Ethical Guidelines for Marketing Practice: A Reply to Gaski & Some Observations on the Role of Normative Marketing Ethics

Gaski (1999) is critical of marketing ethics and suggests that its ethical guidelines amount to no more than "obey the law" and "act in your self-interest". This reply questions Gaski's critique and clarifies possible misconceptions about the field that might otherwise result. It identifies the limitations and assumptions of Gaski's argument and shows that there are exceptions to his central proposition even when narrowly circumscribed. It is not disputed that there is merit to reminding managers of their obligations to obey the law and to act in their enlightened self-interest. However, although fulfilling these obligations is generally a necessary requirement for good conduct, it is not sufficient. There are situations where ethics demands more of marketing managers than "obey the law" and "act in your self-interest". In addition, managers may face situations where ethics, the law and self-interest are inconsistent. The article incorporates observations on the role of normative marketing ethics, including the requirement to develop ethical theory for marketing as well as ethical guidelines.     

Self Interest Among CPAs May Influence Their Moral Reasoning

In 1990, the Federal Trade Commission (FTC) issued a consent order to the American Institute of Certified Public Accountants (AICPA). The order decreed the AICPA to lessen its longstanding ethics code which had until then banned the receipts of commissions, referral fees and contingent fees. The FTC alleged that the AICPA banned receipt of the fees as an attempt to restrain trade (FTC, 1990).In the present study, we sought to determine if CPAs' preference for bans on commissions, referral fees and contingent fees is related to their moral reasoning whereby CPAs perceive the bans to serve as a means of resolving ethical issues. While determining this matter cannot prove whether the bans did or did not actually result in restrained trade, it can offer insight into the perceived ethical importance to CPAs of the overturned rules. Based on a random sample of AICPA members and using Rest's Defining Issues Test (DIT) to measure moral reasoning, we did not find a CPA's moral reasoning to be related to his/her preference for ethics rules which ban commissions, referral fees or contingent fees. However, our results did indicate that most CPAs prefer banning commissions, referral fees and contingent fees, with those CPAs holding a higher financial stake in public accounting, namely partners, favoring banning referral fees and contingent fees significantly less than CPAs with a lesser stake. Further, we noted a significant negative relationship between financial stake and moral reasoning. These results seem to suggest that self-interest among CPAs may influence their moral reasoning.Further study is needed to examine the relationship between self-interest of CPAs and their moral reasoning. If self-interest clouds moral judgments made by CPAs, capital markets are in danger. Rendering an independent audit opinion must exclude self-interest.     

After Durkheim: An Agenda for the Scoiology of Business Ethics

Over the last twenty years the organization of business activity appears to have shifted from an emphasis on bureaucratic organizations toward an emphasis on market structures. Economic self-interest has acquired a new social legitimacy, and the force of traditional moral authorities has waned. In these circumstances the work of Emile Durkheim on the problematics of business ethics and the impact of a culture of self-interest on the stability of society, work that has hitherto been neglected by the business ethics community, acquires a new relevance. In this paper we review Durkheim's problematization of business ethics, establish its relevance for the contemporary world, and use it to develop an empirical research agenda for the contemporary sociology of business ethics.     

Solon of Athens and the Ethics of Good Business

The ancient lawgiver Solon of Athens left norms of proper conduct that carry important ethical implications for all manner of human affairs, including commercial activities and the pursuit of wealth. In his extant poetry, he emphasizes the strong connections between individual virtue and its consequences in the social and political sphere. In considering the proper means of obtaining material wealth, he describes multiple ways to earn a living and connects them to proper intellectual and ethical dispositions through a concept of justice. This focus on virtue establishes a long-range ethics that is based on a principle of justice, demands rational intellectual activity, and carries implications for everyone’s self-interest. Solon’s concern for matters of virtue, the proper means of attaining wealth, and the need for long-range awareness of consequences offers a valuable point of historical focus for our own examinations of business ethics today.     

