Do personal beliefs and values affect an individual’s “fraud tolerance”? Evidence from the World Values Survey

In a recently published article in the Journal of Business Ethics (Springer), Robert Knechel and Natalia Mintchik introduce the concept of “fraud tolerance”, validate the conceptualization using prior studies in economics and criminology as well as own independent tests, and explore the relationship of fraud tolerance with numerous cultural attributes using data from the World Values Survey. Applying partial least squares path modelling, they found out that people with stronger self-enhancing (self-transcending) values exhibit higher (lower) fraud tolerance. Further, respondents who believe in the importance of hard work would exhibit lower fraud tolerance, and such beliefs would mediate the relationship between locus of control and fraud tolerance. Finally, they conclude that people prone to traditional gender stereotypes would demonstrate higher fraud tolerance and document subtle differences in the influence of these cultural attributes across age, religiosity, and gender groups. Their study contributes to research on corporate governance, ethics, and the antecedents of work-place dishonesty and is accessible here.

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