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.     

Antecedents of Managers Moral Reasoning

This research investigates the degree to which there are differences in the moral reasoning ability of business top, middle, and first-line managers in selected industries. This study considered the influence of three independent variables: reported organizational ethical climate, locus of control, and selected demographic and institutional variables on managers reasoning ability. This researcher relies on Kohlberg's theory of moral development, Victor and Cullen's ethical work climate theory, and Rotter's theory of internal-external locus of control (which evolved from Carl Jung). A short form of Rest's DIT instrument measured the moral reasoning abilities of the participants. Selected demographic and institutional variables (age, work tenure, education, gender, management level and industry category) were also measured. A survey questionnaire was sent to 400 managerial and executive level employees at a random sample of Fortune 500 firms throughout the United States: Dun &; Bradstreet provided the researcher with a proportional stratified random sample of these 400 managerial and executive level employees at a variety of organizations. Interestingly, women exhibited insignificant higher (more external) mean I-E scores and (more principled) higher mean “P” score than men. Statistically significant relationship between age and perceived organizational ethical climate types (Caring, Law and Code, Rule, Instrument, and Independence) and between management levels and organizational ethical climate were also found.     

Do Complex Moral Reasoners Experience Greater Ethical Work Conflict?

Individuals who disagree that organizational interests legitimately supersede those of the wider society may experience conflict between their personal standards of ethics and those demanded by an employing organization, a conflict that is well documented. An additional question is whether or not individuals capable of complex moral reasoning experience greater conflict than those reasoning at a less developed level. This question was first positioned in a theoretical framework and then investigated using 115 survey responses from a student sample. Correlational analysis and hierarchical regression indicated that individuals scoring high on the Defining Issues Test measure of Kohlberg's stages of moral development experienced significantly greater workplace ethical conflict than low scorers. The finding that complex moral reasoners perceive greater conflict between their personal standards and typical organizational demands raises the issue of what reasoning orientation is rewarded in organizations. Individuals capable of complex moral reasoning may be likely to leave traditional organizations due to high conflict but more ‘ethically friendly’ organizations for complex reasoners seem unlikely unless these people occupy influential positions.     

Moral Reasoning as a Determinant of Organizational Citizenship Behaviors: A Study in the Public Accounting Profession

This study examines the relationship between an employee's level of moral reasoning and a form of work performance known as organizational citizenship behaviors (OCB). Prior research in the public accounting profession has found higher levels of moral reasoning to be positively related to various types of ethical behavior. This study extends the ethical domain of accounting behaviors to include OCB. Analysis of respondents from a public accounting firm in the northeast region of the United States (n = 107) support a positive and significant relationship between moral reasoning and two dimensions of OCB: interpersonal helping behaviors and sportsmanship behaviors. This study controls for previously identified determinants of OCB (e.g., procedural justice) and demographic variables (age, sex, tenure and social desirability). Results suggest that moral reasoning accounts for professional behaviors that are perceived as intrinsically good by the employee and economically beneficial by the employer.     

Business Ethics: A Study of the Moral Reasoning of Selected Business Managers and the Influence of Organizational Ethical Climate

Since manager's decisions impact organizational goals and organizational ethical behavior, this researcher investigated the degree to which there are differences in the moral reasoning ability of business managers of selected industries and whether there are significant differences between top, middle, and first-line management levels. To determine the relationship between managers' locus of control and their moral reasoning ability, this study considered three independent variables: reported organizational ethical climate, locus of control, and selected demographic and institutional variables. For a foundation, this researcher relied on Kohlberg's theory of moral development, Victor and Cullen's ethical work climate theory, and Rotter's theory of internal—external locus of control (which evolved from Carl Jung). The short form of Rest's DIT instrument measured the moral reasoning abilities of the participants. The selected demographic and institutional variables (age, work tenure, education, gender, management level and industry category) provided the useful information to investigate these relationships of moral reasoning ability of individual managers. A survey questionnaire was sent to 400 managerial and executive level employees at a random sample of Fortune 500 firms throughout the United States: Dun and Bradstreet provided the researcher with a proportional stratified random sample of these 400 managerial and executive level employees at a variety of organizations. Interestingly, women in this study exhibited slightly higher (more external) mean I—E scores and (more principled) higher mean “P” score than men. While both of these results were anticipated, neither was significant. However, one major finding of this study was the statistically significant relationship between age and perceived organizational ethical climate types (Caring, Law and Code, Rule, Instrument, and Independence). Another major finding revealed a statistically significant relationship between management levels and organizational ethical climate.     

