Employee decision-making: the role of egoism and altruism in corporate spending behavior

Purpose This study aims to explore how financial responsibility influences employee decision-making within organizational settings, particularly in the context of discretionary corporate spending. Design/methodology/approach Drawing on a vignette-based experimental design, the authors examine how individuals’ choices – specifically in selecting dining options – are shaped by the source of payment (personal funds vs employer reimbursement) and psychological traits, namely, egoism and altruism. Findings Findings reveal that employees exhibit higher cost-consciousness when personally accountable for expenses, while those spending company funds tend to choose higher-priced options with reduced evaluative effort. Moreover, egoistic individuals are more likely to escalate spending when reimbursed by the employer, whereas altruistic individuals remain fiscally conservative across conditions. These results highlight the role of individual differences and perceived financial accountability in organizational decision-making. Originality/value This study contributes to organizational psychology by offering insights into how personality traits and contextual financial cues jointly shape employee behavior, with implications for expense policy design and ethical workplace practices.