Current organizations are underpinned by utilitarian ethics of Modernity. Pure economic motive driven organizations detach themselves from larger societal interest. Rising number of corporate scandals and intraorganizational income inequalities are breeding similar trends in society at large. Current organizations base their competitive advantage on resources and capabilities which boils down to economic supremacy at all cost whether it is named I/o or RBV of the firm. This theoretical article posits Ethics-based Trust as the main competency and capability for attaining sustained (...) competitive advantage. It in no way condemns utility view of the firms but treats it as a natural yet secondary outcome of genuine ethicality of the firm. Cultivating an ethical culture in the firm through identifying antecedents, organizational practices, and the outcomes where profitability is an automatic but secondary outcome under the supremacy of ethics is detailed in the multilevel model presented in this article. The main call of this article is to posit ethics and morality over and above short-term profits so that organizations fulfill their trustee role for society through enacting socio-humanistic theories within organizations. A brief analysis of the proposed ethical theory of firm is undertaken in light of the “schooling” notion in the contemporary organization theory literature. (shrink)

Ethics training has become a common phenomenon in the training of military professionals at all levels. However, the perceived outcomes of this training remain open. In this article, we analyze the experiences of course participants who were interviewed 6–12 months after they had participated in a train-the-trainer course in military ethics developed by the Faculty of Military Sciences of the Netherlands Defence Academy. Through qualitative inductive analysis, it is shown how participants evaluate the training, how they perceive the development of (...) their moral competence, and how they see the impact of the training on their own training practice. (shrink)

The literature regarding social and environmental sustainability of business focuses primarily on rationales for adopting sustainability strategies and operational practices in support of that goal. In contrast, we examine sustainability from a perspective that has received far less research attention—attitudes that inform managerial decision-making. We develop a conceptual model that identifies six elemental categories of attitudes that can be held independently or aggregated to yield a meta-attitude representing the legitimacy of sustainability. Our model distinguishes among three types of internally held (...) attitudes and externally perceived subjective norms: pragmatic, moral, and cognitive. We propose a refinement of Ajzen's (In: Kuhl J, Beckmann J (eds) Action control: from cognition to behavior, 1985; Organ Behav Hum Decis Process 50:179-211, 1991) Theory of planned behavior (TPB) that incorporates these sub-categories of personal attitudes and subjective norms. Practical implications are discussed including how organizations considering adopting sustainability programs might use the model as a conceptual tool to help achieve and assess program success. (shrink)

Located at the crossroads of the Eastern and Western world, Turkey today is characterized by a demographically versatile and modernizing society as well as a rapidly developing economy. Currently, the country is negotiating its accession to the European Union. This article yields some factual grounding into the ongoing value-related debate concerning Turkey's potential EU-membership. It describes a mixed-methodology study on moral reasoning in Austria and Turkey. In this study, the arguments given by individuals when evaluating ethically problematic situations in business (...) were compared. Although there were major consistencies, a number of differences were found. These differences, however, were not in the substance (categories) of arguments used but in their relative frequency. Overall, our findings suggest that young, well-educated urban individuals from Western Christian and Eastern Islamic countries are highly consistent in their moral reasoning. (shrink)

Located at the crossroads of the Eastern and Western world, Turkey today is characterized by a demographically versatile and modernizing society as well as a rapidly developing economy. Currently, the country is negotiating its accession to the European Union. This article yields some factual grounding into the ongoing value-related debate concerning Turkey's potential EU-membership. It describes a mixed-methodology study on moral reasoning in Austria and Turkey. In this study, the arguments given by individuals when evaluating ethically problematic situations in business (...) were compared. Although there were major consistencies, a number of differences were found. These differences, however, were not in the substance of arguments used but in their relative frequency. Overall, our findings suggest that young, well-educated urban individuals from Western Christian and Eastern Islamic countries are highly consistent in their moral reasoning. (shrink)

