We seek to understand how third-party observers respond to allegations of sexual transgressions, whether their responses vary and if so why, how they determine perpetrator sanctions, who is more forgiving of them, and what is the psychological mechanism underlying this preference. We draw on one dimension of Hofstede's theory of cultural orientations—power distance belief, and one dimension of Haidt's work on moral reasoning—moral decoupling. Results from three studies on recent real-life cases—those pertaining to Harvey Weinstein, Brett Kavanaugh, and Peter Martins—reveal (...) interesting, consistent, and dramatic findings pertaining to these research questions. Specifically, compared to observers who endorse a low power distance belief, high PDB observers selectively suspend judgments of culpability and express higher evaluations of the alleged perpetrators, are significantly more forgiving of them, convey a lower preference for naming and shaming them, and consider the alleged transgressions as less serious. These outcomes are predicated on the psychological mechanism of moral decoupling. Both high and low PDB respondents decouple the perpetrators’ competence and morality. However, high PDB observers gauge the actions of the perpetrators by emphasizing competence, while low PDB observers gauge their actions by emphasizing morality. (shrink)

This study explores the role of an informal institution—engaged Buddhism—in leadership responses to issues of bribery at the firm level in the context of Vietnam. In-depth interviews were carried out in Vietnam with 26 organizational leaders who were Buddhist practitioners. The leaders expressed a Buddhist-enacted utilitarian approach based on three context-associated mechanisms: karmic consequences, community and social well-being, and total detachment. These mechanisms manifest in leadership approaches based on the Middle Way, Skillful Means, and Emptiness. They are involved in forming (...) leaders’ perceptions about bribery issues and their enacting of contextual approaches to balance organizational means and ends in tackling ethical issues associated with bribery. The study also sheds light on moral struggles involved in the process of shaping and enacting a Buddhist-enacted utilitarian approach. (shrink)

In a number of papers, Liu Qingping has critiqued Confucianism’s commitment to “consanguineous affection” or filial values, claiming it to be excessive and indefensible. Many have taken issue with his textual readings and interpretive claims, but these responses do little to undermine the force of his central claim that filial values cause widespread corruption in Chinese society. This is not an interpretive claim but an empirical one. If true, it merits serious consideration. But is it true? How can we know? (...) I survey the empirical evidence and argue that there is no stable or direct relationship between filial values and corruption. Instead, other cultural dimensions are more robust predictors of corruption. As it happens, China ranks very high in these other cultural dimensions. I conclude that if the empirical research is correct then Liu’s claims lack support. (shrink)

This study examines the varying roles of power, status, and national culture in unethical decision-making. Most research on unethical behavior in organizations is grounded in Western societies; empirical comparative studies of the antecedents of unethical behavior across nations are rare. The authors conduct this comparative study using scenario studies with four conditions in both China and Canada. The results demonstrate that power is positively related to unethical decision-making in both countries. Status has a positive effect on unethical decision-making and facilitates (...) the unethical decisions of Canadian participants who have high power but not Chinese participants who have high power. To explicate participants’ unethical decision-making rationales, the authors ask participants to justify their unethical decisions; the results reveal that Chinese participants are more likely to cite position differences, whereas Canadian participants are more likely to cite work effort and personal abilities. These findings expand theoretical research on the relationship between social hierarchy and unethical decision-making and provide practical insights on unethical behavior in organizations. (shrink)

Drawing upon rational choice and investor attention theories, we examine how accusations of corporate bribery and subsequent investigations shape market reactions. Using event study methodology to measure loss in firm value for public firms facing bribery investigations from 1978 to 2010, we found that total market penalties amounted to $60.61 billion. We ran moderated multiple regression analysis to examine further the degree to which the unique characteristics of bribery explain variations in market penalties. Companies committing bribery in less corrupt host (...) countries and with the involvement of compromised executives experienced greater market penalties than did other companies. After partitioning share value losses into components for regulatory penalties, class action settlements, and loss to reputation, we found that reputational penalties account for 81.8¢ of every dollar of share value loss. Omission of reputational penalties in rational choice calculus underestimates bribery costs by 4.5 times. The results suggest that firms should not underestimate the importance of market-imposed reputational penalties by merely considering regulator-imposed fines and sanctions. (shrink)

