This study aims to shed light on the role pay schemes and individual factors (i.e. long-term orientation) play in influencing managers’ ethical judgments on corporate social responsibility (CSR) overinvestment. Built on an egocentric concept, the study predicts that managers employed under different pay schemes and with different levels of long-term orientation will make different ethical judgments on such overinvestment. It employs an experimental approach, in which the pay scheme variable is divided into two types: an overinvestment-inducing one, and an overinvestment-hindering one. In measuring managers’ long-term orientation, the study adopts Bearden et al.’s (2006) measurement. It finds evidence that managers on an overinvestment-hindering pay scheme are more likely to consider overinvestment in CSR to be more unethical than those employed on an overinvestment-inducing scheme. Moreover, managers who have higher long-term orientation are more likely to judge overinvestment in CSR to be unethical. However, the study finds no evidence of the interaction effect of pay schemes and long-term orientation in affecting managers’ ethical judgment on overinvestment in corporate social responsibility.
Rumpun Ilmu
Akuntansi
Bahasa Asli/Original Language
English
Level
Internasional
Status
Dokumen Karya
No
Judul
Tipe Dokumen
Aksi
1
2018_Kusuma, Sholihin, Agritansia (2018)_Effect of Pay Schemes.pdf
