ArticlePublisher preview available

Ethical Awareness, Ethical Judgment and Whistleblowing: A Moderated Mediation Analysis

Authors:
  • FTD Institute
To read the full-text of this research, you can request a copy directly from the authors.

Abstract and Figures

This study aims to examine the ethical decision-making (EDM) model proposed by Schwartz (J Bus Ethics, doi: 10.1007/s10551-015-2886-8, 2016 ), where we consider the factors of non-rationality and aspects that affect ethical judgments of auditors to make the decision to blow the whistle. In this paper, we argue that the intention of whistleblowing depends on ethical awareness (EAW) and ethical judgment (EJW) as well as there is a mediation–moderation due to emotion (EMT) and perceived moral intensity (PMI) of auditors. Data were collected using an online survey with with 162 external auditors who worked on audit firms in Indonesia as well as 173 internal auditors working in the manufacturing and financial services. The result of multigroup analysis shows that emotion (EMT) can mediate the relationship between EAW and EJW. The nature of this relationship is more complex and then tested by adding moderating variables using consistent partial least squares approach. We found that EMT and PMI can improve the relationship between ethical judgments and whistleblowing intentions. These findings indicate that internal auditors are more likely to blow the whistle than external auditors; and reporting wrongdoing internally and anonymously are the preferred way of professional accountants to blow the whistle in Indonesia.
This content is subject to copyright. Terms and conditions apply.
ORIGINAL PAPER
Ethical Awareness, Ethical Judgment and Whistleblowing:
A Moderated Mediation Analysis
Hengky Latan
1,2
Charbel Jose Chiappetta Jabbour
3
Ana Beatriz Lopes de Sousa Jabbour
4
Received: 12 December 2016 / Accepted: 6 April 2017 / Published online: 18 April 2017
ÓSpringer Science+Business Media Dordrecht 2017
Abstract This study aims to examine the ethical decision-
making (EDM) model proposed by Schwartz (J Bus Ethics,
doi: 10.1007/s10551-015-2886-8,2016), where we con-
sider the factors of non-rationality and aspects that affect
ethical judgments of auditors to make the decision to blow
the whistle. In this paper, we argue that the intention of
whistleblowing depends on ethical awareness (EAW) and
ethical judgment (EJW) as well as there is a mediation–
moderation due to emotion (EMT) and perceived moral
intensity (PMI) of auditors. Data were collected using an
online survey with 162 external auditors who worked on
audit firms in Indonesia as well as 173 internal auditors
working in the manufacturing and financial services. The
result of multigroup analysis shows that emotion (EMT)
can mediate the relationship between EAW and EJW. The
nature of this relationship is more complex and then tested
by adding moderating variables using consistent partial
least squares approach. We found that EMT and PMI can
improve the relationship between ethical judgments and
whistleblowing intentions. These findings indicate that
internal auditors are more likely to blow the whistle than
external auditors; and reporting wrongdoing internally and
anonymously are the preferred way of professional
accountants to blow the whistle in Indonesia.
Keywords Whistleblowing Ethical decision making
Emotion Perceived moral intensity Professional
accountants Corporate governance
Introduction
Whistleblowing has gained the attention of the global
community and the media in recent years, partly because of
large awards offered by the Dodd-Frank Act of 2010 and
partly due to a case of fraud involving Olympus corpora-
tion and Michael Woodford who was fired when he
revealed payment irregularities (Archambeault and Webber
2015; Rao et al. 2011; MacGregor and Stuebs 2014). This
indicates that a whistleblower does not only arise from
inside the organization, but it can also come from outside,
and referred to as an external whistleblower (Maroun and
Atkins 2014b; Maroun and Gowar 2013).
An internal whistleblower can observe the various vio-
lations that occur within an organization such as discrim-
ination, corruption, cronyism or other unethical behavior.
