Ethical Ideologies of Senior Australian Managers: An Empirical Study

Forsyth’s (1980) Ethics Position Questionnaire and Hunt et al.’s (1989) Corporate Ethical Value Questionnaire are used to examine the ethical ideologies of senior managers from organizations listed in the Australian Stock Exchange. The results indicate how corporate ethical values, religion, gender, and age are related to the idealism and relativism of senior Australian managers. After discussing the results, limitations of the study are offered. Finally, managerial implications are provided and recommendations for future research are given. Mario Fernando (PhD, MBA, BCom) is a Senior Lecturer at␣the School of Management and Marketing, University of Wollongong, Australia, and a Visiting Research Fellow of the Centre for Studies in Religion and Society, University of␣Victoria, Canada. His current teaching and research focus is on organizational virtuousness, workplace spirituality, ethical and spiritual leadership. His most recent work is due to be published in a book titled Spiritual Leadership in the Entrepreneurial Business: A Multifaith Study (2007, Edward Elgar). Shyamali C. Dharmage (PhD, MD, MSc, MBBS) is a Senior Lecturer at the Centre for MEGA (Molecular, Environmental, Genetic & Analytic) Epidemiology, School of Population Health, University of Melbourne, Australia. Her main research focus is on the epidemiology of allergy and airway diseases. In addition, she contributes to the methodological and analytical aspects of research projects in other areas. Shamika Almeida (MSc, MBA) is a PhD candidate in the Work and Organisational Studies Discipline at the University of Sydney, Australia. Her research is on social and human capital issues.     

The Financial Performance of Ethical Investment Trusts: An Australian Perspective

This study examines whether differences in financial performance exist for investment trusts which base their portfolio selection primarily on an ethical screen, compared to indexes which incorporate a broader spectrum of investments. Results indicate that on a risk-adjusted basis there is an insignificant difference in the financial performance of these trusts against three common market benchmarks. However as to the extent of the directional effect, there does exist slightly superior financial performance by ethical trusts against their respective industry average indexes, but an underperformance against a smaller company's index and the market as a whole. The lack of a distinct advantage in the short to medium term for applying an ethical screen, may in part be due to the recent development of ethical investments in Australia. Stronger performances by older ethical investment trusts may indicate superior returns are more likely to occur over a longer term.     

The FairWear Campaign: An Ethical Network in the Australian Garment Industry

In many parts of the world, homework is a form of labour characterised by precariousness, lack of regulation, and invisibility and lack of protection of the workers who are often amongst the world’s poorest and most exploited. Homework is spreading, due to firm practices such as outsourcing. The analysis and understanding of complex corporate networks may assist with the identification and protection of those most at risk within the supply chain network. It can also expose some of the key ethical issues and dilemmas of supply chain management and corporate social responsibility (CSR). Based on a case-study of the Australian FairWear Campaign (FWC), this article identifies an ethical network that aims to increase corporate accountability (CA) via greater transparency in corporate supply chains and improve work conditions for homeworkers and increase their recognition in the supply chain.     

An Analysis of Australian Final Year Accountancy Students' Ethical Attitudes

Ethical behaviour is a critical component of theaccountancy/auditing profession. This study examines ethicalattitudes of final year accountancy students in Australia.Students were surveyed as to whether they would accept a bribe todefraud a public institution (Taxation Office) or shareholders,cheat in an exam, and/or become whistleblowers in differingcircumstances. A high proportion of students appeared willing toaccept the bribe (25% Taxation Office and 20% shareholders). Thispercentage plummeted when the risk of being caught was introduced(9% Taxation Office and 6% shareholders). The difference betweenmale and female responses was significant. Males appeared fourtimes more likely than females to act unethically. 28% ofstudents appeared willing to cheat in an exam. Interestingly,the difference between male and female responses was lesssignificant. Again the risk of being caught drastically reducedthese figures (6%). Just greater than 50% of students appearedwilling to become whistleblowers for the frauds against theTaxation Office and shareholders, however, only 8% wouldwhistleblow on cheating in an examination. Finally theimplications for educators, attempting to provide effectiveethical education for trainee accountants/auditors, are considered.     

Ethical and Unethical Bargaining Tactics: An Empirical Study

Competitive negotiators frequently use tactics which others view as "unethical", in that these tactics either violate standards of truth telling or violate the perceived rules of negotiation. This paper sought to determine how business students viewed a number of marginally ethical negotiating tactics, and to determine the underlying factor structure of these tactics. The factor analysis of these tactics revealed five clear factors which were highly similar across the two samples, and which parallel (to a moderate degree) categories of tactics proposed by earlier theory. Data from one sample also permitted comparisons of the appropriateness of certain tactics across gender, nationality, ethnic origin and perception of one's negotiating style.     

