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This paper employs theory of normal organizational wrongdoing and investigates the joint effects of management tone and the slippery slope on financial reporting misbehavior. In Study 1, we investigate assumptions about the effects of sliding down the slippery slope and tone at the top on financial executives' decisions to misreport earnings. Results of Study 1 indicate that executives are willing to engage in misreporting behavior when there is a positive tone set by the Chief Financial Officer (CFO) (kind attitude toward employees and non-aggressive attitude about earnings), regardless of the presence or absence of a slippery slope. A negative tone set by the CFO does not facilitate the transition from minor indiscretions to financial misreporting. In Study 2, we find that auditors evaluating executives' decisions under the same conditions as those in Study 1 do not react to the slippery slope condition, but auditors assess higher risks of fraud when the CFO sets a negative tone. Overall, our results indicate that many assumptions about the slippery slope and tone at the top should be questioned. We provide evidence that pro-organizational behaviors and incrementalism yield new insights into the causes of ethical failures, financial misreporting behavior, and failures of corporate governance mechanisms.

Every pair of denim jeans produced contributes 33.4 kg of CO 2 into the atmosphere, consumes 3781 L of water, and occupies 12 m 2 of land to support its production. The consumption patterns and consumption behaviour of consumers are both vital determinants of their environmental performance and impact. This paper examines the environmental concerns, production knowledge, and related cognitive measures of consumers by mapping their intentions in the process of buying denim jeans. Consumers of denim jeans in mainland China were taken as a sample to achieve our research objective. Specifically, 1392 respondents were quantitatively investigated. The empirical results indicate that production knowledge, the ascription of responsibility, buying attitude, and personal norms are dominant factors in explaining consumers' buying intentions when purchasing denim jeans. Furthermore, we find that the relationship between cognitive factors and buying intentions is mediated by affordability. This study highlights the immediate need to measure the denim industry's ecological footprint (during the production phase) and communicate this to critical industry stakeholders (i.e. macro-level forces, environmentalists, current and potential consumers). The intention is to redefine the purchasing behaviour of future consumers of denim jeans.

Financiële rapportagefraude is één van de kernproblemen geweest bij de beursschandalen rond Enron, Worldcom, Ahold en enkele andere grote concerns. Het leidde in de Verenigde Staten tot nieuwe wetgeving en in de jaren daarna tot een grote stroom aanklachten van malversaties in de jaarrekening, tegen ondernemingen die beursgenoteerd waren in de Verenigde Staten. In dit artikel wordt onderzocht wat de aard van de vermeende malversaties is geweest vanaf 2000 en of hierin een ontwikkeling te zien is ten opzichte van eerdere onderzoeken die de periode 1980-2000 bestreken. Geconcludeerd wordt dat het aandeel fraudegevallen dat betrekking heeft op fi ctieve en op niet-gerealiseerde opbrengsten sterk is toegenomen, terwijl het aandeel van fraude samenhangend met het niet juist waarderen van activa is afgenomen. Op grond hiervan is te veronderstellen dat een groot deel van de overtredingen ontdekt had moeten worden door interne en/of externe gegevensgerichte controle. Ten slotte is het opvallend dat er gemiddeld genomen sprake is van verschillende (4,5) fraudegevallen per aanklacht en dat ruim twaalf procent van de overtredingen het strafbare feit betreft: ‘liegen tegen de accountant’.

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