As multinational firms explore new and promising national markets two of the most crucial elements in the strategic decision regarding market-entry are the level of corruption and existing trade barriers. One form of corruption that is crucially important to firms is the theft of intellectual property. In particular, software piracy has become a hotly debated topic due to the deep costs and vast levels of piracy around the world. The purpose of this paper is to assess how laissez-faire trade policies (...) and corruption affect national software piracy rates. Using invisible hand theory, as well as literature from the fields of international strategy and ethics, formal research hypotheses are posited and tested. Results suggest that corruption mediates the relationship between economic freedom and software piracy. Implications for multinational managers and researchers are also addressed. (shrink)

As software piracy continues to be a threat to the growth of national and global economies, understanding why people continue to use pirated software and learning how to discourage the use of pirated software are urgent and important issues. In addition to applying the theory of planned behavior (TPB) perspective to capture behavioral intention to use pirated software, this paper considers perceived risk as a salient belief influencing attitude and intention toward using pirated software. Four perceived risk components related to (...) the use of pirated software (performance, social, prosecution and psychological risks) have been identified, measured and tested. Data were collected through an online survey of 305 participants. The results indicate that perceived prosecution risk has an impact on intention to use pirated software, and perceived psychological risk is a strong predictor of attitude toward using pirated software. In addition, attitude and perceived behavior control contribute significantly to the intended use of pirated software. However, the proposed direct relationship between subjective norm and intention to use pirated software is not supported. Implications for research and practice are discussed. (shrink)

Consumers of software often face an acquisition-mode decision, namely whether to purchase or pirate that software. In terms of consumer welfare, consumers who pirate software may stand in opposition to those who purchase it. Marketers also face a decision whether to attempt to thwart that piracy or to ignore, if not encourage it as an aid to their software's diffusion, and policymakers face the decision whether to adopt interventionist policies, which are government-centric, or laissez faire policies, which are marketer-centric. Here (...) in order to assess the decision-making of all three of these stakeholders, we focus on the consumer's point-of-view as central and examine it by considering on a comparative basis the ethical dimension versus other dimensions, including economic, legal, and other salient consumer behavior considerations. Based on a survey of 689 software consumers conducted over the Internet, the results indicate that ethics as a factor is embedded in a multidimensional set of determinant factors influencing software piracy, including attitudes, legal aspects, social support, perceptions of economic loss and age. Policy and research implications, based on these findings, are provided. (shrink)

This paper argues that intellectual property rights are incompatible with Rawls’s principles of justice. This conclusion is based upon an analysis of the social stratification that emerges as a result of the patent mechanism which defines a marginalized group and ensure that its members remain alienated from the rights, benefits, and freedoms afforded by the patent product. This stratification is further complicated, so I argue, by the copyright mechanism that restricts and redistributes those rights already distributed by means of the (...) patent mechanism. I argue that the positions of privilege established through both the patent and the copyright mechanisms are positions that do not “allow the most extensive liberty compatible with a like liberty for all.” They do not “benefit the least advantaged.” Nor are they “open to all under conditions of fair equality of opportunity.” In making this argument I critically assess the utilitarian defense of intellectual property rights and find it insufficient to respond to the injustices manifest in our current arrangement for the protection of intellectual property rights. (shrink)

The study reported here sought to examine the ethical orientations of business managers and business students in Singapore. Data were obtained using Defining Issue Test. Analysis of Variance revealed that age, education and religious affiliation had influenced cognitive moral development stages of the respondents. Vocation, gender and ethnicity did not seem to have affected moral judgement of the subjects. Contrary to the general view, both business students and business managers demonstrated the same level of sensitivity to ethical dimensions of decision-making. (...) Implications of the findings and limitations of the study are discussed. (shrink)

