In business ethics, there is a large body of literature focusing on the conditions, factors, and influences in the ethical decision-making processes. This work builds upon the past critical reviews by updating and extending the literature review found in Craft’s :221–259, 2013) study, extending her literature review to include a total of 141 articles. Since past reviews have focused on categorizing results based upon various independent variables, we instead synthesize and look at the trends of these based upon the four (...) ethical decision making categories: Awareness, Behavior, Judgment, and Intention. We focus on the moderation and mediation effects found within these studies and provide an in-depth analysis of future trends. Furthermore, we also highlight key statistical and methodological concerns, outline overarching trends, and directions of future research in empirical ethical decision making. (shrink)

We present a comprehensive model that integrates virtues, values, character strengths and ethical decision making (EDM). We describe how a largely consequentialist ethical framework has dominated most EDM scholarship to date. We suggest that reintroducing a virtue ethical perspective to existing EDM theories can help to illustrate deficiencies in existing decision-making models, and suggest that character strengths and motivational values can serve as natural bridges that link a virtue framework to EDM in organizations. In conjunction with the more fully formulated (...) extant research on situational determinants, we present and discuss our model that introduces a virtue based orientation to EDM. (shrink)

Many models of (un)ethical decision making assume that people decide rationally and are in principle able to evaluate their decisions from a moral point of view. However, people might behave unethically without being aware of it. They are ethically blind. Adopting a sensemaking approach, we argue that ethical blindness results from a complex interplay between individual sensemaking activities and context factors.

ABSTRACT:U.S. Organizational Sentencing Guidelines provide firms with incentives to develop formal ethics programs to promote ethical organizational cultures and thereby decrease corporate offenses. Yet critics argue such programs are cosmetic. Here we studied bank employees before and after the introduction of formal ethics training—an important component of formal ethics programs—to examine the effects of training on ethical organizational culture. Two years after a single training session, we find sustained, positive effects on indicators of an ethical organizational culture (observed unethical behavior, (...) intentions to behave ethically, perceptions of organizational efficacy in managing ethics, and the firm’s normative structure). While espoused organizational values also rose in importance post-training, the boost dissipated after the second year which suggests perceptions of values are not driving sustained behavioral improvements. This finding conflicts with past theory which asserts that enduring behavioral improvements arise from the inculcation of organizational values. Implications for future research are discussed. (shrink)

Scholars have shown renewed interest in the construct of courage. Recent studies have explored its theoretical underpinnings and measurement. Yet courage is generally discussed in its broad form to include physical, psychological, and moral features. To understand a more practical form of moral courage, research is needed to uncover how ethical challenges are effectively managed in organizational settings. We argue that professional moral courage (PMC) is a managerial competency. To describe it and derive items for scale development, we studied managers (...) in the U.S. military and examined prior work on moral courage. Two methods were used to measure PMC producing a five dimensional scale that organized under a single second-order factor, which we termed overall PMC. The five dimensions are moral agency, multiple values, endurance of threats, going beyond compliance, and moral goals. Convergent and discriminant validity are analyzed by use of confirmatory factor analysis procedures. We conclude by presenting a framework for proactive organizational ethics, which reflects how to support PMC as a management practice. (shrink)

The notion that business organizations are akin to Aristotelian political communities has been a central feature of research into virtue ethics in business. In this article, I begin by outlining this “community thesis” and go on to argue that psychological research into the “just world fallacy” presents it with a significant challenge. The just world fallacy undermines our ability to implement an Aristotelian conception of justice, to each as he or she is due, and imperils the relational equality required for (...) shared participation in communities. In the final section, I offer a description of what Aristotelian community might look like within organizations, and some suggestions about how it may be possible to resist the challenge posed by the just world fallacy. (shrink)

