Using information collected from a convenience sample of graduate and undergraduate students affiliated with a Midwestern university in the United States, this study determined the extent to which gender is related to consumers’ moral philosophies and ethical intentions. Multivariate and univariate results indicated that women were more inclined than men to utilize both consequence-based and rule-based moral philosophies in questionable consumption situations. In addition, women placed more importance on an overall moral philosophy than did men, and women had higher intentions (...) to behave ethically. The marketing and practical implications of these findings are discussed, and the limitations of the research are presented along with several suggestions for future inquiry, which could advance current understanding of consumer ethics. (shrink)

The purpose of this work is to elaborate an empirically grounded mathematical model of the magnitude of consequences component of "moral intensity", 366, 1991) that can be used to evaluate different ethical situations. The model is built using the analytical hierarchy process and empirical data from the legal profession. One contribution of our work is that it illustrates how AHP can be applied in the field of ethics. Following a review of the literature, we discuss the development of the model. (...) We then illustrate how the model can be used to rank-order three well-known ethical reasoning cases in terms of the magnitude of consequences. The work concludes with implications for theory, practice, and future research. Specifically we discuss how this work extends the previous work by Collins regarding the nature harm variable. We also discuss the contribution this work makes in the development of ethical scenarios used to test hypotheses in the field of business ethics. Finally, we discuss how the model can be used for after-action review, contribute to organizational learning, train employees in ethical reasoning, and aid in the design and development of decision support systems that support ethical reasoning. (shrink)

A heterogeneous survey sample of for-profit, non-profit and government employees revealed that organizational factors but not personal characteristics were significant antecedents of misconduct and job satisfaction. Formal organizational compliance practices and ethical climate were independent predictors of misconduct, and compliance practices also moderated the relationship between ethical climate and misconduct, as well as between pressure to compromise ethical standards and misconduct. Misconduct was not predicted by level of moral reasoning, age, sex, ethnicity, job status, or size and type of organization. (...) Demographic variables predicted job satisfaction and organizational variables added significant incremental variance. Results suggest the importance of promoting a moral organization through the words and actions of senior managers and supervisors, independent of formal mechanisms such as codes of conduct. (shrink)

In this article, we describe the influence of violations of community standards of fairness on subsequent ethical decision-making and emotions. Across two studies, we manipulated explanations for a common action, and we find that explanations that violate community standards of fairness lead to greater intentions to behave unethically than explanations that are consistent with community standards of fairness. We find that perceptions of justifiability mediate this relationship. We also find that individuals derive significant psychological benefits from engaging in unethical behavior (...) following perceived violations of fairness. (shrink)

We develop a model of ethical decision making that integrates the decision-making process and the content variables considered by individuals facing ethical dilemmas. The process described in the model is drawn from Janis and Mann’s [1977, Decision Making: A Psychological Analysis of Conflict Choice and Commitment (The Free Press, New York)] work describing the decision process in an environment of conflict, choice and commitment. The model is enhanced by the inclusion of content variables derived from the ethics literature. The resulting (...) integrated model aids in understanding the complexity of the decision process used by individuals facing ethical dilemmas and suggests variable interactions that could be field-tested. A better understanding of the process will help managers develop policies that enhance the likelihood of ethical behavior in their organizations. (shrink)

Given the tremendous proliferation of student plagiarism involving the Internet, the purpose of this study is to determine which theory of ethical reasoning students invoke when defending their transgressions: deontology, utilitarianism, rational self-interest, Machiavellianism, cultural relativism, or situational ethics. Understanding which theory of ethical reasoning students employ is critical, as preemptive steps can be taken by faculty to counteract this reasoning and prevent plagiarism. Additionally, it has been demonstrated that unethical behavior in school can lead to unethical behavior in business; (...) therefore, correcting unethical behavior in school can have a positive impact on organizational ethics. To meet this objective, a content analysis was conducted on the written records of students formally charged with plagiarizing at a large West Coast university. Each case was classified according to the primary ethical reasoning that the student used to justify plagiarism. Results indicate that students predominately invoke deontology, situational ethics, and Machiavellianism. Based on these findings, specific recommendations are offered to curb plagiarism. (shrink)

This review summarizes and critiques the empirical ethical decision-making literature from 1996–2003. One hundred and seventy-four articles were published in top business journals during this period. Tables are included that summarize the findings by dependent variable – awareness, judgment, intent, and behavior. We compare this review with past reviews in order to draw conclusions regarding trends in the ethical decision-making literature and to surface directions for future research.