The possible relationship between widespread unauthorized copying of microcomputer software (also known as software piracy) and level of moral judgment is examined through analysis of over 350 survey questionnaires that included the Defining Issues Test as a measure of moral development. It is hypothesized that the higher one''s level of moral judgment, the less likely that one will approve of or engage in unauthorized copying. Analysis of the data indicate a high level of tolerance toward unauthorized copying and limited support (...) for the hypothesis. The most plausible explanation for these findings is that software copying is perceived as an issue of low moral intensity. This study calls into question the software industry''s strategy of concentrating exclusively on institutional compliance with copyright rules, rather than working to raise the perceived moral intensity about software piracy at the individual level. As long as the issue remains low in moral intensity, the industry cannot expect significant shifts in copying behaviors. Individuals must become more aware of and concerned about the nature and magnitude of harm to society and to the rightful copyright owners from unauthorized copying before their attitudes and behaviors come to reflect higher levels of moral judgment. (shrink)

In this article, seven strategies for dealing with cross-cultural ethical conflict are described. Conflict situations are classified on the basis of centrality and consensus on the values involved, influence of the decision maker, and urgency. A contingency model suggests appropriate strategies for different situations. The model is applied to representative cases of cross-cultural ethical conflict.

This paper draws on the economics of ethical compliance model to examine the association between ethical reasoning, perceived risk of detection, perceived levels of penalties and Chinese auditors'' ethical behavior in an audit conflict situation. Using 53 Chinese auditors from Shenzen as subjects, and a survey questionnaire, this study found that there is a significant negative association between ethical reasoning and the likelihood of unethical behavior and that this negative association is weaker for auditors who perceive higher risks of detection.

In 1999, the Journal of Business Ethics published its 1 500th article. This article commemorates the journal's quest "to improve the human condition" (Michalos, 1988, p. 1) with a summary and assessment of the first eighteen volumes. The first part provides an overview of JBE, highlighting the journal's growth, types of methodologies published, and the breadth of the field. The second part provides a detailed account of the quantitative research findings. Major research topics include (1) prevalence of ethical behavior, (2) (...) ethical sensitivities, (3) ethics codes and programs, (4) corporate social performance and policies, (5) human resource practices and policies, and (6) professions – accounting, marketing/sales, and finance/strategy. Much remains to be done. (shrink)

This paper provides a framework for the examination of cultural and socioeconomic factors that could impede the acceptance and implementation of a profession's international code of conduct. We apply it to the Guidelines on Ethics for Professional Accountants issued by the International Federation of Accountants (1990). To examine the cultural effects, we use Hofstede's (1980a) four work-related values: power distance, uncertainty avoidance, individualism, and masculinity. The socioeconomic factors are the level of development of the profession and the availability of economic (...) resources. We evaluate the applicability and relevance of the accounting guideline, and discuss the implications for accounting and other professions. (shrink)

Accompanying the explosive growth of information technology is the increasing frequency of antisocial and criminal behavior on the Internet. Online software piracy is one such behavior, and this study approaches the phenomenon through the theoretical framework of neutralization theory. The suitability and applicability of nine techniques of neutralization in determining the act is tested via logistic regression analyses on cross-sectional data collected from a sample of university students in the United States. Generally speaking, neutralization was found to be weakly related (...) to experience with online software piracy; other elements which appear more salient are suggested and discussed in conclusion. (shrink)

This research study sought to identify and categorize international marketing ethical problems that confront business managers in Australia and Canada. The study focused on ten major ethical problems developed from previous exploratory research. Managers from both countries indicate that the most frequently cited ethical problem is "gifts/ favors/entertainment" and the most important ethical problem is "large-scale bribery". However, there exist significant differences in terms of rankings and mean values of frequency and importance ratings for other ethical problems.

Software piracy is an instance of unauthorized duplication of information goods where laws and norms are not agreed-upon. This article presents a content analysis of articles from the five highest circulating U.S. newspapers 1989-2004 as evidence of the prevailing social environment surrounding software piracy. The rationales in the news articles are analyzed as evidence of the social and psychological underpinnings of attitudes toward software piracy. An expanded version of Sykes and Matza's (American Sociological Review 22, 664-670, 1957); Zamoon and Curley (...) (Working paper, Kuwait University, Kuwait, 2007) neutralization framework is applied to analyze the content of the articles. We found that rationales condoning piracy showed a more balanced use of neutralization approaches, and less moral intensity toward the behavior. In contrast, rationales condemning piracy mostly promoted the injury aspect of software piracy, and suggested higher moral intensity. The discrepancies have practical implications as a barrier to the ability to connect the two sides of the debate concerning software piracy. (shrink)

