting฀(Scenario฀2),฀
proper฀use฀of฀company฀assets฀(Scenario฀
2),฀ compliance฀ with฀ laws฀ (Scenario฀ 2),฀
฀

trading฀ on฀ inside฀ information฀ (Scenario฀
2),฀ and฀ reporting฀ illegal฀ and฀ unethical฀
behavior฀(Scenario฀2)฀reflect฀high฀moral฀
intensity.฀ The฀ following฀ hypothesis฀ is฀
useful฀for฀testing฀moral฀intensity:
H9:฀ Students฀ respond฀ more฀ ethically฀ to฀
the฀ high-moral-intensity฀ questions฀
scenarios฀ than฀ to฀ the฀ low-moralintensity฀scenarios.฀
METHOD
Participants
Participants฀ were฀ business฀ students฀
at฀ a฀ private฀ mid-Atlantic฀ university.฀
Business฀ students฀ were฀ the฀ focus฀
because฀ they฀ would฀ soon฀ enter฀ the฀
business฀ world฀ and฀ collectively฀ comprise฀the฀future฀corporate฀leaders฀who฀
regularly฀ face฀ a฀ number฀ of฀ ethical฀
dilemmas.฀ Participants฀ included฀ daytime฀and฀evening฀students.฀Participants฀
completed฀ scenario฀ questionnaires฀
during฀ regular฀ class฀ periods฀ with฀ a฀
business฀ professor฀ in฀ the฀ classroom฀
to฀provide฀instructions฀regarding฀their฀
rights,฀ which฀ included฀ completely฀
voluntary฀ participation฀ and฀ complete฀
anonymity.฀ There฀ were฀ 244฀ student฀
participants฀ who฀ provided฀ completed฀
and฀usable฀questionnaires.฀
Of฀these฀244฀participants,฀103฀(42.2%)฀
were฀ female฀ students,฀ and฀ 141฀ (57.8%)฀
were฀ male฀ students.฀ In฀ all,฀ 98฀ students฀
(40.2%)฀ were฀ accounting฀ majors,฀ and฀
146฀ students฀ (59.8%)฀ were฀ other฀ business฀ majors.฀ An฀ overwhelming฀ majority฀
of฀ 214฀ students฀ (87.7%)฀ had฀ an฀ American฀ cultural฀ background.฀ Full-time฀ work฀
experience฀ranged฀from฀0฀to฀30฀years฀with฀
a฀median฀of฀0฀years฀and฀a฀mean฀of฀1.72฀
years.฀ Part-time฀ work฀ experience฀ ranged฀
from฀ 0฀ to฀ 13฀ years฀ with฀ a฀ median฀ of฀ 5฀
years฀and฀a฀mean฀of฀4.23฀years.฀In฀all,฀102฀
students฀(41.8%)฀then฀or฀previously฀held฀
full-time฀employment฀positions,฀and฀225฀
students฀(92.62%)฀then฀or฀previously฀held฀
part-time฀employment฀positions.฀Only฀39฀
students฀(15.98%)฀then฀or฀previously฀had฀
accounting฀work฀experience฀with฀a฀mean฀
of฀0.32฀year฀and฀a฀maximum฀of฀16฀years.฀
In฀all,฀107฀students฀(43.85%)฀took฀ethics฀
courses,฀with฀a฀mean฀of฀0.74฀course฀and฀a฀
maximum฀of฀6฀courses.฀In฀all,฀97฀students฀
(39.75%)฀had฀workplace฀ethics฀trainings,฀
with฀a฀mean฀of฀0.79฀training฀and฀a฀maximum฀of฀10฀trainings.฀