Whether the nation of Israel has become a “light unto the nations” in terms of ethical behavior among its business community remains in doubt. To examine the current state of business ethics in Israel, the study examines the following: (1) the extent of business ethics education in Israel; (2) the existence of formal corporate ethics program elements based on an annual survey of over 50 large Israeli corporations conducted over 5 years (2006–2010); and (3) perceptions of the state of business (...) ethics based on interviews conducted with 22 senior Israeli corporate executives. In general, and particularly as a young country, Israel might be considered to have made great improvements in the state of business ethics over the years. In terms of business ethics education, the vast majority of universities and colleges offer at least an elective course in business ethics. In terms of formal business ethics program elements, many large companies now have a code of ethics, and over time continue to add additional elements. Most respondents believed they worked in ethical firms. Despite these developments, however, there appears to be significant room for improvement, particularly in terms of issues like: nepotism/favoritism; discrimination; confidentiality; treatment of customers; advertising; competitive intelligence; whistle-blowing; worker health and safety; and the protection of the environment. When compared with the U.S. or Europe, most believed that Israeli firms and their agents were not as ethical in business. A number of reasons were suggested that might be affecting the state of business ethics in Israel. A series of recommendations were also provided on how firms can better encourage an ethical corporate culture. The paper concludes with its limitations. (shrink)

Intrinsic religiosity drives ethical consumer behavior; however, previous studies regarding this connection are limited solely to a Christian cultural context. This comparative study instead includes Christian Consumers from Germany and Moslem Consumers from Turkey to determine if a specific religious community moderates the connection between intrinsic religiosity and consumer ethics. The results show that Consumers in the Turkish, Moslem subsample, exhibit an even stronger connection between religiosity and ethical consumer behavior than Consumers from the German, Christian subsample.

Three ethics program components, a code of ethics, ethics training initiatives and ethics-oriented performance appraisal content, were examined for their relationship to ethical intent using a sample of 525 employees from the Spanish financial services industry. As expected, all three components contributed to the prediction of ethical intent. Importantly, clusters of employees who reported experiencing distinct combinations of the program components were identified and compared for their level of ethical intent. Employees who perceived all three components to be strongly implemented (...) reported significantly higher levels of ethical intent relative to those who viewed the components as either all weakly implemented or not present. Combinations including training initiatives plus one other element had a similar impact to the fully implemented approach. Contrary to expectations, ethics-oriented performance appraisal content did not relate more strongly to ethical intent than codes of ethics. (shrink)

The objective of this study was to assess whether, and how, the attitudes towards business ethics of former South African business students have changed between the early 1990s and 2010. The study used the Attitudes Toward Business Ethics Questionnaire and applied a comparative analysis between leading business schools in South Africa. The findings of this study found a significant change in attitudes based on a set time frame, with a trend towards stronger opinions on business ethics and espoused values. Eleven (...) factors came out as fundamental, although they were less able to explain the variation in the attitudes than the previous study. A significant change in the rankings of variables was noted and indicated a shift in attitude toward a teleological moral philosophy as well as utilitarian motives. This shows a clear trend towards compliance-based ethics, which can be explained by the proliferation of business legislation and regulation in the wake of recent corporate governance failures and the subsequent global financial crisis. (shrink)

In this study, we examine differences in cheating behaviors in higher education between two countries, namely the United States and the Czech Republic, which differ in many social, cultural and political aspects. We compare a recent (2011) Czech Republic survey of 291 students to that of 268 students in the US (Klein et al., 2007). For all items surveyed, CR students showed a higher propensity to engage in cheating. Additionally, we found more forms of serious cheating present in the Czech (...) sample. In all cases, the differences between the US and Czech samples were statistically significant. (shrink)

With the current globalisation and complexity of today’s business environment, there are increasing concerns on the role of business ethics. Using culture and religion as the determinants, this paper presents a cross-national study of attitudes toward business ethics among three countries: Australia, Singapore and Hong Kong. The results of this paper have shown the attitudes toward business ethics to be significantly different among the three countries. It was also found that respondents who practised their religion tend to consider themselves more (...) ethically minded than those who do not. Additional findings on gender have also revealed significant differences between the males and females for respondents in Singapore and Australia. Males are generally considered more ethical than females across the three countries studied. (shrink)

Managers in Peru, South Africa, and the United States were classified into four groups along Singhapakdi et al. (J Bus Ethics 15:1131–1140, 1996) Perceived Role of Ethics and Social Responsibility (PRESOR) scale. In Peru and the United States, individuals in the ethics and social responsibility first category reported greater satisfaction with organizational performance than did those in the profits first category. Moral capitalists—individuals who report high emphases on both social responsibility and profits—reported the highest satisfaction with performance in the United (...) States. Managers in the United States are more likely than their counterparts in Peru and South Africa to reject the mutual exclusivity of prioritizing social responsibility and profits simultaneously. Directions for future research are outlined. (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)

