Ethical ideology and ethical judgment regarding ethical issues in business

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.Tim Barnett is Assistant Professor of Management at Louisiana Tech University. He has published in such journals asPersonnel Psychology, theJournal of Business Research, andHuman Relations. His research interests include ethical decision making and ethical issues in HRM.Ken Bass is Assistant Professor of Management at East Carolina State University. He has articles published in several journals, including theJournal of Personal Selling and Sales Management. His research interests include ethical decision making, ethical strategy, and methodology.Gene Brown is Associate Professor Marketing at Louisiana Tech University. He is published in such journals as theJournal of Retailing, the Journal of the Academy of Marketing Science, theJournal of Business Research, Psychology and Marketing, and Industrial Marketing Management. His main interests include personal selling, retailing, ethics, and methodology.     

Consumer Ethics: A Cross-Cultural Study of the Ethical Beliefs of Turkish and American Consumers

The ethical climate in Turkey is beset by ethical problems. Bribery, environmental pollution, tax frauds, deceptive advertising, production of unsafe products, and the ethical violations that involved politicians and business professionals are just a few examples. The purpose of this study is to compare and contrast the ethical beliefs of American and Turkish consumers using the Ethical Position Questionnaire (EPQ) of Forsyth (1980), the Machiavellianism scale, and the Consumer Ethical Practices of Muncy and Vitell questionnaire (MVQ). A sample of 376 subjects that consists of American consumers (n = 188) and Turkish consumers (n = 199) was used to compare the ethical beliefs and practices of the two samples. The MANOVA results for the two nationality groups found that five out of six criterion variables differed between the two groups. The implications of this study are intended to assist marketers to develop strategies that suit a particular market and lessen their risk of entry. Mohammed Y.A. Rawwas is Professor of Marketing at the University of Northern Iowa. He also taught as a Visiting Professor at a range of universities in Japan, France, Austria, Russia, China, Hong Kong, Trinidad and Tobago. His areas of research include ethical and social issues in marketing, cross-cultural studies, marketing education, and supply chain management. He has published extensively across these areas including works in Journal of Business Research, International Marketing Review, Journal of Consumer Ethics, and Journal of Marketing Education, among others.Ziad Swaidan is Assistant Professor of Marketing at the University of Houston-Victoria. He received his Ph.D. from the University of Mississippi. His research has appeared in several journals, including the Journal of Business Ethics, and International Business Review, among others. Mine Oyman is Assistant Professor of Marketing at Anadolu University in Turkey. Her areas of research include consumer ethics, cross-cultural studies, and marketing education. She has presented previous works at a range of international and local conferences.     

Ethical Ideology and Ethical Judgments in the Portuguese Accounting Profession

The purpose of the present study is to examine the attitudes of Portuguese chartered accountants with respect to questions of ethical nature that can arise in their professional activity. Respondents were asked to respond to the Ethics Position Questionnaire developed by Forsyth (Journal of Personality and Social Psychology 39(1), 175–184, 1980), in order to determine their idealism and relativism levels. Subsequently, they answered questions about five scenarios related to accounting practices, with the objective of measuring their ethical judgments. Based on the idealism and relativism levels of our respondents, they were classified into one of four groups, representing different ethical ideologies (absolutism, exceptionism, subjectivism, and situationism). The results indicated that age was the major determinant of relativism. Contrary to previous research, older respondents revealed themselves significantly more relativistic than younger ones. Gender seems to be the most important determinant of ethical judgments; against expectations, men evidenced significantly stricter judgments than women in two of the five scenarios. Findings also indicated that respondents’ ethical judgments did not differ significantly based on their ethical ideology, supporting the idea that ethical ideology is not an important determinant of ethical judgments.     

The Role of Ethical Ideology in Reactions to Injustice

Forsyth (J Pers Soc Psychol 39(1):175–184, 1980) argued that ethical ideology includes the two orthogonal dimensions of relativism and idealism. Relativists determine morality by looking at the complexities of the situation rather than relying on universal moral rules, while idealists believe that positive consequences can always be obtained without harming others. This study examined the role of ethical ideology as a moderator between justice and constructive and deviant reactions to injustice. Students with work experience (N = 200) completed Bennett and Robinson’s (J Appl Psychol 85(3):349–360, 2000) measure of Workplace Deviance, Gill’s (Reactions to injustice: Development and validation of a measure. Unpublished doctoral dissertation, University of Western Ontario, 2005) Reactions to Injustice measure, and the Ethics Position Questionnaire (Forsyth, 1980), and provided ratings of justice in their own workplace. Hierarchical regressions revealed a significant main effect of idealism on deviance and constructive behaviors, and three-way interactions between idealism, relativism, and some types of justice. These findings suggest that ethical ideology plays a significant role in predicting responses to injustice.     

