Proceedings of 10th Global Business and Social Science Research Conference 23 -24 June 2014, Radisson Blu Hotel, Beijing, China, ISBN: 978-1-922069-55-9 Dance With Morality: Is Individual Materialism The Root of Moral Transgression Intentions? Hao-Wen Gu1, Meng-Hui Hsu2 and Hsiu-Hua Hu3 Drawing on literature in materialism and morality, the present study explored the impacts of individual materialism (i.e., acquisition centrality, acquisition as the pursuit of happiness, and possession-defined success) on his/her moral transgression intentions. Additionally, this study also examined the moderating role of individual moral competence as a buffer on this positive relationship. The study used a 2×2×2 scenario experiment design to investigate those impacts. Total valid samples were received from 364 students of M.B.A. degree program in the northern schools of management in Taiwan. The results showed that acquisition centrality and possession-defined success of individual materialism had the main effects on moral transgression intentions, respectively. In addition, individuals with higher moral competence can weaken the relationships between individual materialism and moral transgression intentions. Finally, the limitations of this study are discussed and suggestions for further research are proposed. Keywords: Individual Materialism, Transgression Intentions. Individual Moral Competence and Moral 1. Introduction In more recent years, a series of political and corporate scandals occurred in Taiwan, including corruption, embezzlement, inside trading, divulge of secrets, frauds, food safety, etc. In political side, the most concern in recently was that the former Executive Yuan secretary’s corruption scandal, this not only ruined the promising future of personal, but also made the Taiwan’s government into disrepute. On the corporate side, corruption and fraud are two most common unethical behaviors in the media reports. Especially, food industry repeatedly caught in the scandal storm of these unscrupulous operators on deception behaviors, resulting in food safety problems taken seriously. Since the frequent scandals occurred, many people start to think what’s wrong with that? Exploring these immoral behaviors, we considered that ethical beliefs may play a central role in one’s overall psychological makeup and then affect behaviors in a variety of situations, and they refer to desired end states (Pitts & Woodside, 1991; Rokeach, 1973). The last decades have seen growing importance place on research in individual materialism. The majority of research in individual materialism has focused on a variety of consumer behaviors with potentially negative outcomes, including compulsive buying (Rindfleisch, Burroughs & Denton, 1997; Roberts, Manolis & Tanner, 2003), social consumption motivation (Fitzmaurice & Comegys, 2006), self-doubt and insecurity (Chang & Arkin, 2002), social anxiety (Schroeder & Dugal, 1995; Kashdan & Breen, 2007), selfesteem contingent on praise (Deci & Ryan, 1995; Chaplin & John, 2007), and money 1 Department of International Business, Ming Chuan University, Taiwan, Address: (111) 250 Zhong Shan N. Rd., Sec. 5, Taipei, Taiwan, R.O.C. E-mail: ggdw333@gmail.com, Tel: +886-2-28824564 2 Department of Managerial Economics, University of California, Davis, U.S.A., Address: 644 Alvarado Avenue Apt.103 Davis, CA 95616, E-mail: mhhsu@ucdavis.edu, Tel: +1-925-922-4977 3 Department of International Business, Ming Chuan University, Taiwan, Address: (111) 250 Zhong Shan N. Rd., Sec. 5, Taipei, Taiwan, R.O.C. E-mail: shhu@mail.mcu.edu.tw, Tel: +886-2-28824564 1 Proceedings of 10th Global Business and Social Science Research Conference 23 -24 June 2014, Radisson Blu Hotel, Beijing, China, ISBN: 978-1-922069-55-9 attitudes (Tatzel, 2003; Durvasula & Lysonski, 2010). More recently, new research studies have been primarily concerned with tackle the issue of the correlation with materialism and ethical beliefs (Vitell, 2003). While, interesting in ethical behaviors have shifted to reflect current developments in ethical beliefs which emphasize moral transgression. Within the literature on materialism and morality, comparatively little research has focused on the relation between individual materialism and his/her moral transgression intentions. In this study, an intervening construct (i.e., moral competence) that might influence the relationship between individual materialism and his/her moral transgression intentions were examined. Moral competence is the skill of actually doing the right thing, and we need moral competence to act in alignment with our values and beliefs (Lennick & Kiel, 2005). To my knowledge, there has been no prior attempt to test how these combined this intervening construct moderated the relationship between individual materialism and his/her moral transgression intentions, that is, individual moral competence buffers the positive influence of individual materialism on his/her moral transgression intentions. To expand knowledge in the area, we propose two goals in this study. First, adopting morality approach, we examined the previously untested relationship between individual materialism to his/her moral transgression intentions. The second goal of this study is to further examine the extent to which individual moral competence can act as a buffer against the positive influence of individual materialism on his/her moral transgression intentions. However, issues of individual materialism and moral transgression intentions may have sensitized the participants to provide real responses in the workplace. To overcome this problem, this study, therefore, used experimental design to explore the impacts of individual materialism, moral competence on moral transgression intentions. 