A cross-cultural empirical study is reported in this article which looks at ethical beliefs and behaviours among French and German managers, and compares this with previous studies of U.S. and Israeli managers using a similar questionnaire. Comparisons are made between what managers say they believe, and what they do, between managers and their peers' attitudes and behaviours, and between perceived top management attitudes and the existence of company policy. In the latter, significant differences are found by national ownership of the (...) company rather than the country in which it is situated. Significant differences are found, for both individual managers by nationality, and for companies by nationality of parents, in the area of organizational loyalty. The attitude towards accepting gifts and favours in exchange for preferential treatment, as a measure of societal values, is also found to show significant differences between national groups. However, no significant differences are found for measures for group loyalty, conflict between organizational and group loyalty and for conflicts between self and group/organization. The findings have implications for cross-border management decision strategies regarding such issues as receiving and giving of gifts, and the management of relations between local employees and international organizations which may be affected by differences in attitude to corporate loyalty. (shrink)

As transnational interactions increase, cross-cultural conflict concerning ethical issues is inevitable. This article presents a model for assisting decision makers in selecting appropriate strategies for addressing cross-cultural ethical conflict. A theoretical framework for the model is developed based on the literature on international business ethics and on conflict resolution. The model is illustrated through several case examples. Implications for future research and practice are discussed.

Computer abuse by employees is a critical concern for managers. Misuse of an organization’s information assets leads to costly damage to an organization’s reputation, decreases in sales, and impositions of fines. We use this opportunity to introduce and expand the theoretic framework proffered by Thong and Yap to better understand the factors that lead individuals to commit CA in organizations. The study uses a survey of 449 respondents from the banking, financial, and insurance industries. Our results indicate that individuals who (...) adhere to a formalist ethical perspective are significantly less likely to engage in CA activities than those following a utilitarian ethical framework. In addition, the results provide evidence that employees with individualistic natures are linked to increased CA incidents, whereas collectivist tendencies are associated with decreases in CA behaviors. Our results also show that collectivism acts as a strong moderator that further decreases the relationships between formalism and CA, and utilitarianism and CA. Finally, we offer detailed suggestions on how organizations and researchers can leverage our findings to decrease CA occurrences. (shrink)

Abstract:Social contract is rapidly becoming one of the significant alternatives for analyzing ethical issues in business. Contractarian approaches emphasizing consent as a means of justifying principles can provide needed context for rendering normative judgements concerning economic behaviors. Current research issues include developing tests of consent for both hypothetical and extant social contracts, and empirically testing the assumptions of the major contractarian approaches. Open questions include exploring the relationship between contractarian business ethics and other approaches, such as stakeholder management and virtue (...) based ethics; and analysis of the intersection of contractarian approaches with the findings and assumptions of the field of moral psychology. Finally, the managerial utility of social contract based approaches needs to be explored with emphasis on identifying “translator” concepts. (shrink)

The paper presents an exploratory attempt to analyse self‐reported leniency toward software piracy systematically, using an approach based on empirical factors, rather than ethical factors. The empirical factors studied were: social acceptance of software piracy; the cost of original software; urgency of the subject's need for software; availability of original software; knowledge of computer software copyright law; gender; monthly household income; and education level. It provides new insights to software companies and government officials who are developing programmes to promote the (...) concept of anti‐piracy among software consumers. This is also the first exploratory research to study the interaction effects among factors influencing the reported leniency towards software piracy, at the individual level. (shrink)

Piracy is the greatest threat facing the music industry worldwide today. This study developed and empirically tested a model examining the antecedents of consumer attitude and behavioral intention toward music piracy behavior. Two types of music piracy behavior, unauthorized duplication/download and pirated music product purchasing, were examined. Based on a field survey in Taiwan, the results showed that attributive satisfaction, perceived prosecution risk, magnitude of consequence, and social consensus are very important in influencing customers attitude and behavioral intention toward two (...) types of music piracy behavior. In addition, singer/band idolization can affect the attitude and behavioral intention in the case of pirated music product purchasing. Perceived proximity was found to affect the attitude and behavioral intention in the case of pirated music product purchasing. However, it only influenced behavioral intention in the case of unauthorized duplication/download. (shrink)