Procedures
An฀ethical฀response฀was฀coded฀as฀1,฀and฀
an฀unethical฀response฀was฀coded฀as฀0.฀For฀
each฀ student,฀ I฀ added฀ coded฀ responses฀ to฀
the฀18฀questionnaire฀scenarios฀to฀determine฀
the฀ students’฀ overall฀ ethicality.฀ Logistic฀
regression฀is฀appropriate฀when฀the฀dependent฀ variable฀ is฀ a฀ dichotomous฀ or฀ ordinal฀
variable฀(as฀in฀the฀present฀study).฀I฀tested฀
H1฀ thru฀ H8฀ simultaneously฀ using฀ the฀ following฀ ordered-logistic฀ regression฀ model฀
with฀the฀eight฀explanatory฀variables:฀
ETHIC฀=฀a฀+฀b1GENDER฀+฀b2MAJOR฀
+฀ b3CULTURE฀ +฀ b4FTWORK฀
+฀ b5ACCWRK฀ +฀ b6PTWORK฀ +฀
b7ETHICEDU฀+฀b8ETHICTRAIN.
ETHIC฀ refers฀ to฀ student’s฀ overall฀
ethicality฀ (the฀ total฀ number฀ of฀ ethical฀
responses฀ to฀ the฀ 18฀ scenarios).฀ GENDER฀refers฀to฀1฀for฀female฀student฀and฀
0฀ for฀ male฀ student.฀ MAJOR฀ refers฀ to฀ 1฀
for฀ an฀ accounting฀ major฀ and฀ 0฀ otherwise.฀ CULTURE฀ refers฀ to฀ 0฀ if฀ student฀
was฀ born฀ in฀ the฀ United฀ States฀ or฀ came฀
to฀the฀United฀States฀before฀10฀years฀of฀
age,฀ and฀ 0฀ otherwise.฀ FTWORK฀ refers฀
to฀ years฀ of฀ full-time฀ work฀ experience.฀
ACCWRK฀ refers฀ to฀ years฀ of฀ accounting฀ work฀ experience.฀ PTWORK฀ refers฀
to฀ years฀ of฀ part-time฀ work฀ experience.฀
ETHICEDU฀ refers฀ to฀ the฀ number฀ of฀
college-level฀ethics฀courses฀taken.฀ETHICTRAIN฀refers฀to฀the฀number฀of฀workplace฀ethics฀trainings.
I฀ expected฀ all฀ variables฀ to฀ have฀ a฀
positive฀ coefficient฀ except฀ for฀ CULTURE,฀for฀which฀the฀present฀study฀had฀
no฀expectation฀regarding฀the฀sign฀of฀its฀
coefficient.฀I฀also฀used฀a฀similar฀logistic฀
regression฀ model฀ to฀ examine฀ students’฀
responses฀to฀each฀of฀the฀18฀scenarios.฀I฀
tested฀ H9฀ (moral฀ intensity)฀ by฀ comparing฀ the฀ percentage฀ of฀ ethical฀ responses฀
of฀a฀high-moral-intensity฀scenario฀with฀
that฀ of฀ a฀ low-moral-intensity฀ scenario฀
for฀each฀of฀the฀five฀pairs฀of฀scenarios.
RESULTS
Table฀1฀presents฀students’฀responses฀
to฀ the฀ 18฀ scenarios฀ grouped฀ by฀ the฀
nine฀ areas฀ of฀ corporate฀ code฀ of฀ ethics.฀ For฀ accurate฀ accounting฀ records,฀
an฀overwhelming฀majority฀of฀students฀
(93.4%)฀ would฀ not฀ honor฀ a฀ boss’s฀
request฀to฀sign฀and฀submit฀a฀purchase฀
July/August฀2009฀

361

TABLE฀1.฀Students’฀Responses฀to฀Ethics฀Scenarios฀From฀Areas฀of฀Corporate฀Codes฀of฀Ethics฀and฀Significant฀
Explanatory฀Variables฀for฀Each฀Scenario

