The decline of empirical research on ethical decision-making based on ethical theories might imply a tacit consensus has been reached. However, the exclusion of virtue ethics, one of the three main normative ethical theories, from this stream of literature calls this potential consensus into question. This article investigates the role of all three normative ethical theories—deontology, utilitarianism and virtue ethics—in ethical decision-making of corporate executives. It uses virtue ethics as a dependent variable thus studying the interconnectivity of all three normative (...) ethical theories in specific circumstances. We find that managers use different ethical theories in different circumstances (business vs. private life, formal vs informal ethical leadership, etc.). A predictive model of ethical decision-making, however, cannot be established. We also find that only a limited number of variables influence the choice of ethical theory, which leans business ethics towards postmodern management paradigm. We suggest that moral pragmatism could provide the answer to ethical decision-making. (shrink)

Abstract:This study explores a phenomenon that has been shown to adversely affect managers’ decisions—competitive irrationality. Managers are irrationally competitive in their decisions when they focus on damaging the profits of competitors, rather than improving their own profit performance. Studies by Armstrong and Collopy (1996) and Griffith and Rust (1997) suggest that the phenomenon is common but not universal. We examine the question of why some individuals exhibit competitive irrationality when making decisions, while others do not by focusing on four aspects (...) of moral philosophy—deontological orientation, cognitive moral development, idealism, and relativism. Results suggest that individuals high in deontological orientation, high in cognitive moral development, high in idealism, and low in relativism will be less competitively irrational than those who are not. (shrink)

This article presents two separate but closely related studies. We used a first sample to investigate the relationships among individuals’ reports of their income and their subjective well-being, and their approval of unethical behavior in 27 countries and a second sample to investigate the relationship between corruption in 55 countries and their populace’s aggregated feelings of subjective well-being (happiness). Analysis of data from 27,762 working professionals showed that, although reported feelings of subjective well-being were negatively related to their approval of (...) unethical behaviors, income was positively related to their approval of unethical behaviors. In addition, the effects for feelings of subjective well-being were particularly strong for high-income people. Analyses also showed that, after controlling for economic development and other country-level factors, corruption was negatively related to a country’s feelings of happiness. These findings suggest that feelings of subjective well-being may lead to more ethical, less corrupt behavior and that the tolerance of unethical, corrupt behavior may lead to less collective happiness and subjective well-being. (shrink)

The research presented in this paper focuses on business ethical values inChina, a country in which the process of institutional transformation has left cultural values in a state of flux. A survey was conducted in China and the U.S. by using five business scenarios. Survey results show similarities between the Chinese and American decision choices for three out of five scenarios. However, the results reveal significant differences in rationales, even forsimilar decisions. The implications of similarities and differences between the U.S. (...) and Chinese samples are discussed. (shrink)

Many organizations offer their employees the opportunity to voice their opinions about work-related issues because of the positive consequences associated with offering such an opportunity. However, little attention has been given to the possibility that offering voice may have negative effects as well. We propose that negative consequences are particularly likely to occur when employees perceive the opportunity to voice opinions to be “pseudo voice”—voice opportunity given by managers who do not have the intention to actually consider employee input (i.e., (...) managerial disregard). The effects of this kind of deception were examined by means of a survey among employees ( N = 137) and managers ( N = 14) of a Dutch healthcare organization. We hypothesized and found that perceived pseudo voice led to reduced voice behavior and, as a result, increased intragroup conflict. These results imply that while offering voice opportunity is mostly seen as an effective management strategy, negative effects are likely to occur when a manager is perceived to try to deceive employees by pretending to be interested in their points of view. (shrink)

Based on organizational justice theories and cognitive dissonance theories, the authors hypothesized that: (a) perceived top management support for ethical behaviors will be positively correlated with all facets of job satisfaction (supervision, pay, promotion, work, co-workers, and overall); and (b) the correlation will be highest with the facet of supervision. Empirical results (n = 77 middle level managers from two organizations in South India) supported only the second hypothesis. Implications for managing a global workforce are discussed.

A survey of middle level managers in India (n=150) showed that when respondents perceived that successful managers in their organization behaved unethically their levels of job satisfaction were reduced. Reduction in satisfaction with the facet of supervision was the most pronounced (than with pay or promotion or co-worker or work). Results are interpreted within the framework of cognitive dissonance theory. Implications for ethics training programs (behavioral and cognitive) as well as international management are discussed.

The process of making ethical judgments is much more complex than studying only personal moral philosophy variables (idealism and relativism). The renewed interest in epistemic values (virtue and vice epistemology) in contemporary philosophy has shown significant relevance to understanding ethical behavior and such values may be better predictors than studying only idealism and relativism. The purpose of this exploratory study is to examine employees’ personal moral philosophies, optimism, epistemic values, and various organizational unethical practices as compared to their managers. We (...) used Rawwas’ items of epistemology in this study. The sample consisted of 262 managers and employees. The results revealed that managers were more sensitive to organizational unethical practices, scored less on epistemic vices, less on absolutism, and more on exceptionalism than employees were. However, there was no difference between managers and employees related to moderate and minor unethical organizational practices, situationism, subjectivism, optimism, and epistemic virtues. We provided discussion of the results and implications. (shrink)

