Corruption involves greed, money, and risky decision-making. We explore the love of money, pay satisfaction, probability of risk, and dishonesty across cultures. Avaricious monetary aspiration breeds unethicality. Prospect theory frames decisions in the gains–losses domain and high–low probability. Pay dissatisfaction (in the losses) excites dishonesty in the name of justice at the individual level. Corruption Perceptions Index, CPI, signals a high–low probability of getting caught for dishonesty at the country level. We theorize: Decision-makers adopt avaricious love of money aspiration as a lens and frame dishonesty in the gains–losses domain (pay satisfaction–dissatisfaction, Level 1) and high–low probability (CPI, Level 2) to maximize expected utility and ultimate serenity. We challenge the myth: Pay satisfaction curbs dishonesty across nations consistently. Cross-level three-dimensional visualization demonstrates (6500 managers in 32 countries across six continents): With high aspiration, pay dissatisfaction excites the highest- (third-highest) avaricious justice-seeking dishonesty in high (medium) CPI nations; pay satisfaction provokes the second-highest avaricious opportunity-seizing dishonesty in low CPI entities—maximizing expected utility. Low aspiration and high pay satisfaction consistently create low dishonesty—achieving ultimate serenity. We expand prospect theory from a micro and individual-level theory to a cross-level theory of monetary wisdom across 32 nations, providing novel insights to business ethics, the environment, and responsibility.

Behavioral economics and monetary wisdom: A cross-level analysis of monetary aspiration, pay (dis)satisfaction, risk perception, and corruption in 32 nations

Luigina Canova;
2024

Abstract

Corruption involves greed, money, and risky decision-making. We explore the love of money, pay satisfaction, probability of risk, and dishonesty across cultures. Avaricious monetary aspiration breeds unethicality. Prospect theory frames decisions in the gains–losses domain and high–low probability. Pay dissatisfaction (in the losses) excites dishonesty in the name of justice at the individual level. Corruption Perceptions Index, CPI, signals a high–low probability of getting caught for dishonesty at the country level. We theorize: Decision-makers adopt avaricious love of money aspiration as a lens and frame dishonesty in the gains–losses domain (pay satisfaction–dissatisfaction, Level 1) and high–low probability (CPI, Level 2) to maximize expected utility and ultimate serenity. We challenge the myth: Pay satisfaction curbs dishonesty across nations consistently. Cross-level three-dimensional visualization demonstrates (6500 managers in 32 countries across six continents): With high aspiration, pay dissatisfaction excites the highest- (third-highest) avaricious justice-seeking dishonesty in high (medium) CPI nations; pay satisfaction provokes the second-highest avaricious opportunity-seizing dishonesty in low CPI entities—maximizing expected utility. Low aspiration and high pay satisfaction consistently create low dishonesty—achieving ultimate serenity. We expand prospect theory from a micro and individual-level theory to a cross-level theory of monetary wisdom across 32 nations, providing novel insights to business ethics, the environment, and responsibility.
2024
Monetary Wisdom Monetary Aspirations Impact Decision-Making
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11577/3514261
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