ABSTRACT:Scholars studying organizational justice have been slow to incorporate insights from behavioral ethics research, despite the fields’ conceptual affinities. We maintain that this stems from differences in the paradigmatic approaches taken by scholars in each area. First, justice research historically has assumed that individuals are motivated by a desire for instrumental control of worthwhile outcomes or by a concern with social status, while behavioral ethics has paid more attention to the role of internalized moral convictions and duties. Second, organizational justice (...) researchers have investigated one set of individual differences, behavioral researchers have examined another. Third, justice scholars focus on social identities while behavioral ethics scholars also investigate moral identities. As an impetus to future inquiry, our review attends to contemporary organizational justice research that takes into account concepts derived from behavioral ethics. In so doing we hope to highlight an avenue for integrative scholarship that will further our understanding of organizational justice. (shrink)

ABSTRACT:Despite sustained attention to ethical leadership in organizations, scholarship remains largely descriptive. This study employs an empirical approach to examine the consequences of ethical leadership on leader promotability. From a sample of ninety-six managers from two independent organizations, we found that ethical leaders were increasingly likely to be rated by their superior as exhibiting potential to reach senior leadership positions. However, leaders who displayed increased ethical leadership were no more likely to be viewed as promotable in the near-term compared to (...) those who displayed less ethical leadership. Our findings also show ethical culture and pressure to achieve results are important contextual factors that moderate the relationships between ethical leadership and leader promotability to senior leadership roles. (shrink)

Organizational ethics and institutional theories are extended by recovering Weberian and Pre-Weberian theorizing that emphasized the joining of ethics and institutional theories. Understanding how ethics and institutional systems influence each other can advance our understanding of the nature and causes of structural organizational ethics issues and help guide potential reforms. We consider the interplay of these elements during the recession of 2008–2009, highlighting how structural ethics problems may have to be addressed at the institutional levels and not solely the individual (...) or organizational levels. (shrink)

This article takes a novel approach to explaining the causes of unethical behavior in organizations. Instead of explaining the unethical behavior of employees in terms of their bad organization, this article examines how a good organization can lead to employees’ unethical behavior. The main idea is that the more ethical an organization becomes, the higher, in some respects, is the likelihood of unethical behavior. This is due to four threatening forces that become stronger when an organization becomes more ethical. These (...) forces are the upward, downward, backward, and forward forces. Each of these forces is illustrated with two effects and each effect is explained by a specific theory. The effects are the effects of the gold digger, high-jump bar, retreating-cat, forbidden-fruit, cheese slicer, moving-spotlight, repeat-prescription, and keeping-up appearances. This paradox of ethics, when goodness breeds badness, opens new research directions. (shrink)

Workplace incivility is a current challenge in organizations, including smaller firms, as is the development of programs that enhance employees’ treatment of coworkers and ethical decision making. Ethics programs in particular might attenuate tendencies toward interpersonal misconduct, which can harm ethical reasoning. Consequently, this study evaluated the relationships among the presence of ethics codes and employees’ locus of control, social aversion/malevolence, and ethical judgments of incivility using information secured from a sample of businesspersons employed in smaller organizations. Results indicated that (...) ethics code presence was associated with a more internal locus of control and stronger ethical judgment of workplace incivility. Social aversion/malevolence was negatively related to ethical judgment, and internal locus of control was positively related to ethical judgment. Smaller firms should develop ethics codes to manage individuals’ perceptions of control, thus encouraging enhanced ethical reasoning in situations that involve the mistreatment of coworkers; they should also monitor counterproductive tendencies that harm such reasoning and precipitate incivility. (shrink)

ABSTRACT:Despite widespread attention to corruption and organizational change in the literature, to our knowledge, no research has attempted to understand the linkages between these two powerful organizational phenomena. Accordingly, we draw on major theories in ethics, sociology, and management to develop a theoretical framework for understanding how organizational change can sometimes generate corruption. We extend anomie theory and ethical climate theory to articulate the deinstitutionalization of the normative control system and argue that, through this deinstitutionalization, organizations have the potential to (...) become incubators for corruption. We qualify this process by proposing conditions more ripe for anomie and under which this deinstitutionalization is more likely to occur, propounding moderating relationships that influence organizational reconfiguration. Examples of turbulence in the contemporary business environment that can trigger change highlight our discussion. We conclude with managerial implications, offering means by which the deleterious effects of corruption may be arrested or controlled. (shrink)

