Managers’ Moral Decision-Making Patterns Over Time: A Multidimensional Approach

Taking multidimensional ethics scale approach, this article describes an empirical survey of top managers’ moral decision-making patterns and their change from 1994 to 2004 during morally problematic situations in the Finnish context. The survey questionnaire consisted of four moral dilemmas and a multidimensional scale with six ethical dimensions: justice, deontology, relativism, utilitarianism, egoism and female ethics. The managers evaluated their decision-making in the problems using the multidimensional ethics scale. Altogether 880 questionnaires were analysed statistically. It is concluded that relying on the utilitarian principles is a core ethical evaluation criterion amongst top business managers in Finland. This study proves that managers’ moral decision-making patterns change over time. According to the results of this research, managers’ moral decision-making became more multidimensional during the study period. The change is explained by (1) the inclusion of female ethics items in the scale which allows managers to show more diversity in their decision- making, (2) the change in the Finnish economic context from depression to economic prosperity and growth during the study period, which is conducive to the spread of post materialist values, such as the importance of social relations and (3) the increasing public discussion of the importance ethical issues in business.     

A Multidimensional Analysis of Tax Practitioners' Ethical Judgments

This study investigates professional tax practitioners' ethical judgments and behavioral intentions in cases involving client pressure to adopt aggressive reporting positions, an issue that has been identified as the most difficult ethical/moral problem facing public accounting practitioners. The multidimensional ethics scale (MES) was used to measure the extent to which a hypothetical behavior was consistent with five ethical philosophies (moral equity, contractualism, utilitarianism, relativism, and egoism). Responses from a sample of 67 tax professionals supported the existence of all dimensions of the MES other than egoism. Regressions of ethical judgments and behavioral intentions on the MES dimensions indicate that ethical decision making is most heavily influenced by the moral equity dimension, followed by the contractualism dimension. In contrast, the utilitarianism and relativism dimensions were only related to ethical judgments and behavioral intentions in isolated instances.     

Ethical Awareness of Seller’s Behavior in Consumer-to-Consumer Electronic Commerce: Applying the Multidimensional Ethics Scale

Consumer-to-consumer electronic commerce (C2C e-commerce) has opened the possibility of consumers completing more transactions with each other. It has also introduced the ability for consumers to behave unethically. This study examines an individual’s ethical awareness of a seller’s behavior in C2C e-commerce situations by applying the multidimensional ethics scale (with measures for moral equity, relativism, egoism, utilitarianism, and contractualism). The study surveys undergraduate business students in four different C2C e-commerce situations and finds relativism to influence ethical awareness in all scenarios. Egoism is found to influence ethical awareness in three scenarios and contractualism in one scenario, and utilitarianism is not found to be an influence in any scenario. The findings from this study suggest that sellers in C2C e-commerce should conduct transactions based on what is culturally and socially acceptable (i.e., relativism), but also consider the importance of one’s reputation (i.e., egoism), and written or perceived contracts (i.e., contractualism).     

An Exploration of Ethical Decision-making Processes in the United States and Egypt

In this comparative survey of 191 Egyptian and 92 U.S. executives, we explore the relationship between national culture and ethical decision-making within the context of business. Using Reidenbach and Robin’s (1988) multi-criteria ethics instrument, we examine how differences on two of Hofstede’s national culture dimensions, individualism/collectivism, and power distance, are related to the manner in which business practitioners make ethical decisions. Egypt and the U.S. provide an interesting comparison because of the extreme differences in their economies and related business development. Our results indicate that respondents from the U.S, individualistic and low in power distance, were likely to view the decision making outcome in ethics scenarios as more unethical than the more collectivistic and high power distance Egyptians, when applying ethical criteria based on justice, utilitarianism, relativism, and (contrary to our predictions) egoism. However, we also found that both Egyptians and Americans rely on justice, utilitarianism, and relativism in predicting their intentions to behave ethically, and that Americans substitute egoism for justice, when the behavioral intentions of peers are examined.     

Organizational Consequences, Marketing Ethics and Salesforce Supervision: Further Empirical Evidence

This study comparatively examines supervisory reactions of Turkish sales managers to potentially ethical and unethical salesperson behaviors while replicating Hunt and Vasquez-Parraga (1993). Four scenarios representing ethical and unethical conditions of over-stating plant capacity utilization and over-recommending expensive products were presented to the managers. As a result of this comparative study, it is empirically demonstrated that Turkish managers primarily rely on the inherent rightness of a behavior with a focus on the individual (i.e., deontological evaluations) in determining whether a salesperson's behaviors ethical or unethical, but the moral worth of a behavior (i.e., teleological evaluations) also play a role. Turkish managers rely both on the deontological and teleological evaluations in determining their intention to intervene through discipline and rewards. Furthermore, the results are consistent with Hunt and Vitell (1986), Etzioni's moderate deontology and inconsistent with the P-utility theory and ethical egoism.     

