Business codes are a widely used management instrument. Research into the effectiveness of business codes has, however, produced conflicting results. The main reasons for the divergent findings are: varying definitions of key terms; deficiencies in the empirical data and methodologies used; and a lack of theory. In this paper, we propose an integrated research model and suggest directions for future research.

This paper is designed to do three things while discussing the challenge of ethical behavior in organization. First, it discusses some reasons why unethical behavior occurs in organization. Secondly, the paper highlights the importance of organizational culture in establishing an ethical climate within an organization. Finally, the paper presents some suggestions for creating and maintaining an ethically-oriented culture.

This research investigates the efficacy of business ethics intervention, tests a theoretical model that the love of money is directly or indirectly related to propensity to engage in unethical behavior (PUB), and treats college major (business vs. psychology) and gender (male vs. female) as moderators in multi-group analyses. Results suggested that business students who received business ethics intervention significantly changed their conceptions of unethical behavior and reduced their propensity to engage in theft; while psychology students without intervention had no such (...) changes. Therefore, ethics training had some impacts on business students' learning and education (intelligence). For our theoretical model, results of the whole sample (N = 298) revealed that Machiavellianism (measured at Time 1) was a mediator of the relationship between the love of money (measured at Time 1) and unethical behavior (measured at Time 2) (the Love of Money → Machiavellianism → Unethical Behavior). Further, this mediating effect existed for business students (n = 198) but not for psychology students (n = 100), for male students (n = 165) but not for female students (n = 133), and for male business students (n = 128) but not for female business students (n = 70). Moreover, when examined alone, the direct effect (the Love of Money → Unethical Behavior) existed for business students but not for psychology students. We concluded that a short business ethics intervention may have no impact on the issue of virtue (wisdom). (shrink)

Peer reporting is a specific form of whistelblowing in which an individual discloses the wrongdoing of a peer. Previous studies have examined situational variables thought to influence a person's decision to report the wrongdoing of a peer. The present study looked at peer reporting from the individual level. Five hypotheses were developed concerning the relationships between (1) religiosity and ethical ideology, (2) ethical ideology and ethical judgments about peer reporting, and (3) ethical judgments and intentions to report peer wrongdoing.Subjects read (...) a vignette concerning academic cheating, and were asked to respond to a question-naire concerning the vignette. Data were analyzed using structural equation methodology. (shrink)

The institutionalization of ethics is an important task for today's organizations if they are to effectively counteract the increasingly frequent occurrences of blatantly unethical and often illegal behavior within large and often highly respected organizations. This article discusses the importance of institutionalizing organizational ethics and emphasizes the importance of several variables (psychological contract, organizational commitment, and an ethically-oriented culture) to the institutionalization of ethics within any organization.... institutionalizing ethics may sound ponderous, but its meaning is straightforward. It means getting ethics (...) formally and explicitly into daily business life. It means getting ethics into company policy formation at the board and top management levels and through a formal code, getting ethics into all daily decision making and work practices down the line, at all levels of employment. It means grafting a new branch on the corporate decision tree — a branch that reads right/wrong (Purcell and Weber, 1979, p. 6). (shrink)

According to the origin of the word "humanism" and the concept of humanitas where the former comes from, management could be called humanistic when its outlook emphasizes common human needs and is oriented to the development of human virtue, in all its forms, to its fullest extent. A first approach to humanistic management, although quite incomplete, was developed mainly in the middle of the 20th century. It was centered on human motivations. A second approach to humanistic management sprang up in (...) the 80's and centered on organizational culture. This implied a wider approach to the human condition while taking into account the influence of culture on behaviors and decisionmaking, but it is incomplete, too. There is a third approach to humanistic management, which is still emerging, that considers a business enterprise as a real community of persons. That means promoting unity and favoring the acquisition of human virtues. This humanistic management approach is a real challenge in order to achieve a higher moral quality in management, human virtues among people and more efficient organizations. (shrink)

Differences in ethical ideology are thought to influence individuals'' reasoning about moral issues (Forsyth and Nye, 1990; Forsyth, 1992). To date, relatively little research has addressed this proposition in terms of business-related ethical issues. In the present study, four groups, representing four distinct ethical ideologies, were created based on the two dimensions of the Ethical Position Questionnaire (idealism and relativism), as posited by Forsyth (1980). The ethical judgments of individuals regarding several business-related issues varied, depending upon their ethical ideology.