In this paper, we argue that corruption research can benefit from studying corrupt transactions as a particular form of social interaction. We showcase the usefulness of a theoretical focus on social interaction by investigating online user reports on the website Frontdesktip.com. Through this focus, we can observe users sharing experiences and tips on the best ways of bribing hotel clerks in Las Vegas for attaining room upgrades and other complimentary extras. We employ a logistic regression analysis to examine what factors (...) influence the “successful” performance of this bribery practice. Our study makes a twofold contribution to existing research on corruption. First, on the theoretical level, we show that the typified and scripted character of social interactions can help explain the occurrence of corrupt transactions. Second, on a methodological level, our study showcases online self-reports as a useful data source to study corrupt transactions in an unobtrusive way. (shrink)

ABSTRACT:The relationship between culture and corruption has been the focus of various studies, producing inconsistent results. We suggest that these inconsistencies might be due to the conceptualization and measurement of culture. Drawing on the possible value/fact dichotomy discussed in ethical philosophy, we introduce the construct of cultural discrepancy—the difference between cultural values and practices —as a predictor of pervasive and arbitrary corruption. Examining the relationship between the discrepancies observed in the GLOBE cultural dimensions and the Corruption Perception Index shows that (...) in-group collectivism discrepancy is negatively related to pervasive corruption; future orientation discrepancy is positively related to arbitrary corruption. Further, we show that these relationships are contingent on national wealth. The negative relationship for in-group collectivism discrepancy is most pronounced in poor and moderately wealthy countries, and the positive relationship for future orientation discrepancy is most pronounced in rich countries. (shrink)

This study focuses on the differences in the perception of business ethics across two groups of management students from France and Romania (n = 220). Data was collected via the ATBEQ to measure preferences for three business philosophies: Machiavellianism, Social Darwinism, and Moral Objectivism. The results show that Romanian students present more favorable attitudes toward Machiavellianism than French students; whereas, French students valued Social Darwinism and Moral Objectivism more highly. For Machiavellianism and Moral Objectivism the results are consistent with the (...) literature and our hypotheses. However, contrary to our expectations, we find that Social Darwinism is more important in France than Romania. The results indicate that religious practice does not influence preferences for the three business philosophies. In terms of gender differences, women have less favorable attitudes toward Machiavellianism and more favorable attitudes toward Moral Objectivism than men. (shrink)

This study explores the general problems associated with marketing across international markets and focuses specifically on the role of corruption in deterring international marketing success. The authors do this by introducing a broader conceptualization of corruption. The dimensions of corruption and their importance in explaining the exporters’ successes in international markets are developed empirically. Partial Least Squares formative indicators are used in a comprehensive model including consumer resources (wealth and information resources), physical distance (kilometers and time zones), and cultural distance (...) (linguistic and values differences) as alternative explanatory variables. Finally, differences in the model’s performance across data from three exporting countries (France, Japan, and the US) are delineated and discussed. For example, the successes of French and Japanese exporters in international markets are in part determined by the levels of corruption in target countries. Alternatively, corruption in target countries does not appear to affect the successes of American exporters in global markets. The conceptualization of corruption in this study extends the more narrow view of corruption solely as bribery. (shrink)

The huge amounts spent on store security and crime prevention worldwide, not only costs international businesses, but also amounts to a hidden tax on those law-binding consumers who bear higher prices. Most previous research has focused on shoplifting and ignored many other ways in which consumers cheat businesses. Using a hybrid of both qualitative research and survey approaches in four countries, an index of 37 activities was developed to examine consumers’ unethical activities across UK, US, France, and Austria. The findings (...) indicate that around three quarters of consumers in all four countries can be classified as heavy offenders for these minor cheats. The paper argues that government agencies, marketers, and retailers should adopt more pro-active preventative approaches, rather than reactive loss limitation measures to combat unethical behavior. (shrink)