2. Hypotheses Development 2.1 Individual Materialism Materialism is a complex, multifaceted concept. For example, Belk (1984) described materialism as “the importance a consumer attaches to worldly possessions.” Rassuli and Hollander (1986) defined materialism as “a mind-set or an interest in getting and spending.” Richins and Dawson (1992) suggested that persons holding strong material values place possessions and their acquisition at the center of their lives, that they value possessions as a means of achieving happiness, and that they use possessions as a means of an indicator of their own and others success. Holtz (1995) described materialism as either a “trait or values that measures the importance of possessions in one’s life.” Browne and Kaldenberg (1997) described materialism as “a cluster of related traits, attitudes, and values focusing on possessions and guiding the selection of events and things.” There are two major streams in understanding the concept of materialism in literature. Belk (1985) viewed materialism as a collection of personality traits. His view of materialism included three traits of possessiveness, non-generosity, and envy. In contrast, Richins and his colleagues (e.g., Fournier & Richins, 1991; Richins, 1994a, 1994b; Richins & Dawson, 1992) described materialism as a value rather than a behavior or personality variable. This included beliefs about acquisition centrality and the role of acquisition in happiness and success. Acquisition centrality refers to the importance materialists attach to acquiring more possessions which allows acquisitiveness to function as a life-goal for them. Materialists 2 Proceedings of 10th Global Business and Social Science Research Conference 23 -24 June 2014, Radisson Blu Hotel, Beijing, China, ISBN: 978-1-922069-55-9 also hold strongly to the belief that owning or acquiring the right possessions is a key to happiness and well-being. Since Richins (1994a, 1994b) defined materialists as people who believe success can be judged by the things people own. Thereby, Richins and Dawson (1992) compiled many scholars’ definitions, and suggested materialism can be divided into acquisition centrality, acquisition as the pursuit of happiness, and possession-defined success of three dimensions. About the measurement of individual materialism, since Belk’s three dimensions of materialism were more inclined to materialistic negative traits, and less described in positive traits. In addition, a limitation of the Belk scales has been inconsistent and often low reports of scale reliability. And the preliminary assessments of scale, which developed by Richins and Dawson (1992), had acceptable reliability and validity, thereby, we choose Richins and Dawson’s (1992) scale in this current study. 2.2 Moral Transgression Intentions In describing one who violates widely accepted moral norms in a manner, theorists have employed a variety of terms and phrases including “deviant behavior” (Robinson & Bennett, 1995), “counterproductive behavior” (Cohen-Charash & Spector, 2001), “unethical behavior” (Jones & Kavanagh, 1996), “noncompliant employees” (Rogelberg, Luong, Sederburg, & Cristol, 2000), “organizational misbehavior” (Ivancevich, Duening Gilbert, & Konopaske, 2003; Vardi & Weitz, 2004), and “moral transgression” (Tumasjan, Strobel, & Welpe, 2011). In this study, we redefined the term “moral transgression”, which referred to those individuals who deliberately violates widely accepted moral norms in a manner that negatively affected other colleagues or the organization as a whole. Moral transgression at work included, but not limited to the following behaviors: arson, blackmail, bribery, bullying, cheating, discrimination, dishonesty, espionage, fraud, incivility, intimidation, kickbacks, lying, misinformation, privacy violations, revenge, sabotage, sexual harassment, substance abuse, theft, threats, and withholding information (Ivancevich, Konopaske, & Matteson, 2005). As defined above, this study focuses specifically whether individual materialism on moral transgression intentions. However, we adopt an existing moral transgression measure with five latent dimensions (i.e., abuse resources, not whistle blowing, theft, corruption, and deception) developed by Luna-Arocas and Tang (2004). 