Hosmer's fourth edition of The Ethics of Management provides business students (future managers) with a very specific analytical process for understanding and resolving moral problems in management. A manager needs insight and understanding in a global economy to convince everyone involved, given his or her varied religious, cultural, economic and social backgrounds, to accept a proposed moral solution. Acceptance of managerial moral solutions, over time, brings trust, commitment and effort, and those three, also over time, are essential for organizational success.

With the increased attention paid to ethical issues in business practice, there is interest in the ethics gap between the U.S. and the U.K. and in the ramifications for educating college students for business management positions. This paper examines the differences in ethics judgments between U.S. and U.K. business students. The results indicate that differences in their demographic profiles do not influence their ethics judgments. However, consistently higher business ethics of female students from both countries are discussed in relation to (...) providing business ethics education. (shrink)

This paper reviews Kohlberg''s (1969) theory of cognitive moral development, highlighting moral reasoning research relevant to the business ethics domain. Implications for future business ethics research, higher education and training, and the management of ethical/unethical behavior are discussed.

This study examines a model involving income, the love of money, pay satisfaction, organizational commitment, job changes, and unethical behavior among 211 full-time employees in Hong Kong, China. Direct paths suggested that the love of money was related to unethical behavior, but income (money) was not. Indirect paths showed that income was negatively related to the love of money that, in turn, was negatively related to pay satisfaction that, in turn, was negatively associated with unethical behavior. Pay satisfaction was positively (...) related to organizational commitment. Thus, the love of money is the root of evil, but money is not. (shrink)

More and more organisations formulate a code of conduct in order to stimulate responsible behaviour among their members. Much time and energy is usually spent fixing the content of the code but many organisations get stuck in the challenge of implementing and maintaining the code. The code then turns into nothing else than the notorious "paper in the drawer", without achieving its aims. The challenge of implementation is to utilize the dynamics which have emerged from the formulation of the code. (...) This will support a continuous process of reflection on the central values and standards contained in the code. This paper presents an assessment method, based on the EFQM model, which intends to support this implementation process. (shrink)

Current debate on business ethics in Australia continues apace as the excesses of the 1980s are exposed. Codes of Ethics have been a high profile instrument in the American business scene. A survey of Australia''s largest business corporations reveals a different situation. Codes are not as commonly used, tend to refer to legal requirements and do not have as high a profile within the corporation. Given the changing legal framework in Australia a greater role for Codes of Ethics may emerge.

There is a growing need to increase our understanding of ethical decision making in U.S. based organizations. The authors examine the complexity of creating uniform ethical standards even when the meaning of ethical behavior is being debated. The nature of these controversies are considered, and three important dimensions for ethical decision making are discussed: leaders with integrity and a strong sense of social responsibility, organization cultures that foster dialogue and dissent, and organizations that are willing to reflect on and learn (...) from their actions. Leaders with integrity demonstrate consistency between vision and action that promotes trust, regularly concern themselves with developing moral standards, and are proactive agents of change in an increasingly complex world. Organizational cultures that support dialogue suspend judgments and increase their capacity to think together towards new levels of understanding. Ethical concepts evolve in these organizational cultures, and actions are informed and responsible. Organizations that reflect on their actions engage in double loop learning so that the time taken to reflect on the past and present leads to a more judicious and ethical future. In essence, the authors point to organizational guidelines for ethical decision making that lead to an increase in members' capacity to think and act ethically. (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)

This paper examines the relationship between organizational ethical culture in two large international CPA firms, auditors'' personal values and the ethical orientation that those values dictate, and judgments in ethical dilemmas typical of those that accountants face. Using an experimental task consisting of multiple judgments designed to vary in "moral intensity" (Jones, 1991), and unique as well as tried-and-true approaches to variable measurements, this study examined the judgments of more than three hundred participants in our study. ANCOVA and path analysis (...) results indicate that: (1) Ethical judgments in situations of high moral intensity are affected by personal values and by environmental variables, such as the professional code of conduct (direct and indirect effects) and previous ethics instruction (direct effect only). (2) Corporate ethical culture, and a relatively strong firm rules-orientation, affect auditors'' idealism but not relativism, and therefore indirectly affect ethical judgments. Jones'' (1991) moral intensity argument is supported: differences in the characteristics of specific judgment tasks apparently result in different decision processes. (shrink)

Whistleblowing by employees to regulatory agencies and other parties external to the organization can have serious consequences both for the whistleblower and the company involved. Research has largely focused on individual and group variables that affect individuals'' decision to blow the whistle on perceived wrongdoing.This study examined the relationship between selected organizational characteristics and the perceived level of external whistleblowing by employees in 240 organizations. Data collected in a nationwide survey of human resource executives were analyzed using analysis of variance.

