Previous work suggests that gender attitudes are associated with different individual and organizational factors. At the same time, ethics research suggests that many of these same variables can influence ethical reasoning in companies. In this study, we sought to combine these streams of research to investigate whether individual skepticism of women's employment is related to ethical reasoning in a gender-based ethical situation. The results of the hierarchical regression analysis indicated that skepticism of women's employment was negatively related to the recognition (...) that the gender-based dilemma involved an ethical problem, and that skepticism was also negatively related to judgments that the situation was unethical. These findings imply that companies should advance policies that increase tolerance for women's employment, such as diversity training codes of conduct, and ethics training. (shrink)

While a number of studies have examined the impact of gender/sex on ethical decision-making, the findings of this body of research do not provide consistent answers. Furthermore, very few of these studies have incorporated cross-cultural samples. Consequently, this study of 222 American and Spanish business executives explored sex differences in ethical judgments and intentions to act ethically. While no significant differences between males and females were found with respect to ethical judgments, females exhibited higher intentions to act more ethically than (...) males. This difference was true of both U.S. and Spanish executives. Further research is warranted to develop a clearer understanding of the linkage between ethical judgment and intention to act in an ethical manner. These findings have implications for global firms, particularly regarding codes of conduct and ethics training. (shrink)

Ethics training is commonly cited as a primary method for increasing employees' ethical decision making and conduct. However, little is known about how the presence of ethics training can enhance other components of an organization's ethical environment such as employees' perception of company ethical values. Using a national sample of 313 business professionals employed in the United States, the relationship between ethics training and perceived organizational ethics was explored. The results of the analysis provide significant statistical support for the notion (...) that businesspersons employed in organizations that have formalized ethics training programs have more positive perceptions of their companies' ethical context than do individuals employed in organizations that do not. The analysis also indicated that job satisfaction was related to employees' attitudes about their ethical context. The managerial implications of the results are outlined, along with the limitations of the study and recommendations for future research. (shrink)

In today's complex business world, the question of business ethics is increasingly gaining importance as managers and employees face numerous ethical dilemmas in their jobs. The ethical climate in the Turkish business environment is also at a critical stage, and the business community as a whole is troubled by ethical problems. This study attempts to determine the effect of individual, managerial and organizational factors on the ethical judgments of Turkish managers, and to evaluate the ethical perceptions of these managers. The (...) findings of this study reveal that the ethics score, the measure of ethical judgment, of Turkish managers differs significantly only with respect to gender and that female managers have higher ethics score than male managers. Other individual, managerial and organizational factors considered in this study do not have any significant effect on the ethical judgments of the managers. A comparative analysis between female and male managers in terms of their ranking of the eleven ethical business scenarios, ranking of the sixteen unethical acts, ranking of the factors influencing managers to engage in unethical practices, and ranking of the various parties to whom a company is socially responsible enables the researchers to enlighten the subject of business ethics in Turkey. (shrink)

The purpose of this paper is to provide a basis for a systematic development of signaling theory on CSR initiatives. The paper proposes signaling theory as a framework supportive of a strategic CSR approach; maps extant research on signaling through CSR initiatives; offers a comprehensive assessment of the most diffused CSR initiatives and discusses their eligibility as signaling devices; and outlines a research agenda to further develop and test signaling theory in business ethics. Specifically, the study reconsiders some key assumptions, (...) identifies key gaps in empirical validation, and proposes directions to extend multiple signal, signaling pattern, and target cases. (shrink)

Although thought suppression is a commonly used self-control strategy that has far-reaching consequences, its effect on ethical decision making is unclear. Whereas ironic process theory suggests that suppressing ethics-related thoughts leads to mental rebounds of ethicality and decreased unethical behavior, ego depletion theory suggests that thought suppression can lead to reduced self-control and increased unethical behavior. Integrating the two theories, I propose that the effect of thought suppression on unethical behavior hinges on the content of the suppressed thoughts. Participants who (...) suppressed ethics-related [-unrelated] thoughts engaged in less [more] cyber bullying, cheating, and dishonesty compared to participants in the control conditions. Explicit and implicit moral awareness was found to mediate this moderated effect. Experiment 4 further demonstrated that suppressing ethics-related thoughts reduces self-control performance on a subsequent amoral task, but not on subsequent ethical decision making. (shrink)