The resolution of ethical dilemmas often requires individuals to search for reasonable justifications to support their choices. Occasionally, such justifications must be made explicit to stakeholders inside or outside the organization. Other times, the justification for a decision will be known only by the decision-maker. In either case, the organizational code of conduct that governs the individual can play a vital role in providing guidelines about appropriate and inappropriate justifications. The present paper discusses the connections between organizational codes and employee (...) justifications. (shrink)

This paper argues that corporate Codes of Ethics lose their ability to further moral responsiveness because of the narrow instrumental purposes that inform their adoption and use. It draws on Jacques Derrida's reading of Emmanuel Levinas to argue that, despite the fact that all philosophical language entails a certain violence, corporate Codes of Ethics could potentially play a more meaningful role in furthering ethical questioning within corporations. The paper argues that Derrida's reading of Levinas' notion of ‘the third’ could precipitate (...) the emergence of a broader sense of ethical responsibility towards multiple others within corporations. Codes may also present the opportunity for corporations to engage in the reconsideration of their own purposes in the light of questions of justice towards multiple others. How these changes in the establishment and use of Codes may be accomplished is explored towards the end of the paper. (shrink)

Scholarship into the empirical relationship between moral intensity (MI) and ethical decision-making (EDM) offers only equivocal empirical results. This ethical decision-making study is the first cumulative review to synthesize and assess over three decades of research into Jones’ (1991) MI construct by investigating the influence of each of the MI characteristics on Rest’s (1986) ethical decision-making stages (EDMS): awareness, judgment, intention, and behavior. After classifying 125 empirical papers according to the effect each moral intensity characteristic has on each EDMS, only (...) two of six MI characteristics (magnitude of consequences and social consensus) were found to have a consistent positive association, three characteristics were observed to have a moderate relationship (temporal immediacy, concentration of effect, and probability of effect), while proximity appears to have only a weak connection with EDM. This research review challenges the current conceptualization of the MI construct on both empirical and theoretical grounds. The analysis concludes with a brief discussion of the managerial implications of the analysis. (shrink)

The aim of this paper is to explore the possibilities for an immanent ethics for business. The paper has three parts. In the first part, I make some general and critical comments about the nature of business ethics. In the second part, I outline the immanent ethics as presented by the French philosopher Gilles Deleuze. Then, I positioning immanent ethics within business, primarily in relation to the terms "best practice" and "best fit." The main claim here is that an immanent (...) ethics encourages a shift from a merely reactive approach toward an active. This shift opens up the field for an affirmative practice that aims at enlarging the discussion within business ethics as such. (shrink)

Salespeople have long been considered unique employees. They tend to work apart from each other and experience little daily contact with supervisors and other organizational employees. Additionally, salespeople interact with customers in an increasingly complex and multifunctional environment. This provides numerous opportunities for unethical behavior which has been chronicled in the popular press as well as academic research. Much of the research in sales ethics has relied on conceptual foundations which focus on individual and organizational influencers on ethical decision making. (...) While significant, contributors to this research suggest that alternative theoretical perspectives and methods of investigation should be utilized and call for more research on the status of professional selling as a whole. We answer this call by exploring an alternative and complementary perspective based on the theory of occupational choice, social learning, and work groups to gain insight on how the sales profession evolves as its own subculture that extends beyond individual and organizational boundaries. First, we discuss the characteristics of the sales profession and empirically examine the relationship between typical individual and organizational factors and sales professionals’ perceptions of ethical behavior. Second, we offer a theoretical explanation that our findings may be due to how salespeople choose and are socialized into the subculture of the sales profession. Third, we examine this theoretical perspective via qualitative in-depth interviews with experienced sales professionals. Results and implications are discussed in terms of a sales profession code of ethics and future research directions. (shrink)

In business ethics, there is a large body of literature focusing on the conditions, factors, and influences in the ethical decision-making processes. This work builds upon the past critical reviews by updating and extending the literature review found in Craft’s :221–259, 2013) study, extending her literature review to include a total of 141 articles. Since past reviews have focused on categorizing results based upon various independent variables, we instead synthesize and look at the trends of these based upon the four (...) ethical decision making categories: Awareness, Behavior, Judgment, and Intention. We focus on the moderation and mediation effects found within these studies and provide an in-depth analysis of future trends. Furthermore, we also highlight key statistical and methodological concerns, outline overarching trends, and directions of future research in empirical ethical decision making. (shrink)

