Leadership studies on corporate ethical behavior and practices have grown considerably, contributing significant knowledge on ethical leadership challenges that are organizational and industry focused. However, complex socio-ecological systems are placing pressure on organizational culture and old patterns of leadership behavior that play a role in organizational justice. In this study, we argue that scholars of business ethics must consider the role of organizational justice and use person-organization fit (P–O fit). To address this, our study investigates the mediating effect of organizational (...) justice on the relationship between ethical leadership and employees’ ethical behavior. We also examine the moderating role of P–O fit on the relationship between organizational justice and employee’s ethical behavior. The study survey focused on 295 employees belonging to organizations in Iraq. We show that ethical leadership positively influences employees’ ethical behavior, and this relationship is shaped by organizational justice. The findings reflect the positive impact of organizational justice on ethical behavior, and this relationship is more pronounced in employees with high rather than low P–O fit. This study clarifies the importance of employee’s P–O fit and its impact on organizational processes for creating a positive impact on ethical behavior in the workplace. We also share practical implications of the study and recommend systemic research that explores this area. (shrink)

This study elucidates the link and effect of ethical reinforcement in the post‐financial crisis era by taking two congruent directions to demonstrate that ethical reinforcement can be accomplished by either a continuous ethical training or a meticulous code of business ethics—which members of the mutual fund industry claim they adhere to—as both have a positive effect on the funds’ performance, including sizeable gains to investors. Furthermore, evidence divulges that ethical reinforcement moderates the performance of ethical or socially responsible investments (SRI) (...) funds more than nonethical investments, suggesting that a perspective of ethical or SRI classification of a fund alone is not sufficient, but it is necessary to have the institutional ethical environment and/or managers’ continuous ethical training. This result supports the notion of financial market discipline and reveals some factors behind SRI or ethical funds returns, notably during the period following the recent financial crisis. (shrink)

Transparency is an underpinning of workplace ethics. However, most of the existing research has focused on the relationship between leader transparency and its consequences. Drawing on social and self-regulation theory research, we examine the antecedents of followers’ transparency. Specifically, we propose that followers have higher levels of transparency when they are working with peers who have a high level of transparency. We further suggest that followers’ conscientiousness and agreeableness moderate the relationship between peer transparency and followers’ transparency. Using a time-lagged (...) design, we provide support for the proposed theoretical model. We found that follower conscientiousness substitutes the social regulation effect, while follower agreeableness enhances this social regulation effect. Theoretical and practical implications of these findings are also discussed. (shrink)

After the USSR collapsed, the Russian economy underwent serious changes from being plan-based to a market economy. These changes, together with political instability, created a business environment where no attention was paid to ethics. Russian managers have little experience operating in a market economy, which created many misunderstandings with foreign partners, especially regarding ethical issues of doing business. This study examined the factors influencing the ethical judgments of Russian employees to understand how they perceive ethical issues and make ethical or (...) unethical decisions at work. The Ferrell and Gresham framework was employed in this study to understand the process of making ethical decision by an individual. Transparency was proposed as a moderator of the relationship between opportunity factors and employees’ ethical judgments. Findings of this study show that Russian employees tend to be more tolerant towards ethically questionable behaviors at a workplace. Moreover, the results also demonstrate that transparency moderates the influence of opportunity to behave unethically on ethical judgments. (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)

The relationship between ethical ideology and job stress appears to be complex. This study is based on a model presented by Forsyth (Journal of Personality and Social Psychology 39:175, 1980), showing two dimensions (idealism and relativism) that play an important role in ethical evaluation and behavior. Based on a survey of 561 employees of hotel industry in India, ethical ideologies were found to be negatively associated with job stress. The data were analyzed using Pearson correlations and multiple regressions. The result (...) showed that relativism is negatively correlated with job stress. Further, it has been established that idealism and relativism interacted in such a way that there is a negative relationship between idealism and job stress when relativism is low and positive relationship when relativism is high. The findings imply that ethical ideology adversely influences the job stress in the organization. (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)

Ethical decision-making descriptive theoretical models often conflict with each other and typically lack comprehensiveness. To address this deficiency, a revised EDM model is proposed that consolidates and attempts to bridge together the varying and sometimes directly conflicting propositions and perspectives that have been advanced. To do so, the paper is organized as follows. First, a review of the various theoretical models of EDM is provided. These models can generally be divided into rationalist-based ; and non-rationalist-based. Second, the proposed model, called (...) ‘Integrated Ethical Decision Making,’ is introduced in order to fill the gaps and bridge the current divide in EDM theory. The individual and situational factors as well as the process of the proposed model are then described. Third, the academic and managerial implications of the proposed model are discussed. Finally, the limitations of the proposed model are presented. (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)

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.