Relying on an expanded view of leadership and the moral reasoning framework developed by Lawrence Kohlberg (1981), this study explores the moral reasoning of the chief executive officers at the 11 largest automobile manufacturers in the world. Using the CEO's letter to their stakeholders found in the organizations' annual social responsibility reports, the CEOs' moral reasoning is compared to other managers' moral reasoning, and the moral reasoning exhibited within the CEO group is analyzed for differences due to regional location. Contrary (...) to conventional understanding based on prior research, the CEOs in our sample did not exhibit moral reasoning at a higher level than a cross section of managers but there were differences within the sample of CEOs when looking at nationality. Implications of these results for CEOs, managers, academics, and others are explored. (shrink)

Although the trickle-down effect of ethical leadership has been documented in the literature, its underlying mechanism still remains largely unclear. To address this gap, we develop a cross-level dual-process model to explain how the effect occurs. Drawing on social learning theory, we hypothesize that the ethical leadership of high-level managers could cascade to middle-level supervisors via its impact on middle-level supervisors’ two ethical expectations. Using a sample of 69 middle-level supervisors and 381 subordinates across 69 sub-branches from a large banking (...) firm in China, we found that middle-level supervisors’ ethical efficacy expectation and unethical behavior–punishment expectation accounted for the trickle-down effect. The explanatory role of middle-level supervisors’ ethical behavior–reward expectation, however, was not supported. The theoretical and practical implications are discussed. (shrink)

More and more scholars are expressing their apprehensions regarding the current state of management education. The increased number of corporate scandals has fueled their concerns that training students to have sound business ethics upon graduation has failed. Consequently, research is emerging that focuses on the lack of impact that business ethics teaching has had on students in recent years. Remarkably, the voice of managers has barely been heard in this area, even though they are the ones who are among those (...) best suited to evaluate graduates’ capabilities to solve ethical dilemmas. This research presents the managers’ view on the role of business schools in training students in business ethics, and the managers’ evaluation of business schools’ success in that area. The findings reveal that managers are quite disappointed with the lack of improvement in the ethics of graduating students. Managers nonetheless provide a range of ideas for business schools to work on, and particularly, call for closer collaboration between industry and business schools. (shrink)

This article details day-to-day ethics issues facing MBAs who occupy entry-level and mid-level management positions and offers defined examples of the stressors these managers face. The study includes lower-level managers, essentially excluded from extant literature, and focuses on workplace behaviors both undertaken and observed. Results indicate that pressures from internal organization sources, and ambiguity in letter versus spirit of rules, account for over a third of the most frequent unethical situations encountered, and that most managers did not expect to face (...) those issues. Various contextual factors accounted for 32% of the organizational factors that affected decisions. We discuss implications for the workplace, especially the unique ethics challenges for newer managers. (shrink)

Business ethics educators strive to produce graduates who not only grasp the principles of ethical decision-making, but who can apply that business ethics education when faced with real-world challenges. However, this has proven especially difficult, as good intentions do not always translate into ethical awareness and action. Complementing a behavioral ethics approach with insights from social psychology, we developed an interventional class module with both online and in-class elements aimed at increasing students’ awareness of their own susceptibility to unconscious biases (...) and, consequently, unethical behaviors. We deployed this intervention within a problem-based learning course, in which students completed real-world projects for actual business clients. Our results suggest that although students appeared universally aware of the importance of ethical issues in business and generally espoused intentions to act ethically, those who received the intervention were significantly more likely to recognize their own susceptibility to perpetuating unethical business behavior and to identify ethical issues specific to their real-world projects. These results have important implications for behavioral ethics pedagogy and provide a de-biasing interventional approach for bridging classroom knowledge with real-world skills. (shrink)

