Skip to main content
SpringerLink
Log in

The Benefits of Auditors’ Sustained Ethical Behavior: Increased Trust and Reduced Costs

  • Review Paper
  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Studies demonstrating the benefits of ethical behavior at an individual level are scarce. The business ethics literature centers its analysis on unethical behaviors and their consequences, rather than ethical behaviors and their benefits. There is now considerable debate on the role of auditors in society and the function of accounting firms in the free market capitalist system. Specifically, the eminently ethical nature of the auditor’s work has been highlighted. Therefore, the aim of our paper is to show the impact of auditors’ sustained ethical behavior: the trust it generates. This trust results in considerable benefits for the firm due to a reduction in the costs of the partner’s supervision of the auditor. The methodology chosen to validate these claims is a survey of partner of the audit firm in auditing companies. The results of this research confirm the hypotheses raised in the theoretical model.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

References

  • Adams, M. B. (1994). Agency theory and the internal audit. Managerial Auditing Journal, 9(8), 8–12.

    Google Scholar 

  • Agoglia, C. P., Hatfield, R. C., & Lambert, T. A. (2015). Audit team time reporting: An agency theory perspective. Accounting, Organizations and Society, 44, 1–14.

    Google Scholar 

  • Akaah, I. P. (1996). The influence of organizational rank and role on marketing professionals’ ethical judgments. Journal of Business Ethics, 15(6), 605–613. https://doi.org/10.1007/BF00411794.

    Article  Google Scholar 

  • Akaah, I. P., & Lund, D. (1994). The influence of personal and organizational values on marketing professionals’ ethical behavior. Journal of Business Ethics, 13(6), 417–430.

    Google Scholar 

  • Anderson, J. C., & Narus, J. A. (1990). A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing, 54(1), 42–58. https://doi.org/10.2307/1252172.

    Article  Google Scholar 

  • Anderson, E., & Oliver, R. L. (1987). Perspectives on behavior-based on versus outcome-based salesforce control systems. Journal of Marketing, 51(4), 76–88.

    Google Scholar 

  • Ardelean, A. (2013). Auditors’ ethics and their impact on public trust. Procedia: Social and Behavioral Sciences, 92, 55–60. https://doi.org/10.1016/j.sbspro.2013.08.637.

    Article  Google Scholar 

  • Atuahene-Gima, K., & Li, H. (2002). When does trust matter? Antecedents and contingent effects of supervisee trust on performance in selling new products in China and the United States. Journal of Marketing, 66(3), 61–81. https://doi.org/10.1509/jmkg.66.3.61.18501.

    Article  Google Scholar 

  • Babakus, E., Cravens, D. W., Grant, K., Ingram, T. N., & LaForge, R. W. (1996). Investigating the relationships among sales, management control, sales territory design, salesperson performance, and sales organization effectiveness. International Journal of Research in Marketing, 13(4), 345–363. https://doi.org/10.1016/S0167-8116(96)00016-X.

    Article  Google Scholar 

  • Baïada-Hirèche, L., & Garmilis, G. (2016). Accounting professionals’ ethical judgment and the institutional disciplinary context: A French–US comparison. Journal of Business Ethics, 139(4), 639–659.

    Google Scholar 

  • Baldauf, A., Cravens, D. W., & Piercy, N. F. (2005). Sales management control research—Synthesis and an agenda for future research. Journal of Personal Selling and Sales Management, 25(1), 7–26. https://doi.org/10.1080/08853134.2005.10749044.

    Article  Google Scholar 

  • Becerra, M., & Gupta, A. K. (1999). Trust within the organization: Integrating the trust literature with agency theory and transaction costs economics. Public Administration Quarterly, 23(2), 177–203.

    Google Scholar 

  • Becker, J.-M., Hai, A., & Rigdon, E. (2013). Predictive validity and formative measurement in structural equation modeling: Embracing practical relevance. In Proceedings of the International Conference on Information Systems (ICIS), 1–19. https://doi.org/10.1146/annurev.clinpsy.1.102803.144239.

  • Bommer, M., Gratto, C., Gravander, J., Tuttle, M., Journal, S., & May, N. (1987). A behavioral model of ethical and unethical decision making. Journal of Business, 6(4), 265–280.