Competitive negotiators frequently use tactics which others view as "unethical", in that these tactics either violate standards of truth telling or violate the perceived rules of negotiation. This paper sought to determine how business students viewed a number of marginally ethical negotiating tactics, and to determine the underlying factor structure of these tactics. The factor analysis of these tactics revealed five clear factors which were highly similar across the two samples, and which parallel (to a moderate degree) categories of tactics (...) proposed by earlier theory. Data from one sample also permitted comparisons of the appropriateness of certain tactics across gender, nationality, ethnic origin and perception of one's negotiating style. (shrink)

Abstract:Extrapolating from Carroll’s four domains of corporate social responsibility (1979) and Pyramid of CSR (1991), an alternative approach to conceptualizing corporate social responsibility (CSR) is proposed. A three-domain approach is presented in which the three core domains of economic, legal, and ethical responsibilities are depicted in a Venn model framework. The Venn framework yields seven CSR categories resulting from the overlap of the three core domains. Corporate examples are suggested and classified according to the new model, followed by a discussion (...) of limitations and teaching and research implications. (shrink)

Recent allegations of unethical decision-making by leaders in prominent business organizations have jeopardized the world's confidence in American business. The purpose of this research was to develop a measure of managerial moral judgment that can be used in future research and managerial assessment. The measure was patterned after the Defining Issues Test, a widely used general measure of moral judgment. With content validity as the goal, we aimed to sample the domain of managerial ethical situations by establishing links to dimensions (...) of managerial performance, as well as to the types of organizational justice issues managers encounter. Proposed scenarios were evaluated for realism by ethics officers and human resource managers. Results indicated that the new measure is reliable and correlates with a number of relevant variables in the hypothesized manner, demonstrating evidence of construct validity. Implications for future research and for human resources management are discussed. (shrink)

Given the recent ethics scandals in the United States, there has been a renewed focus on understanding the antecedents to ethical decision-making in the research literature. Since ethical norms and standards of behavior are not universally consistent, an individual’s choice of referent may exert a large influence on his/her ethical decision-making. This study used a social identity theory lens to empirically examine the relative influence of the macro- and micro-level variables of national culture and peers on an individual’s intention to (...) behave ethically. Our sample consisted of respondents from Germany, Italy, and Japan. The results indicated that both national culture and peers were found to act as significant referents in ethical decision-making dilemmas. Although peers exerted a much stronger influence on an individual’s ethical decision-making, the impact of peers varied depending on the national culture levels of individualism and power distance. (shrink)

This paper draws from the fields of history, sociology, psychology, moral philosophy, and organizational theory to establish a theoretical connection between a social/organizational influence (ethical work climate) and an individual cognitive element of moral behavior (moral awareness). The research was designed to help to fill a gap in the existing literature by providing empirical evidence of the connection between organizational influences and individual moral awareness and subsequent ethical choices, which has heretofore largely been merely assumed. Results of the study provide (...) evidence that ethical work climate (EWC) is a primary predictor of individual moral awareness, and that the influence of social factors often overrides the effects of individual differences in a work group setting. Implications for future research are provided. (shrink)

This review summarizes and critiques the empirical ethical decision-making literature from 1996–2003. One hundred and seventy-four articles were published in top business journals during this period. Tables are included that summarize the findings by dependent variable – awareness, judgment, intent, and behavior. We compare this review with past reviews in order to draw conclusions regarding trends in the ethical decision-making literature and to surface directions for future research.

This paper presents the responses of 118 executives to a mail survey which examined their views of business ethics and various business practices. In addition to identifying various sources of ethical conflict, current business practices are also examined with respect to how ethical or unethical each is believed to be. Results are also presented which outline executive responses to four ethical business situations. Overall conclusions to the study are outlined, as well as future research needs.

This comparative field study evaluated the moral reasoning used by U.S. and Belizean business students in resolving business-related moral dilemmas. The Belizeans, citizens of a less-developed country with Western heritage and a values-based education system, revolved the dilemmas using higher stages of moral judgment than did the U.S. business students.