Ethical ideologies: Efficient assessment and influence on ethical judgments of marketing practices

Individuals often differ with respect to their ethical judgments of marketing practices. Personal beliefs are presumably important sources of such differences. This article reports on the development and testing of an original, parsimonious measure of personal moral beliefs based on Forsyth's (1980) taxonomy of ethical ideologies. In contrast to Forsyth's longer, more general measure, the short scale presented here is designed specifically for application in marketing ethics research. Results of three studies suggest that Idealism and Ideological Relativism dimensions can be reliably distinguished and represented by the authors' 7‐item MEI (Marketing Ethical Ideology) scale. Moreover, ethical ideology is shown to influence evaluations of representative ethical problems in marketing. © 2003 Wiley Periodicals, Inc.     

An Empirical Investigation of Japanese Consumer Ethics

One of the gaps in the current international marketing literature is in the area of consumer ethics. Using a sample drawn from Japanese consumers, this study investigates these individuals' reported ethical ideology and their perception of a number of different ethical situations in the realm of consumer behavior. Comparisons are then made across several demographic characteristics. The results reveal differences which provide theoretical support for expanded research in the area of cross-cultural/cross-national consumer ethics and highlight the need for managers to consider possible differences in the ethical behavior of consumers when entering a new international market. In addition, this study extends current knowledge in international marketing ethics by utilizing a research design and survey instruments similar to previous studies on consumer ethics.     

Measuring Ethical Ideology in Business Ethics: A Critical Analysis of the Ethics Position Questionnaire

Individual differences in ethical ideology are believed to play a key role in ethical decision making. Forsyths (1980) Ethics Position Questionnaire (EPQ) is designed to measure ethical ideology along two dimensions, relativism and idealism. This study extends the work of Forsyth by examining the construct validity of the EPQ. Confirmatory factor analyses conducted with independent samples indicated three factors – idealism, relativism, and veracity – account for the relationships among EPQ items. In order to provide further evidence of the instruments nomological and convergent validity, correlations among the EPQ subscales, dogmatism, empathy, and individual differences in the use of moral rationales were examined. The relationship between EPQ measures of idealism and moral judgments demonstrated modest predictive validity, but the appreciably weaker influence of relativism and the emergence of a veracity factor raise questions about the utility of the EPQ typology.     

Explicating Ethical Corporate Marketing. Insights from the BP Deepwater Horizon Catastrophe: The Ethical Brand that Exploded and then Imploded

Ethical corporate marketing—as an organisational-wide philosophy—transcends the domains of corporate social responsibility, business ethics, stakeholder theory and corporate marketing. This being said, ethical corporate marketing represents a logical development vis-a-vis the nascent domain of corporate marketing has an explicit ethical/CSR dimension and extends stakeholder theory by taking account of an institution’s past, present and (prospective) future stakeholders. In our article, we discuss, scrutinise and elaborate the notion of ethical corporate marketing. We argue that an ethical corporate marketing positioning is a prerequisite for corporations which claim to have an authentic ethical corporate identity. Our article expands and integrates extant scholarship vis-a-vis ethical corporate identities, the sustainable entrepreneur and corporate marketing. In delineating the breadth, significance, and challenges of ethical corporate marketing we make reference to the BP Deepwater Horizon (Gulf of Mexico) catastrophe of 2010.     

An Empirical Investigation of the Ethics Position Questionnaire in the People's Republic of China

While many studies have investigated the ethical perceptions, ideologies and value systems of the Chinese, few studies have focused on mainland China, and even fewer have examined regional differences within China. This study examines the factor structure of Forsyth's (1980) Ethics Position Questionnaire in a sample of managers from the PRC. According to Forsyth, individual differences in Relativism and Idealism influence judgements of moral issues (Forsyth, 1980). In a sample of 115 managers, results show that two similar constructs to those described by Forsyth do exist in the Chinese sample. However the precise interpretation of the item groupings through a Chinese perspective, may reveal some discrete areas of difference in the labelling of these constructs. The study also finds that managers in the South of China scored significantly higher in Idealism than managers in the North. Results are presented and implications for future research are discussed.     