In this paper, we explore the impact of individualism and collectivism on three basic aspects of ethical decision making - the perception of moral problems, moral reasoning, and behavior. We argue that the inclusion of business practices within the moral domain by the individual depends partly upon individualism and collectivism. We also propose a pluralistic approach to post-conventional moral judgment that includes developmental paths appropriate for individualist and collectivist cultures. Finally, we argue that the link between moral judgment and behavior (...) is related to individualism and collectivism. (shrink)

The purpose of this study is to investigate the salient factors that influence accounting students to engage in software and music piracy. This study uses the theory of reasoned action and the theory of planned behavior, and extends these models to incorporate other variables to predict individuals’ behavioral intentions. Specifically, we hypothesize that attitudes toward the behavior, subjective norms, perceived behavioral control, moral obligation and perceived prosecution risk influence intentions to engage in software and music piracy. Data were obtained from (...) 237 university accounting students in a Caribbean university to assess the influence of the components of the theories and other modified and extended models. Findings reveal that attitudes, subjective norms, perceived behavioral control, moral obligation and perceived prosecution risk significantly influence intentions to engage in software and music piracy. These findings lend full support to the hypothesized relationships in our extended theory of planned behavior. (shrink)

Softlifting (software piracy by individuals) is an unethical behavior that pervades today''s computer dependent society. Since a better understanding of underlying considerations of the behavior may provide a basis for remedy, a model of potential determinants of softlifting behavior is developed and tested. The analysis provides some support for the hypothesized model, specifically situational variables, such as delayed acquisition times, and personal gain variables, such as the challenge of copying, affect softlifting behavior. Most importantly, the analysis indicated that ethical perception (...) of softlifting has no significant affect on softlifting behavior. These findings suggest major implications for both software manufacturers and academicians attempting to reduce piracy behavior through ethics instruction. (shrink)

The purpose of this study is to investigate the salient factors influencing consumers’ attitudes and usage intentions towards pirated software. Using the Theory of Planned Behaviour, this study investigates the relationships between three sets of factors, i.e. personal, social and perceived behavioural control onto attitudes towards pirated software. Through a multiple regression, only personal factors have shown significant relationship with attitudes towards software piracy. Further results from this study have supported that favourable attitudes towards pirated software is likely to result (...) in stronger intentions to use pirated software. It was found that computer proficiency acts as a predictor for intentions towards pirated software, rather than a moderator as originally postulated. (shrink)

This study analyzed consumers' willingness to pay for non-pirated computer software and examined how attitudes toward intellectual property rights and perceived risk affect WTPs. Two commonly used software products, Microsoft Windows and Microsoft Office, were used in the study as objects to reveal consumer assessed values. A consumer survey was administered in Taiwan and the total valid samples were 799. Respondents in this study included students from senior high schools, colleges, and graduate schools, and general consumers who were no longer (...) full-time students. The estimated average WTP for Windows was USD 58.55 and for Office was USD 53.49, much lower than the respective suggested retail prices in the market. Social norms had strong positive influences on willingness-to-pay for software products. The prosecution risk did not significantly increase WTPs for software products due to the reason that individuals who used pirated software were not at a high risk of being prosecuted. Performance risk was positively correlated to WTPs for software products. The respondents segmented into the low-WTP cluster were more likely to use pirated software than those in the high-WTP segment. Source reliability, legitimacy, technical support, and customer service were emphasized in decisions of respondents in the high-WTP segment and could be used in marketing strategies. (shrink)

Softlifting, or the illegal duplication of copyrighted software by individuals for personal use, is a serious and costly problem for software developers and distributors. Understanding the factors that determine attitude toward softlifting is important in order to ascertain what motivates individuals to engage in the behavior. We examine a number of factors, including personal moral obligation (PMO), perceived usefulness, and awareness of the laws and regulations governing software acquisition and use, along with facets of personal self-identity that may play a (...) role in the development of attitudes and therefore intentions regarding this behavior. These factors are examined across multiple settings expected to be pertinent to our survey respondents: home, work and school. Personal moral obligation and perceived usefulness are significant predictors of attitude across all settings. Past behavior is a significant predictor of intention across all settings, and a significant predictor of attitude in the home setting. We find evidence that awareness of the law causes a less favorable evaluation of softlifting in the school setting only, but has little effect in the home and work settings. As in previous studies, attitude is a significant predictor of intent. We do not find indications that one’s personal self-identity influences one’s attitude towards the behavior and the intention to perform it, except in the case of legal identity, where marginally significant effects are found in the work environment. (shrink)