This article summarizes the multitude of empirical studies that test ethical decision making in business and suggests additional research necessary to further theory in this area. The studies are categorized and related to current theoretical ethical decision making models. The studies are related to awareness, individual and organizational factors, intent, and the role of moral intensity in ethical decision making. Summary tables provide a quick reference for the sample, findings, and publication outlet. This review provides insights for understanding organizational ethical (...) decision constructs, where ethical decision making theory currently stands, and provides insights for future empirical work on organizational ethical decision making. (shrink)

Differences and similarities between inside and outside board members with regard to their attitudes toward corporate social responsibility are examined. The results indicate that outside directors exhibit greater concern about the discretionary component of corporate responsibility and a weaker orientation toward economic performance. No significant differences between the two groups were observed with respect to the legal and ethical dimensions of corporate social responsibility. Some explanations as well as limited generalizations and implications are developed.

This study investigates the differences in individuals'' ethical decision making between Canadian university business students and accounting professionals. We examine the differences in three measures known to be important in the ethical decision-making process: ethical awareness, ethical orientation, and intention to perform questionable acts. We tested for differences in these three measures in eight different questionable actions among three groups: students starting business studies, those in their final year of university, and professional accountants.The measures of awareness capture the extent to (...) which respondents felt that a particular action was unethical according to each of several ethical criteria. We found few differences between the two student groups on these measures, suggesting that their education had minimal effect on raising their awareness of the ethical issues in the vignettes. Indeed, overall, the graduating student''s scores were marginally lower than those of the entry-level students. However, the professionals viewed some actions as significantly less ethical than did the graduating students. (shrink)

Following an extensive review of the moral intensity literature, this article reports the findings of two studies (one between-subjects, the other within-subject) that examined the effect of manipulated and perceived moral intensity on ethical judgment. In the between-subjects study participants judged actions taken in manipulated high moral intensity scenarios to be more unethical than the same actions taken in manipulated low moral intensity scenarios. Findings were mixed for the effect of perceived moral intensity. Both probable magnitude of consequences (a factor (...) consisting of magnitude of consequences, probability of effect, and temporal immediacy) and social consensus had a significant effect; proximity did not. In the within-subject study manipulated moral intensity had a significant effect on ethical judgment, but perceived moral intensity did not. Regression of ethical judgment on age, gender, major, and the three perceived moral intensity factors was significant between-subjects, but not within-subject. Ethical judgment was found to be a more robust predictor of intention than perceived moral intensity using a within-subject design. (shrink)

This paper examines the critical role that organizational leaders play in establishing a values based climate. We discuss seven mechanisms by which leaders convey the importance of ethical values to members, and establish the expectations regarding ethical conduct that become engrained in the organizations climate. We also suggest that leaders at different organizational levels rely on different mechanisms to transmit values and expectations. These mechanisms then influence members practices and expectations, further increase the salience of ethical values and result in (...) the shared perceptions that form the organizations climate. The paper is organized in three parts. Part onebegins with a brief discussion of climates regarding ethics and the critical role of values. Part two provides discussion on the mechanisms by which leaders and members transmit values and create climates related to ethics. Part three provides a discussion of these concepts with implications for theory, research, and practice. (shrink)

This article examines the extent to which diversity characteristics and stakeholder role influence individuals’ corporate social orientation (CSO). Our findings indicate that one’s relationship to the organization as well as diversity, gender, and race influence one’s CSO. Specifically, we found that employees’ greatest concern was economic whereas customers had a stronger ethical orientation. The results also suggest that women as well as Black employees and customers place more emphasis on whether an organization is fulfilling its discretionary responsibilities than do males (...) and Whites. A model using the concept of value congruence is presented to guide future research. (shrink)

Codes of conduct are viewed here as a community’s attempt to communicate its expectations and standards of ethical behavior. Many organizations are implementing codes, but empirical support for the relationship between such codes and employee conduct is lacking. We investigated the long term effects of a collegiate honor code experience as well as the effects of corporate ethics codes on unethical behavior in the workplace by surveying alumni from an honor code and a non-honor code college who now work in (...) business. We found that self-reported unethical behavior was lower for respondents who work in an organization with a corporate code of conduct and was inversely associated with corporate code implementation strength and embeddedness. Self-reported unethical behavior was also influenced by the interaction of a collegiate honor code experience and corporate code implementation strength. (shrink)