2.3 Individual Materialism & Moral Transgression Intentions As mentioned above, materialism is commonly viewed as a negative value that has detrimental consequences for both individuals and society (Bakker & Bakker-Rabdau, 1973; Belk, 1984; Feather, 1984; Furham, 1984; Hogan, 1975; MacDonald, 1972). Belk (1988) related greater materialism to an inevitable loss of a sense of community which might in turn make people less sensitive to behavior that might negatively affect others. Rudmin and Richins (1992) argued that materialism is questionable from an ethical perspective. Barrett (1992) also indicated that certain unethical behaviors are associated with higher levels of materialism. Individual materialism may become a problem in situations where the physical goal of 3 Proceedings of 10th Global Business and Social Science Research Conference 23 -24 June 2014, Radisson Blu Hotel, Beijing, China, ISBN: 978-1-922069-55-9 consumption overshadows all other goals of self and interactive development (Belk, 1985; Richins & Dawson, 1992). However, materialism is likely to become harmful to the person or to society. However, Fournier and Richins (1991) found that most people describe materialistic people in negative and socially-undesirable terms. In addition, materialism has been shown to relate to certain demographic and behavioral variables (Crispell, 1993). Richins and Dawson (1992) suggested that possessions can be the focus of one’s life, becoming more important than religion, friends and other achievements. The more acquire possessions the majority component for achieving happiness, the more materialistic individuals might be willing to bend ethical rules to gain possessions. This reasoning is consistent with Ferrell and Gresham (1985); they argued that managers who feel pressure to be successful will be more likely to exhibit unethical behavior. Research argued that individuals with materialism may have negative attitudes (Belk, 1984), have egoistic self-interest (Hogan, 1975), and act as extreme as vandalism, arson, murder, theft, and adultery, in order to deprive envied others of their possessions (Bakker & Bakker-Rabdau, 1973). Thereby, we argued that individuals with higher level of materialism (i.e., acquisition centrality, acquisition as the pursuit of happiness, possession-defined success), they may have greater intentions in moral transgression to obtain these desired possessions. Thus, we proposed the following: Hypothesis 1: Individual materialism is positively related to his/her moral transgression intentions. 2.4 Individual Moral Competence In order to recognize moral competence, we must clarify the distinction between moral intelligence and moral competence. Moral intelligence is described as “the mental capacity to determine how universal human principles should be applied to our values, goals, and actions.” That is, moral intelligence is the ability to differentiate right from wrong as defined by universal principles (Lennick & Kiel, 2005). However, moral competence is defined as “the capacity to make decisions and judgments which are moral (i.e., based on internal principles) and to act in accordance with such judgments” (Kohlberg, 1964). It means “ability to act on our moral principles”, while moral intelligence involves knowing what to do, moral competence is the skill of actually doing the right thing (Lennick & Kiel, 2005). Since there is a practical distinction between moral intelligence and moral competence, however, we choose moral competence emphasized as “the ability to act in alignment with moral judgment” in this study. Moral competence is a multi-dimensional construct including integrity, responsibility, compassion, and forgiveness (Lennick & Kiel, 2005). Integrity consists of four related moral competencies: acting consistently with principles, values, and beliefs, which means being purposeful in everything one does or says; telling the truth involves the degree to which provide information that captures reality, even in difficult situations; standing up for what is right is defined as being an advocate for what one thinks is right as defined by principles; and keeping promises refers to one’s actions being consistent with words. Responsibility extends to three related moral competencies: taking responsibility for personal choices which means assuming accountability for the results of the choices one makes; admitting mistakes and failures, which involves an acceptance that one has faults; and embracing 4 Proceedings of 10th Global Business and Social Science Research Conference 23 -24 June 2014, Radisson Blu Hotel, Beijing, China, ISBN: 978-1-922069-55-9 responsibility for serving others, referring to a felt obligation to help others. Compassion is based on a single principle: actively caring about others, which involves actively supporting the personal choices of others and being empathetic to needs and desires of others, sometimes even treating the goals of others as being more important than one’s own goals. Forgiveness consists of two principles: Letting go of one’s own mistakes means a willingness to forgive oneself for unacceptable behaviors, which allows for freeing one’s own mental space to focus on how to learn and improve from the mistake. Letting go of others’ mistakes is defined as one’s ability to forgive others for what they have done wrong (Lennick & Kiel, 2005). 