The goal of this study was to construct a valid new instrument to measure the effect of moral intensity on managers' propensity to manage earnings. More specifically, this study is a pilot study of the impact of moral intensity on financial accountants' propensity to manage earnings. The instrument, once validated, will be used in a full-study of managers in the hotel industry. Different ethical scenarios were presented to respondents in the survey; each ethical scenario was designed in both high or (...) low moral intensity form, to reflect the importance of the moral dilemma at hand. The results were analysed by factor analysis. The findings of this study have positively validated the instrument, with three of the five moral intensity components identified as having appropriate eigenvalues. This indicates that they have a significant influence in the study. The first factor captures the social consensus dimension and one scenario of the proximity dimension. The second factor indicates an interaction between the temporal immediacy and the magnitude of consequences dimension. The third dimension is probability of effect and one scenario of the proximity dimension. In addition, t-tests indicated that the manipulation of high and low conditions within each scenario were also successful. One limitation of the study might be the use of undergraduate accounting students as manager proxies, although prior evidence suggests use of accounting students as proxies is a valid approach in this type of study. This is a highly novel project as most prior studies have focussed on moral intensity and the general ethical decision-making process. (shrink)

This research project seeks to discover whether certain characteristics of a moral issue facilitate individuals’ abilities to detect violators of a conditional rule. In business, conditional rules are often framed in terms of a social contract between employer and employee. Of significant concern to business ethicists is the fact that these social contracts are frequently breached. Some researchers in the field of evolutionary psychology argue that there is a biological basis to social contract formation and dissolution in business. However, although (...) it is inescapable that biological forces shaped a fixed neural structure that guides and limits humans’ abilities, we argue that characteristics of the situation in which the person finds himself or herself moderate the activation of these neural circuits in ordinary business social contract situations. Specifically, the moral intensity associated with the social contract conditional rule is likely to influence peoples’ abilities to detect violators of the rule. This study utilizes adapted versions of the Wason selection task and manipulates the issue-contingent moral intensity characteristics of magnitude of consequences, proximity, and social consensus to assess if moral intensity facilitates detection of rule violators. Results from this empirical study indicate no relationship between moral intensity characteristics and issue recognition but do provide insights into the evolutionary psychology approach. (shrink)

Across two studies the hypotheses were tested that stressful situations affect both leadership ethical acting and leaders' recognition of ethical dilemmas. In the studies, decision makers recruited from 3 sites of a Swedish multinational civil engineering company provided personal data on stressful situations, made ethical decisions, and answered to stress-outcome questions. Stressful situations were observed to have a greater impact on ethical acting than on the recognition of ethical dilemmas. This was particularly true for situations involving punishment and lack of (...) rewards. The results are important for the Corporate Social Responsibility (CSR) of an organization, especially with regard to the analysis of the Stressors influencing managerial work and its implications for ethical behavior. (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.

Recent corporate scandals across various industries have led to an increased focus on research in business ethics, particularly on understanding ethical decision-making. This increased interest is due largely to managers' desire to reduce the incidence of unwanted behaviors in the workplace. This article examines one major moderator of the ethical decision-making process - moral intensity. In particular, we explore the potential influence of a particular cognitive heuristic - the availability heuristic -on perceptions of moral intensity. It is our contention that (...) moral intensity is a perceptual construct, and that individuals' use of the availability heuristic will influence perceptions of moral intensity which, in turn, will affect how moral issues are viewed and ultimately resolved. In this article, we present propositions concerning possible relationships between the availabilities of various phenomena and the components that moral intensity comprises, and report on two studies examining the effects of availabilities on two of these components: magnitude of consequences and social consensus. Our findings indicated that the availability of consequences associated with an act was positively related to perceptions of the magnitude of consequences of that act. We also found that the availability of others who believe that a particular act is morally acceptable is positively related to perceptions of social consensus that that act is morally acceptable. We posit that our results suggest the possibility that perceptions of moral intensity can be actively influenced to reduce unethical behavior in organizations. (shrink)

Recent work in the fields of ethics and entrepreneurship has raised the possibility that entrepreneurs may differ from other individuals in the moral issues they face, in their moral judgements and behaviors concerning those issues, and even in their level of cognitive moral development. While this work has been exploratory and its conclusions tentative, the findings raise two interesting questions: do entrepreneurs actually differ from non-entrepreneurs in their ethical orientations and, if so, why? We propose a model of ethical decision (...) making for small business entrepreneurs. We suggest some ways in which the ethical framework of entrepreneurs may differ systematically from that of other business people and propose some areas for future research. (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)