    Google Scholar 

  • Brashear, T. G., Boles, J. S., Bellenger, D. N., & Brooks, C. M. (2003). An empirical test of trust-building processes and outcomes in sales manager: Salesperson relationships. Journal of the Academy of Marketing Science, 31(2), 189–200. https://doi.org/10.1177/0092070302250902.

    Article  Google Scholar 

  • Bycio, P., Hackett, R. D., & Allen, J. S. (1995). Further assessments of Bass’s (1985) conceptualization of transactional and transformational leadership. Journal of Applied Psychology, 80(4), 468–478. https://doi.org/10.1037/0021-9010.80.4.468.

    Article  Google Scholar 

  • Cardy, R. L., & Selvarajan, T. T. (2006). Assessing ethical behavior: The impact of outcomes on judgment bias. Journal of Managerial Psychology, 21(1), 52–72. https://doi.org/10.1108/02683940610643215.

    Article  Google Scholar 

  • Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In G. A. Marcoulides (Ed.), Modern methods for business research (pp. 295–336). London: Lawrence Erlbaum Associates. https://doi.org/10.1063/1.4860849.

    Chapter  Google Scholar 

  • Chin, W. W. (2010). How to write up and report PLS analyses. In V. Esposito Vinzi, W. W. Chin, J. Henseler, & H. Wang (Eds.), Handbook of partial least squares. Berlin, Heidelberg: Springer.

    Google Scholar 

  • Cohen, J. R., Pant, L. W., & Sharp, D. J. (1995). An exploratory examination of international differences in auditors’ ethical perceptions. Behavioral Research in Accounting, 7(1), 37–64.

    Google Scholar 

  • Conlon, E. J., & Mayer, R. C. (1994). The effect of trust on principal-agent dyads: An empirical investigation of stewardship and agency. In Annual meeting of the Academy of Management. Dallas, TX.

  • Copeland, J. E., Jr. (2005). Ethics as an imperative. Accounting Horizons, 19(1), 35–43.

    Google Scholar 

  • Cravens, D. W., Ingram, T. N., Laforge, R. W., Young, C. E., Cravens, W., Laforge, W., et al. (1993). Behavior-based based salesforce control systems. Journal of Marketing, 57(4), 47–59. https://doi.org/10.2307/1252218.

    Article  Google Scholar 

  • Cuevas-Rodríguez, G., Gomez-Mejia, L. R., & Wiseman, R. M. (2012). Has agency theory run its course? Making the theory more flexible to inform the management of reward systems. Corporate Governance: An International Review, 20(6), 526–546. https://doi.org/10.1111/corg.12004.

    Article  Google Scholar 

  • Das, T. K., & Teng, B.-S. (1998). Between trust and control: Developing confidence in partner cooperation in alliances source. The Academy of Management Review, 23(3), 491–512.

    Google Scholar 

  • DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of Accounting and Economics, 3(3), 183–199.

    Google Scholar 

  • Deshpande, S. P., Joseph, J., & Prasad, R. (2006). Factors impacting ethical behavior in hospitals. Journal of Business Ethics, 69(2), 207–216. https://doi.org/10.1007/s10551-006-9086-5.

    Article  Google Scholar 

  • Dirks, K. T., & Ferrin, D. L. (2001). The role of interpersonal trust in organizational settings. Organization Science, 12(4), 450–467. https://doi.org/10.5465/apbpp.1998.27872200.

    Article  Google Scholar 

  • Doney, P. M., Cannon, J. P., & Mullen, M. R. (1998). Understanding the influence of national culture on employee ownership mechanisms. Academy of Management Review, 23(3), 601–620. https://doi.org/10.5465/ambpp.2018.11802abstract.

    Article  Google Scholar 

  • Dubinsky, A. J., & Loken, B. (1989). Analyzing ethical decision making in marketing. Journal of Business Research, 19(2), 83–107.

    Google Scholar 

  • Eisenhardt, K. M. (1989). Agency theory: An assessment and review. The Academy of Management Review, 14(1), 57–74.

    Google Scholar 

  • Ethics Resource Center. (2012). The 2011 national business ethics survey: Workplace ethics in transition.

  • Falk, R. F., & Miller, N. B. (1992). A primer for soft modeling. Akron: University of Akron Press.