2.5 Individual Moral Competence as a Moderator Moral competence is the skill of actually doing the right thing. That is to say it means the ability to consistently behave according to accepted ethical principles. According to value theory, values are regarded as the criteria people use to select and justify actions and to evaluate people (including the self) and events (Schwartz, 1992). Moral competence, like a moral compass of value and belief, is considered as the criteria people use to act ethically. For above mentioned, we need moral competence. We need it to understand what goals will allow us to be true to our principles, and we need moral competence to act in alignment with our values and beliefs. When individuals with moral competence, they can align with their moral compass and have the awareness of moral rules and regulations to construct right behaviors (Lennick & Kiel, 2005). As we argued above that there is a positive influence of Individual materialism on moral transgression intentions. However, if individual materialism with higher moral competence, he/she will have a better understand what is right or wrongdoing and less likely to intent on moral transgression. Conversely, when individual materialism with lower moral competence, they will have no intrinsically moral compass to judge what is right or wrongdoing and likely to violate widely accepted moral norms in a manner within workplace. Thereby, we propose the following: Hypothesis 2: Individual moral competence moderates the relationship between individual materialism and his/her moral transgression intentions, such that the relationship is weaker for those with higher moral competence and stronger for those with lower moral competence. 3. Methodology 3.1 Research Participants The sample for this study consists of the students of M.B.A. degree program in the northern schools of management in Taiwan. A total of 400 paper questionnaires were sent out and 388 questionnaires were received. The overall sample size of three hundred and sixty four completed surveys are analyzed with a response rate of ninety-seven. Among the 364 participants, 64% were female, over half (63%) had at a master degree, and 72% were 2025 years old. 5 Proceedings of 10th Global Business and Social Science Research Conference 23 -24 June 2014, Radisson Blu Hotel, Beijing, China, ISBN: 978-1-922069-55-9 3.2 Research Design and Process This study was conducted in the form of a script experiment. Hammond’s (1955) policy capturing approach was adopted, in which experimenters present stimulus materials (profiles with various levels) to participants and request them to answer questions based on each of the profiles. In this study, eight individual profiles were designed based on the three dimensions of individual materialism: acquisition centrality (high vs low), acquisition as the pursuit of happiness (high vs low), and possession-defined success (high vs low) (see Appendix). Each profile represented a combination of one level of each of three dimensions. All participants were guided that this study was conducted to explore what influences individual moral transgression intentions. Each participant was directed to answer the individual information survey and a series of questions of moral competence about themselves on five-point Likert scales first, and then were asked to read the role in the script of eight individual profiles randomly arranged, in which were designed based on the three dimensions of individual materialism: acquisition centrality (high vs low), acquisition as the pursuit of happiness (high vs low), and possession-defined success (high vs low), and then to answer a series of questions of the moral transgression intentions based on the characteristics depicted in the script and three items used to manipulate the three dimensions on five-point Likert scales: "X puts more emphasis on material things and enjoys spending money on things that aren't practical." (acquisition centrality), "X would be any happier if he/she owned nicer things." (acquisition as the pursuit of happiness), and "X pay much attention to the material objects other people own and place emphasis on the amount of material objects people own as a sign of achievement or success." (possession-defined success). This study used a 222 between-subjects design, with three independent variables (acquisition centrality, acquisition as the pursuit of happiness, and possession-defined success), a dependent variable (moral transgression intentions), and a moderator variable (individual moral competence). The original script, moral transgression intentions, and individual moral competence questions were developed in English and then translated into Chinese, with a native Chinese speaker, who also understood English, editing the grammar and checking the content, and then back translating to English (Brislin, 1970). As a pretest, a script and moral transgression intentions scale were developed and given to thirty subjects to check whether all the manipulations were realistic and whether all subjects understood the instructions and the purpose of this study. After the pretest, the questionnaires were mailed to 400 subjects, who did not participate in the pretest, asking them to complete an anonymous survey. 