Code and Conduct: Predictors of Irsih Managers' Ethical Reasoning

We analyse Irish managers' perceptions about the degree of wrongness of ten types of unethical conduct. In-person interviews with 348 managing directors of Irish-owned businesses who report their perceptions of the degree of wrongness of ten business ethics problems (the dependent variables) yield the data for our study. Predictors of managers' ratings include the existence of a business code of ethics, perceived frequency of occurrence of the given acts, company size and sector, union membership, Irish business ownership and independence (the independent variables). Results indicate that approximately 75% of those sampled are independent Irish owned businesses but few (only 22% of this sample) have a formal business code. Regression analyses reveal that small firms with a code of ethics predict higher wrongness ratings for managers in regard to the practices of unfair pricing and delayed payments (unethical behavior involving firms) but managers also consider such acts the least wrong overall. Wrongness ratings on the eight remaining unethical acts are explained by the manufacturing sector. However, manufacturing firms in Ireland also have a high percentage of unionised workers indicating that unions influence managerial thinking about social and employee ethics (e.g., discrimination, insider trading). The traditional adversarial Industrial Relations model is useful in noting that unions are important in setting ethical standards for indigenous Irish-owned businesses. Given this reality, management in small, manufacturing firms should work with unions to create a more formal ethics code in order to guard against corruption and to remain competitive in the international marketplace. Those without strong unions might articulate their own organisational values.     

A Scale to Assess Ethical Leadership of Indian Private and Public Sector Managers

Three hundred forty middle-level managers from two private and two public sector manufacturing companies in India rated their superiors on 22 items of ethical leadership. Factor analysis of the scores on such items yielded two dimensions of ethical leadership: (a) empowerment, and (b) motive and character. Items of the scale had high reliability, validity, and discriminative power. On two dimensions of ethical leadership, the superiors self-rated themselves more favorably than their subordinates rated them. This justified the proposal to consider the subordinates' ratings to their superiors in assessing ethical leadership. Subordinates perceived their superiors more ethical in private sector than in public sector. Subordinates' manipulative behavior, and cheating in performance and misuse of finance were less frequent in the presence of ethical superiors. Also, ethical superiors enhanced the job performance, job involvement and affective commitment of their subordinates but not their continuance commitment.     

Ethical Exemplification and the AICPA Code of Professional Conduct: An Empirical Investigation of Auditor and Public Perceptions

This research applies the impression management theory of exemplification in an accounting study by identifying and measuring differences in both auditor and public perceptions of exemplary behaviors. The auditors were divided into two groups, one of which reported self-perceptions (A-S) while the other group reported their perceptions of a typical auditor (A-O). There were two separate public groups, which gave their perceptions of a typical auditor and were divided based on their levels of accounting sophistication. The more sophisticated public group was comprised of bank loan officers (LO) while the less sophisticated public group consisted of investment club members (IC). Comparisons were made on 30 behaviors contained in the AICPA Code of Professional Conduct, which served as the basis for the research instrument. Profile analysis, a special form of MANOVA technique, was used to analyze the results. A-S perceptions were the highest of the four treatment levels and were significantly higher (i.e., more exemplary) than the perceptions of both the A-O and LO groups. The more sophisticated user group (LO) provided the lowest perceptions of the four treatment levels. For at least four of the six measures, the LO treatment group perceived the typical auditor to be less exemplary than both the IC and A-O treatments. There were no differences in perceptions between the A-O group and IC. Additional analysis revealed that auditors overrated the degree to which the public relied on financial statements. However, both public groups reported a reasonably high level of reliance on financial statements when making decisions. Philip A. Brown is an Associate Professor and Directtor of the Accounting Program at Harding University in Searcy, Arkansas. He has a bachelor's degree from Harding University, an MBA from West Virginia University and a Ph.D. from the University of Mississippi. His research interests are in accounting ethics and in accounting education. He has published in Advances in Accounting, The Journal of Accounting and Finance Research, and others. He is a CPA in the State of Arkansas. Morris H. Stocks serves as the Dean of the Patterson School of Accountancy at the Universtiy of Mississippi. He received his undergraduate degree in accounting from Trevecca Nazarene University, his Masters degree from Middle Tennessee State University and his Ph.D. from the University of South Carolina. He is a Certified Public Accountant in the State of Mississippi. He is a behavioral accounting researcher and has published in Accounting, Organizations and Society, Accounting Horizons, Behavioural Research in Accounting, Decision Sciences Journal, Advances in Accounting, Advances in Accounting Information Systems, Advances in Behavioral Accounting Research, Accounting, Auditing and Accountability Journal, Advances in Taxation and others. W. Mark Wilder is KPMG Lecturer and Associate Professor of Accountancy at The University of Mississippi. His educational background includes a bachelor's degree in mathematics from The University of Alabama, an MBA from the University of South Alabama, and a Ph.D. in Accounting from Florida State University. He is a CPA in the State of Mississippi. Mark has published in Accounting Horizons, Advances in Taxation, the Journal of Applied Corporate Finance, the Journal of Computer and Information Systems, the CPA Journal, and others. In the past 2 years he has received several awards, including the top two campus-wide faculty awards at Ole Miss and also the MSCPA Outstanding Educator Award. In 2004 he was inducted into the Alabama Tennis Hall of Fame.     

