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Thomas Li-Ping Tang The International Conference on

Is “the Love of Money” the Root of All Evil? Or Different Strokes for Different Folks: Lessons in 12 Countries. Thomas Li-Ping Tang The International Conference on Business Ethics in the Knowledge Economy, Hong Kong April 3, 2002. Co-Authors.

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Thomas Li-Ping Tang The International Conference on

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  1. Is “the Love of Money” the Root of All Evil? Or Different Strokes for Different Folks: Lessons in 12 Countries Thomas Li-Ping Tang The International Conference on Business Ethics in the Knowledge Economy, Hong Kong April 3, 2002

  2. Co-Authors Adebowale Akande, Abdulgawi Salim Alzubaidi, Mark G. Borg, Bor-Shiuan Cheng, Randy K. Chiu, Chin-Kang Jen, Ali Mahdi Kazem, Vivien Kim Geok Lim, Eva Malovics, Johnsto E. Osagie, Raja Pholsward, Elisaveta Sardzoska, Allen F. Stembridge, Toto Sutarso, Theresa Li-Na Tang, Thompson Sian Hin Teo, and Peter Vlerick

  3. Now, Please Pay Attention to my Outline: *The Meaning of Money *The Love of Money *A Model of Unethical Behavior *Methods *Results: the Whole Sample, Compare 12 Countries Simultaneously *Recommendations

  4. The Color of Money Color Size Shape Cross-Cultural Differences: History, Culture, People (Citizen, President, King, Queen), Architecture, National Pride, World View, Euro-305M 12

  5. The Meaning of Money Father Joseph P. Breen of St. Edward in Nashville, TN Celebrated 40 Years Priesthood on 2/28/2002. (Story by Fr. Wiatt A. Funk.) Turbulence, In God we.. Priests: Pray, Ask

  6. The Meaning of Money $20 vs. $1 in a Money Bag Shall we create a pay-for-performance program for priests? The Government has no money until you pay... The Terrorists

  7. The Meaning of Money Money is the instrument of commerce and the measure of value(Smith, 1776/1937). The meaning of money is “in the eye of the beholder”(McClelland, 1967, p. 10).

  8. Money is the Measure of Value Who has more value? 1. An Economist Eugen Bohm Bawerk 2. A Psychologist Sigmund Freud 3. An Artist Moritz M. Daffinger

  9. In Austria Austrian Schillings (ATS) US$1 = ATS 15.53 (1/1/2002) An Economist ATS 100 A Psychologist ATS 50 An Artist ATS 20 The Value is on the Face of ATS!? Who has the most money?

  10. In the US 1 Dollar Bill: 5 Dollar Bill: Washington Lincoln 10 Dollar: 20 Dollar: Hamilton Jackson 50 Dollar: 100 Dollar Grant Franklin 2 Dollar: 3 Dollar: Jefferson Clinton White House (For Sale)

  11. The Meaning of Money: Theory Money is a motivator (Gupta & Shaw, 1998; Lawler, 1981; Locke, Feren, McCaleb, Shaw, & Danny, 1980: 381). Money is a hygiene factor (Herzberg, Mausner & Snyderman, 1959; Kohn, 1998; Pfeffer, 1998). People’s attitudes toward money can be perceived as their “frame of reference” in which they examine their everyday lives (Tang, 1992).

  12. Managers *Attract, Retain, and Motivate employees *Achieve Company Goals (Chiu, Luk, & Tang, 1998; Milkovich & Newman, 2002; Tang, Kim, & Tang, 2000; Tang, Luk, & Chiu, 2000).

  13. Research: Performance Improvement 4 Methods: 1. Participation 2. Job Design 3. Goal Setting 4. Contingent Payment

  14. The Meaning of Money-Motivator Performance Improvement Participation: 0% Job Design: 9% Goal Setting: 16% Contingent Payment: 30%. Movements vs. Intrinsic Motivation. What gets measured gets done (Inc., 1998, June)

  15. The Meaning of Money-Hygiene Money is a Hygiene factor (Herzberg, Mausner & Snyderman, 1959). 0, 0 point escalates Salary has more potency as a job dissatisfier than as a job satisfier (82). In the lows salary is found almost three times as often in the long-range as in the short-range sequences (82).

  16. The Meaning of Money-Hygiene Cameron & Pierce (1994). Review of Educational Research. Kohn (1993, September/October). Harvard Business Review. Kohn (1998, March/April). Compensation and Benefits Review. Pearce (1987). New perspectives on compensation. Pfeffer (1998, May/June). Six dangerous myths about pay. Harvard Business Review.

  17. The Meaning of Money Money always represents or signifies something other than itself (Crump, 1981). One is not interested in money, but in what money will buy (Crump, 1981).

  18. Time is Money $ Time

  19. Time is Money My account is worth every penny he charges because of the time he saves me. This year, for example, he probably saved me five to ten years in prison.

  20. The ABCs of Money Attitudes Affective: Do you “love or hate” money? Behavioral: What do you “do” with your money? Cognitive: What does money “mean” to you?

  21. Measures of Money Attitudes-1 Burgoyne (1990). Money in marriage. Janda (1998). Love & Sex Tests. Holbrook, MA: Adams Media Corp. MES

  22. Measures of Money Attitudes-2 Bailey & Gustafson (1986, 1991). Money beliefs and behaviour scale. Handbook of Behavioral Economics. Bailey & Lown (1993). Journal of Consumer Studies and Home Economics. Bailey, Johnson, Adams, Lawson, Williams, & Lown (1994). Consumer Interests Annual. Doyle (1992).American Behavioral Scientist. Fank (1994). Money handling inventory, PAID.

