Abstract
This paper uses data for 53 countries from the World Values Survey in a multilevel regression analysis that seeks to disentangle individual, institutional and other-regarding factors affecting ethical decision-making. The dependent variable is an index of how intolerant people are of unethical conduct. The explanatory variables indicate the perceived trustworthiness and fairness of others. Controls include variables for individual and institutional factors. Findings are that perceptions of trustworthiness in people unknown to them and perceptions of fairness in others correlate with a greater tolerance of unethical behavior, especially in countries with moderate levels of institutional quality. High institutional quality moderates the negative relationship between perceptions and ethical attitudes. The findings confirm the relevance of other-regarding factors and reinforce the importance of quality institutions in supporting ethical decision-making.
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