Meanwhile, an external whistleblower can observe non-
compliance with the fulfillment of corporate social
responsibility and the environment (Culiberg and Mihelic
We thank two anonymous reviewers, Steven Dellaportas (editor) for
their valuable comments on prior versions of this paper.
&Hengky Latan
latanhengky@gmail.com; hlccorp776@gmail.com
Charbel Jose Chiappetta Jabbour
c.j.chiappettajabbour@stir.ac.uk
Ana Beatriz Lopes de Sousa Jabbour
ana.jabbour@strath.ac.uk
1
Department of Accounting, STIE Bank BPD Jateng, Jl.
Pemuda No 4 A, Semarang 50139, Indonesia
2
HLC Consulting, Jl. Kertanegara Selatan V No. 5B,
Semarang 50241, Indonesia
3
Stirling Management School, Centre for Advanced
Management Education (CAME), University of Stirling,
Stirling FK9 4LA, Scotland, UK
4
DMEM Department, University of Strathclyde, 75 Montrose
St, Glasgow G1 1XJ, UK
123
J Bus Ethics (2019) 155:289–304
DOI 10.1007/s10551-017-3534-2
Content courtesy of Springer Nature, terms of use apply. Rights reserved.
... The expansive review on ethical literature of O'Fallon and Butterfield (2005) proved the common use of ethical scenarios in examination of ethical decisionmaking, showing that 55% of the examined studies used a scenario approach. A row of studies explain the adequacy of vignette use by underlining that it enables the observation of judgement and behavior that cannot be observed under real conditions for ethical reasons (Aguinis & Bradley, 2014;Alleyne et al., 2018;Latan et al., 2019). Especially unethical behavior is hard to assess or observe in experimental settings and ethical reasons do not allow for manipulation to elicit unethical behavior (Alleyne et al., 2018;Latan et al., 2019). ...
... A row of studies explain the adequacy of vignette use by underlining that it enables the observation of judgement and behavior that cannot be observed under real conditions for ethical reasons (Aguinis & Bradley, 2014;Alleyne et al., 2018;Latan et al., 2019). Especially unethical behavior is hard to assess or observe in experimental settings and ethical reasons do not allow for manipulation to elicit unethical behavior (Alleyne et al., 2018;Latan et al., 2019). Several studies support the improved quality of examination by using a scenario approach (O'Fallon & Butterfield, 2005;Singhapakdi et al., 1996). ...
... Berdasarkan data tersebut dapat diartikan bahwa karyawan atau pegawai merupakan posisi kunci sebagai whistleblower atas tindak kecurangan yang terjadi dalam instansinya (Brown et al., 2016). Individu yang peduli pada tindak kecurangan dalam instansi akan dihadapkan pada dilema etika sehingga tidak semua berani untuk melaporkan tindak kecurangan yang diketahuinya (Jubb, 2000;Latan, Jabbour, et al., 2019a). Dilema etika akan memengaruhi kemauan individu untuk menjadi seorang whistleblower. ...
... Artinya, 9 orang tersebut memanfaatkan saluran whistleblowing eksternal untuk melaporkan indikasi tindakan kecurangan. Fakta ini sejalan dengan penelitian Latan, Jabbour, et al. (2019a) yang menemukan bahwa melaporkan kecurangan pada saluran internal dan tanpa nama (anonim) lebih dipilih oleh pegawai-pegawai di Indonesia. Hasil ini juga menguatkan keyakinan bahwa kemauan untuk melakukan whistleblowing meningkat di seluruh jenis instansi. ...
... Further, normed fit index (NFI) for these models were 0.90, 0.76 and 0.76, respectively. NFI values for mediation and moderation models are marginally significant as these were close to the satisfactory level of 0.80 (Latan et al., 2019). Both the SRMR and NFI results reveal that the data fit the model well. ...
