This study examines how cultural intelligence influences ethical decision-making among senior executives in Bangladesh, an emerging economy with evolving governance and financial reporting practices. It aims to identify which dimensions of cultural intelligence most strongly predict ethical judgments in accounting scenarios and to propose a framework for strengthening governance and leadership development.
Data were collected through a structured survey of 250 executives from finance, human resources, operations, and marketing departments in companies listed on the Dhaka Stock Exchange. Statistical analyses, including exploratory factor analysis, multiple linear regression, and analysis of variance, were employed to assess the influence of cultural intelligence dimensions, metacognitive, cognitive, motivational, and behavioral, on ethical judgment.
All four dimensions of cultural intelligence significantly affect ethical decision-making in financial reporting contexts, with behavioral and metacognitive intelligence showing the strongest predictive effects. Notable departmental differences were observed, with finance executives displaying distinct ethical reasoning patterns compared to non-finance functions. The study introduces a Cultural Intelligence-Based Ethical Governance Framework (CQ-EGF) to enhance ethical leadership and governance practices in Bangladesh and potentially other comparable emerging economies.
The study is limited to executives from publicly listed companies in Bangladesh, which may affect generalizability across other emerging economies. Future research could expand to cross-country comparative studies.
Findings emphasize the need for culturally enriched ethics training, executive development programs, and governance reforms in emerging markets. The proposed framework provides actionable pathways for professional accounting bodies, regulators, and corporate leaders.
By strengthening ethical decision-making and governance practices, the study may contribute to improving corporate accountability, financial transparency, and sustainable development within Bangladesh and comparable markets.
This paper contributes to the literature by integrating cultural intelligence into the study of accounting ethics and governance. It offers novel empirical evidence from an emerging economy and proposes a governance framework that bridges cultural, ethical, and institutional dimensions of executive decision-making within similar contextual settings.
