A Cross-Cultural Comparison of Ethical Attitudes of Business Managers: India Korea and the United States

Culture has been identified as a significant determinant of ethical attitudes of business managers. This research studies the impact of culture on the ethical attitudes of business managers in India, Korea and the United States using multivariate statistical analysis. Employing Geert Hofstede's cultural typology, this study examines the relationship between his five cultural dimensions (individualism, power distance, uncertainty avoidance, masculinity, and long-term orientation) and business managers' ethical attitudes. The study uses primary data collected from 345 business manager participants of Executive MBA programs in selected business schools in India, Korea and the United States using Hofstede's Value Survey Module (94) and an instrument designed by the researchers to measure respondents' ethical attitudes (attitudes toward business ethics in general and toward twelve common questionable practices in particular). Results indicate that national culture has a strong influence on business managers' ethical attitudes. In addition to national culture, respondents' general attitudes toward business ethics are related to their personal integrity; their attitudes toward questionable business practices are related to the external environment and gender, as well as to their personal integrity. A strong relationship exists between cultural dimensions of individualism and power distance and respondents' ethical attitudes toward certain questionable practices. The analysis of the relationship between cultural dimensions of masculinity, uncertainty avoidance and long-term orientation and respondents' ethical attitudes toward questionable practices produced mixed results, likely due to the lack of notable differences in cultural dimension scores among the countries surveyed.     

The relationship between culture and perception of ethical problems in international Marketing

This research study sought to identify whether there is a relationship between ethical perceptions and culture. An examination of the cultural variables suggests that there is a relationship between two of Hofstede's cultural dimensions (i.e., Uncertainty Avoidance and Individualism) and ethical perceptions. This finding supports the hypothetical linkage between the cultural environment and the perceived ethical problem variables posited in Hunt and Vitell's General Theory of Marketing Ethics (1986).Robert Armstrong is Professor of Marketing and Research Associate of the Asia Research Centre at Murdoch University, Programme Chair for the MBA and Marketing and Media degree programmes. Professor Armstrong has been in Australia for six years, he spent two years at the University of Western Australia and the last four years at Murdoch University. To date, he has published over 20 journal articles and an Australian Marketing Research textbook.     

An Exploratory Study of Chinese Accounting Students’ and Auditors’ Audit-specific Ethical Reasoning

This study uses three audit-specific ethical dilemmas to assess the level of ethical reasoning between Chinese accounting students (as proxies for new entrants to the auditing profession) and experienced auditors. A sample of U.S. accounting students is used as a base for comparison. Consistent with expectations based on particularly salient aspects of Chinese national culture, we find the Chinese students’ levels of ethical reasoning to be significantly lower than those of their U.S. counterparts in the two cases that invoked these cultural attributes. In contrast, the Chinese students’ level of ethical reasoning is slightly higher than that of the U.S. students in the third, control case. We further find that the Chinese auditors’ levels of ethical reasoning are even lower than those of the Chinese students in two cases, while not being significantly different in the third. Together, these findings suggest that cross-national differences in auditors’ ethical reasoning depend on the nature of the ethical dilemma and caution against wholesale inferences about ethical reasoning levels in China.     

Danish Evidence of Auditors' Level of Moral Reasoning and Predisposition to Provide Fair Judgements

The community has legislatively conferred on external auditors a special but lucrative responsibility to provide fair and independent opinions about management's preparation of company financial statements. In return, auditors are obliged by professional standards to act with integrity, independently and in the public interest. This study examined 174 auditors' predisposition to provide just and fair judgements, using Kohlberg's theory of developmental moral reasoning, one of the most widely accepted theories in justice psychology. Respondents came from five international audit firms in Copenhagen. Results indicated that auditors with pre-conventional or low level of just reasoning or comprised 64 respondents, the largest group in the sample. The pre-conventional level suggests that people will act in their own self-interest and do the right only to avoid punishment. Pre-conventional auditors have the ability to "do deals", advantageous for business. When faced with an ethical crisis, however, auditors as this level will tend to focus on their own needs at the expense of others. The post-conventional or mid level of just reasoning comprised 59 auditors, second largest group in the sample. This level indicates that these auditors have the predisposition to act fairly on principal, particularly when faced with an ethical crisis. The conventional level or mid-just reasoning consisted of 51 auditors. People with a conventional level of just reasoning believe in law and order, the maintenance of the status quo, however they tend not to be critical of laws, nor authority even if those laws and authority are unjust or evil.     