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)

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 study explores if managerial dependencies and organizational independence impact ethical behavior of employees. Survey data was collected from 203 employees working for three hospitals in Midwestern and Northwestern United States. Managerial dependencies like specialized expertise, political connections, and performance visibility significantly impacted ethical behavior. Organizational independence and ethical behavior of peers also had a significant impact on ethical behavior. Implications of this study for researchers and practitioners are discussed.

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)

In attempting to improve ethical decision-making in business organizations, researchers have developed models of ethical decision-making processes. Most of these models do not include a role for law in ethical decision-making, or if law is mentioned, it is set as a boundary constraint, exogenous to the decision process. However, many decision models in business ethics are based on cognitive moral development theory, in which the law is thought to be the external referent of individuals at the level of cognitive development (...) that most people have achieved. Other theoretical bases of ethical decision models, social learning, and experientialism, also imply a role for law that is rarely made explicit. Law is a more important aspect of ethical decision-process models than it appears to be in the models. This paper will derive explicit roles for the law from the cognition, experientialism, and social learning theories that are used to build ethical decision-making models for business behavior. (shrink)

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.

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)

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)

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)

The objective of this study is to test the embeddedness of codes of ethics (ECE) in organizations on aggregated data from three countries, namely Australia, Canada and the United States. The properties of four constructs of ECE are described and tested, including surveillance/training, internal communication, external communication and guidance. The data analysis shows that the model has satisfactory fit, validity and reliability. Furthermore, the results are fairly consistent when tested on each of the three samples (i.e. cross‐national validation). This cross‐national (...) study makes a contribution beyond previous descriptive or exploratory studies by using confirmatory factor analysis and structural equation modeling. Nevertheless, a number of limitations are raised, all of which provide opportunities for further research in refining, extending and testing the proposed ECE model in other cultural and corporate settings. (shrink)

This study of internal auditors and auditees, who engage in both financial and operational internal audits in Israel, extends theory and research on internal audits in organizational units. It develops and tests a model that examines the role of top management and internal auditors in facilitating learning from internal audits and driving perceived performance improvement. We argue that support from the top management for the internal audit as well as the auditor’s capacity facilitate learning from audits and help audited units (...) to improve ethicality, efficiency, and effectiveness in organizations. The results of time-lagged survey data provide general support for the hypothesized indirect relationships between auditor capacity, auditor–auditee relational exchanges, learning from audits, and three different perceived performance measures: ethical behavior, efficiency, and effectiveness. We discuss the implications for research on internal audits, proactive learning, ethics, and performance improvement of organizational units in the public sector. (shrink)

Ethics training—an important means to foster ethical decision-making in organisations—is carried out formally as well as informally. There are mixed findings as regards the effectiveness of formal versus informal ethics training. This study is one of its first kinds in which we have investigated the effectiveness of ethics training as it is carried out in the Indian IT sector. We have collected the views of Indian IT industry professionals concerning ethics training, and employed positivist and interpretive research. We first have (...) argued that the importance of the perception towards ethics has bearings not only on the individual ideologies but also on the organisational ethical values. In doing so, first we have conceptualised a theoretical framework: Perception of Ethics Training in Employees and Organisations. Second, we have studied the correlations between various components of this model. Third, we, under the rubric of PETINEO, examined the effectiveness of ethics training programmes for the Indian IT companies. Fourth, we have elaborated upon the results of our study. Our results suggest that the combination of both formal and informal means to undertake ethics training has superior impact on ethical decision-making in the Indian IT industry as compared to the use of any one of them in isolation. (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)

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 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)

To help academic associations in management develop, refine, and implement a code of ethics, we conducted a survey of management educators’ perception of the ethicality of 142 specific behaviors in teaching, research, and service. The results of the survey could be used to inform ethics committees of these associations regarding the level of acceptability of such conduct. The potential value of our study for the Academy of Management or similar management associations lie in our (1) systematically involving the members in (...) building support for the code of ethics, (2) assessing members’ ethical judgments on both cross-sectional and longitudinal bases so as to identify areas needing particular attention in ethical training, (3) providing an extensive list of specific examples of questionable and potentially unethical behaviors so as to make it easier to implement the code, and (4) providing a template survey document for potential use in involving more stakeholder groups in the development of codes of ethics. (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 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)