Downloaded by [Universitas Maritim Raja Ali Haji] at 22:57 11 January 2016

฀
Area฀of฀corporate฀code฀of฀ethics
฀ Response฀item฀

Ethical฀
n฀

Accurate฀accounting฀records฀
฀ Will฀you฀honor฀your฀boss’s฀request฀of฀you฀to฀sign฀and฀฀
202฀
฀ ฀ submit฀a฀purchase฀order฀for฀his฀son’s฀$19.95฀gift?
฀ Will฀you฀honor฀your฀boss’s฀request฀of฀you฀to฀sign฀and฀
228฀
฀ ฀ submit฀a฀purchase฀order฀for฀his฀son’s฀$1,995฀gift?
฀ Will฀you฀try฀to฀record฀sales฀in฀the฀current฀year฀by฀
184฀
฀ ฀ asking฀the฀warehouse฀manager฀to฀promptly฀fulfill฀
฀
฀ ฀ next-year฀orders฀in฀order฀to฀meet฀this฀year’s฀target฀sales?
฀ Will฀you฀offer฀your฀wholesale฀customers฀an฀unusually฀big฀฀
128฀
฀ ฀ discount฀to฀induce฀them฀to฀buy฀more฀products฀than฀they฀
฀ ฀ can฀promptly฀resell?
Conflict฀of฀interest
฀ As฀a฀purchasing฀department฀director,฀will฀฀
96฀
฀ ฀ you฀accept฀a฀supplier’s฀lunch฀invitation?฀
฀
฀ ฀ ฀
฀
Confidential฀information
฀ Will฀you฀provide฀your฀sister฀with฀the฀name฀and฀฀
198฀
฀ ฀ address฀of฀customers฀of฀her฀competitor?฀
฀
Proper฀use฀of฀company฀assets฀
฀ After฀work฀hours฀or฀during฀lunch฀break,฀will฀you฀use฀฀
77฀
฀ ฀ your฀employer’s฀computer฀for฀personal฀purposes?฀
฀
฀ During฀work฀hours,฀will฀you฀use฀your฀employer’s฀
145฀
฀ ฀ computer฀for฀personal฀purposes?฀
฀
฀ Will฀you฀use฀your฀employer’s฀copy฀machine฀to฀copy฀
124฀
฀ ฀ your฀personal฀items?฀
฀
฀ Will฀you฀use฀your฀company’s฀credit฀card฀to฀pay฀for฀฀
238฀
฀ ฀ your฀family฀dinner?฀
฀
Compliance฀with฀laws
฀ Will฀you฀make฀$10฀bribery฀to฀the฀policeman฀in฀a฀foreign฀
140฀
฀ ฀ country฀where฀bribing฀a฀policeman฀is฀very฀common?฀
฀
฀ Will฀you฀agree฀to฀make฀the฀$1,000฀bribery฀to฀the฀Chinese฀tax฀
204฀
฀ ฀ authority฀to฀avoid฀being฀audited฀per฀your฀business฀partner’s฀advice?฀
Competition฀and฀fair฀dealing฀
฀ Will฀you฀recall฀the฀most฀popular฀product,฀which฀was฀฀
฀195฀
฀ ฀ advertised฀as฀100%฀lead฀free,฀but฀has฀a฀small฀trace฀฀
฀
฀ ฀ of฀lead฀within฀the฀required฀safety฀level?
Trading฀on฀inside฀information
฀ Will฀you฀sell฀your฀company’s฀stock฀that฀you฀own฀before฀a฀฀
134฀
฀ ฀ release฀to฀the฀public฀of฀the฀negative฀news฀about฀the฀company?฀
฀
฀ Will฀you฀try฀to฀profit฀from฀the฀imminent฀decline฀in฀stock฀฀
197฀
฀ ฀ price฀by฀buying฀a฀put฀option฀on฀the฀stock฀before฀a฀public฀฀
฀
฀ ฀ release฀of฀this฀news?฀
฀
Antinepotism฀policy
฀ Will฀you฀hire฀your฀niece฀instead฀of฀the฀other฀candidate?฀
155฀
฀ ฀ ฀
฀
Reporting฀illegal฀and฀unethical฀behavior
฀ Will฀you฀report฀to฀the฀company฀your฀close฀friend฀who฀used฀฀
34฀
฀ ฀ the฀company฀credit฀card฀to฀pay฀for฀his฀family฀dinner฀for฀฀
฀
฀ ฀ the฀first฀time?฀
฀
฀ Will฀you฀report฀to฀the฀company฀your฀close฀friend฀who฀has฀฀฀
159฀
฀ ฀ been฀using฀the฀company฀credit฀card฀to฀pay฀for฀his฀family฀฀
฀
฀ ฀ dinner฀whenever฀he฀eats฀out?฀฀