Consideration of the Role of Guanxi in the Ethical Judgments of Chinese Managers

The importance of personal connections and relationships, or guanxi when doing business with the Chinese is widely acknowledged amongst Western academics and business managers alike. However, aspects of guanxi-related behaviours in the workplace are often misunderstood by Westerners with some going so far as to equate guanxi with forms of corruption. This study extends earlier study of Tan and Snell: 2002, Journal of Business Ethics 41(December), 361–384) in its investigation of the underlying modes of moral reasoning in ethical decisions relating to aspects of guanxi, amongst Hong Kong managers. Managers’ ethical judgements and underlying moral reasoning relating to a series of guanxi-related behaviours were recorded. Content analysis yielded categories that correspond with categories of moral reasoning described in Kohlberg’s (1969, Handbook of Socialization Theory and Research, Rand McNally, Chicago, pp. 347–480) model. As hypothesised, it was found that harsher ethical evaluations of guanxi-related behaviours were positively correlated with the stage of moral reasoning. The most common types of reasoning were those corresponding to Kohlberg’s stages four and five which relate to moral reasoning based on law and order, and on reason rather than emotion. Stage 6, concerned with more universalistic approaches to moral reasoning, was utilised considerably less, consistent with popularly held beliefs of the relativistic nature of Chinese ethics.     

Does lower-stage ethical reasoning emerge in more familiar contexts?

Four real-life dilemma cases collected from Hong Kong managers were included, along with two other cases previously used by Weber (1991), in an instrument designed to assess ethical reasoning capacity. This was completed by 86 part-time post-graduate students, all of whom were managers with at least four years working experience. Respondents' measured ethical reasoning capacity appeared to be at least as high as comparable samples in the U.S.A. The mean ethical reasoning stage varied between cases. Contrary to expectations, the unfamiliarityper se of a case did not affect ethical reasoning which instead tended toward higher measured stages when issues of public hazard or environmental pollution were introduced, and toward lower measured stages where personal or family finances were at stake. Two methodological points were made signalling the need for caution in research of this kind. First, because of reservations about the adequacy of the standard Kohlbergian model of ethical reasoning development, a scoring guide based on a revised Kohlbergian model of ethical reasoning was used to analyze the replies, rendering comparisons with other samples inexact. Second, the possible phenomenon of quasi Stage Five reasoning renders problematic the identification of true Stage Five ethical reasoning.Robin Snell directs the M.B.A. at the City University of Hong Kong, where he is University Senior Lecturer. He has editedManagement Learning and has published articles inPersonnel Review on experiential learning, moral dilemmas and management development. His book,Developing Skills for Ethical Management, synthesizes these interests.     

Accountants’ Value Preferences and Moral Reasoning

This paper examines relationships between accountants’ personal values and their moral reasoning. In particular, we hypothesize that there is an inverse relationship between accountants’ “Conformity” values and principled moral reasoning. This investigation is important because the literature suggests that conformity with rule-based standards may be one reason for professional accountants’ relatively lower scores on measures of moral reasoning (Abdolmohammadi et al. J Bus Ethics 16 (1997) 1717). We administered the Rokeach Values Survey (RVS) (Rokeach: 1973, The Nature of Human Values (The Free Press, New York)) and the Defining Issues Test (DIT) (Rest: 1979, Development in Judgment Moral Issues (University of Minnesota Press, Minneapolis, MN)) to164 graduating accounting students enrolled in capstone courses at two universities in the Northeastern United States. As potential entrants into the accounting profession, these subjects bring their values and moral reasoning to bear on attitudes and behaviors in the workplace. We find a highly significant inverse relationship between “Conformity” values and principled moral reasoning (i.e., those who prefer Conformity values have lower levels of moral reasoning). However, we also find that accounting students as a group do not prefer Conformity values above other values such as Self-actualization and Idealism, and we find positive relationships between Self-actualization and Idealism values and moral reasoning. Implications for values and ethics research are discussed.An earlier version of this paper was presented at a workshop at Bentley College and we have greatly benefited from participants comments, especially those of Jean Bedard, Marty Howe, James Hunton, Mark Nixon, and Jay Thibodeau.Mohammad J. Abdolmohammadi is the John E. Rhodes Professor of Accountancy at Bentley College. Having interest primarily in behavioral auditing and ethics research, professor Abdolmohammadi has published extensively in Accounting and Business Research, The Accounting Review, Advances in Accounting, Auditing: a Journal of Practice and Theory, Behavioral Research In Accounting, Contemporary Accounting Research, Journal of Business Ethics, Teaching Business Ethics, and Organizational Behavior and Human Decision Processes among others.C. Richard Baker is Professor of Accounting at Adelphi University. His primary research interests are in regulatory, ethical and disciplinary aspects of the public accounting profession. He has published over fifty journal articles in accounting and ethics research.     

