‘An Empirical Investigation of the Relationships among a Consumer’s Personal Values, Ethical Ideology and Ethical Beliefs’

This study provides an additional partial test of the Hunt–Vitell theory [1986, Journal of Macromarketing, 8, 5–16; 1993, ‘The General Theory of Marketing Ethics: A Retrospective and Revision’, in N. C. Smith and J. A. Quelch (eds.), Ethics in Marketing (Irwin Inc., Homewood), pp. 775–784], within the consumer ethics context. Using structural equation modeling, the relationships among an individual’s personal values (conceptualized by the typology of Schwartz [1992, ‘Universals in the Content and Structure of Values: Theoretical Advances and Empirical Tests in 20 Countries’, in M. P. Zanna (ed.), Advances in Experimental Social Psychology (Vol. 25, Academic Press, Orlando), pp. 1–65] ethical ideology and ethical beliefs are investigated. The validity of the model is assessed in a two-step procedure. First, a measurement model of constructs is tested for key validity dimensions. Next, the hypothesized causal relationships are examined in several path models, comparing no mediation, partial and complete mediation of ethical ideology. The empirical results indicate that individual differences in value priorities (resultant conservation and resultant self-enhancement) directly and indirectly (through idealism) influence the judgment of ethically questionable consumer practices. These findings may significantly contribute to the theoretical understanding of ethical decision-making.     

A Proposed Infrastructural Model for the Establishment of Organizational Ethical Systems

We define ethical system infrastructure as being composed of three major factors – means, motivation, and opportunity. Means are defined as organizational rules, policies, and procedures. Motivation focuses upon the values and the interests being pursued by the position occupant and the organizational value system, while opportunity is discussed in terms of the environment in which the dilemma occurs, proposing that position in the hierarchy presents its own unique set of ethical dilemmas. Ethical breeches are discussed in terms of the interactional processes among means, motivation, and opportunity. Finally, a sequential process is suggested to use the infrastructural components to institutionalize organizational ethics training and subsequent behavior.     

The Effects of Person–Organization Ethical Fit on Employee Attraction and Retention: Towards a Testable Explanatory Model

An exploratory model is presented as a heuristic to indicate how individual perceptions of corporate reputation (before joining) and corporate ethical values (after joining) generate specific individual organizational senses of fit. The paper suggests that an ethical dimension of person-organization fit may go some way in explaining superior acquisition and retention of staff by those who are attracted to specific organizations by levels of corporate social performance consonant with their ethical expectations, or who remain with them by virtue of better personal ethical fits with extant organizational ethical values. Specifically, the model suggests that individual misfits that arise from ethical expectations that either exceed or fall short of perceived organizational ethical performances lead to problematic acquisition and retention behavioural outcomes.     

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.     

The Effect of Organizational Culture and Ethical Orientation on Accountants' Ethical Judgments

This paper examines the relationship between organizational ethical culture in two large international CPA firms, auditors' personal values and the ethical orientation that those values dictate, and judgments in ethical dilemmas typical of those that accountants face. Using an experimental task consisting of multiple judgments designed to vary in "moral intensity" (Jones, 1991), and unique as well as tried-and-true approaches to variable measurements, this study examined the judgments of more than three hundred participants in our study. ANCOVA and path analysis results indicate that: (1) Ethical judgments in situations of high moral intensity are affected by personal values and by environmental variables, such as the professional code of conduct (direct and indirect effects) and previous ethics instruction (direct effect only). (2) Corporate ethical culture, and a relatively strong firm rules-orientation, affect auditors' idealism but not relativism, and therefore indirectly affect ethical judgments. Jones' (1991) moral intensity argument is supported: differences in the characteristics of specific judgment tasks apparently result in different decision processes.     

The Relationship of Ethical Decision-Making to Business Ethics and Performance in Taiwan

This paper examines the relationship of ethical decision-making by individuals to corporate business ethics and organizational performance of three groups: (i) SMEs (small and medium enterprises), (ii) Outstanding SMEs (the Key Stone Award winners) and (iii) Large Enterprises, in order to provide a reference for Taiwanese entrepreneurs to practice better business ethics. The survey method involved random sampling of 132 enterprises within three groups. Some 524 out of 1320 questionnaires were valid. The survey results demonstrated that ethical decision-making by individuals, corporate business ethics and organizational performance are highly related. In summary, then, high levels of organizational performance were directly attributable to high levels of applied corporate and individual ethics. Furthermore, there is a demonstrable tendency for Outstanding SMEs to reject ethically unsound practices such as padded expense accounts, tax evasion and misleading advertising. The measurement criteria used to assess organizational performance, however, did not include an objective evaluation of financial performance.     

