Head-heart disparity among future managers: Implications for ethical conduct

An examination of the ethical perceptions of business students using Macobby's head/heart traits and a comparison to earlier studies of managers, accountants, and business students is made. The data were collected at three universities that are similar in size, enrollment and degree programs within the College of Business. Results indicate that present day business students are no less ethically inclined than are their business counterparts in previous eras. In general head traits dominated over heart traits, an indication that business schools continued to do a good job emphasizing and developing analytical skills but a poor job of developing the qualities of the heart that are generally associated with ethical behavior. The implications of these findings are discussed.     

The Impact of Business Education on Moral Judgment Competence: An Empirical Study

Recent highly publicized ethical breaches including those at Enron and WorldCom have focused attention on ethical behavior within the accounting profession. At the heart of the debate is whether ethical attitudes of accountants are to blame. Using a nationally representative sample of accounting practitioners and a multidisciplinary student sample at two Southern United States universities, we compare sample responses to 25 ethically charged vignettes to test whether they differ. Overall, we find no significant difference – even for a specific “accounting tricks” vignette, which resembles the Enron and WorldCom situations. We do find, however, that the practitioners were more accepting of vignettes that involved physical harm (PH) to individuals and those that were legal (but ethically questionable). We postulate that accounting practitioners may apply a legalistic framework to their assessment of the acceptability of each vignette. Focusing on an “accounting tricks” vignette, we also find no significant difference between auditors and institutional practitioners compared to all other types of accountants in the sample. We conclude that ethical attitudes of accounting practitioners do not differ significantly by specialty area. Tisha L. N. Emerson is an Assistant Professor of Economics at Baylor University in Texas. In addition to business ethics, Professor Emerson has published articles in the areas of environmental economics and economic education. She teaches courses in environmental economics, international trade, intermediate microeconomics and microeconomic principles. Stephen J. Conroy is an Associate Professor of Economics at the University of San Diego in California. In addition to business ethics, Professor Conroy has published articles in the areas of economic development and demography, economics of education and economics of aging. He teaches courses in managerial economics at both the graduate and undergraduate level, as well as undergraduate courses in urban and regional economic development, intermediate microeconomics and principles of micro- and macroeconomics. Charles W. Stanley is an Associate Professor of Accounting at Baylor University in Texas. In addition to business ethics, Dr. Stanley has published articles in the areas of financial accounting, managerial accounting, auditing, accounting systems, tax, and professional ethics for accountants. He has also authored several on-line continuing education courses for CPAs including one that meets the Texas State Board of Accountancy requirements for continuing education by Texas CPAs. He teaches courses in auditing, ethics, financial accounting and managerial accounting in the MBA program at Baylor.     

Gender Differences in Ethical Perceptions of Salespeople: An Empirical Examination in Turkey

Researchers on gender and ethical decision-making have recently emphasized the differences between men's and women's ethical perceptions. This study is concerned with the perceptions of salespeople working in clothing and medical equipment sectors in Turkey. It regards the perceptions of colleagues of opposing genders in ethically questionable situations. The evaluation of salespeople's responses for 14 ethical scenarios indicates that there is no significant difference in ethical perception based on gender. Each gender predicted that their counterpart's response would be the same as their own. The study also examined the effects of some demographic factors as well as the firm's sector on the salespeople's ethical perceptions and found that there are both differences and similarities in detail between genders of salespeople within ethically questionable situations.     

Ethical Ideology and the Ethical Judgments of Marketing Professionals

The present study extends the study of individuals' ethical ideology withinthe context of marketing ethics issues. A national sample of marketing professionals participated. Respondents' ethical ideologies were classified as absolutists, situationists, exceptionists, or subjectivists using the Ethical Position Questionnaire (Forsyth, 1980). Respondents then answered questions about three ethically ambiguous situations common to marketing and sales. The results indicated that marketers' ethical judgments about the situations differed based on their ethical ideology, with absolutists rating the actions as most unethical. The findings are consistent with those of two earlier studies that utilized samples of business students (Barnett et al., 1994, 1995). The results suggest that personal moral philosophy is an important influence on ethical decision making that should be considered in empirical studies of business ethics. The results also support the utility of the Ethical Position Questionnaire (Forsyth, 1980) as a means for researchers and practitioners to assess individuals' ethical ideology.     