  23. Measures of Money Attitudes-3 Furnham (1984). Many sides of the coin: PAID. Furnham & Argyle (1998). The psychology of money. Goldberg & Lewis (1979).Money madness: The psychology of saving, spending, loving, and hating money. Gresham & Footenot (1989). The Money Attitude Scale. Advances in marketing. Hanley & Wihelm (1992). Money Beliefs and Behaviour Scale. JEP.

  24. Measures of Money Attitudes-4 Haraoka (1990). Money & value orientation, PJSSP. Lim & Teo (1997). Sex, money and financial hardship, JEP Luna-Arocas, Quintanilla, & Diaz (1995). EAD-6, IAREP. Luna-Arocas (1998).Dinero, Trabajo y Consumo. PROMOLIBRO Lynn (1991).The secret of the miracle economy.

  25. Measures of Money Attitudes-5 McClure (1984).Money attitudes and overall pathology, PAQJHB. Mitchell & Mickel (1999)**.The meaning of money:Money Importance Scale,AMR. Opsahl & Dunnette (1966).The role of financial compensation in industrial motivation, PB

  26. Measures of Money Attitudes-6 Quintanilla (1997).Psicologia Economica. McGraw Hill. Richins & Rudmin (1994). Materialism, JEP. Rubenstein (1981). Money & self-esteem, relationships, secrecy, envy, satisfaction, PT. Tang (1992). TheMoney Ethic Scale, JOB. Tang (1995, PAID; 1999, PPM; in press, PR;Tang et al., 2002), 5 Versions

  27. Measures of Money Attitudes-7 Thierry (2000). The meaning of pay, in Erez & Thierry (Eds.) Work motivation. Wernimont & Fitzpatrick (1972). The meaning of money, JAP. Yamauchi & Templer (1982). Money attitude scale, JPA. Zelizer (1989). The social meaning of money: Special monies, AJS. Zuckerman (1983). Sensation seeking.

  28. Mitchell & Mickel (1999) The well-developed measures are those that have been developed more carefully and used more systematically. There are three of these: (1) the money ethics scale (Tang, 1992, 1993, 1995), (2) the money belief and behavior scale (Furnham, 1984; Furnham, Kirkcaldy, & Lynn, 1994), and (3) the money importance scale (Mitchell, Dakin, Mickel, & Gray, 1998) (AMR: 571).

  29. Why Do We Study Money Attitude? The Importance of Money (Mitchell & Mickel, 1999) The Meaning of Money (Individual Difference) Money  Materialism Other Attitudes--Pay Satisfaction

  30. Why Do We Study Money Attitude? Pay Dissatisfaction has numerous undesirable consequences(Heneman & Judge, 2000) Commitment, Turnover, Counter-Productive Behavior, and Unethical Behavior(Cohen-Charash & Spector, 2001; Hom & Griffeth, 1995; Tang, Kim, & Tang, 2000)

  31. The Money Ethic Scale • Measures the Meaning of Money • Follows the ABC Model • Has Multi-Dimensional Constructs (5 versions) • Is Well Developed and Systematically Used (17 papers) • Reflects Individual Differences

  32. The Money Ethic Scale Has been used in many samples, in many countries, and in many languages (published articles): Chinese, English, French, Italian, Spanish, Russian, etc.

  33. Research Question: Does money (income) have a direct and/or indirect impact on unethical behavior? Does money attitude (the love of money, the MES) have a direct and/or indirect impact on unethical behavior?

  34. MES in This Study • Money is a Motivator • Money is a sign of my Success • Money is Important • I want to be Rich 58 items, EFA—US Sample, 14 factors, Select 4 factors (17 items), EFA, CFA--Whole Sample, 12 Countries

  35. The Love of Money • Motivator • Success • Important • Rich

  36. Motivator No other incentive or motivational technique comes even close to money(Locke, Feren, McCaleb, Shaw, & Danny, 1980: 381). Money is a motivator (Gupta & Shaw, 1998; Lawler, 1981). Ex. I am motivated to work hard for money. Money is a motivator.

  37. Success In America, money is how we keep score(Rubenstein, 1981). Some people are obsessed with “money as a sign of success”(Furnham & Argyle, 1998: 148) Ex. Money represents my achievement. Money is a symbol of my success.

  38. Importance The one consistent thread in this body of work is “the emphasis on its importance” (Mitchell & Mickel, 1999: 569) Ex. Money is important. Money is an important factor in the lives of all of us.

  39. Rich Would you like to be Rich or Poor? Most people: Rich Being Rich will make you feel Good, Happy, Powerful, Beautiful, Healthy, etc. Many CEOs are tested G-r-e-e-d positive (Crystal, 1990, Fortune). Ex. Having a lot of money (being rich) is good. I want to be rich.

  40. Other Variables Income Pay Satisfaction Organizational Commitment Unethical Behavior Ethical Corporate Culture Sex, Job Changes

  41. Pay Satisfaction 18-Item Pay Satisfaction Questionnaire: Pay Level Benefits Raises Pay Administration Heneman & Schwab (1985)

  42. Organizational Commitment 15-Item Organizational Commitment Questionnaire. Two Indicators: Commitment, Not to Leave (- items) Mowday, Steers, and Porter (1979)

  43. Ethical Culture 5-Item Corporate Ethical Culture Two Indicators: Ethical Policy (3 items), Act Ethically (2 items) (Hunt, Wood, & Chonko (1989).

  44. Unethical Behavior 15-Scenario Unethical Behavior Tendency Abuse Position (theft, 5 items) + Ex. Take merchandise and/or cash. Abuse Power (corruption, 5 items) Ex. Accept money, gifts, and kickback from others. Abuse Resources (office supply, 3 items) Ex. Waste company time. Use office supplies. Take No Action for Unethical Behavior (look the other way, 2 items) Ex. Take no action for shoplifting/stealing cash/merchandise.

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