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)

A business code of ethics is widely regarded as an important instrument to curb unethical behavior in the workplace. However, little is empirically known about the factors that determine the impact of a code on unethical behavior. Besides the existence of a code, this article studies five determining factors: the content of the code, the frequency of communication activities surrounding the code, the quality of the communication activities, and the embedment of the code in the organization by senior management as (...) well as local management. The full model explains 32% of observed unethical behavior while the explanatory value of a code alone is very modest. The study shows when codes are effective, and even when they become counter effective. (shrink)

The purpose of this study is to understand the drivers of social responsibility in purchasing (PSR). This study replicated and extended the range of empirical application of the model developed by Carter and Jennings (Journal of Business Logistics 25(1), 145–186, 2004). Consequently, the present study contributes to the nomological validity of concept of PSR or Purchasing Social Responsibility. The method used is derived from the previous study by Carter and Jennings (Journal of Business Logistics 25(1), 145–186, 2004), and the present (...) study extends the application of that method to an Asian environment. The data were obtained from 197 respondents in Thailand. This sample was largely composed of purchasing and supply chain managers. Respondents were asked to indicate how different dimensions of corporate social responsibility (CSR) affect PSR. The findings of the present study suggest that all the six hypothesized paths have been substantiated. Individual values and people-oriented organizational culture are the most powerful predictors of PSR. This article contributes towards filling the gap in understanding the determinants of PSR in managing supply chains, particularly in an Asian context. (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)

Recent figures reported by KPMG confirm the growing prevalence of corporate codes of ethics globally. Svensson et al. (Bus Ethics 18:389–407, 2009 ) in surveys of the largest corporations in Australia, Canada, and Sweden found a similar trend. The increased prevalence of corporate codes of ethics has been accompanied by heightened research interest in various aspects of these documents, e.g., the contents and focus of the codes. However, there is a paucity of research examining the effectiveness of these documents and (...) the organizational infrastructure that accompany them. This study, based on a survey of Canada’s largest corporations, sought to empirically assess the determinants of the effectiveness of corporate codes of ethics by regressing managers’ perceptions of code effectiveness against various elements of ethics programs. It was found that, in a statistically significant model, eighteen independent variables explain 58.5% of the variance in the perceived effectiveness of corporate codes of ethics. (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)

The objective of this study is to test the embeddedness of codes of ethics (ECE) in organizations on aggregated data from three countries, namely Australia, Canada and the United States. The properties of four constructs of ECE are described and tested, including surveillance/training, internal communication, external communication and guidance. The data analysis shows that the model has satisfactory fit, validity and reliability. Furthermore, the results are fairly consistent when tested on each of the three samples (i.e. cross-national validation). This cross-national (...) study makes a contribution beyond previous descriptive or exploratory studies by using confirmatory factor analysis and structural equation modeling. Nevertheless, a number of limitations are raised, all of which provide opportunities for further research in refining, extending and testing the proposed ECE model in other cultural and corporate settings. (shrink)

Although it is suggested that an important role for codes of ethics is to influence decision making, the little research into the impact of codes of ethics on decisions finds little impact. Insights from information economics help to explain this. If an individual will select the action that a code of ethics indicates to be ethical in the absence of a code, then expressing that position in a code of ethics will have no impact on the action chosen. Even if (...) the individual will select the action that a code of ethics indicates to be unethical in the absence of a code, the presence of a statement in the code of ethics must cause the individual's beliefs to change enough so that he or she changes actions. This can be a fairly high obstacle. Enforcement provisions can increase the likelihood that an individual will select the action that a code of ethics indicates to be ethical. There are limits, however, as to how effective enforcement provisions can be. Therefore, although there may be other important goals for a code of ethics, having an impact on decision making is one that is often difficult to achieve. (shrink)

