This research compares the importance of moral values for corporations' managements, as reported by 97 knowledgeable employees in eight corporations. Does an employee consensus emerge within corporations and does it differ between corporations? To answer this question, an analysis of covariance technique was used to compare the importance of moral values between corporations versus within corporations. Results corroborate the hypothesis that closely matched corporations do differ significantly from one another in the importance of prevailing moral values. Evidence also suggests that (...) the importance of prevailing moral values may be inversely related with company size. Implications for future research and for the practice of management are delineated. (shrink)

This paper looks at the impact of the Business & Society Course on student's attitude towards and awareness of both ethical and illegal behavior. Business students were surveyed on the first and last day of the semesters on 11 ethical and legal scenarios. The population included three sections of the Business and Society course and three sections of other business courses as a control group. Though generalizability is limited, the courses show some potential to positively impact student's attitudes.Currently, ethics is (...) of great concern at business schools in this country. Accreditation standards of both the AACSB and ACBSP both require an ethical component to a business curriculum as a condition of accreditation. A majority of business schools at both the undergraduate and graduate level have required or at least elective courses in ethics. (shrink)

The managerial ethics literature is used as a base for the inclusion of Ethical Attribution, as an element in the consumer's decision process. A situational model of ethical consideration in consumer behavior is proposed and examined for Personal vs. Vicarious effects. Using a path analytic approach, unique structures are reported for Personal and Vicarious situations in the evaluation of a seller's unethical behavior. An attributional paradigm is suggested to explain the results.

Using 94 published empirical articles in academic journals as a data base, this paper provides a critical review of the methodology employed in the study of ethical beliefs and behavior of organizational members. The review revealed that full methodological detail was provided in less than one half of the articles. Further, the majority of empirical research articles expressed no concern for the reliability or validity of measures, were characterized by low response rates, used convenience samples, and did not offer a (...) theoretic framework, hypotheses, or a definition of ethics. Several recommendations, including a reviewer rating form addressing methodological decisions and inclusion of methodologists on the review panel, are offered to improve methodological rigor in published ethics research. (shrink)

Efforts to promote ethical behaviour in business and academic contexts have raised awareness of the need for an ethical orientation in business students. This study examines the similarities and differences between the personal values of Iranian and Australian business students and their attitudes to cheating behaviour in universities and unethical practices in business settings. Exploratory factory analysis provided support for three distinct ethics factors—serious academic ethical misconduct, minor academic ethical misconduct, and business ethical misconduct. Results reveal statistically significant differences between (...) the two cultural groups for ethical (altruism/universalism) values, and for attitudes to serious academic misconduct. No differences were found between the two groups for attitudes to minor academic unethical practices or unethical business practices. Gender influenced responses where females were found to indicate higher levels of unacceptability of unethical practices in academic and business settings than males. This pilot study highlights the need for higher education institutions to develop and enforce policies and practices to publicise, encourage and reinforce higher awareness of the need for adhering to ethical behaviour in university studies as a necessary component of training business professionals. (shrink)

This paper compares and contrasts two distinct techniques for measuring moral judgment: The Moral Judgment Interview and the Defining Issues Test. The theoretical foundations, accompanying advantages and limitations, as well as appropriate usage of these methodologies are discussed. Adaptation and use of the instruments for business ethics research is given special attention.

Academic research suggests that variances in contextual dynamics, and more specifically religion, may lead to disparate perceptions and practices of corporate social responsibility. Driven by the increased geopolitical and economic importance of the Middle East and identified gaps in knowledge, the study aims to examine if indeed there is a divergent form of CSR exercised in the region. The study identifies unique CSR dimensions and constructs presented through an empirical framework in order to outline the practice and perception of CSR (...) in a context with strong Islamic beliefs. The framework goes beyond the platform of mere Islamic philanthropy and is based on CSR-stakeholder management practices. Following an exploratory research design and collecting interview data from representatives of 63 organisations from Saudi Arabia, the United Arab Emirates and Oman, the study offers a snapshot of the CSR reality from the perspective of those living the phenomenon. The results suggest that the practice and perception of CSR in the examined context are largely grounded in the areas of social and altruistic actions but they cannot be examined in isolation from the religious context of CSR operation. This focus is mainly attributed to the dominant role of Islam in the examined sample, which leads to forms of non-structured or semi-structured approaches to CSR. Apart from the theoretical advancements offered to the CSR literature, the study also provides contributions for practitioners and policy makers. (shrink)

