The company, product and market dimensions of new product decision scenarios

Studies show that managers synthesize information and make strategic decisions in a situation-specific mode. Making effective new product decisions is a critical problem and managers are urged to improve their performance by adjusting their decision approach to fit the type of situation. Identifying situation-specific new product scenarios is, therefore, an important prerequisite. This article identifies five basic new product decision scenarios using a cluster analysis of factor scored company, product and market data. These provide insights about the situations managers typically face when evaluating new products.     

An Empirical Examination of Marketing Professionals' Ethical Behavior in Differing Situations

The ethical behavior of a national sample of marketing professionals was examined by analyzing their responses to four different types of ethical dilemmas presented in vignette form. The ethical situations operationalize the concepts of coercion and control, deceit and falsehood, conflict of interest, and self integrity, within the context of the marketing mix elements – place, promotion, price, and product. Responses were examined to determine whether behavior varied by type of ethical situation, and whether demographic factors affected their responses. The results indicate that marketing professionals vary their ethical decisions depending on which marketing mix decision they face. Among demographic variables, age, gender, and education level had significant but mixed influence on respondents' ethical decisions across the different situations.     

The rationality-of-ends/market-structure grid: positioning and contrasting different approaches to business ethics

This paper presents the 'rationality-of-ends/market-structure grid'. With this grid, the article contrasts, in economic terms, different approaches to business ethics and addresses the question how far and what type of business ethics is feasible. Four basic scenarios for business ethics are outlined that imply different conceptualizations of business ethics. The grid interrelates a rationality-of-ends dimension with a market-structure dimension. The rationality-of-ends dimension ranges from opportunism and self-interested egoism to self-interested altruism and ultimately to authentic altruism. The market-structure dimension ranges from perfect competition/no information problems/perfectly dispersed market power to imperfect competition/high information problems/concentrated power. Rather than presenting economic, legal, ethical and discretionary issues in a hierarchical fashion, the grid interrelates these issues. Conclusions are spelled out regarding the empirical observance of business ethics and the programmatic, 'theoretical' positions that are behind empirical observations. Practical implications for managers and public policy makers are outlined.     

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.     

Asymmetric Perceptions of Ethical Frameworks of Men and Women in Business and Nonbusiness Settings

This paper examines the relationship between individuals' gender and their ethical decision models. The study seeks to identify asymmetries in men's and women's approaches to ethical decision making and differences in their perceptions of how same-sex and other-sex managers would likely act in business and nonbusiness situations that present an ethical dilemma. Results indicate that the models employed by men and women differ in both business and nonbusiness settings, that both sexes report changing models when leaving business settings, and that women were better predictors of both sex's likely ethical models.     

Religious Intensity,Evangelical Christianity,and Business Ethics: An Empirical Study

Research on the relationship between religious commitment and business ethics has produced widely varying results and made the impact of such commitment unclear. This study presents an empirical investigation based on a questionnaire survey of business managers and professionals in the United States yielding a database of 1234 respondents. Respondents evaluated the ethical acceptability of 16 business decisions. Findings varied with the way in which the religion variable was measured. Little relationship between religious commitment and ethical judgment was found when responses were compared on the basis of broad faith categories – Catholic, Protestant, Jewish, other religions, and no religion. However, respondents who indicated that religious interests were of high or moderate importance to them demonstrated a higher level of ethical judgment (less accepting of unethical decisions) than others in their evaluations. Evangelical Christians also showed a higher level of ethical judgment.     

The Effect of Firm Profit versus Personal Economic Well Being on the Level of Ethical Responses Given by Managers

Members of organizations are continually making decisions that have important consequences for themselves and the firms for which they work. In some cases these decisions affect human well being and social welfare and thus have important ethical impacts for those affected by the decisions.This study examines if certain strategic situations (enhancement of firm profits versus personal economic well being) cause decision makers to act more or less ethically. A questionnaire consisting of two vignettes which depicted actual business situations was used to collect data from 171 managers of a large Southeastern financial and communication conglomerate. Results from multivariate repeated measures tests suggest that managers will vary their level of ethical response when faced with a situation where their own economic well being is at stake.     

