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This paper develops a typology of moral problems in business. The cross-classification of two fundamental dimensions of ethical conduct: judgment and motivation, is employed to distinguish four types of moral problems: genuine dilemmas, compliance problems, moral laxity, and no-problem problems. Actual cases are brought to illustrate each type of problem, and corresponding coping strategies are presented. The paper highlights the need to design a dynamic strategy that will take into account the relationships among different types of ethical problems. In its (...) |
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The ‘Guiding Principles on Business and Human Rights’ (Principles) that provide guidance for the implementation of the United Nations’ ‘Protect, Respect and Remedy’ framework (Framework) will probably succeed in making human rights matters more customary in corporate management procedures. They are likely to contribute to higher levels of accountability and awareness within corporations in respect of the negative impact of business activities on human rights. However, we identify tensions between the idea that the respect of human rights is a perfect (...) |
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Putting measures in place to prevent wrongdoing in organizations is important, but detecting and correcting wrongdoing are also vital. Employees who detect wrongdoing should, therefore, be encouraged to respond in a manner that supports corrective action. This article examines the influence of the ethical culture of organizations on employee responses to observed wrongdoing. Different dimensions of ethical culture are related to different types of intended responses. The findings show that several dimensions of ethical culture were negatively related to intended inaction (...) |
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The objective of this paper is to develop and describe a construct of the ethos of the corporate codes of ethics (i.e. an ECCE construct) across three countries, namely Australia, Canada and Sweden. The introduced construct is rather unique as it is based on a cross-cultural sample seldom seen in the literature. While the outcome of statistical analyses indicated a satisfactory factor solution and acceptable estimates of reliability measures, some research limitations have been stressed. They provide a foundation for further (...) |
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The moral reasoning capacity of managementstudents in Fiji and in Singapore, twoculturally distinct nations, was examinedusing the Defining Issue Test (DIT). Statistical analyses of the data revealed amarked difference in the reasoning capacity of thetwo groups. In the Fiji sample, religion andrace were found to have a moderating effect onmoral judgment. In the Singapore sample, age,race and religion were found to have asignificant correlation with moral judgment. The data were subjected to paired-samplest-tests using p-score as a dependent variable. The results (...) |
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What sort of connection is there between business ethics and philosophy? The answer given here: a weak one, but it may be getting stronger. Comparatively few business ethics articles are structurally dependent on mainstream academic philosophy or on such sub-specialities thereof as normative ethics, moral theory, and social and political philosophy. Examining articles recently published in the Journal of Business Ethics that declare some dependence, the author finds that such declarations often constitute only a pro forma gesture which could be (...) |
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Prior works in institutional theory are characterized by an assumption that the legal basis for authority of regulatory agencies is sufficient to ensure compliance by business organizations. From a business ethics standpoint, this would imply that regulatory oversight can hinder organizations’ pursuit of questionable business practices. However, the evidence for regulatory efficacy is far from clear as questionable business practices tend to persist despite regulatory monitoring. Drawing on the case of the regulatory failure to trigger a shift away from aggressive (...) |
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Business codes are a widely used management instrument. Research into the effectiveness of business codes has, however, produced conflicting results. The main reasons for the divergent findings are: varying definitions of key terms; deficiencies in the empirical data and methodologies used; and a lack of theory. In this paper, we propose an integrated research model and suggest directions for future research. |
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ABSTRACT:U.S. Organizational Sentencing Guidelines provide firms with incentives to develop formal ethics programs to promote ethical organizational cultures and thereby decrease corporate offenses. Yet critics argue such programs are cosmetic. Here we studied bank employees before and after the introduction of formal ethics training—an important component of formal ethics programs—to examine the effects of training on ethical organizational culture. Two years after a single training session, we find sustained, positive effects on indicators of an ethical organizational culture (observed unethical behavior, (...) |
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Although Business Ethics has become a topic of wide discussion in both academia and the corporate world, questions remain as how to present ethical issues in a manner that will effectively influence the decisions and behavior of business employees. In this paper we argue that the Federal Sentencing Guidelines (FSG) offer a unique opportunity for bridging the gap between the theory and practice of business ethics. We first explain what the FSG are and how they apply to organizations. We then (...) |
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Theories of business ethics or corporate responsibility tend to focus on justifying obligations that go above and beyond what is required by law. This article examines the curious fact that most business ethics scholars use concepts, principles, and normative methods for identifying and justifying these beyond-compliance obligations that are very different from the ones that are used to set the levels of regulations themselves. Its modest proposal—a plea for a research agenda, really—is that we could reduce this normative asymmetry by (...) |
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This study surveys the internal audit department of a large financial services organization. Respondents were challenged to recognize and evaluate ethical and unethical situations often encountered in practice. Four key demographic variables were investigated: gender, age, years of employment and peer group influence. For the most part, respondents view themselves as more ethical than their peers. There does appear to be a gender effect suggesting females' ability to identify ethical behavior better than their male counterparts. This study contributes to the (...) |
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The ethics of organizations has received much attention in recent years. This raises the question of whether the ethics of organizations has also improved. In 1999, 2004, and 2008, a survey was conducted of 12,196 U.S. managers and employees. The results show that the ethical culture of organizations improved in the period between 1999 and 2004. Between 2004 and 2008 unethical behavior and its consequences declined and the scope of ethics programs expanded while ethical culture showed no significant improvement during (...) |
