This paper reports on the results from two studies that were conducted eight years apart with different respondents. The studies examined the role of the Mere Exposure Effect on ethical tolerance or acceptability of particular business decisions. The results from Study 1 show there is a significant difference in ethical judgment for 12 out of 16 vignettes between those who have been exposed to such situations compared to those who have not been exposed to them. In those 12 situations, those (...) who have been exposed to such situations adopted a more tolerant stance toward the ethically questionable behavior. The results from Study 2 show there is a significant difference in ethical judgment for 9 out of 16 vignettes between those who have been exposed to such situations compared to those who have not been exposed to them. Again, in those nine situations, those who have been exposed to such situations adopted a more tolerant stance toward the ethically questionable behavior. Interestingly, the 9 situations in Study 2 were 9 of the 12 situations found to be significant in Study 1, and in the same direction, suggesting that we have found consistency in our findings and support for the Mere Exposure Effect. Implications are provided for both higher education and practitioners. (shrink)

A growing body of theory has focused on privacy as being contextually defined, where individuals have highly particularized judgments about the appropriateness of what, why, how, and to whom information flows within a specific context. Such a social contract understanding of privacy could produce more practical guidance for organizations and managers who have employees, users, and future customers all with possibly different conceptions of privacy across contexts. However, this theoretical suggestion, while intuitively appealing, has not been empirically examined. This study (...) validates a social contract approach to privacy by examining whether and how privacy norms vary across communities and contractors. The findings from this theoretical examination support the use of contractual business ethics to understand privacy in research and in practice. As predicted, insiders to a community had significantly different understandings of privacy norms as compared to outsiders. In addition, all respondents held different privacy norms across hypothetical contexts, thereby suggesting privacy norms are contextually understood within a particular community of individuals. The findings support two conclusions. First, individuals hold different privacy norms without necessarily having diminished expectations of privacy. Individuals differed on the factors they considered important in calculating privacy expectations, yet all groups had robust privacy expectations across contexts. Second, outsiders have difficulty in understanding the privacy norms of a particular community. For managers and scholars, this renders privacy expectations more difficult to identify at a distance or in deductive research. The findings speak directly to the needs of organizations to manage a diverse set of privacy issues across stakeholder groups. (shrink)

Previous research indicates that ethical ideologies, issue-contingencies, and social context can impact ethical reasoning in different business situations. However, the manner in which these constructs work together to shape different steps of the ethical decision-making process is not always clear. The purpose of this study was to address these issues by exploring the influence of idealism and relativism, perceived moral intensity in a decision-making situation, and social context on the recognition of an ethical issue and ethical intention. Utilizing a sales-based (...) scenario and multiple ethics measures included on a self-report questionnaire, data were collected from a regional sample of business students, most of whom had modest work experience. The results indicated that perceived moral intensity was associated with increased ethical issue recognition and ethical intention. Idealism was also associated with increased ethical issue recognition, and relativism was associated with decreased ethical intention. Social consensus was positively related to ethical issue recognition and intention, while competitive context was inversely related to ethical intention. Finally, ethical issue recognition was associated with increased ethical intention. Idealism, moral intensity, social consensus, and work experience worked together as predictors of ethical issue recognition, whereas recognition of an ethical issue, relativism, moral intensity, social consensus, and competitive context worked together to predict ethical intention. (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)

Although social contracts theory has been applied to organizations (Donaldson & Dunfee, 1994), rarely has the theory been tested empirically. This article uses the traditions of communitarianism and individualism to instantiate an ideal-type economic social contract. We asked 269 subjects to complete the Ideological Orientation Scale and to make judgments on eight downsizing scenarios. Using social judgment theory, we assess the direct and indirect influences of ideology on judgments of fairness. Our findings suggest that ideology indeed shapes individual’s conceptions of (...) organizational fairness. (shrink)

I argue for the role of trust and cooperation as part of the foundation of digital commerce by expanding the reach of the Integrative Social Contract Theory of Donaldson and Dunfee. I propose that a digital business community can be a community in the morally relevant ways that Donaldson and Dunfee describe, and that the basic framework of ISCT can apply to the digital business world similarly to its application in the offline business world. I then analyze the roles of (...) trust and cooperation in e-commerce, showing how they are important to the digital business community and explaining their moral relevance under a digital form of ISCT. I use the ISCT framework to show that trust and cooperation are an instantiation of the hypernorm of necessary social efficiency, and that authentic microsocial norms developed for the ends of trust and cooperation carry moral responsibility. (shrink)