Codes of ethics exist in many, if not the majority, of all large U.S. companies today. But how the impact of these written codes affect managerial attitudes and behavior is still not clearly documented or explained. This study takes a step in that direction by proposing that attention should shift from the codes themselves as the sources of ethical behavior to the persons whose behavior is the focus of these codes. In particular, this study investigates the role of code familiarity (...) as a factor impacting the influence of an ethics code on manager behavior. Data collected from 286 executives from companies in the direct selling industry are used to test hypotheses (1) that the perceived usefulness of ethics codes is positively related to the degree of familiarity with the code, and (2) that ethical climate as assessed by managers is positively related to the code''s perceived usefulness. Both hypotheses are supported, and their implications and further research directions are discussed. (shrink)

In recent years, theoretical and empirical developments in the area of organizational climate has provided the impetus for research concerning ethical climate. According to this latter research, ethical climate is a multi-dimensional construct which is manifested in organizations. Studies, however, have not focused on the relationship between ethical climate and ethical behavior. Furthermore, an enhanced understanding of the multi-dimensionality of ethical climate will likely advance what we know about organizational climate and culture in general. We propose further examination of ethical (...) climate by: (1) showing the conceptual relationship between ethical climate and ethical (or unethical) behavior in organizations; and (2) examining supervision as one of the principle influences on ethical climate and concomitant subordinate behavior. Finally, we explore the implications for future research on ethical climate. (shrink)

We define ethical system infrastructure as being composed of three major factors – means, motivation, and opportunity. Means are defined as organizational rules, policies, and procedures. Motivation focuses upon the values and the interests being pursued by the position occupant and the organizational value system, while opportunity is discussed in terms of the environment in which the dilemma occurs, proposing that position in the hierarchy presents its own unique set of ethical dilemmas. Ethical breeches are discussed in terms of the (...) interactional processes among means, motivation, and opportunity. Finally, a sequential process is suggested to use the infrastructural components to institutionalize organizational ethics training and subsequent behavior. (shrink)

Reoccurring instances of unethical employee behavior raises the question of the effectiveness of organization’s employee ethics training programs. This research seeks to examine employee ethics training programs among US-based global organizations by asking members of the Ethics and Compliance Officer Association to describe various elements of their organizations’ ethics training programs. This investigation and assessment reveal that there are some effective aspects of ethics training but five serious concerns are identified and discussed as potential contributions to the lack of ethics (...) among business organizations’ employees. (shrink)

Applied Business Ethics is a core module for business undergraduate students in an internationalised university business degree programme from the United Kingdom taught at a Private Higher Education Institution in Singapore. Students, who are working adults undertaking this part-time degree, are assessed purely on the application of theoretical knowledge through essays that show evidence of their ability to apply theory in workplace ethical dilemmas. This pilot study explores the utility of the module in terms of use and exchange value. It (...) was conducted in two phases as an empirical qualitative research. First, an email survey was sent to students, who had already graduated, to gather impressions of the module using open-ended questions. Based on the responses, semi-structured interviews of a purposive sample of four students were carried out to unearth insights on use and exchange value of the module through their stories. The study suggests that a key determinant of use value is workplace utility of the knowledge that has been gained. Over time, consistent derivation of use value translates to exchange value as long-term behaviour changes in the individual create positive workplace outcomes. The study also recognised the powerful influence of organisational culture in determining whether ethical thinking translates into ethical action, which also has a direct bearing on perceptions of use and exchange value. The findings of this study provide an insight to the understanding of the motivations of working adults attending the Applied Business Ethics module on a part-time basis. Having this understanding, it will be possible to further structure the module, in terms of positioning, delivery and assessment, to enable these students to become better managers when dealing with real-world workplace ethical issues. (shrink)

While a number of studies have examined the impact of gender/sex on ethical decision-making, the findings of this body of research do not provide consistent answers. Furthermore, very few of these studies have incorporated cross-cultural samples. Consequently, this study of 222 American and Spanish business executives explored sex differences in ethical judgments and intentions to act ethically. While no significant differences between males and females were found with respect to ethical judgments, females exhibited higher intentions to act more ethically than (...) males. This difference was true of both U.S. and Spanish executives. Further research is warranted to develop a clearer understanding of the linkage between ethical judgment and intention to act in an ethical manner. These findings have implications for global firms, particularly regarding codes of conduct and ethics training. (shrink)

