Skip to main content

Advertisement

SpringerLink
Log in

Assessing Managers’ Ethical Decision-making: An Objective Measure of Managerial Moral Judgment

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Recent allegations of unethical decision-making by leaders in prominent business organizations have jeopardized the world’s confidence in American business. The purpose of this research was to develop a measure of managerial moral judgment that can be used in future research and managerial assessment. The measure was patterned after the Defining Issues Test, a widely used general measure of moral judgment. With content validity as the goal, we aimed to sample the domain of managerial ethical situations by establishing links to dimensions of managerial performance, as well as to the types of organizational justice issues managers encounter. Proposed scenarios were evaluated for realism by ethics officers and human resource managers. Results indicated that the new measure is reliable and correlates with a number of relevant variables in the hypothesized manner, demonstrating evidence of construct validity. Implications for future research and for human resources management are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Alexander C. S., Becker H. J. (1978) The Use of Vignettes in Survey Research. Public Opinion Quarterly 42: 93–104

    Article  Google Scholar 

  • Bebeau, M. J.: 1994, Developing Dental Students’ Conceptions of Professional Obligation. Unpublished manuscript. (University of Minnesota, Minneapolis, MN)

  • Biggs D., Barnett R. (1981) Moral Judgment Development of College Students. Research in Higher Education 14: 91–102

    Article  Google Scholar 

  • Binning J. F., Barrett G. V. (1989) Validity of Personnel Decisions: A Conceptual Analysis of the Inferential and Evidential Issues. Journal of Applied Psychology 74: 478–494

    Article  Google Scholar 

  • Blasi A. (1980) Bridging Moral Cognition and Moral Action: A Critical Review of the Literature. Psychological Bulletin 88: 1–45

    Article  Google Scholar 

  • Borman W. C., Brush D. H. (1993) More Progress Toward a Taxonomy of Managerial Performance Requirements. Human Performance 6(1): 1–21

    Article  Google Scholar 

  • Brabeck M. (1984) Ethical Characteristics of Whistle Blowers. Journal of Research in Personality 18: 41–53

    Article  Google Scholar 

  • Bridges, C. and R. Priest: 1983, Development of Values and Moral Judgments of West Point Cadets. Unpublished manuscript. (United States Military Academy, West Point, NY)

  • Chang F. (1994) School Teachers’ Moral Reasoning. In: Rest J. R., Narvaez D. (eds) Moral Development in the Professions. Lawrence Erlbaum Associates, Hillsdale, NJ

    Google Scholar 

  • Colby A., Kohlberg L. (1987) The Measurement of Moral Judgment: Volume 1. Theoretical Foundation and Research Validation. Cambridge University Press, New York

    Google Scholar 

  • Digman J. M. (1990) Personality Structure: Emergence of the Five-factor Model. Annual Review of Psychology 41:417–440

    Google Scholar 

  • Dodrill C. B. (1981) An Economical Method for Evaluation of General Intelligence in Adults. Journal of Consulting and Clinical Psychology 49:668–673

    Article  Google Scholar 

  • Duckett L. J., Ryden M. B. (1994) Education for Ethical Nursing Practice. In: Rest J. R., Narvaez D. (eds) Moral Development in the Professions. Lawrence Erlbaum Associates, Hillsdale, NJ

    Google Scholar 

  • Dukerich J. M., Nichols M. L., Elm D. R., Vollrath D. A. (1990) Moral Reasoning in Groups: Leaders Make a Difference. Human Relations 43(5): 473–493

    Article  Google Scholar 

  • Fraedrich J., Ferrell O. C. (1992) Cognitive Consistency of Marketing Managers in Ethical Situations. Journal of the Academy of Marketing Science 20:245–252

    Article  Google Scholar 

  • Gibbs J. C., Widaman K. F. (1982) Social Intelligence: Measuring the Development of Sociomoral Reflection. Prentice Hall, Englewood Cliffs, NJ

    Google Scholar 

  • Gibbs J. C., Widaman K. F., Colby A. (1982) Construction and Validation of a Simplified, Group-Administerable Equivalent to the Moral Judgment Interview. Child Development 53(4): 895–910

    Article  Google Scholar 

  • Gibson D. R. (1990) Personality Correlates of Logical and Sociomoral judgment. Journal of Personality and Social Psychology 59(6):1296–1300

    Article  Google Scholar 

  • Gilligan C. (1982) In a Different Voice: Women’s Conceptions of the Self and Morality. Harvard Educational Review 47:481–517

    Google Scholar 

  • Greenberg J. (1990) Looking Fair vs. Being Fair: Managing Impressions of Organizational Justice. Research in Organizational Behavior 12:111–157

