‘The Impact of Corporate Ethical Values and Enforcement of Ethical Codes on the Perceived Importance of Ethics in Business: A Comparison of U.S. and Spanish Managers’

This two country study examines the effect of corporate ethical values and enforcement of a code of ethics on perceptions of the role of ethics in the overall success of the firm. Additionally, the impact of organizational commitment and of individual variables such as ethical idealism and relativism was examined. The rationale for examining the perceived importance of the role of ethics in this manner is to determine the extent to which the organization itself can influence employee perceptions regarding ethics and social responsibility. Results indicate that all of the variables tested, except relativism, impacted upon one’s perceptions of the importance of ethics and social responsibility. Perceptions of the importance of ethics and social responsibility also varied depending upon country of residence with the U.S. sample having somewhat higher perceptions concerning the importance of ethics and social responsibility than their counterparts in Spain. Furthermore, when comparing the two samples, the U.S. sample had significantly higher corporate ethical values, greater enforcement of ethical codes, less organizational commitment and both lower idealism and relativism.     

Professional Values and Perceptions Underlying Ethical Judgments: A Survey of Marketing Professionals in Thailand

ABSTRACT

Theoretical and empirical works generally suggest that variations in ethical judgments exist between different cultures. This study analyzes the ethical decisions of Thai marketing professionals. In particular, it examines the relative influences of professional values and ethical perceptions on the ethical judgments of Thai marketers. The results based on a survey of members of the Thai Marketing Association indicate that there is a significant relationship between a Thai marketer's ethical perceptions and his/her ethical judgments. The results reveal a weak relationship between professional values and the ethical judgments of Thai marketers.     

The Relationship Among Knowledge,Opportunity, and Ethical Perceptions: A Cross-National Investigation

The focus of this paper was to study the effectof prior knowledge and situationalopportunities on ethically questionablebehaviors among students of differentnationalities. A study was conducted toinvestigate the role and impact of thepredictor variables (knowledge and opportunity)on ethical perceptions toward copyrightviolations. The study also examined thedirect and the moderating effects of age,nationality, ethnic identity, gender, andeducation major. The research was conducted ona sample of 160 students of an Americanuniversity located on the U.S.–Mexican border. The results indicate that the predictorvariables, knowledge and opportunity,significantly affect ethical perceptions. Demographic variables like age, nationality,gender, and education major had no directeffects ethical perceptions. Different ethnicidentities, however, exhibited significantdifferences in their ethical perceptions. Onexamining moderating effects of the demographicvariables, younger respondents weresignificantly different from older respondents. Differences between the ethnic identityconstruct and nationality are highlighted. Implications of prior student knowledge aboutethical standards and expectations arediscussed.     

A Cross-Cultural Application of a Theoretical Model of Business Ethics: Bridging the Gap between Theory and Data

Hunt and Vitell's General Theory (1992) is used in a cross-cultural comparison of U.S. and Taiwanese business practitioners. Results indicate that Taiwanese practitioners exhibit lower perceptions of an ethical issue in a scenario based on bribery, as well as milder deontological evaluations and ethical judgments relative to their U.S. counterparts. In addition, Taiwan respondents showed higher likelihood of making the payment. Several of the paths between variables in the theory are confirmed in both U.S. and Taiwan samples, with summary data suggesting the Hunt and Vitell theory performs well in both U.S. and Taiwan. Some unanticipated linkages within the model were uncovered in the samples. Results and implications are discussed.     

Marketing ethics: a comparison of American and Middle-Eastern marketers

This study compares the moral philosophies, ethical perceptions and corporate ethical values of American and Middle-Eastern marketers. Hypotheses are developed on the basis of their respective national and organizational cultures. Using a sample of marketing practitioners from both countries, empirical support is found for the hypothesis that Middle-Eastern marketers are more likely to be idealistic than their American counterparts. However, no significant differences are found on the relativistic dimension of moral philosophy. Also, American marketers are found to have higher ethical perception than Middle-Eastern marketers. Finally, contrary to our hypothesized direction, some support is found to indicate that Middle-Eastern marketers are more likely to have higher corporate ethical values than American marketers. Implications of the findings are discussed.     

Business Ethics in a Transition Economy: Will the Next Russian Generation be any Better?