Situational Ethics Across Borders: A Multicultural Examination

Managers throughout the world regularly face ethical dilemmas that have important, and perhaps complex, professional and personal implications. Further, societal consequences of decisions made can be far-reaching. In this study, 210 financial services managers from Australia, Chile, Ecuador and the United States were queried about their ethical beliefs when faced with four diverse dilemmas. In addition, the situational context was altered so the respondent viewed each dilemma from a top management position and from a position of economic hardship. Results suggest a complex interaction of situation, culture and issue when individuals make ethical judgments. Specifically, Chileans were found to have different beliefs about sex discrimination and child labor dilemmas when compared to their colleagues from the other three nations. Chileans and Australians also disagreed on the bribery dilemma. Anglo managers were more likely than Latin American managers to change their ethical responses when the situation was altered. For multinational firms interested in maintaining healthy ethical climates, the findings suggest that culturally contingent ethical guidelines, or policies adapted to the local customs, must be considered. Further, managers must remain aware of issues related to specific situations, both internal and external, that would cause subordinates to alter their moral judgment.     

Using Social Identity Theory to Predict Managers’ Emphases on Ethical and Legal Values in Judging Business Issues

The need to fill three gaps in ethics research in a business context sparked the current study. First, the distinction between the concepts of “ethical” and “legal” needs to be incorporated into theory building and empiricism. Second, a unifying theory is needed that can explain the variables that influence managers to emphasize ethics and legality in their judgments. Third, empirical evidence is needed to confirm the predictive power of the unifying theory, the discernable influence of personal and organizational variables, and the importance of the issue to the managers in determining their emphasis on the ethical and legal values of their judgments. Focused on these needs, the current research combines social identity theory with empirical findings from business ethics research. This theory building initiative framed hypothesis-driven research to investigate the influences on managers’ emphasis on ethical and legal values in making business judgments. An empirical research study was conducted involving 252 practicing managers who judged 12 newsworthy business events. Data was collected on the managers’ individual factors, on the groups that influence their judgments, and on the importance that the managers place on ethics and legality in judging the 12 scenarios. The research findings contribute to theory development (1) By successfully utilizing a blended extension of social identity and issue-contingent theories to understand managers’ judgments, and (2) By providing evidence on the relationships between the perceived importance of an issue and the emphases managers place on ethical and legal values in their judgments. The analysis of the data was extended to provide insights on the needs of employers to tailor management training on legal and ethical decision-making. The participating managers were clustered according to their emphases on Ethical Importance and Legal Importance in judging business situations. Analysis of Variance was then combined with Scheffé Multiple Comparison Tests to assess whether the factors derived from a blended extension of social identity and issue-contingent theories were significantly different across the clusters. The product of this analysis is unique sets of attributes that describe each cluster of managers, and provide an empirical basis for determining training priorities. Finally, the carefully constructed and thoroughly tested 12 research scenarios that form the core of the survey instrument enable their redeployment in subsequent research and their use by practicing executives who wish to compare data provided by their managers to results from the study participants.     

Considerations in Ethical Decision-Making and Software Piracy

Individuals are faced with the many opportunities to pirate. The decision to pirate or not may be related to an individual's attitudes toward other ethical issues. A person's ethical and moral predispositions and the judgments that they use to make decisions may be consistent across various ethical dilemmas and may indicate their likelihood to pirate software. This paper investigates the relationship between religion and a theoretical ethical decision making process that an individual uses when evaluating ethical or unethical situations. An ethical decision making model was studied for general unethical scenarios and for the unethical behavior of software piracy. The research model was tested via path analysis using structural equation modeling and was found to be appropriate for the sample data. The results suggest that there is a relationship between religion and the stages of an ethical decision making process regarding general ethical situations and software piracy.     

