This paper explores the relationship between individual work values and unethical decision-making and actual behavior at work through two complementary studies. Specifically, we use a robust and comprehensive model of individual work values to predict unethical decision-making in a sample of working professionals and accounting students enrolled in ethics courses, and IT employees working in sales and customer service. Study 1 demonstrates that young professionals who rate power as a relatively important value (i.e., those reporting (...) high levels of the self-enhancement value) are more likely to violate professional conduct guidelines despite receiving training regarding ethical professional principles. Study 2, which examines a group of employees from an IT firm, demonstrates that those rating power as an important value are more likely to engage in non-work-related computing (i.e., cyberloafing) even when they are aware of a monitoring software that tracks their computer usage and an explicit policy prohibiting the use of these computers for personal reasons. (shrink)

This paper explores the relationship between individual work values and unethical decision-making and actual behavior at work through two complementary studies. Specifically, we use a robust and comprehensive model of individual work values to predict unethical decision-making in a sample of working professionals and accounting students enrolled in ethics courses, and IT employees working in sales and customer service. Study 1 demonstrates that young professionals who rate power as a relatively important value are more likely (...) to violate professional conduct guidelines despite receiving training regarding ethical professional principles. Study 2, which examines a group of employees from an IT firm, demonstrates that those rating power as an important value are more likely to engage in non-work-related computing even when they are aware of a monitoring software that tracks their computer usage and an explicit policy prohibiting the use of these computers for personal reasons. (shrink)

The research theorizes how hubris impacts ethical decision making and develops empirical evidence that earnings manipulation is more likely at firms led by CEOs influenced by hubris. The theory posits that hubris impairs moral awareness by causing decision makers to ignore external factors that otherwise drive such awareness. Additionally, these individuals apply a flawed subjective assessment of the decision they face which further impairs moral awareness. The predicted result is that hubris leads managers to invoke an amoral (...) decision process which causes a higher incidence of unethical behavior among these individuals. An empirical study investigates the relationship between CEO hubris and the unethical practice of earnings manipulation. This study finds a significant correlation between CEO hubris and earnings manipulation at the firms they lead, an outcome broadly consistent with the theory developed. (shrink)

The relationship between unethical peer behavior and observers’ unethical behavior traditionally has been examined from a social learning perspective. We employ two additional theoretical lenses, social identity theory and social comparison theory, each of which offers additional insight into this relationship. Data from 600 undergraduate business students in two universities provide support for all the three perspectives, suggesting that unethical behavior is influenced by social learning, social identity, and social comparison processes. Implications for managers (...) and future research are discussed. (shrink)

Unethical employee behavior (UEB), an important organizational phenomenon, is dynamic and multi-faceted. Recent renewed interest in the role of emotion in ethical decision-making (EDM) suggests that unethical behaviors are neither always rationally derived nor deliberately undertaken. This study explores how to integrate the conscious and nonconscious dimensions of unethical decision-making. By broadening the scope of inquiry, we explore how integral affect—the emotion tied to anticipated decision outcomes for the employee engaging in misconduct—can shed (...) light on UEB. We review related literature on affect and EDM and propose a model in which we assert that at a decision point, an employee experiences multiple integral affects that are either persuasive or dissuasive toward UEB. We further posit that among these integral affects, a dominant integral affect (DIA) emerges, determining the nature and direction of unethical behavior. In addition, our model considers the role of affective residue and the influence of other factors, such as incidental affect, disposition, context, and retrospection, to derive propositions. Our DIA model can help managers gain a comprehensive understanding of how affect, characterized by its locus (self or other orientation) and valence (enhancing or harming), determines the characteristics of UEB. (shrink)

A model is developed which identifies and describes various factors which affect ethical and unethical behavior in organizations, including a decision-maker's social, government and legal, work, professional and personal environments. The effect of individual decision maker attributes on the decision process is also discussed. The model links these influences with ethical and unethical behavior via the mediating structure of the individual's decision-making process.