3.3 Measure of Depend Variable: Moral Transgression Intentions A total of 15 items, adopted from Luna-Arocas and Tang’s (2004), were used to measure moral transgression intentions, consisting of abuse resources (“Use public resources for personal purposes.”), not whistle blowing (“Conceal private error.”), theft (“Embezzle public equipment.”), corruption (“Gifts or favors in exchange for preferential treatment.”) and deception (“Take credit for someone else’s work.”). The 15-item questionnaire reflected the extent to which the individual’s intention to have the unethical behaviors within the 6 Proceedings of 10th Global Business and Social Science Research Conference 23 -24 June 2014, Radisson Blu Hotel, Beijing, China, ISBN: 978-1-922069-55-9 workplace, as described on a 5-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree). Alpha reliability is measured as 0.96. 3.4 Measure of Moderator Variable: Individual Moral Competence A total of 10 items, adopted from moral competence inventory (MCI) of Lennick and Kiel’s (2005), are used to measure individual moral competence, consisting of integrity, responsibility, compassion, and forgiveness. Sample items are: “I am willing to accept the consequences of my mistakes.” and “My friends know they can depend on me to be truthful to them.” and produced an overall internal reliability coefficient of .71. 4. Results 4.1 Manipulation Checks T-test was used to check the manipulation validity of the scenario scripts of individual materialism for the samples. First, the results showed a significant difference for the samples regarding high centrality person and low centrality person, respectively (t = 15.554, p<.001, MeanHigh Centrality = 4.09, SDHigh Centrality = 1.013; MeanLow Centrality = 2.30, SDLow Centrality = 1.182). Second, the results showed a significant difference for the samples regarding high happiness person and low happiness person, respectively (t = 13.463, p<.001, MeanHigh Happiness = 4.13, SDHigh Happiness = 0.931; MeanLow Happiness = 2.52, SDLow Happiness = 1.324). Third, the results also showed a significant difference for the samples regarding high success person and low success person, respectively (t = 14.858, p<.001, MeanHigh Success = 4.04, SDHigh Success = 0.912; MeanLow Success = 2.31, SDLow Success = 1.290). 4.2 Effects of Individual Materialism on Moral Transgression Intentions The means and standard deviations are presented in Table 1. With respect to the moral transgression intentions for each of the eight people with individual materialism, the results show an order C>A>G>E>B>D>H>F under the moral transgression intentions. Meanwhile, the results showed that acquisition centrality and possession-defined success of individual materialism had distinguishable effects on the moral transgression intentions (see Table 2). Since this study used a three-dimension between-subjects design, ANCONA of General Linear Model (GLM) to test the study’s two hypotheses, using the individual’s gender, age, and educational level as control variables. The results showed that the main effects of acquisition centrality (F=29.950, p<0.001, 2=0.078) and possession-defined success (F=60.284, p<0.001, 2=0.146) of individual materialism, were significant respectively (see Table 2). It appears that individual moral transgression intentions according a higher percentage to individual with a high acquisition centrality and high possession-defined success. H1 was partially supported. 7 Proceedings of 10th Global Business and Social Science Research Conference 23 -24 June 2014, Radisson Blu Hotel, Beijing, China, ISBN: 978-1-922069-55-9 Table 1. Means and Standard Deviations of the Dimensions of Individual Materialism and Moral Transgression Intentions High Centrality Dimensions High Happiness Low Happiness High Happiness Low Happiness High Low High Low High Low High Low Success Success Success Success Success Success Success Success A B C D E F G H M 52.42 45.50 53.21 41.47 46.17 38.63 46.18 35.02 SD 11.60 13.17 10.12 9.63 10.33 10.74 12.13 11.93 Dependent Variable Moral Low Centrality Transgression Intentions Note: M = mean, SD = standard deviation, the sample size of each cell is 364. Table 2. Results of Repeated Measures GLM involving all Variables (N=364) Variables Controls Gender Age Education Acquisition Centrality (A) Acquisition as the Pursuit of Happiness (B) Possession-defined Success (C) Moral Transgression Intentions F 2 1.392 .478 9.013** 29.950*** 1.922 60.284*** 0.004 0.001 0.025 0.078 0.005 0.146 1.857* 1.776* 1.937* 0.123 0.113 0.115 Moral Competence (D) AD BD CD Note: 1. η2 shows effect size. 2. * p<0.05; ** p< 0.01; *** p<0.001. 