The purpose of this study is to investigate the effect of interpersonal influence on personal software piracy, also known as softlifting. A laboratory experiment with 54 subjects was conducted, in which each subject was told to participate in a software quality evaluation exercise. However, a ploy was carried out to measure the subjects intention in software piracy under different levels of group pressure and financial gains. The results are interesting. On the intention of softlifting, both group pressure and financial gains (...) are significant determinants. The interaction of group pressure and financial gains is also significant: when group pressure is toward pirating software, financial gains is not a relevant factor; whereas when group pressure is toward purchasing, financial gains becomes a dominant factor in softlifting intention. A further survey (with 216 college students from two public universities in Taiwan) designed to investigate the relationship between consumer susceptibility to interpersonal influence (Bearden et al., 1989) and softlifting intention/behavior. A path analysis demonstrated that normative influence was related to softlifting intention, yet information influence effect was marginal. The effect of normative influence on softlifting behavior was mainly mediated by softlifting intention. Implications are also discussed. (shrink)

The paper presents an exploratory attempt to analyse self‐reported leniency toward software piracy systematically, using an approach based on empirical factors, rather than ethical factors. The empirical factors studied were: (i) social acceptance of software piracy; (ii) the cost of original software; (iii) urgency of the subject's need for software; (iv) availability of original software; (v) knowledge of computer software copyright law; (vi) gender; (vii) monthly household income; and (viii) education level. It provides new insights to software companies and government (...) officials who are developing programmes to promote the concept of anti‐piracy among software consumers. This is also the first exploratory research to study the interaction effects among factors influencing the reported leniency towards software piracy, at the individual level. (shrink)

We develop and use an integrated individual-level model to explain the driving forces behind digital piracy practice in two nations. The proposed model combines the Norm Activation model and Unified Theory of Acceptance and Use of Technology models. This study also explores the effect of culture on intention to practice DP in two nations: US and India. A survey instrument was used to collect data from 231 US and 331 Indian participants. Use of the integrated model proves to be a (...) powerful and a viable approach to understanding DP across cultures. In each nation, all 10 path coefficients on the research model are statistically significant thereby establishing the fact that personal norm, together with other factors, influences INT to engage in DP, which in turn, may influence the actual practice. The results reveal a support for cross-cultural generalizability and applicability of the proposed model. Culture clearly plays a strong moderating role in two out of the three paths tested. The implications of the findings are discussed. (shrink)

In the global marketplace of ideas, accusations are often made that certain countries refuse to protect intellectual property (IP). This accusation fails to account for cultural differences in the recognition of IP This paper considers the impact of cultural variables upon a nation’s level of (IP) protection. Cultural variables such as humane orientation and in-group collectivism have a negative impact upon IP protection, while uncertainty avoidance and future orientation have a positive impact upon IP protection. Managerial implications of these findings (...) are discussed. (shrink)

Morality, in the context of luxury counterfeit goods, has been widely discussed in existing literature as having a strong association with decreased purchase intention. However, drawing on moral disengagement theory, we argue that individuals are motivated to justify their immoral behaviors through guilt avoidance, thus increasing counterfeit purchase intention. This research demonstrates that consumers’ desire to purchase counterfeit luxuries hinges on two types of moral reasoning strategies: moral rationalization and moral decoupling. The empirical results show that each strategy increases purchase (...) intention, but respectively through moral judgment and perceived benefit. Implications for researchers and managers are discussed. (shrink)