Previous work suggests that gender attitudes are associated with different individual and organizational factors. At the same time, ethics research suggests that many of these same variables can influence ethical reasoning in companies. In this study, we sought to combine these streams of research to investigate whether individual skepticism of women’s employment is related to ethical reasoning in a gender-based ethical situation. The results of the hierarchical regression analysis indicated that skepticism of women’s employment was negatively related to the recognition (...) that the gender-based dilemma involved an ethical problem, and that skepticism was also negatively related to judgments that the situation was unethical. These findings imply that companies should advance policies that increase tolerance for women’s employment, such as diversity training codes of conduct, and ethics training. (shrink)

Ethics training is commonly cited as a primary method for increasing employees ethical decision making and conduct. However, little is known about how the presence of ethics training can enhance other components of an organization's ethical environment such as employees perception of company ethical values. Using a national sample of 313 business professionals employed in the United States, the relationship between ethics training and perceived organizational ethics was explored. The results of the analysis provide significant statistical support for the notion (...) that businesspersons employed in organizations that have formalized ethics training programs have more positive perceptions of their companies ethical context than do individuals employed in organizations that do not. The analysis also indicated that job satisfaction was related to employees attitudes about their ethical context. The managerial implications of the results are outlined, along with the limitations of the study and recommendations for future research. (shrink)

The purpose of this study was to assess the relationships among ethical context, organizational commitment, and person-organization fit using a sample of 304 young working adults. Results indicated that corporate ethical values signifying different cultural aspects of an ethical context were positively related to both organizational commitment and person-organization fit. Organizational commitment was also positively related to person-organization fit. The findings suggest that the development and promotion of an ethical context might enhance employees' workplace experiences, and companies should consider adopting (...) ethical policies that support principled conduct, punish unethical actions, and increase individual perceptions of an ethical company environment. (shrink)

A corporate culture strengthened by ethical values and other positive business practices likely yields more favorable employee work responses. Thus, the purpose of this study was to assess the degree to which perceived corporate ethical values work in concert with group creativity to influence both job satisfaction and turnover intention. Using a self-report questionnaire, information was collected from 781 healthcare and administrative employees working at a multi-campus education-based healthcare organization. Additional survey data was collected from a comparative convenience sample of (...) 127 sales and marketing employees working for a variety of firms operating in the south-central United States. The results indicated that group creativity and corporate ethical values were positively related, and that both variables were associated with increased job satisfaction. Conversely, corporate ethical values and job satisfaction were associated with decreased turnover intention. Sales managers should create work cultures that precipitate increased ethical values and group creativity, and suggestions about how they may institutionalize these factors are provided. (shrink)

The high turnover of nurses has become a global problem. Several studies have proposed that nurses' perceptions of the ethical climate of their organization are related to higher job satisfaction and organizational commitment, and thus lead to lower turnover. However, there is limited empirical evidence supporting a relationship between different types of ethical climate within organizations and facets of job satisfaction. Furthermore, no published studies have investigated the impact of different types of ethical climate on the three components of organizational (...) commitment. This study attempts to explore the different types of ethical climate that exist in hospitals, and the degree of job satisfaction and organizational commitment of nurses in Taiwan. It uses path analysis to understand which types of ethical climate influence different facets of job satisfaction. The study also examines the impact of different types of ethical climate and facets of job satisfaction on the three components of organizational commitment. Questionnaires were distributed to 352 nurses. The relationships among variables were assessed by factor analysis, reliability, descriptive statistics, correlations, and regression. The important conclusion is that hospitals can increase job satisfaction and organizational commitment by influencing an organization's ethical climate. Hospital administrators can foster within organizations the climate types of caring, independent, and rules climate that increase satisfaction, while preventing organizations from developing the type of instrumental climate that decreases it. (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)