This study examines the impact of culture on regulation and corruption. Our empirical results suggest that cultural values have significant effects on countries’ regulatory policies, levels of corruption, and economic development. Contrary to the conclusions drawn by others, this study shows no significant relationship between the regulatory policies of countries and their perceived levels of corruption. Thus, evidence of the “public choice view” toward entry regulation derived in related studies seems to be at least attenuated.

This paper draws on Weber’s theodicy problem to define organizational corruption as the emerging discrepancy between experience and normative expectation. Theodicy describes the attempts to explain this discrepancy. The paper presents four normative principles enlisted by observers to respond to perceived corruption: moral dilemma, detachment, systematic regulation, and normative controls. Consistent with social construction, these justifications work to either reaffirm or challenge prevailing social norms in the face of confusing events. An exemplar case involves perceived corruption in the business of (...) mountain climbing as represented through the 1996 Mt. Everest climbing disaster. The events illustrate how theodicy informs descriptive accounts of corruption and expose two limitations of normative models of ethics. (shrink)

This paper extends the discussion of business ethics by examining the issue of corruption, its definition, the solutions being proposed for dealing with it, and the ethical perspectives underpinning these proposals. The paper’s findings are based on a review of association, think-tank, and academic reports, books, and papers dealing with the topic of corruption, as well as the pronouncements, websites, and position papers of a number of important global organizations active in the fight. These organizations include the World Bank, the (...) International Monetary Fund, the Organization for Economic Co-operation and Development, Transparency International, USAID, the United Nations, the International Chamber of Commerce, the Organization of American States, and the Council of Europe. Our discussion departs from prior analyses by adopting a Foucaultian theoretical framing and by incorporating insights found in the virtue ethics literature. Implications are provided for international business organizations. (shrink)

Frequent and open interaction between venture capitalists and entrepreneurs is necessary for venture capital investments to occur. Increasingly, these investments are made across jurisdictions. The vast majority of these cross-border investments are carried out in a syndicate of two or more VCs, indicating the effects of intra-industry networks needing further analysis. Using China as a model, we provide a novel multidimensional framework to explain cross-border investments in innovative ventures across developed and emerging economies. By analyzing a unique international dataset, we (...) examine worldwide venture capital investment flows from 2000–2012 and consider the effects of geographical, cultural, and institutional proximity as well as institutional and relational trust. We find trust to mitigate the negative effects of geographical and cultural distance, where institutional trust is more relevant for investments in emerging economies, and relational trust is more relevant for investments in developed economies. (shrink)

Despite the fact that business people and business students often cast doubt on the relevance of universal moral principles in business, the rejection of relativism is a precondition for business ethics to get off the ground. This paper proposes an educational strategy to overcome the philosophical confusions about relativism in which business people and students are often trapped. First, the paper provides some conceptual distinctions and clarifications related to moral relativism, particularism, and virtue ethics. More particularly, it revisits arguments demonstrating (...) that virtues in business are not in contradiction with the relevance of universal principles, despite the fact that virtue ethics is often identified with particular relationships and contexts. It goes on to show how students and managers, but also researchers, often mix up radically different conceptions of moral relativism. It is also argued that this confusion is in part created by the cross-cultural management literature in which the methodological stance of the value-freedom of the social sciences is, in a perplexingly mistaken way, transformed into a rejection of all normative discussion and a plea for relativism. The remainder of the paper presents some tools that may be helpful in steering people toward less simplistic views about moral relativism and virtue ethics. It further argues that it is equally important to spell out that moral universalism can be understood in a humble way, without implying either arrogant ethnocentrism or omniscience, as part of an ongoing debate that progresses gradually. (shrink)