The literature on organizational ethicality to date has focused primarily on elements of the cultural, social, and political factors that enhance positive behaviors, interspersed with isolated accounts of malfeasance and wrongdoing. This treatise defines the anatomy of organizational dysfunction as a matter of ethicality, reframing the relationship from individual transgression to the organization itself. It is argued that the structure of an organization predisposes in large part whether it is itself conducive or prohibitive to unethical acts. Our approach allows for (...) a new stream of ethics research whose focus is how an organization functions rather than on the specific acts of those within it. (shrink)

Most business ethics scholars interested in understanding individual moral cognition or reasoning rely on the Defining Issues Test. They typically report that managers and business students exhibit a relatively high percentage of principled moral reasoning when resolving ethical dilemmas. This article applies neurocognitive processes and Bloom’s Taxonomy of Educational Objectives, and its more recent revision, as theoretical foundations to explore whether differences emerge when using a recognition of learning task, such as the DIT or similar instruments, versus a formulation of (...) knowledge task, such as the Moral Judgment Interview or similar instruments, to assess individual moral reasoning. The data show that significantly different levels of moral reasoning are detected when using a recognition-based versus formulation-based moral reasoning instrument. As expected, the recognition-based approach reports an inflated, higher moral reasoning score for subjects compared with using a formulation-based instrument. Implications of these results for understanding an individual’s moral reasoning are discussed. (shrink)

ABSTRACT:Despite sustained attention to ethical leadership in organizations, scholarship remains largely descriptive. This study employs an empirical approach to examine the consequences of ethical leadership on leader promotability. From a sample of ninety-six managers from two independent organizations, we found that ethical leaders were increasingly likely to be rated by their superior as exhibiting potential to reach senior leadership positions. However, leaders who displayed increased ethical leadership were no more likely to be viewed as promotable in the near-term compared to (...) those who displayed less ethical leadership. Our findings also show ethical culture and pressure to achieve results are important contextual factors that moderate the relationships between ethical leadership and leader promotability to senior leadership roles. (shrink)

Trade secret theft is a problem that almost all organizations face. The greatest threat is employee mobility and potential unethical post-employment behavior. This study investigates the role of individual personality traits in judgments about trade secret misappropriation. Our hypotheses were tested in three studies addressing three different situational contexts: current employees, employees about to be laid off, and students who had quit their job. Relationships were estimated with robust regression. The results show that some personality traits predict judgment about another (...) person's trade secret misappropriation, and that the situational context in which individuals formulate their ethical judgment moderates the impact of personality traits on ethical judgment. (shrink)

This study investigates the possible effects of self-concept, self-monitoring, and moral development level on dimensions of consumers' ethical attitudes. "Actively benefiting from illegal activities," "actively benefiting from deceptive practices," and "no harm/no foul 1—2" are defined by factor analysis as four dimensions of Turkish consumers' ethical attitudes. Logistic regression analysis is applied to data collected from 516 Turkish households. Results indicate that self-monitoring and moral development level predicted consumer ethics in relation to "actively benefiting from questionable practices" and "no harm/no (...) foul" dimensions. Actual selfconcept is also a predictor variable in relation to "no harm/no foul" dimension. Age and gender make significant differences in consumers' ethical attribute dimensions. (shrink)