As negative information about companies becomes widely available and spreads rapidly through digital communications, understanding consumer reactions to these events and how human perceptions are shaped becomes increasingly important. In this paper, we investigate how consumers’ identification with brands and their love for them affect their support for the brand during extremely unethical situations. The results indicate that brand identification both decreases and increases consumers’ ethical judgment following extremely unethical events. Moreover, we find that consumers who are in a love (...) type relationship with the brand proactively shield the brand from other consumers by employing two brand supportive behaviors; sin of omission and brand defense. (shrink)

Previous studies show evidence of double standards in terms of individuals being more tolerant of questionable consumer practices than of similar business practices. However, whether these double standards are necessarily due to the fact that one party is a business company while the other is a consumer was not addressed. The results of our two experimental studies, conducted among 277 (Study 1) and 264 (Study 2) participants from a Western European country by means of an anonymous self-administered online survey, demonstrate (...) that the respondents were not only harsher in their judgments of unethical business (vs. consumer) behavior, but also harsher in their judgments of unethical behavior by prosperous (vs. non-prosperous) consumers and prosperous (vs. non-prosperous) business companies (Study 1). Further, they were also less tolerant of unethical behavior by consumers (vs. one’s best friend) and business companies with which they have a less than good (vs. a good) relationship (Study 2). These results indicate that double standards are due to differences in perceived wealth between subjects and in the individual’s relationship with subjects. These two factors imply that double standards are not strictly reserved to consumer–business relations, but might also be used in business–business and consumer–consumer relations. Further, these results indicate that companies need to be aware of the fact that good financial figures may backfire as they might lead individuals to be more critical of a company’s deceptive practices. Moreover, these findings point to the importance of businesses investing resources—and to keep investing resources—in developing a good relationship with stakeholders as these good relationships lead to stakeholders being less prone to make moral condemnations. (shrink)

This paper explores the relationship between declining organizations and unethical behavior. Data from a four month long management simulation indicate that declining organizations demonstrate a greater propensity for unethical activities than do more successful companies. The results indicate that: 1) organizations in decline are more likely to be involved in unethical activities; 2) the more severe the decline is, the more unethical the behavior is likely to be; and 3) it is organizational decline and not initial propensities toward unethical conduct (...) that explains the unethical behavior. The paper also discusses the implications of these findings and outlines future streams of research.Honesty is the best policy - When there is money in it. - Mark Twain. (shrink)

This study examines the effects of demographic characteristics on ethical perceptions. While earlier research has produced conflicting results regarding the predictive power of these variables, significant and definite insights were obtained with proper controls. The following predictors of ethical attitudes are examined: age, gender, marital status, education, dependent children status, region of the country and years in business, while controlling for job status. A nation-wide random sample of employees was used in obtaining a response rate of fifty-three percent (total n (...) of 423). Indices of aspects of business ethical attitudes were constructed using factor analysis. Linear multiple regression analysis indicated the significant predictive variables. Age was found to be a most-significant predictor. Older workers had stricter interpretations of ethical standards. Gender and region predicted attitudes about job-discrimination practices only, with women and persons from the Midwest most strongly opposed to the practice. All the other variables proved to be unreliable ethics predictors. (shrink)

Researchers in all management specialties have discussed and investigated the important role values play in personal and organizational phenomena. However, because research on values has been performed in a wide range of social science disciplines and at different levels of analysis, much of thiswork has been uninformed by other work and is neither well integrated nor systematized, resulting in a great deal of confusion concerning the topic. This article attempts to add order and clarity to this area of research by (...) proposing a framework of values research based on level of analysis and by cataloguing and reviewing the vast theoretical and empirical research in light of this framework. It concludes with a critique of the extant literature and recommendations for further research. (shrink)

Abstract:This article suggests that there are individual differences in how people define important moral values, and that these differences are made manifest in differences in the situations. It identifies five dimensions along which individuals can differ in their understandings of values: 1)value category(where the value lies in the hierarchy), 2)agent(how voluntary the action is and whether it is morally required of the agent), 3)object(how close the self is to the object of the action; whether the action offends God) 4)effect(whether the (...) effect of the action is to harm or help), and 5)intention(whether the intention of the action is to harm or help). It then addresses four important values entailing moral dimensions: respect for life, respect for property, honest communication, and respect for religion. The article suggests that empirical research, classroom teaching, and business practice can be strengthened by considering these dimensions. (shrink)

Emergence of purchasing as a strategic function has not only broadened the scope of purchasing, it has also changed the responsibilities of the purchasing managers by empowering them to spend large sums of money in procuring goods and services. However, this has also presented them with an array of ethical dilemmas involving questionable purchasing practices. This study proposes a framework to examine ethicality of decision making when faced with such dilemmas and presents the results of a survey conducted to assess (...) the ethical inclinations of purchasers operating in Singapore. The results give credence to the notion that ethicality of behavior is culture-specific and reconfirms the existence of ethical relativism. (shrink)

