This paper is designed to do three things while discussing the challenge of ethical behavior in organization. First, it discusses some reasons why unethical behavior occurs in organization. Secondly, the paper highlights the importance of organizational culture in establishing an ethical climate within an organization. Finally, the paper presents some suggestions for creating and maintaining an ethically-oriented culture.

The conceptual model presented in this article argues that corporations exhibit specific behaviors that signal their true level of moral development. Accordingly, the authors identify five levels of moral development and discuss the dynamics that move corporations from one level to another. Examples of corporate behavior which are indicative of specific stages of moral development are offered.

The contention that organizational culture influences ethical decision making is not disputable. However, the extent to which it influences ethical decision making in the workplace is a topic for scholarly debate and investigation. There are scholars who argue that, though corporate values are a powerful force in explaining the behavior of individuals and groups within organizations, these values are unperceived, unspoken, and taken for granted. However, there are others who argue that the formalization of corporate values facilitates job and role (...) clarity and is the key to influencing employee behavior. The purpose of this study is to examine the extent of the influence of organizational codes of ethics. The findings suggest that, depending upon the particular situation, corporate culture and ethics may mitigate individual personal moral convictions about right and wrong. (shrink)

Classroom cases and decision making models used in the teaching of business ethics may be inconsistent with the actual needs of practicing manager students. Three summary cases written by practicing manager students are included in this paper as well as evidence that concerns a focus more on interpersonal dilemmas rather than top management decisions. As well, the relevancy of philosophical perspectives of ethical decision models is questioned. More practical, hands-on models for ethical decisions are provided. Finally, conclusions of relevancy for (...) the field are drawn. (shrink)

This experimental study evaluated the influence of stated organizational concern for ethical conduct upon managerial behavior. Using an in-basket to house the manipulation, a sample of 113 MBA students with some managerial experience reacted to scenarios suggesting illegal conduct and others suggesting only unethical behavior. Stated organizational concern for ethical conduct was varied from none (control group) to several other situations which included a high treatment consisting of a Code of Ethics, an endorsement letter by the CEO and specific sanctions (...) for managerial misconduct. Only in the case of suggested illegal behavior tempered by high organizational concern were managers influenced by organizational policy to modify the morality of their actions. However, the responses to the illegal scenarios were significantly more ethical than the reactions given to the unethical (but not illegal) situations. The implications of these findings are then discussed. (shrink)

Using a 2×2×2 experimental design, the effects of situational and individual variables on individuals' intentions to act unethically were investigated. Specifically examined were three situational variables: (1) quality of the work experience (good versus poor), (2) peer influences (unethical versus ethical), and (3) managerial influences (unethical versus ethical), and three individual variables: (4) locus of control, (5) Machiavellianism, and (6) gender, on individuals' behavioral intentions in an ethically ambiguous dilemma in an work setting. Experiment 1 revealed main effects for quality (...) of work experience, Machiavellianism, locus of control, and an interaction effect for peer influences and managerial influences. Experiment 2 showed main effects for all three situational variables and Machiavellianism. Neither experiment supported gender differences. Limitations, future research, and implications for management are discussed. (shrink)

In this paper I examine how the constituent elements of a firm's organizational structure affect the ethical behavior of workers. The formal features of organizations I examine are the compensation practices, performance and evaluation systems, and decision-making assignments. I argue that the formal organizational structure, which is distinguished from corporate culture, is necessary, though not sufficient, in solving ethical problems within firms. At best the formal structure should not undermine the ethical actions of workers. When combined with a strong culture, (...) however, the organizational structure may be sufficient in promoting ethical conduct. While helpful, ethics training and corporate codes are neither necessary nor sufficient in promoting ethical behavior within firms. (shrink)

A growing public concern regarding ethical business conduct has stimulated marketing research in the ethics area. This study is the first empirical research to investigate the relationship between a code of ethics and sales force behavior. The findings present preliminary evidence that a well communicated code of ethics may be related to ethical sales force behavior. Furthermore, it appears that a sales force that is employed in such an environment can be profiled as being relatively high in job performance and (...) receiving equally high satisfaction from their positions. Suggestions are made for future research and recommendations are offered for marketing practitioners. (shrink)