    Google Scholar 

  • Greenberg J. (2002) Who Stole the Money, and When? Individual and Situational Determinants of Employee Theft. Organizational Behavior and Human Decision Processes 89(1):985–1003

    Article  Google Scholar 

  • Guion R. M. (1998) Assessment, Measurement, and Prediction for Personnel Decisions. Erlbaum, Mahwah, NJ

    Google Scholar 

  • Hawkins K. A., Faraone S. V., Pepple J. R., Seidman L. J., Tsuang M. T. (1990) WAIS-R Validation of the Wonderlic Personnel Test as a Brief Measure in a Psychiatric Sample. Psychological Assessment 2:198–201

    Article  Google Scholar 

  • Higgins A., Power C., Kohlberg L. (1984) The Relationship of Moral Atmosphere to Judgments of Responsibility. In: Kurtines W. M. Gewirtz J. L. (eds) Morality, Moral Behavior, and Moral Development. Wiley, New York, pp. 74–106

    Google Scholar 

  • Hinkin T. R. (1995) A Review of Scale Development Practices in the Study of Organizations. Journal of Management 21(5): 967–988

    Article  Google Scholar 

  • Hogan R., Hogan J. (1992) Hogan Personality Inventory Manual. University of Tulsa, Tulsa

    Google Scholar 

  • Jones T. M. (1991) Ethical Decision Making by Individuals in Organizations: An Issue-contingent Model. Academy of Management Review 16(2): 366–395

    Article  Google Scholar 

  • Kanungo R. A., Conger J. A. (1993) Promoting Altruism as a Corporate Goal. Academy of Management Executive 7(3): 37–48

    Google Scholar 

  • Kay S. R. (1982) Kohlberg’s Theory of Moral Development: Critical Analysis of Validation Studies with the Defining Issues Test. International Journal of Psychology 17: 27–42

    Google Scholar 

  • Kohlberg L. (1969) Stage and Sequence: The Cognitive Development Approach to Socialization. In: Goslin D. A. (ed) Handbook of Socialization Theory. Rand McNally, Chicago, pp. 347–480

    Google Scholar 

  • Kraack, T.: 1985, The Relation of Moral Development To Involvement and Leadership Experiences. Doctoral dissertation. (University of Minnesota, Minneapolis, MN)

  • Lawrence, J. A.: 1979, The Component Procedure of Moral Judgment Making. Dissertation Abstracts International 40: 896B (University Microfilms no. 7918350)

  • Lykken D. T. (1991) What’s Wrong with Psychology Anyway? In: Chiccetti D., Grove W. (eds) Thinking Clearly About Psychology. University of Minnesota Press, Minneapolis, pp. 3–39

    Google Scholar 

  • Mael F. A., Connerly M., Morath R. A. (1996) None of Your Business: Parameters of Biodata Invasiveness. Personnel Psychology 49: 613–650

    Article  Google Scholar 

  • Meetz H. K., Bebeau M. J., Thoma S. J. (1988) The Validity and Reliability of a Clinical Performance Rating Scale. Journal of Dental Education 52(6): 290–297

    Google Scholar 

  • Mentkowski, M. and M. Strait: 1983, A Longitudinal Study of Student Change in Cognitive Development and Generic Abilities in an Outcome-centered Liberal Arts Curriculum. Final Report to the National Institute of Education, No. 6. Office of Research and Evaluation, Alverno College, Milwaukee, Wisconsin

  • Moreland K. L. (1985) Review of the Defining Issues Test. In: Mitchell J. V. (ed.) The Ninth Mental Measurements Yearbook. The University of Nebraska Press, Lincoln, NE, pp. 440–442

    Google Scholar 

  • Narvaez D. (1993) High Achieving Students and Moral Judgment. Journal for the Education of the Gifted 16(3): 268–279

    Google Scholar 

  • Pedhazer E. J., Schmelkin L. P. (1991) Measurement, Design, and Analysis: An Integrated Approach. Lawrence Erlbaum Associates, Hillsdale, NJ

    Google Scholar 

  • Ponemon, L.: 1992, ‚Auditor Underreporting of Time and Moral Reasoning: An Experimental-lab Study’, Contemporary Accounting Research 9, 171–189

  • Ponemon L., Gabhart D. R. L. (1994) Ethical Reasoning Research in the Accounting and Auditing Professions. In: Rest J., Narvaez D. (eds) Moral Development in the Professions: Psychology and Applied Ethics. Erlbaum, Hillsdale, NJ, pp. 101–119