This study examines the varying roles of power, status, and national culture in unethical decision-making. Most research on unethical behavior in organizations is grounded in Western societies; empirical comparative studies of the antecedents of unethical behavior across nations are rare. The authors conduct this comparative study using scenario studies with four conditions in both China and Canada. The results demonstrate that power is positively related to unethical decision-making in both countries. Status has (...) a positive effect on unethical decision-making and facilitates the unethical decisions of Canadian participants who have high power but not Chinese participants who have high power. To explicate participants’ unethical decision-making rationales, the authors ask participants to justify their unethical decisions; the results reveal that Chinese participants are more likely to cite position differences, whereas Canadian participants are more likely to cite work effort and personal abilities. These findings expand theoretical research on the relationship between social hierarchy and unethical decision-making and provide practical insights on unethical behavior in organizations. (shrink)

This study seeks to understand how consumers make unethical decisions and how unethical consumer behavior is formed in a relational society. By taking a relational interactive perspective and adopting a grounded theory approach, we have developed a theoretical framework for examining UCB’s developmental process in a relational society. The framework reveals 4 levels and 12 paths of UCB formation. Importantly, this study finds that UCB in a relational society is influenced by guanxi-oriented social culture so deeply that (...) it cannot be considered the result of a purely individual behavior choice. (shrink)

This research applies the theory of planned behavior to corporate managers’ decision making as it relates to fraudulent financial reporting. Specifically, we conducted two studies to examine the effects of attitude, subjective norm and perceived control on managers’ decisions to violate generally accepted accounting principles (GAAP) in order to meet an earnings target and receive an annual bonus. The results suggest that the theory of planned behavior predicts whether managers’ decisions are ethical or unethical. These findings (...) are relevant to corporate leaders who seek to improve ethical work climates of organizations and to many regulators, accountants, corporate governance officials and investors. (shrink)

The literature on ethical behavior has called for studies that investigate the interaction between individual and contextual factors. This study examined whether moral identity interacts with ethical culture to predict unethical behavior at work and whether implicit and explicit moral identity affects unethical behavior distinctively. Our sample consisted of 238 participants who took part in an experiment involving an in-basket exercise that measured unethical behavior. Ethical culture was manipulated via a cover letter from (...) a fictitious company’s CEO, and moral identity was measured through a self-report scale and the Implicit Association Test (IAT). Findings indicate that implicit and explicit moral identity were negatively associated with unethical behavior and that organizational culture moderated the relationship between moral identity and unethical behavior. The results have theoretical and practical implications for understanding the interaction of predictors of unethical behavior by combining automatic and deliberate measures of moral identity with ethical culture. (shrink)

In the egoism philosophical framework, it is contended that when organizations focus on their long-term interests, they, without knowing it, advance the interests of society as a whole, which is perceived as ethical. In this research, this premise is challenged using data collected from the social media outlets of 29 randomly selected companies from the 2013 Fortune 500 list. Through qualitative comparative analysis, the exact opposite was found. In fact, the organizations that focused on striving for their long-term success are (...) perceived as unethical. It was also found that socially responsible organizations are perceived as ethical whereas those that misrepresent their positions and attempt to influence the decisions of others are perceived as unethical. Implications for managers are discussed, and future directions are suggested. (shrink)

This paper is designed to do four things. First, the paper discusses the importance of groupthink in contributing to unethical behavior. Second, the paper discribes how groupthink contributed to unethical behavior in three organizations (Beech-Nut, E. F. Hutton, and Salomon Brothers). Third, symptoms of groupthink (such as arrogance, overcommitment, and excessive loyalty to the group) will be presented along with two methods for programming conflict (devil's advocate and dialectic) into an organization and group's decisions. Finally, the (...) paper introduces some prescriptions for reducing the probability of groupthink. (shrink)

Public university business schools appear to struggle in upholding their educational self. Corporate scandals linked to business graduates raise questions about the role of PUBS in the development of civilized societies. This study develops an ethical decision making model in the PUBS context based on moral theories and then empirically tests the model. The model hypothesizes that individuals’ moral philosophies in terms of egoism and utilitarianism as well as subjective norm in terms of peer influence affect their unethical (...) behavioural intention. Moreover, this study compares ethical levels between business students with those from other disciplines. Data was collected using a structured questionnaire from established public universities in Malaysia. The data was analysed using the Smart Partial Least Squares, a second generation structural equation modelling software, as well as the SPSS version 23. The results reveal that moral philosophies and subjective norm exert positive and significant effects on unethical behaviour intention. The study, however, found no significant effect with regard to unethical behaviours between business and non-business students. The authors argue that a university’s status may explain a student’s intentions towards ethics. Implications of the results and future research are proposed. (shrink)

