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

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

A Proposed Infrastructural Model for the Establishment of Organizational Ethical Systems

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

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

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

Reinforcing Ethical Decision Making Through Corporate Culture

Behaving ethically depends on the ability to recognize that ethical issues exist, to see from an ethical point of view. This ability to see and respond ethically may be related more to attributes of corporate culture than to attributes of individual employees. Efforts to increase ethical standards and decrease pressure to behave unethically should therefore concentrate on the organization and its culture. The purpose of this paper is to discuss how total quality (TQ) techniques can facilitate the development of a cooperative corporate culture that promotes and encourages ethical behavior throughout an organization.     

Personal Values’ Influence on the Ethical Dimension of Decision Making

Personal values have long been associated with individual decision behavior. The role played by personal values in decision making within an organization is less clear. Past research has found that managers tend to respond to ethical dilemmas situationally. This study examines the relationship between personal values and the ethical dimension of decision making using Partial Least Squares (PLS) analysis. The study examines personal values as they relate to five types of ethical dilemmas. We found a significant positive contribution of altruistic values to ethical decision making and a significant negative contribution of self-enhancement values to ethical decision making. Dr. David J. Fritzsche is a retired Professor of Management and Organization at The Pennsylvania State University, Great Valley. Among the numerous journals in which he published are Journal of Business Ethics, Academy of Management Journal, Journal of Macromarketing, and Simulation & Games. He is the co-author of the Business Policy Game: A Strategic Management Simulation. He authoured the book Business Ethics: A Global and Managerial Perspective (McGraw-Hill, 1997). Dr. Effy Oz is a Professor of Management Science and Information Systems at The Pennsylvania State University, Great Valley, where he teaches courses on IT management, ethical issues in IT, and business-stakeholder relations. He has authored several textbooks including five editions of Management Information Systems (Course Technology Inc., 1998–2006), Foundations of E-Commerce (Prentice-Hall, 2002) and, Ethics for the Information Age (McGraw-Hill, 1994), and a practitioner’s book (The Manager’s Bible, Ivy League Publishing, 1998). He has also published research articles in academic and professional journals, among which are MIS Quarterly, Communications of the ACM, Information & Management, Decisions Sciences, OMEGA, Journal of Business Ethics, and Journal of Computer Information Systems. Dr. Oz is a member of the editorial boards of Encyclopaedia of Information Systems, Information & Management, and Journal of Global Information Technology Management. He is a frequent speaker at IT conferences, has conducted research on a number of IT topics, and has been quoted in numerous media including Computerworld, MSNBC, and the Los Angeles Times. He was awarded the 1997 Notable Contribution to the Information Systems Literature Award by the Information Systems Section of the American Accounting Association, the 1999-2000 Distinguished Faculty Research Award at Penn State Great Valley, and Best Paper Award at the Annual Global Information Technology Conference of 2004.     

论关系营销中的道德决策

本文在分析亨特和维特尔营销道德理论模型，探讨其在关系营销应用中出现的缺陷的基础上，试图构建一个关系营销中的道德决策模型作为补充，并结合现实环境对企业营销道德决策过程进行了分析。     

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

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

The Positive Ethical Organization: Enacting a Living Code of Ethics and Ethical Organizational Identity