    Google Scholar 

  • Rawls J. (1971) A Theory of Justice. Harvard University Press, Cambridge, MA

    Google Scholar 

  • Rest J. R. (1975) Longitudinal Study of the Defining Issues Test: A Strategy for Analyzing Developmental Change. Developmental Psychology 11: 738–748

    Article  Google Scholar 

  • Rest J. R. (1979) Development in Judging Moral Issues. University of Minnesota Press, Minneapolis

    Google Scholar 

  • Rest J. R. (1986) Moral Development: Advances in Research and Theory. Praeger, New York

    Google Scholar 

  • Rest J. R., Narvaez D. (1994) Moral Development in the Professions. Lawrence Erlbaum Associates Inc, Hillsdale, NJ

    Google Scholar 

  • Rest J., Thoma S., Edwards L. (1997) Designing and Validating a Measure of Moral Development: Stage Preference and Stage Consistency Approaches. Journal of Educational Psychology 89(1): 5–28

    Article  Google Scholar 

  • Rest J., Narvaez D., Bebeau M., Thoma S. (1999) A Neo-Kohlbergian Approach: The DIT and Schema Theory. Educational Psychology Review 11(4): 291–324

    Article  Google Scholar 

  • Rosse R. B., Stecher M. D., Miller J. L., Levin R. A. (1998) The Impact of Response Distortion on Pre-employment Personality Testing and Hiring Decisions. Journal of Applied Psychology 83(4):634–644

    Article  Google Scholar 

  • Ryan L. V., Riordan C. M. (2000) The Development of a Measure of Desired Moral Approbation. Educational and Psychological Measurement 60(3): 448–462

    Article  Google Scholar 

  • Rynes S. L., Connerly M. L. (1992) Applicant Reactions to Alternative Selection Procedures. Journal of Business Psychology 4:261–277

    Google Scholar 

  • Sackett P. R., Dreher G. F. (1982) Constructs and Assessment Center Dimensions: Some Troubling Empirical Findings. Journal of Applied Psychology 67: 401–410

    Article  Google Scholar 

  • Sanders C. E., Lubinski D., Benbow C. P. (1995) Does the Defining Issues Test Measure Psychological Phenomena Distinct from Verbal Ability? An Examination of Lykken’s Query. Journal of Personality and Social Psychology 69(3): 498–504

    Article  Google Scholar 

  • Saville & Holdsworth Limited. (1989) Validation Review. SHL, London

    Google Scholar 

  • Schlaefli A., Rest J. R., Thoma S. J. (1985) Does Moral Education Improve Moral Judgment? A Meta-analysis of Intervention Studies Using the Defining Issues Test. Review of Educational Research 55(3): 319–352

    Article  Google Scholar 

  • Sheehan T. J., Candee D., Williams J., Donnelly J., Husted S. D. (1985) Structural Equation Models of Moral Reasoning and Physician Performance. Evaluation and the Health Professions 8: 379–400

    Article  Google Scholar 

  • Sheehan, T. J., S. D. Husted and D. Candee: 1981, The Development of Moral Judgment Over Three Years in a Group of Medical Students. Paper presented at AERA Convention, Los Angeles

  • Sheehan T. J., Husted S. D., Candee D., Cook C. D., Bargen M. (1980) Moral Judgment as a Predictor of Clinical Performance. Evaluation and the Health Professions 3(4): 393–404

    Google Scholar 

  • Sutton R. E. (1992) Review of the Defining Issues Test. In: Kramer J. J., Conoley J. C. (eds) The Eleventh Mental Measurements Yearbook. The University of Nebraska Press, Lincoln NE, pp. 268–269

    Google Scholar 

  • Thoma, S. J.: 1984, Estimating Gender Differences in the Comprehension and Preference for Moral Issues. Unpublished manuscript (University of Minnesota, Minneapolis)

  • Thoma S. J. (1994) Moral Judgment and Moral Action. In: Rest J., Narvaez D. (eds) Moral Development in the Professions. Lawrence Erlbaum, Hillsdale, NJ, pp. 199–211

    Google Scholar 

  • Thoma, S. J., D. Narvaez and J. Rest: 1998, Does the Defining Issues Test Measure Psychological Phenomena Distinct from Verbal Ability? Some Relevant Data. Manuscript submitted for publication

  • Treviño L. K. (1986) Ethical Decision Making in Organizations: A Person-situation Interactionist Model. Academy of Management Review 11(3): 601–617

    Article  Google Scholar 

  • Treviño L. K. (1992) Moral Reasoning and Business Ethics: Implications for Research, Education, and Management. Journal of Business Ethics 11: 445–459

    Article  Google Scholar 

  • Treviño L. K., Youngblood S. A. (1990) Bad Apples in Bad Barrels: A Causal Analysis of Ethical Decision-making Behavior. Journal of Applied Psychology 75(4): 378–385