... The model fit for the research model was assessed using the standardized root mean square residual (SRMR) and the normed fit index (NFI). The results revealed that the SRMR value was 0.054, lower than the recommended value of 0.08 (Benitez et al., 2020;Dash and Paul, 2021;Hu and Bentler, 1999), and the value of the NFI was 0.839, being close to the recommended value of 0.90 (Dash and Paul, 2021;Hu and Bentler, 1999), and the value is deemed to be acceptable in recent studies (Koay et al., 2021;Latan et al., 2017). Thus, the model fit is confirmed. ...
The purpose of this research is to examine the underlying mechanisms through which social media influencers' (SMI) content characteristics (information, design, and technology quality and creativity) influence consumers' online brand-related activities (COBRAs) (consume, contribute, and create) through parasocial relationships and wishful identification. Grounded in the integration of the two-step flow theory, social influence theory, and power theory, a conceptual model is proposed and empirically tested using a sample of 263 social media users who had followed at least one social media influencer on social media. We analyzed the data using partial least squares structural equation modeling (PLS-SEM) and necessary condition analysis (NCA). The results reveal that three of the four dimensions of SMI's content characteristics, namely design quality, technology quality, and creativity are significant predictors of parasocial relationships. Design quality and creativity are significant predictors of wishful identification. Parasocial relationships and wishful identification are also identified as significant predictors of COBRAs. The results of NCA analysis also identify the proposed content characteristics as necessary factors required to foster COBRAs. This study offers valuable insights into how social media influencers can position themselves to be more effective in promoting brands and products through the curation of their social media content.
... The results revealed that the value of SRMR was 0.058, being lower than the recommended value of 0.10 (Henseler et al., 2016;Hu and Bentler, 1998). The value of the NFI was 0.817 and was greater than the recommended value of 0.80 (Latan et al., 2019). Therefore, the model fit was confirmed. ...
Article
Full-text available
Purpose Grounded in uses and gratification theory (UGT) and observational learning theory (OLT), this study aims to understand the impact of motivational factors on consumer-influencer engagement behaviors (CIEBs). Motivating factors, including entertainment, information seeking, reward and social interaction, are regarded as antecedents of consumers' OLT, as manifested by CIEB dimensions, including consumption, contribution and creation, and subsequently drive consumer engagement with the endorsed brands. Design/methodology/approach A self-administered questionnaire was distributed to Malaysian social media users. A total of 263 responses were collected and analyzed using partial least squares structural equation modeling (PLS-SEM) to examine the impact of motivational factors on CIEBs. Findings The results show that the three dimensions of CIEBs can be predicted by different gratifications (information seeking, entertainment, reward and interaction). In addition, two of the CIEB dimensions, consumption and contribution, were found to have a significant positive influence on consumers' engagement with endorsed brands. Practical implications This study provides insights into how social media influencers (SMIs) could lead to CIEBs by creating entertaining and rewarding content that facilitates social interaction between consumers. SMIs and marketers that encourage consumers to browse, comment and share SMI-created posts will enhance consumer engagement with the endorsed brands, as engagement is driven by the consumption and contribution to SMI-created content. Originality/value SMI marketing is increasing, and many brands are beginning to rely more on SMIs to promote brands. Yet, there is a dearth of studies that have examined how SMIs play a role in affecting consumers' engagement with endorsed brands. This study contributes to the marketing literature by developing and empirically testing the research model. Results suggest that social interaction, reward and entertainment are key motivational factors that drive CIEBs, which, in turn, foster consumer engagement with endorsed brands.
... One of the notable features of the existing evidence in terms of the application of these theories is that they have mainly concentrated either on the individual or organisational factors that promote whistleblowing. From these various perspectives, among the factors identified as being associated with whistleblowing intentions are attitudes, perceived behavioural control, independence commitment, personal responsibility for reporting and personal cost of reporting (Alleyne et al., 2018;Latan et al., 2018), audit firm organisational structures, personal characteristics of whistleblowers and situational variables (Brennan and Kelly, 2007) and pressure or financial incentives, opportunity and rationalisation (Latan et al., 2019a). The act of whistleblowing may be perceived as a positive or negative deviant workplace behaviour, depending on the circumstances surrounding the disclosure of the organisational offence by the employee in question (Appelbaum et al., 2007). ...