Using a two-part instrument consisting of eight vignettes and twenty character traits, the study sampled 141 employees of a mid-west financial firm regarding their predispositions to prefer utilitarian or formalist forms of ethical reasoning. In contrast with earlier studies, we found that these respondents did not prefer utilitarian reasoning. Several other hypotheses were tested involving the relationship between people's preferences for certain types of solutions to issues and the forms of reasoning they use to arrive at those solutions; the nature (...) of the relationship between utilitarian and formalist categories ; and the possibility of measuring ethical predispositions using different methods. (shrink)

Unethical decision-making behavior within organizations has received increasing attention over the past ten years. As a result, a plethora of studies have examined the relationship between gender and business ethics. However, these studies report conflicting results as to whether or not men and women differ with regards to business ethics. In this article, we propose that gender identity theory [Spence: 1993, Journal of Personality and Social Psychology 64, 624–635], provides both the theory and empirical measures to explore the influence of (...) psychological gender traits and gender-role attitudes on ethical perceptions of workplace behaviors. Statistical analyses of the data reveal that based on sex alone, no differences occur between men and women in their ethical perceptions. Yet, when a multidimensional approach to gender is applied, results show that expressive traits and egalitarian gender-role attitudes contribute to both men’s and women’s propensity to perceive unethical workplace behaviors as unethical. The implications of these findings and suggestions for future research are presented. (shrink)

The inclusion of morally binding values such as religious—or in a broader sense, spiritual—values fundamentally alter organizational decision-making and ethical behavior. Family firms, being a particularly value-driven type of organization, provide ample room for religious beliefs to affect family, business, and individual decisions. The influence that the owning family is able to exert on value formation and preservation in the family business makes religious family firms an incubator for value-driven and faith-led decision-making and behavior. They represent a particularly rich and (...) relevant context to re-assess the relationship between ethical beliefs, decision-making processes and behaviors in business organizations at the interface between family and professional logics. This Special Issue is dedicated to deepening our understanding of the role religious values and spirituality play in the formation of organizational ethical practices in faith-led family firms and resulting organizational and family-related outcomes. In this editorial, we introduce the 10 papers included in this Special Issue, which investigate the relationship between religion or spirituality and family firm ethical behavior in various geographical, cultural and religious contexts, using a multitude of qualitative and quantitative methodologies. By focusing on the effects of religious or spiritual orientations on both the business and the family, as well as on the values, norms and goals present in the family business system, further research can gain a more nuanced understanding of the relationship between religious and spiritual believes, and sustainable ethical behavior in family firms. (shrink)

Following an extensive review of the moral intensity literature, this article reports the findings of two studies (one between-subjects, the other within-subject) that examined the effect of manipulated and perceived moral intensity on ethical judgment. In the between-subjects study participants judged actions taken in manipulated high moral intensity scenarios to be more unethical than the same actions taken in manipulated low moral intensity scenarios. Findings were mixed for the effect of perceived moral intensity. Both probable magnitude of consequences (a factor (...) consisting of magnitude of consequences, probability of effect, and temporal immediacy) and social consensus had a significant effect; proximity did not. In the within-subject study manipulated moral intensity had a significant effect on ethical judgment, but perceived moral intensity did not. Regression of ethical judgment on age, gender, major, and the three perceived moral intensity factors was significant between-subjects, but not within-subject. Ethical judgment was found to be a more robust predictor of intention than perceived moral intensity using a within-subject design. (shrink)

In 1991, Jones developed an issue-contingent model of ethical decision making in which moral intensity is posited to affect the four stages of Rest's 1986 model. Jones claimed that moral intensity, which is "the extent of issue-related moral imperative in a situation", consists of six characteristics: magnitude of consequences, social consensus, probability of effect, temporal immediacy, proximity, and concentration of effect. This article reports the findings of two studies that analyzed the factor structure of moral intensity, operationalized by a 12-item (...) Perceived Moral Intensity Scale adapted from the work of Sing-hapakdi et al. [1996, Journal of Business Research, 36, 245-255] and Frey [2000, Journal of Business Ethics, 26, 181-195]. The two items that were purported to measure CE were dropped due to their inability to effectively tap into the characteristic proposed by Jones. Factor analyses of the remaining 10 items supported a 3-factor structure, with the MC, PE, and TI items loading on the first factor, the PX items loading on the second factor, and the SC items loading on the third factor. These factors were labeled: Probable Magnitude of Consequences, Proximity, and Social Consensus. The authors conclude that moral intensity consists of three characteristics, rather than the six posited by Jones. (shrink)