This study investigated students’ perceptions of ethical organizational climates, attitudes towards ethical issues, and the perceived relationship between ethical behavior and success in business organizations. Comparisons were made between the attitudes of these future managers with previously published studies of Russian managers’ attitudes. A survey of 100 business students in three Moscow universities showed that their attitudes toward ethical behavior were more negative than those of Russian managers. No significant differences were found in the perceptions or attitudes of students who had attended an ethics course and those that did not. The implications for both managers and researchers were reported.     

The Moderating Effect of Individuals' Perceptions of Ethical Work Climate on Ethical Judgments and Behavioral Intentions

Dimensions of the ethical work climate, as conceptualized by Victor and Cullen (1988), are potentially important influences on individual ethical decision-making in the organizational context. The present study examined the direct and indirect effects of individuals' perceptions of work climate on their ethical judgments and behavioral intentions regarding an ethical dilemma. A national sample of marketers was surveyed in a scenario-based research study. The results indicated that, although perceived climate dimensions did not have a direct effect on behavioral intentions, there were significant moderating effects. Climates perceived as emphasizing social responsibility and rules/codes moderated the individual ethical judgment-behavioral intentions relationship such that individuals were less likely to say that they would engage in a questionable selling practice even when they themselves did not believe the practice to be unethical. Respondents were somewhat more likely to form intentions consistent with their judgment that the questionable practice was morally acceptable when the ethical climate was characterized by an emphasis on team/friendship.     

Exposure to Ethics Education and the Perception of Linkage between Organizational Ethical Behavior and Business Outcomes

This study focused on the effects of individual characteristics and exposure to ethics education on perceptions of the linkage between organizational ethical practices and business outcomes. Using a stratified sampling approach, 817 students were randomly selected from a population of approximately 1310 business students in an AACSB accredited college of business. Three hundred and twenty eight of the subjects were freshmen, 380 were seniors, and 109 were working managers and professionals enrolled in a night-time MBA program. Overall, the respondents included 438 male students and 379 female students. Exposure to ethics in the curriculum had a significant impact on student perceptions of what should be the ideal linkages between organizational ethical practices and business outcomes. Gender based differences were found with female students having a higher expectation regarding what should be the “ethics practices and business outcomes” link. Exposure to ethics in the curriculum had a positive moderating influence on the gender-based effects on perceptions of ideal ethical climate. The interaction effect showed that exposure to ethical education may have a positive impact on males and allow them to catch up with females in their ethical sensitivities concerning the ideal linkage between organizational ethical behavior and business outcomes. Further, consistent with the literature, the study found that gender differences in ethical attitudes regarding the ideal ethical climate, while significant for undergraduates, appeared to narrow considerably for the working professionals who were part-time MBA students. Harsh Luthar is an Associate Professor of Management at Bryant University. He received his Ph.D. from Virginia Polytechnic University, Pamplin College of Business, in the Department of Management. His research interests include international differences and cross-cultural issues impacting global human resource practices, ethical attitudes of students, and the nature of spiritual leadership. Ranjan Karri is an Assistant Professor of Management at Bryant University. He received his Ph.D. in strategic management from Washington State University. His research interests include corporate and business strategies, enterpreneurship, ethical leadership and corporate governance.     

Spanish and American Executives' Ethical Judgments and Intentions

This study explores differences between executives in the U.S. and Spain in their perceptions of ethical issues in pricing, specifically comparing a domestic firm's actions affecting a foreign market versus a foreign firm's actions affecting the domestic market. Overall, Spanish and American executives provided somewhat different responses to the scenarios. Findings indicate that ethical judgments and intentions among Spanish executives did not vary based on which country was harmed. U.S. executives generally perceived that a morally questionable act directed at a foreign country was more unethical than a morally questionable act directed at the United States. Possible explanations for these findings are suggested.     

The Effect of National Culture on Whistle-Blowing Perceptions

Society continues to be concerned about the impact of ethics on decision making. While many researchers have focused on this issue, the increased globalization of today's business suggests that more emphasis should be given to the potential impact of culture on ethical decisions. The current study is based, in part, on the work of Hofstede (1980, 1991) who identified multiple dimensions on which countries differ in terms of culture. As such, it gives consideration to the impact of national culture on ethical decision making. The study focuses on ethical decisions made by U.S. and Taiwanese accounting students and examines cross-cultural differences in business-related ethical perceptions. Results indicated significant differences between the ethical perspectives and judgments of U.S. and Taiwanese accounting students in a whistle-blowing scenario, particularly with respect to Hofstede's individualism dimension. These findings enhance our understanding of cross-cultural ethical differences. The implications of these results are discussed and suggested areas for future research are proposed.     