Market Orientation and Performance in the Public Sector

Abstract

Increased calls for transparency and accountability in government organizations underscores the need for a market orientation even in the public sector. The degree of market orientation and its effect on performance and on organizational commitment in government departments in three Australian states is considered. Results provide empirical support for a direct relationship between market orientation and performance and evidence of the mediating role of organizational commitment. Implications are drawn and directions for future research are discussed.     

Public Sector Marketing in Australia:

Government departments and public sector organisations in Australia are utilising marketing concepts and techniques that originated in the private sector. This has been reported by reference to case studies. However, no systematic attempt to assess the implementation of marketing in the public sector has been reported. This article reports a survey of the use of marketing positions in the Australian public sector over the ten year period 1982-1991. It shows that public sector organisations with similar objectives to organisations in the economic environment of the private sector may well be implementing marketing oriented management. However, a significant and consistent difference is found in the use of marketing between those public sector organisations with a social and political orientation as opposed to those organisations with a commercial and/or economic orientation.     

Time Use and the Dynamics of the Service Sector

This article looks cat the historical dynamics of service provision from a rather unusual perspective - the change in patterns of time use. It discusses a mechanism whereby activity potterns in ‘the economy ‘may be accountedfor in terms of time rather than money, and shows how this form of economic activity is associated with other rextra-economic 3 sorts of productive and leisure activities. It presents time-budget d0ta from a number of different developed economies, showing historical changes in time allocation patterns, and relates these to more conventional indicators of economic structure.     

The Business Ethic in Public Sector Catering

Consecutive Conservative governments since 1979 have emphasised the need for greater cost-efficiency in the provision of public services. This article places recent developments in public sector catering in this wider context. It considers the manner in which government policy towards public sector catering has affected organisational and technical change in this area, and how this has led to changes in the roles, styles, strategies and control of catering managers. The article also outlines the effects of change on staff. In conclusion the article argues that management in the public sector are increasingly likely to act according to a business ethic’, rather than a ‘public service ethic’.     