    Google Scholar 

  • Felipe, C. M., Roldán, J. L., & Leal-Rodríguez, A. L. (2017). Impact of organizational culture values on organizational agility. Sustainability, 9(12), 2354. https://doi.org/10.3390/su9122354.

    Article  Google Scholar 

  • Ferrell, O. C., & Gresham, L. G. (1985). A contingency framework for understanding ethical decision making in marketing. Journal of Marketing, 49(3), 87–96. https://doi.org/10.2307/1251618.

    Article  Google Scholar 

  • Fishbein, M., & Ajzen, I. (2010). Predicting and changing behavior: The reasoned action approach. New York: Psychology Press.

    Google Scholar 

  • Fraedrich, J., Ferrell, O. C., & Ferrell, L. (2011). Ethical decision making for business. Mason, OH: South-Western Cengage Learning.

    Google Scholar 

  • Friman, M., Gärling, T., Millett, B., Mattsson, J., & Johnston, R. (2002). An analysis of international business-to-business relationships based on the commitment-trust theory. Industrial Marketing Management, 31(5), 403–409. https://doi.org/10.1016/S0019-8501(01)00154-7.

    Article  Google Scholar 

  • Ganesan, S. (1994). Determinants of long-term orientation in buyer–seller relationships. Journal of Marketing, 58(2), 1–19.

    Google Scholar 

  • García-Marzá, D. (2005). Trust and dialogue: Theoretical approaches to ethics auditing. Journal of Business Ethics, 57(3), 209–219. https://doi.org/10.1007/s10551-004-8202-7.

    Article  Google Scholar 

  • Gefen, D. (2000). E-commerce: The role of familiarity and trust. Omega, 28(6), 725–737.

    Google Scholar 

  • Geyskens, I., Steenkamp, J.-B. E., & Kumar, N. (1998). Generalizations about trust in marketing channel relationships using meta-analysis. International Journal of Research in Marketing, 15(3), 223–248. https://doi.org/10.1016/s0167-8116(98)00002-0.

    Article  Google Scholar 

  • Gibson, J. L., Ivancevich, J. M., Donnelly, J. H., & Konopaske, R. (2012). Organizations: Behavior, structure, processes (14th ed.). New York: McGraw-Hill.

    Google Scholar 

  • Gold, A. H., Malhotra, A., & Segars, A. H. (2001). Knowledge management: An organizational capabilities perspective. Journal of Management Information Systems, 18(1), 185–214. https://doi.org/10.1080/07421222.2001.11045669.

    Article  Google Scholar 

  • Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Thousand Oaks: SAGE Publications.

    Google Scholar 

  • Henseler, J. (2017). Bridging design and behavioral research with variance-based structural equation modeling. Journal of Advertising, 46(1), 178–192. https://doi.org/10.1080/00913367.2017.1281780.

    Article  Google Scholar 

  • Henseler, J., Dijkstra, T. K., Sarstedt, M., Ringle, C. M., Diamantopoulos, A., Straub, D. W., et al. (2014). Common beliefs and reality about PLS. Organizational Research Methods, 17(2), 182–209. https://doi.org/10.1177/1094428114526928.

    Article  Google Scholar 

  • Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: Updated guidelines. Industrial Management & Data Systems, 116(1), 2–20. https://doi.org/10.1108/IMDS-09-2015-0382.

    Article  Google Scholar 

  • Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8.

    Article  Google Scholar 

  • Holden, R. R. (1994). Social desirability. In R. J. Corsini, A. Anastasi, & M. J. Allen (Eds.), Encyclopedia of psychology (2nd ed.). New York: Wiley.

    Google Scholar 

  • Hu, L., & Bentler, P. M. (1998). Fit indices in covariance structure modeling: Sensitivity to underparameterized model misspecification. Psychological Methods, 3(4), 424–453. https://doi.org/10.1037/1082-989X.3.4.424.

    Article  Google Scholar 

  • Huang, C. C., You, C. S., & Tsai, M. T. (2012). A multidimensional analysis of ethical climate, job satisfaction, organizational commitment, and organizational citizenship behaviors. Nursing Ethics, 19(4), 513–529. https://doi.org/10.1177/0969733011433923.

    Article  Google Scholar 

  • Hunt, S. D., & Vitell, S. J. (1986). A general theory of marketing ethics. Journal of Macromarketing, 6(1), 5–15.

