Showing papers in "Journal of Business Ethics in 1994"
TL;DR: In this article, the authors review the empirical literature in order to assess which variables are postulated as influencing ethical beliefs and decision making and divide them into those unique to the individual decision maker and those considered situational in nature.
Abstract: 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.
1,121 citations
TL;DR: In this article, the conceptual relationship between ethical climate and ethical behavior in organizations is examined, and supervision is shown to be one of the principle influences on ethical climate, and concomitant subordinate behavior.
Abstract: In recent years, theoretical and empirical developments in the area of organizational climate has provided the impetus for research concerning ethical climate. According to this latter research, ethical climate is a multi-dimensional construct which is manifested in organizations. Studies, however, have not focused on the relationship between ethical climate and ethical behavior. Furthermore, an enhanced understanding of the multi-dimensionality of ethical climate will likely advance what we know about organizational climate and culture in general. We propose further examination of ethical climate by: (1) showing the conceptual relationship between ethical climate and ethical (or unethical) behavior in organizations; and (2) examining supervision as one of the principle influences on ethical climate and concomitant subordinate behavior. Finally, we explore the implications for future research on ethical climate.
453 citations
TL;DR: In this article, the influence of ethical fit on employee attitudes and intentions to turnover was examined and it was found that ethical fit was significantly related to turnover intentions, continuance commitment, and affective commitment, but not to job satisfaction.
Abstract: This study examines the influence of ethical fit on employee attitudes and intentions to turnover. The results of this investigation provides support for the conjecture that ethical work climate is an important variable in the study of person-organization fit. Ethical fit was found to be significantly related to turnover intentions, continuance commitment, and affective commitment, but not to job satisfaction. Results are discussed in regard to some of the affective and cognitive distinctions among satisfaction, commitment, and behavioral intentions.
268 citations
TL;DR: The dramatic increase in the number of corporate ethical codes over the past 20 years has been attributed to the Watergate scandal and the Foreign Corrupt Practices Act as mentioned in this paper, however, little information is available about how codes are communicated, whether they are accepted and used by employees, and whether they affect employee/corporate behavior.
Abstract: The dramatic increase in the number of corporate ethical codes over the past 20 years has been attributed to the Watergate scandal and the Foreign Corrupt Practices Act. Ethical codes differ somewhat from profesional codes and mission statements; yet the terms are frequently interchanged and often confused in the literature. Ethical code studies are reviewed in terms of how codes are communicated to employees and whether implications for violating codes are discussed. Most studies use content analysis to determine subjects in codes. Little information is available about how codes are communicated, whether they are accepted and used by employees, and whether they affect employee/corporate behavior. More research on ethical codes is needed to answer some of these questions.
254 citations
TL;DR: In this article, four groups representing four distinct ethical ideologies were created based on the two dimensions of the Ethical Position Questionnaire (idealism and relativism), as posited by Forsyth (1980).
Abstract: Differences in ethical ideology are thought to influence individuals' reasoning about moral issues (Forsyth and Nye, 1990; Forsyth, 1992). To date, relatively little research has addressed this proposition in terms of business-related ethical issues. In the present study, four groups, representing four distinct ethical ideologies, were created based on the two dimensions of the Ethical Position Questionnaire (idealism and relativism), as posited by Forsyth (1980). The ethical judgments of individuals regarding several business-related issues varied, depending upon their ethical ideology.
248 citations
TL;DR: The authors examined the extent to which business students from Canada, Japan, Hong Kong, and Taiwan react differently to ethical dilemmas involving employees, supervisors, customers, suppliers, and business rivals.
Abstract: This study examines the extent to which business students from Canada, Japan, Hong Kong, and Taiwan react differently to ethical dilemmas involving employees, supervisors, customers, suppliers, and business rivals. The empirical results show that the national origin of the students does have an impact on their reactions to particular ethical dilemmas. In addition, the results indicate that controlling for the problem of social desirability response bias is important to ensure the validity of the empirical findings.
193 citations
TL;DR: There has been much concern, opinion, and data in recent years documenting the decline in ethical behavior of people in America today (Magnet, 1986). This is no longer a debate as it once was (Behrman, 1988).
