This research investigates the degree to which there are differences in the moral reasoning ability of business top, middle, and first-line managers in selected industries. This study considered the influence of three independent variables: reported organizational ethical climate, locus of control, and selected demographic and institutional variables on managers reasoning ability. This researcher relies on Kohlberg's theory of moral development, Victor and Cullen's ethical work climate theory, and Rotter's theory of internal-external locus of control. A short form of Rest's DIT (...) instrument measured the moral reasoning abilities of the participants. Selected demographic and institutional variables were also measured. A survey questionnaire was sent to 400 managerial and executive level employees at a random sample of Fortune 500 firms throughout the United States: Dun & Bradstreet provided the researcher with a proportional stratified random sample of these 400 managerial and executive level employees at a variety of organizations. Interestingly, women exhibited insignificant higher mean I-E scores and higher mean "P" score than men. Statistically significant relationship between age and perceived organizational ethical climate types and between management levels and organizational ethical climate were also found. (shrink)

Rotter’s theory of internal-external locus of control evolved from Carl Jung’s work. In Psychological Types (1923), Jung defined two opposing tendencies in personality introversion and extroversion. While both tendencies are present in all individuals, one tends to dominate the other. The internal–external control construct was conceived as a generalized expectancy to perceive reinforcement either as contingent upon one’s own behaviors (internal control) or as the result of forces beyond one’s control, such as chance, fate, or powerful others (external control) (Lefcourt, (...) 1981, p. 15). Locus of control refers to those causes to which individuals attribute their successes and failures. Individuals are responsive to some external motivators (e.g. better jobs, promotions, higher salaries), but the more powerful are internal pressures (the desire for increased job satisfaction, self-esteem, and quality of life). Research indicates that an individual’s internal–external locus of control impacts their ethical behavior in an organization. Rotter’s I–E Scale (1966, Psychological Monographics 80(1), 1–28), a 29 item forced choice instrument, is the most widely used instrument to measure the degree of internality versus externality. Each respondent’s score for this scale had a potential range from 0 to 23. As there are six filler items used to mask the intent of the questionnaire a score of 23 being extremely external in nature and a score of zero being extremely internal in nature. The I Scale (Internal Scale) measures the extent to which people believe that they have control over their own lives; the E Scale (External Scale) measures the extent to which people believe that they do not have control over their own lives. This study utilized the I–E Scale. Jones (Unpublished Doctoral Dissertation) and Deflumeri (Unpublished Doctoral Dissertation) investigated the likelihood of an individual to engage in unethical behavior in an organization. This research suggests that when employees perceive that locus of control resides internally they themselves decide what is appropriate behavior, but with an external locus of control, employees will look at others to decide appropriate behavior. The researcher in this study investigated the relationship between managers’ locus of control and their moral reasoning. (shrink)

Since manager's decisions impact organizational goals and organizational ethical behavior, this researcher investigated the degree to which there are differences in the moral reasoning ability of business managers of selected industries and whether there are significant differences between top, middle, and first-line management levels. To determine the relationship between managers' locus of control and their moral reasoning ability, this study considered three independent variables: reported organizational ethical climate, locus of control, and selected demographic and institutional variables. For a foundation, this (...) researcher relied on Kohlberg's theory of moral development, Victor and Cullen's ethical work climate theory, and Rotter's theory of internal—external locus of control (which evolved from Carl Jung). The short form of Rest's DIT instrument measured the moral reasoning abilities of the participants. The selected demographic and institutional variables (age, work tenure, education, gender, management level and industry category) provided the useful information to investigate these relationships of moral reasoning ability of individual managers. A survey questionnaire was sent to 400 managerial and executive level employees at a random sample of Fortune 500 firms throughout the United States: Dun and Bradstreet provided the researcher with a proportional stratified random sample of these 400 managerial and executive level employees at a variety of organizations. Interestingly, women in this study exhibited slightly higher (more external) mean I—E scores and (more principled) higher mean “P” score than men. While both of these results were anticipated, neither was significant. However, one major finding of this study was the statistically significant relationship between age and perceived organizational ethical climate types (Caring, Law and Code, Rule, Instrument, and Independence). Another major finding revealed a statistically significant relationship between management levels and organizational ethical climate. (shrink)