Ethical mindset and the efficacy of tax ethical awareness initiatives

Abstract

Purpose

This study delves into the impact of an ethical mindset on the efficacy of ethical awareness within the tax profession and aims to ascertain whether the presence of an ethical mindset can account for the discrepancies in the literature and enhance the effectiveness of ethical awareness initiatives.

Design/methodology/approach

The research used a tax experiment involving both treatment and control groups. Both groups were presented with a tax-related scenario, with the treatment group subjected to a specific ethical awareness intervention. To gauge the participants’ ethical mindsets, they were divided into strong self-interest and mild self-interest mindset groups based on their Machiavellian scores. The analysis was conducted utilizing ANOVA to scrutinize the results.

Findings

The key findings shed light on the fact that while ethical awareness endeavors can enhance the likelihood of individuals making ethical choices in tax decisions, their effectiveness varies significantly depending on the individual’s ethical mindset. Furthermore, results show that gender affected the relationship between ethical mindset and ethical awareness effectiveness, and males with mild self-interest score reacted more to the ethical awareness intervention. Results support that individuals’ ethical mindset, measured as strong self-interest and mild self-interest, is pivotal in determining the effectiveness of ethical awareness efforts.

Originality/value

This study is unique because it evaluates the effect of ethical mindsets to provide a novel way to improve tax ethical awareness initiatives.