Abstract: There has been much concern, opinion, and data in recent years documenting the decline in ethical behavior of people in America today (Magnet, 1986). This is no longer a debate as it once was (Behrman, 1988). Empirical studies attempting to statistically use data to support their conclusions are fairly con sistent in reaching these same conclusions (Walton, 1988). Popular opinion polls among the general public are also saying the same thing, namely, that morals in general are declining in America, and that, specifically, business ethics have been on the decline for several decades-although there is some debate about whether this is changing now in the early 1990s (Ricklefs, 1983 and 1983;Bowen, 1987). A subset issue related to the larger documented ethical decline phenomena is the relatively unre searched but often conjectured question of whether women are more ethical than men. The general feeling among almost anyone you ask is that females are more moral (Jackall, 1988). Both men and women today commonly believe that females are more ethi cal than males. Studies are available which document
190 citations
TL;DR: In this paper, a model of potential determinants of softlifting behavior is developed and tested, and the analysis provides some support for the hypothesized model, specifically situational variables, such as delayed acquisition times, and personal gain variables such as the challenge of copying.
Abstract: Softlifting (software piracy by individuals) is an unethical behavior that pervades today's computer dependent society. Since a better understanding of underlying considerations of the behavior may provide a basis for remedy, a model of potential determinants of softlifting behavior is developed and tested. The analysis provides some support for the hypothesized model, specifically situational variables, such as delayed acquisition times, and personal gain variables, such as the challenge of copying, affect softlifting behavior. Most importantly, the analysis indicated that ethical perception of softlifting has no significant affect on softlifting behavior. These findings suggest major implications for both software manufacturers and academicians attempting to reduce piracy behavior through ethics instruction.
184 citations
TL;DR: In this article, the authors examined the possible relationship between widespread unauthorized copying of microcomputer software (also known as software piracy) and level of moral judgment through analysis of over 350 survey questionnaires that included the Defining Issues Test as a measure of moral development.
Abstract: The possible relationship between widespread unauthorized copying of microcomputer software (also known as software piracy) and level of moral judgment is examined through analysis of over 350 survey questionnaires that included the Defining Issues Test as a measure of moral development. It is hypothesized that the higher one's level of moral judgment, the less likely that one will approve of or engage in unauthorized copying. Analysis of the data indicate a high level of tolerance toward unauthorized copying and limited support for the hypothesis. The most plausible explanation for these findings is that software copying is perceived as an issue of low moral intensity. This study calls into question the software industry's strategy of concentrating exclusively on institutional compliance with copyright rules, rather than working to raise the perceived moral intensity about software piracy at the individual level. As long as the issue remains low in moral intensity, the industry cannot expect significant shifts in copying behaviors. Individuals must become more aware of and concerned about the nature and magnitude of harm to society and to the rightful copyright owners from unauthorized copying before their attitudes and behaviors come to reflect higher levels of moral judgment.
173 citations
TL;DR: The authors argue that corporations do need to find moral justifications for their moral activities and to ensure that corporate social responsibility practice lives up to the claims made by public relations practitioners, and they suggest that corporations only take such actions when they feel compelled to do so by consumerist and environmentalist lobbies.
Abstract: The paper questions current assumptions about the benefits of corporate social responsibility and the claims that corporations make on behalf of their corporate social responsibility programmes. In particular, the paper suggests that the use of corporate social responsibility for public relations ends raises moral problems over the motivation of corporations. The paper cautions that the justifications which corporations employ may either be immoral or inaccurate with regard to the empirical evidence gained from a small-scale qualitative study carried out in the UK at a time when the practice of corporate social responsibility was expanding quickly (1989). It is noticeable, in retrospect, that great emphasis is placed upon environmental rather than social responsibility. This implies that organisations are primarily reactive in their development of corporate social responsibility programmes and that they respond to external pressures rather than working out the nature of their corporate responsibilities. It might suggest that corporations only take such actions when they feel compelled to do so by consumerist and environmentalist lobbies. The paper argues that corporations do need to find moral justifications for their moral activities and to ensure that corporate social responsibility practice lives up to the claims made by public relations practitioners. The paper explores the nature of public relations and illustrates how its responsibility for corporate social responsibility extends beyond truthfulness in publicity.