The relationship between mental models and ethical decision making, along with the mechanisms through which mental models affect EDM, are not well understood. Using the sensemaking approach to EDM, we empirically tested the relationship of mental models to EDM. Participants were asked to depict their mental models in response to an ethics case to reveal their understanding of the ethical dilemma, and then provide a response, along with a rationale, to a different ethical problem. Findings indicated that complexity of respondents’ (...) mental models was related to EDM, and that this relationship was mediated by sensemaking processes. The implications of these findings for improving integrity training in organizations, as well as ultimately understanding the role of mental models in EDM, are discussed. (shrink)

This paper explains how middle managers might enlist ethically engaged employees into the production of reliable, sustainable CSR. An accompanying model illustrates how those managers can encounter employee engagement in CSR and channel their enthusiasm effectively. It presents factors scaffolding organizational support for employee engagement and how they relate to the intensity of that engagement. It introduces the importance of employee voice and illustrates how associated signals might be captured.

This study uses a rational ethical decision-making framework to examine the influence of moral intensity (potential harm and social pressure) on whistleblowing intention and behaviour using organisational commitment as a moderator. A scenario was developed, and an online questionnaire was used to conduct an empirical analysis on the responses of 533 participants. The mean age and years of work experience of the respondents were 31 and 8.2 years, respectively. The results show, first, that while moral intensity is correlated with whistleblowing (...) intention, only the potential harm is positively correlated with such intention. Second, potential harm and social pressure differentially affect whistleblower choice of using an internal or external channel. Third, organisational commitment has a moderated mediation effect among moral intensity, whistleblowing intention and behaviour. Fourth, whistleblowers may be grouped into four conceptual types: indifferent, rebel, mature and spoil. Finally, theoretical and managerial implications of the findings are discussed. (shrink)

PurposeThe purpose of this paper is to examine whether, when teaching professional ethics, the educational interventions have any effect on improving students' moral decisions. One method often used to measure change is the well‐established defining issues test – an American test based on Kohlberg's stage theory.Design/methodology/approachUsing this test, two before‐and‐after studies were carried out on cross‐cultural cohorts of first year computing undergraduates which both received the same lectures, debates and moral‐decision‐making exercises.FindingsOne study showed a significant increase in moral judgment whilst (...) the other showed a decrease. Both studies indicated mean scores far below the American averages.Research limitations/implicationsAs both studies involved relatively small sample sizes, the results are indicative rather than conclusive. However, they bring to light issues associated with the test, in both American and non‐American research, indicating that lower than average mean scores could be due to cross‐cultural and situational variations.Practical implicationsThe paper questions the premise of stage theory as a method for measurement within a cross‐cultural context; and the usefulness of measuring one component of moral development in isolation.Originality/valueThe paper proposes that tests based on more discipline‐specific skills, rather than stage theory, would be of greater use in evaluating student levels of moral development. (shrink)

This paper explores the relationship between religious belief and the dilemmas Dutch executives confront in daily business practice. We find that the frequency with which dilemmas arise is directly related to various aspects of religious belief, such as the belief in a transcendental being and the intensity of religious practice. Despite this relationship, only 17% of the dilemmas examined involve a religious standard. Most dilemmas originate from a conflict between moral and practical standards. We also find that 79% of the (...) identified dilemmas stem from a conflict between two or more internalized standards of the executive. (shrink)

The paper focuses on the consumer side of consumption tax evasion (CTE), a subcategory of the shadow economy. The ethical dimensions of tax evasion have been effectively captured by the existent literature on tax morale, yet it fails to address the role consumers can play in CTE. Further, there is a shortage of tax morale studies that explore ethical decision making as a process composed of multiple steps and determinants. To bridge these gaps, we turned to the consumer ethics literature (...) and Jones’ issue-contingent model of ethical decision making. We developed the conceptual model of consumer ethical decision making for CTE by incorporating four key elements from the issue-contingent model, i.e. moral recognition, moral judgement, moral intention and moral intensity, while personal moral philosophies were introduced as an antecedent to the consumer ethical decision-making process. The study was conducted on a sample of consumers from Slovenia, where CTE is a widespread phenomenon. The findings confirm that consumers’ recognition of CTE as a moral issue is influenced by their moral philosophy and perceptions regarding the magnitude of CTE’s consequences, their visibility, probability, and temporal immediacy. These perceptions also play an important role in determining consumers’ moral judgements and intentions regarding CTE. Moreover, through the process of moral recognition and moral judgement, consumers form intentions to participate in, or avoid CTE. The study holds important implications for public policy makers who are trying to reduce the tax gap in times of economic instability and fiscal crisis. (shrink)