    Google Scholar 

  • Jackson, T., & Artola, M. C. (1997). Ethical beliefs and management behaviour: A cross-cultural comparison. Journal of Business Ethics, 16(11), 1163–1173.

    Google Scholar 

  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360.

    Google Scholar 

  • Johnson, W. B., & Lys, T. (1990). The market for audit services: Evidence from voluntary auditor changes. Journal of Accounting and Economics, 12(1–3), 281–308.

    Google Scholar 

  • Jones, T. M. (1991). Ethical decision making by individuals in organizations: An issue-contingent model. Academy of Management Review, 16(2), 366–395. https://doi.org/10.5465/amr.1991.4278958.

    Article  Google Scholar 

  • Kaptein, M. (2008). Developing a measure of unethical behavior in the workplace: A stakeholder perspective. Journal of Management, 34(5), 978–1008. https://doi.org/10.1177/0149206308318614.

    Article  Google Scholar 

  • Khelil, I., Akrout, O., Hussainey, K., & Noubbigh, H. (2018). Breaking the silence: An empirical analysis of the drivers of internal auditors’ moral courage. International Journal of Auditing, 22(2), 268–284. https://doi.org/10.1111/ijau.12119.

    Article  Google Scholar 

  • Khelil, I., Hussainey, K., & Noubbigh, H. (2016). Audit committee—Internal audit interaction and moral courage. Managerial Auditing Journal, 31(4–5), 403–433. https://doi.org/10.1108/MAJ-06-2015-1205.

    Article  Google Scholar 

  • Kish-Gephart, J. J., Harrison, D. A., & Treviño, L. K. (2010). Bad apples, bad cases, and bad barrels: Meta-analytic evidence about sources of unethical decisions at work. Journal of Applied Psychology, 95(1), 1–31. https://doi.org/10.1037/a0017103.

    Article  Google Scholar 

  • Knechel, W. R. (1997). Auditing. Text and cases. Cincinnati, Ohio: Thomson.

    Google Scholar 

  • Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration, 11(4), 1–10. https://doi.org/10.4018/ijec.2015100101.

    Article  Google Scholar 

  • Kock, N., & Lynn, G. S. (2012). Lateral collinearity and misleading results in variance-based SEM: An illustration and recommendations. Journal of the Association for Information Systems, 13(7), 546–580. https://doi.org/10.17705/1jais.00302.

    Article  Google Scholar 

  • Leong, S. M., Randall, D. M., & Cote, J. A. (1994). Exploring the organizational commitment—Performance linkage in marketing: A study of life insurance salespeople. Journal of Business Research, 29(1), 57–63. https://doi.org/10.1016/0148-2963(94)90027-2.

    Article  Google Scholar 

  • Libby, T., & Thorne, L. (2004). The identification and categorization of auditors’ virtues. Business Ethics Quarterly, 14(03), 479–498. https://doi.org/10.5840/beq200414331.

    Article  Google Scholar 

  • Libby, T., & Thorne, L. (2007). The development of a measure of auditors’ virtue. Journal of Business Ethics, 71(1), 89–99. https://doi.org/10.1007/s10551-006-9127-0.

    Article  Google Scholar 

  • Lindberg, D. L. (2001). Discussion of the demand for auditor reputation across international markets for audit services. The International Journal of Accounting, 36(4), 429–432.

    Google Scholar 

  • Liu, A. H., & Leach, M. P. (2001). Developing loyal customers with a value-adding sales force: Examining customer satisfaction and the perceived credibility of consultative salespeople. Journal of Personal Selling & Sales Management, 21(2), 147–156.

    Google Scholar 

  • Luna-Arocas, R. (2004). Ética y recursos humanos. Un estudio empírico. AEDIPE: Revista de la Asociación Española de Dirección de Personal, 30, 54–61.

    Google Scholar 

  • Martinov-Bennie, N., & Pflugrath, G. (2009). The strength of an accounting firm’s ethical environment and the quality of auditors’ judgments. Journal of Business Ethics, 87(2), 237–253.

    Google Scholar 

  • Mayer, R. C., & Davis, J. H. (1999). The effect of the performance appraisal system on trust for management: A field quasi-experiment. Journal of Applied Psychology, 84(I), 123–136. https://doi.org/10.1037/0021-9010.84.1.123.

