Dark side of reciprocity norm: Ethical compromise in business exchanges |
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| Institution: | 1. Department of Management & Marketing, College of Business, North Dakota State University, Fargo, ND 58108-6050, United States;2. Information Systems and Operations Management Department, Sawyer School of Management, Suffolk University, 8 Ashburton Place, Boston, MA 02108, United States;1. Vernon, CT 06066, USA;2. Copenhagen Business School, Denmark;1. University of Vermont, School of Business Administration, 55 Colchester Ave., Burlington, VT 05405, United States;2. The University of Texas at Dallas, The Naveen Jindal School of Management, 800 W Campbell Rd, Richardson, TX 75080, United States;3. Oakland University, School of Business Administration, 427 Elliott Hall, 2200 N. Squirrel Road, Rochester, MI 48309, United States;1. Department of Marketing and International Business, Turku School of Economics, University of Turku, Finland;2. School of Science, Department of Industrial Engineering and Management, Aalto University, P.O. Box 15500, FI-00076 AALTO, Finland;3. Bulevardi 50 B 46, 00120 Helsinki, Finland;1. School of Business and Management, Queen Mary University of London, Bancroft Building, Mile End Road, London E1 4NS, United Kingdom;2. Tasmanian School of Business and Economics, University of Tasmania, Private Bag 84, Hobart TAS 7001, Australia;3. Newcastle University Business School, Newcastle University, 5 Barrack Road, Newcastle upon Tyne NE1 4SE, United Kingdom;1. Department of Sport, Media and Marketing, Institute of Technology Carlow, Kilkenny Road, Carlow, Ireland;2. Department of Management and Organization, Waterford Institute of Technology, Cork Road, Waterford, Ireland |
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| Abstract: | In this research, we investigated the impact of the reciprocity norm on ethical compromise likelihood in managerial decision-making. We developed the ‘reciprocity norm-ethical compromise thesis’, postulating that the norm of reciprocity is positively related to ethical compromises in business exchanges. Specifically, the norm of reciprocity, potentially through its moral and instrumental forces, compels a party in a reciprocal exchange relationship to advocate an ethically questionable or even unacceptable practice requested by the other party in the relationship. We also examined the role of environmental uncertainty and exchange partner's retaliatory power status as boundary conditions of the reciprocity norm-ethical compromise relationship, in addition to trust and perceived future gain opportunity in the relationships as potential mediating mechanisms of the reciprocity norm-ethical compromise relationship. The results of two experiments with business professionals have yielded support for the interaction effects of this norm and its boundary conditions on the likelihood of ethical compromise. In addition, the results yielded support for perceived future gain opportunity in exchange relationships as an instrumental mechanism linking the reciprocity norm to ethical compromises in business exchanges. Finally, the experimental results did not support the notion of trust as a moral mechanism that links the reciprocity norm to ethical compromises in business exchanges. |
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