Although consumers are increasingly engaged with ethical factors when forming opinions about products and making purchase decisions, recent studies have highlighted significant differences between consumers' intentions to consume ethically, and their actual purchase behaviour. This article contributes to an understanding of this 'Ethical Purchasing Gap' through a review of existing literature, and the inductive analysis of focus group discussions. A model is suggested which includes exogenous variables such as moral maturity and age which have been well covered in the literature, (...) together with further impeding factors identified from the focus group discussions. For some consumers, inertia in purchasing behaviour was such that the decision-making process was devoid of ethical considerations. Several consumers manifested their ethical views through post-purchase dissonance and retrospective feelings of guilt. Others displayed a reluctance to consume ethically due to personal constraints, a perceived negative impact on image or quality, or an outright negation of responsibility. Those who expressed a desire to consume ethically often seemed deterred by cynicism, which caused them to question the impact they, as an individual, could achieve. These findings enhance the understanding of ethical consumption decisions and provide a platform for future research in this area. (shrink)

Across two studies the hypotheses were tested that stressful situations affect both leadership ethical acting and leaders' recognition of ethical dilemmas. In the studies, decision makers recruited from 3 sites of a Swedish multinational civil engineering company provided personal data on stressful situations, made ethical decisions, and answered to stress-outcome questions. Stressful situations were observed to have a greater impact on ethical acting than on the recognition of ethical dilemmas. This was particularly true for situations involving punishment and lack of (...) rewards. The results are important for the Corporate Social Responsibility (CSR) of an organization, especially with regard to the analysis of the Stressors influencing managerial work and its implications for ethical behavior. (shrink)

This review summarizes the research on ethical decision-making from 2004 to 2011. Eighty-four articles were published during this period, resulting in 357 findings. Individual findings are categorized by their application to individual variables, organizational variables, or the concept of moral intensity as developed by Jones :366–395, 1991). Rest’s four-step model for ethical decision-making is used to summarize findings by dependent variable—awareness, intent, judgment, and behavior. A discussion of findings in each category is provided in order to uncover trends in the (...) ethical decision-making literature. A summary of areas of suggested future research is provided. (shrink)

Organizational leaders face environmental challenges and pressures that put them under ethical risk. Navigating this ethical risk is demanding given the dynamics of contemporary organizations. Traditional models of ethical decision-making (EDM) are an inadequate framework for understanding how leaders respond to ethical dilemmas under conditions of uncertainty and equivocality. Sensemaking models more accurately illustrate leader EDM and account for individual, social, and environmental constraints. Using the sensemaking approach as a foundation, previous EDM models are revised and extended to comprise a (...) conceptual model of leader EDM. Moreover, the underlying factors in the model are highlighted—constraints and strategies. Four trainable, compensatory strategies (emotion regulation, self-reflection, forecasting, and information integration) are proposed and described that aid leaders in navigating ethical dilemmas in organizations. Empirical examinations demonstrate that tactical application of the strategies may aid leaders in making sense of complex and ambiguous ethical dilemmas and promote ethical behavior. Compensatory tactics such as these should be central to organizational ethics initiatives at the leader level. (shrink)

Gender is one of the most frequently studied variables within the ethics literature. In prior studies that find gender differences, females consistently report more ethical responses than males. However, prior research also indicates that females are more prone to responding in a socially desirable fashion. Consequently, it is uncertain whether gender differences in ethical decision-making exist because females are more ethical or perhaps because females are more prone to the social desirability response bias. Using a sample of 30 scenarios from (...) prior studies that find gender differences, we examine whether these gender differences remain robust once social desirability is controlled for in the analysis. Our data suggest that the effect of gender on ethical decision-making is largely attenuated once social desirability is included in the analysis. In essence, the social desirability response bias appears to be driving a significant portion of the relationship between gender and ethical decision-making. We discuss several important research implications of this study. (shrink)

This article revisits and further develops Mitchell et al.’s (Acad Manag Rev 22(4):853–886, 1997 ) theory of stakeholder identification and salience. Stakeholder salience holds considerable unrealized potential for understanding how organizations may best manage multiple stakeholder relationships. While the salience framework has been cited numerous times, attempts to develop it further have been relatively limited. We begin by reviewing the key contributions of other researchers. We then identify and seek to resolve three residual weaknesses in Mitchell et al.’s ( 1997 (...) ) framework, thereby strengthening its foundations for further development. We argue, first, that urgency is not relevant for identifying stakeholders; second, that it is primarily the moral legitimacy of the stakeholder’s claim that applies to stakeholder salience; and last, that the salience of stakeholders will vary as the degrees of the attributes vary. These insights inform revised definitions of stakeholder salience and legitimacy, and necessitate a new theoretical underpinning for the role of legitimacy. Finally, we present an extensive agenda for future research with the objective of refueling research in stakeholder salience. (shrink)