The Ethical Environment of Tax Practitioners: Western Australian Evidence

This study examines Australian tax agents' perceptions of the ethical environment in which they practice, within the context of an income tax system based on self-assessment principles. The research identifies and ranks an inventory of ethical issues in terms of perceived frequency of occurrence and importance to Western Australian tax agents. In addition, the extent and influence of ethical concerns in the profession are evaluated.The study has determined that the most frequently cited ethical issue is the failure to make reasonable enquiries where information or documentation provided by a client appears to be inaccurate or incomplete. The most important ethical problem is a failure to ensure confidentiality with regard to privileged client information. When the frequency of occurrence and importance means are compared, inadequate technical competence, failure to make reasonable enquiries/conduct research, continuing to act for a client where there is incorrect information, and conflicts in distinguishing between tax planning and tax avoidance emerge as the high frequency/high importance issues. Although acknowledging the potential for unethical actions in tax practice, Western Australian tax agents consider that they carry out their professional activities within an ethical environment.     

The Ethical Management Practices of Australian Firms

This paper addresses a number of important issues regarding the ethical practices and recent behaviour of large Australian firms in nine industries. These issues include whether firms have a written code of ethics, whether firms have a forum for the discussion of ethics, whether managers consider that their firm's activities have an environmental impact and whether there are any statistical relationships between the size, industry class, ownership, international involvement and location of the firm and its ethical management practices. These questions are examined by using data collected from a sample of 136 large firms operating in Australia.     

Ethical Issues in Australian Marketing Research Services

Abstract

The study focuses on Australian marketing research professionals' perceptions toward ethics in the marketing research profession and research services. These perceptions are specifically related to the ethical environment, ethical guidance, and leadership responsibility, factors leading to unethical marketing research practices and ethical climate characteristics. Overall findings underscore the importance of the role of management in setting the ethical tone and developing an appropriate frame of reference for ethical conduct and guidance in Australian marketing research.     

Corporate Governance: An Ethical Perspective

This paper discusses corporate governance issues from a compliance viewpoint. It makes a distinction between legal and ethical compliance mechanisms and shows that the former has clearly proven to be inadequate as it lacks the moral firepower to restore confidence and the ability to build trust. The concepts of freedom of indifference and freedom for excellence provide a theoretical basis for explaining why legal compliance mechanisms are insufficient in dealing with fraudulent practices and may not be addressing the real and fundamental issues that inspire ethical behavior. The tendency to overemphasize legal compliance mechanisms may result in an attempt to substitute accountability for responsibility and may also result in an attempt to legislate morality which consequently leads to legal absolutism. The current environment of failures of corporate responsibility are not only failures of legal compliance, but more fundamentally failures to do the right (ethical) thing. Surendra Arjoon is an Associate Professor of Business Ethics at the University of the West Indies, Trinidad. He served as Chair, Department of Management Studies (2002–2005) and as Associate Dean, Faculty of Social Sciences (1996–2002). He is also the Vice-President of the Trinidad and Tobago Economics Association. His work has appeared in the Journal of Business Ethics, Journal of Markets and Morality, Global Development Studies, Applied Financial Economics, and Social and Economic Studies.     

Work-Related Stress: An Ethical Perspective

Work-related stress is too often neglected by employers and rarely seen as an ethical issue by them. Its moral implications are explored here by the Senior Corporate Policy Manager at City and Inner London North Training and Enterprise Council, 80 Great Eastern Street, London EC2A 3DP. Sue Bryan, M.A., A.M.I.P.D., is also completing an Executive MBA degree at London Business School.     

Comparative Ethical Report Card: A Study of Australian and Canadian Manager's Perceptions of International Marketing Ethics Problems

This research study sought to identify and categorize international marketing ethical problems that confront business managers in Australia and Canada. The study focused on ten major ethical problems developed from previous exploratory research. Managers from both countries indicate that the most frequently cited ethical problem is "gifts/ favors/entertainment" and the most important ethical problem is "large-scale bribery". However, there exist significant differences in terms of rankings and mean values of frequency and importance ratings for other ethical problems.     