Previous research indicates that students in engineering self-report cheating in college at higher rates than those in most other disciplines. Prior work also suggests that participation in one deviant behavior is a reasonable predictor of future deviant behavior. This combination of factors leads to a situation where engineering students who frequently participate in academic dishonesty are more likely to make unethical decisions in professional practice. To investigate this scenario, we propose the hypotheses that (1) there are similarities (...) in the decision-making processes used by engineering students when considering whether or not to participate in academic and professional dishonesty, and (2) prior academic dishonesty by engineering students is an indicator of future decisions to act dishonestly. Our sample consisted of undergraduate engineering students from two technically-oriented private universities. As a group, the sample reported working full-time an average of six months per year as professionals in addition to attending classes during the remaining six months. This combination of both academic and professional experience provides a sample of students who are experienced in both settings. Responses to open-ended questions on an exploratory survey indicate that students identify common themes in describing both temptations to cheat or to violate workplace policies and factors which caused them to hesitate in acting unethically, thus supporting our first hypothesis and laying the foundation for future surveys having forced-choice responses. As indicated by the responses to forced-choice questions for the engineering students surveyed, there is a relationship between self-reported rates of cheating in high school and decisions to cheat in college and to violate workplace policies; supporting our second hypothesis. Thus, this exploratory study demonstrates connections between decision-making about both academic and professional dishonesty. If better understood, these connections could lead to practical approaches for encouraging ethical behavior in the academic setting, which might then influence future ethical decision-making in workplace settings. (shrink)

An implicit goal of many interventions intended to enhance integrity is to minimize peoples' exposure to unethical events. The intent of the present effort was to examine if exposure to unethical practices in the course of one's work is related to ethical decision making. Accordingly, 248 doctoral students in the biological, health, and social sciences were asked to complete a field appropriate measure of ethical decision making. In addition, they were asked to complete measures examining the (...) perceived acceptability of unethical events and a measure examining perceptions of ethical climate. When these criterion measures were correlated with a measure examining the frequency with which they had been exposed to unethical events in their day-to-day work, it was found that event exposure was strongly related to ethical decision making but less strongly related to climate perceptions and perceptions of event acceptability. However, these relationships were moderated by level of experience. The implications of these findings for practices intended to improve ethics are discussed. (shrink)

In order to make strategic decisions and improve their firm’s performance, top management teams must have information on the competitive context in general, and the firm’s competitors in particular. During the decision-making process, top managers can have access to “privileged information”—i.e., information of a confidential and potentially strategic nature that could ultimately confer a decisional advantage over competing parties. However, obtaining and using privileged information in a business context is often illegal—and if not, is usually deemed unethical or (...) “against the rules.” Using a quasi-experimental design, this study explores the reasons why an individual might engage in such unethical behavior. We assess the extent to which managers use privileged information with respect to perceived team cohesion and peers’ ethicality. More specifically, our results show that the use of privileged information is predicted by the decision-maker’s perceptions of their team cohesion and their peers’ ethicality. Moreover, we find that team performance, as a group-level nonself-reported factor, moderates the relationship between cohesion and the use of privileged information. The relationship between cohesion, ethical behavior, and team performance is also discussed. We draw on these findings to make some practical suggestions on how to incorporate practices that could better prevent the unethical use of privileged information in strategic decision-making processes. (shrink)

