PurposeThe purpose of this study was to investigate whether situational factors predict ethicality judgments of theft behavior, and whether the effect of situational factors is moderated by moral relativism.Design/Methodology/ApproachData were obtained across two laboratory experiments using undergraduate business students attending a Canadian university (n = 372). Student participants viewed a videotaped vignette of an employee informed that he had been caught stealing sales commission. In the vignettes, we manipulated two situational factors: whether or not (a) the theft has monetary consequences for the organization, and (b) similar theft is commonplace within the organization.FindingsIn Experiment 1, both situational factors interacted with moral relativism in the prediction of ratings of unethical conduct. In Experiment 2, using a within-participant research design, we achieved an interaction between the organizational consequences manipulation and moral relativism, although we obtained a considerably stronger effect size for the interaction compared to the first experiment.ImplicationsWe discuss implications of our findings and suggest avenues for future research. In particular, we consider the possibility that managers may not share a common frame-of-reference when considering the ethicality of theft. This could affect whether and the extent to which theft behavior is reprimanded.Originality/ValueOur study contributes to research on employee theft, and also adds incrementally to our understanding of how both situational factors and moral relativism jointly influence perceptions of theft behavior. |