The Effect of Firm Profit versus Personal Economic Well Being on the Level of Ethical Responses Given by Managers

Members of organizations are continually making decisions that have important consequences for themselves and the firms for which they work. In some cases these decisions affect human well being and social welfare and thus have important ethical impacts for those affected by the decisions.This study examines if certain strategic situations (enhancement of firm profits versus personal economic well being) cause decision makers to act more or less ethically. A questionnaire consisting of two vignettes which depicted actual business situations was used to collect data from 171 managers of a large Southeastern financial and communication conglomerate. Results from multivariate repeated measures tests suggest that managers will vary their level of ethical response when faced with a situation where their own economic well being is at stake.     

An applied ethical analysis system in business

Much of the discussion on business ethics is philosophical in nature. There is no lack of theories and ideals on moral reasoning. What is missing is translating these moral theories and principles into specific, operational procedures that can indicate a proper course of action. Although most business actions are routine and do not raise serious ethical questions, many people experience difficulty in applying their personal moral principles to specific business decisions in ethically-dilemmatic situations.This study seeks to develop a framework that can be utilized to implement personal moral reasoning based on the teleological theory of Utilitarianism and the deontological theory of Ross's Prima Facie Duties in the business decision-making process. The central feature in the framework is a point-system that quantities the ethical worth of a proposed business action and determines whether the action would be ethically desirable if taken. It provides an objective element in an otherwise qualitative ethical inquiry process. This study also illustrates practical applications of the system by analyzing the ethical implications of a proposed action where foreign bribery is involved.Alan Wong is Assistant Professor of Finance, Indiana University Southeast. His areas of academic research are managerial ethics and financial options. He has published in theReview of Business and Economic Research.Eugene Beckman is the Director of the MBA Program at Indiana University Southeast. He was awarded the Faculty Excellence Award in 1989 and his primary areas of research are business ethics and marketing.     

Organizational influence in a model of the moral decision process of accountants

This paper reports on a survey that investigated the moral decision processes of accountants. A formal belief revision model is adapted and hypotheses based on theorizations from the cognitive-developmental school are tested. The moral decision processes of accountants are hypothesized to be influenced by professional expectations, organizational expectations and internalized expectations. Subjects provided specific demographic data and were asked to access the appropriateness of fourteen principles for making moral decisions in business. Subjects were also asked to indicate which of the fourteen approaches would be most appropriate for resolving each of five ethical situations that are representative of common ethical dilemmas in accounting.Subjects' responses to the appropriateness of the fourteen principles are reduced to two dimensions using factor analysis. The factors are consistent and representative of important underlying dimensions of the stages of moral development. Demographic variables are correlated with the extracted factors using analysis of variance.The results show that subjects consider interpersonal expectations and conformity to be more appropriate than approaches that are self-serving. These findings suggest that ethical decision processes of accountants are influenced by organizational support. Age, gender, and education were also found to influence the moral decision process. Overall, the findings are consistent with the expectations hypothesized from the cognitive-developmental school and suggest that the moral development of accountants is ongoing.     

The Role of Mere Exposure Effect on Ethical Tolerance: a Two-Study Approach

This paper reports on the results from two studies that were conducted eight years apart with different respondents. The studies examined the role of the Mere Exposure Effect on ethical tolerance or acceptability of particular business decisions. The results from Study 1 show there is a significant difference in ethical judgment for 12 out of 16 vignettes between those who have been exposed to such situations compared to those who have not been exposed to them. In those 12 situations, those who have been exposed to such situations adopted a more tolerant stance toward the ethically questionable behavior. The results from Study 2 show there is a significant difference in ethical judgment for 9 out of 16 vignettes between those who have been exposed to such situations compared to those who have not been exposed to them. Again, in those nine situations, those who have been exposed to such situations adopted a more tolerant stance toward the ethically questionable behavior. Interestingly, the 9 situations in Study 2 were 9 of the 12 situations found to be significant in Study 1, and in the same direction, suggesting that we have found consistency in our findings and support for the Mere Exposure Effect. Implications are provided for both higher education and practitioners.     

