Unethical behavior in organizations, including unethical accounting behavior (UAB), has significant negative consequences. Prior research often focused on formal organizational systems, but increasingly emphasizes the influence of informal systems like Organizational Ethical Climate (OEC). OESIC, a type of OEC characterized by self-interest, is prevalent and poses a particular risk. This study addresses the gap in research on OESIC's impact on UAB in the Chinese context, particularly concerning the motivations behind UAB. The study hypothesizes that OESIC promotes UAB, with a stronger effect on UPSAB (self-interest motivated) than UPOAB (organizationally motivated), and that Confucian ShiZhong Thinking (CSZ Thinking) moderates this relationship. Understanding these dynamics is crucial for developing effective strategies to curb unethical accounting practices. The Chinese context is particularly relevant due to the profound influence of Confucianism on individual values and behavior, influencing perceptions of ethical climates and moral judgments. This study contributes to the literature by: (1) Subdividing UAB into UPSAB and UPOAB, providing a more nuanced understanding of the motivations behind unethical accounting actions; and (2) Investigating the moderating role of CSZ Thinking, a key characteristic of Confucianism, in the relationship between OESIC and UAB. The research questions examine whether OESIC impacts UAB with different motivations, whether the effects differ between UPSAB and UPOAB, and whether CSZ Thinking moderates the relationship between OESIC and these two types of UAB. The findings will provide valuable insights for organizational managers in understanding and managing ethical behavior within their organizations.

The literature review examines existing research on OESIC and its negative consequences, including increased employee turnover intention, negative leadership behaviors, and corrupt behavior. It also explores different types of UAB, highlighting the distinction between UPSAB and UPOAB. While previous studies mainly focused on UPSAB, this research emphasizes the importance of considering UPOAB, which is often overlooked despite its potential harm. The review then discusses unethical accounting behavior and Confucian ShiZhong thinking in the Chinese context. Existing literature shows that Confucian culture significantly impacts business ethics and employee behavior. Early studies in China examined the relationship between OEC, organizational commitment, and professional conflicts among accountants. More recent research has expanded to encompass a broader range of unethical accounting behaviors, including earnings management, greenwashing, and decoupling. The review points out the lack of empirical research on the impact of OESIC on UAB with different motivations, especially considering the influence of Confucianism's ShiZhong thinking. The gap in research regarding the moderating influence of cultural values on the OESIC-UAB relationship motivates this study.

This study employed a quantitative research design using a questionnaire survey to collect data from 258 Chinese accountants with varying levels of professional experience. The questionnaire measured OESIC using the Ethical Climate Questionnaire (ECQ), CSZ Thinking using adapted items from the Ethics Position Questionnaire (EPQ), and UAB using scenarios designed to assess UPSAB and UPOAB. Control variables included gender, length of service, educational background, and position. Convenience sampling was used through an online survey distributed among accounting alumni of a Chinese university. The data analysis involved reliability and validity checks to address potential common method variance (CMV). Harman's single-factor test and PLS-SEM were employed. Regression models were used to test the hypotheses. Model 1 and Model 2 tested the relationship between OESIC and UPSAB and UPOAB respectively. Model 3 examined the difference between the effects of OESIC on UPSAB and UPOAB. Model 4 and Model 5 explored the moderating effect of CSZ Thinking on the relationship between OESIC and UPSAB and UPOAB, respectively. The study employed a seven-point Likert scale for all variables. The researchers took several steps to minimize CMV, including using anonymous surveys, conducting Harman's single factor test, and assessing variance inflation factors (VIFs). The study ensured that all the variables met the necessary values for internal consistency (Cronbach's alpha > 0.70) and construct reliability (CR > 0.60). The study also performed collinearity tests to ensure there was no common method bias.

The results supported Hypothesis 1, indicating a significant positive relationship between OESIC and both UPSAB and UPOAB. Specifically, OESIC significantly promoted both UPSAB (β₁ = 0.356, t = 4.154, p < 0.001) and UPOAB (β₂ = 0.242, t = 2.474, p < 0.05). Hypothesis 2a was also supported, showing that OESIC's effect on UPSAB was stronger than its effect on UPOAB (β₃ = -0.243, p = 0.013). Hypothesis 3 was supported, demonstrating that CSZ Thinking significantly moderated the relationship between OESIC and both UPSAB (γ₁ = -0.372, t = -3.806, p < 0.001) and UPOAB (γ₂ = -0.291, t = -2.586, p = 0.01). The moderating effect of CSZ thinking was illustrated graphically, showing that the positive relationship between OESIC and UAB was weaker for accountants with high CSZ Thinking. Further analysis using the Johnson-Neyman technique indicated that the effect of OESIC on UPSAB was significantly negative when CSZ Thinking was below 5.508 and on UPOAB when below 5.242. The study's findings showed that males were more likely to engage in UAB compared to females. The results show that an OESIC promotes unethical accounting behavior and that the influence is stronger on self-interested behavior than organizationally motivated behavior, and that Confucian ShiZhong Thinking can reduce such behavior. The analysis demonstrated that the effect of OESIC on UPSAB and UPOAB is moderated by CSZ thinking. Specifically, a higher level of CSZ Thinking weakens the positive relationship between OESIC and both UPSAB and UPOAB.

The findings extend prior research by examining OESIC's impact on both UPSAB and UPOAB, revealing a stronger effect on self-interest-driven behaviors. This aligns with social cognitive theory, suggesting individuals learn and imitate behaviors within their organizational environment. The moderating role of CSZ Thinking highlights the interplay between individual characteristics and organizational culture in shaping ethical conduct. The study's emphasis on the Chinese context adds valuable insights into the influence of cultural values on accounting ethics. The findings underscore the importance of addressing both self-interest and organizationally-motivated unethical behaviors, with organizations needing to create an ethical climate that actively discourages both types. The significant moderating effect of CSZ Thinking suggests that fostering this Confucian value could be a critical strategy in mitigating unethical accounting practices. This study contributes significantly to our understanding of the complex interplay between organizational culture, individual values, and unethical behaviors, specifically within the accounting profession in the Chinese context.

This study significantly contributes to the literature by examining the impact of OESIC on two distinct types of UAB and by incorporating the moderating role of CSZ Thinking in the Chinese context. The findings highlight the importance of considering both formal and informal control systems in mitigating unethical accounting behaviors. Future research should investigate the mediating mechanisms through which OESIC and CSZ Thinking influence UAB, expand the scope to include other cultural contexts, and explore the effectiveness of interventions designed to promote ethical behavior.

The study's reliance on a convenience sample of Chinese accountants limits the generalizability of the findings to other cultural contexts and populations. The cross-sectional nature of the data prevents causal inferences. Further research is needed to explore the mediating mechanisms underlying the relationships identified in this study and to examine the long-term effects of OESIC and CSZ Thinking on ethical decision-making.