Ethics education matters! Contrary to some common beliefs that ethical behavior is inborn, this study suggests that education does matter. This paper examines ethics education and its relationship with students’ ethical awareness and moral reasoning. Attitudes Towards Business Ethics Questionnaire and 10 vignettes were deployed as the major measurement instruments. It is hypothesized that students with ethics education will have both a greater ethical awareness and ability to make more ethical decisions. Hypotheses were tested in two undergraduate business courses at (...) a major research university where 707 students were sampled. Results suggest that ethics education improved students’ ethical awareness and moral reasoning. Interestingly, results also seem to show that students’ readiness moderated their learning outcomes. (shrink)

In recent times, international comparative studies on managers’ beliefs regarding ethical/unethical leadership have increased in number. These studies focus on both Eastern and Western countries. However, although these previous studies focused on the effects of national culture, they did not pay sufficient attention to the effects of institutions. Moreover, these studies covered only a few countries. Despite Japan’s strong influence on the world economy, it has not been included in previous studies on ethical leadership. Thus, to reveal unexplored factors—particularly cultural (...) and institutional factors—and to determine the generalizability of previous findings, this study used a qualitative research method to examine Japanese business managers’ beliefs about ethical/unethical leadership. The data revealed the convergence and divergence in beliefs regarding ethical/unethical leadership between managers in Japan and in other countries. The analysis identified mostly the same themes of ethical/unethical leadership as found in other countries albeit with different distributions. In addition, We identified new themes that may be specific to Japan or that were neglected in previous studies. Moreover, this study suggests the necessity of considering each society’s history of business ethics and current ethics-related institutional contexts in ethical/unethical leadership studies. (shrink)

This study examines the impact of culture on regulation and corruption. Our empirical results suggest that cultural values have significant effects on countries’ regulatory policies, levels of corruption, and economic development. Contrary to the conclusions drawn by others, this study shows no significant relationship between the regulatory policies of countries and their perceived levels of corruption. Thus, evidence of the “public choice view” toward entry regulation derived in related studies seems to be at least attenuated.

As more and more multi-national companies expand their operations globally, their responsibilities extend beyond not only the economic motive of profitability but also other social and environmental factors. The objective of this article is to examine the impact of national culture and geographic environment on firms’ corporate social performance (CSP). Empirical tests are based on a global CSP database of companies from 49 countries. Results show that the Hofstede’s cultural dimensions are significantly associated with CSP. In addition, European companies are (...) found to out-perform other regions and countries in CSP. (shrink)

Existing scholarly work on corporate social responsibility frequently emphasizes either normative/ethical claims about social progress or instrumental/strategic claims about corporate effectiveness, yet less often acknowledges the moral conditions of those undertaking CSR within a specific cultural context. In this paper, we draw attention to the social conditions in which CSR takes place and the related ethics of the subjects that must enact it. Our approach is to document the lived experiences of practitioners in Romania, a post-communist society. Drawing from fifty-three (...) depth interviews with both corporate responsibility practitioners, and managers in non-profit organizations who together work on CSR projects, we describe their experiences of the social and organizational environment, the CSR practices that are undertaken in this context, and the intended and unintended consequences of such work. Using Bauman’s theorization of ethics, including adiaphora and moral distancing, and Borţun’s interpretation of Romanianness, we then theorize liquid CSR as an ambivalence between adiaphoric practice and the moral impulse to do good, resulting in both intended and unintended consequences. (shrink)

Even though potential impacts of political and legal environments of business on ethical behavior of firms (EBOF) have been conceptually recognized, not much evidence (i.e., empirical work) has been produced to clarify their role. In this paper, using Bayesian causal maps (BCMs) methodology, relationships between legal and political environments of business and EBOF are investigated. The unique design of our study allows us to analyze these relationships based on the stages of development in 92 countries around the world. The EBOF (...) models structured through BCMs are used to explain how EBOF in a given country group are shaped by how managers perceive political, legislative, and protective environments of business in these countries. The results suggest that irregular payments and bribes are the most influential factors affecting managers’ perceptions of business ethics in relatively more advanced economies, whereas intellectual property protection is the most influential factor affecting managers’ perceptions of business ethics in less-advanced economies. The results also suggest that regardless of where the business is conducted in the world, judicial independence is the driving force behind managers’ perceptions of business ethics. In addition, the results of this study provide further support for scholars who argue that business ethics is likely to vary among countries based on their socio-economic factors. In addition to its managerial implications, the study provides directions for policy makers to improve the ethical conduct of businesses in their respective countries. (shrink)