The Questionable Use of Moral Development Theory in Studies of Business Ethics: Discussion and Empirical Findings

The topic of the article is how moral development theory can enlighten the understanding of ethical behaviour in business. It discusses previous research on the subject, and reports an empirical study of academics (engineers and business economists with a master degree) working in the private sector in Norway.Moral development theory is based on a long research tradition, and many researchers within business ethics have assumed the importance of moral reasoning in business environments. However, the truth of these assumptions has not been confirmed by previous empirical research.The article reports on my investigation into the relationship between moral reasoning, ethical attitudes and decision-making behaviour. The data were collected by a survey study among Norwegian engineers and business economists working in businesses (N = 449) in 1997.It has been hypothesised that strong ethical attitudes would have a restraining effect on moral reasoning. In order to test this, ethical attitudes were categorized into four issue categories. The assumption being that the four categories would explain the different restraints on moral reasoning. The statistical testing showed that there was a negative, but not significant, correlation between strong attitudes and good moral reasoning ability.It was also hypothesised that good ability in moral reasoning would tend to exhibit a smaller difference between Policy-decisions and Action-decisions. This hypothesis was based on the difference in behaviour explained in "espoused theory" and "theory in use". When making policy-decisions these can be based on espoused theory and nice "talk" because it is always possible to make exceptions to or reconsider a policy. Action-decisions, on the other hand, are very concrete because they immediately trigger an action. The statistical testing rejected my hypothesis but gave a significant converse result: Good ability in moral reasoning seems to imply less stability and more inconsistence.The article concludes with the fact that moral reasoning testing seems to explain some differences in moral reasoning among people in business but not what kind of behavioural effects these differences actually have.     

Does Tenure Impact Upon the Principled Reasoning of Managers?

The relationship between tenure and principled reasoning is of vital importance to the fields of management and business ethics, as more tenured managers often hold influential posts and have the ability to affect the overall ethical tones of their organizations. Few researchers have studied this relationship, however, and those studies that have been conducted have produced mixed results. While some researchers have found that greater tenure is associated with higher levels of ethical reasoning, others have found the reverse to be true. The findings of this particular study of 270 current U.S. corporate managers, who responded to a nationwide survey, indicated that there is indeed a link between tenure and principled reasoning. More tenured managers demonstrated lower principled reasoning than their less tenured counterparts. As the number of years of tenure increased, principled reasoning scores declined. The results of this study, as well as a comparison to the results of previous studies that have been conducted, are discussed within this paper.     

Principled moral reasoning: Is it a viable approach to promote ethical integrity?

In response to recent recommendations for the teaching of principled moral reasoning in business school curricula, this paper assesses the viability of such an approach. The results indicate that, while business students' level of moral reasoning in this sample are like most 18- to 21-year-olds, they may be incapable of grasping the concepts embodied in principled moral reasoning. Implications of these findings are discussed. James Weber is currently an Assistant Professor of Management at Marquette University. He has published articles on managerial values and moral reasoning and the teaching of business ethics in Research in Corporate Social Performance and Policy: Empirical Studies of Business Ethics and Values, International Journal of Value Based Management, Human Relations, and Journal of Business Ethics. Sharon Green is currently an Assistant Professor of Accounting at the University of Wisconsin-Madison. Her research emphasizes information processing aspects of decision making in governmental, auditing and educational contexts. Her publications have appeared in Accounting Review and Research in Governmental and Non-Profit Accounting.     

Human Rights,Transnational Corporations and Embedded Liberalism: What Chance Consensus?

I assessed change in students’ moral reasoning following five 75-min classes on business ethics and two assignments utilizing a novel pedagogical approach designed to foster ethical reasoning skills. To minimize threats to validity present in previous studies, an untreated control group design with pre- and post-training measures was used. Training (n = 114) and control (n = 76) groups comprised freshmen business majors who completed the Defining Issues Test before and after the training. Results showed that, controlling for pre-training levels of moral reasoning, students in the training group demonstrated higher levels of post-training principled moral judgment than students in the control group.     

<Emphasis Type="Italic">The Sound of Silence – A Space for Morality?</Emphasis> The Role of Solitude for Ethical Decision Making

Building on research and measures on solitude, ethical leadership theories, and decision making literatures, we propose a conceptual model to better understand processes enabling ethical leadership neglected in the literature. The role of solitude as antecedent is explored in this model, whereby its selective utilization focuses inner directionality toward growing authentic executive awareness as a moral person and a moral manager and allows an integration between inner and outer directionality toward ethical leadership and resulting decision-making processes that will have an impact on others’ perceptions of leader authentic ethical leadership. Thus it is proposed that utilization of solitude positively predicts executive-level authentic ethical leadership action and in turn, ethical decision making perceived fairness and integrity. We also propose two moderators, strengthening the hypothesized (positive) association between solitude and ethical leadership; these are the executive’s ability for moral reasoning and a motivation for socialized (as opposed to personalized) power.     