The Personal Imapact of Ethical Decisiosn: A Social Penetration Theory

There are gaps in the Social and Ethical issues literature regarding the structure of individual ethical reasoning and the process through which personal ethical standards erode or decline. Social Penetration Theory may be used to view ethical issues of low, moderate, or high salience. It also produces a model of the process by which an individual turns to less desirable ethical reasoning and behavior.     

Attitudes towards Business Ethics: A Five Nation Comparative Study

Increasingly the business environment is tending toward a global economy. The current study compares the results of the Attitudes Towards Business Ethics Questionnaire (ATBEQ) reported in the literature for samples from the United States of America, Israel, Western Australia, and South Africa to a new sample (n = 125) from Turkey. The results indicate that while there are some shared views towards business ethics across countries, significant differences do exist between Turkey and each of the other countries in the study. Similarities and differences are discussed in terms of the countries' ratings on the Corruption Perceptions Index (as reported by the Internet Center for Corruption Research) and Hofstede's Theory of International Cultures. Recommendations for managers interacting with employees from differing countries are provided.     

The effects of culture on ethical decision-making: An application of Hofstede's typology

This paper addresses a significant gap in the conceptualization of business ethics within different cultural influences. Though theoretical models of business ethics have recognized the importance of culture in ethical decision-making, few have examinedhow this influences ethical decision-making. Therefore, this paper develops propositions concerning the influence of various cultural dimensions on ethical decision-making using Hofstede's typology.Scott J. Vitell is Associate Professor of Marketing and holder of the Michael S. Starnes Lecturship in Marketing and Business Ethics at the University of Mississippi. His work has previously appeared in theJournal of Macromarketing, theJournal of Business Ethics, Research in Marketing, and theJournal of the Academy of Marketing Science as well as various other journals and proceedings.Saviour Nwachukwu is a Ph.D. candidate in Marketing. His research interests include international marketing, marketing and economic development, and marketing ethics.James H. Barnes is Associate Professor of Marketing and Pharmacy Administration and holder of the Morris Lewis, Jr. Lectureship in Marketing at the University of Mississippi. His research has previously appeared in theJournal of Marketing Research as well as other journals and proceedings.     

Managers’ Moral Reasoning: Evidence from Large Indian Manufacturing Organisations

Increased globalisation has also seen increased scrutiny of corporate behaviour by the communities. Clearly managers are under increased pressure from stakeholders not only to outperform their competitors, but also are expected to do so in an ethical manner. In order to act ethically an individual is expected to have a well-developed moral imagination and moral reasoning. Literature on ethical reasoning research indicates a positive relationship between higher levels of moral reasoning and ethical behaviour. This paper presents the findings of a study of the moral reasoning/moral development of managers working in large manufacturing enterprises situated in the state of Punjab in India. Kohlberg’s theory of Cognitive Moral Development forms the basis of the study. Moral Judgement Interview (MIG) developed by Weber, on the basis of Kohlberg’s theory was used for the study. Moral Reasoning Scores were calculated using Abbreviated Scoring Guide. More than half of the managers scored at post-conventional level of reasoning while assessing the moral dilemmas. The reasoning scores varied for the three dilemmas. Manjit Monga is a lecturer in the School of Management, at the Division of Business, University of South Australia. Her research interests are in the area of management and workplace ethics, organisational culture, research ethics and resource management. The aythor is a lecturer in the School of Mangement, at the Division of Business,University of South Australia. Her research interests are in the area of mangement and workplace ethics,organisational culture,research ethics and human resource mangement.     