Factors Affecting the Adoption of the Internet in the Public Sector

ABSTRACT

Research in the area of electronic marketing has focused considerable attention on consumers' and advertisers' perceptions of the Internet as a marketing communication medium. Whilst such research has been undertaken mostly in the private sector, it is important to recognize, and attempt to understand, the growing number of public sector organizations that have an Internet presence. Results of a study of the perceptions of managers in public sector organizations of the Internet as a marketing communication tool are reported. Findings suggest that decision makers in the public sector who feel that there is a need for their organizations to have an Internet presence, are more inclined to adopt the Internet as part of their marketing communications program. Furthermore, they are more likely to feel that use of the Internet will improve their overall marketing effectiveness. It is also interesting to note that the perceived complexity of using the Internet has a significant effect on both the adoption of and attitude towards the Internet as a marketing communications tool. This suggests that there is still some uncertainty amongst public sector organizations as to the usefulness of the Internet in marketing their services.     

Equilibrium Unemployment and Endogenous Public Sector Employment

This paper develops a model of the equilibrium rate of unemployment with an endogenous share of public sector employment. We show how various macroeconomic shocks drive up the equilibrium rate of unemployment, accompanied by predictable variations in the public sector share of employment. In particular, under the empirically plausible assumptions that the public sector is relatively labor-intensive and the elasticity of substitution between capital and labor is less than unity, public sector employment is shown to be countercyclical. When the equilibrium unemployment rate rises over a prolonged time period, the public sector share of employment also rises.     

Competitive Tendering and Contracting in the Public Sector: A Survey

This paper is a survey of the role and impact of competitive tendering and contracting (CTC) policies in the public sector. The paper examines the theoretical rationale for introducing competition in the provision of public services and the methodology by which contracting decisions are reached. It investigates the extent of implementation and nature of outcomes in several countries. A broad sweep of the empirical findings suggests that CTC generates substantial cost savings. Lack of adequate data makes an assessment of the effect on quality more troublesome, and further research is needed     

The Positive Ethical Organization: Enacting a Living Code of Ethics and Ethical Organizational Identity

A vision of a living code of ethics is proposed to counter the emphasis on negative phenomena in the study of organizational ethics. The living code results from the harmonious interaction of authentic leadership, five key organizational processes (attraction–selection–attrition, socialization, reward systems, decision-making and organizational learning), and an ethical organizational culture (characterized by heightened levels of ethical awareness and a positive climate regarding ethics). The living code is the cognitive, affective, and behavioral manifestation of an ethical organizational identity. We draw on business ethics literature, positive organizational scholarship, and management literature to outline the elements of positive ethical organizations as those exemplary organizations consistently practicing the highest levels of organizational ethics. In a positive ethical organization, the right thing to do is the only thing to do. Amy Klemm Verbos is a Ph.D. candidate at the Sheldon B. Lubar School of Business, University of Wisconsin-Milwaukee, where she received a Chancellor’s Fellowship, Graduate Fellowship, Dissertation Fellowship, and C. Edward Weber Research Award. She co-authored ‚Positive Relationships in Action: Relational Mentoring and Mentoring Schemas in the Workplace’ in the forthcoming edited book, Positive Relationships at Work. Her work on positive organizing also has been presented at the Academy of Management Conference. Joseph A. Gerard is a Ph.D. student at the Sheldon B. Lubar School of Business at the University of Wisconsin-Milwaukee. He is a lecturer at the University of Wisconsin-Whitewater teaching organizational behavior, strategy, and accounting. He is a founding member of Ascent Organization Development LLC, which provides management consulting services to for-profit organizations in the areas of effectiveness and performance enhancement. Paul R. Forshey is a Ph.D. student in Organizations and Strategic Management at the Sheldon B. Lubar School of Business, University of Wisconsin-Milwaukee. His research interests include startup firms and firms in transition. Charles S. Harding is a Ph.D. student in Organizations and Strategic Management at the Sheldon B. Lubar School of Business at the University of Wisconsin-Milwaukee. Awarded a Chancellor’s Fellowship, his research interests include strategic decision-making and the role of value creation in strategy. Janice S. Miller is an Associate Professor at the Sheldon B. Lubar School of Business at the University of Wisconsin-Milwaukee where she has received the Business Advisory Council Award for Teaching Excellence. Her published work has appeared in Academy of Management Journal, Journal of Organizational Behavior, and Journal of Business Ethics among others. She received her Ph.D. in Human Resources Management from Arizona State University.     