Ethical Attitudes in Small Businesses and Large Corporations: Theory and Empirical Findings from a Tracking Study Spanning Three Decades

This study offers a theoretical framework of ethical behavior and a comparative analysis of ethical perceptions of managers of large, mostly publicly traded corporations (those with 1,000 or more employees) and the owners and managers of smaller companies (those with fewer than 100 employees) across 17 years. The primary research provides basic data on the changing standards of ethics as perceived by leaders of large and small businesses where the cultures frequently fall into sharp contrast. Our findings reveal the extent to which the message of business integrity is gaining or losing ground within large and small companies. It does this by means of respondents’ judgments of acceptable responses to 16 scenarios profiling common business situations with questionable ethical dimensions. Based on responses from over 5,000 managers and employees (from firms of all sizes) to our scenarios at three points in time (1985, 1993, 2001), we tested two research questions. First, for firms of all sizes, have business ethics improved or declined between the years 1985 and 2001? Second, comparing responses of large and small firm executives across the 1985–2001 time frame, is there a discernible difference in their ethical standards? Our results suggest that business leaders are making somewhat more ethical decisions in recent years. We also found that small business owner–managers offered less ethical responses to scenarios in 1993 but that no significant differences existed with large firm managers in 1985 and 2001. Implications of our findings are discussed.     

Re-examining the Influence of Individual Values on Ethical Decision Making

This paper presents the results of five years of research involving three studies. The first two studies investigated the impact of the value honesty/integrity on the ethical decision choice an individual makes, as moderated by the individual personality traits of self-monitoring and private self-consciousness. The third study, which is the focus of this paper, expanded the two earlier studies by varying the level of moral intensity and including the influence of demographical factors and other workplace values: achievement, fairness, and concern for others on the ethical decision process. These studies were designed using a laboratory format and a decision exercise that attempted to establish realistic business conflict situations through decision scenarios. Support is presented for the influence of gender and achievement on ethical choice. Recommendations for the future direction of this stream of research are given.     

Ethical Decision Making: The Effects of Escalating Commitment

Despite the recent emergence of many new ethical decision making models, there has been minimal emphasis placed on the impact of escalating commitment on the ethical decision making process. In this paper a new variable is introduced into the ethical decision making literature. This variable, exposure to escalation situations, is posited to increase the likelihood that individuals will choose unethical decision alternatives. Further, it is proposed that escalation situations should be included as a variable in Jones's (1991) comprehensive model of ethical decision making. Finally, research propositions are provided based on the relationship between escalating commitment and the ethical decision making process.     

Three ethical frames of reference: insights into Millennials' ethical judgements and intentions in the workplace

The paper investigates the ethical decisions of Millennials, who are not only part of an expanding cohort of the workforce, but also represent potential future managers with a growing influence on work practices and employment relationships. In the conceptual model, we propose that three ethical frames of reference, represented by perceived organisational ethics, perceived employee ethics and reflective moral attentiveness, antecede ethical judgements, which further influence the ethical intentions of Millennials. Using structural equation modelling, we test the model for three different business ethics scenarios: paying a consulting fee, dumping hazardous waste, and running an offensive advertising campaign. The findings confirm the link between ethical judgements and intentions across the board, while the influence of the ethical frames of reference varies among the scenarios. We propose that the differences in the predictive ability of the ethical frames of reference depend on the nature of the ethical issue, which holds important implications for today's managers in their attempts to encourage ethical behaviour of Millennial employees.     

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.     

To blow or not to blow the whistle: the effects of potential harm,social pressure and organisational commitment on whistleblowing intention and behaviour

This study uses a rational ethical decision‐making framework to examine the influence of moral intensity (potential harm and social pressure) on whistleblowing intention and behaviour using organisational commitment as a moderator. A scenario was developed, and an online questionnaire was used to conduct an empirical analysis on the responses of 533 participants. The mean age and years of work experience of the respondents were 31 and 8.2 years, respectively. The results show, first, that while moral intensity is correlated with whistleblowing intention, only the potential harm is positively correlated with such intention. Second, potential harm and social pressure differentially affect whistleblower choice of using an internal or external channel. Third, organisational commitment has a moderated mediation effect among moral intensity, whistleblowing intention and behaviour. Fourth, whistleblowers may be grouped into four conceptual types: indifferent, rebel, mature and spoil. Finally, theoretical and managerial implications of the findings are discussed.     