162 citations
TL;DR: This paper examined the relationship between consumers' ethical beliefs and personality traits and found that individuals with high needs for autonomy, innovation, and aggression, as well as individuals with a high propensity for taking risks tend to have less ethical beliefs concerning possible consumer actions.
Abstract: The present study examines the relationships between consumers' ethical beliefs and personality traits. Based on a survey of 295 undergraduate business students, the authors found that individuals with high needs for autonomy, innovation, and aggression, as well as individuals with a high propensity for taking risks tend to have “less ethical” beliefs concerning possible consumer actions. Individuals with a high need for social desirability and individuals with a strong problem solving coping style tend to have “more ethical” beliefs concerning possible consumer actions. The needs for achievement, affiliation, complexity and an emotion solving coping style were not significantly correlated with consumer ethical beliefs.
TL;DR: In this paper, four dimensions of corporate citizenship (orientations, organizational stakeholders, issues, and decision-making autonomy) were used to compare the inclinations of foreign affiliates with the domestic firms operating in the U.S. chemical industry.
Abstract: As foreign direct investment in the U.S. continues to become both more visible and controversial, the general public remains skeptical about the corporate citizenship of these foreign affiliates. Four dimensions of corporate citizenship — orientations, organizational stakeholders, issues, and decision-making autonomy — were used to compare the inclinations of foreign affiliates with the domestic firms operating in the U.S. chemical industry. The only significant differences between the U.S. sample and those firms headquartered in other countries-of-origin were found in the area of corporate citizenship decision making autonomy.
TL;DR: This paper investigated the ethical beliefs, preferred ethical ideology, and degree of Machiavellianism of consumers from Egypt and Lebanon and found that consumers in Lebanon tend to be more Machiavelian, less idealistic, and more relativistic than their Egyptian counterparts.
Abstract: Research investigating the consumer's ethical beliefs, ideologies and orientation has been limited. Additionally, despite the repeated call in the literature for cross cultural research, virtually no studies have examined the ethical beliefs and ideologies of consumers from cultures other than those in North America. This study partially fills this “gap” in the literature by investigating the ethical beliefs, preferred ethical ideology, and degree of Machiavellianism of consumers from Egypt and Lebanon. The results indicate that consumers in Lebanon, which has been torn by civil unrest and terrorism, tend to be more Machiavellian, less idealistic, and more relativistic than their Egyptian counterparts. Additionally, the Lebanese consumers tend to be more accepting of “questionable” consumer practices.
TL;DR: In this article, the authors compare and contrast two distinct techniques for measuring moral judgment: the Moral Judgment Interview and the Defining Issues Test and discuss the theoretical foundations, accompanying advantages and limitations, as well as appropriate usage of these methodologies.
Abstract: This paper compares and contrasts two distinct techniques for measuring moral judgment: The Moral Judgment Interview and the Defining Issues Test. The theoretical foundations, accompanying advantages and limitations, as well as appropriate usage of these methodologies are discussed. Adaptation and use of the instruments for business ethics research is given special attention.
TL;DR: In this paper, the authors present the history and criticisms of cognitive moral development (CMD) theory and evaluate the value of CMD as a predictor of ethical decisions in business ethics.
Abstract: Cognitive moral development (CMD) theory has been accepted as a construct to help explain business ethics, social responsibility and other organizational phenomena. This article critically assesses CMD as a construct in business ethics by presenting the history and criticisms of CMD. The value of CMD is evaluated and problems with using CMD as one predictor of ethical decisions are addressed. Researchers are made aware of the major criticisms of CMD theory including disguised value judgments, invariance of stages, and gender bias in the initial scale development. Implications for business ethics research are discussed and opportunities for future research delineated.
TL;DR: In this paper, the authors cross the disciplinary boundaries of strategic management and social issues management to demonstrate the relationship between managerial characteristics and corporate social performance (CSP), and develop and test hypotheses about linkages between top management attributes and different levels of CSP.
Abstract: This paper attempts to cross the disciplinary boundaries of strategic management and social issues management to demonstrate the relationship between managerial characteristics and corporate social performance (CSP). Drawing on studies in strategic leadership research we develop and test hypotheses about linkages between top management attributes and different levels of CSP. Our results add credence to the argument that organizations are a reflection of their top managers, and encourage further systematic research of the influence of key executives in developing and implementing socially responsible policies and programs.
