Corporate Governance and Corruption: Ethical Dilemmas of Asian Business Groups

This study looks at how the corporate governance of family-owned business groups, the most dominant form of private sector organising in Asia, deals with different forms of corruption during the course of common business transactions. As a part of an ethnographic study conducted in 2007 to look at the impact of corporate governance reforms in the Philippines, one of the emergent themes from the study was the presence of significant corruption in the business environment of the country. A total of 40 semi-structured interviews were conducted with board members from business groups and senior public sector officials supplemented by document analysis of media articles and other text and participant observation. Using Rose-Ackerman’s typology of petty and grand corruption, results show the dilemmas faced when trying to operate within the precepts of corporate governance whilst dealing with the practical reality of corruption in public sector institutions. The results of the study provide empirical evidence into corruption’s impact on Asian business groups and contribute to knowledge on the links between strong institutions and the efficacy of corporate governance.     

Ethical Reasoning and Machiavellianism among Business Students in Hong Kong

Ethical development among business students is a perplexing issue when they behave even less ethically than business professionals. A prior study shows that business students in Hong Kong are more reluctant to behave ethically than those in other countries in some occasions. Based on an integrated model of ethical philosophy and cognitive development, the present study attempts to assess the ethical reasoning and Machiavellianism of 470 business students in Hong Kong. It measured ethical reasoning by means of two ethical dilemmas and the result indicated the deficiency of ethical reasoning among the students. With structural equation modeling, the analysis first discerned a factor of ethical reasoning. It then verified that ethical reasoning and Machiavellianism reflected a superordinate factor, termed as ethical predisposition. The modeling further revealed that having studied in college longer contributed to the student's ethical predisposition. However, majoring in marketing was associated with the student's lower ethical predisposition. These results were not susceptible to the confounding of the student's tendency toward acquiescence and social desirability.     

Are Students Really Less Ethical Than Business Practitioners?

Past research provides evidence of lower ethical standards amongst the student population when compared to business practitioners, using business-based survey instruments. This study examines the adequacy of this conventional research tool by assessing the influence of scenario context (university or business setting) on ethical intentions using data from 243 commerce tertiary students.Students tended to respond more ethically to issues set in a university context than to equivalent issues in a business setting. The tolerance level for unethical behaviour in both contexts was also found to decline with full-time work experience and age. However, full-time work experience appears to be the major variable influencing ethical ratings set in a business context, whereas age was found to predict the ethical judgements of students in the university scenarios. The overall pattern of responses indicates that ethical standards vary according to scenario context.The study illustrates the importance of considering respondents' exposure to the settings concerned when conducting ethical studies using scenario-based instruments. Respondents should have adequate knowledge and exposure to the type of setting they are asked to evaluate. Results of this study argue for caution in the interpretation of past findings involving student samples responding to ethical issues in business settings.     

Can Business Ethics be Trained? A Study of the Ethical Decision-making Process in Business Students

The purpose of this paper is to examine the various guidelines presented in the literature for instituting an ethics curriculum and to empirically study their effectiveness. Three questions are addressed concerning the trainability of ethics material and the proper integration and implementation of an ethics curriculum. An empirical study then tested the effect of ethics training on moral awareness and reasoning. The sample consisted of two business classes, one exposed to additional ethics curriculum (experimental), and one not exposed (control). For the experimental group, ethics exercises and discussion relevant to each topic were completed. Findings suggested gender differences such that, relative to other groups, women in the experimental group showed significantly improved moral awareness and decision-making processes. An explanation of the underlying cognitive processes is presented to explain the gender effect.     

A Cross-Cultural Study of the Ethical Orientations of Senior-Level Business Students

This study is a cross cultural investigation into the ethical orientations of business students in Canada, Mexico, and the United States. Data were collected using a variation of an instrument developed by Dubinsky and Levi (1985) which measures the ethical orientation of respondents in a presumed retail environment. The instrument was subjected to test of reliability and validity and found to be very robust. No significant differences were found in the ethical disposition of Canadian and U.S. business students. However, a significant difference was found between the Canadian and U.S. students and those of Mexico. Implications are drawn for ethics education/training and areas are identified for future research.     

Ethical Cognition and Selection-Socialization in Retail Pharmacy

There is a great deal of support for the contention that the ethical cognition of health care professionals are of consequence to the level of patient care provided. The present study examines the ethical cognition of what has traditionally been deemed a profession of incomplete or marginal status: the retail, or community, pharmacy setting. An empirical examination of ethical cognition compares a systematic random sample of retail pharmacists with pharmacy students. Additional comparisons are made with a baseline of ethical cognition abilities of other health care professionals, such as physicians and nurses.Based on cognitive-developmental theory and using a well-known measure of ethical reasoning, two hypotheses are explored regarding the ethical reasoning skills of retail pharmacy practitioners and pharmacy students. Results indicate that, contrary to cognitive moral development theory, students possess greater ethical reasoning skills than do their practitioner counterparts. In addition, baseline comparisons with other health professional groups reflect unfavorably on the retail pharmacists. It is suggested that the selection-socialization processes inherent in the retail pharmacy setting may result in one or more of the following outcomes: 1) the selection of lower ethical reasoners to the community pharmacy setting, 2) the exodus to other pharmacy settings of higher reasoners, and 3) a possible retrogression in the ethical cognition of community practitioners. Implications for retail practice and limitations are discussed.     