This paper identifies that Information and Communication Technology (ICT) has a negative effect on software piracy rates in addition to consolidating prior research that economic development and the cultural dimension of individualism also negatively affect piracy rates. Using data for 59 countries from 2000 to 2005, the findings show that economic well-being, individualism and technology development as measured by ICT expenditures explain between 70% and 82% of the variation in software piracy rates during this period. The research results provide important (...) implications for policy makers and business practitioners to help reduce software piracy. (shrink)

Organizational misconduct (white collar, corporate and occupational crime, unethical behavior, rule violations, etc.) is an increasingly important social concern. This paper proposes that a necessary step toward preventing and treating such misconduct is the understanding of the explanations, called accounts, given by the actor. We argue that the theorizing and findings in the literature on accounts can be organized into a 2×2 matrix framework. The first dimension centers on whether or not the actor admits that some net harm is done (...) by the act, and the second consists of whether or not the actor admits responsibility. When both are admitted (cell 1), the account is a concession, while denial of both constitutes a refusal (cell 4). Admitting responsibility but not harm equates to a justification (cell 2), and the opposite condition is an excuse (cell 3). Building on this matrix, we specify a typology of explanations within each cell which will highlight inter-cell differences. Finally, we explore the implications of this analysis for managers, regulators, and the public. (shrink)

Efforts to counter software piracy are an increasing focus of software publishers. This study attempts to develop a profile of those who illegally copy software by looking at undergraduate and graduate students and the extent to which they pirate software. The data indicate factors that can be used to profile the software pirater. In particular, males were found to pirate software more frequently than females and older students more than younger students, based on self-reporting.

Abstracts This study aims to examine the predictors of attitude and intentions toward Internet piracy in South Korea. Also, it intends to suggest a model of Internet piracy demonstrating the casual effects of factors of individual attitude and intentions toward Internet piracy. The results demonstrated that moral obligations and subjective norms are significant predictors of an individual’s attitude toward Internet piracy. Moreover, three factors—moral obligation, perceived behavioral control, and attitude—are essential antecedents of an individual’s intention to engage in Internet piracy. (...) The findings of this study embrace multiple implications for factors affecting piracy and promote future research around this topic. Content Type Journal Article Category Original Paper Pages 1-18 DOI 10.1007/s13520-012-0017-5 Authors Hyoungkoo Khang, Department of Advertising and Public Relations, College of Communication and Information Sciences, The University of Alabama, Tuscaloosa, AL, USA Eyun-Jung Ki, Department of Advertising and Public Relations, College of Communication and Information Sciences, The University of Alabama, Tuscaloosa, AL, USA In-Kon Park, Sungkyunkwan University, Seoul, South Korea Seon-Gi Baek, Sungkyunkwan University, Seoul, South Korea Journal Asian Journal of Business Ethics Online ISSN 2210-6731 Print ISSN 2210-6723. (shrink)

IS professionals have been reported to have one of the highest turnover rates. They have also often been accused of unethical conduct, specifically, pirating software, hacking, giving professional opinion that exceeds their knowledge, and not protecting people''s privacy. In a sample of 71 IS professionals and 250 members of other professions we found that IS professionals were more committed to their organizations than the other professionals, and that IS professionals were, indeed, less ethical with respect to software piracy and hacking. (...) However, we found that they were not less ethical regarding professional opinions that exceed one''s knowledge and protecting people''s privacy. (shrink)

Chinese consumers comprise a unique subculture that exerts a considerable influence on the market and are treated as a collective group by researchers. However, few studies have examined the effects of collectivism and consumer attitudinal attributes on consumer ethics. Although the practice of religion was prohibited in China before economic reforms in the late 1970s, religion remains a major factor that affects the ethical judgment of consumers. The present study, based on the Hunt–Vitell model, examines the influence of culture and (...) personal characteristics on consumer ethics. A total of 284 Chinese consumers were surveyed. Structural equation modeling was used to test hypothesized relationships in the research model. The results indicate that collectivism had a significant explanatory power for four dimensions of consumer ethical beliefs: actively benefiting from illegal activities; passively benefiting from questionable activities; actively benefiting from deceptive legal activities; and engaging in no harm and no foul activities. However, consumer attitude toward business significantly explained only the passive dimension of consumer ethics, and religious beliefs significantly explained only the active dimension of consumer ethical beliefs. (shrink)