An Exploratory Study Of Professional Ethical Standards, Positive Budgeting Orientation, And The Mediating Role Of Corporate Ethical Values

The purpose of this exploratory study was to empirically assess interrelationships between professional ethical standards, corporate ethical values, and the concept of positive budgeting orientation. It was believed that perceived ethical values would fully or partially mediate the proposed positive relationship between perceived professional ethics and positive budgeting in companies. Survey data were gathered from experienced managers, some of which were members of the Institute of Management Accountants, and students in MBA and Executive MBA programs located in the Mountain West and Midwestern regions of the United States. Overall, 290 surveys of managers who worked in a variety of business occupations were assessed. The findings showed a strong positive association between professional ethical standards and corporate ethical values, as well as between ethical values and a positive budgeting orientation. In the presence of these relationships, the professional ethical standards and positive budgeting orientation variables were unrelated, indicating that perceived ethical values functioned as a full mediator. The findings implied that ethical environments in both professions and organizations can be used to enhance positive budgetary practices.