The Determinants of Ethical Judgments at Local Government Agencies

Accounting Department, Universitas Muhammadiyah Yogyakarta, Indonesia

^* Corresponding author: ilhamsaud@umy.ac.id

Abstract

To ensure survival during the digital technologies’ transformation, an organization must pay attention to ethics implemented in the organization and its employees. Ethics supports transparency in financial and sustainability reporting, ensuring that information provided to stakeholders is accurate and honest. This study focuses on the determinants of ethical judgements in local government agencies. This study aims to examine the influence of educational qualification, current position, corporate ethical values, moral idealism, and moral relativism towards ethical judgments of the head and staff of accounting/finance division at local government agencies in South Sumatera. The subjects of this study are the head and staff of accounting/finance division at local government agencies in some regencies in South Sumatera. The samples consist of 100 respondents, selected using a purposive sampling method. The primary data were obtained by distributing questionnaires directly to the respondents. The data analysis used is Partial Least Square using SmartPLS version 3 as an analysis tool. The results of this study indicate that educational qualification and current position does not have significant influence towards ethical judgments. Meanwhile, corporate ethical values, moral idealism, and moral relativism have a positive influence towards ethical judgments.