Are There Unintended Consequences to CSR Activities?: Evidence from the Audit Profession

• In Event: Accounting, Behavior and Organizations II

Abstract

Public accounting firms continue to promote firm-sponsored volunteer programs that encourage employees to donate their time and work efforts towards philanthropic causes. The impact of virtuous, charitable behaviors upon professional judgment, however, has not been previously explored in the literature. Some research indicates a “moral consistency” effect whereby individuals have a strong motivation towards behavioral consistency (Festinger 1954; Gawronski and Strack 2012; Mullen and Monin 2016) and where engagement in prior virtuous leads to future virtuous behavior. Other literature reveals a “moral licensing” effect, suggesting that taking one action at an earlier point in time later enables an actor to partake in an opposite action at a later point in time (Monin and Miller 2001; Effron et al. 2009). Given conflicting prior research, our study intends to examine the impact that an auditor’s prior virtuous acts has on his or her future professional decisions. Given the recent popularity of skills-based volunteerism, we also explore the influence of different types of volunteerism (skills-based/non-skills-based) on professional judgment. Specifically, we propose a three condition experimental design utilizing staff auditors and manipulating the existence of firm-sponsored volunteerism as well as the type of volunteerism (skills-based/non skills-based) employed. Such research should be useful in promoting, developing and implementing future accounting firm-sponsored volunteer programs.

Authors

• Michael Killey, University of Michigan - Dearborn

• Matthew J. Hayes, University of Michigan-Dearborn