AbstractEnduring unethical behavior in trading has generated much research interest, and scholars disagree on the reasons for this situation. According to MacIntyre (2015), this has to do with the personal traits of traders, whereas Rocchi and Thunder (2019) argue this is due to permissive work environment that can potentially be changed to favoring ethical trading. We contribute to this debate by exploring how interactions between organizational culture and management control systems (MCSs) may affect the enduring unethical behaviors of traders. We (...) conceptualize this with the concepts of organized hypocrisy (Brunsson 1986, 1989, 1993) and decoupling (Meyer and Rowan 1977). An in-depth case study of fraud (Jerome Kerviel at Societe Generale), informs the empirical inquiry. We develop the concept of organized decoupling to characterize how the MCSs are articulated with the organizational culture favoring unethical behavior, while being used as a ‘safety mechanism’ to manage the legal and reputational risk of the bank. The analysis highlights three key features of the organized decoupling of MCS: physical distance, technical distance and social distance. The study contribution lies in showing that decoupling is not only emergent but might be intended and therefore organized. The findings also raise doubts on the role of MCSs in monitoring trading activities as presented by investment banking institutions and regulators, suggesting more organized hypocrisy, and raising significant concerns regarding the creation of tolerable work environment welcoming ethical behaviors in the investment banking sector. (shrink)

The ethical judgment of Chinese business leaders has become increasingly important particularly due to the important role that China plays in the global economy. Previous studies tend to categorize Chinese managers as more relativist and thus more lenient in their ethical judgments. In this study we survey 256 senior managers from mainland China and find that they are in fact less relativist and more idealist than the global average. A significant portion of them are absolutists which imply that these managers (...) believe that positive consequences should result from ethical decisions based on universal moral rules. Our findings question the implications made by previous researchers that among Chinese managers there is a less than clear demarcation between right and wrong. We conclude that business leaders in China would be more supportive of codes of conduct and other ethical behaviour because of the ethical position they hold. (shrink)

We test conformity-related values applying the value-pragmatics hypothesis by evaluating how personal values related to compliance moderate the relationships between situational factors and unethical decisions. We examine the direct and indirect effects of the values of traditionalism, conformity, and stimulation, as they combine with the situational factors of rewards and punishments in the person–situation interaction model. We find strong support for the value-pragmatics view of ethical decision making and further build support for the person–situation interaction model.

ABSTRACT:U.S. Organizational Sentencing Guidelines provide firms with incentives to develop formal ethics programs to promote ethical organizational cultures and thereby decrease corporate offenses. Yet critics argue such programs are cosmetic. Here we studied bank employees before and after the introduction of formal ethics training—an important component of formal ethics programs—to examine the effects of training on ethical organizational culture. Two years after a single training session, we find sustained, positive effects on indicators of an ethical organizational culture (observed unethical behavior, (...) intentions to behave ethically, perceptions of organizational efficacy in managing ethics, and the firm’s normative structure). While espoused organizational values also rose in importance post-training, the boost dissipated after the second year which suggests perceptions of values are not driving sustained behavioral improvements. This finding conflicts with past theory which asserts that enduring behavioral improvements arise from the inculcation of organizational values. Implications for future research are discussed. (shrink)

Explanations of organizational misconduct frequently point to declining firm performance and/or the actions of unethical or suspect leaders. Evidence that high-performing firms act illegally or unethically is an enigma. The purpose of this paper is to address these issues by exploring organizational performance using aspirational rather than absolute measures and examining the effect that suspect leader succession has on the increased probability of organizational misconduct. Our analysis of 128 collegiate football programs competing between 1953 and 2016 reveals an increased likelihood (...) of misconduct among organizations with strong as well as weak performance, most notably in comparison to competitive peer programs. Social- and self-referenced aspirations produced distinct relationships between relative performance and misconduct. The impact of leader succession was conditional. The data revealed an increased likelihood of infraction episodes with the appointment of suspect leaders. In some instances, however, a reduced likelihood of misconduct accompanied succession events involving untainted leaders. (shrink)