%฀

Unethical
n฀

%฀

Significant฀variables

82.8฀

42.0฀

17.2฀

FTWORK*,฀GENDER†

93.4฀

16.0฀

6.6฀

GENDER†,฀CULTURE†

75.4฀
฀

60.0฀
฀

24.6฀
฀

(PTWORK*),฀ETHICTRAIN*
฀฀FTWORK†,฀ACCWRK†

52.5฀

฀116.0฀

47.5฀

MAJOR*,฀FTWORK†

39.3฀
฀
฀

148.0฀
฀
฀

60.7฀
฀
฀

MAJOR**,฀GENDER**
฀฀(PTWORK*),฀FTWORK†,฀
฀฀ETHICEDU†

81.1฀
฀

46.0฀
฀

18.9฀
฀

MAJOR**,฀(ETHICEDU*)฀
฀฀ETHICTRAIN*

31.6฀
฀
59.4฀
฀
50.8฀
฀
97.5฀
฀

167.0฀
฀
99.0฀
฀
120.0฀
฀
6.0฀
฀

68.4฀
฀
40.6฀
฀
49.2฀
฀
2.5฀
฀

FTWORK*,฀(ETHICEDU**)฀

57.4฀
฀
83.6฀

104.0฀
฀
40.0฀

42.6฀
฀
16.4฀

PTWORK†

79.9฀
฀

49.0฀
฀

20.1฀
฀

CULTURE**,฀(PTWORK*)
฀฀MAJOR*,฀GENDER*

54.9฀
฀
80.7฀
฀
฀

110.0฀
฀
47.0฀
฀
฀

45.1฀

ACCWRK†฀

19.3฀
฀
฀

ACCWRK**,฀
฀฀GENDER*,฀CULTURE†
฀

63.5฀
฀

89.0฀
฀

36.5฀
฀

MAJOR**,฀GENDER*,฀
฀
฀฀ETHICTRAIN*,฀FTWORK†

13.9฀
฀
฀
65.2฀
฀

210.0฀
฀
฀
85.0฀
฀

86.1฀
฀
฀
34.8฀
฀

ETHICTRAIN*
฀฀(ETHICEDU†)
฀
GENDER**,
฀฀MAJOR†

GENDER*,฀(ETHICEDU†)
฀ ฀
GENDER**
฀ ฀ ฀
฀
(PTWORK†)
฀ ฀ ฀
฀

GENDER†

Note. Significant฀variables฀are฀presented฀in฀the฀order฀of฀their฀significance฀levels.฀Logistical฀regression฀analysis฀was฀used.฀Variables฀in฀parentheses฀
have฀a฀negative฀estimated฀coefficient.฀GENDER฀=฀1฀for฀female,฀0฀for฀male;฀MAJOR฀=฀1฀for฀an฀accounting฀major,฀0฀otherwise;฀CULTURE฀=฀1฀
if฀student฀was฀born฀in฀United฀States฀or฀came฀to฀United฀States฀before฀10฀years฀of฀age,฀0฀otherwise;฀FTWORK฀=฀the฀number฀of฀years฀of฀full-time฀
work฀experience;฀ACCWRK฀=฀the฀number฀of฀years฀of฀accounting฀work฀experience;฀PTWORK฀=฀the฀number฀of฀years฀of฀part-time฀work฀experience;฀ETHICEDU฀=฀the฀number฀of฀college-level฀ethics฀courses฀taken;฀ETHICTRAIN฀=฀the฀number฀of฀work-place฀ethics฀trainings.
†
p฀