The Effect of Management Control System on Unethical Behaviors

Subject Areas : Ethics and accounting

Seyed Hossein Ahmadi Langari ¹ ( Ph.D. student of accounting, Gorgan Branch, Islamic Azad University, Gorgan, Iran )
Mansour Garkaz ² ( Associate Professor, Gorgan Branch, Islamic Azad University, Gorgan, Iran )

Received: 2021-10-18 Accepted : 2021-12-31 Published : 2021-12-22

Keywords: Organizational Justice, Managers, Procedural Justice, Distributive Justice, unethical behaviors, Management control system,

Abstract :

The purpose of the present research is to review the effect of management control system (MCS) on unethical behaviors. The current study aims to validate the theoretical model of the study of Langevin and Mendoza (2012) and also theoretically test the hypothesis formulated by the authors, although not experimentally tested yet. Therefore, the following research question is explored in the present study: Which aspects of MCS presented by Langevin and Mendoza (20102) increase organizational justice and decrease unethical behaviors of managers? In this regard, a questionnaire was distributed among the senior and middle managers of active corporations in the stock exchange from April 2021 to May 2021. According to a survey research plan including a questionnaire from Louisiana Klein et al., completed by 114 participants, the relationship between research variables and the hypothesis presented by Langevin and Mendoza (2012) was reviewed and the data was analyzed using PLS Smart software/version 3. The results obtained from modeling the structural equations show that participation in setting the goals can increase perception of procedural justice; it means that participation in setting fair purposes is taken into account but this issue does not have a close relation to the managers’ reward. Thus, ignoring uncontrolled aspects by the managers in performance assessment does not lead to the perception of procedural and distributive justice.

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