A comparison of ethical evaluations of business school faculty and students: A pilot study

This paper reports the results of a pilot study of differences in ethical evaluations between business faculty and students at a Southern university. Data were collected from 137 business students (46 freshmen and 67 seniors) and 34 business faculty members. Significant differences were found in 7 of the 30 situations between freshmen and faculty and four situations between seniors and faculty. When the combined means for each group were tested, there was no significant difference in the means at the 0.05 level of significance. A trend was revealed, however, in that the majority of the time faculty members were the most ethically oriented followed by seniors and then freshmen.Dr. Robert E. Stevens is Professor of Marketing at Northeast Louisiana University and is the author of 11 books and more than 80 articles. Dr. Stevens has served as a consultant to local, regional, and national firms for research projects, feasibility studies, and market planning, and has been a partner in a marketing research company.Dr. O. Jeff Harris is Professor of Management at Northeast Louisiana University. Prior to coming to Northeast, he taught at Louisiana State University, the University of Arkansas, and the University of Texas. Professor Harris has written three books and numerous articles and position papers. He is a consultant to many health care and processing organizations.Dr. Stan Williamson is an assistant professor of management at Northeast Louisiana University. He teaches strategy, human resource management, and management principles. Before this, he served as a senior executive for a regional health care system for 13 years and as a consultant in the health care field.     

Does believing that everyone else is less ethical have an impact on work behavior?

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.Thomas Tyson is Associate Professor of accounting at St. John Fisher College in Rochester, New York. Dr. Tyson earned his Doctors degree in Accounting and Masters degrees in Business Administration, and Counseling Education. He has published articles in a variety of academic and professional journals includingThe Journal of Business Ethics, andManagement Accounting. Two of hisManagement Accounting articles received Certificate of Merit awards.     

Hospitality Ethics: Responses from Human Resource Directors and Students to Seven Ethical Scenarios

This study examines the responses of human resource directors and hospitality students to seven different ethical scenarios. Both groups were asked to rate these situations on their ethicality using a Likert-type scale. The directors and students decided that an act of theft was the most unethical, followed by sexual harassment, and an attempt to obtain proprietary information from another company. Expressing racial preferences in terms of servers was fourth. Directors rated all the scenarios ethically lower than did students, indicating that experience and heightened sensitivity to possible litigious situations may have played a role in perceptual differences.     

Attitudes of Future Managers Towards Business Ethics: A Comparison of Finnish and American Business Students

The cross-cultural survey presented here examines the attitudes towards business ethics of Finnish and American business students from the Southern states. The findings indicate that the differences between the attitudes of these groups are small and essentially linked to the strength of their position. Both see deliberation on moral issues as part of a business manager's job and believe that managers should participate in the solving of social problems. Both Finns and Americans make a distinction between acting legally and ethically, and both endorse cultural relativism.     

The Current Link Between Management Behavior and Ethical Philosophy

The current linkages between ethical theory and management behavior are investigated. The vignettes used in this investigation represent ethical dilemmas in the areas of coercion and control, conflict of interest, physical environment, and personal integrity. Overall, even with heightened ethical awareness the link between ethical philosophy and management behavior remains similar to that of the early 1990s. Generally, practitioners still rely heavily on the utilitarian ethical philosophy when making business decisions. However, more managers are now likely to select ethically appropriate actions either because it is ethical to do so, or because the consequences or risk of not doing so are too great. This shift could positively impact the ethical climate of business decision-making.     

Questioning guanxi: definition,classification and implications

Despite the growing interests among both academics and practitioners in the west, the concept of guanxi is not much questioned and there is considerable confusion about its implications for business. This paper explores the nature of guanxi by using a multiple definition approach. It defines guanxi as the process of social interactions and argues that the existence of guanxi base (special relationship) does not produce guanxi. The paper classifies guanxi into three categories: family, helper and business; and critically examines the role of guanxi in business. The paper has drawn up some important conclusions. (1) The potential benefits of guanxi are mainly tactical rather than strategic. (2) Guanxi, as a personal asset, cannot be a source of competitive advantage. (3) The guanxi between a businessperson and a government official is inherently corrupt and ethically questionable. (4) As guanxi has an impact on the wider public, it should be studied in the context of all stakeholders. (5) It is more than likely that guanxi’s role in business will eventually diminish as China moves towards an open market system.     

