Low-Level Bank Managers: Factors that Affect Ethical Decision-Making (The Indonesian Case)

Abstract

Purpose: To find out the factors that influence ethical decision-making in low-level bank managers Theoretical framework: Research findings emphasized that the theory of McCosh in 1999 is certainly still relevant to use if the perception of the ethical meaning is not more to the application of ethics in the standard operating procedure is true but more to the fulfillment of a lending activity that really. Design/methodology/approach: The study also took a step with a positivistic epistemological approach in the process of answering research questions by following the deductive logic of parts and phenomena and their relationships; The research strategy used in the completion of this study was to use confirmation data analysis (CFA) of this research conducted with a single cross-sectional. Findings: The results of the research with the use of analysis of confirmatory factor (CFA) indicate that when a lending activity takes place, ethical ideology, financial attitudes, and financial ethics give a guarantee that the manager will be able to make an ethical decision. Research, Practical & Social implications: We suggest a future research agenda and highlight the contribution a low-level bank manager makes in making ethical decisions Originality/value: The results show that ethical ideology, financial attitudes, and financial ethics have a significant influence on ethical decisions in lending activities by low-level bank managers, and financial ethics have a significant role in mediating the effect of ethical ideology and financial attitudes on ethical decisions, in lending activities by lower-level bank managers.