A Review of Empirical Studies Assessing Ethical Decision Making in Business

This article summarizes the multitude of empirical studies that test ethical decision making in business and suggests additional research necessary to further theory in this area. The studies are categorized and related to current theoretical ethical decision making models. The studies are related to awareness, individual and organizational factors, intent, and the role of moral intensity in ethical decision making. Summary tables provide a quick reference for the sample, findings, and publication outlet. This review provides insights for understanding organizational ethical decision constructs, where ethical decision making theory currently stands, and provides insights for future empirical work on organizational ethical decision making.     

An Examination of the Relationship Between Ethical Work Climate and Moral Awareness

This paper draws from the fields of history, sociology, psychology, moral philosophy, and organizational theory to establish a theoretical connection between a social/organizational influence (ethical work climate) and an individual cognitive element of moral behavior (moral awareness). The research was designed to help to fill a gap in the existing literature by providing empirical evidence of the connection between organizational influences and individual moral awareness and subsequent ethical choices, which has heretofore largely been merely assumed. Results of the study provide evidence that ethical work climate (EWC) is a primary predictor of individual moral awareness, and that the influence of social factors often overrides the effects of individual differences in a work group setting. Implications for future research are provided.     

Lyin' T(*)gers, And 'Cares' Oh My: The Case for Feminist Integration of Business Ethics

In this re-visioning, business ethics would integrate feminist theories and pedagogy which include the diversity of women in terms of race/ethnicity, class and sexual orientation, thereby expanding its coverage to include issues of power, gender, cultural and theoretical conceptualizations, both in the conceptualization of morality, as well as in ethical constructs of analysis. My research indicates that the integration of feminist scholarship, ethics and pedagogy would make it possible to teach ethical decision making, and ultimately increase the likelihood of ethical behavior, by showing students how to harness the multi-cultural ways of thinking needed to resolve ever more complex organizational problems.Use of the four-stage model I propose would effectively address the three major issues which make teaching business ethics in a new way to critical. The curricula, as modified, would present enriched ethical theories which are contextual and grounded in experience and which grant the connected nature of all organizational stakeholders. By recreating personal identity, autonomy and power as a theories of community, teaching its responsible use would be easier. Expanding the definition of business ethics to include authenticity and mutuality would move it beyond "social responsibility" to a model of interrelationship which encourage principled thinking leading to more ethical behavior. By combing empirically connected ethical theories, and conflict resolution techniques, ethical precepts can be molded into more usable curriculum models.The curricula, as modified, presents enriched ethical theories which address cognitive moral development from will to action. It is contextual, grounded in human experience and grants the connected nature of all organizational stakeholders. By recreating personal identity, autonomy and power as theories of community, we could fortify the moral will; by expanding the definition of business ethics to include authenticity and mutuality, sensitivity to ethical issues would move beyond "social responsibility" to discernment of interrelationship, encouraging more principled thinking. Judgment regarding responsible use of institutional resources would be easier, once students were able to combine empirically connected ethical theories and conflict resolution techniques because ethical precepts could be molded into non- abstract curricular models.My hypothesis is that this approach will produce a more holistic curricula for business ethics. That this course, when defined as the study of how humans grow in their capacity and ability to resolve ethical conflicts, might increase students' ethical analysis, and thus their willingness to act ethically when faced with future moral conflicts. My joyful discovery was that this effort at integration could be enhanced by using an interdisciplinary approach, fusing feminist scholarship from psychology, sociology, and philosophy, as well as economic and business organizational theory. My hope is that re-visioning business ethics as a holistic learning process might enhance moral growth, and better prepare business students who can confidentially use institutional power for ethical ends.     

Ethical Behavior of Marketing Managers and MBA Students: A Comparative Study

The ethical tendencies of graduate business students from the United States were examined by analyzing their reactions to ethical dilemmas in a replicated study, which presented a set of ethical problem situations. These dilemmas dealt with coercion and control, conflict of interest, physical environment, paternalism and personal integrity. A comparison of these findings with the previous study of marketing managers indicates that the MBA students exhibited a greater degree of sensitivity to the ethical dimensions of business decision-making. Implications are drawn for business education and further research.     