    Article  Google Scholar 

  • Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. Academy of Management Review, 20(3), 709–734. https://doi.org/10.1186/1472-6793-1-1.

    Article  Google Scholar 

  • Mayer, R. C., & Gavin, M. B. (2005). Trust in management and performance: Who minds the shop while the employees watch the boss? Academy of Management Journal, 48(5), 874–888. https://doi.org/10.5465/AMJ.2005.18803928.

    Article  Google Scholar 

  • McDevitt, R., Giapponi, C., & Tromley, C. (2007). A model of ethical decision making: The integration of process and content. Journal of Business Ethics, 73(2), 219–229. https://doi.org/10.1007/s10551-006-9202-6.

    Article  Google Scholar 

  • McKnight, D. H., Choudhury, V., & Kacmar, C. J. (2002). The impact of initial consumer trust on intentions to transact with a Web site: A trust building model. Journal of Strategic Information Systems, 11(3–4), 297–323.

    Google Scholar 

  • McKnight, D. H., Kacmar, C. J., & Choudhury, V. (2004). Shifting factors and the ineffectiveness of third party assurance seals: A two-stage model of initial trust in a web business. Electronic Markets, 14(1), 252–266.

    Google Scholar 

  • McPhail, K., & Walters, D. (2009). Accounting and business ethics: An introduction. London: Routledge. https://doi.org/10.4324/9780203012628.

    Book  Google Scholar 

  • Melé, D. (2009). Business ethics in action: Seeking human excellence in organizations. London: Palgrave Macmillan.

    Google Scholar 

  • Merino Sanz, M. J., Pintado Blanco, T., Sánchez Herrera, J., & Grande Esteban, I. (2015). Introducción a la investigación de mercados. Madrid: ESIC.

    Google Scholar 

  • Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20–38. https://doi.org/10.1177/002224299405800302.

    Article  Google Scholar 

  • Nazatul Faiza Syed Mustapha Nazri, S., Smith, M., & Ismail, Z. (2012). The impact of ethnicity on auditor choice: Malaysian evidence. Asian Review of Accounting, 20(3), 198–221. https://doi.org/10.1108/13217341211263265.

    Article  Google Scholar 

  • Newstrom, J. W., & Ruch, W. A. (1975). The ethics of management and the management of ethics. MSU Business Topics, 23, 29–37.

    Google Scholar 

  • Nicholson, C. Y., Compeau, L. D., & Sethi, R. (2001). The role of interpersonal liking in building trust in long-term channel relationships. Journal of the Academy of Marketing Science, 29(1), 3–15. https://doi.org/10.1177/0092070301291001.

    Article  Google Scholar 

  • Nikkinen, J., & Sahlström, P. (2004). Does agency theory provide a general framework for audit pricing? International Journal of Auditing, 8(3), 253–262.

    Google Scholar 

  • Nolder, C., & Riley, T. C. (2014). Effects of differences in national culture on auditors’ judgments and decisions: A literature review of cross-cultural auditing studies from a judgment and decision making perspective. Auditing A Journal of Practice & Theory, 33(2), 141–164.

    Google Scholar 

  • Organ, D. W., & Ryan, K. (1995). A meta-analytic review of attitudinal and dispositional predictors of organizational citizenship behavior. Personnel Psychology, 48(4), 775–802. https://doi.org/10.1111/j.1744-6570.1995.tb01781.x.

    Article  Google Scholar 

  • Petter, S., Straub, D. W., & Rai, A. (2007). Specifying formative constructs in information systems research. MIS Quarterly, 31(4), 657–679. https://doi.org/10.2307/25148814.

    Article  Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879.

    Article  Google Scholar 

  • Randall, D. M., & Fernandes, M. F. (1991). The social desirability response bias in ethics research. Journal of Business Ethics, 10(11), 805–817. https://doi.org/10.5465/ambpp.1990.4980194.

    Article  Google Scholar 

  • Reynolds, S. J. (2006). A neurocognitive model of the ethical decision-making process: Implications for study and practice. Journal of Applied Psychology, 91(4), 737–748. https://doi.org/10.1037/0021-9010.91.4.737.