We contribute to the study of offshoring and outsourcing by examining how stakeholders' ethical evaluations of these decisions are influenced by both their roles and the issues embedded within the decisions. Although offshoring and outsourcing have been studied from a transactional perspective, the moral issues embedded within these decisions can profoundly affect how the organization is perceived by outside stakeholders. First, we contend that investors use different moral paradigms compared with consumer stakeholders, as a result the stakeholder role an individual (...) occupies significantly influences their ethical evaluation of offshoring and outsourcing decisions. Next, we examine whether embedded issues of product quality and information security increase the moral intensity of offshoring and outsourcing decisions, thereby negatively influencing ethical evaluations. Using vignettes, we find that respondents viewed either offshoring or outsourcing less favorably than relocation. Surprisingly, respondents viewed offshoring with data security risks more negatively than offshore outsourcing with quality risks, suggesting that the issue of information security has a greater moral intensity than the issue of product or service quality for both consumer and investor stakeholders. Thus, we show that that embedded issues play a significant role in stakeholders' ethical judgments of business decisions, such as offshoring and outsourcing. (shrink)

In recent years, we have seen a new concern with ethics training for research and development professionals. Although ethics training has become more common, the effectiveness of the training being provided is open to question. In the present effort, a new ethics training course was developed that stresses the importance of the strategies people apply to make sense of ethical problems. The effectiveness of this training was assessed in a sample of 59 doctoral students working in the biological and social (...) sciences using a pre-post design with follow-up and a series of ethical decision-making measures serving as the outcome variable. Results showed not only that this training led to sizable gains in ethical decision making but also that these gains were maintained over time. The implications of these findings for ethics training in the sciences are discussed. (shrink)

After a brief review of the ethical judgment research, the Potter Box, a four‐step ethical judgment tool used primarily in media ethics, is introduced. The paper proposes that the Potter Box's usefulness for evaluating ethical dilemmas could be improved by re‐sequencing the steps, by incorporating philosophical intuitionism as a mechanism for structuring its inherent pluralism and by adding a post‐decision, pre‐action reflective step. The resulting modified Potter Box has five steps – analyze the situation, identify stakeholders, specify duties, weigh obligations (...) and check for universalizability – and should provide a useful structure for analyzing difficult ethical dilemmas and for creating transparency in the judgment process that accommodates improved discussion. (shrink)

This research explored how (a) information regarding consequences and (b) personal information regarding the potential victim influences perceptions of moral intensity and ethical behavioral intent. An experimental vignette research design was used and 314 professional managers participated. The results of the study indicated that personal information impacted ethical behavioral intent through its influence on perceptions of proximity. In contrast, consequential information''s impact depended on the presence of personal information or prior knowledge. Implications for management and future ethical research are discussed.

We explore two dimensions of situational factors expected to influence decision-making about ethical issues among sales representatives – universal vs. particular and direct vs. indirect. We argue that these distinctions are important theoretically, methodologically, and managerially. We test our hypotheses by means of a survey of 252 sales representatives. Our results confirm that considering universal and particular and direct and indirect situational factors contributes to our understanding of decision-making about ethical issues within a sales context, specifically willingness to engage in (...) an unethical act. We also find that personal factors act independently and interact with situational factors in decision-making about ethical issues. Both demographic factors, age and gender, and personality factors, Machiavellianism and self-monitoring, have main effects on decision-making, and some of these factors interact with situational factors to affect decision-making. For example, age of the decision-maker (younger) and size of commission (larger) interact such that the likelihood of choosing an unethical alternative is greater. (shrink)

Scholars have suggested that the tendency for an individual to perceive him- or herself as more ethical than others might influence the individual''s perceptions of his or her organization''s ethics. The purpose of this study is to consider if and/or when such a relationship exists. A thorough consideration of the nature of perceptions of relative ethicality suggests that a positive self-bias would negatively influence perceptions of organizational ethicality. The results of an empirical study involving working managers and employees of a (...) hospital support that argument. Furthermore, the results indicate that organizational identification, perceived organizational cohesion, and an individual''s insulation also influence individual perceptions of relative organizational ethicality. The findings illuminate this particular phenomenon and further our understanding of the relationship between the individual and the organization, more generally. (shrink)

