This paper explores possible connections between gender and the willingness to engage in unethical business behavior. Two approaches to gender and ethics are presented: the structural approach and the socialization approach. Data from a sample of 213 business school students reveal that men are more than two times as likely as women to engage in actions regarded as unethical but it is also important to note that relatively few would engage in any of these actions with the exception of buying (...) stock with inside information. Fifty percent of the males were willing to buy stock with insider information. Overall, the results support the gender socialization approach. (shrink)

A growing body of research suggests that follower perceptions of ethical leadership are associated with beneficial follower outcomes. However, some empirical researchers have found contradictory results. In this study, we use social learning and social exchange theories to test the relationship between ethical leadership and follower work outcomes. Our results suggest that ethical leadership is related positively to numerous follower outcomes such as perceptions of leader interactional fairness and follower ethical behavior. Furthermore, we explore how ethical leadership relates to and (...) is different from other leadership styles such as transformational and transactional leadership. Results suggest that ethical leadership is positively associated with transformational leadership and the contingent reward dimension of transactional leadership. With respect to the moderators, our results show mixed evidence for publication bias. Finally, geographical locations of study samples moderated some of the relationships between ethical leadership and follower outcomes, and employee samples from public sector organizations showed stronger mean corrected correlations for ethical leadership–follower outcome relationships. (shrink)

In this study, we test the interactive effect on ethical decision-making of (1) personal characteristics, and (2) personal expectanciesbased on perceptions of organizational rewards and punishments. Personal characteristics studied were cognitive moral developmentand belief in a just world. Using an in-basket simulation, we found that exposure to reward system information influenced managers’ outcome expectancies. Further, outcome expectancies and belief in a just world interacted with managers’ cognitive moral development to influence managers’ ethical decision-making. In particular, low-cognitive moral development managers who (...) expected that their organization condoned unethical behavior made less ethical decisions while high cognitive moral development managers became more ethical in this environment. Low cognitive moral development managers also behaved less ethically when their belief in a just world was high. (shrink)

In this study, we test the interactive effect on ethical decision-making of (1) personal characteristics, and (2) personal expectanciesbased on perceptions of organizational rewards and punishments. Personal characteristics studied were cognitive moral developmentand belief in a just world. Using an in-basket simulation, we found that exposure to reward system information influenced managers’ outcome expectancies. Further, outcome expectancies and belief in a just world interacted with managers’ cognitive moral development to influence managers’ ethical decision-making. In particular, low-cognitive moral development managers who (...) expected that their organization condoned unethical behavior made less ethical decisions while high cognitive moral development managers became more ethical in this environment. Low cognitive moral development managers also behaved less ethically when their belief in a just world was high. (shrink)

The paper describes and discusses unethical behavior in organizations, as a result of (interacting) disputable leadership and ethical climate. This paper presents and analyzes the well-known bond trading scandal at Salomon Brother to demonstrate the development of an unethical organizational culture under the leadership of John Gutfreund. The paper argues that leaders shape and reinforce an ethical or unethical organizational climate by what they pay attention to, how they react to crises, how they behave, how they allocate rewards, and how (...) they hire and fire individuals. (shrink)

Since time immemorial, the phenomenon of leadership and its understanding has attracted the attention of the business world because of its important role in human groups. Nevertheless, for years efforts to understand this concept have only been centred on people in leadership roles, thus overlooking an important aspect in its understanding: the necessary moral dimension which is implicit in the relationship between leader and follower. As an illustrative example of the importance of considering good morality in leadership, an empirical study (...) is conducted in which a good performance of the "leader-follower" relationship is reflected when individuals perceive ethical leadership in higher hierarchical managerial levels. To be precise, findings of this study demonstrate that follower job response is improved through an ethics trickle-down partial effect from the Top Manager to the immediate supervisor, and also reveal both key aspects and managerial level on which the practice of ethical leadership should rest upon to have a stronger effect on the follower positive job response. Practical implications of these findings and directions for future research are finally presented. (shrink)

The research described here contributes to the extant empirical research on business ethics education by examining outcomes drawn from the literature on positive organizational scholarship (POS). The general research question explored is whether a course on ethical decision-making in business could positively influence students’ confidence in their abilities to handle ethical problems at work (i.e., moral efficacy), boost the relative importance of ethics in their work lives (i.e., moral meaningfulness), and encourage them to be more courageous in raising ethical problems (...) at work even if it is unpopular (i.e., moral courage). Specifically, the study used a rigorous quasi-experimental pretest–posttest research design with a treatment (N = 30) and control group (N = 30) to investigate whether a graduate-level course in business ethics could influence students’ levels of moral efficacy, meaningfulness, and courage. Findings revealed that participants in the business ethics treatment course experienced significant positive increases in each of the three outcome variables as compared to the control group. The largest increase was in moral efficacy, followed by moral courage, and finally, moral meaningfulness. These findings are discussed in the context of the current research on business ethics education and POS. Implications for future research are discussed. (shrink)

Despite the general expectation that ethical leadership fosters employees’ ethical behaviors, surprisingly little empirical effort has been made to verify this expected effect of ethical leadership. To address this research gap, we examine the role of ethical leadership in relation to a direct ethical outcome of employees: moral voice. Focusing on how and when ethical leadership motivates employees to speak up about ethical issues, we propose that moral efficacy serves as a psychological mechanism underlying the relationship, and that leader–follower value (...) congruence serves as a boundary condition for the effect of ethical leadership on moral efficacy. We tested the proposed relationships with matched reports from 154 Korean white-collar employees and their immediate supervisors, collected at two different points in time. The results revealed that ethical leadership was positively related to moral voice, and moral efficacy mediated the relationship. Importantly, as the relationship between ethical leadership and moral efficacy depended on leader–follower value congruence, the mediated relationship was effective only under high leader–follower value congruence. Theoretical and practical implications are discussed. (shrink)

The study explores the use of Graphic Novels as an innovative form of training that may improve an individual’s ethical efficacy. A quantitative comparison of the graphic novel method and the traditional written case study is analyzed. The literature on ethics, graphic novels, and training are brought together from theories of narrative and literature perspective to formulate a study. The study uses a 2 × 2 repeated-measure MANOVA to analyze the participant’s reaction to bribery situations based on varying levels of (...) ‘grayness.’ The overall study finds that ethical efficacy increases with the use of the graphic novel method. The greatest improvements are in the individual’s level of self-efficacy and understanding of principle-based ethical issues. In addition, the participant’s level of industry experience may play a factor in applying the graphic novel technique. Finally, guidelines on how to effectively utilize the graphic novel method are stated. Improving ethical efficacy through business ethics training may help improve an individual’s self-efficacy, involvement and principle-based understanding. The study explores the use of Graphic Novels as an innovative form of training that may improve an individual’s ethical efficacy. A quantitative comparison of the graphic novel method and the traditional written case study are analyzed. Literature on ethics, graphic novels, and training are brought together with theories of narrative and literature perspective to formulate a study. The study uses a 2 × 2 repeated-measure MANOVA to analyze the participant’s reaction to bribery ethical situations based on varying levels of ‘grayness.’ The overall study finds that ethical efficacy increases with the use of the graphic novel method. The greatest improvements are in the individual’s level of self-efficacy and understanding of principle-based ethical issues. In addition, the participant’s level of industry experience may play a factor in applying the graphic novel technique. Finally, guidelines on how to effectively utilize the graphic novel method is set forth. (shrink)

John R. Boatright, editor of this volume, draws together the contributions of distinguished scholars from a wide range of disciplines--including finance, ...