We advance the thesis that the method of experimental economics can make significant contributions to normative, as opposed to descriptive, business ethics. We contend that there are two basic ways in which experimental economics may make this contribution, and we exemplify these ways by pointing to experimental support of social contract theory as rational foundation for business ethics. These two ways are: (1) adding psychological realism; and (2) testing some quasi-empirical assumptions present in normative theory. In order to make good (...) our methodological claim, we first describe the methodological rules of experimental economics, distinguishing this method from other behavioral business ethics approaches. We also contemplate the possible objection that empirical methods cannot bear on normative ethics because there is no way of bridging the gap between descriptive theory (how people behave) and normative theory (how people ought to behave). (shrink)

ABSTRACT:Business ethics research has long been interested in understanding the conditions under which ethical consumption is consistent versus context-dependent. Extant research suggests that many consumers fail to make consistent ethical consumption decisions and tend to engage in ethical decisions associated with ingroup identity cues. To fill this gap, four experiments examine how construal levels moderate the influence of ingroup versus outgroup identity cues in ethical consumption. The studies support the contention that when consumers use concrete construal to process information, they (...) will focus on ingroup cues and make ethical consumption decisions that are aligned with ingroup biases. However, when consumers use abstract construal, they will act more consistently with their inner goals rather than focusing on ingroup and outgroup cues. Social goodwill, which indicates desires to give back to society, is identified as mediating the effects. The findings have important implications for ethical consumption and social influence literature. (shrink)

In this article, we demonstrate that individuals use motivated reasoning to convince themselves that their self-serving behavior is justified, which in turn affects the distribution of resources in business situations. Specifically, we explore how ambiguous contextual cues and individual beliefs can jointly form motivated reasoning. Across two experimental studies, we find that whereas individual ideologies that endorse status hierarchies can strengthen the relationship between contextual ambiguity and motivated reasoning, individual beliefs rooted in fairness and equality can weaken it. Our findings (...) contribute to person–situation theories of business ethics and provide evidence that two ubiquitous factors in business organizations—contextual ambiguity and social dominance orientation—give rise to motivated reasoning, enabling decision makers to engage in self-serving distributions of resources. (shrink)