A Systematic Approach to Teaching Ethics in Business

In the field of business ethics, expositions of ethical theory have tended to focus on deontology and utilitarianism. More inclusive reviews of ethical theory tend to be historical and unsystematic. This paper approaches the task of representing the variety of ethical theories systematically. It does so by constructing a schema of possibilities in ethical theory which maps out six "voices", or theoretical positions, all of which are relevant and important for understanding ethics in business. This approach helps to account for the continual presence of dilemmas and conflicts in ethics.     

Environmental Reporting Through an Ethical Looking Glass

This paper adopts the lens of environmental ethics to explore whether there is a disparity between the ethical approaches of a company in comparison to those expressed by stakeholders in relation to environmental issues, specifically those communicated through the corporate environmental report. Discourse analysis is adopted to explore the environmental section of the sustainability reports of the case study company as compared to the responses of a sample of the company’s stakeholders, using the lens of three branches of environmental ethics: utilitarianism, deontology and virtue ethics. Results indicate that the ethical approaches expressed in the case study company’s environmental reports were grounded in utilitarianism and deontology, in contrast to a virtue ethics approach expressed by external stakeholders. The disparity widened as the relationship between the company and the stakeholder became less direct. This disparity signals a failure to meet one of the primary purposes for preparing sustainability reports: to engage with stakeholders. As such this research contributes to the literature by identifying a disparity in the how this information is communicated compared with how it is perceived by stakeholders. This has important implications for the success of current stakeholder engagement practices.     

Is It Ethical to Use Ethics as Strategy?

Increasingly research in the field of business and society suggests that ethics and corporate social responsibility can be profitable. Yet this work raises a troubling question: Is it ethical to use ethics and social responsibility in a strategic way? Is it possible to be ethical or socially responsible for the wrong reason? In this article, we define a strategy concept in order to situate the different approaches to the strategic use of ethics and social responsibility found in the current literature. We then analyze the ethics of such approaches using both utilitarianism and deontology and end by defining limits to the strategic use of ethics.     

Blockchain and business ethics

This paper provides, from a business ethics perspective, a basic clustering of the morally (a) favorable, (b) unfavorable, and (c) ambivalent dimensions of blockchain technology and its various emergent applications. Instead of proffering specific assessments on particular aspects of blockchain‐based business models, we aim to offer an initial overview that charters the territory so that future research can bring about such moral assessments in an informed and orderly fashion. The main contribution of this paper lies in identifying several morally ambivalent dimensions of blockchain technology, which we finally link to two strands of business ethics research: ethical and legal aspects of legislation as well as a link to Habermasian corporate social responsibility theory arguing for transparent data production and consumption on the blockchain. We conclude that future research is necessary for moral assessment of the ambivalent cases, since their ethical evaluation changes depending on whether one analyzes them through the lenses of utilitarianism, contractarianism, deontology, and virtue ethics, respectively.     

Retailers' professional and professio-ethical dilemmas: The case of Finnish retailing business

The main purpose of this paper is to put forth the concept of ethics, present ethical theories and, finally, consider some business ethics issues in the context of retailing practices. In the first part of this paper we seek to motivate the research task. The importance of conducting ethical analysis is stressed. In the second part of the paper several ethical theories: utilitarianism, deontology and virtue ethics are presented. This part serves as a basis for research interviews, e.g. it is possible to examine retailers' opinions about their professional virtues, and try to position these opinions in relation with utilitarianism and deontology. In the third part the empirical findings about the retailing business ethics are set forth. This part suggests that there prevails among retailers some kind of confusion about what are ethical issues and what is not ethical in their daily professional practices. To avoid this confusion four main principles were put forth by the Finnish retailers. The principles were: 1. Freedom versus rules; 2. Principles versus moralizing; 3. Boundaries versus transition; 4. Economy and moral versus subjective judgment.Tuomo Takala is a Senior Lecturer in Business Administration at the University of Jyväskylä, Finland. He studied business economics and practical philosphy. His main research issues are: business ethics, social responsibility issues and environmental issues looked from ethical perspective. He also acted as Acting Professor in Business Administration in Jyväskylä. His previous publishing areas are:Publications from the Department of Economics and Management, University of Jyväskylä andScandinavian Journal of Management.Outi Usitalo is an Assistant in Marketing at the University of Jyväskylä, Finland. She studied business economics. Her research interests focus on consumer satisfaction and dissatisfaction with market supply conditions, the consequences of marketing activities on consumer welfare, and the equity and effectiveness of retailers. She published inPublications from the Department of Economics and Management, University of Jyväskylä.     