Is Cross-Cultural Similarity an Indicator of Similar Marketing Ethics?

This study compares Australian marketers with those in the United States along lines that are particular to the study of ethics. The test measured two different moral philosophies, idealism and relativism, and compared perceptions of ethical problems, ethical intentions, and corporate ethical values. According to Hofstede's cultural typologies, there should be little difference between American and Australian marketers, but the study did find significant differences. Australians tended to be more idealistic and more relativistic than Americans and the other results were mixed, making it difficult to generalize about the effects of moral philosophies on the components of ethical decision-making measured here. This is an important finding; as firms become increasingly more globalized, marketers will more often be involved in cross-cultural ethical dilemmas and it seems natural to assume that similar cultures will have similar ethical orientations. That assumption may well prove erroneous.     

Chinese Auditors' Ethical Behavior in an Audit Conflict Situation

This paper draws on the economics of ethical compliance model to examine the association between ethical reasoning, perceived risk of detection, perceived levels of penalties and Chinese auditors' ethical behavior in an audit conflict situation. Using 53 Chinese auditors from Shenzen as subjects, and a survey questionnaire, this study found that there is a significant negative association between ethical reasoning and the likelihood of unethical behavior and that this negative association is weaker for auditors who perceive higher risks of detection.     

Does Selection-Socialization Help to Explain Accountants' Weak Ethical Reasoning?

Recent business headlines, particularly those related to the collapsed energy-trading giant, Enron and its auditor, Arthur Andersen raise concerns about accountants' ethical reasoning. We propose, and provide evidence from 90 new auditors from Big-Five accounting firms, that a selection-socialization effect exists in the accounting profession that results in hiring accountants with disproportionately higher levels of the Sensing/Thinking (ST) cognitive style. This finding is important and relevant because we also find that the ST cognitive style is associated with relatively low levels of ethical reasoning, regardless of gender. This finding implies a need for emphasis on the ethical training of accountants. The results also suggest that accounting firms should consider recruiting accountants with cognitive styles associated with relatively higher levels of ethical reasoning.     

The Effects of Cultural Dimensions on Ethical Decision Making in Marketing: An Exploratory Study

As more and more firms operate globally, an understanding of the effects of cultural differences on ethical decision making becomes increasingly important for avoiding potential business pitfalls and for designing effective international marketing management programs. Although several articles have addressed this area in general, differences along specific, cultural dimensions have not been directly examined. Hence, the purpose of this study was to examine differences in ethical decision making within Hofstede's cultural framework. The results confirm the utility of Hofstede's cultural dimensions and place ethical decision making within an overall theoretical framework. Sales agents from a high power distance, uncertainty avoidant, Confucian, collectivist culture (i.e., Taiwan) placed more value on company and fellow employee interests (vis-à-vis self interests) than did managers from a masculine, individualistic culture (i.e., the United States). American and Taiwanese managers did not differ in their deontological norms or on the importance that they placed on customer interests. The theoretical and managerial importance of these findings are also discussed.     

An Ethics of Care or an Ethics of Justice

A conflict within the community of those investigating business ethics is whether decision makers are motivated by an ethics of justice or an ethics of caring. The proposition put forward in this paper is that ethical orientations are strongly related to cultural backgrounds. Specifically, Hofstede's cultural stereotyping using his masculine-feminine dimension may well match a culture's reliance on justice or caring when decisions are made. A study of college graduates from six countries showed that Hofstede's dimension was remarkably accurate in predicating a justice or caring orientation for decision makers from five of the six countries.     