Moral Compliance and the Concealed Charm of Prudence

The key to moral behavior is often perceived to consist of ignoring rational self-interest and instead following norms recommended by religious tradition and moral philosophy. A central issue is the connection between these ambitions and actual behavior. Are an idealistic mood and an ethics of ambition the way out of an iron cage of individualistic rational behavior? Or is ethics best served by rules and incitements in harmony with rationality? The article discusses morality from the perspective of compliance. A normative suggestion in the Prisoner’s Dilemma exemplifies the case of prudent morality. The player should contribute if the expected value of that choice exceeds his payoff of mutual defection. The article questions the value of an absolute morality and suggests a morality that is more of a prudent policy than a categorical imperative. A conviction favoring a good average result in the long run is the most relevant argument for complying with a rule. The structure of economic games can give useful insights about problematic situations and consequences of different strategies. Being prudent rather than doing good might be a better policy not only for the agent, but also for organizations and society.     

道德解脱与归因：企业非伦理行为面前员工为何保持沉默？

面对企业非伦理行为,员工有时候为何选择沉默,这是近年来学者比较关注的问题。文章聚焦于自利型伦理氛围这一特定情境,采用跨层次研究方法,探索道德解脱在不同归因情况下对员工沉默的影响。研究发现,面对企业的非伦理问题,道德解脱（归己因）在自利型伦理氛围与员工沉默之间起到完全中介作用。道德解脱（归他因）在自利型伦理氛围与员工沉默之间起到部分中介作用。权力距离在道德解脱与员工沉默之间起到负向调节作用。研究表明,员工面对企业的非伦理问题是否选择沉默,主要取决于企业的自利型伦理氛围和个体道德解脱的意义建构。文章对于揭示企业非伦理行为下员工沉默选择问题具有理论和现实价值。     

The influence of role conflict and self-interest on lying in organizations

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.Steven L. Grover is currently an assistant professor of management at the Indiana University School of Business. His central research interest concerns honesty and dishonesty in organizations, and his research has appeared in journals such as theAcademy of Management Journal, Journal of Applied Psychology, Organizational Behavior and Human Decisions Processes, andOrganization Science.Chun Hui is a Ph.D. candidate in the Department of Management at Indiana University at Bloomington. Besides his research interests in organizational ethics such as lying behaviors, Chun is also interested in issues related to organizational citizenship behaviors (OCBs), trust in leaders, instability in predictive validities, and wrongful discrimination.     

Normative Self-Interest or Moral Hypocrisy?: The Importance of Context

We re-examine the construct of Moral Hypocrisy from the perspective of normative self-interest. Arguing that some degree of self-interest is culturally acceptable and indeed expected, we postulate that a pattern of behavior is more indicative of moral hypocrisy than a single action. Contrary to previous findings, our results indicate that a significant majority of subjects (N = 136) exhibited fair behavior, and that ideals of caring and fairness, when measured in context of the scenario, were predictive of those behaviors. Moreover, measures of Individualism/Collectivism appear more predictive of self-interested behavior than out-of-context responses to moral ideals. Implications for research and practice are discussed. George W. Watson received his Ph.D. from Virginia Tech, his M.B.A. from California State at Fullerton, an M.S. in Systems Management from the Naval Postgraduate School in Monterey, an a B.A. in Business Administration from the University of Washington, Seattle. His teaching focus is on corporate social responsibility and ethics. Dr.Watson’s current research interests include moral psychology,ethical decision making, and ideology. He has published in Business Ethics Quarterly, Business and Society, and the Journal of Business Ethics. Farooq Sheikh received his BS in Physics from Indiana University of Pennsylvania, and his Ph.D. from Smeal College of Business, Penn State University. He is currently Assistant Professor of Operations Management, School of Business at the State University of New York at Geneseo. Dr. Sheik’s research interests include rational and behavioral models in business operations, bounded-rational behavioral models in population games, social norms, game theory and cross-disciplinary research involving behavioral models.     

