Using Hofstede's culture theory (1980, 2001 Culture's Consequences: Comparing Values, Behaviours, Institutions, and Organizations Across Nation. Sage, NewYork), the current study incorporates the moral development (e.g. Thorne, 2000; Thorne and Magnan, 2000; Thorne et al., 2003) and multidimensional ethics scale (e.g. Cohen et al., 1993; Cohen et al., 1996b; Cohen et al., 2001; Flory et al., 1992) approaches to compare the ethical reasoning and decisions of Canadian and Mainland Chinese final year undergraduate accounting students. The results indicate that Canadian accounting (...) students' formulation of an intention to act on a particular ethical dilemma (deliberative reasoning) as measured by the moral development approach (Thorne, 2000) was higher than Mainland Chinese accounting students. The current study proposes that the five factors identified by the multidimensional ethics scale (MES), as being relevant to ethical decision making can be placed into the three levels of ethical reasoning identified by Kohlberg's (1958, The Development of Modes of Moral Thinking and Choice in the Years Ten to Sixteen. University of Chicago, Doctoral dissertation) theory of cognitive moral development. Canadian accounting students used post-conventional MES factors (moral equity, contractualism, and utilitarianism) more frequently and made more ethical audit decisions than Chinese accounting students. (shrink)

Recent incidences of fraud and the growing globalization of business have focused attention on the effect of culture on ethical decision making within organizations. Because fraud can be extremely costly and is more likely to be committed by employees than persons external to the organization, employees willing to report un-ethical acts are an important supplemental control tool. The current study provides evidence of the effects of culture (Canadian and Chinese) and the type of reporting (whistle-blowing and peer reporting) on reporting (...) unethical acts within organizations. Chinese and Canadian participants were asked to respond to scenarios describing unethical acts committed within organizations. Results indicate that Chinese are more likely to report the unethical acts of peers than Canadians. Chinese also appear more likely to report the unethical acts of peers than supervisors. The results also suggest that Graham’s model of principled organizational dissent may not be applicable to Chinese and perhaps other non-Western cultures. (shrink)

Empowerment and teamwork are buzzwords of progressive human resource practices. Along with these new job design methods come reduced hierarchical control mechanisms. In light of recent ethical scandals, there is considerable concern regarding the effectiveness of the control systems of these more recent work designs. This study compared the willingness of participants to report unethical behavior when presented with work scenarios in which the perpetrator was in the relative position of team member, peer, or subordinate and in cohesive or non-cohesive (...) conditions of relational closeness. After accounting for the covariates, both main effects and interaction effects were found, indicating that reporting behavior was influenced by relative position and relational closeness. (shrink)