This paper reports on a study of ethical decision-making in a fair trade company. This can be seen to be a crucial arena for investigation since fair trade firms not only have a specific ethical mission in terms of helping growers out of poverty, but they tend to be perceived as (and are often marketed on the basis of) having an "ethical" image. Eschewing a straightforward test of extant ethical decision models, we adopt Thompson''s proposal for a more contextualist understanding (...) rooted in ethnographic data. Our findings suggest that the fair trade mission of the firm is experienced as an over-riding ethical claim, which is often invoked to justify potentially ethically questionable decisions. Moreover, decision precedents emerge which can mean that the decision process is bypassed or hurried through. Finally we provide evidence that the significance of these precedents, and indeed, even moral intensity itself, could be actively shaped and constructed by organization members to support different, even shifting, conceptions of what is a morally acceptable decision for a fair trade company to make. (shrink)

Based on upper echelon theory, we employ machine learning to explore how CEO characteristics influence corporate violations using a large-scale dataset of listed firms in China for the period 2010–2020. Comparing ten machine learning methods, we find that eXtreme Gradient Boosting (XGBoost) outperforms the other models in predicting corporate violations. An interpretable model combining XGBoost and SHapley Additive exPlanations (SHAP) indicates that CEO characteristics play a central role in predicting corporate violations. Tenure has the strongest predictive power and is negatively (...) associated with corporate violations, followed by marketing experience, education, duality (i.e., simultaneously holding the position of chairperson), and research and development experience. In contrast, shareholdings, age, and pay are positively related to corporate violations. We also analyze violation severity and violation type, confirming the role of tenure in predicting more severe and intentional violations. Overall, our findings contribute to preventing corporate violations, improving corporate governance, and maintaining order in the financial market. (shrink)

The criticality of ethical practices in B2B service delivery is increasingly recognised for its substantial impact on firm performance. However, there remains a gap in understanding how ethicality at managerial and staff levels translates into tangible business outcomes in B2B contexts. This study aims to bridge this gap, focusing on the impact of ethicality on perceived service delivery performance and firm performance, mainly through ethical leadership and climate lenses. The research objectives include unravelling the dynamics between staff-level ethical perceptions and (...) managerial-level ethical practices and their collective impact on service delivery and firm performance. Employing a multilevel data collection and analytical framework, the study collected data from 5500 employees and 110 managers, providing a comprehensive view of ethical influences across different organisational strata. This approach facilitated a nuanced examination of how ethical perceptions and behaviours permeate through the organisational hierarchy. Major findings reveal that individual-level ethical perceptions enhance service delivery through positive citizenship behaviour of the employees and reduced opportunism. A culture of shared ethical values, reinforced by robust ethical leadership and a supportive climate, significantly bolstered firm performance at the organisational level. These insights contribute significantly to B2B theory by elucidating the mechanisms through which ethicality at various levels influences firm outcomes. The study underscores the importance of fostering an ethical culture at the individual level and holistically across the organisation to enhance service delivery and achieve superior firm performance. (shrink)

In the wake of corporate governance scandals, questions arise about the effectiveness and intent of corporate ethical codes: Are they genuine governance mechanisms to enhance corporate responsibility, or are they mere shields against legal risks? This study delves into the linguistic choices within ethical codes, positing that these choices serve as communication devices that articulate a firm’s institutional logic. We use stakeholder theory to differentiate between code language that is governed by instrumental (legal-oriented) or normative (behavior-oriented) logic. Upon analyzing the (...) lexicon of Fortune 500 corporate codes, our findings reveal that behavior-oriented codes are associated with a decrease in the number of environmental, social, and governance (ESG) issues. Yet, they correspond to an increase in class action lawsuits. By contrast, legal-oriented codes are linked to an increase in ESG issues but to reduced legal litigation. Notably, firms that blend approaches from both logics experience lower litigation rates. These findings enrich the discourse on stakeholder theory and provide practical guidance for organizations aiming to refine their ethical codes. This refinement seeks to enhance ethical behavior and mitigate corporate risks. (shrink)

What makes people behave ethically continues to be at the forefront of business ethics research. The stylistic makeup of the decision-maker has been suspected to influence individual ethical behavior; however, this body of research accounts only for a handful of studies. This paper investigates the influence of decision-making styles as an individual difference on unethical behavior, independently from other personal characteristics. Covering a sample of 230 managers, we utilize the preeminent measures of these two constructs in a self-report survey. Our (...) results suggest that the decision-making styles of managers do influence their ethical behavior. Whereas managers with a dominant rational or spontaneous style behave ethically, having a more intuitive or avoidant makes them behave less ethically. The results also reveal that with higher levels of education, managers become more unethical. This research conveys important implications for management practice, education, and training. (shrink)

