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Social Cognitive Theory: The Antecedents and Effects of Ethical Climate Fit on Organizational Attitudes of Corporate Accounting Professionals—A Reflection of Client Narcissism and Fraud Attitude Risk

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  • Madeline Domino
  • Stephen Wingreen
  • James Blanton

Abstract

The rash of high-profile accounting frauds involving internal corporate accountants calls into question the individual accountant’s perceptions of the ethical climate within their organization and the limits to which these professionals will tolerate unethical behavior and/or accept it as the norm. This study uses social cognitive theory to examine the antecedents of individual corporate accountant’s perceived personal fit with their organization’s ethical climate and empirically tests how these factors impact organizational attitudes. A survey was completed by 203 corporate accountants to assess their perception of relevant variables. The results of the structural equation model indicate three significant antecedents relating to ethical climate fit: higher internal levels of locus of control; greater numbers of prior job changes; and higher perceptions of an increasingly better fit with the firm’s ethical climate (e.g., fit trend). Our results also indicate that higher levels of perceived fit to the ethical climate of a firm are associated with higher levels of perceived job satisfaction and organizational commitment. We also theorize that perceptions of an organization’s ethical climate may be reflections of client narcissism and serve a potential indicator of fraud risk. This is an important topic of study, since current auditing standards call for auditors to examine organizational attitudes toward fraud, but offer minimal guidance in doing so. Copyright Springer Science+Business Media Dordrecht 2015

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  • Madeline Domino & Stephen Wingreen & James Blanton, 2015. "Social Cognitive Theory: The Antecedents and Effects of Ethical Climate Fit on Organizational Attitudes of Corporate Accounting Professionals—A Reflection of Client Narcissism and Fraud Attitude Risk," Journal of Business Ethics, Springer, vol. 131(2), pages 453-467, October.
    • Handle: RePEc:kap:jbuset:v:131:y:2015:i:2:p:453-467
    DOI: 10.1007/s10551-014-2210-z
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    References listed on IDEAS

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    Cited by:

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    2. Saurabh Ahluwalia & O. C. Ferrell & Linda Ferrell & Terri L. Rittenburg, 2018. "Sarbanes–Oxley Section 406 Code of Ethics for Senior Financial Officers and Firm Behavior," Journal of Business Ethics, Springer, vol. 151(3), pages 693-705, September.
    3. Muhammad Tanveer & Abdul-Rahim Ahmad & Haider Mahmood & Ikram Ul Haq, 2021. "Role of Ethical Marketing in Driving Consumer Brand Relationships and Brand Loyalty: A Sustainable Marketing Approach," Sustainability, MDPI, vol. 13(12), pages 1-17, June.
    4. Deqiang Deng & Chenchen Ye & Fan Wu & Yijing Guo & Hao Li & Changsheng Wang, 2023. "Effect of organizational ethical self-interest climate on unethical accounting behaviour with two different motivations in China: the moderating effect of Confucian ShiZhong Thinking," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    5. Frerich Buchholz & Kerstin Lopatta & Karen Maas, 2020. "The Deliberate Engagement of Narcissistic CEOs in Earnings Management," Journal of Business Ethics, Springer, vol. 167(4), pages 663-686, December.
    6. Mulki, Jay & Lassk, Felicia G., 2019. "Joint impact of ethical climate and external work locus of control on job meaningfulness," Journal of Business Research, Elsevier, vol. 99(C), pages 46-56.
    7. B. Parker Ellen & Christian Kiewitz & Patrick Raymund James M. Garcia & Wayne A. Hochwarter, 2019. "Dealing with the Full-of-Self-Boss: Interactive Effects of Supervisor Narcissism and Subordinate Resource Management Ability on Work Outcomes," Journal of Business Ethics, Springer, vol. 157(3), pages 847-864, July.

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