Article
Purpose This study aims to examine the roles of perceived organisational support (POS), attitude and self-efficacy in understanding the external whistleblowing intentions among senior auditors through the lens of stimulus–organism–response theory. Design/methodology/approach This study uses data from 119 senior auditors in audit firms in Malaysia. POS is predicted to be a stimulus factor from the external environment that affects the attitude and self-efficacy (organism) of the auditors and reassures them to act to whistleblow (response). Findings POS has a significant impact on self-efficacy and on attitude. Self-efficacy is shown as a significant mediator between POS and external whistleblowing intentions, but there is no statistical support for self-efficacy having a mediating effect on the relationship between the attitude of senior auditors and external whistleblowing intentions. Practical implications The findings can assist accounting professional bodies in understanding the psychological behaviours of auditors that contribute to their intention to shine a light on wrongdoing in audit firms and in providing a better insight into the critical factors that could influence auditors to whistleblow. Originality/value This study is among the earliest to investigate the application of stimulus–organism–response theory in whistleblowing, and hence it illustrates how the theory can be applied in studies on the ethical behaviours of actors in professional careers. The findings shed light on the role of self-efficacy as a significant mediator between POS and external whistleblowing intentions.
... The geodesic discrepancy (d G ) is 0.880 (HI 95 = 22.746), and the unweighted least squares discrepancy (d ULS ) is 1.515 (HI 95 = 1.591) [117]. Moreover, the value of normed fit index (NFI) is 0.800, which is within a satisfactory level [118]. ...
Article
Full-text available
Social network sites (SNS) facilitate eWOM communication among consumers of different cultures. Building on contact theory and the theory of planned behavior, we propose a conceptual framework that integrates intercultural factors as predictors of minority consumers’ engagement with eWOM communicated by and to individuals of the dominant culture on social media. A partial least squares (PLS) analysis on data collected from the Israeli-Arab minority shows that intercultural factors (i.e., acculturation, social interaction, and language proficiency) are antecedents of minority consumer engagement with eWOM. However, this relationship is mediated by consumer beliefs (attitudes, subjective norms, and perceived behavioral control) concerning this behavior, and moderated by the cultural distance between minority and dominant culture consumers. The findings help marketers plan marketing communications that engage audiences meaningfully and generate positive eWOM when targeting ethnic-cultural minorities. The current study contributes to our understanding of minority consumers’ engagement with eWOM communicated by and to members of the hegemonic culture. It further contributes to consumer engagement theory and acculturation research by supporting the post-assimilationist view. The proposed model is highly valuable in light of the importance of the concept of consumer engagement in marketing research.
Article
Full-text available
Background: Many technology jurisdictions have peddled the narrative that the key determinant for an innovative and sustainable fourth industrial revolution (4IR) environment is possessing hard technical skills. Hard technical skills are important to design the actual 4IR-based applications. Postmodernity demands that appropriate soft skills complement the hard skills to effectively integrate technology into various socio-economic value chains. In fact, soft skills are slowly becoming one of the critical enablers to harness the promise of the 4IR. Objectives: This research article aimed to critically understand the soft skills considered to be essential in the South African context by different information and knowledge management (IKM) practitioners. The aims and objectives of the study were to fill the gap where other disciplines have specified soft skills whilst IKM does not. This study looked to identify soft skills to allow IKM practitioners an opportunity to identify and develop these skills. Method: This research was designed based on the Delphi study principles and further used a systematic and targeted literature review to allow the researchers to make logical conclusions deductively. The authors followed a multimethod approach and analysed data using content analysis. Results: The study results have demonstrated that soft skills are considered significantly more important than hard skills in South Africa. The study identified 57 total skills. However, only 17 had consensus from experts. Conclusion: This study provides insights into the critical success skills needed to harness the socio-economics brought about by the 4IR. Further studies are required in different contextual settings to understand the global skills pertinent to the 4IR.