Ethical Decision-Making Differences Between American and Moroccan Managers

Our research’s aim is to assess the effect of cultural factors on business ethical decision-making process in a Western cultural context and in a non-Western cultural context. Specifically, this study investigates ethical perceptions, religiosity, personal moral philosophies, corporate ethical values, gender, and ethical intentions of U.S. and Moroccan business managers. The findings demonstrate that significant differences do exist between the two countries in idealism and relativism. Moroccan managers tend to be more idealistic than the U.S. managers. There is a strong positive relationship between religiosity and idealism. There were mixed findings in examining the correlates of religiosity and various components of ethical intentions. Moroccan managers were more homogenous in their corporate ethical values than were the U.S. managers. The results demonstrate that (in general) idealism is a good predictor of ethical intentions and behaviors. Additionally, managers from the two countries differed in the degree of relationship between perceptions and intentions in three of the four scenarios. This study’s results confirm other research findings that, in general, female business managers have higher ethical sensitivity in terms of their ethical judgment than their male counterparts. Managerial implications are also discussed.     

Corporate Ethics: An Exploration of Contemporary Greece

This study aims to discover marketing professionals' perceptions on ethical problems and current level of ethics in Greece, as well as, on the policy instruments used by companies to help employees make decisions in a more ethical fashion, using a qualitative research design. Specifically, it reports the results of a series of in-depth interviews conducted with Greek marketing professional employed by multinationals in Greece. A number of topics examining ethical problems, ethical standards, corporate policy instruments and corporate cultureserved as a basis for discussion. While the occasionally contrasting opinions revealed in part the perplexity of marketing ethics, respondents also arrived at points of convergence. All recognized government as playing the most prominent role in issues of public concern, legislation and overall ethical standards. Moreover, all marketers identified multinational and other foreign firms as a positive influence to the level of ethics, due to the introduction of policy instruments and control mechanisms. Finally, they also accepted the need for better informed customers and a strong organizational culture. Several recommendations are offered for consideration by marketing professionals interested in promoting ethical business conduct.     

Organizational Ethics: Perceptions of Employees by Gender

As more women enter the work force and assume management positions in corporations, increasing attention is being given to employment diversity. In addition, studies suggest that females have more propensity for ethics than males. However, these results may be debatable and limited data are available to substantiate these claims or assess gender differences among employees. Ethics codes can aid in supporting policies and enhancing corporate diversity. To assist one company in the development of an ethics code, a survey of 4005 employees in one U.S. corporation was conducted to ascertain their opinions of the ethical environment of the company. The survey used the Ethics Environment Questionnaire (EEQ), consisting of twenty items on a 5-point Likert-type scale; reliability on Cronbach's alpha was 0.94. Response rate was 50%, with the sample paralleling the population in proportion of males and females. Respondents reported a profile of 3.18 out of the high of 5.0, but with several significant differences between the male and female employees, including differences on education and position. Males were more in agreement than females that the firm had an ethical environment. On some items, however, males and females were in strong agreement. Comparisons to prior studies were drawn, including suggestions for ways corporations could use an ethics survey to tailor in-service training, enhance diversity in the work force, and support the development of an ethics code.     

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.     

An Examination of Differences in Ethical Decision-Making Between Canadian Business Students and Accounting Professionals

This study investigates the differences in individuals' ethical decision making between Canadian university business students and accounting professionals. We examine the differences in three measures known to be important in the ethical decision-making process: ethical awareness, ethical orientation, and intention to perform questionable acts. We tested for differences in these three measures in eight different questionable actions among three groups: students starting business studies, those in their final year of university, and professional accountants.The measures of awareness capture the extent to which respondents felt that a particular action was unethical according to each of several ethical criteria. We found few differences between the two student groups on these measures, suggesting that their education had minimal effect on raising their awareness of the ethical issues in the vignettes. Indeed, overall, the graduating student's scores were marginally lower than those of the entry-level students. However, the professionals viewed some actions as significantly less ethical than did the graduating students.The measures of ethical orientation capture the weight respondents placed on each of the criteria above in their evaluation of the overall morality of an action. The differences between the three groups were generally small, and were a function of the vignette, consistent with Jones' (1991) model of issue-contingent ethical reasoning.The measures of intention capture the extent to which a respondent perceives that s/he would perform the action. There were significant differences between the groups in three of the eight vignettes, driven by a difference between the professionals and the other two student groups. The awareness measures were strong predictors of intention. We discuss the implications of these findings for professional training and future research.     