WINDOW ON EASTERN EUROPE: Ethical Perceptions of Polish Business Students

An experienced educationalist comments on the views of top Polish business students on ethics in public life, government and business in modern Poland. The author is Wicklander Professor of Professional Ethics at DePaul University, Chicago, and also served recently as Visiting Fulbright Professor at the Adam Mickiewicz University in Poznan, Poland. He is currently President of the Society of Business Ethics in the USA.     

Gender-Related Differences in Ethical and Social Values of Business Students: Implications for Management

This study investigated gender-related differences in ethical attitudes of 318 graduate and undergraduate business students. Significant differences were observed in male and female responses to questions concerning ethics in social and personal relationships. No differences were noted for survey items concerning rules-based obligations. Implications for future management are discussed.     

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 Comparison of Ethical Perceptions and Moral Philosophies of American and Egyptian Business Students

This study compares business students fromEgypt and the United States in terms of theirperceptions of ethical problems, personal moralphilosophies (idealism, relativism), and theirperceptions about the importance of ethics. Aself-administered questionnaire was used tocollect data, in the classroom setting. Theresults reveal significant differences betweenthe business students from the two countries,which may be suggestive for variouscross-cultural business interactions. Theauthors derive some implications for businessethics instruction.     

A Propaedeutic for a Framework: Fostering Ethical Awareness in Undergraduate Business Students

Using the field of accounting as a locus forinquiry within undergraduate businesseducation, this paper proposes that studentsbeing trained in fields of business wouldbenefit from sustained formal exposure to theepistemological and anthropologicalperspectives of ethical systems. Without suchexposure, the ethics case studies presented inbusiness textbooks will not be as effective inachieving their goal of training undergraduatestudents to be ethical professionals. Studentsneed a substantive introduction to ethicalreasoning before they can fully appreciate theethical ramifications in a case study. Students have to be able to articulate thecriteria by which they will approach thequestions of applied ethics posed by the ethicsexercises appearing as the conclusion tochapters teaching not ethics but technicalinformation.This paper explores the ethical frameworkprovided by an intermediate accountingtextbook. It then analyzes theepistemologically and anthropologicallyinformed ethics of Bernard Lonergan and EdwardSchillebeeckx as examples of the introductoryethical reasoning needed to support textbookframeworks. A two-fold thesis guides thepaper: students equipped with a broader ethicalvision can learn more effectively from theethics cases presented in the textbooks, thusenhancing the value of those cases;consequently, students need more exposure toethics in an undergraduate business course ofstudy.     

Business Ethics and Religion: Religiosity as a Predictor of Ethical Awareness Among Students

We survey students at two Southern United States universities (one public and one private, religiously affiliated). Using a survey instrument that includes 25 vignettes, we test two important hypotheses: whether ethical attitudes are affected by religiosity (H1) and whether ethical attitudes are affected by courses in ethics, religion or theology (H2). Using a definition of religiosity based on behavior (church attendance), our results indicate that religiosity is a statistically significant predictor of responses in a number of ethical scenarios. In seven of the eight vignettes for which religiosity is significant, the effect is negative, implying that it reduces the “acceptability” of ethically-charged scenarios. Completion of ethics or religion classes, however, was a significant predictor of ethical attitudes in only two of the 25 vignettes (and in the expected direction). We also find that males and younger respondents appear to be more accepting of the ethically-questionable vignettes. We conclude that factors outside of the educational system may be more influential in shaping responses to ethical vignettes than are ethics and religion courses.     

Emotion and Cognition in Business Ethics Teaching

This paper focuses specifically on taughtcourses in business ethics for post-experiencestudents. The theme of this paper is thatvalues have a dual nature, involving bothemotional and cognitive elements. This dualnature is not always clearly acknowledged byparticipants in business ethics courses. Thisleads to a range of different ways in whichmisunderstanding can arise, and which is oftennot well handled in ethics classes. Twoparticular examples are considered: theseparation of personal and professional ethics,and the tendency for people to manage risk inprobabilistic terms rather than in human. TheKohlberg model is critiqued briefly, andpreference is given to Forsyth's model ofethical decision ideologies. The paperconcludes with some suggestions of positiveapproaches to business ethics teaching,involving virtue ethics and the critical theoryof Jurgen Habermas. This involves abandoningclassroom based tutition for a more personaldevelopment oriented approach.     