This paper reports the results of a study of the top 500 private sector organizations and the top 100 public sector organizations in Sweden. It is a replication of the study by Svensson et al . (2004) . The aim of the study was to describe and compare the business ethics commitment of organizations across the two sectors. The empirical findings indicate that the processes involved in business ethics commitment have begun to be recognized and acted upon at an organizational (...) level in Sweden. Some support is provided to show that codes of ethics are developing in some of Sweden's largest private and public sector organizations – although this is happening to a lesser extent in the public sector. It is noted that an effect of a code of ethics on the bottom line of the business was acknowledged by respondents in both private and public sector organizations. We believe that the supporting measures of business ethics commitment appear to be underutilized in both private and public sector organizations in Sweden (among those that possess codes of ethics), thus indicating that the commitment to business ethics in Swedish organizations has potential for future development. (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)

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)

Although the pedagogy literature indicates significant relationships between cheating intentions and both personal and situational factors, no published research has examined the joint effect of personal moral philosophy and perceived moral intensity components on students’ cheating intentions. Hence, a structural equation model that relates magnitude of consequences, relativism, and idealism to willingness to cheat, is developed and tested. Using data from undergraduate business students, the empirical results provide insight into these relationships and evidence of mediation for magnitude of consequences on (...) idealism and students’ cheating intentions. Implications for educators are offered. (shrink)

Scholars and executives have expressed concern over the growing frequency of unethical practices in companies'' conduct of competitive analysis — the process by which a firm gathers, analyzes, and interprets data about its rivals. This article reports the results of an exploratory study of 137 senior executives'' perceptions of unethical competitive analysis practices, their causes, and their potential effect on industries, companies and individuals. The article discusses the implications of the results for developing guidelines to safeguard against ethical violations in (...) competitive analysis. (shrink)

This paper examines the role which organizational context factors play in individual ethical decision making. Two general propositions are set forth, examining the linkage between ethical work climate and decision making. An agenda for research and the potential implications of the study and practice of managerial ethics are then discussed.

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)

Management information system (MIS) professionals have a central role in technology development, determining how technology is used in organizations, and the effects it has on clients and society. MIS stakeholders have expressed concern regarding MIS professional's role in computer crime, and security of electronically stored information. It is recognized that MIS professionals must make decisions based on their professional ethics. The Association for Computing Machinery (ACM) and the Data Processing Management Association (DPMA) have developed codes of ethics to help guide (...) practitioners with ethical professional decision making. In this study, a model was developed from the combined ACM and DPMA codes of ethics and used in the construction of a survey instrument. The survey was conducted using public sector MIS professionals, and findings relative to the influences that codes of ethics, ethical enforcement systems, and membership in professional organizations has on ethical perception were studied. In addition, the influence that ethical obligation to particular constituencies had on respondents' ethical attitudes was also investigated. The study indicated that ethical obligation of public sector MIS professionals is stronger for management and employers than for peers, society, or clients. (shrink)

Following a government campaign run by the Independent Commission Against Corruption (ICAC) in 1994, many Hong Kong companies and trade associations adopted written codes of conduct. The research study reported here examines how and why companies responded, and assesses the impact of code adoption on the moral climate of code adopters. The research involved (a) initial questionnaire surveys to which 184 organisations replied, (b) longitudinal questionnaire-based assessments of moral ethos and conduct in a focal sample of 17 code adopting companies, (...) (c) interviews with 33 managers in the focal companies examining the adoption and impact of the codes, and (d) content analysis of 41 company codes of conduct, including those of most focal companies, plus the ICAC model code.While a mixture of prudential and altruistic reasons were given for code adoption, content analysis suggested that the prime motive was corporate self-defence. The prevailing themes were bribery, conflict of interest, insider information, gambling, moonlighting, accuracy of records and misuse of corporate assets. Wider social responsibility tended to be neglected. Companies appeared to have imposed their codes top-down, emphasising disciplinary procedures rather than ethics training, and appointing neither ethics counsellors nor ombuds-people. The longitudinal study over a seven month period suggested that while moral ethos may have declined, overall standards of perceived conduct had not changed. (shrink)

Ethical decision theory may not be sufficiently well developed to furnish reliable guidelines to people involved in complex decision making that involves conflict between ethical considerations and business imperatives such as making a profit. In conditions of ethical uncertainty hindsight bias may occur, and this study reports on an exploration of hindsight bias effects among participants in continuing education in business programmes. Perceptions of business ethics were found to differ among groups within the sample depending on what they thought had (...) been the outcome of the ethical decision concerned. (shrink)