This study explores the direct and interactive effects of individual differences in interpersonal trust and negotiation style on ethical decision-making processes across commonly faced negotiation situations. Individual differences influence basic ideas about legitimate negotiating behaviors, affect behavioral intentions directly, and interact with the favorability of negotiating situations, resulting in direct, indirect, and interactive effects on ethical decision-making processes. Using a sample of 298 participants in executive education workshops, the study analyzes the relationship between interpersonal trust, competitiveness, moral judgment, and behavioral (...) intentions in different negotiating conditions through a series of structural equation models and regression analyses. Our results suggest that individual difference variables exert a significant influence not only on how managers assess the morality of ethically ambiguous negotiation practices but also directly on their behavioral intentions, and that this effect changed across specific negotiation situations. We discuss these results in terms of their usefulness in explaining ethical decision-making processes in negotiations. (shrink)

This paper argues that current accountability mechanisms are inadequate to ensure that straight-commissioned agents meet their fiduciary obligations to their clients. In doing so, using agency theory, it revisits how the straight-commission compensation system creates agents’ dueling loyalties and recommends mechanisms of accountability organizations, agents, and/or clients can recognize and employ to ensure agents’ fiduciary obligations to their clients.

Mounting evidence suggests that socioeconomic status is a determinant of health. As nations around the globe increasingly rely on market-based economies, the corporate sector has come to have a powerful influence on the socioeconomic gradient in most nations and hence upon the health status of their populations. At the same time, it has become more difficult for any one nation to influence corporate activities, given the increasing ease with which corporations relocate their operations from country to country, As a result (...) of all of these factors, nations wishing to assure the health of their populations will need to both involve the corporate sector and cooperate with other nations.In this article, we review the business ethics literature and consider what justification it might provide for requiring multinational corporations to attend to concerns about population health. (shrink)

Research by Reidenbach and Robin (1990) provides a means to study the differential impact of three dimensions of attitude toward ethics: moral equity, relativism, and contractualism. It is hypothesized that moral equity will be the most significant predictor of ethical judgment and intent to act. It is also hypothesized that Machiavellianism and profit will affect relativism and contractualism dimensions, but not moral equity. Additionally, it is hypothesized that Machiavellianism will interact with profit to affect intent to act. Moral equity was (...) found to be the only predictor of ethical judgment, and moral equity and contractualism were predictors of intent to act. Machiavellianism impacted contractualism, but not relativism. Corporate profit did not affect either ethical judgment or intent to act, and did not interact with Machiavellianism. Implications for business ethics education and training are discussed. (shrink)

Lawsuits alleging illegal and unethical insurance sales practices have received widespread publicity in recent years. Although many observers have argued that one source of ethical conflicts for insurance agents is the industry's reliance on straight commission compensation, there remains a paucity of empirical data to support the claim. Therefore, we tested whether different forms of compensation influence insurance agent recommendations of products. We obtained survey responses from 336 insurance agents. Respondents were presented with a composite sketch of a hypothetical client. (...) Following this description, they were asked to identify which one of eight specified life insurance products they would recommend to the client. A between-groups design was employed to manipulate differences in compensation associated with the eight products. Results indicated that neither amount of coverage nor type of coverage (term life versus cash value) recommended was associated with compensation. However, an unanticipated finding was that amount of coverage recommended was significantly higher when the insured was male than when the insured was female. (shrink)

Although prior work on ethical decision-making has examined the direct impact of magnitude of consequences as well as the direct impact of emotions on ethical judgments, the current research examines the interaction of these two constructs. Building on previous research finding disgust to have a varying impact on ethical judgments depending on the specific behavior being evaluated, we investigate how disgust, as well as happiness and sadness, moderates the effect of magnitude of consequences on an individual’s judgments of another person’s (...) unethical behavior. Specifically, we propose and find that because disgust and happiness are both associated with more heuristic-based processing, they both lead to a stronger reliance on the magnitude of consequences when forming ethical judgments. In contrast, because sad and neutral emotional states are associated with more systematic processing, they both result in a weaker reliance on the magnitude of consequences. As such, the effect of magnitude of consequences on judgments of unethical behaviors is stronger when individuals making the judgments are experiencing disgust or happiness versus sadness or a neutral state. This research shows that ethical judgment severity is contingent on individual-level factors, particularly the current emotional state being experienced by the individual, interacting with magnitude of consequences to impact the ethical decision-making process. (shrink)

Abstract:This study tests the usefulness of a person-situation interactionist framework in examining the willingness of a salesperson to lie to get an order. Using a survey of 389 salespersons, our results demonstrate that organizational relationships influence willingness to lie. Specifically, salespersons are less willing to lie to their own company than to their customer, than to a channel partner, and finally, than to a competitor firm. Furthermore, respondents from firms with a clear and positive ethical climate are less willing to (...) lie. Finally, our study finds that interactions between personality factors, such as high Machiavellianism and high self-monitoring, and situational factors have an impact on willingness to lie. Our results suggest that firms can take steps to influence employee ethical behavior. (shrink)