Business leadership increasingly requires a master’s degree in business and graduate management admission test scores continue to be an important component of applications for admission to such programs. Given the ubiquitous use of GMAT scores as gatekeepers for business leadership, GMAT scores are likely to influence organizational ethical behavior through gender, cultural, and other biases in the GMAT. There is little prior literature in this area and we contribute by empirically documenting that GMAT scores are negatively related to the cultural (...) dimensions of masculinity and power distance and are positively related to math literacy, uncertainty avoidance, and individualism. We estimate that cultural factors may account for as much as an 80-point difference in cross-national mean GMAT scores which are also related negatively to local language literacy, national educational spending, wealth per capita, wealth inequality, and gender development. Most interestingly, we also find a significant negative association of GMAT scores with ethical orientation. These findings have important implications for business schools and corporate ethics and leadership. (shrink)

We examine the impact on firm bribery of two corporate governance devices heavily studied in corporate governance research—i.e., separation of ownership and control, and equity share of the largest shareholder. In addition, we investigate the impact of the principal–owner’s gender on firm bribery. From agency theory, we predict that firms with the owner also acting as a manager (owner–manager) are more likely to engage in bribery compared to their counterparts with separation of ownership and control. We argue that an increase (...) of the equity share of the largest shareholder can either increase or decrease firm bribery likelihood depending on the net cost-benefit effect of such bribery actions. In addition, we predict that bribery is more likely to occur when the principal–owner is male rather than female. Using a rich dataset of the World Bank Enterprise Surveys of 2002–2005, we find that the equity share of the largest shareholder is negatively and male principal–owner is positively associated with the likelihood of firm bribery. Furthermore, we reveal that owner–manager is more likely to bribe when the principal–owner is male rather than female. We also observe that the effect of owner–manager is smaller as the equity share of the largest shareholder increases. (shrink)

This study focuses on the differences in the perception of business ethics across two groups of management students from France and Romania (n = 220). Data was collected via the ATBEQ to measure preferences for three business philosophies: Machiavellianism, Social Darwinism, and Moral Objectivism. The results show that Romanian students present more favorable attitudes toward Machiavellianism than French students; whereas, French students valued Social Darwinism and Moral Objectivism more highly. For Machiavellianism and Moral Objectivism the results are consistent with the (...) literature and our hypotheses. However, contrary to our expectations, we find that Social Darwinism is more important in France than Romania. The results indicate that religious practice does not influence preferences for the three business philosophies. In terms of gender differences, women have less favorable attitudes toward Machiavellianism and more favorable attitudes toward Moral Objectivism than men. (shrink)

The purpose of our article is to describe the initial development process of the subordinate influence ethics (SIE) measure, an instrument that was crossculturally conceived, designed, and validity tested to measure upward influence ethics strategies of professional subordinates across different societies, as well as within a single society. Development of the SIE began by defining the SIE constructs through theoretical review and empirical (nominal group technique) assessments in Germany, France, Hong Kong, and the U. S. In the present measurement development (...) phase, the SIE has been found to consist of three distinct dimensions: pro-organizational behaviors, self-serving behaviors, and maliciously intended behaviors. The construct validity of the SIE was examined across 4113 subjects from 30 countries. A reduced model of the SIE was developed empirically to represent the "best model" for the three-factor scale. (shrink)

In this paper I analyze representations of scholarly output for the purpose of identifying corrupt practices. Accordingly, the components of output—price, quantity, and time—are examined. A key part of the analysis is recognizing the unique role that the scholarly community plays in scholarship and the implications this has for the roles of groups other than the scholarly community. Finally, a survey of students indicates that particular representations of scholarly output are viewed by students as unethical.