A vision of a living code of ethics is proposed to counter the emphasis on negative phenomena in the study of organizational ethics. The living code results from the harmonious interaction of authentic leadership, five key organizational processes (attraction–selection–attrition, socialization, reward systems, decision-making and organizational learning), and an ethical organizational culture (characterized by heightened levels of ethical awareness and a positive climate regarding ethics). The living code is the cognitive, affective, and behavioral manifestation of an ethical organizational identity. We draw on business ethics literature, positive organizational scholarship, and management literature to outline the elements of positive ethical organizations as those exemplary organizations consistently practicing the highest levels of organizational ethics. In a positive ethical organization, the right thing to do is the only thing to do. Amy Klemm Verbos is a Ph.D. candidate at the Sheldon B. Lubar School of Business, University of Wisconsin-Milwaukee, where she received a Chancellor’s Fellowship, Graduate Fellowship, Dissertation Fellowship, and C. Edward Weber Research Award. She co-authored ‚Positive Relationships in Action: Relational Mentoring and Mentoring Schemas in the Workplace’ in the forthcoming edited book, Positive Relationships at Work. Her work on positive organizing also has been presented at the Academy of Management Conference. Joseph A. Gerard is a Ph.D. student at the Sheldon B. Lubar School of Business at the University of Wisconsin-Milwaukee. He is a lecturer at the University of Wisconsin-Whitewater teaching organizational behavior, strategy, and accounting. He is a founding member of Ascent Organization Development LLC, which provides management consulting services to for-profit organizations in the areas of effectiveness and performance enhancement. Paul R. Forshey is a Ph.D. student in Organizations and Strategic Management at the Sheldon B. Lubar School of Business, University of Wisconsin-Milwaukee. His research interests include startup firms and firms in transition. Charles S. Harding is a Ph.D. student in Organizations and Strategic Management at the Sheldon B. Lubar School of Business at the University of Wisconsin-Milwaukee. Awarded a Chancellor’s Fellowship, his research interests include strategic decision-making and the role of value creation in strategy. Janice S. Miller is an Associate Professor at the Sheldon B. Lubar School of Business at the University of Wisconsin-Milwaukee where she has received the Business Advisory Council Award for Teaching Excellence. Her published work has appeared in Academy of Management Journal, Journal of Organizational Behavior, and Journal of Business Ethics among others. She received her Ph.D. in Human Resources Management from Arizona State University.     

Organizational Factors Encouraging Ethical Decision Making: An Exploration into the Case of an Exemplar

What factors in the organizational culture of an ethically exemplary corporation are responsible for encouraging ethical decision making? This question was analyzed through an exploratory case study of a top pharmaceutical company that is a global leader in ethics. The participating organization is renowned in public opinion polls of ethics, credibility, and trust. This research explored organizational culture, communication in issues management and public relations, management theory, and deontological or utilitarian moral philosophy as factors that might encourage ethical analysis. Our understanding of organiza tional ethics is enhanced by elucidating factors the case revealed as encouraging ethical analysisan organizational culture that emphasizes the importance of ethics, Theory Y management, a symmetrical worldview valuing innovation and dialogue, a counseling role for issues management or public relations in the dominant coalition, rewarding ethical behavior, ethical analysis using moral philosophy, consistency between individual values and organizational philosophy, and ethics training. These factors, and perhaps others as yet unidentified, worked together to create an environment that encouraged ethical decision making at the exemplar organization.     

The Effects of Organizational and Ethical Climates on Misconduct at Work

Questionnaire data obtained from 97 supervisory and nonsupervisory employees representing the Production, Production Services, Marketing, and Administration departments of an Israeli metal production plant were used to test the relationship between selected personal and organizational attributes and work related misbehavior. Following Vardi and Wiener's (1996) framework, Organizational Misbehavior (OMB) was defined as intentional acts that violate formal core organizational rules. We found that there was a significant negative relationship between Organizational Climate and OMB, and between the Organizational Climate dimensions (Warmth and Support, and Reward), and OMB. Also, the activities of misbehavior reported by both managers and employees were negatively related to the Rules, Instrumental and Caring dimensions of Ethical Climates as defined by Victor and Cullen (1988).     

Ethical Decision Making and the Employed Lawyer

This article addresses one of the more disturbing questions raised by the major financial failures of the recent past; namely, how it could be that professionals, highly trained both in ethics and technical disciplines, should apparently collude with management in corporate misbehaviour. The article builds on evidence suggesting that professionals in employment contexts find ways of adapting in order to minimise perceived or actual conflict between their professional and organizational obligations and that this, in turn, may affect the way in which they exercise professional judgment. It uses identity theory to propose that professionals may adopt modified identities when employed and that these identities may be expressed, in part, in the way in which they resolve ethical dilemmas. The article reports on the results of a qualitative study in which corporate counsel showed evidence of adopting these identities. The findings suggest that this line of research offers insight into a far more complex world of employed professionals than that traditionally hypothesised and that the popular approach of regulators and others to monitoring corporate governance by appointing professionals as gate-keepers within the organization is perhaps problematic.     