TL;DR: In this article, the existence of ethical conflict at work and the reported inseparability of business decisions and moral consequences are discussed. But to date, the majority of studies have been conducted in the American business context.
Abstract: 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.
TL;DR: In this paper, the authors examine how personal values influence people's judgment of the morality of some workplace behaviours and find that people with different value hierarchies perceived the targeted behaviours differently.
Abstract: 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.
TL;DR: In this article, the authors examined the relationship between the ethical behavior and customer orientation of insurance sales agents engaged in the selling of complex services, e.g. health, life, auto, and property insurance.
Abstract: This study examines the relationship between the ethical behavior and customer orientation of insurance sales agents engaged in the selling of complex services, e.g. health, life, auto, and property insurance. The effect of ethical and customer-oriented behavior, measured by the SOCO scale (Saxe and Weitz, 1982), on the annual premiums generated by the agents is also investigated. Customeroriented sales agents are found to engage in less unethical behavior than their sales-oriented counterparts. Further, sales-oriented agents are found to perceive greater levels of unethical behavior among their significant others. Alarmingly, higher levels of sales premiums are found among those agents who engage in unethical behavior.
TL;DR: In this article, the influence of personal and organizational values on marketing professionals' ethical behavior was examined empirically, and it was found that personal values underlie differences in marketing professionals" ethical behavior, albeit "small" terms of the proportion of explained variance.
Abstract: The authors examine empirically the influence of personal and organizational values on marketing professionals' ethical behavior. The results indicate that personal and organizational values underlie differences in marketing professionals' ethical behavior, albeit “small” terms of the proportion of explained variance. The results also suggest the relationship between organizational values and ethical behavior to be significant. However, the same is not the case for the relationship between personal values and ethical behavior.
TL;DR: A discussion of traditional teleology, often referred to as "virtue ethics" as discussed by the authors, can be used to focus on the individual's role within an organization and expose students and faculty to traditional teleologies and its place in business ethic discussions.
Abstract: Current discussions of business ethics usually only consider deontological and utilitarian approaches. What is missing is a discussion of traditional teleology, often referred to as “virtue ethics.” While deontology and teleology are useful, they both suffer insufficiencies. Traditional teleology, while deontological in many respects, does not object to utilitarian style calculations as long as they are contained within a moral framework that is not utilitarian in its origin. It contains the best of both approaches and can be used to focus on the individual's role within an organization. More work is needed in exposing students and faculty to traditional teleology and its place in business ethic's discussions.
TL;DR: This paper used three perspectives (institutional theory, economic theory and agency theory) to explain corporate social responsiveness (CSR) and found that stock market measures and accounting measures will respond differently to CSR measures.
Abstract: Most studies of corporate social responsiveness (CSR) focus on the relationship between CSR and profit. Here, we use three perspectives (institutional theory, economic theory and agency theory) to explain CSR. Industry norms, market share and indicators of management reputation predict variance in CSR. The combined perspectives improve understanding of both CSR and the CSR-profit relationship in two ways. First, they suggest that CSR levels and their relationship with profit will vary by industry. Second, they suggest that stock market measures and accounting measures will respond differently to CSR measures. Stock market measures lead, while accounting measures lag, CSR.
TL;DR: The authors examines some recent events relating to audit failures and alleged unprofessional conduct by accountancy firms and their partners in the UK with a view to assessing the validity of the claims to professional status.
Abstract: The UK accountancy industry has traded upon its professional status as a means of expanding and legitimating its activities. Extensive appeals are made to ethical codes and disciplinary arrangements as part of its claim to professional status. This study examines some recent events relating to audit failures and alleged unprofessional conduct by accountancy firms and their partners in the UK with a view to assessing the validity of the claims to professional status. It concludes that the rhetoric of the claims is belied by the failure/inability of the professional accountancy bodies to take effective action against the offending firms or their partners.
TL;DR: In this article, the authors investigate the differences in ethical perceptions of Australian and Hong Kong international managers with respect to different industry types, cultures and modes of entry into international markets and find that culture and mode of entry have a significant effect on the perception of ethical problems.