Despite the existence of a large number of models to explain the ethical decision-making process, rarely have the models been tested. This research validated the use of such models by showing that both issue-contingent variables and individual characteristics affect two commonly-proposed model components: i.e., moral judgment and moral intent. As proposed by Jones' (1991) ethical decision-making model and elaborated on by the author, the main effect of an issue-contingent variable, social consensus, and a closely-related variable, seriousness of consequences, influenced both (...) moral judgment and moral intent.Many ethical decision-making models also argue for the inclusion of individual characteristics in the decision-making process. This study proposed and found that the individual characteristics of rule orientation and denial of responsibility influenced moral judgment and moral intent, respectively. However, contrary to some models, interactions between issue-contingent variables and individual characteristics were insignificant relative to the main effects variables. The relationships found have implications for future model testing, as well as for practising managers. (shrink)

The authors review the empirical literature in order to assess which variables are postulated as influencing ethical beliefs and decision making. The variables are divided into those unique to the individual decision maker and those considered situational in nature. Variables related to an individual decision maker examined in this review are nationality, religion, sex, age, education, employment, and personality. Situation specific variables examined in this review are referent groups, rewards and sanctions, codes of conduct, type of ethical conflict, organization effects, (...) industry, and business competitiveness. The review identifies the variables that have been empirically tested in an effort to uncover what is known and what we need to know about the variables that are hypothesized as determinants of ethical decision behavior. (shrink)

The majority of North American corporations awakened to the need for their own ethical guidelines during the late 1970s and early 1980s, even though modern corporations are subject to a surprising multiplicity of external codes of ethics or conduct. This paper provides an understanding of both internal and external codes through a discussion of the factors behind the development of the codes, an analysis of internal codes and an identification of problems with them.

Can companies be identified by how ethical they are? The concept of organizational culture suggests that organizations have identifiable cultures of which ethics are a part. By definition culture is the shared beliefs of an organization's members, hence the ethical culture of an organization would be reflected in the beliefs about the ethics of an organization which are shared by its members. Thus, it is logical to conceptualize the ethics of different organizations as existing on a continuum bounded at one (...) end by unethical companies and at the other, highly ethical companies. This research assesses the efficacy of the existing measure of organizational ethical culture for identifying the ethical status of organizations on a this continuum. Results suggest that the Ethical Culture Questionnaire designed by Trevino, Butterfield and McCabe (1995) measures individual perceptions regarding organizational ethics but does not identify shared beliefs about an organizationÕs ethical culture. (shrink)

The cause of ethical failure in organisations often can be traced to their organisational culture and the failure on the part of the leadership to actively promote ethical ideals and practices. This is true of all types of organisations, including the professions, which in recent years have experienced ongoing ethical problems. The questions naturally arise: what sort of professional culture promotes ethical behaviour? How can it be implemented by a profession and engendered in the individual professional? The answers to these (...) questions are of interest to business ethicists since the causes of ethical problems in business are often the same and the professions, as ethically challenged organisations, make useful and informative analogues for the measures to be adopted or avoided when the attempt is made to raise the ethical standards of business.Given this focus on the professions, it will be argued that the usual, direct attempts to control unethical behaviour by using codes of ethics, legislation and self-regulatory regimes, are not successful. (shrink)

This paper assesses the potential of organisational culture as a means for improving ethics in organisations. Organisational culture is recognised as one determinant of how people behave, more or less ethically, in organisations. It is also incresingly understood as an attribute that management can and should influence to improve organisational performance. When things go wrong in organisations, managers look to the culture as both the source of problems and the basis for solutions. Two models of organisational culture and ethical behaviour (...) are evaluated. They rest on different understandings of organisational culture and the processes by which ethics are enhanced. Firstly, the prevailing approach holds that creating a unitary cohesive culture around core moral values is the solution to enhancing ethical behaviour. Both the feasibility and desirability of this approach, in terms of ethical outcomes, is questioned. The second model queries the existence of organisational culture at all, arguing that organisations are nothing more than shifting coalitions of subcultures. In this second model, the very porousness of the subcultures provides a catalyst for the scrutiny and critique of norms and practices. Such diversity and debate is construed as potentially a better safeguard for ethical behaviour than the uniformity promised by the unitary, strong culture model. (shrink)

This paper explores the influence of group context on the ethical predispositions of group members. Results indicate that groups exert a powerful influence on individuals' ethical frameworks, and that the patterns of these influences differ depending on the type of ethical framework involved. Individuals' ethical utilitarianism was affected by both leadership style and group cohesiveness. Ethical formalism was most affected by the leadership style in the group.

