This paper examines how unethical behavior in the workplace occurs when management places inordinately strong emphasis on goalattainment without a corresponding emphasis on following legitimate procedures. Robert Merton's theory of sodal structure and anomie provides a foundation to discuss this argument. Key factors affecting ethical climates in work organizations are also addressed. Based on this analysis, the paper proposes strategies for developing and changing aspects of organizational culture to reduce anomie, thereby creating work climates which discourage unethical practices and provide (...) employees with mechanisms to resolve ethical conflicts in a constructive way. (shrink)

Reports of ethical violations by upper level managers continue to multiply despite increasing attention being given to ethics by firms and business schools. Much of the analysis of these violations focuses on either these managers'lack of operational principles or their willingness to abandon principles in the face ofcompetitive pressures. Much of the attention by firms and business schools focuses either on the articulation of operational principles (a deontological approach) or on the training of managers to sort their way through subtle (...) ethical dilemmas in the face of competitive pressure (a utilitarian approach). While valuable, these approaches alone are incomplete.This paper suggests that many ethical violations by upper managers are the by-product ofsuccess — not of competitive pressures. Our research suggests that many managers are poorly prepared to deal with success. First, success often allows managers to becomecomplacent and to lose focus, diverting attention to things other than the management of their business. Second, success, whether personal or organizational, often leads toprivileged access to information, people or objects. Third, with success usually comes increasinglyunrestrained control of organizational resources. And fourth, success can inflate a manager's belief in his or her personalability to manipulate outcomes. Even individuals with a highly developed moral sense can be challenged (tempted?) by the opportunities resulting from the convergence of these dynamics. We label the inability to cope with and respond to the by-products of success the Bathsheba Syndrome, based on the account of the good King David (a story familiar in a variety of traditions). Recognition of this phenomenon implies that we change or broaden our approach to the teaching of business ethics. It also implies that organizations must re-evaluate and change structures, procedures, and practices which enhance the likelihood of managers falling victim to the Bathsheba Syndrome. (shrink)

There is a growing need to increase our understanding of ethical decision making in U.S. based organizations. The authors examine the complexity of creating uniform ethical standards even when the meaning of ethical behavior is being debated. The nature of these controversies are considered, and three important dimensions for ethical decision making are discussed: leaders with integrity and a strong sense of social responsibility, organization cultures that foster dialogue and dissent, and organizations that are willing to reflect on and learn (...) from their actions. Leaders with integrity demonstrate consistency between vision and action that promotes trust, regularly concern themselves with developing moral standards, and are proactive agents of change in an increasingly complex world. Organizational cultures that support dialogue suspend judgments and increase their capacity to think together towards new levels of understanding. Ethical concepts evolve in these organizational cultures, and actions are informed and responsible. Organizations that reflect on their actions engage in double loop learning so that the time taken to reflect on the past and present leads to a more judicious and ethical future. In essence, the authors point to organizational guidelines for ethical decision making that lead to an increase in members' capacity to think and act ethically. (shrink)

Management plays an important role in reinforcing ethics in organizations. To support this aim, managers must use incentive and goal programs in ethical ways. This study examines experimentally the potential ethical costs associated with incentive-driven and goal-induced employee behavior from a managerial perspective. In a quasi-experimental setting, 243 MBA students with significant professional work experience evaluated a hypothetical employee’s ethical behavior under incentive pay systems modeled on a business case. In the role of the employee’s manager, participants evaluated the ethicality (...) of the employee’s incentive-driven and goal-induced ethical/unethical behavior and the outcomes of behavior, with consequences that were either favorable or unfavorable to the organization. The results indicated that participants discounted the ethical considerations of incentive-driven and goal-induced behavior when consequences were favorable to the organization. Participants’ morals and outcome orientations were also significantly related to their ethical judgments and intentions to intervene. The implications of these findings for research and practice are discussed. (shrink)

The course in business ethics is required by an increasing number of business programs. Accordingly, it seems appropriate to evaluate the text materials used from the perspective of the business student.Relative to early criticisms, recent texts represent considerable improvements in their use of case materials and in the manner by which they involve the student in decision-making situations. However, there are two distortions present in all of the texts examined. First, they concentrate too heavily on cases of a policy, or (...) general management, nature. The result is an inadequate coverage of the functional areas of the firm in which graduates begin their employment. Second, they concentrate too heavily on manufacturing firms, and thus do not introduce students to the ethical problems found where they are most likely to work, in service firms. (shrink)

The main objective of this study is to assess the state of business ethics in New Zealand organisations. The survey results suggest that top New Zealand companies give low priorities to ethical values. A number of suggestions have been put forward by the respondents to improve the corporate ethical environment. These include commitment of top management, written and published codes of ethics, comprehensive accounting standards and annual reporting and monitoring and an efficient legal and education system.

This study has been designed to investigate whether Corporate Social Responsibility (CSR) orientations have shifted in their priority in response to society's changing expectations. For this sample of U.S.-based multinational chemical subsidiaries, it appears that the top priority continues to be economic responsibilities, followed closely by legal responsibilities. A socially accountable corporation ... must be a thoughtful institution, able to rise above economic interest to anticipate the impact of its actions on all individuals and groups, from shareholders to employees to (...) customers, to fellow-breathers of the air and fellow-sharers of the land. A successful business organization must possess a moral sense as well as an economic sense (Thornton Bradshaw, President of Atlantic Richfield Co. inBusiness and Society: Strategies for the 1980's, 1980, p. xiv). (shrink)