Unethical pro-organizational behavior is one of the core factors that affect organizational development. Although enterprises and researchers have done a lot of work, a quantitative and systematic assessment of unethical pro-organizational behavior research is still lacking, this review conducts a bibliometric analysis to describe the characteristics and trends of unethical pro-organizational behavior research in business and management, such as publication trend analysis, co-citation analysis, keywords co-occurrence analysis, and citation burst analysis. The results show that (...) 89 articles and 4,523 references from 49 journals contributed by 254 authors are identified. The number of publications has increased significantly since 2019. The China and United States are the most productive country. Umphress E and Yam C are the most influential authors. “Journal of Business Ethics and Frontiers in Psychology” are the most influential journal, 26 words in 516 keywords constitute the strongest set of terms available, Keyword co-occurrence analysis found ethical decision-making, the measurement, and impact of unethical pro-organizational behavior, the antecedents of ethical leadership are worthy and prospective potential trends. These findings provide a systematically, transparently, and visually reviewed the landscape and development process of unethical pro-organizational behavior research, which may help researchers and practitioners to understand unethical pro-organizational behavior in business management and provide a new perspective for future research. (shrink)

The goal of this paper is to examine the impact of leadership and promotion regulatory focus on employees’ willingness to engage in unethical pro-organizational behavior . Building from a person–situation interactionist perspective, we investigate the interaction of leadership style and how leaders frame messages, as well as test a three-way interaction with promotion focus. Using an experimental design, we found that inspirational and charismatic transformational leaders elicited higher levels of UPB than transactional leaders when the leaders used loss (...) framing, but not gain framing. Furthermore, followers’ promotion regulatory focus moderated this relationship such that the effect held for followers with low promotion focus, but not for individuals with high promotion focus. Our findings extend the understanding of UPB, offer theoretical mechanisms to explain when this behavior occurs, and contribute to leadership theory and research on ethical decision making. (shrink)

Can exposure to media portrayals of human violence impact an individual’s ethical decision making at work? Ethical business failures can result in enormous financial losses to individuals, businesses, and society. We study how exposure to human violence—especially through media—can cause individuals to make less ethical decisions. We present three experiments, each showing a causal link between exposure to human violence and unethical business behavior, and show this relationship is mediated by an increase in individual hostility levels as (...) a result of exposure to violence. Using observational data, we then provide evidence suggesting that this relationship extends beyond the context of our experiments, showing that companies headquartered in locations marked by greater human violence are more likely to fraudulently misstate their financial statements and exhibit more aggressive financial reporting. Combined, our results suggest that exposure to human violence has significant and real effects on an individual’s ethical decision making. (shrink)

This article uses behavioral theories to develop an ethical decision-making model that describes how psychological factors affect the development of unethical intentions to commit fraud. We evaluate the effects of the dark triad of personality traits on fraud intentions and behaviors. We use a combination of survey results, an experiment, and structural equation modeling to empirically test our model. The theoretical insights demonstrate that psychopathy, Machiavellianism, and narcissism affect different parts of the unethical decision-making process. Narcissism (...) motivates individuals to act unethically for their personal benefit and changes their perceptions of their abilities to successfully commit fraud. Machiavellianism motivates individuals not only to act unethically, but also alters perceptions about the opportunities that exist to deceive others. Psychopathy has a prominent effect on how individuals rationalize their fraudulent behaviors. Accordingly, we find that the dark triad elements act in concert as powerful psychological antecedents to fraud behaviors. (shrink)

In economic unethical decision-making experiments, one important methodological investigation is what types of contexts should be used to frame the instructions. Within the experimental economics community, using neutral-context instructions instead of loaded-context instructions is the mainstream practice. Because the loaded contexts may impact behavior in an unpredictable manner and therefore, put experimental control at risk. Nevertheless, using the loaded-context instructions could be advantageous in several ways. A properly framed context can help to facilitate learning and gain ecological (...) validity. The challenge is whether we can identify when and why the loaded context may alter behavior. In this paper, we aim to test if being familiar with a loaded context can systematically influence unethical decisions in a bribery game. We conduct a laboratory bribery game experiment with three different treatments: the neutral-context treatment, the familiar-context treatment, and the unfamiliar-context treatment. Using the neutral-context treatment as a benchmark, we find that participants in the familiar-context treatment express stronger negative attitudes toward corruption. Attitudes toward unethical behavior are the same in the neutral-context treatment and the unfamiliar-context treatment. Behaviorally, the participants in the familiar-context treatment are much less likely to engage in corrupt activities. The neutral-context treatment and the unfamiliar-context treatment produce the same behavioral outcome. (shrink)