The regulation of virtue: Cross-currents in professional ethics

This paper argues that more attention should be paid to the civic functions of ethical discourse about the professions and to the moral virtues inherent in their practice and traditions. The ability of professional ethics to articulate civic ideals and virtues is discussed in relation to three issues. First, should professional ethics aim to enlighten ethical understanding or to motivate ethical conduct? Second, how should professional ethics define the professional's moral responsibilities in the face of ethical dilemmas — should the professional attempt to resolve the dilemma ethically or to change the social conditions that create the dilemma in the first place? The third issue discussed in the paper is whether professional ethics should be based on the model of regulation and rational self-interest or on the model of virtue and a fundamental personal commitment to the ideal of a certain form of life? In order for work in professional ethics to attain intellectual credibility among a non-philosophical audience, it must develop a coherent and convincing position on each of these issues.     

The Limits of Generosity: Lessons on Ethics,Economy, and Reciprocity in Kafka’s The Metamorphosis

This paper interrogates the relation between reciprocity and ethics as it concerns participation in the world of work and organizations. Tracing discussions of business and organizational ethics that concern themselves, respectively, with the ethics of self-interest, the ethics of reciprocity, and the ethics of generosity, we explore the possibility of ethical relations with those who are seen as radically different, and who are divested of anything worth exchanging. To address this we provide a reading of Franz Kafka’s famous novella The Metamorphosis and relate to it as a means to extend our understanding of business and organizational ethics. This story, we demonstrate, yields insight into the unbearable demands of ethics as they relate to reciprocity and generosity. On this basis, we draw conclusions concerning the mutually constitutive ethical limitations of reciprocity and generosity as ethical touchstones for organizational life while simultaneously accepting the seemingly insurmountable difficulties of exceeding those limits. In such a condition, we argue, ethics is not best served by adopting idealistic or moralizing positions regarding generosity but rather by working in the indissoluble tensions between self and other.     

Clearing Up the Egoist Difficulty with Loyalty

This paper seeks to analyze and to motivate a trend toward virtue ethics and away from deontology in the business ethics account of organizational loyalty. Prevailing authors appeal to “transcendent” values (deontology), skepticism (there is no loyalty), or Aristotelianism (loyalty is seeking mutual self-interest). I argue that the “Aristotelian” view clears up the “egoist” difficulty with loyalty. Briefly, critics feel we must “transcend,” “replace,” “overcome” and most especially sacrifice self-interest on the altar of ethics and loyalty. I argue that few things can be more ethical than loyalty to shared values. When a company and I both pursue the same value X, there becomes no difference between my seeking my best interest and my seeking the best interest of the company (and vice versa). Hence, the way out of the egoist difficulty with loyalty is seeing a company’s interests as my own (Aristotle’s third stage of friendship).     

Business Ethics versus Economic Incentives:<Emphasis Type="Italic">Contemporary Issues and Dilemmas</Emphasis>

Contemporary economic thought presumes that individuals in a society always act according to their self-interest or private economic incentives, while important ethical motivations for action, such as a concern for others and public interest, are largely ignored. This paper is based on my experience of teaching an undergraduate course that highlighted the divergence between economic incentives and ethical motives for action in present-day life and business. Teaching tools such as lectures, case and group discussions were employed to address important ethical dilemmas of individuals and managers in contemporary societies. Readings underscored the evolving relationship of business ethics and economic incentives, and the relevance of ancient ethical principles (e.g., Ethics of Interdependence, and Ethics of Prudence and Self-Development) to present-day business ethics. The course emphasized the imminent need in contemporary societies to reduce the divergence between economic incentives and ethical motives for action, and called for a greater understanding of business ethics today, given the complex ethical concerns that managers confront in the current global environment.     

Adam Smith's concept of the social system

This essay will postulate that Adam Smith's view of society was formulated out of historical influences far broader than generally conceded by many commentators in economic thought. Smith's basic behavioral concepts of sympathy and self-interest are significant contributions to economic thought as are his philosophy of human nature being based on liberty and freedom and not simply the creation of wealth. The vectors of influence that converged on Adam Smith were of varied and even contradictory natures. Yet the result of this collision of philosophical forces was clearly an event of significance in the history of philosophical and economic thought.Edward W. Coker is presently an Assistant Professor of Business Administration at USM-Gulf Coast, teaching primarily in the area of economics and finance. Dr. Coker has appeared on the programs of the American Economic Association, the Southern Economic Association and the Financial Management Association, both as presenter and discussant of papers. His interest in business ethics is reflected in his doctoral dissertation on the writings of Adam Smith. He is also a member of the Association for Social Economics and has participated on several panels sponsored by that organization.     

