The work presented here investigates the process by which one group of individuals solves the problem of detecting deceptions created by other agents. A field experiment was conducted in which twenty‐four auditors (partners in international public accounting firms) were asked to review four cases describing real companies that, unknown to the auditors, had perpetrated financial frauds. While many of the auditors failed to detect the manipulations in the cases, a small number of auditors were consistently successful. Since the detection of (...) frauds occurs infrequently in the work of a given auditor, we explain success by the application of powerful heuristics gained from experience with deceptions in everyday life. These heuristics implement a variation of Dennett's intentional stance strategy, which is based on interpreting detected inconsistencies in the light of the Deceiver's (i.e., management's) goals and possible actions. We explain failure to detect deception by means of perturbations (bugs) in the domain knowledge of accounting needed to apply these heuristics to the specific context of financial statement fraud. We test our theory by showing that a computational model of fraud detection that employs the proposed heuristics successfully detects frauds in the cases given to the auditors. We then modify the model by introducing perturbations based on the errors made by each of the auditors in the four cases. The resulting models account for 84 of the 96 observations (i.e., 24 auditors × four cases) in our data. (shrink)

This book offers the fullest and most sophisticated account of Gert's influential moral theory, a model first articulated in the classic work The Moral Rules: A New Rational Foundation for Morality, published in 1970. In this final revision, Gert makes clear that the moral rules are only one part of an informal system that does not provide unique answers to every moral question but does always provide a range of morally acceptable options. A new chapter on reasons includes an account (...) of what makes one reason better than another and a second new chapter is devoted to the question of justifying violations of the rules. Moral impartiality, the moral ideals, and virtue and vice, are all treated in greater detail. Throughout, Gert attempts to answer all of the challenges that his work has provoked. (shrink)

What is it to deceive someone? And how is it possible to deceive oneself? Does self-deception require that people be taken in by a deceitful strategy that they know is deceitful? The literature is divided between those who argue that self-deception is intentional and those who argue that it is non-intentional. In this study, Annette Barnes offers a challenge to both the standard characterisation of other-deception and current characterizations of self-deception, examining the available explanations and exploring such questions as the (...) self-deceiver's false consciousness, bias, and the irrationality and objectionability of self-deception. She arrives at a non-intentional account of self-deception that is deeper and more complete than alternative non-intentional accounts and avoids the reduction of self-deceptive belief to wishful belief. (shrink)

This study investigates the negative influence of consumer’s perceptions of online retailer’s deceptive practices on consumer’s relational variables. Also, the moderating role of product type, consumer’s attitude toward the Internet, and consumer’s demographics in the deception-relational outcomes link is considered. Data from 398 online consumers revealed that satisfaction totally mediated the influence of deception on loyalty. Furthermore, the deception-satisfaction link was moderated by all the hypothesized variables. Interestingly, a direct effect of deception on loyalty was found among more educated consumers, (...) consumers who had a more positive attitude toward the Internet and consumers who had purchased a physical product. Implications for theory and management are discussed. (shrink)

Demographic differences among consumer groups have become increasingly important to the development of marketing strategies. Marketers depend heavily on the sales force to implement strategies at the consumer level and, not surprisingly, different groups may view the salesperson’s role differently. Unfortunately, unethical sales practices targeted at various consumer groups, and especially at seniors, have been utilized as well. The purpose of this study is to provide initial empirical evidence of the ethical ideological make-up of four age segments outlined by Strauss (...) and Howe (1991, Generations: The History of America’s Future 1584–2069, Morrow, New York) and to examine the propensity for these groups (seniors, in particular) to respond differentially to potentially unethical sales tactics. Data were collected from 179 respondents representing the four generational age groups. MANOVA revealed that the seniors in this study were distinct with respect to ethical ideology and less accepting of unethical sales tactics. Managerial implications are discussed for sales organizations to maximize their effectiveness across consumer groups. (shrink)

For many years, researchers and practitioners have sought out meaningful indicators of sales performance. Yet, as the concept of performance has broadened, the understanding of what makes up a successful seller, has become far more complicated. The complexity of buyer–seller relationships has changed therefore as the definition of sales performance has expanded, cultivating a growing interest in ethical/unethical actions since they could potentially have impacts on sales performance. Given this environment, the purpose of this study is to explore the impact (...) of moral judgment on sales performance and sellers engaging in a customer-oriented selling approach. Specifically, by utilizing a sample of 345 business-to-business salespeople, this study examines the relationships between moral judgment, customer-oriented selling, and outcome and behavior based performance. Results, managerial implications, and opportunities for future research are provided. (shrink)

The ethics of sales is an important, but neglected, topic in business ethics. I offer criticisms of what others have said about themoral duties of salespeople and formulate what I take to be a more plausible theory. My theory avoids the objections I raise againstothers and yields plausible results when applied to cases. I also defend my theory by appeal to the golden rule and offer a justificationfor the version of the golden rule to which I appeal. I argue that (...) salespeople have prima facie duties to do the following: 1. warncustomers of potential hazards, 2. refrain from lying and deception, 3. fully and honestly answer questions about what they are selling,and 4. refrain from steering customers toward purchases they have reason to think will harm the customers. The paper concludes with a brief appendix that discusses the implications of the ethics of sales for the social responsibilities of business. (shrink)

The work presented here investigates the process by which one group of individuals solves the problem of detecting deceptions created by other agents. A field experiment was conducted in which twenty-four auditors (partners in international public accounting firms) were asked to review four cases describing real companies that, unknown to the auditors, had perpetrated financial frauds. While many of the auditors failed to detect the manipulations in the cases, a small number of auditors were consistently successful. Since the detection of (...) frauds occurs infrequently in the work of a given auditor, we explain success by the application of powerful heuristics gained from experience with deceptions in everyday life. These heuristics implement a variation of Dennett's intentional stance strategy, which is based on interpreting detected inconsistencies in the light of the Deceiver's (i.e., management's) goals and possible actions. We explain failure to detect deception by means of perturbations (bugs) in the domain knowledge of accounting needed to apply these heuristics to the specific context of financial statement fraud. We test our theory by showing that a computational model of fraud detection that employs the proposed heuristics successfully detects frauds in the cases given to the auditors. We then modify the model by introducing perturbations based on the errors made by each of the auditors in the four cases. The resulting models account for 84 of the 96 observations (i.e., 24 auditors × four cases) in our data. (shrink)