The Third Eye: Exploring Guanxi and Relational Morality in the Workplace

We examine the use of Confucian relational morality as an alternative reference point to that of modernist morality in judging workplace ethical conduct. A semi-structured interview based study involving 46 ethnic Chinese managers and 30 non-Chinese expatriate managers in Singapore, provided evidence of the use of traditional guanxi-linked morality as a moral resource by some of the former group in judging workplace ethical dilemmas. While such morality played only a minor role in moral reasoning, and was largely overshadowed by modernist morality, the research nonetheless demonstrates that moral reasoning reflects wider cultural heritage, and is not merely a function of corporate culture and individual moral development.     

The Impact of Moral Reasoning and Retaliation on Whistle-Blowing: New Zealand Evidence

This study examined experimentally the effect of retaliation strength and accounting students’ level of moral reasoning, on their propensity to blow the whistle (PBW) when faced with a serious wrongdoing. Fifty-one senior accounting students enrolled in an auditing course offered by a large New Zealand university participated in the study. Participants responded to three hypothetical whistle-blowing scenarios and completed an instrument that measured moral reasoning (Welton et al., 1994, Accounting Education. International Journal (Toronto, Ont.) 3(1), 35–50) on one of two conditions – i.e., strong or weak retaliation for whistle-blowing. Consistent with the results of Arnold and Ponemon (1991, Auditing: A Journal of Practice and Theory 10, 1–15) this study found that the strength of retaliation and participants’ moral reasoning level positively affected their PBW. Unlike results reported in Arnold and Ponemon (1991, Auditing; A Journal of Practice and Theory 10, 1–15) a significant interaction effect of moral reasoning level and retaliation on participants’ PBW was not found. However, results showed that a participant’s gender has a significant effect on the relationship between his or her moral reasoning level and PBW. These results support the need to improve ethical awareness through accounting education and to increase protection for whistle-blowing (Miceli 2004, Journal of Management Inquiry 13, 364–366). Furthermore, many participants found it difficult to take a stand when serious wrongdoing is discovered. Therefore, policymakers must exercise caution when placing heavy reliance on whistle-blowing, especially when whistle-blower protection processes are complex and not easily accessible, and processes to facilitate whistle-blowing may vary substantially between public and private sector organizations (Scholtens, 2003, Review of the operation of the Protected Disclosures Act 2000: Report to the Minister of State Services).     

The developmental self-valuing theory: A practical approach for business ethics

Ethics in business has been an increasingly controversial and important topic of discussion over the last decade. Debate continues about whether ethics should be a part of business, but also includes how business can implement ethical theory in day-to-day operations. Most discussions focus on either traditional moral philosophy, which offers little of practical value for the business community, or psychological theories of moral reasoning, which have been shown to be flawed and incomplete. The theory presented here is called the Developmental Self-Valuing Theory, and adapts the general psychological theory of Albert Bandura for ethics in business. In this theory, individuals first learn moral values from associations with others who are significant in their lives. Secondly, self-regulation is learned through a process of self-observation, self-judgment and self-reaction. Thirdly, the individual must believe that he can act ethically. Situational constraints and inducements, as well as positive and negative consequences for specific behaviors, will also affect the level of ethical performance. Each of these elements is examined and combined to achieve a practical method for increasing the level of ethics in corporate activity through selection, training and situational enhancement. Larry Jensen is Professor of Psychology at Brigham Young University. He has published in the areas of moral reasoning, education, and behavior. Steve Wygant is a doctoral candidate in the area of Social Psychology with primary interests in the philosophy of science and personality research.     

