Several studies have identified entrepreneurship as a key factor in wealth creations in addition to associating certain personality characteristics to its growth. The question is to what extent have these wealth creations performed ethically. The present study is set to explore the cognitive orientation and demographic factors that are associated with unethical business. Two hundred and fifty-six owner–managers in the age range of 24 to 68 years participated in the survey study. Male participants accounted for 63.3 per cent, while female (...) participants were 36.7 per cent. The results indicate that risk taking and gender factors were consistently and statistically significant predictors of unethical business across the three groups in this study. The group situation appears to have effect on the individual contribution to unethical business. Implications are drawn from the results, and priorities are established for future research. (shrink)

This study examined some ethical implications of two different individual competitive orientations. Winning is crucially important in hypercompetitiveness , whereas a personal development (PD) perspective considers competition as a means to self-discovery and self-improvement. In a sample of 263 senior-level undergraduate business students, survey results suggested that hypercompetitiveness was generally associated with “poor ethics” and PD competitiveness was linked with “high ethics”. For example, hypercompetitive individuals generally saw nothing wrong with self-interested gain at the expense of others, but PD competitors (...) viewed such activities as largely inappropriate. Hypercompetitive people also tended to be highly Machiavellian but not ethically idealistic. In contrast, PD competitors tended to be ethically idealistic but not Machiavellian. Managers that are interested in both high ethics and high functioning work groups may wish to consider the potential importance of attempting to channel hypercompetitive tendencies into PD directions. (shrink)

The relationship between unethical peer behavior and observers’ unethical behavior traditionally has been examined from a social learning perspective. We employ two additional theoretical lenses, social identity theory and social comparison theory, each of which offers additional insight into this relationship. Data from 600 undergraduate business students in two universities provide support for all the three perspectives, suggesting that unethical behavior is influenced by social learning, social identity, and social comparison processes. Implications for managers and future research are discussed.

Research in ethical decision making has consistently demonstrated a positive relationship between others’ unethical behavior and observers’ unethical behavior, providing support for the “Monkey See, Monkey Do” perspective (e.g., Robinson and O’Leary-Kelly, Acad Manage J 41:658–672, 1998 ). However, the boundaries of this relationship have received little research attention. Guided by theory and research in interpersonal distancing, we explore these boundaries by proposing and examining “moral differentiation,” the set of individual and situational characteristics that affect the degree to which one (...) is willing to be influenced by others’ unethical behavior. Using data from 655 undergraduate business students in two U.S. universities, we test moderating hypotheses regarding the influence of moral differentiation characteristics on the relationship between others’ unethical behavior and observers’ unethical behavior. Results suggest that strong moral identity, low need for affiliation, and extraversion weaken the relationship between others’ unethical behavior and observers’ unethical behavior. Implications for managers and future research are discussed. (shrink)

Two contrasting types of individuals were each predicted to agree, for different reasons, that conventional ethical standards of society need not be upheld if organizational interests appear to demand otherwise. The hypotheses were investigated using questionnaire responses from two samples (employed and student, total N=308). Clear support was obtained for the prediction that individuals inclined toward self-interest and behavior counter to conventional standards would agree with the preceding position. Partial support was obtained for the hypothesis that individuals who simply feel (...) obligated to support an employing organization would also agree. While the latter's perspective may be somewhat narrow or perhaps even cynical, they do not seem to reflect the self-interest profile of the first group. This study also extends the groundbreaking work of Froelich and Kottke by exploring individual difference correlates of their promising ethics scale assessing the extent of agreement that organizational interests legitimately supersede more conventional ethical standards. (shrink)

This study examines how our personal values influence our judgment of the morality of some workplace behaviours. Sixty-nine undergraduates were asked to rank order separately Rokeach''s instrumental and terminal values in terms of their importance as guiding principles in their life. Subjects then read four scenarios, each of which described ethically questionable behaviour of the sort that might be encountered in business. They were then asked to rate whether or not the behaviour of the person described in the scenario was (...) ethical, and whether or not they had any intentions to rectify the situation. People with different value hierarchies perceived the targeted behaviours differently. For example, subjects who valued honesty perceived the behaviour as more immoral than subjects who did not value honesty. While the ranking of the instrumental valuehonesty was the best predictor of people''s judgments about the morality of the behaviour, their ranking of the instrumental valueambition was the best predictor of their behavioural intentions. (shrink)

This study was conducted to determine how culture influences the ethical perception of managers. Most studies conducted so far have only stated similarities and differences in ethical perception between cultural or ethnic groups and little attention has been paid towards understanding how cultural values influence the ethnic groups' ethical perception. Moreover, most empirical research in this area has focused on moral judgement, moral decision making and action, with limited empirical work in the area of ethical perception. A total of 22 (...) interviews were conducted and the questionnaire survey yielded 272 managerial responses. Three implications were obtained based on the findings of the study. The first implication is that differences in ethical perception can exist when one culture attributes moral significance to something that another culture does not. The results of the study also suggest that similarities in ethical perception can occur when a situation is viewed as an accepted and institutionalised part of doing business. Finally, the findings of the study also show that the influence of culture on ethical perception varied according to the different types of scenarios. (shrink)

We attempt to understand the personal incentives that motivate corporate insiders to engage in unethical behavior such as delayed trade disclosure. Delayed disclosure affects corporate transparency and other shareholders in the firm potentially suffer investment losses because they are unaware of insiders’ activities. Using archival data from the 300 largest Australian firms between 2007 and 2011, the results show that risk factors such as insider age and tenure and wealth effects in the form of insider shareholdings affect the likelihood of (...) delayed reporting. Governance positions such as committee membership mitigate this behavior. Our study highlights the importance of considering individual insider’s wealth and risk factors. The self-monitoring role of governance positions is also indicative of the effectiveness of internal corporate governance in the prevention of illegal insider behavior. (shrink)

Jones (1990) described ten workplace behaviors of a dubious ethical nature and determined that the hierarchical position adopted by respondents influenced the perceived acceptability of these behaviors. This measure seems promising, and therefore the purpose of this investigation is two-fold: (1) to explore further the psychometric properties of these ten items; and (2) to examine the role of individual difference variables as correlates of perceived acceptability. In two samples of working people, the Jones items were found to be internally consistent, (...) not obviously subject to range restriction, modestly related to social desirability, largely orthogonal to age and managerial status, but clearly linked with Machiavellianism. The nature of the linkage between perceived acceptability and both sex and the Protestant work ethic differed across the two studies, which underscores the need for future research. Two additional variables worth investigating in such research may be locus of control and equity sensitivity. (shrink)