To contribute to the continuing challenge of explaining how managers identify stakeholders and assess their salience, in this article, we chronicle the history, assess the impact, and evaluate the possibilities opened by Mitchell, Agle, and Wood (MAW-1997). We do so through two types of qualitative analysis, and also through utilizing a quantitative network analysis tool. The first qualitative analysis categorizes the major contributions of the most influential papers succeeding MAW-1997; the second identifies and compares the relevant issues with MAW-1997 at (...) the time of initial publication and today. We apply main path analysis, a quantitative tool, to map how this scholarly domain has evolved. These three analyses robustly depict the impact of MAW-1997 and the ensuing scholarly conversation, and they enable us to illustrate the current state and trajectory of stakeholder identification and salience scholarship. We close by discussing pressing topics related to the broader body of stakeholder theory literature. (shrink)

The present study extends the study of individuals' ethical ideology withinthe context of marketing ethics issues. A national sample of marketing professionals participated. Respondents' ethical ideologies were classified as absolutists, situationists, exceptionists, or subjectivists using the Ethical Position Questionnaire (Forsyth, 1980). Respondents then answered questions about three ethically ambiguous situations common to marketing and sales. The results indicated that marketers' ethical judgments about the situations differed based on their ethical ideology, with absolutists rating the actions as most unethical. The findings (...) are consistent with those of two earlier studies that utilized samples of business students (Barnett et al., 1994, 1995). The results suggest that personal moral philosophy is an important influence on ethical decision making that should be considered in empirical studies of business ethics. The results also support the utility of the Ethical Position Questionnaire (Forsyth, 1980) as a means for researchers and practitioners to assess individuals' ethical ideology. (shrink)

Abstract:This study examined the relationship between the individual difference variables of personal moral philosophy, locus of control, Machiavellianism, and just world beliefs and ethical judgments and behavioral intentions. A sample of 602 marketing practitioners participated in the study. Structural equation modeling was used to test hypothesized relationships. The results either fully or partially supported hypothesized direct effects for idealism, relativism, and Machiavellianism. Findings also suggested that Machiavellianism mediated the relationship between individual difference variables and ethical judgments/behavioral intentions.

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)

While information technologies present organizations with opportunities to become more competitive, unsettled social norms and lagging legislation guiding the use of these technologies present organizations and individuals with ethical dilemmas. This paper presents two studies investigating the relationship between intellectual property and privacy attitudes, Machiavellianism and Ethical Ideology, and working in R&D and computer literacy in the form of programming experience. In Study 1, Machiavellians believed it was more acceptable to ignore the intellectual property and privacy rights of others. Programmers (...) and R&D workers considered violating intellectual property rights more acceptable. Programmers did not consider violating privacy rights more acceptable, but R&D workers did. Finally, there was an interaction between Machiavellianism, programming and R&D. Machiavellians who also had programming experience or worked in R&D found violations of intellectual property much more acceptable. The effect of Machiavellianism on attitudes toward violations of privacy was enhanced by working in R&D, but not by programming experience. In Study 2, idealists believed it was less acceptable to ignore the intellectual property and privacy rights of others. Relativists found it more acceptable to violate intellectual property rights, though they did not consider it more acceptable to violate privacy rights. Those with programming experience were more accepting of intellectual property rights violations, but not of privacy violations. Finally, programming experience moderated the relationship between idealism, relativism and attitudes toward these unethical information practices. Implications for diminishing unethical behavior among Machiavellians, Relativists, programmers and those in R&D are discussed. (shrink)

Efforts to institutionalize ethics in corporations have been discussed without first addressing the desirability of norm conformity or the possibility that the means used to elicit conformity will be coercive. This article presents a theoretical context, grounded in models of social control, within which ethics initiatives may be evaluated. Ethics initiatives are discussed in relation to variables that already exert control in the workplace, such as environmental controls, organizational controls, and personal controls.

