Ethical Decision Making in Multinational Organizations: A Culture-Based Model

The purpose of this paper is to analyze the relationship between national culture and ethical decision making. Established theories of ethics and moral development are reviewed and a culture-based model of ethical decision making in organizations is derived. Although the body of knowledge in both cross-cultural management and ethics is well documented, researchers have failed to integrate the influence of cultural values into the ethical decision-making paradigm. A conceptual understanding of how managers from different nations make decisions about highly ethical issues will provide business ethics researchers with a sound theoretical foundation upon which future empirical inquiry can be based.     

Ethical Decision Making in Organizations: The Role of Leadership Stress

Across two studies the hypotheses were tested that stressful situations affect both leadership ethical acting and leaders?? recognition of ethical dilemmas. In the studies, decision makers recruited from 3 sites of a Swedish multinational civil engineering company provided personal data on stressful situations, made ethical decisions, and answered to stress-outcome questions. Stressful situations were observed to have a greater impact on ethical acting than on the recognition of ethical dilemmas. This was particularly true for situations involving punishment and lack of rewards. The results are important for the Corporate Social Responsibility (CSR) of an organization, especially with regard to the analysis of the stressors influencing managerial work and its implications for ethical behavior.     

A Test of a Person -- Issue Contingent Model of Ethical Decision Making in Organizations

Despite the existence of a large number of models to explain the ethical decision-making process, rarely have the models been tested. This research validated the use of such models by showing that both issue-contingent variables and individual characteristics affect two commonly-proposed model components: i.e., moral judgment and moral intent. As proposed by Jones' (1991) ethical decision-making model and elaborated on by the author, the main effect of an issue-contingent variable, social consensus, and a closely-related variable, seriousness of consequences, influenced both moral judgment and moral intent.Many ethical decision-making models also argue for the inclusion of individual characteristics in the decision-making process. This study proposed and found that the individual characteristics of rule orientation and denial of responsibility influenced moral judgment and moral intent, respectively. However, contrary to some models, interactions between issue-contingent variables and individual characteristics were insignificant relative to the main effects variables. The relationships found have implications for future model testing, as well as for practising managers.     

The Ethical Dimensions of Decision Processes of Employees

The influence of stakeholders, organisational commitment, personal values, goals of the organisation and socio-demographic characteristics of individuals on the ethical dimension of behavioural intentions of employees in various organisations are investigated. The research results show that employees working for the public sector or in educational institutions take more ethical aspects into account than employees working in the "private" sector. The influence of stakeholders and organisational commitment do not significantly affect the ethical behaviour of employees, and only some personal values and goals of the organisation have a significant influence on ethical behaviour. The most significant explanatory factor of ethical decision making seems to be what may be called "stage in the career of the employee": "ethical" employees can be described as young, with a relatively low income, limited work experience and a low level of responsibility in the company.     

A Model for Ethical Decision Making in Business: Reasoning, Intuition, and Rational Moral Principles

How do business leaders make ethical decisions? Given the significant and wide-spread impact of business people??s decisions on multiple constituents (e.g., customers, employees, shareholders, competitors, and suppliers), how they make decisions matters. Unethical decisions harm the decision makers themselves as well as others, whereas ethical decisions have the opposite effect. Based on data from a study on strategic decision making by 16 effective chief executive officers (and three not-so-effective ones as contrast), I propose a model for ethical decision making in business in which reasoning (conscious processing) and intuition (subconscious processing) interact through forming, recalling, and applying moral principles necessary for long-term success in business. Following the CEOs in the study, I employ a relatively new theory, rational egoism, as the substantive content of the model and argue it to be consistent with the requirements of long-term business success. Besides explaining the processes of forming and applying principles (integration by essentials and spiraling), I briefly describe rational egoism and illustrate the model with a contemporary moral dilemma of downsizing. I conclude with implications for further research and ethical decision making in business.     

Innovation Processes in the Russian Manufacturing Subsidiaries of Multinational Corporations: An Integrated View from Case Studies

The extant literature acknowledges the role of overseas subsidiaries in the growth and development of multinational companies (MNCs). Such subsidiaries are viewed as critical players in the innovation process at MNCs. This topic remains largely under-researched in the Russian context. This study aims to fill this gap by examining the dynamics of the innovation process in Russian-based subsidiaries of global MNCs. We present qualitative findings that indicate Russian subsidiaries are not only recipients of knowledge and technology developed elsewhere in the MNCs but are active developers of innovative products and solutions.     

An Integrated System to Acquire Knowledge and Support Decisions in Complex Innovation Design Processes

A system that integrates tools from different disciplines, ranging from cognitive and social psychology to multicriteria analysis and mathematical programming, is introduced to cope with the complexities and uncertainties that generate criticality in the organization innovation processes. An intelligent combined use of tools can facilitate the integration of unstructured or semistructured information resources and support individuals or groups of stakeholders in a complex environment, in order to structure a problem situation, to agree on a “problem focus” and to make commitments on a set of possible actions. The purpose of this article is to examine the potentiality of this system, above all in terms of knowledge acquisition, fusion, and use in various organizational contexts, and to describe an application in relation to an industrial project, in order to support the conceptual phase of the design process.     