Previous studies show evidence of double standards in terms of individuals being more tolerant of questionable consumer practices than of similar business practices. However, whether these double standards are necessarily due to the fact that one party is a business company while the other is a consumer was not addressed. The results of our two experimental studies, conducted among 277 (Study 1) and 264 (Study 2) participants from a Western European country by means of an anonymous self-administered online survey, demonstrate (...) that the respondents were not only harsher in their judgments of unethical business (vs. consumer) behavior, but also harsher in their judgments of unethical behavior by prosperous (vs. non-prosperous) consumers and prosperous (vs. non-prosperous) business companies (Study 1). Further, they were also less tolerant of unethical behavior by consumers (vs. one's best friend) and business companies with which they have a less than good (vs. a good) relationship (Study 2). These results indicate that double standards are due to differences in perceived wealth between subjects and in the individual's relationship with subjects. These two factors imply that double standards are not strictly reserved to consumer-business relations, but might also be used in business-business and consumer-consumer relations. Further, these results indicate that companies need to be aware of the fact that good financial figures may backfire as they might lead individuals to be more critical of a company's deceptive practices. Moreover, these findings point to the importance of businesses investing resources-and to keep investing resources-in developing a good relationship with stakeholders as these good relationships lead to stakeholders being less prone to make moral condemnations. (shrink)

Socially responsible business and ethical behaviour of companies have been of interest to academia and practice for decades. But the focus has almost exclusively been on large corporations while small- and medium-sized enterprises (SME) have not received as much attention. Thus, this paper focuses on socially responsible business practices of SME entrepreneurs or owner–managers in Germany. Based on the assumption that decision-makers in SMEs are the central point where all business activities start, members of a German entrepreneurs association were approached (...) in the course of a qualitative and quantitative survey. They were asked to assess in what way their social responsibility is expressed in specific management practices towards selected stakeholder groups. These practices in turn were assumed to result in perceived positive reactions of the respective stakeholders and subsequently to positively influence the firm's financial performance, i.e. cost reductions and increase in profits. In the paper, a research model is presented that elaborates the relationship between an SME executive's social responsibility and the value creation of a firm, i.e. whether (personal) values create (economic) value. It was found that socially responsible management practices towards employees, customers and to a lesser extent society have a positive impact on the firm and its performance. As such, values can create additional value. (shrink)

This article represents an attempt to organize, critique, and extend research findings on gender differences in business ethics. The focus is on two dependent variables—ethical judgment and behavioral intent. Differences in findings between student and professional groups are noted and theoretical implications are discussed. The new research provided for this article contains two benchmark studies undertaken with identical stimuli and identical measures. These studies were followed by two additional studies, using the same measures but different stimuli, as a partial replication (...) and extension of the first two. Findings suggest that little difference exists between the genders on behavioral intent for professional groups and only minimal differences for the ethical judgment measures. Student results, however, produced more substantial differences for behavioral intention. (shrink)

This article offers a first step toward a multi-level theory linking social movements to corporate social initiatives. In particular, building on the premise that social movements reflect ideologies that direct behavior inside and outside organizations, this essay identifies mechanisms by which social movements induce firms to engage with social issues. First, social movements are able to influence the expectations that key stakeholders have about firms’ social responsibility, making corporate social initiatives more attractive. Second, through conflict or collaboration, they shape firms’ (...) reputation and legitimacy. And third, social movements’ ideologies manifest inside the corporations by triggering organizational members’ values and affecting managerial cognition. The essay contributes to the literatures on social movements and CSR, extends the understanding of how ideologies are manifested in movement-business interactions, and generates rich opportunities for future research. (shrink)

. This descriptive study discusses cognitive mapping as a technique for analyzing ethical sensitivity, examines whether the method allows comparisons between people, compares the ethical sensitivity levels of participants from three organizations, examines which indicators of ethical sensitivity are most salient to members of specific organizations, and examines whether education level or organizational membership is the best predictor of an individual’s ethical sensitivity level. Subjects from three organizations read background information, listened to two audiotaped scenarios containing multiple ethical issues related (...) to organizational communication, responded to focused interview questions, and completed questionnaires. The interviews were taped, transcribed, and analyzed using cognitive mapping techniques. Significant differences in levels of ethical sensitivity were found between the members of the three organizations. However, a hierarchical regression model demonstrated that the difference was likely due to the differences in level of education in each organization. Organizational membership seemed to affect the particular aspects of the scenarios that participants noticed. (shrink)