Unethical behavior is under-examined in the workplace. To date, few studies have attempted to explore the antecedents of an employee’s ethical decisions, particularly with respect to unethical behavior and its effects. To capture an employee’s psychological perception of unethical behavior in the workplace, this paper integrates organizational factors into the Theory of Reasoned Action. By conducting an empirical study in a Chinese firm, we found that codes of conduct and performance pressure have a significant (...) influence on an employee’s attitude toward and social beliefs about unethical behavior. We also demonstrated that employees’ unethical behaviors affect the firm performance of an entrepreneurial venture. The insights gleaned from the findings on this Chinese company have a number of important implications for both research and practice. (shrink)

Corruption is defined as private individuals or enterprises who misuse public resources for private power and/or political gains. They do so through abusing public officials whose behavior deviates from the formal government rules of conduct. Ethical behavior is defined as individuals or enterprises adhering to a non-corrupt work or business practice. A review of the academic literature is conducted drawing on perspectives from the political, economic, and anthropological sciences. Insights from a Danish research program are reported on. This (...) program identifies five different actions for dealing with corruption: (1) no action; (2) withdrawals from markets; (3) decentralized decision-making process; (4) establishment of an anti-corruption code; and (5) mutual commitment through integrity pact. The following aspects of ethical behavior should be regulated through an anti-corruption code: the company vis-à-vis political parties; gifts and entertainment expenses; political campaign contributions; and policy against small-scale corruption. Directions for future research are considered including the role of international organizations and multinational companies in fighting corruption and fostering ethical behavior; the role of countries and their governments; and the management systems. (shrink)

In this study, we propose and test a model of the effects of organizational ethical culture and organizational architecture on the perceived unethical behavior of employees towards customers. This study also examines the relationship between organizational ethical culture and moral acceptability judgment, hypothesizing that moral acceptability judgment is an important stage in the ethical decision-making process. Based on a field study in one of the largest financial institutions in Europe, we found that organizational ethical culture was significantly (...) related to the perceived frequency of unethical behavior towards customers and to the moral acceptability judgment of this type of unethical behavior. No support was found for the claim that features of organizational architecture are associated with the perceived frequency of unethical behavior towards customers. This is the first study to document the differential effects of organizational architecture and organizational ethical culture on perceived unethical behavior of employees towards customers, in wholesale banking. Implications for managers and future research are discussed. (shrink)

In this study, we propose and test a model of the effects of organizational ethical culture and organizational architecture on the perceived unethical behavior of employees towards customers. This study also examines the relationship between organizational ethical culture and moral acceptability judgment, hypothesizing that moral acceptability judgment is an important stage in the ethical decision-making process. Based on a field study in one of the largest financial institutions in Europe, we found that organizational ethical culture was significantly (...) related to the perceived frequency of unethical behavior towards customers and to the moral acceptability judgment of this type of unethical behavior. No support was found for the claim that features of organizational architecture are associated with the perceived frequency of unethical behavior towards customers. This is the first study to document the differential effects of organizational architecture and organizational ethical culture on perceived unethical behavior of employees towards customers, in wholesale banking. Implications for managers and future research are discussed. (shrink)

Drawing on social exchange theory, we examine the conditions under which employees’ good intentions motivate them to engage in unethical pro-organizational behavior (UPB) and the psychological mechanism behind this behavioral decision. Findings from a time-lagged field study and a scenario study indicate (1) an interactive effect between perceived organizational support and employee performance on UPB; (2) that low performers who perceive high levels of organizational support are more likely to engage in UPB; and (3) that feelings of (...) indebtedness to the organization mediate the interactive effect on UPB. Therefore, the paper highlights the importance of conditional factors in motivating UPB by combining employee ‘good intentions’ and ‘disadvantageous situations’ to understand the UPB decision process. The paper concludes with theoretical and practical implications. (shrink)