This study empirically examined the effects of ethical leadership and ethical climate on employee ethical behavior in the international port context using survey data collected from 128 respondents who worked in Taiwan International Ports Corporation in Taiwan. Research hypotheses were formulated from the previous literature and tested using structural equation modeling. Results indicated that ethical leadership had a significant impact on ethical climate and the ethical behavior of TIPC employees. Ethical climate was found to be positively associated with employee ethical (...) behavior. The theoretical and practical implications of the research findings are discussed. (shrink)

This study investigates current linkages between ethical theory and management behavior. The vignettes used in this investigation represent ethical dilemmas in the areas of coercion and control, conflict of interest, physical environment, and personal integrity. The results indicate that even with the heightened state of ethical awareness that has evolved in recent years the link between ethical philosophy and management behavior remains basically the same as it was in the mid 1980s. Specifically, practitioners still rely almost totally on the utilitarian (...) ethical philosophy when making business decisions. (shrink)

The stock market crash of 1987 had a profound effect on corporate Australia and the Australian community in general. The fall-out revealed that some of our most respected business figures had not been as ethical, or even as lawful, as we would have hoped. This impropriety produced in Australia an awakening to business ethics. Whilst many companies endeavoured to introduce ethical practices into their corporations, they perceived ethics as a way of minimising damage to the corporation and in some cases (...) as a means of competitive advantage. What was lost was the reason that one should embark on business ethics; and that is to make the society and corporate Australia a more ethical place in which to exist.This paper proposes a model based on 2 factors: commitment and partnerships, as a means of enabling corporate Australia to refocus attention on the main purpose of being inherently ethical in all that we do. This ethical model requires a commitment to partnerships with all stakeholders both internal and external in an attempt to enhance the level of ethical business practices that are contemplated and pursued within corporate Australia. Whilst the research agenda and the information collected is Australian-based, it is hoped that the ideas contained within this paper will have a wider appeal to corporations in similar cultural settings. (shrink)

The rash of high-profile accounting frauds involving internal corporate accountants calls into question the individual accountant’s perceptions of the ethical climate within their organization and the limits to which these professionals will tolerate unethical behavior and/or accept it as the norm. This study uses social cognitive theory to examine the antecedents of individual corporate accountant’s perceived personal fit with their organization’s ethical climate and empirically tests how these factors impact organizational attitudes. A survey was completed by 203 corporate accountants to (...) assess their perception of relevant variables. The results of the structural equation model indicate three significant antecedents relating to ethical climate fit: higher internal levels of locus of control; greater numbers of prior job changes; and higher perceptions of an increasingly better fit with the firm’s ethical climate. Our results also indicate that higher levels of perceived fit to the ethical climate of a firm are associated with higher levels of perceived job satisfaction and organizational commitment. We also theorize that perceptions of an organization’s ethical climate may be reflections of client narcissism and serve a potential indicator of fraud risk. This is an important topic of study, since current auditing standards call for auditors to examine organizational attitudes toward fraud, but offer minimal guidance in doing so. (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)

Purpose Digital transformation leverages digital technologies to change current processes and introduce new processes in any organisation’s business model, customer/user experience and operational processes. Artificial intelligence plays a significant role in achieving DT. As DT is touching each sphere of humanity, AI led DT is raising many fundamental questions. These questions raise concerns for the systems deployed, how they should behave, what risks they carry, the monitoring and evaluation control we have in hand, etc. These issues call for the need (...) to integrate ethics in AI led DT. The purpose of this study is to develop an “AI led ethical digital transformation framework”. Design/methodology/approach Based on the literature survey, various existing business ethics decision-making models were synthesised. The authors mapped essential characteristics such as intensity and the individual, organisational and opportunity factors of ethics models with the proposed AI led ethical DT. The DT framework is evaluated using a thematic analysis of 23 expert interviews with relevant AI ethics personas from industry and society. The qualitative data of the interviews and opinion data has been analysed using MAXQDA software. Findings The authors have explored how AI can drive the ethical DT framework and have identified the core constituents of developing an AI led ethical DT framework. Backed by established ethical theories, the paper presents how DT pillars are related and sequenced to ethical factors. This research provides the potential to examine theoretically sequenced ethical factors with practical DT pillars. Originality/value The study establishes deduced and induced ethical value codes based on thematic analysis to develop guidelines for the pursuit of ethical DT. The authors identify four unique induced themes, namely, corporate social responsibility, perceived value, standard benchmarking and learning willingness. The comprehensive findings of this research, supported by a robust theoretical background, have substantial implications for academic research and corporate applicability. The proposed AI led ethical DT framework is unique and can be used for integrated social, technological and economic ethical research. (shrink)

