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)

To date, theory and research on corruption in organizations have primarily focused on its static antecedents. This article focuses on the spread and growth of corruption in organizations. For this purpose, three downward organizational spirals are formulated: the spiral of divergent norms, the spiral of pressure, and the spiral of opportunity. Social Identity Theory is used to explain the mechanisms of each of these spirals. Our dynamic perspective contributes to a greater understanding of the development of corruption in organizations and (...) opens up promising avenues for future research. (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)

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)

The purpose of this present research is to expand upon the foundation that codes of ethics are more useful guides to managers in their behavior and decision-making when managers are more familiar with code content and intentions. We explore whether the impact of code familiarity on code usefulness differs: (a) under varying conditions of turbulence and (b) between persons with relativist versus idealist personal values. Data have been collected from a sample of 1700 executives in member companies of the U.S. (...) Direct Selling Association, and responses were received from 286 (16.8% returned). Perceptions of ethics code familiarity and usefulness decline as business turbulence increases. The decline in familiarity/usefulness was more pronounced for managers with a relativistic ethical orientation. (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)

The construction of causal models for research in business ethics has become fashionable in recent years. This paper explores four recent proposals, comparing and contrasting their views. The primary purpose of this paper is to expose several confusions inherent in such models and to account for these errors in terms of a failure to distinguish between models as theories and models as representing a research tradition. We conclude with a brief set of recommendations for linking two major research traditions in (...) business ethics: empiricism and ethical theory. (shrink)

This study attempts to compare ‘the ethical value positioning’ of students of Business and Management studies from India and Germany. A complete enumerative survey was conducted for management students using the Ethical Positioning Questionnaire of Forsyth. There were 134 respondents from India and 57 from Germany. The objective was to confer the differences in ethical positioning of students of two economically and culturally diverse nations. By the end of the research, it was constituted that both German and Indian students demonstrate (...) a high degree of Idealism and Relativism and can be qualified as situationists. Exploratory analysis of the responses resulted in extraction of four factors : Non-Violence, Individualism, Non-Consequential, and Situational value. Within the analysis, Indian students displayed a higher preference for Individualism compared to their German counterparts. This study contributes to the literature in cross-cultural ethical value positioning of young managers. This study also opens a window for future research in the factors such as educational qualification, closed social groupings, and background of the students. (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)

Unlike many other studies which assumed narcissism to be equivalent to overt narcissism, the purpose of this study is to empirically examine how covert and overt narcissism affect counterproductive work behaviors, a type of unethical behavior that can be discussed by ethical ideology. Furthermore, this research tests whether the relationship between managerial position and CWBs is direct or mediated by narcissism. The population of this study consisted of managers and nonmanagerial employees in 10 relatively small Iranian firms. Questionnaires were used (...) to collect the required data. The results indicated that most of the Iranian managers show both types of narcissistic behaviors specifically overt type, covert narcissism is a stronger predictor of interpersonal and organizational CWBs than overt narcissism, and managerial position does not seem to have a direct effect on CWBs, but has an indirect effect mediated through covert narcissism. (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)