ABSTRACT This study investigated the influence of different emotions and social consensus on moral decision-making using a mixed 2 × 2 experimental design. The results showed that the main effect of social consensus was significant: the moral decision-making level of participants under the condition of low social consensus was lower than that of participants under the condition of high social consensus, while no main effect of emotion emerged. Second, the results showed that emotion and social consensus have interactive effects on (...) moral decision-making. When social consensus was high, there was no significant difference in moral decision-making between individuals with positive emotions and individuals with negative emotions. When social consensus was low, individuals with negative emotions were more likely to make immoral decisions than individuals with positive emotions. These results reveal that emotion and social consensus work together in affecting moral decision-making. (shrink)

The purpose of this work is to elaborate an empirically grounded mathematical model of the magnitude of consequences component of "moral intensity", 366, 1991) that can be used to evaluate different ethical situations. The model is built using the analytical hierarchy process and empirical data from the legal profession. One contribution of our work is that it illustrates how AHP can be applied in the field of ethics. Following a review of the literature, we discuss the development of the model. (...) We then illustrate how the model can be used to rank-order three well-known ethical reasoning cases in terms of the magnitude of consequences. The work concludes with implications for theory, practice, and future research. Specifically we discuss how this work extends the previous work by Collins regarding the nature harm variable. We also discuss the contribution this work makes in the development of ethical scenarios used to test hypotheses in the field of business ethics. Finally, we discuss how the model can be used for after-action review, contribute to organizational learning, train employees in ethical reasoning, and aid in the design and development of decision support systems that support ethical reasoning. (shrink)

The relative importance of the Jones’ [Jones, T. M.: 1991, Academy of Management Review 16(2), 366–395] six components of moral intensity was measured using a conjoint experimental design. The most important components influencing ethical perceptions were: probability of effect, magnitude of consequences, and temporal immediacy. Contrary to previous research, overall social consensus was not an important factor. However, consumers exhibit distinctly different patterns in ethical evaluation, and for approximately 15% of respondents social consensus was the most important dimension.

Since there have been many recent occurrences of alleged wrongdoing by business persons and other professionals, it seems additional ethics research is needed to obtain knowledge that will impact real-world behavior. An empirical study assessed business students' impressions of hypothetical wrongdoers and whistleblowers. To some extent, impressions of an unethical executive and a whistleblower were influenced by the same variables and in opposite directions. Female respondents judged the unethical executive less favorably and the whistleblower more favorably than did males. The (...) executive was rated less favorably and the whistleblower more favorably when the executive sought a small gain than when the goal was a large gain or prevention of a loss of either magnitude. Some manipulations, however, impacted impressions of one actor, but not the other. Perhaps ethics training can make students aware that issue framing and moral intensity components may bias decisions. (shrink)

This article synthesizes research presented in several models of unethical behavior to develop propositions about the factors that facilitate and mitigate deception in online business communications. The work expands the social network perspective to incorporate the medium of communication as a significant influence on deception. We go beyond existing models by developing seven propositions that identify how social network and issue moral intensity characteristics influence the probability of deception in online business communication in comparison to traditional communication channels. Remedies to (...) detect and discourage deception in online business networks are also offered, as well as limitations and future research directions. (shrink)

Theories of ethical decision making assume it is a process that is special, or different in some regard, from typical individual decision making. Empirical results of the most widely known theories in the field of business ethics contain numerous inconsistencies and contradictions. In an attempt to assess why we continue to lack understanding of how individuals make ethical decisions at work, an inductive study of ethical decision making was conducted. The results of this preliminary study suggest that ethical decision making (...) might not be meaningfully “special” or different from other decision making processes. The implications of this research are potentially significant in that they challenge the fundamental assumption of existing ethical decision making research. This research could serve as an impetus for further examination of whether ethical decision making is meaningfully different from other decision making processes. Such studies could create new directions for the field of business ethics. (shrink)

This study used structural equation modeling to verify the performance of the ethical decision-making models developed by Jones and by Kelley and Elm. A comparison showed that the Kelley and Elm decision model yielded the optimal degree of fit. The investigations conducted in this study indicated that moral intensities are not an objective, existing concept but rather the product of subjective perception influenced by organizational factors. In addition to directly influencing ethical decisions, organizational factors indirectly influence ethical decisions through moral (...) intensities. (shrink)