There are a number of agricultural farming practices that are controversial. These may include using chemical fertilizers, pesticides, and herbicides, and planting genetically modified crops, as well as the decision to dehorn cattle rather than raise polled cattle breeds. We use data from a survey of Missouri crop and livestock producers to determine whether a farmer’s ethical framework affects his or her decision to engage in these practices. We find that a plurality of farmers prefer an agricultural policy that reflects (...) principles based on rights rather than principles of utilitarianism or justice. Furthermore, after controlling for personal and farm characteristics, we find a positive correlation between farmers preferring a rights-based policy and a farmer’s use of chemical farm inputs and polled rather than horned cattle. We also find that a combination of ethical framework and farm and farmer characteristics correlate with decisions to use farm chemicals, while only farm and farmer characteristics affect the decision to plant GM crops and only a farmer’s ethical framework affects the decision to use polled cattle. (shrink)

Scholarship into the empirical relationship between moral intensity (MI) and ethical decision-making (EDM) offers only equivocal empirical results. This ethical decision-making study is the first cumulative review to synthesize and assess over three decades of research into Jones’ (1991) MI construct by investigating the influence of each of the MI characteristics on Rest’s (1986) ethical decision-making stages (EDMS): awareness, judgment, intention, and behavior. After classifying 125 empirical papers according to the effect each moral intensity characteristic has on each EDMS, only (...) two of six MI characteristics (magnitude of consequences and social consensus) were found to have a consistent positive association, three characteristics were observed to have a moderate relationship (temporal immediacy, concentration of effect, and probability of effect), while proximity appears to have only a weak connection with EDM. This research review challenges the current conceptualization of the MI construct on both empirical and theoretical grounds. The analysis concludes with a brief discussion of the managerial implications of the analysis. (shrink)

In a time when ethical scandals are commonplace in the media, one begins to wonder just what organizations are doing wrong. This article analyzes the Fall 2006 boardroom spying scandal at Hewlett–Packard to determine whether the workplace deviance observed can be linked to a retaliatory response to organizational power. A summary of the events leading up to, during, and the fall-out of the scandal is reported.

To understand how compliance develops both in everyday and corporate environments, it is crucial to understand how different mechanisms work together to shape individuals’ (non)compliant behavior. Existing compliance studies typically focus on a subset of theories (i.e., rational choice theories, social theories, legitimacy theories, capacity theories, and opportunity theories) to understand how key variables from one or several of these theories shape individual compliance. The present study provides a first integrated understanding of compliance, rooted in complexity science, in which key (...) elements from these theories are considered simultaneously, and their relations to compliance and each other are explored using network analysis. This approach is developed by analyzing online survey data (_N_ = 562) about compliance with COVID-19 mitigation measures. Traditional regression analysis shows that elements from nearly all major compliance theories (except for social theories) are associated with compliance. The network analysis revealed groupings and interconnections of variables that did not track the existing compliance theories and point to a complexity overlooked in existing compliance research. These findings demonstrate a fundamentally different perspective on compliance, which moves away from traditional narrow, non-network approaches. Instead, they showcase a complexity science understanding of compliance, in which compliance is understood as a network of interacting variables derived from different theories that interact with compliance. This points to a new research agenda that is oriented on mapping compliance networks, and testing and modelling how regulatory and management interventions interact with each other and compliance within such networks. (shrink)

Organizational leaders are increasingly emphasizing a stakeholder perspective in order to address concerns about business ethics. This study examined the choices of 94 groups in the context of a business decision-making simulation to determine how specific actions and communications can facilitate the consideration of different stakeholder perspectives. In particular, we examined whether generally framing the business situation as one involving diverse stakeholders versus a primarily profit-driven operation (referred to as framing), and whether specific suggestions that participants consider the concerns of (...) stakeholders versus stockholders in maximizing the value of the firm (referred to as vision priming), would influence group choices and decision outcomes. We tested four experimental conditions against a control in a 2 × 2 experimental design to determine the effects that group choices had on decision outcomes when groups were exposed to stakeholder versus stockholder decision framing and stakeholder versus stockholder vision priming. The results revealed that the consistent conditions outperformed the control condition and that vision priming has a greater impact on decision outcomes than decision framing. (shrink)

