How Ethical Behavior of Firms is Influenced by the Legal and Political Environments: A Bayesian Causal Map Analysis Based on Stages of Development [Book Review]
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Journal of Business Ethics 115 (2):271-290 (2013)
Even though potential impacts of political and legal environments of business on ethical behavior of firms (EBOF) have been conceptually recognized, not much evidence (i.e., empirical work) has been produced to clarify their role. In this paper, using Bayesian causal maps (BCMs) methodology, relationships between legal and political environments of business and EBOF are investigated. The unique design of our study allows us to analyze these relationships based on the stages of development in 92 countries around the world. The EBOF models structured through BCMs are used to explain how EBOF in a given country group are shaped by how managers perceive political, legislative, and protective environments of business in these countries. The results suggest that irregular payments and bribes are the most influential factors affecting managers’ perceptions of business ethics in relatively more advanced economies, whereas intellectual property protection is the most influential factor affecting managers’ perceptions of business ethics in less-advanced economies. The results also suggest that regardless of where the business is conducted in the world, judicial independence is the driving force behind managers’ perceptions of business ethics. In addition, the results of this study provide further support for scholars who argue that business ethics is likely to vary among countries based on their socio-economic factors. In addition to its managerial implications, the study provides directions for policy makers to improve the ethical conduct of businesses in their respective countries
|Keywords||Bayesian causal map Ethical behavior of firms Judicial independence Bribery Intellectual property protection Country development stage|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
Ishmael P. Akaah (1989). Differences in Research Ethics Judgments Between Male and Female Marketing Professionals. Journal of Business Ethics 8 (5):375 - 381.
Antonio Argandoña (2005). Corruption and Companies: The Use of Facilitating Payments. [REVIEW] Journal of Business Ethics 60 (3):251 - 264.
Antonio Argandoña (2003). Private-to-Private Corruption. Journal of Business Ethics 47 (3):253 - 267.
Tim Barnett, Ken Bass & Gene Brown (1994). Ethical Ideology and Ethical Judgment Regarding Ethical Issues in Business. Journal of Business Ethics 13 (6):469 - 480.
Jonathan Batten, Samanthala Hettihewa & Robert Mellor (1999). Factors Affecting Ethical Management: Comparing a Developed and a Developing Economy. [REVIEW] Journal of Business Ethics 19 (1):51 - 59.
Citations of this work BETA
Maree Bernoth, Elaine Dietsch, Oliver Kisalay Burmeister & Michael Schwartz (2014). Information Management in Aged Care: Cases of Confidentiality and Elder Abuse. Journal of Business Ethics 122 (3):453-460.
Similar books and articles
Till Talaulicar (2009). Barriers Against Globalizing Corporate Ethics: An Analysis of Legal Disputes on Implementing U.S. Codes of Ethics in Germany. [REVIEW] Journal of Business Ethics 84 (3):349 - 360.
Linda M. Sama (1998). Ethical Behavior as a Strategic Choice by Large Corporations. Business Ethics Quarterly 8 (1):85-104.
Michael H. Morris, Minet Schindehutte, John Walton & Jeffrey Allen (2002). The Ethical Context of Entrepreneurship: Proposing and Testing a Developmental Framework. [REVIEW] Journal of Business Ethics 40 (4):331 - 361.
Laura Albareda (2011). Integrated Networked Governance on Corporate Responsibility and Sustainability. Proceedings of the International Association for Business and Society 22:398-410.
S. Prakash Sethi & Linda M. Sama (1998). Ethical Behavior as a Strategic Choice by Large Corporations: The Interactive Effect of Marketplace Competition, Industry Structure and Firm Resources. Business Ethics Quarterly 8 (1):85-104.
J. Neubert Mitchell (forthcoming). The Effects of Ethical Codes on Ethical Perceptions of Actions Toward Stakeholders. Journal of Business Ethics.
Tina T. He, Wilson X. B. Li & Gordon Y. N. Tang (2012). Dividends Behavior in State- Versus Family-Controlled Firms: Evidence From Hong Kong. [REVIEW] Journal of Business Ethics 110 (1):97-112.
Earl D. Honeycutt, Myron Glassman, Michael T. Zugelder & Kiran Karande (2001). Determinants of Ethical Behavior: A Study of Autosalespeople. [REVIEW] Journal of Business Ethics 32 (1):69 - 79.
Benyamin M. Lichtenstein, Beverly A. Smith & William R. Torbert (1995). Leadership and Ethical Development. Business Ethics Quarterly 5 (1):97-116.
Barbara A. Spencer & John K. Butler (1987). Measuring the Relative Importances of Social Responsibility Components: A Decision Modeling Approach. [REVIEW] Journal of Business Ethics 6 (7):573 - 577.
David A. Krueger & Bocheng Ding (2009). Ethical Analysis and Challenges of Two International Firms in China. Journal of Business Ethics 89 (2):167 - 182.
B. S. Sridhar & Artegal Camburn (1993). Stages of Moral Development of Corporations. Journal of Business Ethics 12 (9):727 - 739.
Geoffrey C. Hazard (2004). Legal Ethics: A Comparative Study. Stanford University Press.
Joyce K. H. Nga & Evelyn W. S. Lum (2013). An Investigation Into Unethical Behavior Intentions Among Undergraduate Students: A Malaysian Study. [REVIEW] Journal of Academic Ethics 11 (1):45-71.
Added to index2012-07-12
Total downloads10 ( #152,182 of 1,099,911 )
Recent downloads (6 months)6 ( #51,477 of 1,099,911 )
How can I increase my downloads?