Time pressure has been shown to have a negative impact on ethical decision-making. This paper uses an experimental approach to examine the impact of an antecedent of time pressure, whether it is anticipated or not, on participants’ perceptions of unethical behaviour. Utilising 60 business school students at an Australian university, we examine the differential impact of anticipated and unanticipated time deadline pressure on participants’ perceptions of the likelihood of unethical behaviour occurring. We find the perception of the (...) likelihood of unethical behaviour occurring to be significantly reduced when time pressure is anticipated rather than unanticipated. The implications of this finding for both professional service organisations and tertiary institutions are considered. (shrink)

E-Learning has proliferated throughout the education sector in recent years. Unfortunately, an unintended and undesirable aspect of e-Learning is centered on unethical behavior exhibited by students engaged in technology-facilitated cheating. Interestingly, cheating in e-Learning systems occurs in the social context of the class. Using results from a qualitative field study, the authors investigate the socio-technical dimensions of ethical decision-making in e-Learning systems focusing on individual and situational factors. They developed propositions and provide an in-depth discussion of identified (...) factors. Their findings provide the basis for researchers to develop testable propositions for further empirical investigations and provide insight for educators dealing with the unique challenges of the socio-technical dimensions of ethical behavior in e-Learning systems. (shrink)

This article explores the hypothesis that third parties are motivated to seek information about agents who have behaved unethically in the past, even if the agent and available information are irrelevant to the third parties’ goals and interests. We explored two possible motives for this information seeking behavior: deonance, or the motive to care about ethics and justice simply for the sake of ethics and justice, and distrust-based threat monitoring. Participants in a consumer decision task were found to (...) seek out information about an agent who had behaved unethically even when the agent was explicitly excluded from the task; there were no intentions to purchase from the agent; performance expectations for the agent’s product were low; the information that could be sought was non-diagnostic, redundant or irrelevant to an ethical judgment; and alternatives in the market offered as good or better value as the unethical agent. Critically, this information seeking took place even when the observer could disengage from and was not vulnerable to the agent. The findings are discussed in terms of third party information seeking and its effects on ethical behavior in the marketplace. (shrink)

Organizations have increasingly relied on team-based reward systems to boost productivity and foster collaboration. Drawing on the literature on ethics and justice as well as appraisal theories of emotion, we examine how team-based reward systems can have an insidious side effect: They increase the likelihood that employees remain silent when observing a team member engage in unethical behavior. Across four studies adopting different methods, measures, and samples, we found consistent evidence that people are less likely to report (i.e., (...) speak up or provide anonymous feedback about) a team member’s unethical behavior in team-based than in individual-based reward systems. Furthermore, our research reveals that this effect is primarily driven by a decrease in the experience of moral anger, which subsequently leads to a decreased likelihood of reporting unethical behavior when it benefits the team rather than the individual. We do not find support for perceived indirect benefit or envy as alternative explanations, suggesting that the decision to report a team member’s unethical behavior is not driven by calculative and selfish motives, but by moral motives. Finally, we establish that the effect is contingent on the observer and the perpetrator being members of the same team; it dissipates when the observer and the perpetrator are part of different teams. Our work contributes to research on reward systems and business ethics and provides practical implications for human resource practices. (shrink)

We theorize that victim anonymity is an important factor in ethical decision making, such that actors engage in more self-interested and unethical behaviors toward anonymous victims than they do toward identifiable victims. Three experiments provided empirical support for this argument. In Study 1, participants withheld more life-saving products from anonymous than from identifiable victims. In Study 2, participants allocated a sum of payment more unfairly when interacting with an anonymous than with an identifiable partner. Finally, in Study 3, (...) participants cheated more from an anonymous than from an identifiable person. Anticipated guilt fully mediated these effects in all three studies. Taken together, our research suggests that anonymous victims may be more likely to incur unethical treatment, which could explain many unethical business behaviors. (shrink)