Subjectivist Economics and Ethical Business

A number of business ethics theorist have highlighted the potential for economics to contribute to the advancement of business ethics. In response, this article emphasizes the insights of a particular area of economics that could provide such expansion and development. Subjectivist economics may yet provide an effective analytical framework through which to investigate and evaluate business decision making, and hence the ethics of business. Integrating the concepts of uncertainty, time and imagination, subjectivist economic theory contributes to a greater appreciation of economic choice and behaviour. While such notions are often effectively omitted from modern economic analysis to aid formal representation, business ethicists could utilize such concepts more effectively than their colleagues in economic theory. Significantly, the well-known economists who have championed the insights of subjectivist economics have themselves recommended its extension to an analysis of ethics.     

Reasons To Be Ethical: Self-Interest and Ethical Business

This paper examines the self-interested reasons that businesses can have for ethical behaviour. It distinguishes between economic and non-economic reasons and, among the latter, notes those connected with the self-esteem of managers. It offers a detailed typology of prudential reasons for ethical behaviour, laying particular stress on those to do with avoiding punishment by society for wrongdoing and, more particularly still, stresses the role of campaigning pressure groups within that particular category of reasons. It goes on to suggest that because of their occupation of the moral high ground, campaigning groups are well placed to damage the self-esteem of managers and that this is why those groups seem able to exert an influence that goes beyond their somewhat limited capacity to inflict economic damage upon businesses. The paper concludes with the suggestion that we may be witnessing a virtuous spiral whereby rising public expectations of morality in business lead to ever increasing moral commitments by business that then cause those expectations to rise still further.     

Modeling Ethical Business Culture: Development of the Ethical Business Culture Survey and Its Use to Validate the CEBC Model of Ethical Business Culture

This article reports the results of research to develop a survey instrument and its use to validate an ethical business culture construct (CEBC Model). The reported three-stage quantitative study builds on our previous qualitative work, aimed at identifying dimensions of ethical business cultures. The research resulted in a parsimonious construct, covering five dimensions of ethical business cultures, and a ten-question instrument, measuring this construct. In this article, we report results of exploratory and confirmatory factor analyses and convergent construct validity testing, discuss the potential applications of the construct and instrument in assessment and development of ethical business cultures, and provide recommendations for industry practitioners and for further research.     

Business Groups and Tax Havens

Setting up affiliated companies in tax havens is a legitimate, but ethically dubious, business practice. This study examines the conditions under which emerging business groups tend to use such a business practice. Business groups in emerging economies have been operating in weak institutional environments with substantial government intervention and ineffective market-supporting institutions. Having offshore companies in tax havens enables the groups to bypass some market transaction costs and institutional constraints, and it also provides them the opportunity to evade taxes and hide illegal conduct, such as bribery. Empirical evidence based on a sample of Taiwanese business groups showed that business groups with a higher level of prosocial orientation established fewer offshore companies in tax havens, as manifested by their commitment of resources to establishing nonprofit organizations. In contrast, groups that have higher levels of product and international diversification tend to use this ethically dubious business practice. However, highly internationalized groups are less likely to do so when they have committed substantial resources to prosocial activities.     

Cultural Crossvergence and Social Desirability Bias: Ethical Evaluations by Chinese and Canadian Business Students

The purpose of this study is to determine whether there are cross-cultural differences between Chinese and Canadian business students with respect to their assessment of the ethicality of various business behaviors. Using a sample of 147 business students, the results indicate cultural crossvergence; the Chinese (72 students) and Canadians (75 students) exhibit different ethical attitudes toward questionable business practices at the individual level but not at the corporate level. A social desirability bias (a tendency to deny socially unacceptable actions and to admit to socially desirable ones) is also found to be a cross-cultural phenomenon, with the Canadians demonstrating a greater bias than the Chinese. Finally, this bias causes respondents to increase their assessment of the un-ethicality of questionable business activities.

Mixed Motives and Ethical Decisions in Business

Discerning the motives that lead businesspeople to make ethical decisions in economic contexts is important, for it aids the moral evaluation of such decisions. But conventional economic theory has for too long assumed an egoist model of motivation, to which many contrast an altruist view of ethical choices. The result is to see business decision making as implying dilemmas. On the other hand, we argue, if one assumes multiple motives, economic and ethical, in ordinary business decisions, a more fruitful model of ethical motivation in such decisions emerges. In this paper multiple motives are assumed to be the norm in a world of large organizations, complex decisions and stakeholder management. An example of a technology acquisition decision, with environmental overtones is presented in illustration of this approach. A method for discerning motives, primarily in terms of behavioural efficacy is presented. On this basis a two step approach to morally evaluating mixed motives in business decisions is proposed. First, the fit of motives with substantive ethical values should be ascertained, and then the efficacy of moral motives in yielding ethical behaviour and outcomes should be determined. This approach, we conclude, offers a much more concrete model of the actual role of moral motives in business decision making. It also signals the importance of moral learning in organizations.