What makes people behave ethically continues to be at the forefront of business ethics research. The stylistic makeup of the decision-maker has been suspected to influence individual ethical behavior; however, this body of research accounts only for a handful of studies. This paper investigates the influence of decision-making styles as an individual difference on unethical behavior, independently from other personal characteristics. Covering a sample of 230 managers, we utilize the preeminent measures of these two constructs in a self-report survey. Our (...) results suggest that the decision-making styles of managers do influence their ethical behavior. Whereas managers with a dominant rational or spontaneous style behave ethically, having a more intuitive or avoidant makes them behave less ethically. The results also reveal that with higher levels of education, managers become more unethical. This research conveys important implications for management practice, education, and training. (shrink)

There is an extensive literature on the allocation of medical resources in many disciplines including ethics, law, medicine, psychology and sociology (Cicognani et al., 2007; Krütli et al., 2016; P...

The purpose of this study is to investigate the effect of job attitudes on unethical behavior. Until now, job-related attitudes have been relatively ignored in the research area of ethical behavior and thus we suggest job dedication and organizational commitment as individual antecedents.Second, we examine the relationship between ethical climate and unethical behavior. Finally, this study explores the moderating effect of job relate burnout on the relationship of focal variables in this study.Job burnout was composed of two dimensions: disengagement and (...) exhaustion. Empirical study of this research used 204 employees’ questionnaires and hierarchical moderated regression analysis to test our hypotheses. Research findings are as follows. First, the results revealed that job dedication and organizational commitment had significantly negative impact on the unethical behavior. Therefore hypothesis 1and 2 were supported.Second, the negative relationship between ethical climate and unethical behavior was revealed statistically, and supported hypothesis 3.Third, according to the empirical results, job burnout partly moderated the relationship between focal variables of this study and unethical behavior. In particular, a higher level of disengagement decreases the negative impact of job dedication on unethical behavior, whereas a higher level of exhaustion decreases the negative effect of ethical climate on unethical behavior. Thus hypothesis 4 partially supported.Finally, we discussed some research implications and limitations of this study. (shrink)

Implicit morality theories refer to people’s beliefs about whether individuals’ moral character is fixed or malleable. Drawing on the social cognitive theory of morality, we examine the relationship between employees’ implicit morality theories and their organizational citizenship behaviors toward coworkers (OCBC) and coworker-directed deviance (CDD) through a moral self-regulatory mechanism. A laboratory experiment (Study 1), an online experiment (Study 2), and a multi-wave, multi-source field survey (Study 3) found that the more employees held a fixed belief about morality, the lower (...) their sense of moral control, especially when their moral identity was lower. This perceived lack of moral control, in turn, predicted decreased OCBC, particularly when the workgroup ethical climate was weak. However, this relationship did not hold for CDD. Overall, our research highlights implicit morality theories as a novel antecedent of employees’ workplace behaviors, and identifies the underlying moral self-regulatory process, along with individual and situational boundary conditions. (shrink)

This paper synthesises the research related to managing conflict of interests in professional accounting firms. The main purpose is to provide information about the current state of knowledge on this topic and to highlight the areas requiring further research. The extant research has been reviewed by developing a framework through the integration of Risk Management Framework by ISO 31000:2009 and the International Code of Ethics for Professional Accountants. Specifically, literature has been classified across the establishment of context, assessment, treatment, control (...) and monitoring of conflict of interests. The literature reveals that there is a lack of understanding about how the conflict of interests operates at the level of an individual accounting professional. Addressing this gap will help to develop behavioural interventions for strengthening the professionals’ independence in fact and, thereby, facilitating the management of conflict of interests. The key message this synthesised research provides for professional accounting firms and the regulators is that, for effective management of conflict of interests, behavioural interventions should be informed by the professionals’ unconscious as well as their conscious cognitive processes. This study is the first one to view the conflict of interests in a professional accounting environment through the lens of behavioural risk management. Moreover, the framework adopted for reviewing the extant literature provides a comprehensive view of the issues surrounding the ineffective management of the conflict of interests. (shrink)