A Cross-Cultural Comparison of the Deliberative Reasoning of Canadian and Chinese Accounting Students

Absract  Using Hofstede’s culture theory (1980, 2001, Culture’s Consequences: Comparing Values, Behaviours, Institutions, and Organizations Across Nation. Sage, NewYork), the current study incorporates the moral development (e.g. Thorne, 2000; Thorne and Magnan, 2000; Thorne et al., 2003) and multidimensional ethics scale (e.g. Cohen et al., 1993; Cohen et al., 1996b; Cohen et al., 2001; Flory et al., 1992) approaches to compare the ethical reasoning and decisions of Canadian and Mainland Chinese final year undergraduate accounting students. The results indicate that Canadian accounting students’ formulation of an intention to act on a particular ethical dilemma (deliberative reasoning) as measured by the moral development approach (Thorne, 2000) was higher than Mainland Chinese accounting students. The current study proposes that the five factors identified by the multidimensional ethics scale (MES), as being relevant to ethical decision making can be placed into␣the three levels of ethical reasoning identified by Kohlberg’s (1958, The Development of Modes of Moral Thinking and Choice in the Years Ten to Sixteen. University of Chicago, Doctoral dissertation) theory of cognitive moral development. Canadian accounting students used post-conventional MES factors (moral equity, contractualism, and utilitarianism) more frequently and made more ethical audit decisions than Chinese accounting students. Lin Ge is an accountant at Guest-tek Interactive Entertainment Ltd. Her research interest includes ethics and judgment of accountants and auditors, cross-cultural studies and international business. Stuart Thomas, Ph.D., is associate professor of accounting in the Faculty of Management at the University of Lethbridge, Alberta, Canada. He has published in the Journal of Business Ethics, Business and Society, Research on Professional Responsibility and Ethics in Accounting, Advances in Management Accounting and the Journal of Accounting Case Research. His research interests focus on ethical decision making and the effects of pay schemes on performance and standard setting.     

Factors that Influence the Moral Reasoning Abilities of Accountants: Implications for Universities and the Profession

The need to maintain the public trust in the integrity of the accounting profession has led to increased interest in research that examines the moral reasoning abilities (MRA) of Certified Public Accountants (CPAs). This study examines the MRA of CPAs practicing in small firms or as sole practitioners and the factors that affect MRA throughout their working careers. The results indicate that small-firm accounting practitioners exhibit lower MRA than expected for professionals and that age, gender and socio-political beliefs affect the moral reasoning abilities of small-firm practitioners. We also find that completion of an ethics course in college has a positive impact on MRA. Also, the survey respondents indicate overwhelming support for including ethics courses within the business curriculum. Finally, the fact that those accountants with the lowest MRA are the least supportive of ethical training may indicate the need for mandatory, rather than optional, training in ethics both in university and Continuing Professional Education courses.     

The Untapped Relevance of Moral Development Theory in the Study of Business Ethics

The construct of cognitive moral development seemingly has powerful practical relevance in many areas of life. Nonetheless, moral reasoning seems of marginal relevance at best in the context of business ethics. Simply put, moral reasoning measurement indices are often only weakly related to many other apparently pertinent variables, and such findings cast doubt upon the construct validity of cognitive moral development. Many such unexpectedly weak relationships, however, may stem from two largely unrecognized methodological artifacts. The first artifact is an almost total reliance on the P index of the Defining Issues Test (DIT) designed to assess moral development even when this index may be inappropriate in a particular context. A second artifact that seems particularly salient in the context of attitudes toward authority involves a not always appropriate reliance on samples that include respondents whose moral reasoning is uncoupled from their action choices. These artifacts may restrict the amount of variance explained in observed relationships, and thus constrain the potential for moral reasoning to understand and explain behavior and attitudes relevant in the context of business ethics. Researchers are urged to use DIT D scores (in addition to P scores) in specific situations, and to examine relationships among high DIT U scorers whose moral reasoning is tightly coupled with their action choices. The application of these guidelines may have profound implications for advancing our fundamental understanding of moral reasoning, and of increasing its relevance to business ethics.     

Using the Analytical Hierarchy Process (AHP) to Construct a Measure of the Magnitude of Consequences Component of Moral Intensity

The purpose of this work is to elaborate an empirically grounded mathematical model of the magnitude of consequences component of “moral intensity” (Jones, Academy of Management Review 16(2),366, 1991) that can be used to evaluate different ethical situations. The model is built using the analytical hierarchy process (AHP) (Saaty, The Analytic Hierarchy Process, 1980) and empirical data from the legal profession. One contribution of our work is that it illustrates how AHP can be applied in the field of ethics. Following a review of the literature, we discuss the development of the model. We then illustrate how the model can be used to rank-order three well-known ethical reasoning cases in terms of the magnitude of consequences. The work concludes with implications for theory, practice, and future research. Specifically we discuss how this work extends the previous work by Collins (Journal of Business Ethics 8, 1, 1989) regarding the nature of harm variable. We also discuss the contribution this work makes in the development of ethical scenarios used to test hypotheses in the field of business ethics. Finally, we discuss how the model can be used for after-action review, contribute to organizational learning, train employees in ethical reasoning, and aid in the design and development of decision support systems that support ethical reasoning.