A Model of Ethical Decision Making: The Integration of Process and Content

We develop a model of ethical decision making that integrates the decision-making process and the content variables considered by individuals facing ethical dilemmas. The process described in the model is drawn from Janis and Mann’s [1977, Decision Making: A Psychological Analysis of Conflict Choice and Commitment (The Free Press, New York)] work describing the decision process in an environment of conflict, choice and commitment. The model is enhanced by the inclusion of content variables derived from the ethics literature. The resulting integrated model aids in understanding the complexity of the decision process used by individuals facing ethical dilemmas and suggests variable interactions that could be field-tested. A better understanding of the process will help managers develop policies that enhance the likelihood of ethical behavior in their organizations. Roselie McDevitt Sc.D. is Assistant Professor of Accounting at␣the Charles F. Dolan School of Business at Fairfield University in Fairfield, Connecticut. Dr. McDevitt teaches financial and managerial accounting. Her Primary areas of research are accounting education and accounting ethics. Catherine Giapponi is an Assistant Professor of Management at the Charles F. Dolan School of Business at Fairfield University in Fairfield, Connecticut. Dr. Giapponi teaches courses in management, organizational behavior, and strategy. Her primary areas of research are corporate governance and business ethics. Cheryl Tromley, Ph.D., is a Professor of Management at␣Fairfield University where she has taught management, organizational behavior, organizational communication, organizational␣culture, organization development, and diversity for 19 years. She has co-authored two editions of the text ``Developing Managerial Skills in Organizational Behavior'␣as well authored or co-authored a significant number of professional articles and presentations related to management and management education.     

Ethical Decision Making: A Comparison of Computer- Supported and Face-to-face Group

This study compares computer-supported groups, i.e., groups using group support systems (GSS), and face-to-face groups using ethical decision-making tasks. A laboratory experiment was conducted using five-person groups of information systems professionals. Face-to-face (FTF) and GSS groups were compared in terms of their decision outcomes and group members' reactions. The results revealed that computer-supported and face-to-face groups showed no significant difference in terms of the decision outcomes of choice shift and decision polarity. However, FTF groups reached their decisions more quickly and they were more successful in attaining group consensus than GSS groups. Subjects evaluated face-to-face communication more favorably than GSS interaction on most post-group measures related to perceived group processes and satisfaction. Despite these outcomes, some possibilities for using GSS technology in an ethical decision making context are examined.     

Ethical Decision Making in Fair Trade Companies

This paper reports on a study of ethical decision-making in a fair trade company. This can be seen to be a crucial arena for investigation since fair trade firms not only have a specific ethical mission in terms of helping growers out of poverty, but they tend to be perceived as (and are often marketed on the basis of) having an "ethical" image. Eschewing a straightforward test of extant ethical decision models, we adopt Thompson's proposal for a more contextualist understanding rooted in ethnographic data. Our findings suggest that the fair trade mission of the firm is experienced as an over-riding ethical claim, which is often invoked to justify potentially ethically questionable decisions. Moreover, decision precedents emerge which can mean that the decision process is bypassed or hurried through. Finally we provide evidence that the significance of these precedents, and indeed, even moral intensity itself, could be actively shaped and constructed by organization members to support different, even shifting, conceptions of what is a morally acceptable decision for a fair trade company to make.     

Ethical Context, Organizational Commitment, and Person-Organization Fit

The purpose of this study was to assess the relationships among ethical context, organizational commitment, and person-organization fit using a sample of 304 young working adults. Results indicated that corporate ethical values signifying different cultural aspects of an ethical context were positively related to both organizational commitment and person-organization fit. Organizational commitment was also positively related to person-organization fit. The findings suggest that the development and promotion of an ethical context might enhance employees' workplace experiences, and companies should consider adopting ethical policies that support principled conduct, punish unethical actions, and increase individual perceptions of an ethical company environment.     