Unfortunately, business is often associated with unethical behavior. While research has offered a number of explanations for why business might encourage unethical behavior, we argue that how a person frames a situation may provide important insight. Drawing on the decision frame literature, the goal of the current research is to identify the differences in cognitive processing associated with two decision frames dominant in the business ethics literature—business and ethical—and, with that knowledge, examine ways to (...) mitigate the detrimental influence of frame on unethical behavior. We first demonstrate the causal link between frame and misrepresentation, and then identify several differences in cognitive processing—cost–benefit analyses, concern for others, and construal level—that distinguish business and ethical frames, and investigate their effects on misrepresentation. In our final set of studies, we demonstrate that the influence of these frames on misrepresentation can be altered by manipulating these cognitive processes, both mitigating and exacerbating a decision maker’s engagement in misrepresentation. We conclude by summarizing our findings and their potential impact on unethical behavior more broadly. (shrink)

Based on social-cognitive theory, this article proposes a model that seeks to explain why high status organizational members engage in unethical behavior. We argue that status differentiation in organizations creates social isolation which initiates activation of high status group identity and a deactivation of moral identity. We further argue that high status group identity results in insensitivity to the needs of out-group members which, in turn, results in lessened motivation to selfregulate ethical decision making. As a result (...) of this identity activation, we demonstrate how high status individuals will be more vulnerable to engaging in unethical activities. Individual-level moderators of the relationships are also discussed. (shrink)

Behavioral ethics is an emerging field that takes an empirical, social scientific approach to the study of business ethics. In this special issue, we include six articles that fall within the domain of behavioral ethics and that focus on three themes—moral awareness, ethical decision making, and reactions to unethical behavior. Each of the articles sheds additional light on the specific issues addressed. However, we hope this special issue will have an impact beyond that of the new insights (...) offered in these articles, by stimulating evenmore research in this burgeoning field. (shrink)

Scandals in companies such as Enron have been a source of great concern in the last decade. The events that led to a global financial crisis in 2008 have heightened this concern. How does one account for executive behaviors that led to such a crisis? This article argues that a conjunction of motive, means, and opportunity creates ‘an ethical hazard’ making questionable executive decisions more probable. It then suggests that corporate unethical behavior can be minimized by creating a (...) process to identify and remove such ethical hazards, and by appointing an ‘ethical hazards marshal.’. (shrink)

Behavioral ethics is an emerging field that takes an empirical, social scientific approach to the study of business ethics. In this special issue, we include six articles that fall within the domain of behavioral ethics and that focus on three themes—moral awareness, ethical decision making, and reactions to unethical behavior. Each of the articles sheds additional light on the specific issues addressed. However, we hope this special issue will have an impact beyond that of the new insights (...) offered in these articles, by stimulating evenmore research in this burgeoning field. (shrink)

Behavioral ethics is an emerging field that takes an empirical, social scientific approach to the study of business ethics. In this special issue, we include six articles that fall within the domain of behavioral ethics and that focus on three themes—moral awareness, ethical decision making, and reactions to unethical behavior. Each of the articles sheds additional light on the specific issues addressed. However, we hope this special issue will have an impact beyond that of the new insights (...) offered in these articles, by stimulating evenmore research in this burgeoning field. (shrink)

In response to numerous recent cases involving materially misstated financial information arising from fraudulent financial reporting, companies, auditors, and academics have increased their focus on strengthening internal controls as a means of deterring such unethical behaviors. However, prior research suggests that stronger controls may actually exacerbate the very opportunistic behavior the controls are intended to curb. The current study investigates whether the efficacy of an implemented control is conditioned on not only the strength of the control, but also (...) on how the firm frames the purpose for implementing the control. A monitoring purpose frames controls as reducing managers’ opportunities to engage in self-interested behavior, while a coordinating purpose frames controls as facilitating coordination between the firm and its managers. We posit that the efficacy of stronger controls to reduce unethical fraudulent reporting depends on the control frame. Using an experiment, this study investigates the interactive effect of control strength and control frame on managers’ fraudulent reporting decisions. As predicted, our results show that when controls are framed for monitoring purposes, stronger controls result in less fraudulent reporting than weaker controls. Conversely, when controls are framed for coordinating purposes, stronger controls result in more fraudulent reporting than weaker controls. Our results suggest that an inconsistency between the firm’s choice of the control strength and the control frame reduces the efficacy of the implemented control to curb unethical reporting behaviors. Furthermore, supplemental analysis shows that managers’ rationalization helps explain the interactive effect of control strength and communicated control purpose on fraudulent reporting. (shrink)