Drawing on the perspective of causal reasoning and the social cognitive theory of moral thought and action, this study explores the mechanisms underlying the association between exposure to exploitative leadership and employee workplace deviance. The results of a time-lagged survey conducted in China reveal that exposure to exploitative leadership can evoke a moral justification process that leads to increased employee organizational and interpersonal deviance. A tendency toward hostile attribution bias reinforces the direct link between exploitative leadership and moral justification and (...) the indirect effects of exploitative leadership on employee organizational and interpersonal deviance, via moral justification. The theoretical and practical implications of this study are discussed and potential directions for future studies are proposed. (shrink)

Many ethics initiatives have stipulated sets of principles and standards for good technology development in the AI sector. However, several AI ethics researchers have pointed out a lack of practical realization of these principles. Following that, AI ethics underwent a practical turn, but without deviating from the principled approach. This paper proposes a complementary to the principled approach that is based on virtue ethics. It defines four “basic AI virtues”, namely justice, honesty, responsibility and care, all of which represent specific (...) motivational settings that constitute the very precondition for ethical decision making in the AI field. Moreover, it defines two “second-order AI virtues”, prudence and fortitude, that bolster achieving the basic virtues by helping with overcoming bounded ethicality or hidden psychological forces that can impair ethical decision making and that are hitherto disregarded in AI ethics. Lastly, the paper describes measures for successfully cultivating the mentioned virtues in organizations dealing with AI research and development. (shrink)

Physicians try hard to alleviate mental and physical ailments of their patients. Thus, they are heavily burdened by observing ethics and staying well-informed while improving health of their patients. A major ethical concern or dilemma in medication is that some physicians know their behavior is unethical, yet act against their moral compass. This study develops models of theory–practice gap, offering optimal solutions for the gap. These solutions would enhance self-motivation or remove external obstacles to stimulate ethical practices in medicine. The (...) Constructivist Grounded Theory Methodology is applied here where the participants and the main researcher mutually interacted with each other. Data collection was performed through qualitative methods including observation and semi-structured interviews with 21 physicians and medical students. Initial and focused coding was done, from which principal concepts were later extracted. MAXQDA software was used for analyzing data. Analysis of twelve major concepts in the study resulted in two factors and solution groups, from which four general notions influencing the ethical theory and practice gap in medicine were extracted: (1) providing effective education to change attitude and behavior; (2) considering motivational and emotional factors; (3) reconstructing regulations and processes to facilitate ethical practice; (4) conducting comprehensive and systematic studies. The existing medical educational system needs to be reconsidered to add to individual internal motivation, including optimizing persuasion strategies, maximizing participation of students, adhering to virtuous ethical theories, and fostering emotions. Additionally, regulations and processes can be reconstructed to remove practical obstacles and promote ethical practice with insignificant damages to individual self-motivation. (shrink)

This article focuses on the perception of the importance of business ethics among Czech and Slovak entrepreneurs (this includes business owners and managers) within the SME sector. The comparison is based on an analysis of the approach to business ethics according to a set of parameters, namely company size, years in business, and the gender and education of the entrepreneurs. Empirical research was conducted in 2020 on a sample set consisting of 454 respondents in the Czech Republic and 368 respondents (...) in Slovakia. The most important outcome of the research was the finding that business ethics is considered extremely important in both countries. The research results not only revealed that just over 90% of Czech entrepreneurs and 88% of Slovak entrepreneurs within the SME sector agreed that they should take into account the moral and ethical consequences of their decisions, but that the structure of their answers was very similar. Also, of interest were the findings that women were more aware of business ethics than their male counterparts, as were those entrepreneurs who possessed a higher education over those with a secondary education. (shrink)

Various organizational factors reported in the hitherto literature affect individual behaviour within a company. In this paper, we conduct a literature review thereof, and propose a notion of the “Organizational Moral Structure” defined as a comprehensive framework of interrelated organizational factors that condition, incite or influence good or bad moral behaviour of individuals within the organization. Drawing from a wide bibliographical review and our own reflection on recent business scandals, we identify seven constituents of the “Organizational Moral Structure”: 1) leader’s (...) values and character, 2) vision and exercise of power, 3) corporate control systems, 4) internal network of influence, 5) organizational culture, 6) internal and competitive pressures, and 7) external influences. The “Organizational Moral Structure” is proposed as a reflective framework for humanistic management and as an invitation to further research in this field. We provide recommendations on how a manager oriented towards humanistic management can use the OMS to secure and promote well-being and dignity of company’s employees. (shrink)