Abstract:This field survey focused on two constructs that have been developed to represent the ethical context in organizations: ethical climate and ethical culture. We first examined issues of convergence and divergence between these constructs through factor analysis and correlational analysis. Results suggested that the two constructs are measuring somewhat different, but strongly related dimensions of the ethical context. We then investigated the relationships between the emergent ethical context factors and an ethics-related attitude (organizational commitment) and behavior (observed unethical conduct) for (...) respondents who work in organizations with and without ethics codes. Regression results indicated that an ethical culture-based dimension was more strongly associated with observed unethical conduct in code organizations while climate-based dimensions were more strongly associated with observed unethical conduct in non-code organizations. Ethical culture and ethical climate-based factors influenced organizational commitment similarly in both types of organizations. Normative implications of the study are discussed, as are implications for future theorizing, research and management practice. (shrink)

Abstract:This study examined the relationship between the individual difference variables of personal moral philosophy, locus of control, Machiavellianism, and just world beliefs and ethical judgments and behavioral intentions. A sample of 602 marketing practitioners participated in the study. Structural equation modeling was used to test hypothesized relationships. The results either fully or partially supported hypothesized direct effects for idealism, relativism, and Machiavellianism. Findings also suggested that Machiavellianism mediated the relationship between individual difference variables and ethical judgments/behavioral intentions.

Jones's (1991) issue-contingent model of ethical decision making posits that six dimensions of moral intensity influence decision markers' recognition of an issue as a moral problem and subsequent behavior. He notes that "organizational settings present special challenges to moral agents" (1991, p. 390) and that organizational factors affect "moral decision making and behavior at two points: establishing moral intent and engaging in moral behavior" (1991, p. 391). This model, however, minimizes both the impact of organizational setting and organizational factors on (...) these experiences of ethical issues. In this theory, context is modeled as affecting the moral intent and behavior of the actor rather than directly affecting the issue's moral intensity. Here we look specifically at the effect of context on the moral intensity of ethical issues through a phenomenological study. Our results indicate that in certain environments, context may be critical in affecting the moral intensity of ethical issues. Thus, researchers should consider it more fully when assessing these issues' moral intensity. (shrink)

This study has been designed to investigate whether Corporate Social Responsibility (CSR) orientations have shifted in their priority in response to society's changing expectations. For this sample of U.S.-based multinational chemical subsidiaries, it appears that the top priority continues to be economic responsibilities, followed closely by legal responsibilities. A socially accountable corporation ... must be a thoughtful institution, able to rise above economic interest to anticipate the impact of its actions on all individuals and groups, from shareholders to employees to (...) customers, to fellow-breathers of the air and fellow-sharers of the land. A successful business organization must possess a moral sense as well as an economic sense (Thornton Bradshaw, President of Atlantic Richfield Co. inBusiness and Society: Strategies for the 1980's, 1980, p. xiv). (shrink)

Victor and Cullen (1987, 1988) developed a typology of ethical climates based upon the level of moral development of the work group (egoism, benevolence and principled a la Kohlberg, 1981) and the locus of analysis utilized in reaching decisions (individual, local, cosmopolitan). Building on this typology, data were obtained from a high technology company for the purpose of empirically extending the examination of the number of ethical climates that exist and portraying the relationship between ethical climates and the ethical dimension (...) of decisions.When faced with decisions posing various types of ethical dilemmas, most respondents indicated they would take the ethical path. The one exception involved bribery where respondents were about equally likely to make or withhold payment. One climate guided by laws/professional codes accounted for over half of the respondents. Several climates accounted for less than ten percent of the respondents. (shrink)

Researchers consistently report that individuals see themselves acting far more ethically than comparable others when confronted with ethically uncertain work-related behaviors. They suggest that this belief encourages unethical conduct and contributes to the degeneration of business ethics; however, they have not specifically investigated the consequences of this belief. If undesirable work behaviors actually do occur, educators and other ethics advocates would be strongly encouraged to dispel this widely held notion.In the present study, data was collected from college students and practicing (...) accountants regarding how they and others would respond to ten ethical scenarios. Participants' perceptions were calculated and correlated to their decision in a hypothetical business case. Analysis indicated that individuals, regardless of age, gender, or work status, see themselves acting far more ethically than others. It also disclosed significant association between participants' own attitudes and the case response, but no significant association between the response and their attitudes relative to those perceived to be held by others. Believing that everyone else is less ethical, therefore, appears to have little impact on work behavior. (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)