8 Proceedings of 10th Global Business and Social Science Research Conference 23 -24 June 2014, Radisson Blu Hotel, Beijing, China, ISBN: 978-1-922069-55-9 Figure 1. Interaction Plot for Moral Competence as a Figure 2. Interaction Plot for Moral Competence as Moderator between Acquisition Centrality of a Moderator between Pursue Happiness of Materialism and Moral Transgression Intentions Materialism and Moral Transgression Intentions Figure 3. Interaction Plot for Moral Competence as a Moderator between Possession-defined Success of Materialism and Moral Transgression Intentions 4.3 Individual Materialism, Moral Competence and Moral Transgression Intentions Moreover, we examined the effects of individual moral competence (called as MC) (low vs. high) on moral transgression intentions. Results showed that individual moral competence (low/high) significantly moderated the effects of acquisition centrality (called as Centrality), acquisition as the pursuit of happiness (called as Happiness), and possession-defined success (called as Success) (CentralityMC (F=1.857, p<0.5, 2=0.123), Happiness MC (F=1.776, p<0.5, 2=0.113), CentralityMC (F=1.937, p<0.5, 2=0.115); see Figure 2). As individual with high MC, the difference between low and high Centrality was larger than individual with low MC (difference in high MC=4.76; difference in low MC=0.38) toward moral transgression intentions. Similarly, individual Happiness was less likely to intent on moral transgression with high MC than with low MC (difference in high MC=1.92; difference in low MC=1.13). As for individual Success, the difference between the high and low individual Success was larger high MC than with low MC (difference in high MC=1.86; 9 Proceedings of 10th Global Business and Social Science Research Conference 23 -24 June 2014, Radisson Blu Hotel, Beijing, China, ISBN: 978-1-922069-55-9 difference in low MC=0.48). Thus, H2 was fully supported. 5. Discussion The purpose of this current study was to explore the effects of individual materialism (i.e., acquisition centrality, acquisition as the pursuit of happiness, and possession-defined success) on his/her moral transgression intentions using a policy capturing approach. The results supported the partial hypotheses presented; implying that only acquisition centrality and possession-defined success of materialism had the main effects on individual moral transgression intentions, respectively. But the findings demonstrated that acquisition as the pursuit of happiness of individual materialism did not explain significant variances in moral transgression intentions. This is somewhat unexpected with our assumption. The potential explanation is that materialists might seek the proper way to extend the well-being of life, such as work hard to earn more wages in order to buy more luxuries. When the materialists lacked for happiness and well-being, they usually find a legitimate means in increasing their wealth and material possessions in order to obtain the pleasure or self-happiness. They did not exactly to intent on moral transgression (e.g., abuse Resources and theft) to accomplish these purposes. Though some studies argued that materialism is not necessarily either good or bad (e.g., Belk, 1984, 1985), however, this study mainly focuses on individual materialistic negative traits to explore individual moral transgression intentions. In other words, individuals with higher materialistic values of acquisition centrality and possession-defined success are most prone to have egoistic self-interest (Hogan, 1975) and engaged on moral transgression intentions (Bakker & Bakker-Rabdau, 1973). The findings are consistent with an ethical perspective, which emphasize that materialism is commonly viewed as a negative value (Bakker & Bakker-Rabdau, 1973; Belk, 1984; Feather, 1984; Furham, 1984; Hogan, 1975; MacDonald, 1972) and certain unethical behaviors are associated with higher levels of materialism (Barrett, 1992; Belk, 1988; Rudmin & Richins, 1992). The results also showed that the effect size of possession-defined success was the highest among the three dimensions of individual materialism, meaning that individual with higher transgression intentions are influenced by higher materialistic values of possession-defined success. In addition, this study also explored individual moral competence as a moderator on the relationship between these three dimensions of materialism and moral transgression intentions. The findings showed that individuals with higher moral competence can weaken the positive relationships between individual materialistic value of both acquisition centrality and possession-defined success of materialism and their moral transgression intentions. According to value theory, values are regarded as the criteria people use to select and justify actions and to evaluate people (including the self) and events (Schwartz, 1992). Moral competence, like a moral compass of value and belief, is considered as the criteria people use to act ethically. When individuals with higher moral competence, they are expected to represent ethical behavior, and less likely violate widely accepted moral norms in a manner within workplace (Lennick & Kiel, 2005). In other word individual with higher moral competence can buffer the positive influence of individual materialism on his/her moral transgression intentions than individuals with lower moral competence. The study supported Lennick and Kiel (2005) proposition of moral competence acting in alignment with our moral compass. Thus, if individuals with higher moral competence, they are likely 10 Proceedings of 10th Global Business and Social Science Research Conference 23 -24 June 2014, Radisson Blu Hotel, Beijing, China, ISBN: 978-1-922069-55-9 to follow the principles and norms within organizations, and are less inclined to act in moral transgressions. The study results also implied that individual differential is intuitively based on cognition and capability of moral competence. 