Accounting professionals play an important role in the generation and auditing of financial statements and, given their understanding of business processes, may be relied upon in the development of organizations’ ethical infrastructures (i.e., the formal aspects of an organization’s ethical environment that are explicitly under the control of the organization). Thus, understanding and improving the work environments of accounting professionals is crucial to improving organizational ethical culture and reducing fraud. In this study, we extend prior research that documents the prevalence (...) of ethical infrastructure programs by assessing how accounting professionals, a key employee group, perceive their organizations’ ethical infrastructures. In addition, we examine whether perceptions of the effectiveness of the ethical infrastructure and professional autonomy influence accountants’ ethical judgments. Based on the responses of 378 CPAs in the United States, we find the perceived state of the ethical infrastructure across accounting work environments—both public accounting firms and other organization types—is relatively strong. However, of the five ethical infrastructure components we examine (i.e., ethics code, ethics training, ethics-based punishments and incentives, ethics reporting system, and ethics review system), only 35% of respondents indicate that their organizations have more than three of these components. Importantly, we find that perceived ethical infrastructure effectiveness and professional autonomy influence both perceptions of the ethical culture and the ethical judgments of accounting professionals. We also contribute to practice by highlighting opportunities for improvement in ethics training formats, ethics-based incentives, and ethics review systems. (shrink)

Traditionally, research focused on determining the causes of employee pay satisfaction has investigated the influence of job-related inputs, both extrinsic and intrinsic to the job itself. Together with these inputs, pay-related fairness issues have played an important role in explaining the phenomenon. However, few studies consider the factors linked to fairness issues, such as ethical leadership. Because ethical leadership necessarily entails the concept of fairness, it seemingly should have a positive effect. Furthermore, because the presence of supervisor ethical leadership (SEL) (...) offers strong chances for employees to achieve moral accomplishments and excel in the practice of their jobs, SEL should enhance the effects of intrinsic job inputs. Whereas high job motivating potential (JMP) makes it easier for employees be self-actualized, moral fulfillment is necessary for them to obtain authentic self-actualization at work and minimize the impact of pay deficiencies. Along with SEL, JMP should be shaped to increase positive experiences of job meaningfulness, responsibility for job outcomes, and knowledge of results at work, which can lead to enjoyment in doing the job in itself, not just for compensation-related motives. Hierarchical regression analysis with a sample of 151 employees in a diverse set of Spanish organizations supports the direct effects of JMP and SEL and shows that higher levels of SEL increase the positive effects of JMP on pay satisfaction. The practical implications of these findings and further research directions conclude this article. (shrink)

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)

Three ethics program components, a code of ethics, ethics training initiatives and ethics-oriented performance appraisal content, were examined for their relationship to ethical intent using a sample of 525 employees from the Spanish financial services industry. As expected, all three components contributed to the prediction of ethical intent. Importantly, clusters of employees who reported experiencing distinct combinations of the program components were identified and compared for their level of ethical intent. Employees who perceived all three components to be strongly implemented (...) reported significantly higher levels of ethical intent relative to those who viewed the components as either all weakly implemented or not present. Combinations including training initiatives plus one other element had a similar impact to the fully implemented approach. Contrary to expectations, ethics-oriented performance appraisal content did not relate more strongly to ethical intent than codes of ethics. (shrink)

Abstract:Our research investigated pricing policies of fast-food restaurants in predominantly black neighborhoods. We argue that the lack of monitoring of franchisees’ pricing policies leads to higher prices. Results indicate that franchisees are significantly more likely than company-owned outlets to charge higher prices based on the proportion of blacks in a neighborhood. These price differences do not appear to be explained away by cost or competition factors. Our findings do not establish an intent to discriminate; nevertheless, we discuss the fairness of (...) the pricing structure found. (shrink)

This study explores differences between executives in the U.S. and Spain in their perceptions of ethical issues in pricing, specifically comparing a domestic firm's actions affecting a foreign market versus a foreign firm's actions affecting the domestic market. Overall, Spanish and American executives provided somewhat different responses to the scenarios. Findings indicate that ethical judgments and intentions among Spanish executives did not vary based on which country was harmed. U.S. executives generally perceived that a morally questionable act directed at a (...) foreign country was more unethical than a morally questionable act directed at the United States. Possible explanations for these findings are suggested. (shrink)

The article deals with the influence of organizational ethics program components on managerial ethical behavior. The main aim was to establish which EP components are perceived as valuable and useful to foster the ethical behavior of managers. Moreover, we also aimed to investigate the role of ethics training in this context and to explore whether it can potentially increase managers’ trust in EP components as effective tools for the promotion of ethical behavior. The article advances the EP theory in several (...) ways. It offers novel insights into both business ethics and EP development in the specific cultural and social circumstances of a former socialist country in the Central and Eastern European region, Slovakia. It shows that codes of ethics and related reporting and control mechanisms are perceived as the most effective EP components to shape managerial ethical behavior. Furthermore, based on empirical evidence, and to some extent contrary to prior theory, the article unveils three EP functions, namely the ‘compliance with group norms,’ the ‘ethics education through collective discussion,’ and the ‘counselling and resolving of ethical issues’ at workplace. In addition, the article shows that ethics trainings can help to boost the trust of managers toward EP components and might be conceptualized as a precursor for an effectively functioning EP. (shrink)