It is widely acknowledged that corruption by any firm is problematic. More importantly, its negative effects are compounded when corruption is present in large firms with global reach and corruption ceases to be a single instance but becomes a reoccurring or perpetuating phenomenon over time. Though the magnification of corruption over both time and size of operations creates scale effects that amplify its detrimental consequences, this context remains largely unexamined empirically. Thus, our research question is: What are the factors that (...) contribute to corruption by large global firms? Drawing on institutional theory, we examine the normative pressures that interact to create a vortex of corporate corruption that persisted over several years. We analyze a 9-year longitudinal dataset of 469 unique FT Global 500 companies representing 31 primary industries and 33 countries with over 3700 company year observations. Results help disentangle a complex interaction of firm-level and headquarters country-level factors that drive corruption and impact performance among top global firms. (shrink)

The cross-cultural literature is reviewed and integrated together with attitude theories, thereby outlining a model through which certain values influence the intervening variables that ultimately lead managers to tolerate employee bribery. The case of Latin America is employed to illustrate how regionally dominant cultural values may shape managers' attitudes, subjective norms, and perceived behavioral control, which in turn affect tolerance of employee bribery. A series of research propositions and practical recommendations are derived from the model.

A number of studies have investigated and found a significant relationship among economic wealth, Hofstede’s national culture dimensions, and software piracy rates (SPR). No study, however, has examined the relationship between economic wealth, culture, and the fact that national SPRs have been declining steadily since 1994. Using a larger sample than has previously been available (57 countries), we confirm the expected negative relationship between economic wealth, culture (individualism and masculinity) and levels of software piracy. The rate of decline in software (...) piracy, however, is found to be a cultural phenomenon, with two factors (power distance (PDI) and uncertainty avoidance (UAI)) working in opposition. Similar results are found for a subset of 37 relatively poor countries. This suggests that, while the rise in economic wealth seen for most countries should lead to a reduction in software piracy, the rate of decline is determined by cultural factors. Global strategies for dealing with software piracy are discussed. (shrink)

The goal of this study was to introduce a model explaining how managers' attitudes, subjective norms, attributions, and the individualism-collectivism cultural dimension affect the way managers' deal with employee bribery in organizations. Twenty-six internal and external attributions related to bribery were identified through a series of structured interviews with 65 subject matter experts. These attributions, together with the other variables in the model, were evaluated by 354 Ecuadorian managers. Hierarchical regression analyses indicated that attitudes and external attributions significantly predicted managers' (...) intentions to discipline employees who accepted a bribe. In addition, external attributions mediated the relationship between individualism-collectivism and intent to discipline corrupt employees. Implications for the management of bribery in Latin American organizations are discussed. (shrink)

This study investigates the relationship between moral schemas and corruption in public procurement. It adopts a moral schema framework to examine procurement-induced corruption from Uganda. Experiences, attitudes, and values of respondents are used to construct future behavior of public procurement staff. The schema framework was built around the premise that procurement-related corruption is a function of the social framework and human nature paradox, constructing logical justification for the acts of corruption. The study uses data from 474 public procurement staff to (...) demonstrate that social identity, ethical egoistic, legislative, amoral, and religious moral schemas account for 78.51% of the variance in moral schema of respondents. All these schemas were found to be significant predictors, accounting for 73.3% of public procurement corruption. The paper urges managers of procuring and disposing entities to utilize moral scripts in reducing corruption. Managers are encouraged to engage in morally responsible behaviors to promote ethics and value-for-money transactions. The paper provides an alternative framework for examining corruption in sub-Saharan Africa where explicit elaboration of insights on corruption is still lacking. (shrink)

We examine the impact on firm bribery of two corporate governance devices heavily studied in corporate governance research—i.e., separation of ownership and control, and equity share of the largest shareholder. In addition, we investigate the impact of the principal—owner's gender on firm bribery. From agency theory, we predict that firms with the owner also acting as a manager (owner-manager) are more likely to engage in bribery compared to their counterparts with separation of ownership and control. We argue that an increase (...) of the equity share of the largest shareholder can either increase or decrease firm bribery likelihood depending on the net cost-benefit effect of such bribery actions. In addition, we predict that bribery is more likely to occur when the principal— owner is male rather than female. Using a rich dataset of the World Bank Enterprise Surveys of 2002-2005, we find that the equity share of the largest shareholder is negatively and male principal—owner is positively associated with the likelihood of firm bribery. Furthermore, we reveal that owner—manager is more likely to bribe when the principal— owner is male rather than female. We also observe that the effect of owner—manager is smaller as the equity share of the largest shareholder increases. (shrink)

