Document Type
Journal article
Source Publication
Accounting, Organizations & Society
Publication Date
10-1-2008
Volume
33
Issue
7
First Page
825
Last Page
835
Abstract
Much concern has been expressed in recent years regarding the state of business ethics in the People's Republic of China, and it has been suggested that unethical behavior is common both in the business community and in accounting firms. Despite such concerns, very little empirical research has been done on ethics in the Chinese public accounting profession, and no previous study has examined the ethical culture or climate in Chinese CPA firms. The current paper reports the results of a preliminary study of the ethical climate in local and international CPA firms operating in China, and the influence of ethical climate and personal ethical orientations on decision-making. Contrary to expectations, the perceived ethical climate in local firms was not more negative; however, auditors employed by local firms judged questionable actions as more ethical and indicated a higher likelihood of committing similar actions. Consistent with our hypotheses, perceptions of the ethical climate in one's organization had a significant effect on intentions to commit ethically questionable acts. In addition, high relativists (who tend to reject broad moral principles in favor of situational analysis) were significantly influenced by the perceived organizational ethical climate, but low relativists were not similarly influenced.
DOI
10.1016/j.aos.2007.08.002
Print ISSN
03613682
E-ISSN
18736289
Publisher Statement
Copyright © Emerald Group Publishing Limited
Access to external full text or publisher's version may require subscription.
Full-text Version
Pre-print
Language
English
Recommended Citation
Shafer, W. E. (2008). Ethical climate in Chinese CPA firms. Accounting, Organizations & Society, 33(7), 825-835. doi: 10.1016/j.aos.2007.08.002