Individualist Economic Values and Self-Interest: The Problem in the Puritan Ethic

The Puritan ethic is conventionally interpreted as a set of individualistic values that encourage a degree of self-interest inimical to the good of organizations and society. A closer reading of original Puritan moralists reveals a different ethic. Puritan moralists simultaneously legitimated economic individualism while urging individuals to work for the common good. They contrasted self-interest and the common good, which they understood to be the sinful and moral ends, respectively, of economic individualism. This polarity can be found in all the details of their moral system, including the Puritan understanding of vocation, economic virtues, property rights, contracts, wealth and poverty, market prices and interest, and the proper economic role of government. The efforts of contemporary ethics to confront the problem of self-interest in business organizations and society would be enriched by a rediscovery of the Puritan understanding of self as a fundamental problem for any individualistic value system.     

Lining Up for Star-Wars Tickets: Some Ruminations On Ethics and Economics Based on An Internet Study of Behavior in Queues

Queues may represent business ethics in microcosm: they provide an opportunity to study in a smaller package the fundamental ethical tension in economic activity between self-interest and civility in the context of uncertainty and stress. In May 1999 people began forming lines to purchase tickets to the new Star Wars movie "The Phantom Menace." This paper reviews responses to a questionnaire on the internet regarding experiences in those lines. It focuses on two behaviors threatening queue discipline – the formation of cooperative groups and "pre-scalping." It concludes that although queues are complex phenomena, exhibiting important ethical, economic, social, and psychological elements, the general organizing principle of "first-come-first-served" still provides the foundation for queues while at the same time making room for a variety of legitimate modifications. Second, this paper concludes that, as with queues, the thought that self-interest is the exclusive guiding principle for business behavior is likewise too narrow, inducing participants to neglect opportunities for personal enrichment and satisfaction.     

Personal Ethics and Business Ethics: The Ethical Attitudes of Owner/ Managers of Small Business

To date, the study of business ethics has been largely the study of the ethics of large companies. This paper is concerned with owner/managers of small firms and the link between the personal ethics of the owner/manager and his or her attitude to ethical problems in business. By using active membership of an organisation with an overt ethical dimension (for example, a church) as a surrogate for personal ethics the research provides some, though not unequivocal, support for the models of Trevino and others that suggest a link between personal ethics and business ethics.     

Virtue and Vice Attributions in the Business Context: An Experimental Investigation

Recent findings in experimental philosophy have revealed that people attribute intentionality, belief, desire, knowledge, and blame asymmetrically to side-effects depending on whether the agent who produces the side-effect violates or adheres to a norm. Although the original (and still common) test for this effect involved a chairman helping or harming the environment, hardly any of these findings have been applied to business ethics. We review what little exploration of the implications for business ethics has been done. Then, we present new experimental results that expand the attribution asymmetry to virtue and vice. We also examine whether it matters to people that an effect was produced as a primary or side-effect, as well as how consumer habits might be affected by this phenomenon. These results lead to the conclusion that it appears to be in a businessperson’s self-interest to be virtuous.     

