Why do information system controls fail to prevent unethical behavior?

Abstract

Purpose The purpose of this paper is to examine the ability of enterprise systems and embedded controls to prevent unethical behavior within organizations. Design/methodology/approach The authors use a case study to explore how the configuration of information technology (IT) controls within enterprise systems and their effectiveness in preventing unethical behavior is compromised by the tone at the top. Findings The study highlights the decisive role of cultural values and leadership in moderating the relationship between IT controls and unethical behavior and the realization that ethical environments are socially constructed not enforced. Research limitations/implications The limitation of this research is that the authors conducted one case study in an institution of higher education to refute the theory that IT controls embedded within enterprise systems can prevent unethical, and thus, the results may not be generalizable to other industries. Practical implications An important implication of the research is that the configuration of information system controls is affected by the organizational culture and the ethical values embraced by top management. When the tone at the top does not emphasize the ethical code of conduct, the configuration of IT controls will be compromised leaving organizations vulnerable at all levels. Originality/value Although the authors have a wealth of knowledge on ethics and theories that explain why unethical decision-making continue to surface to the headlines, they have little explanation as to why enterprise systems fail to stop unethical behavior in organizations. This study explores technical, organizational and individual factors that contribute to unethical decision-making.

Unethical Leadership: Review, Synthesis and Directions for Future Research

“…Furthermore, unethical leadership can foster unsustainable corporate practices, including corporate scandals that can tarnish organisations' social responsibility ethics (Mujkic & Klingner, 2019). In an entirely different context, unethical leadership has been found to result in the failure of information systems that aim to foster control mechanisms within organisations (Sherif et al, 2016). The study establishes the strategic importance of leadership ethics where the ethical or unethical tone set by the leaders determines the success of such control mechanisms.…”

“…counterproductive work behaviours (Knoll et al, 2017), crimes of obedience (Carsten & Uhl-Bien, 2013) and knowledge hiding (Qin et al, 2021), among others. Recently, scholars have begun to investigate the team-or group-level (b; Cialdini et al, 2021;Peng, Schaubroeck, et al, 2019) and organisational-level consequences (Mujkic & Klingner, 2019;Sherif et al, 2016;Vasconcelos, 2015) of this phenomenon; however, such investigations remain scant.…”

Solusi Atas Problematika Perilaku Budgetary Slack Ditinjau Berdasarkan Etika Akuntan Manajemen

“…Sebaliknya, manajer dengan tingkat etika yang rendah dan menganggap budgetary slack sebagai sesuatu yang benar akan cenderung menciptakan bahkan meningkatkan budgetary slack pada saat penyusunan anggaran (Klein et al, 2019). Penjelasan tersebut didukung dengan pernyataan Sherif et al (2016) bahwa terdapat dua masalah pada budgetary slack yaitu pertama, berdampak terhadap perilaku disfungsional pada perusahaan. Slack akan membuat tidak efisien biaya perusahaan.…”