Ethical Sensemaking in Impact Investing: Reasons and Motives in the Chinese Renewable Energy Sector

Journal of Business Ethics - Artificial Intelligence (AI)-powered products have started to permeate various spheres of our lives. One of the most controversial of such products is the sex robot, an...     

Competitive Tendering: Lessons from the Public Sector

The introduction of at first voluntary and then compulsory competitive tendering have ushered in a decade of change in the provision of public services. In this paper, the authors examine just how radical that change has been. Utilising data from local authorities the authors find that, in refuse collection at least, competitive tendering has reduced costs by forcing improvements in labour productivity. But, in comparing the relative efficiencies of the large majority of in house tender winners with the comparatively smaller set of private contractors awarded tenders, the authors conclude that scope for greater cost reductions remain.     

In Search of the Divide Between the Private and Public Sector in Ecuador

ABSTRACT

The divide between the private and public sector is one of the underlying assumptions of economic policy making, political debates and economic reforms; so much so, that we take for granted its predictions from a theoretical as well as empirical point of view. This paper is an attempt to confront these predictions with Ecuadorian data using a wide range of statistical and econometric techniques. Its findings challenge conventional wisdom: the private sector is not necessarily more profitable and efficient than its public counterpart; both sectors have more behavioural commonalities than dissimilarities; the macro-economic impulse responses to both sectors dismiss the rationale for privatisation. Its conclusion calls for the deconstruction of welfare economics and management theory to capture non-paretian or second best environments.

RESUMEN. Una de las suposiciones subyacentes de la formación de la política económica, así como de los debates políticos y las reformas económicas yace en la separación entre el sector público y privado. A tal punto, que damos por sentado sus pronósticos tanto desde el punto de vista teórico como del empírico. Este estudio representa una tentativa de colocar frente a frente estos pronósticos con los datos ecuatorianos, utilizando una vasta gama de técnicas estadísticas y econométricas. Los hallazgos representan un desafío a la sabiduría convencional: el sector privado no es, necesariamente, más rentable y eficiente que su contraparte, el sector público; ambos sectores tienen más comunalidades comportamentales que diferencias; las respuestas a los impulsos macro-económicos para ambos sectores descartan las razones en pro de la privatización. Su conclusión aboga a favor de la deconstrucción de las economías asistecialistas y la teoría de la gestión usada para capturar entornos no paretianos o vengan en segundo lugar.

RESUMO. O divisor de águas entre o setor público e o privado é um dos pressupostos fundamentais das decis[otilde]es de política econômica, dos debates políticos e das reformas econômicas; tanto é que aceitamos seus prognósticos tanto do ponto de vista teórico quanto empírico. Este trabalho tenta confrontar tais previs[otilde]es com base em dados do Equador, utilizando uma vasta gama de técnicas estatísticas e econométricas. As descobertas desafiam o conhecimento convencional: o setor privado não é necessariamente mais lucrativo e eficiente do que o seu correspondente público; ambos os setores possuem mais semelhanças comportamentais do que diferenças; as reaç[otilde]es ao estímulo macro- econômico em ambos os setores descartam os fundamentos da privatização. A sua conclusão requer a desconstrução da economia do bem-estar e da teoria de administração para capturar os ambientes não-paretianos ou os melhores da segunda classe.     

Long‐Term Oriented Marketing Relationships and Ethical Conduct in Outsourcing Sector

The study evaluates the positive effect of long‐term oriented marketing relationship on ethical conduct from the perspective of the service provider (i.e., the agent‐firm), by integrating the relevant literature from relationship marketing, ethics, and long‐term orientation domains. The paper proposes that service providers that build relationship quality with their clients will display increased ethical conduct toward them. Specifically, the study examines the positive influence of the dimensions of relationship quality (that are relevant to the offshoring services context) that the service provider firm's employees undertake and their impact on ethical conduct. Overall, the results indicate that the commitment‐only full mediation model of relationship marketing variables on ethical conduct is a better representation than both direct‐effects model and other competing mediating models examined in this study. Fundamentally, it means that customer service officers should incorporate long‐term orientation and commitment in their principal–agent relationships that will provide the impetus for undertaking ethical behavior. The article concludes with a discussion and implications of the findings.     