The importance of spiritual capital of individuals can be traced back to the resistance of independent auditors in the face of client manager power in ethical dilemma situations. This capital which is defined as a component of intellectual capital is integrated to auditors’ livelihood. This research found some related individual factors in auditing area and classified them under SpCi. Morals, ethics, personal values, and culture are the four most related factors which are applied as dimensions of SpCi in auditing area. (...) Hence, this paper attempts to investigate into the effect of SpCi and its four dimensions on an independent auditor’s opinion. The respondents of this research were 321 Iranian audit managers and partners. The data were collected through questionnaires, and multiple regressions were applied to analyze the data. The results showed that the SpCi and its dimensions affect an independent auditor’s opinion. (shrink)

Individual actions designed to address issues of public concern is a common theme in the discourse on how to mobilize resources and target efforts toward sustainable practices. We contribute to this area by developing and empirically validating a multidimensional scale for civic engagement; synthesizing and testing the adequacy of the theory of planned behavior and the value–belief–norm theory in explaining civic engagement; and considering how an individual’s orientation, identity, and beliefs motivate moral thinking and action. The focus is on the (...) important social issues of global warming and climate change, income inequality, and world poverty, and hunger. We follow both correlational and configurational approaches to examine symmetric and asymmetric causal relationships, respectively. The findings from a sample of 819 US citizens reveal that the TPB and VBN theory can adequately explain civic engagement, after we control for the influence of past experience. In addition, while belief in a just world inhibits the occurrence of adverse consequences and the formation of positive attitudes, social value orientation, and moral identity facilitate them. Notably, at least two causal conditions need to be present for adverse confsequences to emerge, while moral identity is almost a necessary condition for the development of positive attitudes. We conclude with a discussion of important implications for researchers and practitioners. (shrink)

We acknowledge the limitations in measures of moral reasoning and pursue an alternative technique by investigating past behaviors as they relate to present behavioral intentions. Our purpose is to evaluate the merits of patterned normative behavior for predicting present and future, morally relevant outcomes. Participants completed a policy capturing experimental design responding to questions that orthogonally varied the situational nature of the decision context. Results indicate that past normative behaviors are significantly and directly related to ethical behavioral intentions. Moreover, they (...) moderate the relationships between situational factors and intended outcomes as well as moral reasoning and intended outcomes. (shrink)

The relationship between unethical peer behavior and observers’ unethical behavior traditionally has been examined from a social learning perspective. We employ two additional theoretical lenses, social identity theory and social comparison theory, each of which offers additional insight into this relationship. Data from 600 undergraduate business students in two universities provide support for all the three perspectives, suggesting that unethical behavior is influenced by social learning, social identity, and social comparison processes. Implications for managers and future research are discussed.

As corporate scandals proliferate, organizational researchers and practitioners have made calls for research providing guidance for those wishing to influence positive moral decision-making and behavior in the workplace. This study incorporates social cognitive theory and a vignette-based cognitive measure for moral imagination to examine (a) moral attentiveness and employee creativity as important antecedents of moral imagination and (b) creativity as a moderator of the positive relationship between moral attentiveness and moral imagination. Based on the results from supervisor–subordinate dyadic data (N (...) = 162) obtained from employed students, hypotheses were largely supported as expected. Implications are discussed. (shrink)

Scandals in companies such as Enron have been a source of great concern in the last decade. The events that led to a global financial crisis in 2008 have heightened this concern. How does one account for executive behaviors that led to such a crisis? This article argues that a conjunction of motive, means, and opportunity creates ‘an ethical hazard’ making questionable executive decisions more probable. It then suggests that corporate unethical behavior can be minimized by creating a process to (...) identify and remove such ethical hazards, and by appointing an ‘ethical hazards marshal.’. (shrink)