Dysfunctional Behavior, mainly Corruption, pervasively happens in Indonesia. Business people believe
in "The Myth of Amoral Business" in which the meaning of business is profit. The focus of business is to get
maximum profit because profit is perceived as an ultimate goal. Business people always separate business from
ethical dimension.
In budgeting, dysfunctional behavior manifests in the form of Budgetary Slack. Middle and Low level
managers create slack in their budget proposals by underestimating revenues and overestimating expenses
intentionally. The objectives of this behavior are anticipating uncertainties and increasing bonuses.
Dysfunctional behavior can be weakened by strengthening Ethical Ideology of managers involved in
budgeting. Managers with strong Ethical Ideology will behave in the best interest of the company as a whole;
on the other hand, managers· with weak ethical ideology will maximize their own interest in the expense of
companies' interest.
The objective of this research is to examine the effects of organizational commitment on budgetary slack
and the role of ethical ideology in moderating these two variables. For this purpose, the data are collected from
187 middle level and top level private company's managers via questionnaire. The result of this research shows
that Ethical Ideology weakens the effect of Organizational Commitment on Budgetary Slack.