Abstract
Building on previous literature on corporate behavior, we examine the impact of an nongovernmental organization’s (NGO) foreign status on the moral judgment of its actions in a host country. Individuals in Algeria (N = 450) rated the ethicality of analogous ethical and unethical actions of domestic (Algerian) and foreign NGOs (European). For ethical actions, a foreign NGO was considered less positively than a local NGO for two scenarios out of three. For unethical actions, a foreign NGO was judged more severely in one scenario only. These results suggest that foreign status can influence moral judgment in a way that is consistent with liability-of-foreignness effect predictions. A foreign-sounding denomination can put an NGO at a relative disadvantage compared with its domestic counterpart. Consequently, the denomination choice should be carefully examined.
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