The influence of stakeholders, organisational commitment, personal values, goals of the organisation and socio-demographic characteristics of individuals on the ethical dimension of behavioural intentions of employees in various organisations are investigated. The research results show that employees working for the public sector or in educational institutions take more ethical aspects into account than employees working in the "private" sector. The influence of stakeholders and organisational commitment do not significantly affect the ethical behaviour of employees, and only some personal values and (...) goals of the organisation have a significant influence on ethical behaviour. The most significant explanatory factor of ethical decision making seems to be what may be called "stage in the career of the employee": "ethical" employees can be described as young, with a relatively low income, limited work experience and a low level of responsibility in the company. (shrink)

In this article, we analyzed the effect of various factors on moral judgment and ethical attitudes of working persons. It was found that the effect of various socio-demographic factors on ethical attitudes varied between the two different categories of ethical issues under study, issues which involve explicit violation of laws vis-à-vis issues which involved social concerns. Our results did not support the implication of Callahan’s hypothesis that males are more sensitive to rule-based ethical issues while women are to issues involving (...) social concerns; it was found that females have a lower acceptability of unethical behaviors related to both categories of issues in Hong Kong, whereas gender effect was not statistically significant in Mainland China. University education also had no significant effect on ethical attitudes. Religion played an important role in affecting ethical attitudes, however, its effect varied with different types of religions; Christianity was found to be most favorable to higher ethical standards, but people of traditional Chinese religion had a higher acceptability of unethical behaviors involving social concerns compared to people with no religion. Our finding also indicated that employees in state-owned enterprises, private employees, employees in foreign-investment firms, and employers in Mainland China all had a higher acceptability of unethical law-breaking behaviors compared to workers in collectives, throwing doubt on the validity of convergence theory in Mainland China. (shrink)

Despite a strong sensitization to the corruption problem and a large body of interdisciplinary research, scientists have only rarely investigated which motivational, volitional, emotional, and cognitive components make decision makers in companies act corruptly. Thus, we examined how their interrelation leads to corruption by proposing an action model. We tested the model using a business simulation game with students as participants. Results of the PLS structural equation modeling showed that both an attitude and subjective norm favoring corruption led to a (...) desire to act corruptly. Given high perceived behavioral control, this desire was transformed into an intention that finally resulted in corrupt action. Components related to general private and professional goals did not allow for any prediction. Based on these results, we discuss preventative measures and methods for combating intra- and inter-organizational corruption. (shrink)

This article takes a novel approach to explaining the causes of unethical behavior in organizations. Instead of explaining the unethical behavior of employees in terms of their bad organization, this article examines how a good organization can lead to employees’ unethical behavior. The main idea is that the more ethical an organization becomes, the higher, in some respects, is the likelihood of unethical behavior. This is due to four threatening forces that become stronger when an organization becomes more ethical. These (...) forces are the upward, downward, backward, and forward forces. Each of these forces is illustrated with two effects and each effect is explained by a specific theory. The effects are the effects of the gold digger, high-jump bar, retreating-cat, forbidden-fruit, cheese slicer, moving-spotlight, repeat-prescription, and keeping-up appearances. This paradox of ethics, when goodness breeds badness, opens new research directions. (shrink)

The purpose of this study is to identify the elements that can be implemented to achieve an ethical infrastructure, in small and medium enterprises. The ethical infrastructure is considered as a set of formal and informal systems, leadership, climate and culture, related to ethical issues. The research was carried out through interviews and focus groups with managers from 28 companies in Madrid, all signatories to the Global Compact. The identified key elements in SMEs are leadership, informal managerial and formal communication. (...) This study also explores different factors that influence the effectiveness, implementation, and sustainability of the ethical infrastructure in SMEs, discovering some factors that can act as both accelerators and barriers such as pressure from customers. Additional findings regarding the concepts of ethics and corporate social responsibility in SMEs, dilemmas and characteristics of the culture and climate are also presented. (shrink)

