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Improving Ethics: Extending the Theory of Planned Behavior to Include

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Improving Ethics: Extending the Theory of Planned Behavior to Include Improving Ethics: Extending the Theory of Planned Behavior to Include Moral Disengagement Josh Cieslewicz, Greg Burton and Erv Black Abstract We extend the Theory of Planned Behavior (TPB) for ethics in the workplace. Using a path modeling methodology, we find evidence that, for ethics, moral disengagement is an antecedent to the TPB predictors of attitude, subjective norms, and perceived behavioral control (PBC). We show that the TPB predictors mediate the influence moral disengagement has on ethical behavioral intentions. Thus, to improve ethical behavior, reducing moral disengagement is critical. We find support for including both types of PBC (self-efficacy and locus of control) when modeling ethical behavior. We use four ethics scenarios and international data to test this model. We also evaluate potential positive influences on ethics in the workplace and find that recency of ethics training interacts with religiosity and activates it to reduce moral disengagement. We also find that principles-based ethics training enhances professionals’ self- efficacy to behave ethically. Experience, including time as a member in a professional accounting organization, increases both locus of control and self-efficacy to behave ethically. These variables—recency of ethical training, religiosity, principles-based professional ethics training, and experience—influence parts of the core TPB model, which in turn lead to improved ethical behavioral intentions. KEY WORDS: moral disengagement, theory of planned behavior, ethics, principles-based ethics training 1. Introduction The Theory of Planned Behavior (TPB) is a well-studied theory that has been used to measure the intention to behave ethically in many disciplines (see, for example, Chang, 1998; Sutton, 1998; Armitage and Conner, 2001; and more recently, Alleyne et al. 2018; Seitz, 2020). While the TPB incorporates specific antecedents to behavioral intention, we extend the model and show that prior TPB ethics studies have omitted an important precursor to ethical behavior: moral disengagement. We start with the TPB model proposed by Ajzen (1991) and later clarified by Ajzen (2002) and add measures of moral disengagement discussed by Bandura (1990a, 1990b, 1999). At a theoretical level, we expect that moral disengagement will influence ethical intentions of practicing accountants through the attitudes, subjective norms, and perceived behavioral control constructs, which we hypothesize mediate ethical intentions in the TPB framework. Moral disengagement is the cognitive process individuals use to avoid the self- condemnation that ensues from contemplating or doing something that they know is wrong (Moore et al. 2012). We show that there are antecedents that can reduce an individual’s propensity to morally disengage when facing ethical dilemmas. Using a path modeling methodology, we extend the TPB for ethics studies, and we also identify ways in which the core TPB predictor variables (attitude, subjective norms, and perceived behavioral control) can be influenced to result in improved intention to be ethical and, ultimately, ethical behavior. We find that the TPB predictor variables mediate the relationship between moral disengagement and ethical intentions. In our expanded model, we also find that moral disengagement influences the TPB variables which in turn influence ethical intentions. We also find that ethics training and religiosity reduce an individual’s propensity to morally disengage. Based on our findings, we 1 recommend that moral disengagement be combined with the TPB when the TPB is used to model ethical behavior. One of the contributions of our study is expanding the basic TPB theoretical model used in studying ethical behavior. We combine the TPB, moral disengagement, and both PBC constructs—PBC locus of control and PBC self-efficacy. We test the model across four different ethics scenarios. We use international data that we gather from practicing accountants that, on average, have a relatively high level of experience with ethics training and ethics expectations. Furthermore, we contribute by identifying factors that indirectly influence ethical intentions by influencing components of this expanded model. We also expect other constructs in our model, namely the extent of professional work experience and having formal professional ethics training, to reduce unethical intentions through influencing the TPB predictor variable of perceived behavioral control (PBC). Unlike other TPB ethics studies, we operationalize PBC with two variables, PBC locus of control and PBC self- efficacy. We base our inclusion of the two PBC variables on work by Ajzen (2002). In that study, Ajzen concluded that PBC has these two subcomponents, one characterized by self- efficacy and one by locus of control. We find that the extent of professional experience positively influences PBC locus of control and PBC self-efficacy. Likewise, we find some support that principles-based professional ethics training positively influences PBC self-efficacy. Consequently, we suggest that this refinement in the application of the TPB model for ethics studies will more closely capture the intent to behave ethically. This increase in precision may reduce problems observed in some prior studies wherein PBC seemingly has no effect. 2 We expect that accountants with recent principles-based professional ethics training will have lower moral disengagement1. We further postulate that beliefs and adherence to religious practices should generally lead a person to reduce moral disengagement. In considering these two variables together—religiosity and recent professional ethics training—we expect that recent professional ethics training will amplify the effect of religiosity on moral disengagement. Accordingly, we investigate whether religiosity’s interaction with recent professional ethics training reduces moral disengagement. We find support for this expected relationship. Understanding how recent professional ethics training improves ethical behavioral intentions is complex and indirect. We find that recent professional ethics training reduces an individual’s moral disengagement. Reducing moral disengagement leads to improved attitudes, subjective norms, and perceptions of control over behaving ethically. All these factors in turn influence ethical behavioral intentions. Furthermore, when there has been recent professional ethics training and the particular person experiencing it considers herself or himself religious, the recency effect is even stronger. Finally, experience, including time being a member of a professional accounting association such as the Association of Chartered Certified Accountants (ACCA) or the Institute of Chartered Accountants in England and Wales (ICAEW), leads to an improved sense that one has some say over being ethical (PBC locus of control), as well as a belief that one can be ethical (PBC self-efficacy). Ultimately, the result is improved ethical intentions.2 These findings have bearing on decisions about requiring repetition of ethics 1 We refer to "principles-based professional ethics training” as “professional ethics training” in the remainder of this study. 2 While we would like to be able to study actual unethical behavior across a wide spectrum of real accounting situations, the details of most unethical behavior is not made public. This is a limitation of our study; however, our reliance on the TPB counters this weakness to some extent as explained further in the text. 3 training, the type of ethics training to invest in, and the value that should be placed on participating in professional accounting organizations. Accountants regularly work with confidential financial and nonfinancial personal and company information. Stakeholders must have confidence that accountants will act in their responsibilities with strict adherence to professional codes of conduct that include professional values, attitudes, and ethics (IAESB, 2015; Jakubowsdki et al. 2002). Consequently, standards for ethical conduct in the accounting professional are extensive (see, for example IESBA 2018). The accounting profession relies on the accountant’s ability to act ethically, which increases the public’s trust and safeguards the profession’s reputation. The accounting profession uses education, training, rules, and examinations to engender ethical behavior. Ethical lapses occur through blatant acts of fraud and intentionally misstating financial statements or tax returns and less observable actions such as those that violate client confidentiality, engage in collusive behavior, result in dishonest communications with clients, or pad expenses for personal gain. The focus of this paper is to create a model that explains the components of ethical behavior and evaluates the constructs that influence the commitment to act ethically. While many accountants anticipate they will encounter ethical dilemmas during their careers, most do not expect that they will have ethical lapses (Moore et al. 2006). However, ethical lapses do occur. Detert et al. instructed that “if organizations knew more about whether some individuals were more predisposed to moral disengagement than others, perhaps they could target resources toward improving these individuals’ decision making processes” (p. 374). Consequently, having a theory that predicts ethical behavior will allow for preemptive and targeted interventions resulting in increased ethical behavior. 4 2. The Theory of Planned Behavior and Moral Disengagement Theory of Planned Behavior
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