A moral basis for corporate philanthropy

The authors argue that corporate philanthropy is far too important as a social instrument for good to depend on ethical egoism for its support. They claim that rule utilitarianism provides a more compelling, though not exclusive, moral foundation. The authors cite empirical and legal evidence as additional support for their claim.Bill Shaw is the Woodson Centennial Professor in Business Administration at The University of Texas at Austin. He teaches courses in business ethics and in legal environment of business. Professor Shaw's articles have appeared in law and ethics journals, and he is co-author, with Art Wolfe, ofStructure of the Legal Environment (1991).Frederick R. Post is Assistant Professor of Business Law and Management at the College of Business Administration, University of Toledo, Toledo, Ohio. Professor Post teaches business law and labor policy courses. His research interests include business ethics and labor management relations. His publications have appeared inThe Journal of Business Ethics, The Mid-American Journal of Business andThe Journal of Legal Studies Education.     

The Link Between Management Behavior and Ethical Philosophy in the Wake of the Enron Convictions

The current linkages between ethical theory and management behavior are investigated in the wake of the much-publicized convictions of Enron executives. The vignettes used in this investigation represent ethical dilemmas in the areas of coercion and control, conflict of interest, physical environment, and personal integrity. Since 2003, and after the successful prosecution of Enron executives, the link between ethical philosophy and management behavior has shifted somewhat dramatically. There has been a significant change in the rational basis for managerial decision making. In 2003, even after the Enron scandal was publicized, practitioners still relied heavily on both act and rule utilitarian ethical philosophies when making business decisions. Currently, the majority of respondents are likely to select ethically appropriate actions based on either rule utilitarian or rights rationales. It appears that ethical behavior is now more in line with ethical rhetoric, which may positively impact the ethical climate of business decision making. Apparently, business scandals of the past did not really impact actual ethical behavior much, but the high-profile prosecutions, convictions, and jail sentences may have impressed on managers that now is the time to incorporate ethics into business decisions.     

Workplace Bullying: Considering the Interaction Between Individual and Work Environment

Deontology and utilitarianism are two competing principles that guide our moral judgment. Recently, deontology is thought to be intuitive and is based on an error-prone and biased approach, whereas utilitarianism is relatively reflective and a suitable framework for making decision. In this research, the authors explored the relationship among moral identity, moral decision, and moral behavior to see how a preference for the deontological solution can lead to moral behavior. In study 1, a Web-based survey demonstrated that when making decisions, individuals who viewed themselves as moral people preferred deontological ideals to the utilitarian framework. In study 2, the authors investigated the effect of moral identity and moral decision on moral behavior in an experimental study. The results showed that when deontology was coupled with the motivational power of moral identity, individuals were most likely to behave morally.     

Pay Inversion at Universities: Is it Ethical?

This paper examines an important issue facing academia-pay inversion. It discusses how inversion is accompanied by ethical issues including secrecy, moral dilemmas for faculty, honesty, and keeping promises. It then examines this issue from five ethical viewpoints: a legalistic perspective, ethical egoism, utilitarianism, distributive justice, and Kants deontological approach. As part of the discussion, the effect of the moral philosophy on the universitys corporate culture is examined, with attention given to morale and productivity. Finally, alternatives to pay inversion that universities may want to consider are discussed.     

The Mediating Effects of Managerial Skills on the Relationship Between Managerial Values,Ethical Leadership,and Organizational Reputation

Drawing on the upper echelons theory, this study examines the mediating effects of managerial skills on the relationship between managerial values, ethical leadership, and organizational reputation. Data were obtained from 209 manufacturing companies in the People’s Republic of China. Regression results reveal that (1) managerial values positively affect ethical leadership and organizational reputation and (2) managerial skills mediate the effects of managerial values on ethical leadership, and on organizational reputation. The study sheds light on the mechanisms through which managerial self-transcendence values but not self-enhancement values affect ethical leadership and organizational reputation.     

论企业管理伦理构建的主要问题

在当代社会,企业经营管理所面临的主要伦理问题,是“人”、“欲”、“权”的生态协调问题,“人”、“欲”、“权”展开了当代企业管理的三个维度：管理思想、管理制度、管理实践。这三个维度构成了当代企业管理伦理探讨的整体视野：管理方向的选择是对管理思想（即管理的伦理理想、伦理尺度、价值原则和道德规范体系形成）的定位;管理模式的确立表征为管理制度的建立,管理制度的内在支撑是管理伦理理想,所追求的目标是伦理价值实现,其根本原则是道德原则．其形式规范定位则表征为道德规范体系的建立;管理实践是法治与德治,其现实目标是人权维护、权利保障和权力监约,首要前提是法治与德治必须合普遍平等的自然法则与合普遍人性要求。     