This study explores the relationships among marketers' deontological norms and their personal values. Based on the review of theoretical works in the area of marketing, hypotheses concerning the relationships among marketers' norms and their personal values were developed and tested. Data were collected from 249 marketing professionals. Results from canonical correlation analysis generally indicate that marketers' norms can be partly explained by personal values. Marketers' pricing and distribution norms, information and contract norms, and norms pertaining to marketers' honesty and integrity (...) were significantly related to the personal values emphasizing "excitement," "warm relationships with others," "fun and enjoyment in life," and "a sense of accomplishment.". (shrink)

This paper provides a paradigm for evaluating the factors that affect the development of a global code of ethics in marketing. Based on a review of the literature pertaining to global codes of ethics, we examined the potential for the development and acceptance of a universal code of ethics in the international marketing arena. Towards that end, we suggest that any global code of ethics in marketing should consider two levels – normative guidelines and specific behaviors. A discussion detailing the (...) factors that can impede the development of such a two-tiered code is included as well. Those factors being moral reasoning, organizational ethical climate, level of economic development and cultural dimensions. Finally, the feasibility and the possible outcomes of a global code of ethics in marketing is examined. (shrink)

The aim of this study is to increase our understanding of the ethical climate of entrepreneurial firms as they grow and develop. A developmental framework is introduced to describe the formal and informal ethical structures that emerge in entrepreneurial firms over time. Factors influencing where firms are within the developmental framework are posited, including the entrepreneur's psychological profile, lifecycle stage of the business, and descriptive characteristics of the venture. It is also proposed that the implementation of ethical structures will impact (...) perceptions of the clarity and adequacy of the ethical standards of the firm and the firm's preparedness to deal with ethical challenges as they arise. Results are reported of a cross-sectional survey of small firms at different stages of development. The findings indicate the existence of four distinct clusters of firms based on their formal and informal ethical structures: Superlatives, Core Proponents, Pain and Gain, and Deficients. Evidence is also provided of statistically significant relationships between the proposed antecedent and outcome variables. Implications are drawn from the results, and priorities are established for future research. (shrink)

Because doping is becoming more and more of a problem in elite sports, anti-doping and prevention programs are receiving more attention. However, current doping prevention programs that primarily involve pedagogical education in youths have not been shown to be very effective. In sports philosophy there is a discourse about ethics and morality in sports in connection with doping. So far, however, the aspect of ethics has been neglected in anti-doping prevention programs. This article discusses a new approach to doping prevention (...) for young athletes and a way to improve conventional doping prevention by focusing on the process of decision-making. The article argues that ethical decision-making programs based on ethical training programs developed in business offer a large potential for prevention programs in sport. The article concludes with a presentation of training possibilities for ethical decision-making in connection with doping. (shrink)

To date the teaching of business ethics has been examined from the descriptive, prescriptive, and analytical perspectives. The descriptive perspective has reviewed the existence of ethics courses (e.g., Schoenfeldtet al., 1991; Bassiry, 1990; Mahoney, 1990; Singh, 1989), their historical development (e.g., Sims and Sims, 1991), and the format and syllabi of ethics courses (e.g., Hoffman and Moore, 1982). Alternatively, the prescriptive literature has centred on the pedagogical issues of teaching ethics (e.g., Hunt and Bullis, 1991; Strong and Hoffman, 1990; Reeves, (...) 1990; Castro, 1989; George, 1987; Golenet al., 1985) and in providing recommendations for teachers of business ethics (e.g., Nappi, 1990; Hosmer and Steneck, 1989). From the analytical perspective judgments have been made as to whether courses in ethics are in fact effective in achieving value and attitudinal modifications in students (e.g., Loeb, 1991; Weber, 1990; Wynd and Mager, 1989; Pamental, 1989; Martin, 1982; Purcell, 1977). The evidence to date suggests that courses can be a means of achieving ethical awareness and sensitivity in students although it should be recognized that significant objections to the teaching of business ethics do exist and greatly inhibit their successful introduction. This paper addresses a number of the common objections to the teaching of business ethics that must be overcome if ethical programs are to continue in the future, and concludes with recommendations to facilitate the establishment of ethical training in an academic context. (shrink)