Consideration of the Role of Guanxi in the Ethical Judgments of Chinese Managers

The importance of personal connections and relationships, or guanxi when doing business with the Chinese is widely acknowledged amongst Western academics and business managers alike. However, aspects of guanxi-related behaviours in the workplace are often misunderstood by Westerners with some going so far as to equate guanxi with forms of corruption. This study extends earlier study of Tan and Snell: 2002, Journal of Business Ethics 41(December), 361–384) in its investigation of the underlying modes of moral reasoning in ethical decisions relating to aspects of guanxi, amongst Hong Kong managers. Managers’ ethical judgements and underlying moral reasoning relating to a series of guanxi-related behaviours were recorded. Content analysis yielded categories that correspond with categories of moral reasoning described in Kohlberg’s (1969, Handbook of Socialization Theory and Research, Rand McNally, Chicago, pp. 347–480) model. As hypothesised, it was found that harsher ethical evaluations of guanxi-related behaviours were positively correlated with the stage of moral reasoning. The most common types of reasoning were those corresponding to Kohlberg’s stages four and five which relate to moral reasoning based on law and order, and on reason rather than emotion. Stage 6, concerned with more universalistic approaches to moral reasoning, was utilised considerably less, consistent with popularly held beliefs of the relativistic nature of Chinese ethics.     

Business ethics in China and Iceland—Contrasts and convergence

It is generally accepted that cultural differences affect individuals' approaches to ethics, but how are the effects of culture manifested in perceptions of ethics? Further, how are cultural differences displayed in such ethics-related actions as recommendations for business ethics education? Managers' responses from two starkly different cultures, China and Iceland, reveal, somewhat surprisingly, that one group's top business ethics concerns and business ethics education recommendations are at the bottom of the other group's rankings, and vice-versa, yet each appears reasonable given the cultural background. This shows how nuanced the expression of cultural differences in the realm of ethics can be and how potential practical steps may rely on perceived “top” ethical issues. Together, these findings imply that there is more to explore about the role of culture on ethical reasoning and behavior than researchers have examined to date. We provide suggestions for further research and practical applications.     

The Questionable Use of Moral Development Theory in Studies of Business Ethics: Discussion and Empirical Findings

The topic of the article is how moral development theory can enlighten the understanding of ethical behaviour in business. It discusses previous research on the subject, and reports an empirical study of academics (engineers and business economists with a master degree) working in the private sector in Norway.Moral development theory is based on a long research tradition, and many researchers within business ethics have assumed the importance of moral reasoning in business environments. However, the truth of these assumptions has not been confirmed by previous empirical research.The article reports on my investigation into the relationship between moral reasoning, ethical attitudes and decision-making behaviour. The data were collected by a survey study among Norwegian engineers and business economists working in businesses (N = 449) in 1997.It has been hypothesised that strong ethical attitudes would have a restraining effect on moral reasoning. In order to test this, ethical attitudes were categorized into four issue categories. The assumption being that the four categories would explain the different restraints on moral reasoning. The statistical testing showed that there was a negative, but not significant, correlation between strong attitudes and good moral reasoning ability.It was also hypothesised that good ability in moral reasoning would tend to exhibit a smaller difference between Policy-decisions and Action-decisions. This hypothesis was based on the difference in behaviour explained in "espoused theory" and "theory in use". When making policy-decisions these can be based on espoused theory and nice "talk" because it is always possible to make exceptions to or reconsider a policy. Action-decisions, on the other hand, are very concrete because they immediately trigger an action. The statistical testing rejected my hypothesis but gave a significant converse result: Good ability in moral reasoning seems to imply less stability and more inconsistence.The article concludes with the fact that moral reasoning testing seems to explain some differences in moral reasoning among people in business but not what kind of behavioural effects these differences actually have.     

Moral Choice and the Concept of Motivational Typologies: An Extended Stakeholder Perspective in a Western Context

Accountants and auditors are often faced with ethical dilemmas, which they have to process using resources available to them. Although they may be sensitive to the ethicality of the issues and have the cognitive ability to work through a judgment process, the final action they take may be dependent on a number of motivational factors, endogenous to the issue. Agency issues are a continuing area of concern providing accountants with an ability to shirk their responsibilities and hide confidential information, which may affect their career prospects if disclosed. This ongoing study explores these notions within a stakeholder context and uses a post test only field experiment to gain evidence to support the existence of an agency problem and that membership to one of a number of motivational typologies directly affects the way accountants respond to ethical issues. This association causes them to adopt informational heuristics that may result in less than optimal decisions. This study identified two specific endogenous constructs, namely social consensus and venal intent that discriminate between motivational types and which possibly provide psychological underpinnings explaining membership orientation. Gordon Woodbine PhD, FCPA, is a senior lecturer with the School of Accounting, Curtin University of Technology, Perth, Western Australia involved primarily with research and supervision activities. He has taught in universities in the People’s Republic of China and Papua New Guinea and has been published in a number of local and overseas refereed journals. He is interested in behavioural ethics, auditing, governance issues and ethics in education.     