The ethical behavior prevalent in an organization often determines business success or failure. Much research in the business context has scrutinized ethical behavior, but there are still few insights into its roots; this study furthers this line of inquiry. In line with identity work theory, we examine how employees’ identification with a family business shapes internal ethical decision-making processes. Because it is individuals who engage in decision-making—be it ethical or not—our research perspective centers on the individual level. We followed an (...) inductive, qualitative approach and conducted interviews with 19 employees in seven family businesses. We found that individuals engage in identity work when they identify as individual family firm employees and when they identify with the perceived characteristics of the family firm. These processes of identification, in turn, influence how employees cope with ethical situations. Our findings contribute to ethics and family business research, as well as to identity theory. (shrink)

Abstract:This paper develops a framework for examining decision making about ethical issues and tests the applicability of a social contract perspective. Using two separate samples of students and salespeople, we determine that community members (salespeople) tend to judge a potentially unethical act to constitute a violation of an implicit social contract and non-community members (students) do not. Also, consistent with the emphasis on context specificity of integrative social contracts theory, situational variables influence perceptions of ethicality for the community members, but (...) do not affect the perceptions of individuals outside the community. The study finds considerable support for the use of a social contractarian perspective in the study of decision-making processes about ethical issues. (shrink)

Research in the field of management has increasingly focused on strategies and tools related to corporate sustainability. Of the tools examined, codes of ethics have been found to play a primary role. Many studies have investigated the content of such codes, as well as their capacity to condition the behaviour of people within organizations. However, few studies have considered the intrinsic quality of codes of ethics. This study aims to investigate the impact that specific factors—firm size, degree of internationalization and (...) industry effect—can have on the quality of codes of ethics. Based on a sample of 248 listed Italian companies, the results of the empirical analysis show that the quality standard is particularly high in larger companies and in those firms operating in industries in which relationships established with critical stakeholders—and disclosure to those stakeholders—play a crucial role. These results have interesting implications for both researchers and practitioners. (shrink)

This paper is aimed at investigating the differences in ethical perception between Mainland China and Hong Kong through qualitative analysis. The level of idealism and relativism of the informants are measured quantitatively. The qualitative analysis of the viewpoints of participants from Hong Kong and other Chinese cities offers a profound understanding of ethical perception. Contradicting previous studies, our research offers a fresh perspective, indicating that those with high idealism are not always the ones who condemn misconduct or advocate for whistle-blowing. (...) Interestingly, we noted that individuals with high relativism frequently consider and emphasize alternative perspectives, rather than merely condemning or advocating misconduct and whistle-blowing. Conversely, those with low relativism frequently exhibit more anger, regardless of their stance. This discovery suggests that high relativism could be beneficial for facilitating communication between conflicting parties. (shrink)

This study develops and tests an integrated model that explains how Schwartz’s higher order personal values of Openness to Change, Conservation, Self-Transcendence and Self-Enhancement influence the ethical behavior of accountants. The study further explores the influence of ethics training, gender and religiosity on ethical behavior. A survey instrument was administered to 252 accounting students and the findings reveal that some of the higher order personal values are significant in explaining the ethical behavior of accounting students. The findings also reveal that (...) gender and ethical training influence ethical behavior, and that effect of the personal value Self-Transcendence differs depending on participant gender and also religiosity. The implications of the findings are discussed. (shrink)

This research investigates the impact of various factors on ethical behavior of 180 not-for-profit hospital employees. Ethical behavior of peers, ethical behavior of successful managers, and emotional intelligence had a significant positive impact on ethical behavior of respondents. Physicians and hospital employees with political connections within the organization were significantly less ethical than other employees. The results have many implications for researchers and healthcare practitioners.