A review of ethical literature demonstrates that the material presented to date is largely based upon theoretical and empirical research. While this information has contributory value, the information produced is largely observational rather than practical. Managers are anxious to receive assistance with the mechanisms by which ethics can be integrated into their organisations. Utilising the recent experience of the author with a large utility company in Asia committed to developing an ethical programme to enhance ethical awareness in their organisation, this (...) paper intends to review current systems and procedures available to managers for integrating ethics into business. In addition to reviewing mechanisms for promoting an ethical climate, where appropriate, reference will be made to prior research and specific organisations where these practices have been used successfully. The paper concludes with a set of summary recommendations for managers embarking on the introduction of an ethical programme to their organisation. (shrink)

The rise of ethical scandals in the business world urged corporations to allocate time and resources to emphasize the ethical behavior of their managers and employees. The Model of Ethical Behavior in this article has three main assumptions: (1) the institutionalization of a Compliance and Ethics Program Model is done in terms of just two components: one Explicit and the other Implicit, (2) both components have a significant and direct influence over the ethical behavior of employees, which is represented in (...) the model by two variables: Value Consistency and Presence of Ethical Conflicts, and (3) proper ethical behavior is perceived by employees to have a positive impact over the economic results of the firm. Reliable scales are developed to measure all these variables from the data collected by the "Barómetro de Valores y Ética Empresarial © ," a survey applied in 2009 to 12,321 employees from 54 Chilean corporations. The empirical analysis showed that there are three very distinctive components in the Presence of Ethical Conflicts variable: (1) what the company does that affects the employee, (2) what the company does that affects other people, and (3) what the employee does that affects the company. Finally, the Explicit and Implicit components of a Compliance and Ethics Program are shown to have a significant and positive impact over: (1) Value Consistency in employees* behavior; (2) the Presence of Ethical Conflicts in organizations; and (3) the perceived importance of ethics as a key factor to improve economic performance. (shrink)

Today, organizations are facing a high rate of attrition which is a serious issue for human resource managers. Gaining the commitment of employees towards their organization, though challenging, is rewarding as organizational commitment (OC) is a precursor to employee engagement. Another challenge is about maintaining an ethical climate. Ethical misconduct by organizations not only brings them a heavy monetary price but also incurs non-monetary price in terms of customer and employee attrition and diminished business reputation. In the new workplace with (...) greater emphasis on flexibility, teams and a strong customer orientation, we feel that development of emotional intelligence (EI) of the workforce can be the key to meet these challenges. This paper explores these three critical constructs viz., EI, workplace ethics and OC together, and tests whether workplace ethics mediates the EI–OC relationship using structural equation modelling. We conducted an empirical study in Guwahati, a fast-growing tier II city in India and a business hub for north-east India, on a sample of 400 managers working in the service sector. Our study found that emotional intelligence is a strong predictor of ethical perception and organization commitment. Also, ethical perception significantly affects organizational commitment. Although we reject the hypothesis that ethics mediates the EI–OC relationship, the importance of workplace ethics cannot be undermined as it can build intangible organizational assets such as goodwill and public image. Since individual ethical standards create ethical climate, organizations need to teach their people how to recognize morally questionable situations and the consequence of unethical conduct. (shrink)

Policy statements on ethical issues abound. If all organisations which produce mission statements, codes of practice or ethical codes were, therefore, ethical in conduct and performance, business ethics would be non-problematic. However, the effectiveness of corporate codes of ethics is dependent, inter alia, on the day-to-day behaviour of managers.Interest in the impact of ethical codes and mission statements on managerial behaviour has grown in recent years. The assumption underlying this paper is that one way of enriching our understanding of the (...) ethical behaviour of managers is to focus on actual behaviour in real organisations. (shrink)