Individual, Social and Organizational Sources of Sharing and Variation in the Ethical Reasoning of Managers

A growth in consumer and media ethical consciousness has resulted in the need for organizations to ensure that members understand, share and project an approved and unified set of ethics. Thus understanding which variables are related to sharing and variation of ethical reasoning and moral intent, and the relative strength of these variables is critical. While past research has examined individual (attitudes, values, etc.), social (peers, significant others, etc.) and organizational (codes of conduct, senior management, etc.) variables, it has focused on their influence on the individual – and not on their role in relation to patterns of group sharing and variation in an organization. Introduced as a new methodology to study ethics, microcultural analysis stipulates that to explain patterns of sharing and variation, one must understand how individual, social and organizational variables influence sharing and variation. Key hypotheses predict that managers who share in individual, social or organizational determinants will be more likely to share in ethical reasoning and moral intent. Qualitative and quantitative research supports the key hypotheses, finding social ties, personal moral intensity, Machiavellianism, locus of control and codes of ethics as significant determinants. Individuals who share in these determinants are more likely to share in ethical reasoning and moral intent. Additionally, regression analysis reveals social ties and personal moral intensity to be the strongest determinants. Based on these results, managerial recommendations focus on a holistic approach, manipulating these three determinants to cultivate a unified code of ethics within an organization.     

Influences Upon Organizational Ethical Subclimates: A Replication Study of a Single Firm at Two Points in Time

This research replicates Weber's 1995 study of a large financial services firm that found that ethical subclimates exist within multi-departmental organizations, are influenced by the function of the department and the stakeholders served, and are relatively stable over time. Relying upon theoretical models developed by Thompson (1967) and Victor and Cullen (1998), hypotheses are developed that predict the ethical subclimate decision-making dimensions and type for diverse departments within a large steel manufacturing firm and that these ethical subclimate types will be stable across the two periods of time when the data were collected. Employees were surveyed in 1995 and again in 1999 using Victor and Cullen's Ethical Climate Questionnaire. Response rates of 88 and 94 percent were achieved. Contrary to Weber's findings, our results imply that, in both samples, ethical subclimates may be determined by the strength of an organization's overall ethical climate, rather than the department's function. However, we did find support for Weber's earlier contention that these subclimates are relatively stable. Our results also suggest that differences may exist across industries, that is when comparing a large steel manufacturer, as we did in our study, with a large financial services organization, as Weber did in his 1995 study.     

Reinforcing Ethical Decision Making Through Organizational Structure

In this paper I examine how the constituent elements of a firm's organizational structure affect the ethical behavior of workers. The formal features of organizations I examine are the compensation practices, performance and evaluation systems, and decision-making assignments. I argue that the formal organizational structure, which is distinguished from corporate culture, is necessary, though not sufficient, in solving ethical problems within firms. At best the formal structure should not undermine the ethical actions of workers. When combined with a strong culture, however, the organizational structure may be sufficient in promoting ethical conduct. While helpful, ethics training and corporate codes are neither necessary nor sufficient in promoting ethical behavior within firms.     

Ethical Standards and Ideology Among Korean Public Relations Practitioners

The purpose of this paper is to investigate the Korean public relations practitioners' perceptions toward ethical issues, individual practices, and ethical standards in the context of ethical ideology. The survey was conducted with the Korean public relations practitioners. A 2 (Relativism: High/Low) × 2 (Idealism: High/Low) factorial design was devised for the analysis.The MANOVA results showed that ethical ideology (idealism and relativism) had significant effects on ethical decision-making. Idealistic ideology had a main effect on ethical issues, individual practices, and ethical standards. However, relativistic ideology only affected the decision-making process related to ethical issues. No interaction effects were detected. This study indicated that the individual's ethical ideology could be an important variable in explaining the outcomes of the individual's ethical decision-making among Korean public relations practitioners.     

Determinants of Ethical Decision Making: The Relationship of the Perceived Organizational Environment

This study attempts to help explain the ethical decision making of individual employees by determining how the perceived organizational environment is related to that decision. A self- administered questionnaire design was used for gathering data in this study with a sample size of 245 full-time employees. Perceived supervisor expectation, formal policies, and informal policies were used to assess the expressed ethical decision of the respondents. The findings indicate that the perceived organizational environment is significantly related to the ethical decision of the respondent.     