Ethical Business and Investment: A Model for Business and Society

Two key questions lie at the heart of the business challenge for business ethics: is it possible for business and investors to do well while doing good; and if so, how can this be achieved? This paper adopts an international investment perspective to address these questions. It demonstrates that it is possible for business and investors to achieve a triple bottom line of environmental, social and financial performance. A new integrated model of Ethical Business including an Ethical Scorecard performance measurement technology is presented based on international ethical investment criteria and case studies of businesses rated highly by ethical investors. Ethical Performance Scores are presented for these businesses and New Zealand business. Examples from New Zealand are presented to illustrate the Ethical Scorecard and ethical business practice. The model and scoring system provide a basis for international benchmarking of ethical business to assist investors, managers and researchers.     

Organizational Ethics,Individual Ethics,and Ethical Intentions in International Decision-Making

This study explores the impact of both individual ethics (IE) and organizational ethics (OE) on ethical intention (EI). Ethical intention, or the individual’s intention to engage in ethical behavior, is useful as a dependent variable because it relates to behavior which can be an expression of values, but also is influenced by organizational and societal variables. The focus is on EI in international business decision-making, since the international context provides great latitude in making ethical decisions. Results demonstrate that both IE and OE influence EI. Ethical congruence is also discussed as a positive influence. Younger managers are more influenced by OE than older managers. The findings call for creating governance mechanisms to enhance ethical congruence, thereby increasing the likelihood of managers making ethical choices in organizational decision-making.     

The Relationship between Unethical Behavior and the Dimensions of the Ethical Climate Questionnaire

This study examined the relationship between unethical employee behavior and the dimensions of the Ethical Climate Questionnaire (ECQ). In order to explore the relationship between the dimensions of the ECQ and unethical behavior, the factor structure of five previously identified empirical models and the hypothesized nine-dimension model for the ECQ was tested with a confirmatory factor analysis. The analysis revealed that the hypothesized nine-dimension model provided as good or even better fit to the data than the five empirically derived models. Therefore, the nine-dimensional model was used to examine the criterion-related validity of the ECQ. The results demonstrated that the nine ethical climate dimensions were correlated with some of the unethical behaviors examined in this study, but not others. However, the results clearly demonstrated that most of the ethical climate dimensions were significantly related to an aggregate measure of unethical behavior. It was suggested that these results might account for the differences in previous studies on the criterion-related validity of the ECQ. The results also replicated a previous report that the association between unethical behavior and ethical climate is stronger in organizations that do not have a code of ethics. Finally, a difference was observed in the ethical climates for organizations with a code of ethics and organizations without a code of ethics.     

The Role of Ethical Ideology in Workplace Deviance

Ethical ideology is predicted to play a role in the occurrence of workplace deviance. Forsyths (1980) Ethics Position Questionnaire measures two dimensions of ethical ideology: idealism and relativism. It is hypothesized that idealism will be negatively correlated with employee deviance while relativism will be positively related. Further, it is predicted that idealism and relativism will interact in such a way that there will only be a relationship between idealism and deviance when relativism is higher. Results supported the hypothesized correlations and idealism and relativism interacted to predict organizational deviance. Idealism was a significant predictor of interpersonal deviance, but no interaction was found.Christine (Chris) A. Henle, Ph.D. is an assistant professor of Management at the University of North Carolina at Charlotte. Her research interests include counterproductive employee behaviors, employment law, and organizational justice. Her current research focuses on cyberloafing at work, religious discrimination in employment, and the role of supervisor and coworker norms in predicting counterproductive work behaviors. She has provided consulting services in the areas of job analysis, recruiting, selection, and performance management.Robert A. Giacalone, Ph.D. (State Univeristy of New York-Albany) is Professor of Human Resource Management at the Fox School of Business and Management, Temple University, in Philadelphia, Pennsylvania. Dr. Giacalone is coeditor of five books, co-author of two books and has authored over 90 articles on ethics, employee sabotage, impression management and exit interviewing, appearing in journals such as Human Relations, Business and Society Review, Journal of Business Ethics, Journal of the Organizational Behavior, and the Journal of Social Psychology. His current research focuses on the impact of materialism/postmaterialism and workplace spirituality on business ethics.Carole L. Jurkiewicz, Ph.D. is the John W. Dupuy Endowed Professor and the Womens Hospital Distinguished Professor of Healthcare Ethics at Louisiana State University. Her publications include a wide array of scholarly articles, books, and the general press. She maintains an active consulting practice in the areas of organizational psychology, ethics, and leadership.     

