Determinants of Ethical Decision-Making: A Study on the Role of the Professionalism of Members of the Indonesian Association of Tax Consultants

Abstract

This study aims to examine and analyze the direct influence among Machiavellian Traits, Perceptions of Ethics and Social Responsibility, and Risk Preference on Tax Consultant Ethical Decision Making. The novelty of this research is to use of the professionalism of tax consultants as members of the profession as a moderating variable. It is expected that the professionalism of the tax consultant can limit the occurrence of unethical decision making by tax consultant. The respondents were all tax consultants registered with the Indonesian Tax Consultants Association for the Pekanbaru region. Data analysis techniques in this study using Structural Equation Modeling– Partial Least Square (SEM-PLS) Smart-PLS Software version 4.0. This study found that Machiavellian traits, ethical perceptions and social responsibility, and risk preferences have an influence on the ethical decision-making of tax consultants. This study also found that professionalism moderates the effect of Machiavellian Traits, Perceptions of Ethics and Social Responsibility, and Risk Preference on Ethical Decision Making. This study offers theoretical and practical implications for strengthening attitudes that always prioritize ethics in every decision-making. Ethical decision making can be done by reducing Machiavellian traits, considering ethics and social responsibility, and always considering the risks that will be faced because of the decisions to be taken. The value of the study provides an academic contribution regarding the effect of Machiavellian traits, ethical perception, and social responsibility, and also risk preference, and the moderating role of professionalism in reducing unethical decision making.