    Article  Google Scholar 

  • Rigdon, E. E. (2012). Rethinking partial least squares path modeling: In praise of simple methods. Long Range Planning, 45(5–6), 341–358. https://doi.org/10.1016/j.lrp.2012.09.010.

    Article  Google Scholar 

  • Rigdon, E. E. (2016). Choosing PLS path modeling as analytical method in European management research: A realist perspective. European Management Journal, 34(6), 598–605. https://doi.org/10.1016/j.emj.2016.05.006.

    Article  Google Scholar 

  • Ringle, C. M., Wende, S., & Becker, J.-M. (2015). SmartPLS 3. Boenningstedt: SmartPLS GmbH. http://www.smartpls.com.

  • Robbins, S. P., & Coulter, M. A. (2009). Management. ‎Upper Saddle River: Pearson/Prentice Hall.

    Google Scholar 

  • Robertson, D. C., & Anderson, E. (1993). Control system and task environment effects on ethical judgment: An exploratory study of industrial salespeople. Organization Science, 4(4), 617–644. https://doi.org/10.1287/orsc.4.4.617.

    Article  Google Scholar 

  • Roldán, J. L., & Sánchez-Franco, M. J. (2012). Variance-based structural equation modeling. In M. Mora, O. Gelman, A. Steenkamp, & M. Raisinghani (Eds.), Research methodologies, innovations and philosophies in software systems engineering and information systems (pp. 193–221). Pennsylvania: IGI Global. https://doi.org/10.4018/978-1-4666-0179-6.ch010.

    Chapter  Google Scholar 

  • Rousseau, D. M., Sitkin, S. B., Burt, R. S., & Camerer, C. (1998). Not so different after all: A cross-discipline view of trust. Academy of Management Review, 23(3), 393–404. https://doi.org/10.5465/amr.1998.926617.

    Article  Google Scholar 

  • Rudmin, F. W. (1999). Norwegian short-form of the Marlowe-Crowne Social Desirability Scale. Scandinavian Journal of Psychology, 40(3), 229–233. https://doi.org/10.1111/1467-9450.00121.

    Article  Google Scholar 

  • Sarstedt, M., Hair, J. F., Ringle, C. M., Thiele, K. O., & Gudergan, S. P. (2016). Estimation issues with PLS and CBSEM: Where the bias lies! Journal of Business Research, 69(10), 3998–4010. https://doi.org/10.1016/j.jbusres.2016.06.007.

    Article  Google Scholar 

  • Scheer, L. K., & Stern, L. W. (1992). The effect of influence type and performance outcomes on attitude toward the influencer. Journal of Marketing Research, 29(1), 128–142. https://doi.org/10.2307/3172498.

    Article  Google Scholar 

  • Schwarz, A., Rizzuto, T., Carraher-Wolverton, C., Roldán, J. L., & Barrera-Barrera, R. (2017). Examining the impact and detection of the “urban legend” of common method bias. ACM SIGMIS Database: The DATABASE for Advances in Information Systems, 48(1), 93–119. https://doi.org/10.1145/3051473.3051479.

    Article  Google Scholar 

  • Smith, A., & Hume, E. C. (2005). Linking culture and ethics: A comparison of accountants’ ethical belief systems in the individualism/collectivism and power distance contexts. Journal of Business Ethics, 62(3), 209–220.

    Google Scholar 

  • Sweeney, B., Arnold, D., & Pierce, B. (2010). The impact of perceived ethical culture of the firm and demographic variables on auditors’ ethical evaluation and intention to act decisions. Journal of Business Ethics, 93(4), 531–551.

    Google Scholar 

  • Tenbrunsel, A. E., & Smith-Crowe, K. (2008). Ethical decision making: Where we’ve been and where we’re going. Academy of Management Annals, 2(1), 545–607. https://doi.org/10.5465/19416520802211677.

    Article  Google Scholar 

  • Trevino, L. K. (1986). Ethical decision making in organizations: A person-situation interactionist model. Academy of Management Review, 11(3), 601–617. https://doi.org/10.5465/amr.1986.4306235.

    Article  Google Scholar 

  • Treviño, L. K., Butterfield, K. D., & Mccabe, D. L. (1998). The ethical context in organizations: Influences on employee attitudes and behaviors. Business Ethics Quarterly, 8(3), 447–476.