The popular press and academic research has focused primarily on the characteristics of corporate leaders. Subordinates have been studied much less frequently than leaders and yet they play a pivotal role in destructive leadership processes. An area holding significant potential to bring clarity to subordinates’ ability to withstand (or succumb) to pressures from superiors is dispositional affect. In our exploratory study, we examine how specific affective states influence subordinates’ unethical behavior. We performed an experiment with 63 mid-level managers having significant (...) work experience. Participants were given ethical scenarios and asked to assess their intentions to comply with their superiors’ requests to engage in unethical conduct. The participants also completed the positive affect negative affect schedule (PANAS) which provides measures of affective states. Our results provide support for theory-based predictions. The findings of our study make important contributions and have implications to both practice and theory. First, we identify certain affective states that encourage subordinates to adopt the behavior of a conformer or colluder and thus be susceptible to their superiors’ unethical directives. Second, our results suggest the need for training programs to assist employees in managing affect in the work place and consideration of organizational changes that provide a culture of empowerment of its employees. Third, unlike a large majority of prior research, we measured naturally occurring affective states rather than providing a contrived (and potentially exaggerated) triggering event to elicit affective states. Fourth, we examined specific affective states rather than examining only general positive and negative valence categories. (shrink)

This article summarizes the multitude of empirical studies that test ethical decision making in business and suggests additional research necessary to further theory in this area. The studies are categorized and related to current theoretical ethical decision making models. The studies are related to awareness, individual and organizational factors, intent, and the role of moral intensity in ethical decision making. Summary tables provide a quick reference for the sample, findings, and publication outlet. This review provides insights for understanding organizational ethical (...) decision constructs, where ethical decision making theory currently stands, and provides insights for future empirical work on organizational ethical decision making. (shrink)

This study examines the relationships between a company''s emphasis on discretionary social responsibility, environment, and firm performance. It tests the proposition that environmental munificence and dynamism moderate the relationship between discretionary social responsibility and financial performance. Social responsibility was measured with a three-item scale in a sample of 62 firms using a questionnaire. Environmental munificence and dynamism were measured using archival sources as was financial performance (return on assets and return on sales). The results of moderated regression analyses and subgroup (...) analyses found a significant moderating effect of environment on the social responsibility-firm performance relationship. Discretionary social responsibility contributes to firm performance in environments that are dynamic and munificent. (shrink)

Many organizations offer their employees the opportunity to voice their opinions about work-related issues because of the positive consequences associated with offering such an opportunity. However, little attention has been given to the possibility that offering voice may have negative effects as well. We propose that negative consequences are particularly likely to occur when employees perceive the opportunity to voice opinions to be “pseudo voice”—voice opportunity given by managers who do not have the intention to actually consider employee input (i.e., (...) managerial disregard). The effects of this kind of deception were examined by means of a survey among employees (N = 137) and managers (N = 14) of a Dutch healthcare organization. We hypothesized and found that perceived pseudo voice led to reduced voice behavior and, as a result, increased intragroup conflict. These results imply that while offering voice opportunity is mostly seen as an effective management strategy, negative effects are likely to occur when a manager is perceived to try to deceive employees by pretending to be interested in their points of view. (shrink)

In 1999, the Journal of Business Ethics published its 1 500th article. This article commemorates the journal's quest "to improve the human condition" (Michalos, 1988, p. 1) with a summary and assessment of the first eighteen volumes. The first part provides an overview of JBE, highlighting the journal's growth, types of methodologies published, and the breadth of the field. The second part provides a detailed account of the quantitative research findings. Major research topics include (1) prevalence of ethical behavior, (2) (...) ethical sensitivities, (3) ethics codes and programs, (4) corporate social performance and policies, (5) human resource practices and policies, and (6) professions – accounting, marketing/sales, and finance/strategy. Much remains to be done. (shrink)

As a result of the public demand for higher ethical standards, business schools are increasingly taking ethical matters seriously. But their effort has concentrated on teaching business ethics and on students' ethical behavior. Business faculty, in contrast, has attracted much less attention. This paper explores the context and the implications of an alleged case of plagiarism in a master's dissertation submitted to a university lacking both an ethical code of conduct and a formalized procedure to deal with academic misconduct. The (...) events evolved into a bitter political process in which the more ethically aware members of faculty challenged efforts to cover-up. Here the focus is on the motives and behavior of faculty members involved in this case rather than the alleged plagiarist's. The role played by the main actors involved in the process in examined using the theory of moral development and the organizational politic perspective. The paper discusses the mechanisms available to raise ethical awareness and prevent academic misconduct, and the limitations of self-regulation and self-monitoring that prevails in the university system. It also examines the impact of ethics instruction and faculty ethical standards on students' behavior and concludes that ethics instruction can only be effective when the principles taught are in line with daily actions of their instructors. (shrink)

Why do marketing managers in the transitional economies of Eastern Europe and China often engage in competitively irrational behavior, choosing pricing strategies that damage competitors’ profits, rather than choosing pricing strategies that improve their firm’s profits? We propose one possible reason, the moral vacuum created by the collapse of communist ideology. We hypothesize and find that managers who experienced formal communist moral ideological indoctrination are less likely to be competitively irrational than the post-communist managers who did not. Implications are discussed.