Teasing Ethical Decision Making Dilemmas: A Case Study of Land Rights Issues

The purpose of this paper is to highlightthe complexities in making decisions in an ethical wayevidenced by the current dispute over native landrights in contemporary Australia. The caseillustrates an example of a moral issue that involvesmaking a management choice. One approach which givespractice in four questions that the managementpractitioner can ask when faced with a moral dilemmais described. The case involves an on-going situationin which the Australian Government was faced withsupporting the land claims of either indigenousgroups or land holding pastoralists. TheGovernment, therefore, was on the horns of a classicdilemma, having to decide between two groups eachseeking `justice' and `fairness'.The paper refers to contemporary authorities such asRawls, De George, Paine and Badaracco (Jnr). In thecontext of ethical decision making, the main eventsleading to the present dilemma are presented. Thecase study includes a summary outlining the AustralianGovernment's Ten Point Plan response to thedilemma and a summary of the perceived problems forbusiness development where native title is recognised. These can be used to provide students in businessethics classes with an opportunity to recognise anddebate the rights, wrongs and complexities of moralissues as well as appropriate managerial decisionmaking.     

Causal Effects of Regulatory, Organizational and Personal Factors on Ethical Sensitivity

Prior researchers have studied individual components of a theoretical decision-making model. This paper presents the results of a more complete study of the model components and presents limited support of theory. The study examines the relative importance of regulatory, organizational, and personal constructs on an individual's ethical sensitivity. Auditors from the major international accounting firms, located in two southeastern cities, are surveyed. Structural equation modeling is used to allow for the simultaneous evaluation of the three constructs of interest. The results indicate that the regulatory and organizational constructs are negatively correlated with the personal experience construct. The three constructs are not significant causal factors on ethical sensitivity. This result may be due to the manner in which ethical sensitivity is typically measured or may indicate that the complexity of the ethical decision-making process is not fully captured in the theoretical models. Thus, the models suggested in the prior literature and the results presented in prior studies of the individual components may need to be reconsidered.     

Influences in Ethical Dilemmas of Increasing Intensity

This study attempts to extend the literature in ethics research by developing and testing a model of an individual's ethical system which identifies the sources of influence on the decision process. The model is developed from an interdisciplinary literature review and includes six subsystems or spheres that exert influence on an individual: the workplace, family, religion, legal system, community, and profession. The study also examines the role of materiality in the decision-making process.Using this model, empirical tests identify the spheres that exert the most influence on the decision-maker facing an ethical dilemma. In addition, the relative importance of the spheres and the interaction among the spheres is examined. Findings show that: (1) individuals rate variables at different levels of importance as the materiality of the breach changes and (2) the spheres that are considered most important for minor ethical breaches are different than the spheres considered most influential in a major ethical situation.Exploratory factor analysis suggests that the variables representing the spheres can be summarized by three factors. Further, it indicates that these factors change with materiality.     

Organizational Ethics: Perceptions of Employees by Gender

As more women enter the work force and assume management positions in corporations, increasing attention is being given to employment diversity. In addition, studies suggest that females have more propensity for ethics than males. However, these results may be debatable and limited data are available to substantiate these claims or assess gender differences among employees. Ethics codes can aid in supporting policies and enhancing corporate diversity. To assist one company in the development of an ethics code, a survey of 4005 employees in one U.S. corporation was conducted to ascertain their opinions of the ethical environment of the company. The survey used the Ethics Environment Questionnaire (EEQ), consisting of twenty items on a 5-point Likert-type scale; reliability on Cronbach's alpha was 0.94. Response rate was 50%, with the sample paralleling the population in proportion of males and females. Respondents reported a profile of 3.18 out of the high of 5.0, but with several significant differences between the male and female employees, including differences on education and position. Males were more in agreement than females that the firm had an ethical environment. On some items, however, males and females were in strong agreement. Comparisons to prior studies were drawn, including suggestions for ways corporations could use an ethics survey to tailor in-service training, enhance diversity in the work force, and support the development of an ethics code.     

Bridging Ethics and Self Leadership: Overcoming Ethical Discrepancies Between Employee and Organizational Standards

In spite of extensive study and efforts to improve business ethics and increase corporate social responsibility, a quick review of almost any business publication will show that breaches of ethics are a common occurrence in the business community. In this paper we explore reasons for potential discrepancies or gaps between organizational and individual ethical standards, the consequences of such discrepancies, and possible methods of reducing the detrimental effects of these differences. The concept of self-leadership, as constructed through social learning theory is examined, and shown to be a potentially valuable tool for employees' use in making reasoned decisions in varying organizational ethical climates. Specifically, the authors will show how the practice of self-leadership can be employed as an important means to improve moral action within the firm.