Applying Ethical Theories: Interpreting and Responding to Student Plagiarism

Given the tremendous proliferation of student plagiarism involving the Internet, the purpose of this study is to determine which theory of ethical reasoning students invoke when defending their transgressions: deontology, utilitarianism, rational self-interest, Machiavellianism, cultural relativism, or situational ethics. Understanding which theory of ethical reasoning students employ is critical, as preemptive steps can be taken by faculty to counteract this reasoning and prevent plagiarism. Additionally, it has been demonstrated that unethical behavior in school can lead to unethical behavior in business; therefore, correcting unethical behavior in school can have a positive impact on organizational ethics. To meet this objective, a content analysis was conducted on the written records of students formally charged with plagiarizing at a large West Coast university. Each case was classified according to the primary ethical reasoning that the student used to justify plagiarism. Results indicate that students predominately invoke deontology, situational ethics, and Machiavellianism. Based on these findings, specific recommendations are offered to curb plagiarism. This research is the result of a long-standing interest in new technology and plagiarism. Very early ideas on this subject were presented by the authors at the ABC West Conference in New Orleans in March 2003. Dr. Neil Granitz teaches Marketing at Cal State Fullerton. He has published articles in the Journal of Business Ethics, Journal of Marketing Education, and the Quarterly Journal of E-Commerce. Moreover, Neil is a consultant for the fast-food industry, the airline industry, and an Internet advertising agency. Before earning his MBA at McGill University in Montreal and a Ph.D. in Marketing at Arizona State University in Tempe, Arizona, Neil Granitz gained extensive corporate experience in market and consumer research. Neil’s research focuses on three areas: (1) Instilling meaning and motivation into marketing education, (2) E-Commerce: Development and effect on marketing educators and practitioners, and (3) Awareness of ethics: Its influence on the internal culture of organization. Dr. Dana Loewy teaches Business Communication at Cal State Fullerton. Having earned a Ph.D. from the University of Southern California in English and translation, she is a well-published freelance translator, interpreter, and brand-name consultant. Fluent in several languages, among them German and Czech, Dana has published critical articles in many areas of interest and various poetry as well as prose translations, most notably the 1997 volume The Early Poetry of Jaroslav Seifert from Northwestern University Press.     

The Relation Between Policies Concerning Corporate Social Responsibility (CSR) and Philosophical Moral Theories – An Empirical Investigation

This article examines the relation between policies concerning Corporate Social Responsibility (CSR) and philosophical moral theories. The objective is to determine which moral theories form the basis for CSR policies. Are they based on ethical egoism, libertarianism, utilitarianism or some kind of common-sense morality? In order to address this issue, I conducted an empirical investigation examining the relation between moral theories and CSR policies, in companies engaged in CSR. Based on the empirical data I collected, I start by suggesting some normative arguments used by the respondents. Secondly, I suggest that these moral arguments implicitly rely on some specific moral principles, which I characterise. Thirdly, on the basis of these moral principles, I suggest the moral theories upon which the CSR policies are built. Previous empirical studies examining the relation between philosophical moral theories and the ethical content of business activities have mainly concentrated on the ethical decision-making of managers. Some of the most prominent investigations in that regard propose that managers mainly act in accordance with utilitarian moral theory (Fritzsche, D. J. and H. Becker: 1984, Academy of Management Journal 27(1), 166–175; Premeaux, S. and W. Mony: 1993, Journal of Business Ethics 12, 349–357; Premeaux, S.: 2004, Journal of Business Ethics 52, 269–278). I conclude that CSR policies are not based on utilitarian thinking, but instead, on some kind of common-sense morality. The ethical foundation of companies engaged in CSR, thus, does not mirror the ethical foundation of managers.     

A Multidimensional Approach to Finnish Managers' Moral Decision-Making

This paper analyses managers' moral decision-making, and studies the role of ethical theories in it by following the research tradition using the multidimensional ethics scale. The research question is: what kinds of ethical dimensions do Finnish business managers reveal when they are making moral decisions, and how have these dimensions changed in the 1990s? This question is answered by examining what kinds of factors emerge when the multidimensional ethics scale is used to analyse Finnish managers' attitudes toward moral dilemmas. The results show that Finnish managers' decision-making reflects a variety of ethical theories. Teleological thinking is strongly emphasised by Finnish managers, and relativist thinking is used as well, but often combined with either deontology or justice thinking. In addition, a strong moralistic dimension emerged in Finnish managers' decision-making. The analysis was carried out in two different surveys in years 1994 and 1999, and the results show that the ways of decision-making were more complex at the end of the 1990s than almost six years earlier.     

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.