The authors apply the issue life cycle model to analyze the 1999 through 2001 dispute between the Securities and Exchange Commission and the accounting profession concerning auditor independence. The analysis also brings additional insights that extend understanding of the issue life cycle and issues development. This analysis highlights the roles of a trigger event, the shift of an issue from a technical concern to a public debate, and likely recurrence. The reappearance of the auditor independence issue in 2002 with accounting (...) scandals is consistent with the article’s findings and highlights the use of the issue life cycle model and issue evolution. (shrink)

Piracy is the greatest threat facing the music industry worldwide today. This study developed and empirically tested a model examining the antecedents of consumer attitude and behavioral intention toward music piracy behavior. Two types of music piracy behavior, unauthorized duplication/download and pirated music product purchasing, were examined. Based on a field survey in Taiwan, the results showed that attributive satisfaction, perceived prosecution risk, magnitude of consequence, and social consensus are very important in influencing customers attitude and behavioral intention toward two (...) types of music piracy behavior. In addition, singer/band idolization can affect the attitude and behavioral intention in the case of pirated music product purchasing. Perceived proximity was found to affect the attitude and behavioral intention in the case of pirated music product purchasing. However, it only influenced behavioral intention in the case of unauthorized duplication/download. (shrink)

This research on the ethics of meaningful work examined how types of job-related harm and their magnitude of consequences influenced components of ethical decision-making. The research also investigated the moderating effects of individual differences on the relation between the MOC and the ethical decision-making elements for each type of harm. Using a sample of 185 Chinese professionals, a between-subjects, fully crossed experimental scenario design revealed that physical and economic job-related harm were recognized as moral issues to a greater extent than (...) cognitive or emotional harm. Second, physical job-related harm stimulated a higher level of moral evaluations than economic and cognitive harm. Third, individuals intended to act ethically when MOC was high versus low. Finally, experience with layoffs and IMO helped explain the relations between MOC and moral evaluations for economic and cognitive job-related harm, respectively. Implications for research and management are discussed. (shrink)

Although work tasks often address substantive social issues, the effects of issue characteristics on task motivation are little understood. This study explores this topic by examining how the moral characteristics of an issue (moral intensity) affect motivation in tasks intended to address the issue (task motivation). Adopting the lens of work design theory, I hypothesize that moral intensity increases task motivation through the mediation of perceived task impacts on the community (perceived community impacts), and that this effect will occur after (...) controlling for the effects of perceived task impact on the worker and their organization. In two studies in the context of volunteering I find that, rather than acting in parallel with other task impacts, the effect of moral intensity through perceived community impacts is fully mediated by perceived organization and self impacts in a three-stage mediation. These findings demonstrate the potential relevance of issue characteristics such as moral intensity to work design theory and shed new light on the psychological mechanisms through which perceived prosocial impacts promote task motivation. I discuss implications for research and practice. (shrink)

The study of moral decision-making presents to us two approaches for understanding such choices. The cognitive and the neurocognitive approaches postulate that reason and reasoning determines moral judgments. On the other hand, the intuitionist approaches postulate that automated intuitions mostly dominate moral judgments. There is a growing concern that neither of these approaches by itself captures all the key aspects of moral judgments. This paper draws on models from neurocognitive research and social-intuitionist research areas to propose an integrative cognitive–intuitive model (...) of moral decision-making. The model suggests that moral decision-making includes five interdependent, yet functionally distinct steps, issue framing, pre-processing, moral judgment, moral reflection, and moral intent. The model proposes a cognitive–intuitive view of moral judgment and it describes how emotion regulation, perceived moral intensity, and perceived ethical climate constructs impact the formation of moral intent. The paper discusses the theories that link emotions to moral judgment and implications of the model for future research and its implication for managers. (shrink)

Although the pedagogy literature indicates significant relationships between cheating intentions and both personal and situational factors, no published research has examined the joint effect of personal moral philosophy and perceived moral intensity components on students’ cheating intentions. Hence, a structural equation model that relates magnitude of consequences, relativism, and idealism to willingness to cheat, is developed and tested. Using data from undergraduate business students, the empirical results provide insight into these relationships and evidence of mediation for magnitude of consequences on (...) idealism and students’ cheating intentions. Implications for educators are offered. (shrink)

Managers often encounter situations that require them to make decisions with ethical implications that affect the organization as well as the managers themselves. The issue we address in this study concerns whether the ethical consistency of managerial decisions is situation dependent. That is, are the decisions managers make ethically consistent when they are faced with different ethical situations? We hypothesize that managerial decisions will vary depending on the type of ethical situation they encounter. We also hypothesize that gender plays a (...) role in determining the ethical consistency of managerial decisions. Results of statistical analyses support our hypotheses. (shrink)