Article
Aim/purpose – Internal whistleblowing is the most desirable form of reporting about wrongdoings for all kinds of organizations. The aim of this paper is to identify factors influencing the occurrence of internal whistleblowing and to provide recommendations for practitioners on how to encourage employees to report wrongdoings to an organiza- tion. Design/methodology/approach – The fundamental article database has been construct- ed with the use of ProQuest, EBSCO and Taylor & Francis databases. The timespan for the research was from 1990 to 2022. The papers for the fundamental database were found within the utilization of two words “whistleblowing” in titles and “internal” in abstracts. Next, the database was broadened by snowball review. Findings – Identified factors important for the occurrence of internal whistleblowing in an organization were assigned to one of the following areas: ethics, leadership, poli- cies and procedures, retaliations and safeguards, social climate, organizational justice, education and training, reporting channels, communication, additional motivation, organization’s size and structure, audit committee. Research implications/limitations – For researchers – the paper provides a picture of research on internal whistleblowing: identified factors influencing internal whistleblow- ing, popularity of exploring problems, and utilizing research methods. For practitioners – the paper provides practical implications (based on current knowledge) important for implementing and managing organizational whistleblowing systems in the organization of private and public sectors. Originality/value/contribution – The main contribution of this work states the frame- work of factors affecting internal whistleblowing, which was constructed on the basis of a systematic review of the scientific literature. Moreover, the paper provides guidelines for practitioners. Keywords: internal whistleblowing, factors, effectiveness, systematic review. JEL Classification: K22, L50, M10, M12, M14.
Article
Full-text available
Purpose The ethics literature has focused on the influence of self-construal dimensions on unethical decision-making. However, the literature is unclear about why these self-construal dimensions (Independent-self, Relational-self, Collective-self) impact differently on unethical decision-making. Based on the theory of cooperation and competition, this study empirically examines the mediating role of competitive orientation and addresses the theoretically unexplained question of why self-construal dimensions influence differently on unethical decision-making. Design/methodology/approach Based on the deductive approach, a quantitative research study was conducted on the Sri Lankan banking industry because there have been many instances of unethical behavior reported in this sector lately. Data were collected from 305 bank branch managers using a structured survey questionnaire. Findings The findings revealed that competitive orientation mediates the self-construal dimensions and explained that competitive orientation is one reason why independent-self, relational-self and collective-self influence differently on unethical decision-making. Originality/value This paper addresses the unanswered question of why self-construal dimensions relate to unethical decision-making differently.
Chapter
Full-text available
Partial least squares structural equation modeling (PLS-SEM) is one of the options used to analyze mediation effects. Over the past few years, the methods for testing mediation have become more sophisticated. However, many researchers continue to use outdated methods to test mediation effects in PLS-SEM, which can lead to erroneous results in some cases. One reason for the use of outdated methods is that PLS-SEM tutorials do not draw on the newest statistical findings. This chapter illustrates how to perform modern procedures in PLS-SEM by challenging the conventional approach to mediation analysis and providing better alternatives. These novel methods offer a wide range of testing options (e.g., multiple mediators) that go beyond simple mediation analysis alternatives, helping researchers to discuss their studies in a more accurate way. This chapter seeks to illustrate and help to operationalize the mediation in Nitzl, Roldán and Cepeda's (2016) paper about mediation in PLS, published in Industrial Management & Data Systems, with examples of two potential mediations: a multiple mediation with two mediators, and a multi-step multiple mediation.