Abstract: The authors investigate the differences in ethical perceptions of Australian and Hong Kong international managers. Ethical perceptions are measured with respect to different industry types, cultures and modes of entry into international markets. Mode of entry refers to how firms select to enter foreign markets. Modes of entry include: exporting (indirect or direct), contractual methods (licensing and franchising) and via direct foreign investment (joint ventures and wholly-owned subsidiaries). It was determined that culture and mode of entry have a significant effect on the perception of ethical problems.
TL;DR: In this paper, the authors suggest and illustrate role play as an appropriate method for integrating ethical concerns in business education, and illustrate the benefits of role play in the context of business education.
Abstract: Calls for increasing integration of ethical considerations into business education are well documented. Business graduates are perceived to be ethically naive at best, and at worst, constrained in their moral development by the lack of ethical content in their courses. The pedagogic concern is to find effective methods of incorporating ethics into the fabric of business education. The purpose of this paper is to suggest and illustrate role play as an appropriate method for integrating ethical concerns.
TL;DR: In this article, a cross-cultural analysis of ethics with U.S. and Hong Kong Chinese managers as subjects was presented, where managers were given the Strategies of Upward Influence instrument and asked to evaluate the ethics of using various political strategies to attain influence within their organizations.
Abstract: This paper presents a cross-cultural analysis of ethics with U.S. and Hong Kong Chinese managers as subjects. These managers were given the Strategies of Upward Influence instrument and asked to evaluate the ethics of using various political strategies to attain influence within their organizations. Differences were found between Hong Kong and U.S. managers on a variety of dimensions, indicating important differences between these two groups on their perceptions of ethical behavior. In the paper, we identify potential reasons for the findings, and suggest directions for future work in this area.
TL;DR: In this paper, the authors examined the constraining effect of economic performance on the relationship between CEO stakeholder orientations and four pollution performance categories and found that economic performance was consistently interact with some CEO stakeholders orientations, and not others.
Abstract: This study examined the constraining effect of economic performance on the relationship between CEO stakeholder orientations and four pollution performance categories. Economic performance was found to moderate the relationship for two of the four categories. Additionally economic performance was found to consistently interact with some CEO stakeholder orientations and not others. Overall the results suggest that CEO concern with stakeholder expectations is in large part moderate by the economic performance of the firm.
TL;DR: In this meta-learning approach, students learn by becoming active participants in an “honorable” business school community where real ethical issues are openly discussed and acted upon.
Abstract: We propose extending business ethics education beyond the formal curriculum to the “hidden curriculum” where messages about ethics and values are implicitly sent and received. In this meta-learning approach, students learn by becoming active participants in an “honorable” business school community where real ethical issues are openly discussed and acted upon. When combined with formal ethics instruction, this meta-learning approach provides a framework for a proposed comprehensive program of business ethics education.
TL;DR: In this article, the authors examined a sample of 535 announcements of corporate crime and obtained an overall insignificant stock market reaction, however, when the sample is divided by type of crime, they found that the stock market reacts significantly to announcements of bribery, tax evasion, and violations of government contracts.
Abstract: Extending the work of Davidson and Worrell (1988), we further investigate the stock market's reaction to announced corporate illegalities. We examine a sample of 535 announcements of corporate crime and obtain an overall insignificant stock market reaction. However, when the sample is divided by type of crime, we find that the stock market reacts significantly to announcements of bribery, tax evasion, and violations of government contracts. We also find a significantly negative reaction to announcements of corporate crime when the company had been previously accused of other illegal activity. For companies accused of crime in the 1970s, 51% of them were accused again in the 1980s.
TL;DR: In this paper, a model integrating the self-interest and role conflict theories was proposed to reconcile the benefit from lying and the conflicting role demands, which showed that both elements influenced lying, separately and interactively.
Abstract: The self-interest paradigm predicts that unethical behavior occurs when such behavior benefits the actor. A recent model of lying behavior, however, predicts that lying behavior results from an individual's inability to meet conflicting role demands. The need to reconcile the self-interest and role conflict theories prompted the present study, which orthogonally manipulated the benefit from lying and the conflicting role demands. A model integrating the two theories predicts the results, which showed that both elements — self benefit and role conflict — influenced lying, separately and interactively. Additionally, the relative strength of the roles in conflict affected their level of influence. Theoretical and practical implications are discussed.