Abstract:The randomized response technique (RRT) is used to study the deceptive behavior of purchasing agents. We test the proposition that purchasing agents’ perceptions of organizational expectations influence their behavior. Results indicate that perceived pressure to perform and ethical ambiguity on the part of the firm are correlated with purchasing agents’ unethical behavior, in the form of acknowledged deception of suppliers.

Many areas of business ethics research are “sensitive.” We provide an empirical assessment of the randomized response techniquewhich provides absolute anonymity to subjects and “legal immunity” to the researcher. Beyond that, RRT techniques provide complete disclosure to subjects, unconditional privacy is maintained, and there is no deception.

In contrast to the recent rise to economic importance of offshore finance centres (OFCs), the topic of taxation has so far created little interest among scholars of corporate social responsibility (CSR). This paper makes two contributions to addressing this lacuna. Applying a range of influential normative theories of ethics, it first offers an ethical evaluation of tax havens. Second, the paper examines what use large firms that are headquartered in two OFCs—Bermuda and the Cayman Islands—make of formal CSR tools. The (...) emerging duplicity in tax havenbased companies professing social responsibility highlights once more the political nature of CSR, where at least some firms and/or industries can successfully limit government power to enact regulation as well as shape the discourse around CSR. The study of CSR in OFC-based firms thus calls into question the usefulness of the often quoted definition of CSR as going beyond the law. (shrink)

The United States Sentencing Commission’s guidelines for the sentencing of organizations found guilty of violating federal laws recently became effective. Dramatically increased penalties are possible under these gudelines, but so too is a substantial reduction in the penalties imposed on organizations that have an effective program in place to prevent and detect violations. This provides corporations with a tremendous new incentive in inaugurate organizational ethics audits both to avoid violations in the first instance and to reduce the penalty imposed in (...) the event that a violation occurs. We argue, however, that there have always been very good reasons for organizations to conduct such audits, which emphasize the identification of the organizational factors that create incentives for unethical behavior. Corporate ethics programs initiated without reference to such factors cannot reasonably be expected to be effective in improving a company’s internal ethical environment. (shrink)

This paper introduces a new conceptual framework for studying moral climate in business firms, offering an alternative to other theoretical models currently in the literature. The framework integrates recent advances in organizational climate theory into a new conceptualization of the moral climate construct that explains how moral climates evolve in organizations and suggests moral climate change.

Empirical studies in business ethics often rely on self-reported data, but this reliance is open to criticism. Responses to questionnaires and interviews may be influenced by the subject's view of what the researcher might want to hear, by a reluctance to talk about sensitive ethical issues, and by imperfect recall. This paper reviews the extent to which published research in business ethics relies on interviews and questionnaires, and then explores the possibilities of using secondary data, such as company documents and (...) newspaper reports, as a source for empirical studies in applied ethics. A specific example is then discussed, describing the source material, the method, the development of the research questions, and the way in which reliability and validity were established. In the example, content analysis was used to examine the extent to which the executive virtue of courage was observed or called for in items published in four international daily newspapers, and to explore the meaning which was attributed to "courage" in the papers. (shrink)

In social science research, survey respondents hesitate to answer sensitive questions. This explains why traditional self-report surveys often suffer from high levels of non-response and dishonest answers. To overcome these problems, an adjusted questioning technique is necessary. This article examines one such adjusted questioning technique: the randomized response technique. However, in order to obtain reliable and valid data, respondents need to understand and trust this technique. Respondents' understanding and trust are assessed in two online variants of the randomized response technique: (...) (a) forced response and (b) unrelated question. Results show that understanding was significantly higher in the forced-response condition. Respondents' trust, however, was low in both conditions. (shrink)

The United States Sentencing Commission’s guidelines for the sentencing of organizations found guilty of violating federal laws recently became effective. Dramatically increased penalties are possible under these gudelines, but so too is a substantial reduction in the penalties imposed on organizations that have an effective program in place to prevent and detect violations. This provides corporations with a tremendous new incentive in inaugurate organizational ethics audits both to avoid violations in the first instance and to reduce the penalty imposed in (...) the event that a violation occurs. We argue, however, that there have always been very good reasons for organizations to conduct such audits, which emphasize the identification of the organizational factors that create incentives for unethical behavior. Corporate ethics programs initiated without reference to such factors cannot reasonably be expected to be effective in improving a company’s internal ethical environment. (shrink)

Student cheating and reporting of that cheating represents one form of organizational wrong-doing and subsequent whistle-blowing, in the context of an academic organization. Previous research has been hampered by a lack of information concerning the validity of survey responses estimating the incidence of organizational wrongdoing and whistle-blowing. An innovative method, the Randomized Response Technique (RRT), was used here to assess the validity of reported incidences of wrongdoing and whistle-blowing. Surprisingly, our findings show that estimates of these incidences did not vary (...) significantly when RRT questionnaire results were compared to those obtained from standard surveys. In fact, a large number of business undergraduates admitted cheating while only a small percentage reported peers'' cheating when they observed it. These results should be sobering for managers and their implications are considered in some detail. (shrink)

This study examines the impact of impression management and overclaiming on self-reported ethical conduct of 174 managers (67 male, 107 female) who worked for a large not-for-profit organization. As anticipated, impression management and overclaiming positively influenced perceived unethical conduct of managers. Female managers were more prone to impression management than male managers. There was no significant difference in perceived unethical conduct or level of overclaiming of male and female managers.

Many areas of business ethics research are “sensitive.” We provide an empirical assessment of the randomized response technique which providesabsoluteanonymity to subjects and “legal immunity” to the researcher. Beyond that, RRT techniques provide complete disclosure to subjects, unconditional privacy is maintained, and there is no deception.

Many areas of business ethics research are “sensitive.” We provide an empirical assessment of the randomized response technique which providesabsoluteanonymity to subjects and “legal immunity” to the researcher. Beyond that, RRT techniques provide complete disclosure to subjects, unconditional privacy is maintained, and there is no deception.

Abstract:The randomized response technique (RRT) is used to study the deceptive behavior of purchasing agents. We test the proposition that purchasing agents’ perceptions of organizational expectations influence their behavior. Results indicate that perceived pressure to perform and ethical ambiguity on the part of the firm are correlated with purchasing agents’ unethical behavior, in the form of acknowledged deception of suppliers.

This paper considers future directions of empirical research in business ethics and presents a series of recommendations. Greater emphasis should be placed on the normative basis of empirical studies, behavior (rather than attitudes) should be established as the key dependent variable, theoretical models of ethical decision making should be tested, and empirical studies need to focus on theory-building. Extensions of methodology and the unit of analysis are proposed together with recommendations concerning the need for replication and validity, and building links (...) to managerial and public policy applications. (shrink)