The Relationship Between Ethical Ideology and Ethical Behavior Intentions: An Exploratory Look at Physicians' Responses to Managed Care Dilemmas

Within the past few years, managed care health insurance programs have become commonplace. With managed care programs, however, physicians are facing increasing ethical pressures. This paper examines the relationship between physicians' behavior intentions with respect to four managed care ethical scenarios and their responses to Forsyth's (1980) Ethics Position Questionnaire (EPQ). This is one of the first papers to compare this scale to behavioral intentions in the workplace. We provide a literature review of the ethical dilemmas that doctors face under a managed care system and conduct a national random sample of general practitioners and surgeons regarding the four managed care ethical dilemmas. The results show that the doctors surveyed are significantly more idealistic than relativistic. In relating the EPQ to the ethical scenarios, however, there was no support for the proposition that ethical ideology was related to the ethical behavioral intentions. This suggests more research is needed to establish the links between ethical positions, attitudes, and behavioral intentions. Finally, there were little differences in EPQ scores by practice or demographic variables, the only significant result being that general surgeons are significantly more idealistic than family practitioners.     

Well-being Marketing: An Ethical Business Philosophy for Consumer Goods Firms

In this article we build on the program of research in well-being marketing by further conceptualizing and refining the conceptual domain of the concept of consumer well-being (CWB). We then argue that well-being marketing is a business philosophy grounded in business ethics. We show how this philosophy is an ethical extension of relationship marketing (stakeholder theory in business ethics) and is superior to transactional marketing (a business philosophy grounded in the principles of consumer sovereignty). Additionally, we argue that well-being marketing is based on duty ethics concepts, specifically the duty of beneficence and non-maleficence. Subsequently, we show how the well-being concept guides marketing decisions for consumer goods firms.     

Fostering ethical marketing decisions

This paper begins by examining several potentially unethical recent marketing practices. Since most marketing managers face ethical dilemmas during their careers, it is essential to study the moral consequences of these decisions. A typology of ways that managers might confront ethical issues is proposed. The significant organizational, personal and societal costs emanting from unethical behavior are also discussed. Both relatively simple frameworks and more comprehensive models for evaluating ethical decisions in marketing are summarized. Finally, the fact that organizational commitment to fostering ethical marketing decisions can be accomplished by top management leadership, codes of ethics, ethics seminars/programs and ethical audits is examined. Gene R. Laczniak is Professor of Business at Marquette University. He has written extensively in the field of marketing and business ethics. He is coeditor of Marketing Ethics: Guidelines for Managers, Lexington Books, 1985 and coauthor of The Higher Road: A Path to Ethical Marketing Decisions, Allyn & Bacon, 1992 (both with P. E. Murphy). Professor Laczniak's research interests focus on the social and ethical influence of marketing activities on society as well as marketing strategy. Patrick E. Murphy is Professor of Marketing in the College of Business Administration at the University of Notre Dame. His articles on business and marketing ethics have appeared in several periodicals. He currently serves as editor of Journal of Public Policy & Marketing and is coeditor of Marketing and Advertising Regulation: The Federal Trade Commission in the 1990s, Notre Dame Press, 1990 (with W. L. Wilkie). His research interests focus on the ethical and public policy issues facing business.This article is based on material forthcoming in The Higher Road: A Path to Ethical Marketing Decisions, Allyn & Bacon, 1992.     

Ethical Reasoning and Machiavellianism among Business Students in Hong Kong

Ethical development among business students is a perplexing issue when they behave even less ethically than business professionals. A prior study shows that business students in Hong Kong are more reluctant to behave ethically than those in other countries in some occasions. Based on an integrated model of ethical philosophy and cognitive development, the present study attempts to assess the ethical reasoning and Machiavellianism of 470 business students in Hong Kong. It measured ethical reasoning by means of two ethical dilemmas and the result indicated the deficiency of ethical reasoning among the students. With structural equation modeling, the analysis first discerned a factor of ethical reasoning. It then verified that ethical reasoning and Machiavellianism reflected a superordinate factor, termed as ethical predisposition. The modeling further revealed that having studied in college longer contributed to the student's ethical predisposition. However, majoring in marketing was associated with the student's lower ethical predisposition. These results were not susceptible to the confounding of the student's tendency toward acquiescence and social desirability.     

Organizational Ethical Culture: Real or Imagined?

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

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.     

Ethical Problems, Conflicts and Beliefs of Small Business Professionals

This paper presents the results of a national study of the beliefs and perceptions of small business professionals concerning ethics within their company and business in general. The study examined their views on the relationship between success and ethical conduct as well as the extent and nature of ethical conflicts experienced by the respondents. Some comparisons are made with similar studies that have been conducted in the past. Respondents have the most ethical conflicts with customers and employees, and with regard to honesty in contracts/agreements. Most also believe that ethical standards are lower than they were 10 and 20 years ago, primarily because society's moral standards are lower. Additionally, they believe that the behavior of top management has the most influence on decisions in ethical situations. Finally, consistent with prior studies, they believe that they have the most responsibility to customers, ahead of employees and stockholders.