This paper reviews studies of corporate ethical codes published since 2000 and concludes that codes be can effective instruments for shaping ethical behavior and guiding employee decision-making. Culture and effective communication are key components to a code’s success. If codes are embedded in the culture and embraced by the leaders, they are likely to be successful. Communicating the code’s precepts in an effective way is crucial to its success. Discussion between employees and management is a key component of successful ethical (...) codes. (shrink)

This study examines the effect of gender, Machiavellian orientation, and socially desirable reporting on the respondent’s orientation toward corporate social responsibility. A sample of 219 undergraduate students from a Midwestern university exhibited differences in orientation across gender and degree of Machiavellian orientation. Social desirability had a minimal effect on the responses.

This research examines how the fit between employees moral development and the ethical work climate of their organization affects employee attitudes. Person-organization fit was assessed by matching individuals' level of cognitive moral development with the ethical climate of their organization. The influence of P-O fit on employee attitudes was assessed using a sample of 304 individuals from 73 organizations. In general, the findings support our predictions that fit between personal and organizational ethics is related to higher levels of commitment and (...) job satisfaction and lower levels of turnover intent. Ethical P-O fit was related to higher levels of affective commitment across all three ethical climate types. Job satisfaction was only associated with ethical P-O fit for one of the three P-O fit variables and turnover intentions were significantly associated with two of the ethical P-O fit variables. The most consistent effect was found for the Conventional - Caring fit variable, which was significantly related to all three attitudes assessed. The weakest effect was found for the Preconventional - Instrumental fit variable, which was only predictive of affective commitment. The pattern of findings and implications for practice and future research are discussed. (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 book contains a cohesive overview of the most important theories and insights in the field of business ethics. At the same time, it further tailors these theories to the situation in which organizations function, presenting criteria that can be used to measure, assess, improve and report on corporate integrity.

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)

This paper will examine the effects of gender, age, work experience, academic status and legality on certain ethical decisions. Six scenarios representing ethical dilemmas were presented to both undergraduate and MBA students in an attempt to determine if various demographic factors influenced ethical decision making. While some past studies have suggested that gender has an important effect on ethical decision making, this study does not completely support this conclusion and suggests that age and/or length of work experience should be included (...) in any study of ethical decision making.The legality of the decisions was determined and compared to the reason given by the students for their decisions. In some cases the choice made by a majority of the students was not the one that was supported by the legal authorities which suggests that there may be conflicts between the ethical system of the respondents and the behavior expected of them by society. (shrink)

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 linkage between ethical judgment and ethical behavioral intention was investigated. The Multidimensional Ethics Scale (MES) was used to measure ethical judgment ratings of hypothetical behaviors in retail, sales, and automobile repair scenarios. Confirmatory factor analysis on a sample of 300 undergraduate business students showed that a model with three latent variables representing three correlated ethical dimensions of moral equity, relativism, and contractualism, three correlated scenario latent variables, and correlated residuals presented a good fit to the data. Further, structural models (...) of the relationship of ethical judgment to behavioral intentions revealed that behavioral intentions were more highly related to the scenario factors than to the ethical dimensions across three scenarios. Adding a method factor to the model improved goodness-of-fit and changed some structural model conclusions. (shrink)

This study attempts to extend the literature in ethics research by developing and testing a model of an individual's ethical system which identifies the sources of influence on the decision process. The model is developed from an interdisciplinary literature review and includes six subsystems or spheres that exert influence on an individual: the workplace, family, religion, legal system, community, and profession. The study also examines the role of materiality in the decision-making process. Using this model, empirical tests identify the spheres (...) that exert the most influence on the decision-maker facing an ethical dilemma. In addition, the relative importance of the spheres and the interaction among the spheres is examined. Findings show that: (1) individuals rate variables at different levels of importance as the materiality of the breach changes and (2) the spheres that are considered most important for minor ethical breaches are different than the spheres considered most influential in a major ethical situation. Exploratory factor analysis suggests that the variables representing the spheres can be summarized by three factors. Further, it indicates that these factors change with materiality. (shrink)

This study considers the relationship between perceptions of ethical behavior and the demographic characteristics of sex, age, education level, job title, and job tenure among a sample of marketing researchers. The findings of this study indicate that female marketing researchers, older marketing researchers, and marketing researchers holding their present job for ten years or more generally rate their behavior as more ethical.