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The nature of interaction between individuals and businesses is constantly changing. This is largely due to modern and emerging network and communication technologies. Today, transactions with individuals or businesses located on the opposite side of the world can be carried out as quickly as with transaction partners located next door. Research has shown that, despite the ability to interact with remote parties instantaneously, individuals’ perceptions of physical distances persists , and impacts their judgment and decision-making. In this manuscript, the effect of spatial distance on ethical decision-making is investigated. The effect of gender is also examined. Spatial distance was manipulated at three levels: near, moderate, and far. Results support our hypotheses that each of gender and spatial distance have an effect on ethical behavior. Consistent with previous literature, females behaved more ethically than males. However, as predicted, our analysis also reveals that spatial distance affects females and males differently.