An Exploratory Study into the Factors Impeding Ethical Consumption

Although consumers are increasingly engaged with ethical factors when forming opinions about products and making purchase decisions, recent studies have highlighted significant differences between consumers’ intentions to consume ethically, and their actual purchase behaviour. This article contributes to an understanding of this ‘Ethical Purchasing Gap’ through a review of existing literature, and the inductive analysis of focus group discussions. A model is suggested which includes exogenous variables such as moral maturity and age which have been well covered in the literature, together with further impeding factors identified from the focus group discussions. For some consumers, inertia in purchasing behaviour was such that the decision-making process was devoid of ethical considerations. Several consumers manifested their ethical views through post-purchase dissonance and retrospective feelings of guilt. Others displayed a reluctance to consume ethically due to personal constraints, a perceived negative impact on image or quality, or an outright negation of responsibility. Those who expressed a desire to consume ethically often seemed deterred by cynicism, which caused them to question the impact they, as an individual, could achieve. These findings enhance the understanding of ethical consumption decisions and provide a platform for future research in this area.     

Withdrawal Behaviors Syndrome: An Ethical Perspective

This study aimed to elucidate the withdrawal behaviors syndrome (lateness, absence, and intent to leave work) among nurses by examining interrelations between these behaviors and the mediating effect of organizational commitment upon ethical perceptions (caring climate, formal climate, and distributive justice) and withdrawal behaviors. Two-hundred and one nurses from one hospital in northern Israel participated. Data collection was based on questionnaires and hospital records using a two-phase design. The analyses are based on Hierarchical Multiple Regressions and on Structural Equation Modeling with AMOS. Affective commitment was found to mediate the relationship between different dimensions of nurses’ ethical perceptions (caring climate, formal climate, and distributive justice) and their intent to leave work. Lateness was found to be positively related to absence frequency which was found negatively related to intent to leave. Males were late more frequently than females, while seniority was related only to absence frequency. The findings indicated that each withdrawal behavior exhibits unique relationships. The results may help policy makers to focus on improving the ethical environment in order to increase nurses’ commitment and reduce their intent to leave. Improving the ethical environment may be achieved through ethical education for nurses which may promote ethical considerations becoming an integral part of nurses’ work.     

Organizational Commitment and Ethical Behavior: An Empirical Study of Information System Professionals

IS professionals have been reported to have one of the highest turnover rates. They have also often been accused of unethical conduct, specifically, pirating software, hacking, giving professional opinion that exceeds their knowledge, and not protecting people's privacy. In a sample of 71 IS professionals and 250 members of other professions we found that IS professionals were more committed to their organizations than the other professionals, and that IS professionals were, indeed, less ethical with respect to software piracy and hacking. However, we found that they were not less ethical regarding professional opinions that exceed one's knowledge and protecting people's privacy.     

Indigenous Human Resource Practices in Australian Mining Companies: Towards an Ethical Model

Mining companies in Australia are increasingly required to interact with Indigenous groups as stakeholders following Native Title legislation in the early 1990s. A study of five mining companies in Australia reveals that they now undertake a range of programs involving Indigenous communities, to assist with access to land, and to enhance their public profile. However, most of these initiatives emanate from carefully quarantined sections of mining companies. Drawing upon cross-cultural and diversity research in particular, this paper contends that only initiatives that strive towards power sharing with Indigenous groups and strategies for broadening the organizational interface with Indigenous groups, will contribute to more ethical practices in mining and other companies.     

Western Australian Managers Tell Their Stories: Ethical Challenges in International Business Operations

This paper investigates the ethical challenges facing managers in Western Australia. It identifies the ethical issues that managers confront in international business. Managers in this research have identified a number of significant ethical issues when discussing the ethical incidents that occurred in their international dealings. The research shows a degree of congruence between managers' experiences and establishes the main ethical dilemmas encountered, how they felt and actions taken when confronted with an ethical dilemma.     

Student Ethical Perceptions and Ethical Action Propensities: An Analysis of Situation Familiarity

Recently McCuddy and Peery (1996) have suggested that business students may not respond the same way to unfamiliar business ethical dilemmas as they would to more familiar academic ethical dilemmas. The purpose of this study was to present the same students with both unfamiliar business dilemmas as well as possibly more familiar academic dilemmas in order to examine this issue.Findings of the study revealed that students did not exhibit different perceptions of the unethical actions performed in the academic and accounting/business ethical vignettes. However, the students indicated that both they and their peers would be more likely to act unethically to resolve the dilemmas in the accounting/business cases than in the academic cases. This finding is troubling in that it suggests that students either feel less compelled to act ethically in business, or that they perceive that ethical standards in the business world are generally low when compared to their current educational environment. In addition, the students in the study maintained the same halo effect (i.e., the difference between an individual's perception of their likelihood of performing an unethical action compared to their perception of their peers' likelihood to perform the same unethical action) across the two types of ethical dilemma.