This study examines perceptions of ethical climate and ethical practices of 118 successful Chinese managers among business students and managen in the Zhejiang province of China. The impact of different ethical climate types on perceived ethical practices of successful managers was also investigated. The "rules'* was the most reported, and '' independence'' was the least reported, among the various climate types. A majority of the respondents perceive successful managers as ethical. In addition, those who believed that their organization had a (...) "rules" climate perceived a strong positive link between success and ethical behavior. None of the other climate types had an impact on the link between success and ethical behavior. (shrink)

A variety of stakeholders including investors, corporate managers, customers, suppliers, employees, researchers, and government policy makers have long been interested in the relationship between the financial performance of a corporation and its commitment to business ethics. As a subject of research, the relations between business ethics and corporate valuation has yet to be thoroughly quantified and investigated. This article is an effort to amend this inadequacy by demonstrating a statistically significant association between ethical commitment and corporate valuation measures. Consistent with (...) anecdotal evidence, we have found a significant association between the ethical commitment of Korean companies and their valuation on the Korean stock market. However, the result reveals that the association between ethical commitment and financial performance is not significantly supported. (shrink)

We examined how the cultural dimension of universalism–particularism influences managers’ attitudes toward relational favoritism. Paradoxically, we found in a survey study that Brazilian and Chinese managers perceived more negative consequences of relational favoritism than did American managers—even though the Brazilians and the Chinese perceived stronger particularistic cultural norms in their countries than Americans did in the United States. We attribute this pattern of results to “cultural reflexivity”—the ability of people from transforming economies to be culturally self-critical during a period of (...) dramatic societal change. This pattern of results also emerged in a scenario study in which we asked these same Brazilian, Chinese, and American participants to assess managerial succession decisions made by a General Manager. We varied the scenarios so that the promoted manager was either a colleague with no pre-existing relation with the GM or a colleague who was a relative, a close friend, from the same town, or from the same school. Consistent with the results of the survey study, we found that perceived cultural norms of particularism were negatively related to perceptions of fairness. In other words, Brazilians and Chinese, even while living in more particularistic cultures, were more harsh in judging relational favoritism. We conclude with a discussion on the implications of these paradoxical relationships. (shrink)

The relationship between gender and ethics has been extensively researched. However, previous studies have assumed that the gender–ethics association is constant; hence, scholars have seldom investigated factors potentially affecting the gender–ethics association. Thus, using managers as the research target, this study examined the relationship between gender and ethics and analyzed the moderating effect of cultural values on the gender–ethics association. The results showed that, compared with female managers, their male counterparts are more willing to justify business-related unethical behaviors such as (...) bribery and tax evasion, and that the gender difference in ethics becomes more pronounced under the cultural dimensions of collectivism, humane orientation, performance orientation, and gender egalitarianism. This study used data obtained through surveying 2,754 managers in 27 nations. (shrink)

This study compares the ethical decision-making processes of Turkish, Thai, and American businesspeople, considering perceived moral intensity (PMI), corporate ethical values (CEV), and perceived importance of ethics (PIE). PMI describes the ethical decision making at the individual level, CEV assesses the influences of the organization’s ethical culture on the decisions of the individual, and PIE reveals what the businesspeople believe about the relationships among business, ethics, and long-run profitability. The survey respondents are professional marketers and businesspeople currently enrolled in or (...) graduated from MBA programs in Turkey (n = 416), Thailand (n = 605), and US (n = 446). The ANOVA results reveal that American businesspeople are more likely to perceive the unethical marketing behaviors as more serious than their counterparts in Turkey and Thailand. American and Turkish organizations are found to have higher CEV than Thai organizations. On the other hand, Thai and American businesspeople perceived ethics to be more important for business success than Turkish businesspeople. The understanding of the differences and similarities in ethical perceptions of the businesspeople from various countries is valuable for a successful and harmonious working together when engaging in global marketing activities. This study is thus believed to be useful for people who plan to invest or manage businesses in these countries, and many of the implications are thought to be valuable in international business arena. (shrink)

Various aspects of the relationship between ethical climate types and organizational commitment have been examined, although a relationship with the concept of bullying, which may be very detrimental to an organization, has not attracted significant attention. This study contributes to the existing research by taking the effects of bullying behaviour into consideration. The aim of this study is to explore the effects of bullying behaviour upon the relationship between ethical climate types and organizational commitment. It will be noted that work-related (...) bullying behaviour significantly mediated the relationship between instrumentality climate and two of the dimensions of organizational commitment. Significant relationships between ethical climate dimensions and organizational commitment can also be detected. By emphasizing a required ethical climate dimension for organizations this study therefore presents in outline a partial strategy to reduce bullying behaviour and to increase organizational commitment. (shrink)