    Article  Google Scholar 

  • Turiel E., Smetana J. (1984) Social Knowledge and Action: The Coordination of Domains. In: Kurtines W. M., Gewirtz J. L. (eds) Morality, Moral Behavior, and Moral Development. Wiley, New York, pp. 261–282

    Google Scholar 

  • Turner N., Barling J., Epitropaki O., Butcher V., Milner C. (2002) Transformational Leadership and Moral Reasoning. Journal of Applied Psychology 87: 304–311

    Article  Google Scholar 

  • Van Dyne L. V., Cummings L. L., Parks J. M. (1995) Extra-role Behaviors: In Pursuit of Construct and Definitional Clarity (A Bridge Over Muddied Waters). Research in Organizational Behavior 17: 215–285

    Google Scholar 

  • Viswesvaran C., Ones D. S. (1998) The Effects of Social Desirability and Faking on Personality and Integrity Assessment for Personnel Selection. Human Performance 11(2–3): 245–269

    Google Scholar 

  • Weber J. (1990) Managers’ Moral Reasoning: Assessing Their Responses to Three Moral Dilemmas. Human Relations 43(7): 687–702

    Article  Google Scholar 

  • Weber J. (1992) Scenarios in Business Ethics Research: Review, Critical Assessment, and Recommendations. Business Ethics Quarterly 2(2): 137–159

    Google Scholar 

  • Westbrook T. (1994) Ethics and Journalism. In: Rest J. R., Narvaez D.(eds) Moral Development in the Professions: Psychology and Applied Ethics. Erlbaum, Hillsdale, NY, pp. 189–198

    Google Scholar 

  • Whitely J. (1982) Character Development in College Students. Character Education Press, Schenectady, NY

    Google Scholar 

  • Wonderlic & Associates. (1998) Wonderlic Personnel Test and Scholastic Level Exam User’s Manual. E. F. Wonderlic & Associates, Northfield, IL

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Psychology, The Pennsylvania State University, 403 Moore Building, University Park, PA, 16802, U.S.A.

    Greg E. Loviscky, Linda K. Treviño & Rick R. Jacobs

Authors
  1. Greg E. Loviscky
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Linda K. Treviño
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Rick R. Jacobs
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Greg E. Loviscky.

Additional information

Greg E. Loviscky is a Lecturer in the Psychology Department at The Pennsylvania State University. His teaching and applied research focus on topics such as: personnel selection, performance management, ethical leadership, leader development, and assessment centers. He continues to collaborate with EB Jacobs, where he had worked in the capacity of Senior Consultant and had managed and directed entry and promotion public safety testing projects, and with other industrial/Organizational Psychology colleagues in and out of the Psychology Department.

Linda K. Treviño is Professor of Organizational Behavior, Cook Fellow in Business Ethics, and Director of the Shoemaker Program in Business Ethics in the Smeal College of Business an The Pennsylvania State University. Her recent research includes work on ethical culture and ethical leadership, values-based leadership, abusive supervision, leadership impacts on voice and reporting behavior in organizations. She also studies academic integrity issues including impact of honor codes on cheating behavior.

Dr. Rick Jacobs specializes in performance measurement, research design and analysis, and test validation and development. In addition to his role at EB Jacobs, Dr. Jacobs has been a Professor of Psychology at The Pennsylvania State University since 1979 and has been a regular contributor to the general industrial psychology literature with over 50 articles, book chapters and presentations. Dr. Jacobs has been the principal investigator of research grants with the Nuclear Regulatory Commission and Brookhaven National Lab to develop new methods for understanding and auditing inhibitors to safety in high reliability (nuclear power plants) work settings. He also has conducted extensive research into the relationships among seniority, experience, performance and attitudes in the private and public sectors, with particular emphasis on the teaching profession. Dr. Jacobs has been the recipient of several high honors within his field including achieving the status of Fellow for the American Psychological Association/American Psychological Society/Society of Industrial and Organizational Psychology (1997); William A. Owens Scholarly Achievement Award (2000); Yoder-Heneman Personnel Research Award (1992); and James McKeen Cattell Award for Excellence in Research Design (1980).

Rights and permissions

Reprints and permissions

About this article

Cite this article

Loviscky, G.E., Treviño, L.K. & Jacobs, R.R. Assessing Managers’ Ethical Decision-making: An Objective Measure of Managerial Moral Judgment. J Bus Ethics 73, 263–285 (2007). https://doi.org/10.1007/s10551-006-9206-2

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-006-9206-2

Keywords

Search

Navigation