Ethics of business students: Some marketing perspectives

This study explores the reactions of 412 business students to a range of ethical marketing dilemmas. Reviewing some of the comparable Australian and U.S. research in the field, the study examines the ethical judgements for potential demographic differences. The findings suggest that a majority of students are prepared to act unethically in order to gain some competitive or personal advantage. Yielding the highest ethical response are situations of potential and significant social impact. The results support some previous research that shows the existence of gender and age differences in ethical response and likely behaviour. This (gender) difference was most divergent on the issue of portrayal of women in advertising. In particular, females and older students respond more ethically in a majority of situations. The research concludes a number of opportunities for new directions in education, public policy making and further research.Jim Lane is Senior Lecturer in marketing at the Southern Cross University, Lismore, N.S.W., Australia. He lectures in Marketing at the M.B.A. and undergraduate levels, and has recently introduced Ethics to his Faculty's Marketing curricula. Research interests include ethics, corporate identity and positioning, and he has previously published in the Australian Marketing Institute'sMarketing journal.     

Personal values of accountants and accounting trainees in Cyprus

Accountants are neither devoid of ethical dilemmas nor are they immune from financial scandals. In order to improve the credibility of the profession, it is important to study the personal values that qualified and trainee accountants consider important. Using Maccoby's instrument, which measures ‘head’ and ‘heart’ values, qualified accountants (chartered and certified) and trainee accountants were surveyed for the first time in a European Union member country (Cyprus) to ascertain their character ethical traits/personal values. Accountants were found to value ‘head’ more than ‘heart’ traits and there were no gender differences. For male respondents, age and years of professional experience were significant correlates of the importance attributed to head traits, while having religious beliefs was associated with valuing heart traits more. Finally, the implications for accounting education and the professional bodies are considered.     

The challenge of preparing ethically responsible managers: Closing the rhetoric-reality gap

This article begins by questioning the commitment of business, government, and education leaders to the goal of ensuring that our public and private sector organizations are directed by ethically responsible individuals. Noting that while there appears to be genuine concern with the most recent outbreak of ethical failings as well as widespread support for the concept of morally and ethically educated current and future managers, there is less agreement on the most efficient and effective means of realizing this goal. For perspective purposes, recent research findings and opinions of leaders in higher education and business on the issue of ethics and the curriculum are highlighted. This paper challenges business, government, and higher education to disengage the “cheap” talk and to engage in a collaborative effort to develop a required, team-taught, interdisciplinary business ethics course based on philosophical inquiry, organizational theory, and actual business situations. Course goals, content, leadership, and benefits to students, managers, and ethicists are identified and discussed. Perhaps the failure of America's higher education institutions in preparing ethically responsible future leaders of business and government reflects the inability to “teach” ethics under any format. Could the problem be, however, that the approaches, to date, have not sufficiently incorporated the talents and experiences of line managers in conjunction with the theoretical frameworks of moral philosophers? This relatively simple conceptual approach, though admittedly difficult to successfully implement, is offered as a means of closing the business ethics rhetoricreality gap.     

The Effect of Organizational Culture and Ethical Orientation on Accountants' Ethical Judgments

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.     

Marketing Accounting Services in the U.S. and Norway

Abstract

This study compares the general perceptions of marketing and the marketing experiences and training by accountants in the United States and Norway. The results of this study indicate there are differences in perceptions of marketing held by accountants in the U.S. and Norway and in their marketing practices. Accountants in the U.S. held stronger opinions on the importance of marketing accounting services, whereas accountants in Norway believed more strongly that reputation for quality work was more important than marketing. Over two-thirds of Norway accountants reported they did not use marketing concepts in their practice while over half of U.S. accountants indicated they did. A majority of Norway accountants indicated they did not need marketing because their clients come to them when they need their services. These findings demonstrate the importance of being cognizant of the differences in marketing professional services as accountants expand their understanding of global business and accounting practices.     

Comparing Attitudes Toward Ethical Dilemmas in Small Business

Abstract

This paper presents a comparative analysis of attitudes between Russian and U.S. undergraduate students on ethical issues in managing Russian small firms engaged in business transactions with U.S. firms. Based on the real life situations, Russian and American respondents were asked to select decision alternatives dealing with ethical dilemmas. Significant differences were found between the two groups. Russians do not recognize significant differences between various alternatives, despite the disparity in the severity of these alternatives for resolving business problems. Russians, compared to Americans, tend to prefer more forceful decision alternatives resorting to business practices that would be considered unethical in the U.S. This is attributable to differences in the countries' history, political, legal, and cultural environment. The transitional nature of the Russian economy affects decision-making and business ethics.