    Google Scholar 

  • Treviño, Linda K., Weaver, G. R., & Reynolds, S. J. (2006). Behavioral ethics in organizations: A review. Journal of Management, 32(6), 951–990. https://doi.org/10.1177/0149206306294258.

    Article  Google Scholar 

  • Urbach, N., & Ahlemann, F. (2010). Structural equation modeling in information systems research using partial least squares. Journal of Information Technology Theory and Application, 11(2), 5–40.

    Google Scholar 

  • Wang, S. W., Ngamsiriudom, W., & Hsieh, C. H. (2015). Trust disposition, trust antecedents, trust, and behavioral intention. The Service Industries Journal, 35(10), 555–572.

    Google Scholar 

  • Watts, R. L., & Zimmerman, J. L. (1983). Agency problems, auditing, and the theory of the firm: Some evidence. The Journal of Law and Economics, 26(3), 613–633.

    Google Scholar 

  • Watts, R. L., & Zimmerman, J. L. (1986). “Positive accounting theory”, Contemporary Topics in Accounting. Prentice Hall: Englewood-Cliffs, NJ.

    Google Scholar 

  • Williams, L. J., & Anderson, S. E. (1991). Job satisfaction and organizational commitment as predictors of organizational citizenship and in-role behaviors. Journal of Management, 17(3), 601–617. https://doi.org/10.1177/014920639101700305.

    Article  Google Scholar 

  • Williams, L. J., Vandenberg, R. J., & Edwards, J. R. (2009). Structural Equation Modeling in Management Research: A Guide for Improved Analysis. Academy of Management Annals, 3(1), 543–604. https://doi.org/10.5465/19416520903065683.

    Article  Google Scholar 

  • Wotruba, T. R. (1990). A comprehensive framework for the analysis of ethical behavior, with a focus on sales organizations. The Journal of Personal Selling and Sales Management, 29(10), 29–42.

    Google Scholar 

  • Wright, R. T., Campbell, D. E., Thatcher, J. B., & Roberts, N. (2012). Operationalizing multidimensional constructs in structural equation modeling: Recommendations for IS research. Communications of the Association for Information Systems, 30(23), 367–412. https://doi.org/10.17705/1cais.03023.

    Article  Google Scholar 

  • Yilmaz, C., & Hunt, S. D. (2001). Salesperson cooperation: The influence of relational, task, organizational, and personal factors. Journal of the Academy of Marketing Science, 29(4), 335–357.

    Google Scholar 

  • Zahedi, F. M., & Song, J. (2008). Dynamics of trust revision: Using health infomediaries. Journal of Management Information Systems, 24(4), 225–248.

    Google Scholar 

  • Zeffane, R., & Al Zarooni, H. A. M. (2012). Empowerment, trust and commitment: The moderating role of work-unit centrality. International Journal of Management, 29(1), 332.

    Google Scholar 

  • Zey-Ferrell, M., & Ferrell, O. C. (1982). Role-set configuration and opportunity as predictors of unethical behavior in organizations. Humans Relations, 35(7), 587–604.

    Google Scholar 

  • Zhao, X., Lynch, J., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197–206.

    Google Scholar 

Download references

Acknowledgements

This paper is part of research project SEJ-180 “Accounting Research Group,” developed with the financial support of the Regional Government of Andalusia (Spain).

Author information

Authors and Affiliations

  1. Department of Management and Marketing, Universidad Pablo de Olavide, Carretera de Utrera, km. 1, Seville, 41013, Spain

    Rafael Morales-Sánchez & M. Ángeles Rodríguez-Serrano

  2. Department of Accounting and Financial Economy, Universidad de Sevilla, Seville, 41018, Spain

    Manuel Orta-Pérez

Authors
  1. Rafael Morales-Sánchez
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Manuel Orta-Pérez
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. M. Ángeles Rodríguez-Serrano
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Rafael Morales-Sánchez.

Ethics declarations

Conflict of interest

The authors declare that they have no conflicts of interest.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Morales-Sánchez, R., Orta-Pérez, M. & Rodríguez-Serrano, M.Á. The Benefits of Auditors’ Sustained Ethical Behavior: Increased Trust and Reduced Costs. J Bus Ethics 166, 441–459 (2020). https://doi.org/10.1007/s10551-019-04298-2

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-019-04298-2

Keywords

Search

Navigation