General theory of cultures' consequences on international tourism behavior

National cultures represent complex configurations of values rather than a collection of distinct individual value dimensions. This presentation applies qualitative (configural) comparative analysis (QCA/CCA) to consider how cultural recipes—complex configurations of national culture affect international experiential behavior. The QCA method focuses on considering asymmetric relationships—reporting conditions that are sufficient (but not necessary) to cause an outcome condition (e.g., high-dollar expenditures). Using measures of consistency and coverage the QCA method provides estimates of how well alternative configurative models explain behavior rather than relying on symmetric data analysis methods (correlations and multiple regression). The method includes the use of Hofstede's country value scores with data from group-level and sub-group (by age and prior consumption experience) exit survey responses of visitors to Australia from 14 Asian, European, and North American countries. The analysis applies QCA software (www.fsQCA.com) and the presentation includes XY plots of country-level value configurations and group-level consumption for total visit expenditures, length of visit, shopping behavior, and group touring behavior.     

Improving Consistency for DIT Results Using Cluster Analysis

In this article, cluster analysis is used to explore the conflicting results reported when the Defining Issues Test is used to explain moral reasoning ability in business situations. Using a convenience sample, gender, age, work experience, and ethics training were examined to determine their impact on the level of moral reasoning ability as measured by the Defining Issues Test. Using the whole sample, a significant difference was found for average P scores reported for males and females, but no significant differences were found based on age, work experience, and ethics training. However, the sample fell into distinct clusters that identified distinct male and female groupings. While females naturally fell into two distinct high- and low-moral reasoning ability clusters, male clusters were dominated more by work experience and ethics training. Clearly there are other factors mitigating the level of moral reasoning ability for males which require further exploration. The findings suggest that while the P score provides an initial point of comparison, the real benefit to the test is in exploring what is different for males and females in terms of training needs, and the impact of work experience on the moral reasoning ability, and most importantly, how to make ethics training enticing. Recommendations for future research are also discussed. Carmel Herington is a senior lecturer in the Department of Marketing, Griffith University Gold Coast Campus, Australia. Her research interests include service quality and the provision of service quality through relationship building, internal relationships and their impact on other relationships of the firm, ethical business practices and marketing education. She has published in Qualitative Market Research, European Business Review, Academy of Marketing Science Review, Journal of Travel Research, Journal of Marketing Education, amongst others. Scott Weaven is a lecturer in the Department of Marketing, Griffith University, Gold Coast Campus, Australia. His research interests include service quality in asymmetric exchange relationships, motivational incentives analysis and business model choice, gender issues in small business management and marketing education. He has published in such scholarly journals as the International Small Business Journal, Journal of Marketing Channels, Academy of Marketing Science Review, and Assessment and Evaluation in Higher Education.     

Ethical Judgments Across Cultures: A Comparison between Business Students from Malaysia and New Zealand

This study compares the attitudes to ethical dilemmas of first year business students in Malaysia and New Zealand by using a series of scenarios or vignettes. Between subject manipulations were made to the scenarios given, based on expected cultural differences suggested in the literature. In particular, Hofstede's (1980, 1983 and 1991) work was used as a framework to identify dimensions based on differences in national culture. The results indicated some differences in responses based on both nationality and ethnic origin. Differences were also found as a result of the manipulations within the scenarios. However, a lack of any interaction effects between the manipulations and both nationality and ethnic origin indicated that cultural differences did not lead to different responses to the manipulations.