Non-domestic companies are increasingly present on the London Stock Exchange. Such companies have specific governance requirements. They may seek to access capital in a more liquid market and to diversify ownership. The reputational ‘bonding’ to a prestigious exchange should be a statement to the market of a propensity to disclosure and a willingness to protect minority shareholders. Yet, many non-domestic companies retain tightly controlled shareholding structures and are based in emerging regions where national culture norms differ to the UK. We (...) hypothesise that non-domestic companies are likely to be less compliant with the principles of the UK Corporate Governance Code and suggest a correlation between lower levels of compliance and non-domestic companies from countries that demonstrate high power distance in the Hofstede cultural value framework. We find some encouraging signs of compliance with the reigning governance code principles in Board structures. However, we find only partial compliance in leadership and Board effectiveness measures in those companies from cultures high on the power-distance scale. Further, we include analysis into ownership characteristics and find companies from emerging markets are dominated by a single or controlling group of shareholders, which is likely to impact on attitudes to compliance and is particularly evidenced in terms of Board structures with no executive directors or led by an executive Chairman. Much of the prior research effort into the levels of compliance with the UK’s ‘comply-or-explain’ approach to governance has produced mixed results and focused on all companies. In our exploratory approach to analysing only the non-domestic subsample, we report some evidence linking cultural distance to lower levels of compliance with the UK standards. We develop a framework to guide future research into the context and cultural underpinnings of this sub-sample of companies, hypothesising that frequent market capitalisation-induced index changes may divert attention away from any potential compliance issues. On the one hand, our evidence is encouraging for governance regimes based on voluntary compliance disclosures such as the UK and similar European and international markets, as we report partial compliance with the principles of the current governance code. Our research may, however, be helpful in guiding future versions of the UK governance framework and other international governance regimes adopting the ‘comply-or-explain’ approach and in setting policy to improve disclosure. It contributes to the understanding of the specific context of non-domestic companies and any cultural tendencies to non-compliance. By demonstrating evidence of lower levels of compliance with key principles of the Code by non-domestic companies, we present a framework enabling lawmakers to further improve corporate governance codes. (shrink)

Using Robert Merton’s perspective on social structure [Social theory and structure. Free Press, New York, 1968], this study tested the individual-level association between job position and ethical reasoning. Anomie theory was employed to examine how country-level factors moderate that individual-level association. The hierarchical linear modeling (HLM) method was used to analyze 22,359 subjects from 28 nations. The statistical results proved that workers are more likely to justify ethically suspect behaviors, and that this individual-level relationship is moderated by the country-level factors (...) of power distance, masculinity, social inequality, and education accessibility. These results imply that Merton’s view of social structure and contemporary anomie theorists’ perspective of anomie [Messner and Rosenfeld (Crime and the American dream. Wadsworth, Belmont, 2001); Rosenfeld and Messner (The future of anomie theory. Northeastern University Press, Boston, 1997)] are mutually complementary rather than exclusive. (shrink)

This article examines the proposition that a major cause of the major financial accounting scandals that received much publicity around the world was unethical leadership in the companies and compares the role of unethical leaders in a variety of scenarios. Through the use of computer simulation models, it shows how a combination of CEO's narcissism, financial incentive, shareholders' expectations and subordinate silence as well as CEO's dishonesty can do much to explain some of the findings highlighted in recent high profile (...) financial accounting scandals. Furthermore, it shows that the nature and impact of ethical leadership depends greatly on the institutional setting and can be expected to vary greatly by country and culture. In certain circumstances ethical leadership can have either a negligible or even opposite effect to that expected. (shrink)