Business Ethics Perceptions of Public and Private Sector Iranians

Ethical maturity is a great concern to all educators, firms, and investors across the globe. This research surveyed 448 citizens, managers and employees in Iran to measure their Personal Business Ethics Scores (PBES) to see if age, education, management experience, and government work experience make a difference in making more ethical decisions. This study contributes to the theory of moral development across the Iranian culture as it is the first known study using this method. The results suggest that education and more years of government work experience make a difference in the moral maturity of respondents. This study confirms that the ethical maturity of respondents is enhanced either through the authoritarian regime or socialization with Islamic values. Kohlberg’s moral development theory regarding ethical maturity is partially supported since those with more years of experience in government and more formal education have higher business ethics scores. Implications are discussed.     

Predictors of Organizational Citizenship Behavior: Ethical Leadership and Workplace Jealousy

This paper analyzes how national institutions impact corporate social responsibility (CSR) practices for small- and medium-sized enterprises (SMEs) in the food-processing industries of France and Morocco. In this study, CSR practices are defined around two main dimensions: corporate performance (financial vs. global) and the CSR approach (defensive vs. active). Qualitative data were collected during semi-structured interviews with SME managers in charge of CSR issues. We then performed a content analysis. Our study shows that there is a distinct difference between the CSR practices adopted by SMEs in France and Morocco. Indeed, the findings suggest that under the rule-based governance system of France, most SMEs view CSR as an economic tool and it is adopted as an opportunity-seeking perspective anchored in the search for global performance. The findings also show that under the relationship-based governance system of Morocco, SMEs mainly see CSR from a constraint-reducing perspective. However, some Moroccan SMEs have begun to see the economic opportunities of CSR, especially in accessing foreign markets.     

Ethical Reasoning and the Use of Insider Information in Stock Trading

The cognitive developmental theory of ethics suggests that there is a positive relationship between ethical reasoning and ethical behavior. In this study, we trained a sample of accounting and finance students in performing competitive stock trading in our state-of-the-art trading room. The subjects then performed trading of stocks under two experimental conditions: insider information, and no-insider information where significant performance-based financial awards were at stake. We also administered the Defining Issues Test (DIT). Ethical behavior, as the dependent variable was measured in a binary scale: whether the subjects used insider information for trading of stocks or not. Ethical reasoning as measured by the DIT P-score indicated statistically significant effect on ethical behavior. The results have important implications for recruitment and training of professionals engaged in the use of financial markets for securities trading.     

Public Versus Private Sector Procurement Ethics and Strategy: What Each Sector can Learn from the Other

The government purchasing market constitutes the largest business sector in the world. While marketers would benefit from a deep understanding of both sectors, how the two sectors differ in terms of ethics and strategy largely remains unknown. The purpose of this research, therefore, is to explore differences between the for-profit and not-for-profit sectors on two critical aspects of business-to-business procurement: ethics and strategy. Using survey data from a sample of 328 procurement professionals in the for-profit and not-for-profit sectors, key differences are explored. Findings suggest that buyers in the for-profit sector are more likely to behave opportunistically. Conversely, the buyers’ leaders in the not-for-profit sector behave more opportunistically and are more willing to turn a blind eye to their subordinate buyers’ opportunistic behaviors. In addition, key differences in procurement strategy are unveiled suggesting that not-for-profit procurement practices have some room for improvement. Based on the findings, theoretical and managerial implications are drawn, and a future research agenda is proposed.