5.1 Research Contribution and Limitations Prior research on individual materialism has tended to focus more on a variety of consumer behaviors with potentially negative outcomes (Chang & Arkin, 2002; Chaplin & John, 2007; Deci & Ryan, 1995; Durvasula & Lysonski, 2010; Fitzmaurice & Comegys, 2006; Kashdan & Breen, 2007; Rindfleisch, Burroughs & Denton, 1997; Roberts, Manolis & Tanner, 2003; Schroeder & Dugal, 1995; Tatzel, 2003). There have been far less research on the effects of individual materialism in moral transgression intentions (Vitell, 2003). However, this study explored how three dimensions of individual materialism (acquisition centrality, acquisition as the pursuit of happiness, and possession-defined success) affect moral transgression intentions in order to clarify the complexity of materialism in behaviors of human beings. Secondly, some researchers have claimed that moral competence is a very important issue to act in alignment with the values and beliefs (Lennick & Kiel, 2005), but very few studies have examined its effects. This current study represented an attempt to examine the joint effects of individual moral competence and materialism on the intentions of moral transgression. Meanwhile, the results showed that individual moral competence serves as a neutralizer when it was high. However, moral competence, a multi-dimensional construct including integrity, responsibility, compassion, and forgiveness (Lennick & Kiel, 2005), attention being neutralized by moral transgression intentions, can be viewed as a moral compass of value and belief, and then feel a responsibility to avoid the intentions on moral transgression in spite they moral suffered moral dilemma. That is to say, from the perspective of morality perspective, moral competence involved the recognition that in order to survive in a judgment of moral transgression situation, and then minimized the moral transgression intentions because of high moral judgment ability. Hence, companies may consider this behavioral persistence ability of moral competence as a potentially important topic on individual training and development. Although this study identified significant cognitive differences on moral transgression intentions based on different values of individual materialism, there are several limitations in such studies. First, this study was designed as simulated script experiment, and requested subjects to use their imagination to carry out the experiment beyond their organizations. Thus the survey subjects did not physically interact with the role described in the script experiment, and so a deviation between the experimental context and real life can be expected. Another limitation of this study is the manipulation of acquisition centrality, acquisition as the pursuit of happiness, and possession-defined success of individual materialism variables on two levels--“high” vs. “low”. However, experimental manipulation of the independent variable might be too brief. Although it could achieve the purpose of the experiment manipulation, but from the perspective of real life, people should not only two extreme levels, it should have more degree of distinction. Moreover, the sample population only consisted of the M.B.A. students in the northern schools of management in Taiwan, thereby; the results may be somewhat limited in their generalizability. This issue could be addressed in future research with a larger sample across a broader range. Aside from these limitations, this study points to some areas worthy of future research. 11 Proceedings of 10th Global Business and Social Science Research Conference 23 -24 June 2014, Radisson Blu Hotel, Beijing, China, ISBN: 978-1-922069-55-9 First, whether moral transgression intentions were influenced by individual materialism? If different individuals have different values and beliefs, then what else is the other factors influencing individual moral transgression intentions? Thereby, it’s worthwhile to further examine if there any other inner motives or factors that might stand out as an intermediary factor in the individual moral transgression intentions. 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He/she pays much attention to the material objects other people own and place much emphasis on the amount of material objects people own as a sign of achievement or He/she doesn’t pay much attention to the material objects other people own and doesn’t place much emphasis on the amount of material objects people own as a sign of achievement or Possession-defined Success success. success. 15