Organizations are faced with the question, not only whether to adopt an ethics program, but also which components to adopt when. This study shows that unethical behavior occurs less frequently in organizations that have an ethics program than in organizations that do not have an ethics program. Nine components of ethics programs were identified and examined. The results show that there is a direct relationship between the number of components adopted and the frequency of observed unethical behavior. No relationship was (...) found between pre-employment screening and unethical behavior, while the strongest relationship was discerned between accountability policies and unethical behavior. The study further reveals that the best sequence for adopting components of an ethics program is a code of ethics, ethics training and communication, accountability policies, monitoring and auditing, and investigation and correction policies—all of which are directly related to less unethical behavior—followed by an ethics office, ethics report line, and incentive policies—all of which are indirectly related to less unethical behavior. With the exception of pre-employment screening, this sequence corresponds closely to the pattern of adoption of organizations in the U.S. (shrink)

One of the main objectives of an ethics program is to improve the ethical culture of an organization. To date, empirical research treats at least one of these concepts as a one-dimensional construct. This paper demonstrates that by conceptualizing both constructs as multi-dimensional, a more in-depth understanding of the relationship between the two concepts can be achieved. Through the employment of the Corporate Ethical Virtues Model, eight dimensions of ethical culture are distinguished. Nine components of an ethics program are identified. (...) To assess the relationship between ethics programs and ethical culture, a survey was conducted of 4,056 members of the U. S. working population. The results show that the relationships between the components of an ethics program and the dimensions of ethical culture differ in strength, nature, and significance. Implications for research and practice are discussed. (shrink)

While a corporate ethics program is expected to reduce employees’ unethical behavior, understanding the effects of the ethics program elements on reducing the unethical behavior is a crucial issue. This study aims to explore how a corporate ethics program with multiple control elements, including punishment, monitoring, internal reporting, code of ethics, ethics support service and ethics training, influence employees’ threat appraisal process, coping appraisal process and unethical behavior at workplaces. The data to verify proposed research hypotheses were collected by administering (...) questionnaire survey on four autonomous government organizations in Bangladesh. Research findings show that only punishment and monitoring have significantly negative relationships with unethical behavior. Monitoring and internal reporting have significantly positive relationships with threat appraisal. The code of ethics, ethics support service and ethics training are associated positively with coping appraisal. The mediation results reveal that coping appraisal mediates the relationship between ethics program elements and unethical behavior; but the mediation effects of threat appraisal are not significant. This study provides valuable insights into how a corporate ethics program with multiple control elements reduces employees’ unethical behavior as well as how employees’ threat and coping appraisal processes are related to the corporate ethics program and unethical behavior in organizations. (shrink)

Due to the economic globalization which is characterized with business scandals, scholars and practitioners are increasingly engaged with the implementation of codes of ethics as a regulatory mechanism for stimulating ethical behaviours within an organization. The aim of this study is to examine various organizational practices regarding the effective implementation of codes of ethics within construction contracting companies. Views on ethics management in construction organizations together with the recommendations for improvement were gleaned through 19 semi-structured interviews, involving construction practitioners from (...) various construction companies in Hong Kong. The findings suggested some practices for effective implementation of codes of ethics in order to diffuse ethical behaviours in an organizational setting which include; introduction of effective reward schemes, arrangement of ethics training for employees, and leadership responsiveness to reported wrongdoings. Since most of the construction companies in Hong Kong have codes of ethics, emphasis is made on the practical implementation of codes within the organizations. Hence, implications were drawn from the recommended measures to guide construction companies and policy makers. (shrink)

This paper investigates the regulation of ethical behavior of professionals. Ethical perceptions of South African professionals operating in the business community (specifically accountants, lawyers and engineers) concerning their need for and awareness of professional codes, and the frequency and acceptability of peer contravention of such codes were sought. The existence of conflict between corporate codes and professional codes was also investigated. Results, based on 217 replies, indicated that the professionals believe that codes are necessary and are relatively aware of the (...) contents of such codes. Despite these ethical tendencies, respondents (particularly lawyers) believe that their peers contravene their professional codes relatively often. No significant differences in ethical tendencies between professionals consulting to and those working in business were found. Many respondents were regulated by more than one code of ethics, but few experienced conflict between such codes. In the events of conflict occurring professionals chose to adhere to their professional code above others. (shrink)

This article evaluates effectiveness and costs of external regulation, in particular the Sarbanes-Oxley Act of 2002 (SOX) in restricting managerial malfeasance and safeguarding shareholder interests. It discusses the role of managerial ethics as an alternative corporate governance mechanism to protect shareholder value. This article builds a mathematical model to illustrate shareholders' choices of best corporate governance mechanisms, taking into account the influence of managerial ethics, effectiveness and costs of monitoring. We suggest that the best corporate governance design and the optimal (...) monitoring expenses are influenced by managerial types, monitoring efficiency, and effectiveness of ethics education. We conclude that stringent regulation and monitoring may not always enhance shareholder value. When managerial ethics could be improved by ethics education or social norms, ethics education may be a better alternative than stringent regulation. (shrink)