Drawing on existing theory in the fields of business ethics, entrepreneurship, and psychology, this research provides an initial empirical exploration of whether entrepreneurs use cognitive reasoning processes which reflect a higher level of moral development than the level of moral development that has been empirically observed either in middle-level managers or in the general adult population. The Defining Issues Test was used to measure the level of moral reasoning skill of the entrepreneurs in this study. Although the study was limited (...) by a small sample size and the inherent difficulty of making accurate comparisons across other empirical studies, the results of this study suggest that entrepreneurs may exhibit moral reasoning skills at a slightly higher level than middle-level managers or the general adult population. (shrink)

An empirical investigation was conducted to determine whether management information systems (MIS) majors, on average, exhibit ethical decision-making processes that differ from students in other functional business areas. The research also examined whether the existence of a computer-based information system in an ethical dilemma influences ethical desision-making processes. Although student subjects were used, the research instrument has been highly correlated with educational levels attained by adult subjects in similar studies. Thus, we feel that our results have a high likelihood of (...) generalization to the MIS professional community. The results indicate that MIS majors exhibit more socially-oriented ethical decision-making processes than non-MIS majors measured by the Defining Issues Test. The results also indicate that the existence of a computer-based information system in an ethical dilemma may influence ethical decision-making processes. The study makes no statement regarding MIS majors making more (or less) ethical decisions. The business ethics literature is reviewed, details of the study are presented, implications for management are considered, and directions for future research are suggested. (shrink)

Socially responsible business and ethical behaviour of companies have been of interest to academia and practice for decades. But the focus has almost exclusively been on large corporations while small- and medium-sized enterprises (SME) have not received as much attention. Thus, this paper focuses on socially responsible business practices of SME entrepreneurs or owner–managers in Germany. Based on the assumption that decision-makers in SMEs are the central point where all business activities start, members of a German entrepreneurs association were approached (...) in the course of a qualitative and quantitative survey. They were asked to assess in what way their social responsibility is expressed in specific management practices towards selected stakeholder groups. These practices in turn were assumed to result in perceived positive reactions of the respective stakeholders and subsequently to positively influence the firm's financial performance, i.e. cost reductions and increase in profits. In the paper, a research model is presented that elaborates the relationship between an SME executive's social responsibility and the value creation of a firm, i.e. whether (personal) values create (economic) value. It was found that socially responsible management practices towards employees, customers and to a lesser extent society have a positive impact on the firm and its performance. As such, values can create additional value. (shrink)

The authors examine empirically the influence of personal and organizational values on marketing professionals'' ethical behavior. The results indicate that personal and organizational values underlie differences in marketing professionals'' ethical behavior, albeit small terms of the proportion of explained variance. The results also suggest the relationship between organizational values and ethical behavior to be significant. However, the same is not the case for the relationship between personal values and ethical behavior.

While there is a significant amount of research investigating managerial ethical judgments, a limited amount examines consumer judgments of unethical corporate behavior and its impact on the marketplace. This study examines how consumers' commitment to a company impacts not only their ethical judgment of corporate behavior but also the outcomes of that judgment. The authors test hypotheses with data from 334 consumers and find that consumers' level of commitment attenuates the level of perceived fairness. More specifically, highly committed consumers may (...) forgive companies for behaviors when perceived harm is low, but become progressively dissatisfied as the level of perceived harm increases. Results of the study point to the importance of considering ethical behavior from a consumer perspective. If corporate actions are perceived as unethical, the company stands to lose favor with their most committed customers. Considering that more time, effort and investment is required to gain a new customer as to retain an old, this study shows that engaging in behavior perceived as unethical by consumers risks alienating the most committed customers. (shrink)

A national survey of CEOs of manufacturing firms was conducted to identify factors explaining CEOs' intentions to engage in two questionable business practices: soliciting a competitor's technological secrets and making payments to foreign government officials to secure business. Drawing on research in corporate misconduct, ethical decision making, and strategic management, the authors analyzed ethical intentions by looking at hostile environmental conditions, opportunity-rich situations, and/or personal characteristics. Based on responses to scenarios, their findings suggest that the ethical intentions of CEOs may (...) be more affected by the decision maker's predisposition than by environmental pressures or organizational/situational characteristics. (shrink)

Extensive interest in business ethics has developed accompanied by an increase in empirical research on the determinants of unethical conduct. In setting forth the theory of reasoned action, Fishbein and Ajzen (1975) maintained that research attention on such variables as personality traits and demographic characteristics is misplaced and, instead, researchers should focus on behavioral intentions and the beliefs that shape those intentions. This study summarizes business ethics research which tests the theory of reasoned action and suggests directions for further research.