Our soft survey reveals that the assumption underlying much of the business ethics literature -- that the conduct of business can and ought to support the social good -- is not accepted within the workplace. This paper considers an apparent dichotomy, with companies investing in ethical programs whose worth their employees and managers question. We examine the relationship between work, bureaucracy and "the market" and conclude that employees often question the existence of business ethics because there is no good and (...) bad between which to choose. The choice is between success and failure. A common view of success and the "good life" is one determined by hard work in a well-organised company operating in a free market. Analysing the three aspects of this view (the free market, hard work, bureaucracy) we suggest these are mere fictions. A major problem we identify in business is that organisations are designed as profit making mechanisms and have no interest in the good of society. The challenge is to convince such organisations that a direct benefit accrues to them through their own ethical behaviour. In order to do this organisations must first be shown the importance of long termism. Executives, managers and other employees can be expected to attain high ethical standards only when they feel they are a integral part of an organisation and the organisation itself respects those standards. One of the keys to unravelling the undesirable situation of a perceived absence of ethics in business is in encouraging a greater identity community, company and workforce. We provide some examples of ways companies can meet the challenge of encouraging more ethical, long-sighted behaviour. In addition, we highlight ways in which the expectations of the organisations of the organisation can be communicated more strongly through corporate structures that foster ethical action that benefits the long term interests of the individual and the organisation. Overall implementing a successful ethical program is shown to parallel that of the implementation of a quality program. (shrink)

This paper reports the results of a survey completed by 565 human resource professionals in the Canadian provinces of Alberta and Saskatchewan. The major result suggests that individuals who are more dependent on their employing organizations are more likely to comply with organizational pressures to behave unethically. Factor analysis of our dependent measure of ethical organizational behavior suggested that two distinct constructs were being tapped; furthermore, different variables were found to predict each. The potential for conceptualizing unethical organizational behavior as (...) multidimensional is discussed. (shrink)

How leaders and managers respond to not knowing is highly relevant given the complex, ambiguous, and chaotic business environment of the twenty-first century. Drawing on the literature from a variety of disciplines, the paper explores the dominant, unfavorable conceptualization of not knowing. The authors present some potential ethical implications of a negative view of not knowing and suggest how organizations would benefit from identifying any unhelpful aspects of the culture that may encourage unethical, undesirable, and/or hasty actions in situations of (...) not knowing. The paper specifically illustrates how patience, courage, honesty, integrity, and humility are integral to negative capability in the contexts of not knowing. Finally, the paper calls for deeper inquiry into the role of virtue ethics in preparing managers and leaders for not knowing and urges organizations to embrace negative capability in not knowing rather than engaging in damaging delusion. (shrink)

The current linkages between ethical theory and management behavior are investigated in the wake of the much-publicized convictions of Enron executives. The vignettes used in this investigation represent ethical dilemmas in the areas of coercion and control, conflict of interest, physical environment, and personal integrity. Since 2003, and after the successful prosecution of Enron executives, the link between ethical philosophy and management behavior has shifted somewhat dramatically. There has been a significant change in the rational basis for managerial decision making. (...) In 2003, even after the Enron scandal was publicized, practitioners still relied heavily on both act and rule utilitarian ethical philosophies when making business decisions. Currently, the majority of respondents are likely to select ethically appropriate actions based on either rule utilitarian or rights rationales. It appears that ethical behavior is now more in line with ethical rhetoric, which may positively impact the ethical climate of business decision making. Apparently, business scandals of the past did not really impact actual ethical behavior much, but the high-profile prosecutions, convictions, and jail sentences may have impressed on managers that now is the time to incorporate ethics into business decisions. (shrink)

This paper reports the results of a survey of ethical attitudes, values, and propensities in public sector employees in Australia. It was expected that demographic variables, personal values, and contextual variables at the individual level, and group- and organisational-level values would predict use of formal codes of ethics and ethical tolerance (tolerance of unethical behaviour). Useable data were received from 500 respondents selected at random across public sector organisations in a single Australian state. Results supported the study hypotheses, but indicated (...) that different mechanisms underlie each of the criterion variables. Use of ethical codes was determined primarily on the basis of a perception that others use the code, while ethical tolerance was determined by personal values. At an applied level, the research highlights the need for orgasnizations to establish a critical mass of code users, so that this operates as a normative influence on others in the organization. (shrink)