Whistleblowing is a controversial yet socially significant topic of interest due to its impact on employees, organizations, and society at large. The purpose of this paper is to integrate knowledge of whistleblowing with theoretical advancements in the broader domain of business ethics to propose a novel approach to research and practice engaged in this complex phenomenon. The paper offers a conceptual framework, i.e., the wheel of whistleblowing, that is developed to portray the different features of whistleblowing by applying the whistleblower’s (...) perspective. The framework is based on five “W” questions: Who, What, hoW, Why, and to Whom? The answers to the proposed questions clarify the main aspects of whistleblowing, provide insights into existing studies of the subject, and identify relevant gaps in the literature which, in turn, offer opportunities for future research. (shrink)

The present study aimed to develop effective moral educational interventions based on social psychology by using stories of moral exemplars. We tested whether motivation to engage in voluntary service as a form of moral behavior was better promoted by attainable and relevant exemplars or by unattainable and irrelevant exemplars. First, experiment 1, conducted in a lab, showed that stories of attainable exemplars more effectively promoted voluntary service activity engagement among undergraduate students compared with stories of unattainable exemplars and non-moral stories. (...) Second, experiment 2, a middle school classroom-level experiment with a quasi-experimental design, demonstrated that peer exemplars, who are perceived to be attainable and relevant to students, better promoted service engagement compared with historic figures in moral education classes. (shrink)

There is ample discussion of MBA self-serving values in the corporate social responsibility literature, and yet empirical studies regarding the corporate manifestations and consequences of those values are scant. In a comprehensive study of major US public corporations, we find that MBA CEOs are more apt than their non-MBA counterparts to engage in short-term strategic expedients such as positive earnings management and suppression of R&D, which in turn are followed by compromised firm market valuations.

In a field dominated by research on moral prescription and moral prediction, there is poor understanding of the place of moral perceptions in organizations alongside philosophical ethics and causal models of ethical outcomes. As leadership failures continue to plague organizational health and firms recognize the wide-ranging impact of subjective bias, scholars and practitioners need a renewed frame of reference from which to reconceptualize their current understanding of ethics as perceived in individuals. Based on an assessment and selection perspective from the (...) field of human resource management, an alternative to conventional deductive-prescriptive approaches is proposed based on a pluralistic concept referred to as moral goodness. An inductive-descriptive theory-building framework is constructed based on three interrelated streams of inquiry to yield insight concerning both formal and informal instances of assessment. Recommendations are proposed for the application of the framework to future research and practice. (shrink)

Over the last decade, the increased use of work teams within organizations has been one of the most influential and far-reaching trends to shape the business world. At the same time, corporations have continued to struggle with increased unethical employee behavior. Very little research has been conducted that specifically examines the developmental aspects of employee ethical decision-making in a team environment. This study examines the impact of a team leader’s perceived integrity on his or her subordinates’ behavior. The results, which (...) came from a survey of 245 MBA students functioning for 2 years in a work team environment, indicate an interaction between leader integrity and team member ethical intentions. (shrink)

Marketing researchers have proposed various conceptual models of ethical decision-making to better clarify the steps in the decision-making process. However, lacking in the literature is comprehensive empirical validation of these models. This manuscript examines the ethical decision-making model proposed by␣Ferrell et al. [1989, Journal of Macromarketing56(Fall), 55–64] in the context of a real-world marketing situation. This model is a comprehensive synthesis of previously developed models in the literature. The events surrounding the withdrawal from the market of the pain reliever Vioxx, (...) manufactured by Merck & Co., are detailed. The analysis provides insights into the decision-making process faced by Merck executives and sheds light onto the real-world applicability of the conceptual model. Furthermore, this study demonstrates how potential modifications to existing models can be developed by their examination in the context of real world events. It is hoped that this analysis, along with future examinations, aids marketing researchers in developing a better understanding of the ethical decision-making process in a business context. (shrink)

Although Responsible Conduct of Research training is common in the sciences, the effectiveness of RCR training is open to question. Three key factors appear to be particularly important in ensuring the effectiveness of ethics education programs: educational efforts should be tied to day-to-day practices in the field, educational efforts should provide strategies for working through the ethical problems people are likely to encounter in day-to-day practice, and educational efforts should be embedded in a broader program of on-going career development efforts. (...) This article discusses a complex qualitative approach to RCR training development, based on a sensemaking model, which strives to address the afore-mentioned training concerns. Ethnographic observations and prior RCR training served the purpose of collecting information specific to a multi-disciplinary and multi-university research center with the goal of identifying metacognitive reasoning strategies that would facilitate ethical decision-making. The extensive qualitative analyses resulted in the identification of nine metacognitive reasoning strategies on which future RCR training will be developed. The implications of the findings for RCR training in the sciences are discussed. (shrink)