The moral ideology of banking and insurance employees in Spain was examined along with supervisor role modeling and ethics-related policies and procedures for their association with ethical behavioral intent. In addition to main effects, we found evidence supporting that the person–situation interactionist perspective in supervisor role modeling had a stronger positive relationship with ethical intention among employees with relativist moral ideology. Also as hypothesized, formal ethical polices and procedures were positively related to ethical intention among those with universal beliefs, but (...) the relationship was much weaker among relativists. Thus, firms wishing to optimally promote ethical attitudes and behavior must tailor their organization-based initiatives to the individual characteristics of their employees. (shrink)

We report the results of a study that examines the association between gender and individuals’ intentions to report fraudulent financial reporting using non-anonymous and anonymous reporting channels. In our experimental study, we examine whether reporting intentions in response to discovering a fraudulent financial reporting act are associated with the participants’ gender, the perpetrator’s gender, and/or the interaction between the participants’ and perpetrator’s gender. We find that female participants’ reporting intentions for an anonymous channel are higher than for male participants; the (...) fraud perpetrator’s gender and the interaction with participants’ gender were not significantly associated with anonymous channel reporting intentions. Neither of the two factors nor the interaction between the two factors was associated with reporting intentions to a non- anonymous reporting channel. Results from an additional analysis indicate that male and female participants differ in the extent to which they judge the reduction in personal costs of an anonymous reporting channel compared to a non-anonymous reporting channel and that the reduction in personal costs mediates the relationship between participant gender and anonymous reporting intentions. (shrink)

Managers often face situations that challenge their ability to reason morally. Avariety of factors, including the issue itself and personal and organizational influences, may affect their responses. Using Kohlberg’s moral development theory and the Adapted Moral Judgment Interviewtechnique, we examine the influences of context, age, gender, type of work, and industry membership on 308 managers’ moral reasoning. No significant differences are found when considering age or gender. Differences are discovered when assessing the context of the dilemmas, managers’ type of work (...) (managerial vs. technical), and industry membership (manufacturing vs. service). Implications from our findings are discussed. (shrink)

Business moral values are defined as the personal moral values held by individuals who are engaged in business interactions. Direct supervisors may play an important role in shaping the business moral values of their subordinates. Using 264 supervisor— subordinate dyadic data from Taiwanese organizations, the study investigated the relationships among supervisor business moral values, subordinate business moral values, subordinate organizational commitment, job performance, and attendance. The results indicated that supervisor business moral values were positively associated with subordinate business moral values, (...) and that the latter mediated the relationship between the former and subordinate outcomes. Implications for business moral values research are discussed. (shrink)

This study explores the direct and interactive effects of individual differences in interpersonal trust and negotiation style on ethical decision-making processes across commonly faced negotiation situations. Individual differences influence basic ideas about legitimate negotiating behaviors, affect behavioral intentions directly, and interact with the favorability of negotiating situations, resulting in direct, indirect, and interactive effects on ethical decision-making processes. Using a sample of 298 participants in executive education workshops, the study analyzes the relationship between interpersonal trust, competitiveness, moral judgment, and behavioral (...) intentions in different negotiating conditions through a series of structural equation models and regression analyses. Our results suggest that individual difference variables exert a significant influence not only on how managers assess the morality of ethically ambiguous negotiation practices but also directly on their behavioral intentions, and that this effect changed across specific negotiation situations. We discuss these results in terms of their usefulness in explaining ethical decision-making processes in negotiations. (shrink)

What is the nature of the decision-related personal values of corporate management? Managers' attitudes and behaviors are built upon their personal value systems (PVS). Knowledge about the structure of management's PVS assists in understanding the attributes of corporate decision making. Utilizing a survey instrument developed and used by England (1967, 1975), this article updates this research into corporate managers' personal value systems. England's PVS consists of sixty-six pre-tested values clustered into five groups. As one could expect with personal values, statistical (...) tests reveal that even with dramatic changes in the business environment the overall personal values structure has not changed over the intervening three decades. The results also reveal that corporate managers retain their pragmatic value orientation as discussed by England. (shrink)

A study of 513 executives researched decisions involving ethics, relationships and results. Analyzing personal values, organization role and level, career stage, gender and sex role with decisions in ten scenarios produced conclusions about both the role of gender, subjective values, and the other study variables and about situational relativity, gender stereotypes, career stages, and future research opportunities.

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)