Recent research suggests that collectivism breeds corruption in bank lending. This finding, together with the stickiness of culture, poses a direct challenge to economic growth in collectivist societies. In this paper, we address this grim outlook by examining the types of firms that are susceptible to the detrimental effect of collectivism on lending integrity and the formal institutions that can help alleviate such effect. We find that the adverse effect of collectivism on bank corruption is more severe in small and (...) medium-sized firms, privately owned firms, and non-exporting firms, while it is considerably weaker in countries with more effective private monitoring, a higher fraction of foreign-owned banks, a more competitive banking sector, better information sharing, and stronger legal and political institutions. Our findings are robust to using alternative measures of collectivism and alternative dependent variables. These results highlight how firm-level characteristics and formal institutions interact with collectivism in affecting firms’ access to bank credit. (shrink)

This study builds upon the top management literature to predict and test antecedents to firms’ engagement in corruption. Building on a survey of 341 executives in India, we find that if executives have social ties with government officials, their firms are more likely to engage in corruption. Further, these executives are likely to rationalize engaging in corruption as a necessity for being competitive. The results collectively illustrate the role that executives’ social ties and perceptions have in shaping illegal actions of (...) their respective firms. (shrink)

Ethical issues surrounding the marketing and trade of controversial products such as tobacco require a better understanding. Virginia Slims, an exclusively women’s cigarette brand first launched in 1968 in the USA, was introduced during the mid 1980s to major Asian markets, such as Japan and Korea, dominated by male smokers. By reviewing internal corporate documents, made public from litigation, we examine the marketing strategies used by Philip Morris as they entered new markets such as Japan and Korea and consider the (...) extent that the company attempted to appeal to women in markets where comparatively few women were smokers. The case study of Virginia Slims reveals that the classification of “vulnerable” consumers is variable depending on culture, tobacco firms display responsive efforts and strategies when operating within a “mature” market, and cultural values played a role in informing Philip Morris’ strategic decision to embrace an adaptive marketing approach, particularly when entering the Korean market. Finally, moral questions are raised with tobacco being identified as a priority product for export and international trade agreements being used by corporations, governments, or trade partners in efforts to undermine domestic public health policies. (shrink)

We empirically examine the effect of two measures of culture, the World Values Survey and Hofstede's six dimensions, on three measures of corruption, Transparency International's CPI, the International Country Risk Guide, and the World Bank's Corruption Index. By adopting three measures of corruption and using a large data set covering many countries over many years, we offer more robust results as to the effects of aspects of culture on corruption. Using the World Values Survey, we find that Trust in society, (...) Control over one's destiny and Respect for others decrease corruption while Obedience increases corruption. We find strong evidence that societies characterized by high Power Distance and Masculinity are more corrupt. Some evidence is found to indicate Long Term Orientation, Indulgence, and Individualism have a negative effect on corruption. The effect of Uncertainty Avoidance on corruption is unclear. The results have implications for international business leaders as well as policy makers. (shrink)

Multinational corporations face a litany of challenges regarding ethical decision-making as they traverse new variables in each country they operate in. Presented here is a new approach to ethical decision-making research for multinational corporations with the inclusion of moral virtues, national culture, and a feedback mechanism. The new proposed model builds off of the existing work by Trevino’s Person-Situated Interactionist Model. Hofstede’s work on individual national culture characteristics is used to move the conversation forward by explaining the relationships between individual (...) moderators in Trevino’s model and the effect of national culture on them. The new proposed model recommends the inclusion of moral virtues, with honesty and integrity as examples, as individual moderators in the decision-making process based on previous work. It contributes to the literature by introducing moral virtues into traditional ethical decision-making process models and introduces a new variable with a feedback mechanism for future learning. The paper concludes with recommendations for the future direction of research for ethical decision-making models for multinational organizations. (shrink)