Why bad feelings predict good behaviours: The role of positive and negative anticipated emotions on consumer ethical decision making

Research suggests that emotions can greatly influence consumer decision making and behaviours. Notwithstanding, our understanding of the role of anticipated emotions in what is an inherently complex deliberation process—that of consumer ethics—is still quite limited. The present study thus aims to address this gap, in two key ways: first, by measuring the influence of positive and negative anticipated emotions at each stage of the consumer ethical decision making process; and second by describing the specific emotions that most affect each component of the consumer ethical deliberation process and assessing their relative weight in predicting decisions involving ethical issues. Through the examination of 603 ethical situations and using multiple regression analysis, the findings indicate that anticipated emotions can account for up to 59% of the variance in consumer decisions involving ethics. Anticipating the experience of negative emotions as a result of carrying out an unethical behaviour was the affective component found to most influence consumer ethical deliberation process; and anticipated guilt was the discrete emotion exerting the greatest effect on consumer decision making in ethical situations. The findings indicate that more than feeling good, consumers avoid feeling bad; such that ethically favourable decisions emerge to prevent experiencing negative emotions in the future.     

Unethical behavior in information systems: The gender factor

This article reports the findings of a survey examining whether gender differences influence the degree to which individuals recognize unethical conduct in the use and development of information technology. The results show that, on the average, there is a significant gender gap in the recognition of unethical behavior in information systems. Although, women are better able to recognize unethical actions described in information systems scenarios than men, the existence of statistically significant differences varies depending upon the nature of the ethical dilemma. The findings of this study provide both managers and researchers valuable understanding regarding the differences (and similarities) in the reactions of individuals of both genders to unethical situations in information systems.Deepak Khazanchi is an assistant professor of information systems (IS) in the college of business at Northern Kentucky University. His recent publications and research interests focus on IS support for ill-structured problem understanding, ethical/pedagogical issues in IS, and impact of advanced information technologies in organizations.     

Ethnic Marketing Ethics

Culture plays an important role in defining ethics standards because dissimilar cultures socialize their people differently, according to what is acceptable behaviour. The potential significance of ethnic groups for marketing justifies inquiry into the moral judgments, standards, and rules of conduct exercised in marketing decisions and situations arising from decisions whether or not to focus on individual ethnic groups within an economy. Identifying and targeting ethnic groups for marketing purposes are tasks fraught with many ethical difficulties. In a multicultural society consisting of a dominant group and many diverse, minority groups defined by ethnicity, these problems can be expected to increase substantially. Consequently, marketers may include minority ethnic consumers in their mainstream marketing programs. In itself, this has ethical consequences. Alternatively, if marketers seek to target individual minority ethnic groups within the same economy a further set of ethical consequences needs to be considered. This paper reviews the concepts of ethnicity and ethnic groups and their relevance for marketing strategy within an economy where there is a dominant group and also significant minority ethnic groups. The ethical consequences for minority communities arising from the use of non-ethnic, mainstream marketing programs are examined. An alternative approach, ethnic marketing, is also examined and its ethical consequences in terms of other groups within the one country appraised. The ethical dilemma and tradeoffs facing marketers within advanced, culturally diverse countries are then considered.     

The Effects of Escalating Commitment on Ethical Decision-Making

Although scholars have invoked the escalation framework as a means of explaining the occurrence of numerous organizationally undesirable behaviors on the part of decision makers, to date no empirical research on the potential influences of escalating commitment on the likelihood of unethical behavior at the individual level of analysis has been reported in either the escalation or the ethical decision-making literatures. Thus, the main purpose of this project is to provide a theoretical foundation and empirical support for the contention that escalating commitment situations can induce unethical behavior in decision makers. An experimental research design utilizing a computerized investment task was administered to 155 undergraduate business majors as a means of assessing the hypotheses presented here. Results from a hierarchical logistic regression analysis found strong support for the contention that exposure to an escalation situation increases the likelihood of unethical behavior on the part of decision makers. Further, results also supported previous ethical decision-making findings by confirming the effects of locus of control (LOC) on ethical behavior. Specifically, the data indicated that individuals with an external LOC orientation were significantly more likely to select the unethical option than were individuals with an internal LOC orientation. Interestingly, support was not found for the effects of Machiavellianism or gender on ethical decision-making.