Book
Full-text available
Partial least squares structural equation modeling (PLS-SEM) is one of the options used to analyze mediation effects. Over the past few years, the methods for testing mediation have become more sophisticated. However, many researchers continue to use outdated methods to test mediation effects in PLS-SEM, which can lead to erroneous results in some cases. One reason for the use of outdated methods is that PLS-SEM tutorials do not draw on the newest statistical findings. This chapter illustrates how to perform modern procedures in PLS-SEM by challenging the conventional approach to mediation analysis and providing better alternatives. These novel methods offer a wide range of testing options (e.g., multiple mediators) that go beyond simple mediation analysis alternatives, helping researchers to discuss their studies in a more accurate way. This chapter seeks to illustrate and help to operationalize the mediation in Nitzl, Roldán and Cepeda's (2016) paper about mediation in PLS, published in Industrial Management & Data Systems, with examples of two potential mediations: a multiple mediation with two mediators, and a multi-step multiple mediation.
Article
This article addresses a significant gap in the theoretical literature on marketing ethics. This gap results from the lack of an integrated framework which clarifies and synthesizes the multiple variables that explain how marketers make ethical/unethical decisions. A contingency framework is recommended as a starting point for the development of a theory of ethical/unethical actions in organizational environments. This model demonstrates how previous research can be integrated to reveal that ethical/unethical decisions are moderated by individual factors, significant others within the organizational setting, and opportunity for action.
Book
Importance-performance map analysis (IPMA) combines PLS-SEM estimates, indicating the importance of an exogenous construct’s influence on another endogenous construct of interest, with an additional dimension comprising the exogenous construct’s performance in a two-dimensional map. From a practical point of view, IPMA contributes to more rigorous management decision-making. The basic principles of IPMA are well understood, yet the inter-construct relationships are typically modeled as being linear. An abundance of empirical literature indicates that this may lead to erroneous conclusions. In an IPMA context, this can lead to false conclusions regarding an exogenous construct’s importance. Although several approaches exist to account for nonlinear inter-construct relationships, these approaches are characterized by drawbacks impeding their applications in practice. Overall, this serves as a backdrop for the current chapter which aims to contribute to (PLS-SEM) IPMA theory in the following ways. First, we provide an integrative framework to guide IPMAs using PLS-SEM. Second and synergistically with the first contribution, we introduce a so-called log-log model that allows to capture the most common functional forms (i.e., both linear and nonlinear) without the need to make a priori assumptions about the correct functional form specification. Third, a comprehensive empirical application is provided that illustrates our proposed IPMA framework as well as the proposed log-log model to more adequately capture the nature of the PLS-SEM relationships ultimately defining the IPMA’s importance dimension.
Chapter
Partial least squares (PLS) path modeling is a variance-based structural equation modeling technique that is widely applied in business and social sciences. It is the method of choice if a structural equation model contains both factors and composites. This chapter aggregates new insights and offers a fresh look at PLS path modeling. It presents the newest developments, such as consistent PLS, confirmatory composite analysis, and the heterotrait-monotrait ratio of correlations (HTMT). PLS path modeling can be regarded as an instantiation of generalized canonical correlation analysis. It aims at modeling relationships between composites, i.e., linear combinations of observed variables. A recent extension, consistent PLS, makes it possible to also include factors in a PLS path model. The chapter illustrates how to specify a PLS path model consisting of construct measurement and structural relationships. It also shows how to integrate categorical variables. A particularly important consideration is model identification: Every construct measured by multiple indicators must be embedded into a nomological net, which means that there must be at least one other construct with which it is related. PLS path modeling results are useful for exploratory and confirmatory research. The chapter provides guidelines for assessing the fit of the overall model, the reliability and validity of the measurement model, and the relationships between constructs. Moreover, it provides a glimpse on various extensions of PLS, many of which will be described in more detail in later chapters of the book.