Employee Reactions to Internet Monitoring: The Moderating Role of Ethical Orientation

Research has demonstrated that employee reactions to monitoring systems depend on both the characteristics of the monitoring system and how it is implemented. However, little is known about the role individual differences may play in this process. This study proposes that individuals have generalized attitudes toward organizational control and monitoring activities. We examined this argument by assessing the relationship between employees’ baseline attitudes toward a set of monitoring and control techniques that span the employment relationship. We further explore the effects of employees’ generalized attitudes toward monitoring and their individual ethical orientations on their attitudinal reactions to an Internet monitoring system implemented in their workplace. Results of a longitudinal study indicate that as expected, prior beliefs and ethical orientation interact to affect employees’ reactions to monitoring systems. Implications for research and practice are discussed.     

Perceptions of Organizational Ethicality: Do Inflated Perceptions of Self Lead to Inflated Perceptions of the Organization?

Scholars have suggested that the tendency for an individual to perceive him- or herself as more ethical than others might influence the individual's perceptions of his or her organization's ethics. The purpose of this study is to consider if and/or when such a relationship exists. A thorough consideration of the nature of perceptions of relative ethicality suggests that a positive self-bias would negatively influence perceptions of organizational ethicality. The results of an empirical study involving working managers and employees of a hospital support that argument. Furthermore, the results indicate that organizational identification, perceived organizational cohesion, and an individual's insulation also influence individual perceptions of relative organizational ethicality. The findings illuminate this particular phenomenon and further our understanding of the relationship between the individual and the organization, more generally.     

Ethical Decision Making in the Public Accounting Profession: An Extension of Ajzen’s Theory of Planned Behavior

The purpose of this study is to expand our understanding of the factors that influence ethical behavioral intentions of public accountants. Recent scandals have dominated the news and have caused legislators, regulators and the public to question the role of the accounting profession. Legislative changes have brought about major structural changes in the profession and continued scrutiny will surely lead to further changes. Thus, developing an understanding of the personal and contextual factors that influence ethical decisions is critical. An extension of the theory of planned behavior [Ajzen, I.: 1985, Action Control-From Cognition to Behavior (Springer, Heidelberg)], the model used in this study examined the influence of personal, social and organizational factors on ethical intentions. Specifically, the individual level model tested direct effects of attitudes, subjective norms, perceived behavioral control, moral sensitivity and ethical climate. Professionals from five accounting firms completed a survey that measured responses to ethical dilemmas related to the public accounting domain. To minimize the potential impact of common method bias, the survey instrument was administered in two phases. Hypotheses were evaluated using a structural modeling technique, partial least squares. Results show strong support for a direct relationship between attitudes and ethical intentions. The proposed direct effect of subjective norms was not supported. However, a significant relationship between subjective norms and attitudes was found. Professionals’ attitudes towards ethical issues clearly influence intentions. Moreover, this study illustrates the potential influence of social factors in attitude formation. Future research should explore the factors in the public accounting domain that most strongly influence attitude formation. This study suggests that the theory of reasoned action offers a useful framework for exploring these issues.     

Organization-Harm vs. Organization-Gain Ethical Issues: An Exploratory Examination of the Effects of Organizational Commitment

The existing literature on the relationship between organizational commitment and ethical decision making suggests that ethical decision makers with higher organizational commitment are less likely to engage in ethically questionable behaviors. The ethical behaviors previously studied in an organizational commitment context have been organization-harm issues in which the organization was harmed and the individual benefited (e.g., overstating an expense report). There is another class of ethical issues in an organizational context, however. These other issues, termed organization-gain issues, focus on the organization obtaining a benefit while outsiders, such as investors, are harmed (e.g., overstating reported revenue). We explore whether individuals with higher organizational commitment are more or less likely to engage in questionable behaviors that benefit the organization. Results of our study indicate that individuals with higher organizational commitment are less likely to engage in ethically questionable behaviors, regardless of whether the behaviors are organization-harm or organizational-gain issues.     

A model of decision-making incorporating ethical values

A model is presented which describes the process decision-makers follow when faced with problems containing ethical dimensions. The model, based upon the empirical literature, is designed to provide guidance to researchers studying ethical behavior in business. The model portrays the decision-maker with a set of personal values which are mediated by elements of the organization's culture. The combination of personal values and organizational influences yields decisions which may be significantly different from those made based upon personal values alone. Inclusion of the personal values of the decision-maker as the dominant individual input and an explicit discussion of the ethical decision process make this model more comprehensive than other recent ethics models. David J. Fritzsche is Visiting Professor in the Department of Managing and Organization at the University of Washington. His articles have appeared in numerous journals and books. He is also a co-author of the Business Policy Game, a strategic management simulation.