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The astonishing growth of the Internet coupled with its unique capabilities has captured the attention of the marketing community. Although many businesses are acknowledging the importance of a Web site, to date, little attention has been given to the business community'sperceptions of the ethicality of this new medium. A national sample of marketing executives was surveyed regarding their perceptions of: (1) regulation of the Internet, (2) the potential ethical issues via Internet marketing facing their industry, and (3) the role of (...) |
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Abstract We use a controlled laboratory experiment design to test rational choice theory on student whistleblowing. We examine reporting costs by comparing actual reporting behavior under anonymous and non-anonymous reporting channels. Reporting benefits are explored by considering the influence on reporting of group versus individual reward systems. We find that the type of reporting channel does not significantly influence student reporting behavior. Rewarding students based on group test scores results in significantly higher reporting rates compared to a system rewarding students (...) |
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Examining intrapersonal factors theorized to influence ethics reporting decisions, the relation of self-efficacy as a predictor of propensity for internal whistleblowing is investigated within a US and Canadian multi-regional context. Over 900 professionals from a total of nine regions in Canada and the US participated. Self-efficacy was found to influence participant reported propensity for internal whistleblowing consistently in both the US and Canada. Seasoned participants with greater management and work experience demonstrated higher levels of self-efficacy while gender was also found (...) |
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The governance of nanotechnology seeks to limit its risks, without constraining opportunities. The literature on the effectiveness of approaches to governance has neglected approaches that impact directly on the behavior of a researcher. We analyze the effectiveness of legal regulations versus regulation via self-commitment. Then, we refine this model by analyzing competition and autonomy as key contingency factors. In the first step, qualitative interviews with nanotechnology researchers are conducted to reflect this model. In the second step, its empirical relevance is (...) |
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Education in the responsible conduct of research (RCR) in the United States has evolved over the past decade from targeting trainees to including educational efforts aimed at faculty and staff. In addition RCR education has become more focused as federal agencies have moved to recommend specific content and to mandate education in certain areas. RCR education has therefore become a research-compliance issue necessitating the development of policies and the commitment of resources to develop or expand systems for educating faculty and (...) |
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Large organisations are especially advised to consider the possibility of an Ethics Helpdesk in which all employees and managers can report with all suspected cases of unethical conduct, critical comments, dilemmas and advice for which there is insufficient room within the organisational hierarchy. A helpdesk is a central contact point where it is decided who the most appropriate person is to dealing with a given case. The helpdesk model is characterised by low barriers in its easy accessibility, positive approach and (...) |
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Abstract:The literature contains many recommendations, both explicit and implicit, that suggest how an ethics program ought to be designed. While we recognize the contributions of these works, we also note that these recommendations are typically based on either social scientific theory or data and as a result they tend to discount the moral aspects of ethics programs. To contrast and complement these approaches, we refer to a theory of the right to identify the characteristics of an effective ethics program. We (...) |
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Occupational fraud frequently involves the direct or indirect participation of professional accountants. To reduce fraud, companies often focus on the incentive/pressure and opportunity legs of the fraud triangle, perhaps believing that rationalization is beyond their control. We argue that rationalization reduction is necessary to minimize occupational fraud. We propose that educators and PA consider incorporating fences as controls to reduce rationalization. Because they focus on compliance and risk avoidance and are non-negotiable, fences appeal to accountant’s Myers Briggs personalities and conventional (...) |
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ABSTRACT:U.S. Organizational Sentencing Guidelines provide firms with incentives to develop formal ethics programs to promote ethical organizational cultures and thereby decrease corporate offenses. Yet critics argue such programs are cosmetic. Here we studied bank employees before and after the introduction of formal ethics training—an important component of formal ethics programs—to examine the effects of training on ethical organizational culture. Two years after a single training session, we find sustained, positive effects on indicators of an ethical organizational culture (observed unethical behavior, (...) |
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Abstract:The literature contains many recommendations, both explicit and implicit, that suggest how an ethics program ought to be designed. While we recognize the contributions of these works, we also note that these recommendations are typically based on either social scientific theory or data and as a result they tend to discount the moral aspects of ethics programs. To contrast and complement these approaches, we refer to a theory of the right to identify the characteristics of an effective ethics program. We (...) |
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Responsibility and accountability of CEOs has been a major ethical concern over the past 10 years. Major ethical dilemmas at Enron, Worldcom, AIG, as well as other well-known organizations have been at least partially blamed on CEO malfeasance. Interviews with Ken Lay, CEO of Enron, after his 2006 fraud convictions provides an opportunity to document his perceived role in the demise of Enron. Possibly no other CEO has had as much impact on the scrutiny and legalization of business ethics as (...) |
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The objective of this paper is to develop and describe a construct of the ethos of the corporate codes of ethics (i.e. an ECCE construct) across three countries, namely Australia, Canada and Sweden. The introduced construct is rather unique as it is based on a cross‐cultural sample seldom seen in the literature. While the outcome of statistical analyses indicated a satisfactory factor solution and acceptable estimates of reliability measures, some research limitations have been stressed. They provide a foundation for further (...) |
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