A growing number of researchers in the business ethics field have used scenarios as a data gathering technique in their empirical investigations of ethical issues. This paper offers a review and critique of 26 studies that have utilized scenarios to elicit inferences of ethical reasoning, decision making, and/or intended behavior from managerial or student populations. The use of a theoretical foundation, the development of hypotheses, various characteristics germane to the use of scenarios, population and sampling issues, and the use of (...) statistical measures are explored and assessed. In the interest of improving scenario-based research, ten recommendations are presented to guide future scenario research. (shrink)

The author examines, in the context of Litwin and Stringer''s (1968) operationalization, the influence of social inclusion (organizational warmth and organizational identity) as a marketing ethics correlate. The results indicate that both organizational warmth and organizational identity underlie marketing professionals'' ethical behavior. Furthermore, the influence pattern for each variable is consistent witha priori hypothesis.

This study examines the ethical beliefs and behavior of a sample of Israeli managers (n=97) and comparable data from the United States. Israeli managers rated themselves both highly ethical and more ethical than their peers. These results are similar to those found for the U.S., and indicate that the best predictor of respondents' ethical behavior is their beliefs and perceptions concerning their peers' behavior. In addition, this study examines the managers' predisposition to promote social responsibility by joining social networks of (...) managers and other business people, established for that purpose. Seventy-eight percent are of the opinion that networks for the promotion of social responsibility in business are needed and 57% are ready to join them. (shrink)

Business ethics has emerged in recent years as a field of significant scholarly endeavour. Particularly well documented is the existence of ethical conflict at work and the reported inseparability of business decisions and moral consequences. However, to date, the majority of studies have been conducted in the American business context.This paper examines the concept of ethical conflict as experienced by employees in the Australian context. According to a sample of Western Australian managers, ethical conflicts at work do occur — with (...) relative frequency. Of considerable concern is the high incidence of cases where the demands of superiors are deemed to be the cause of this conflict. This finding is particularly disturbing as superiors are also the primary influence on employee ethical decision making. It would see that the ethics role models are also the instigators of unethical behaviour. (shrink)

The purpose of this study was to examine the nature and extent to which cultural differences bear on perceptions of ethical Organizational Development consulting behaviors. U.S. (n=118) and Taiwanese (n=267) business students evaluated eleven vignettes depicting potential ethical dilemmas. Respondents judged the ethicality of each vignette, the likelihood of the event's occurrence and the party responsible for the event's occurrence. Multivariate Analyses of Variance revealed significant cultural differences in perceptions of ethicality, and group differences in perceptions of the events' likelihood (...) of occurrence. U.S. subjects provided higher ethicality ratings than the Taiwanese, and lower ratings on the likelihood of occurrence. Response distributions resulting from the identification of the responsible party were similar for six of the eleven vignettes. When differences did occur, it appeared that the Taiwanese were more inclined than the U.S. subjects to view responsibility as shared by the client and the consultant. The results suggest the need for the incorporation of cultural differences in a code of ethics for the profession and the need for cross-cultural ethics training for partitioners. (shrink)

This paper examines the perceived ethical values of Malaysian managers. It is based on the opinions of 15 hypothetical ethical/unethical business situations from the 81 managers who agreed to participate in the survey. The findings of this study showed that these Malaysian managers have high ethical values. However 53% of the respondents believed that the ethical standards of today are lower than that of 15 years ago. Apparently, this is related to the existence of many unethical business practices prevalent in (...) the modern business world. The behavior of one's immediate superior is the most important factor in influencing managers to commit unethical practices. The results also indicate only a slight variation among the managers in terms of perceived ethical values by virtue of job position, job specialization, type of business activity or the size of the business organization. (shrink)

This paper examines the contents of the codes of ethics of 83 of the top 500 companies operating in the private sector in Australia in an attempt to discover whether there are national characteristics that differentiate the codes used by companies operating in Australia from codes used by companies operating in the American and Canadian systems. The studies that were used as a comparison were Mathews (1987) for the United States of America and Lefebvre and Singh (1992) for Canada. The (...) major conclusion is that, whilst Australian codes do have some characteristics that differentiate them from the other two groups, it appears that companies in all three cultures are driven by the same motives to develop codes. (shrink)