The Moral of the Story: Re-framing Ethical Codes of Conduct as Narrative Processes

This paper re-frames business ethical codes (BCEs) as narrative processes by reflecting critically on key ontological assumptions underpinning the existing research, and introducing new and relevant concepts based on alternative assumptions. The first section draws on recent decision-making research to develop a theoretical account of BCEs as complex, socially embedded sensemaking processes. The second section addresses the content of codes, and differentiates between narrative and logico-scientific modes of reasoning. The third section focuses on the quality of code communication and identifies several distinct types of narrative process. We provide research directions for how this new understanding of BCEs may be further developed, as well as implications for practitioners. In response to the call for new conceptual models (O’Fallon and Butterfield, in J Bus Ethics 59:375–413, 2005), the paper provides organizational researchers with a more nuanced understanding of how BCEs enable or constrain ethical behavior in organizations.     

Resolving Cross-cultural Ethical Conflict: An Empirical Test of a Decision Tree Model in an Educational Setting

The authors have previously developed and described a decision tree model for addressing cross-cultural ethical conflicts. The model is intended to provide an ethically sound yet pragmatic tool for decision makers facing such situations. This paper presents the results of an empirical test of the model in an educational setting with a sample of business students. Students trained to use the model demonstrated significantly more flexibility and appropriateness in their decisions on case scenarios than those who were not trained. The implications for use of the model in educational settings and recommendations for future research are discussed.     

The Dissolution of Ethical Decision-Making in Organizations: A Comprehensive Review and Model

The purpose of this research is to present the major factors that lead to ethical dissolution in an organization. Specifically, drawing from a wide spectrum of sources, this study explores the impact of organizational, individual, and contextual factors that converge to contribute to ethical dissolution. Acknowledging that ethical decisions are, in the final analysis, made by individuals, this study presents a model of ethical dissolution that gives insight into how a variety of elements coalesce to draw individuals into decisions that result in the ethical undoing of an otherwise healthy organization. ENRON, TYCO and WorldCom did not happen in a vacuum. Nor can such debacles be explained as simply one or two individuals who were morally corrupt. The ethical breakdowns that occurred in these companies happened over a period of time, involved numerous individuals both inside and outside of the organization, and brought about the implosion of viable companies. Seeking to extend the work of previous researchers, this study attempts to tie together a disparate set of factors into a cohesive explanation of ethical breakdowns in organizations.     

Analogical Encoding Fosters Ethical Decision Making Because Improved Knowledge of Ethical Principles Increases Moral Awareness

Journal of Business Ethics - The current paper examines whether knowledge of an ethical principle influences moral awareness and ethical decision making. Using hypothetical scenarios (Studies 1 and...     

An Integrated Group Decision Making Support Model for Corporate Financing Decisions

The essential goal of corporate finance is to maximize corporate value while reducing a firm’s financial risks. Corporate financing decision is a kind of multi-criteria based group decision making that embodies major approaches to handle qualitative criteria and quantitative limitations. However, in literature related to financing decision making, very little research uses decision making trial and evaluation laboratory (DEMATEL) and analytic network process (ANP) methods to consider the impact and dependency of its factors, or uses Goal programming (GP) to find the satisfactory financing decision under the related financial constraints. This study proposes an integrated group decision making support (GDMS) model to assist corporate financing group decision makers (DMs) in obtaining a satisfactory group solution. ANP, DEMATEL and GP are combined in this GDMS model. By using this model, the group DMs can systemically structure a multi-criteria network framework and derive priority weights of those criteria, and then deal with the quantitative financial constraints for a satisfactory group solution. An illustrative case is demonstrated for the effectiveness and practicability of this GDMS model.     

Decision Modelling: An Objective Approach to Moral Reasoning

All agree that moral issues are difficult issues mired in philosophical, political, social, and spiritual values. It's no wonder that the process of calculating moral positions has been likened to ``eating broth with a fork.'' While insuring moral behavior is difficult, teaching moral reasoning, a noble act, is even more difficult – especially when confronted by students who, by nature or discipline, are essentially objectivists dependant upon a need to structure what most will agree defies structure. This paper suggests one way the use of decision modeling may reach to moral objectivists in a classroom setting.     

An Empirical Examination of the Multi-dimensionality of Ethical Climate in Organizations

The purpose of this study was to determine whether the ethical climate dimensions identified by Victor and Cullen (1987, 1988) could be replicated in the subunits of a multi-unit organization and if so, were the dimensions associated with particular types of operating units. We identified three of the dimensions of ethical climate found by Victor and Cullen and also found a new dimension of ethical climate related to service. Partial support was found for Victor and Cullen's hypothesis that certain ethical climate dimensions are associated with particular forms of organizational governance and control.     

An Investigation of Factors Influencing Causal Attributions in Managerial Decision Making

This study investigates factors influencing causal attributions in managerial decision making. Three categories of factors are identified: (i) prior beliefs (ii) background frequencies, and (iii) covariation cues. The impact of factors in each of the above categories on causal attribution are studied in a marketing decision making context. Subjects demonstrated a bias toward assigning causality to variables that occurred infrequently or were controllable. Also, subjects were particularly influenced by the joint-occurrences of cause and effect variables.