Current research has identified five discrete US negotiation tactics, a traditional one considered to be ethical, and four considered to be ethically questionable. Scholars have independently used culture to explain how the endorsement of these five negotiation tactics varies across nations. They have also independently used interpersonal trust and ethics propensity to explain antecedents of the endorsement of those five negotiation tactics. This research combines all those variables into one model that investigates the influence of horizontal and vertical individualism–collectivism, ethical (...) idealism, and trust propensity on employees’ attitudes toward ethically questionable negotiation tactics in Israel and Kyrgyzstan. A survey questionnaire was translated from English to Hebrew and Kyrgyz, and 615 responses were collected from employees in various industries in the two countries. We empirically confirmed three types of questionable negotiation tactics discovered in previous one-nation studies, namely, pretending, deceiving, and lying. Vertical individualism was found to be positively, and horizontal collectivism was found to be negatively, related to pretending, deceiving, and lying. Ethical idealism was found to be negatively related to the endorsement of the lying tactics, while trust propensity was negatively related to the pretending tactics. Compared with Israel, employees’ endorsement of ethically questionable negotiation tactics was significantly higher in Kyrgyzstan. Contribution to theory and practice is discussed. (shrink)

This study focuses on the differences in the perception of business ethics across two groups of management students from France and Romania (n = 220). Data was collected via the ATBEQ to measure preferences for three business philosophies: Machiavellianism, Social Darwinism, and Moral Objectivism. The results show that Romanian students present more favorable attitudes toward Machiavellianism than French students; whereas, French students valued Social Darwinism and Moral Objectivism more highly. For Machiavellianism and Moral Objectivism the results are consistent with the (...) literature and our hypotheses. However, contrary to our expectations, we find that Social Darwinism is more important in France than Romania. The results indicate that religious practice does not influence preferences for the three business philosophies. In terms of gender differences, women have less favorable attitudes toward Machiavellianism and more favorable attitudes toward Moral Objectivism than men. (shrink)

This study focuses on the differences in the perception of business ethics across two groups of management students from France and Romania (n = 220). Data was collected via the ATBEQ to measure preferences for three business philosophies: Machiavellianism, Social Darwinism, and Moral Objectivism. The results show that Romanian students present more favorable attitudes toward Machiavellianism than French students; whereas, French students valued Social Darwinism and Moral Objectivism more highly. For Machiavellianism and Moral Objectivism the results are consistent with the (...) literature and our hypotheses. However, contrary to our expectations, we find that Social Darwinism is more important in France than Romania. The results indicate that religious practice does not influence preferences for the three business philosophies. In terms of gender differences, women have less favorable attitudes toward Machiavellianism and more favorable attitudes toward Moral Objectivism than men. (shrink)

Academic research studies examining the ethical attitudes and behaviors of salespeople have produced several frameworks that explore the ethical decision-making processes to which salespeople adhere when faced with ethical dilemmas. Past literature enriches our understanding; however, a critical review of the relevant literature suggests that an emotional route to salesperson ethical decision-making has yet to be explored. Given the fact that individuals’ emotional capacities play an important role in decision-making when faced with an ethical dilemma, there is a need for (...) empirical research in this area. We address this issue by outlining and testing an emotion-based model to study the ethical attitudes and behaviors of salespeople in a relational selling context. Building on the cognitive-affective model proposed by Gaudine and Thorne (J Bus Ethics 31:175–187, 2001 ), we outline a framework that incorporates higher order prosocial emotions: capacity for concern and capacity for guilt. We include salesperson’s role clarity within the organization as a moderator to examine person–situation interaction. (shrink)

Based on a questionnaire survey, this study is the first to systematically focus on Mongolian managers' perceptions of BE. As such, this paper (1) examines Mongolian managers' views of BE, (2) compares BE perceptions in Mongolia to those in the USA, Japan and Korea, and (3) identifies differences and similarities between the four national groups. We find that unethical practices exist and are quite common in Mongolia, where nearly half of the respondents have experienced ethical conflicts during their career. These (...) conflicts mostly arose in relation to respondents' superiors and colleagues and were related to fairness or discrimination. The results indicate that in their (un)ethical decision-making, Mongolian mangers are situational, but also place importance on the behaviour of their superiors. Finally, situational questions revealed that unlike respondents from the other three national groups, Mongolian managers do not see a significant difference between their own BE attitudes and those of an average manager. (shrink)