Business ethics in a competitive market

Consequentialist reasoning and neoclassical assumptions about perfectly competitive markets encourage business school faculty and students to overlook the role of ethics in a market system. In a perfectly competitive economy, self-interest suffices to bring about a desirable outcome. However, discrepancies between an economist's assumptions and the realities of a market economy establish a need for business ethics. This essay, written as a lecture for MBA students, first reviews Pareto optimality as an argument in favor of market allocations. It then uses the discrepancies between actual and hypothetical markets to derive a Rawlsian duty of civility. This neoclassical case for business ethics requires individuals to avoid exploiting the defects that are inevitable in any social structure.Julianne Nelson is an Assistant Professor of Justice at the School of Public Affairs in the American University in Washington, D.C. She has also taught at the Stern School of Business of the New York University and at the Ecole Superieure de Commerce in Tours, France. Her publications have appeared in theInternational Economic Review, Economics Letters, The Journal of Regulatory Economics, Japan and the World Economy, The Journal of Business Ethics andEconomics and Philosophy.Editorial note: Date of acceptance July 4, 1991. This article follows the article published in Volume 11 (4), pp. 317–320.My thanks go to Tom Donaldson, Bob Lindsay and Kerry Whiteside for their helpful comments on earlier versions of this work. This research was supported by a grant from the Rundin Foundation.     

Media Depictions of CEO Ethics and Stakeholder Support of CSR Initiatives: The Mediating Roles of CSR Motive Attributions and Cynicism

Corporate social responsibility (CSR) functions as a positive signal to stakeholders that a firm is a responsible corporate citizen. However, CSR is increasingly becoming an ambiguous signal of organizational goodwill because many companies engage in CSR purely out of self-interest, rather than genuine altruism. In this paper, we integrate attribution theory with signaling theory to explore how stakeholders react when they receive additional signals that contradict the company’s intended positive CSR signal. Specifically, we argue that morally questionable CEO ethics in the media negatively influences stakeholders’ CSR motive attributions, which in turn results in increased cynicism that ultimately impacts CSR support intentions and behaviors. We find support for our hypotheses in a quasi-experimental study of stakeholder media exposure to different types of CEOs (morally questionable, ethical, and ethics-unknown). Our findings demonstrate that stakeholders consider CEO ethics an important signal of CSR motives, and will shun the CSR initiatives of morally questionable CEOs.     

Applying Ethical Theories: Interpreting and Responding to Student Plagiarism

Given the tremendous proliferation of student plagiarism involving the Internet, the purpose of this study is to determine which theory of ethical reasoning students invoke when defending their transgressions: deontology, utilitarianism, rational self-interest, Machiavellianism, cultural relativism, or situational ethics. Understanding which theory of ethical reasoning students employ is critical, as preemptive steps can be taken by faculty to counteract this reasoning and prevent plagiarism. Additionally, it has been demonstrated that unethical behavior in school can lead to unethical behavior in business; therefore, correcting unethical behavior in school can have a positive impact on organizational ethics. To meet this objective, a content analysis was conducted on the written records of students formally charged with plagiarizing at a large West Coast university. Each case was classified according to the primary ethical reasoning that the student used to justify plagiarism. Results indicate that students predominately invoke deontology, situational ethics, and Machiavellianism. Based on these findings, specific recommendations are offered to curb plagiarism. This research is the result of a long-standing interest in new technology and plagiarism. Very early ideas on this subject were presented by the authors at the ABC West Conference in New Orleans in March 2003. Dr. Neil Granitz teaches Marketing at Cal State Fullerton. He has published articles in the Journal of Business Ethics, Journal of Marketing Education, and the Quarterly Journal of E-Commerce. Moreover, Neil is a consultant for the fast-food industry, the airline industry, and an Internet advertising agency. Before earning his MBA at McGill University in Montreal and a Ph.D. in Marketing at Arizona State University in Tempe, Arizona, Neil Granitz gained extensive corporate experience in market and consumer research. Neil’s research focuses on three areas: (1) Instilling meaning and motivation into marketing education, (2) E-Commerce: Development and effect on marketing educators and practitioners, and (3) Awareness of ethics: Its influence on the internal culture of organization. Dr. Dana Loewy teaches Business Communication at Cal State Fullerton. Having earned a Ph.D. from the University of Southern California in English and translation, she is a well-published freelance translator, interpreter, and brand-name consultant. Fluent in several languages, among them German and Czech, Dana has published critical articles in many areas of interest and various poetry as well as prose translations, most notably the 1997 volume The Early Poetry of Jaroslav Seifert from Northwestern University Press.