The literature states that both situational and individual factors contribute to corrupt behavior. This study investigates the influence of rarely empirically investigated situational factors - the size of the bribe, time pressure, and the degree of abstractness of the business code - on the Model of Corrupt Action that describes the subjective decision making process of corrupt actors. To test the effects, I used an experimental simulation design. Only few effects were found. Thus, my results show a certain robustness of (...) corrupt behavior against the examined situational influences. Based on these results, I discuss implications for the prevention of corruption in organizations. (shrink)

Trust within a secular or organizational context is much like the concept of faith within a religious framework. The purpose of this article is to identify parallels between trust and faith, particularly from the individual perspective of the person who perceives a duty owed to him or her. Betrayal is often a subjectively derived construct based upon each individual's subjective mediating lens. We analyze the nature of trust and betrayal and offer insights that a wise believer might use in understanding (...) his or her relationship with the divine. We suggest that the parallels between trust and faith involve a willingness to relinquish one's power or control in the expectant hope that our needs will be met. Betrayal, however, is often profoundly misunderstood. (shrink)

Ethical attitudes and behaviour are complex. This complexity extends to the influencers operating at different levels both outside and within the organisation, and in different combinations for different individuals. There is hence a growing need to understand the proximal and distal influencers of ethical attitudes, and how these operate in concert at the individual, organisational, and societal levels. Few studies have attempted to combine these main research streams and systematically examine their combined impact. The minority of studies that have taken (...) a combined approach have often done so using conventional statistical and analytical techniques which imply linearity between variables—a situation that rarely exists in business settings and is likely to lead to simplistic or even erroneous conclusions. Applying a fuzzy-set qualitative comparative analysis approach, this paper reports on the mutual and simultaneous influence of individual demographic factors, as well as proximal and distal factors stemming from within and outside the work environment to understand individuals’ ethical views within the workplace. The multiple configurations that emerged reveal the complex nature of influencers of ethical attitudes, and reinforce the view that “one size does not fit all”. We discuss these implications together with managerial recommendations and future research directions. (shrink)

This paper investigates whether accounting professionals’ ethical judgment is influenced by the disciplinary system established by the accounting profession in France and the United States. Our study first attempts to determine whether there is a link between the EJ of accounting professionals and the disciplinary context, in each country. It then performs a comparative analysis of the two nations. Our findings indicate that the judgment of American accounting professionals is correlated with the disciplinary decisions of the accountancy board. By contrast, (...) the judgment of French accounting professionals is independent of the disciplinary context. Whereas cross-national studies have thus far attributed differences among nations mainly to cultural distance, current research shows that non-cultural national factors should also be considered. In line with this perspective, our study suggests that institutional factors, in particular the disciplinary system, may also account for the differences between French and American accounting professionals’ ethical perceptions. We support these results by highlighting some characteristics of the countries’ respective legal systems, which may explain the divergences observed. We conclude by identifying implications for the independence of accounting professionals’ EJ and the risks associated with dissuasive disciplinary systems. (shrink)

This paper seeks to explore the implementation of corporate ethical culture and policies as an adjunct to formal forms of corporate governance. The insurance industry utilises a variety of external governance structures, but is almost unique in that stock companies (which are exposed to an external market for corporate control) and mutual companies (which are owned by a subset of their customers) are in active competition. A questionnaire survey of senior executives in U.K. insurance companies was undertaken to explore the (...) implementation of ethical policies and codes, to investigate ethical attitudes, and to analyze the extent to which these policies and attitudes varied among companies. The results suggest that ethical policies have a higher profile and ethical attitudes and behaviour are more positive in mutual as opposed to stock insurance companies. These findings support the contention that a strong corporate ethical culture may be utilised to enhance formal corporate governance instruments. (shrink)

There is a need for further research to understand how social capital in the workplace can be promoted. This article studies the generation of social capital from a comprehensive perspective that integrates ethics and general management. We propose the concept of “ethical work context” as an influential antecedent of the social capital in the firm. The ethical work context, which is aligned with the “humanizing culture” approach proposed by Melé ( Journal of Business Ethics 45 (1), 3–14, 2003a ), allows (...) a broader comprehension of the concrete management practices and organizational dynamics that generate organizational social capital. It is argued that social capital, understood as a by-product of the ethical work context, results both from organizational design and ongoing managerial activity. Creating an ethical work context brings ethics and social capital into the realm of the general manager; a figure that has remained absent from the social capital literature. (shrink)