A Cross-Cultural Investigation of the Ethical Dimensions of Alcohol and Tobacco Sports Sponsorships

While the sport industry has grown into a multi-billion dollar international business with unique ethical concerns, there is little empirical research examining the ethics involved in sport sponsorships, especially sponsorship of alcohol and tobacco brands. This study investigates the potential influence of culture and gender on future practitioners' willingness to work in the tobacco and alcohol sport sponsorship areas. The nature of the relationship between sports, alcohol and tobacco is reviewed, along with past research on variables noted to influence ethical decision making. Three hypotheses are investigated for differences between American and Australian students. A cultural difference in ethical perceptions is supported, while gender differences are not significant. The implications of these findings are discussed, along with the study's limitations and future directions for ethics research in sport marketing.     

Codes of Ethics as Signals for Ethical Behavior

This study investigated effects of codes of ethics on perceptions of ethical behavior. Respondents from companies with codes of ethics (n = 465) rated role set members (top management, supervisors, peers, subordinates, self) as more ethical and felt more encouraged and supported for ethical behavior than respondents from companies without codes (n = 301). Key aspects of the organizational climate, such as supportiveness for ethical behavior, freedom to act ethically, and satisfaction with the outcome of ethical problems were impacted by the presence of an ethics code. The mere presence of a code of ethics appears to have a positive impact on perceptions of ethical behavior in organizations, even when respondents cannot recall specific content of the code.     

Perceptions of ethical work climate and person-organization fit among retail employees in Japan and the US: A cross-cultural scale validation

International retailers can only be successful if they understand similarities and differences between cultures. This study compares retail employees' perceptions of ethical work climate and person-organization fit in the U.S. with those of the same employee type in Japan. The results can help retailers understand employee perceptions of their relationship with the firm. An important aspect of this research involves testing the cross-cultural validity of the ethical work climate (EWC) and person-organization fit (POF) scales. Findings suggest that these scales are valid in both different national contexts and can also be used to compare differences between the cultures. Significant differences were noted in the EWC and POF between retail employees in Japan and the U.S. The relationship between EWC and POF varies significantly for employees in Japan and the U.S.     

Antecedents and Consequences of Perceived Importance of Ethics in Marketing Situations: A Study of Thai Businesspeople

Building on an existing framework concerning ethical intention, this research explores how Thai business people perceive the importance of ethics in various scenarios. This study investigates the relative influences of personal characteristics and the organizational environment underlying the Thai business people’s ethical perception. Corporate ethical values and idealism are shown to positively influence a Thai manager’s perceptions about the importance of ethics. While their ability to perceive the existence of an ethical problem is negatively influenced by relativism, it is positively impacted by their existing perceptions about the importance of ethics. Results also suggest positive relationships between perceived importance of ethics and perceived ethical problems with ethical intention. These results extend research in understanding the relationship between the antecedents and consequences of perceived importance of ethics within an economically growing non-Western culture.     

A Comparative Study on Perceived Ethics of Tax Evasion: Hong Kong Vs the United States

This article begins with a review of the literature on the ethics of tax evasion and identifies the three main views that have emerged over the centuries, namely always ethical, sometimes ethical, and never or almost never ethical. It then reports on the results of a survey of HK and U.S. university business students who were asked to express their opinions on the 15 statements covering the three main views. The data are then analyzed to determine which of the three viewpoints is dominant among the sample population. Although it was found that HK scores were significantly different from the U.S. scores, both HK and U.S. respondents were opposed to the view that tax evasion is always or almost always ethical. The strongest arguments justifying tax evasion were in cases where the government was corrupt, the tax system was unfair and unaffordable. The weakest arguments for justifying tax evasion were in cases where there was a selfish motive. The underlying cultural differences are further explored in hope of accounting for differing perceptions of ethics of tax evasion. Policy implications for increasing people’s awareness of ethics on tax evasion are also highlighted.