Chapter
This book chapter identifies the importance and different uses for multigroup analysis, such as research interests in cross-cultural or gender differences. Multigroup analysis via partial least squares structural equations modeling, which tests a single structural relationship at a time, is an effective way to evaluate moderation across multiple relationships versus standard moderation. Step-by-step instructions and guidelines using SmartPLS 3.0 are provided using a sample dataset. The instructions include an assessment of the measurement characteristics of the constructs by including the MICOM procedure, which adds an additional level of accuracy. Examples of both positive and negative outcomes as well as potential solutions to problems are provided in order to help users understand how to apply multigroup analysis to their own dataset. By using multigroup analysis, researchers are able to uncover differences of subsamples within the total population that is not evident when examined as a whole. Researchers having the ability to run multigroup analysis considerably improve the likelihood of identifying significant and meaningful differences in various relationships across group-specific results.
Chapter
Importance-performance map analysis (IPMA) combines PLS-SEM estimates, indicating the importance of an exogenous construct’s influence on another endogenous construct of interest, with an additional dimension comprising the exogenous construct’s performance in a two-dimensional map. From a practical point of view, IPMA contributes to more rigorous management decision-making. The basic principles of IPMA are well understood, yet the inter-construct relationships are typically modeled as being linear. An abundance of empirical literature indicates that this may lead to erroneous conclusions. In an IPMA context, this can lead to false conclusions regarding an exogenous construct’s importance. Although several approaches exist to account for nonlinear inter-construct relationships, these approaches are characterized by drawbacks impeding their applications in practice. Overall, this serves as a backdrop for the current chapter which aims to contribute to (PLS-SEM) IPMA theory in the following ways. First, we provide an integrative framework to guide IPMAs using PLS-SEM. Second and synergistically with the first contribution, we introduce a so-called log-log model that allows to capture the most common functional forms (i.e., both linear and nonlinear) without the need to make a priori assumptions about the correct functional form specification. Third, a comprehensive empirical application is provided that illustrates our proposed IPMA framework as well as the proposed log-log model to more adequately capture the nature of the PLS-SEM relationships ultimately defining the IPMA’s importance dimension.
Chapter
This review summarizes and critiques the empirical ethical decision-making literature from 1996 to 2003. One hundred and seventy-four articles were published in top business journals during this period. Tables are included that summarize the findings by dependent variable – awareness, judgment, intent, and behavior. We compare this review with past reviews in order to draw conclusions regarding trends in the ethical decision-making literature and to surface directions for future research.
Chapter
This study represents an improvement in the ethics scales inventory published in a 1988 Journal of Business Ethics article. The article presents the distillation and validation process whereby the original 33 item inventory was reduced to eight items. These eight items comprise the following ethical dimensions: a moral equity dimension, a relativism dimension, and a contractualism dimension. The multidimensional ethics scale demonstrates significant predictive ability.
Article
Abstract Purpose – This paper test the conceptual framework that describes the relationship between environmental strategy, environmental management accounting and environmental performance. In this paper, we argue that the environmental strategy can directly influence the environmental performance and / or through environmental management accounting. Design/methodology/approach – This paper examines the survey responses of general managers, operations managers, financial managers, and environmental managers in ISO 14001 certified company listed on the Indonesia Stock Exchange. The hypothesis was tested using a Consistent Partial Least Squares (PLSc) approach through the bias-corrected and accelerated (BCA) bootstrap confidence intervals to test the significance between variables. Findings – In general, the proposed framework obtains adequate goodness of fit statistics (GoF). Furthermore, the results support the argument that there is a positive and significant relationship between environmental strategies on the environmental performance of companies. However, the role of environmental management accounting can mediate the relationship between the both. Research limitations/implications – Limitations of this study relates to the small sample size, where environmental issues are still regarded as confidential. The causality relationship cannot be confirmed for this result. Practical implications – This result could be a specific reference to policy making company in order to improve their environmental performance continuously. Originality/value – This study contributes to the corporate environmental accounting literature to provide empirical evidence linking environmental strategy with environmental performance through the implementation of environmental management accounting.