Despite the increasing inclusion of ethics and compliance issues in corporate training, the business world remains rife with breaches of responsible management conduct. This situation indicates a knowledge–practice gap among professionals, i.e., a discrepancy between their knowledge of responsible management principles and their behavior in day-to-day business life. With this in mind, this paper addresses the formative, developmental question of how companies’ ethics and compliance training programs should be organized in a manner that enhances their potential to be effective. Drawing (...) on both the qualitative analysis of existing ethics and compliance training and the conceptual literature on behavioral ethics, a framework is proposed that consecutively aligns various types of training into a comprehensive ethics and compliance training program. The strengths and limitations of the suggested framework are discussed. (shrink)

This paper based on the distinction between the instrumental and normative views of stakeholder management explores how business education and personal moral philosophies may influence the orientation adopted by an individual. A mediated regression analysis using survey information collected from 206 Spanish university students showed that those exposed to management theories were less willing to consider stakeholders when making business decisions if the consequent economic impacts on the firm were omitted. The results also provided support for a negative effect of (...) business education on idealism and a mediating effect of the latter on the relationship between education and stakeholder management orientation. This study thus raises awareness on the influence of business education on individuals’ ethical decision-making processes and suggests some possible changes for business education. (shrink)

Business and Society Review, Volume 127, Issue 1, Page 69-96, Spring 2022.

The authors review the empirical literature in order to assess which variables are postulated as influencing ethical beliefs and decision making. The variables are divided into those unique to the individual decision maker and those considered situational in nature. Variables related to an individual decision maker examined in this review are nationality, religion, sex, age, education, employment, and personality. Situation specific variables examined in this review are referent groups, rewards and sanctions, codes of conduct, type of ethical conflict, organization effects, (...) industry, and business competitiveness. The review identifies the variables that have been empirically tested in an effort to uncover what is known and what we need to know about the variables that are hypothesized as determinants of ethical decision behavior. (shrink)

In today's complex business world, the question of business ethics is increasingly gaining importance as managers and employees face numerous ethical dilemmas in their jobs. The ethical climate in the Turkish business environment is also at a critical stage, and the business community as a whole is troubled by ethical problems. This study attempts to determine the effect of individual, managerial and organizational factors on the ethical judgments of Turkish managers, and to evaluate the ethical perceptions of these managers. The (...) findings of this study reveal that the ethics score, the measure of ethical judgment, of Turkish managers differs significantly only with respect to gender and that female managers have higher ethics score than male managers. Other individual, managerial and organizational factors considered in this study do not have any significant effect on the ethical judgments of the managers. A comparative analysis between female and male managers in terms of their ranking of the eleven ethical business scenarios, ranking of the sixteen unethical acts, ranking of the factors influencing managers to engage in unethical practices, and ranking of the various parties to whom a company is socially responsible enables the researchers to enlighten the subject of business ethics in Turkey. (shrink)

The role demographic, personality, and situational factors play in the ethical decision making process has received a significant amount of attention (Ford and Richardson, 1994). However, the empirical research on students' decisions to engage in collegiate cheating has not been included in this literature. This paper reviews the last 25 years of empirical research on collegiate cheating. The individual/situational factor typology from Ford and Richardson's review (1994) is used to compare the two literatures. In addition, issues pertaining to the quantification (...) of academic dishonesty, the perception that cheating is increasing, and methodological considerations are addressed in this review. (shrink)

Codes of conduct are a conspicuous feature of modern business organization, but doubts have been raised regarding their efficacy in ensuring high standards of behavior. Although some of the issues involved have been discussed at some length in the business ethics literature, the amount of systematic empirical evidence on the impact of codes is very limited. This paper seeks to make a contribution to that body of knowledge by studying the policies and procedures of a sample of banks which have (...) signed a statement on banking and the environment promulgated by the United Nations Development Programme. Although some differences are found when compared with a sample of banks which did not sign the Statement, they are not extensive. The implications of the findings, for codes of conduct and for future empirical studies, are then discussed. (shrink)