Many unethical decisions stem from a lack of awareness. In this article, we consider how mindfulness, an individual's awareness of his or her present experience, impacts ethical decision making. In our first study, we demonstrate that compared to individuals low in mindfulness, individuals high in mindfulness report that they are more likely to act ethically, are more likely to value upholding ethical standards (self-importance of moral identity, SMI), and are more likely to use a principled approach to ethical (...) decision making (formalism). In our second study, we test this relationship with a novel behavioral measure of unethical behavior: the carbonless anagram method (CAM). We find that of participants who cheated, compared to individuals low in mindfulness, individuals high in mindfulness cheated less. Taken together, our results demonstrate important connections between mindfulness and ethical decision making. (shrink)

Since there have been many recent occurrences of alleged wrongdoing by business persons and other professionals, it seems additional ethics research is needed to obtain knowledge that will impact real-world behavior. An empirical study assessed business students’ impressions of hypothetical wrongdoers and whistleblowers. To some extent, impressions of an unethical executive and a whistleblower were influenced by the same variables and in opposite directions. Female respondents judged the unethical executive less favorably and the whistleblower more favorably than (...) did males. The executive was rated less favorably and the whistleblower more favorably when the executive sought a small gain than when the goal was a large gain or prevention of a loss of either magnitude. Some manipulations, however, impacted impressions of one actor, but not the other. Perhaps ethics training can make students aware that issue␣framing and moral intensity components may bias decisions. (shrink)

The phenomenon of academic dishonesty among college students is prevalent, but its damage cannot be underestimated because the students' decisions to cheat were related to decisions to engage in similar unethical behavior in the workplace after graduation. To examine the influential factors of the cheating intention among part-time students with several years of work experience, we included an additional variable—unethical beliefs related to the workplace (professional unethical beliefs) into the theory of planned behavior. First-year business (...) students on the job were investigated from a university in northern Taiwan, resulting in a valid sample of 215 students. Our findings indicate that perceived behavioral control toward cheating and professional unethical beliefs have a greater impact on the intention to cheat. In addition, the subjective norm and attitudes also affect the students' cheating intention. Implications for managers and researchers are discussed, and suggestions for future research are offered. (shrink)

Since there have been many recent occurrences of alleged wrongdoing by business persons and other professionals, it seems additional ethics research is needed to obtain knowledge that will impact real-world behavior. An empirical study assessed business students' impressions of hypothetical wrongdoers and whistleblowers. To some extent, impressions of an unethical executive and a whistleblower were influenced by the same variables and in opposite directions. Female respondents judged the unethical executive less favorably and the whistleblower more favorably than (...) did males. The executive was rated less favorably and the whistleblower more favorably when the executive sought a small gain than when the goal was a large gain or prevention of a loss of either magnitude. Some manipulations, however, impacted impressions of one actor, but not the other. Perhaps ethics training can make students aware that issue framing and moral intensity components may bias decisions. (shrink)

Most of the academic research in the field of consumer ethics has focused on the cognitive antecedents and processes of unethical consumer behavior. However, the specific roles of discrete emotions such as fear have not yet been investigated thoroughly. This research examines the role of the need for cognition, the three affective responses—fear, power, and excitement—and perceived issue importance on moral intensity, ethical perceptions, and ethical intentions for four types of unethical consumer behaviors. A sample of consumers (...) from the two cities of Alexandria and Cairo, Egypt participated in the survey. Most research hypotheses were supported. NFC, issue importance, and affect variables were all predictors of moral intensity, ethical perceptions, and ethical intentions in four different consumer ethics scenarios. The specific predictors varied from one consumer ethics scenario to another, however. (shrink)

Despite the importance of scientific integrity to the well-being of society, recent findings suggest that training and mentoring in the responsible conduct of research are not very reliable or effective inhibitors of research misbehavior. Understanding how and why individual scientists decide to behave in ways that conform to or violate norms and standards of research is essential to the development of more effective training programs and the creation of more supportive environments. Scholars in business management, psychology, and other disciplines have (...) identified many important factors that affect ethical behavior, including individual, contextual, and organizational factors. Surprisingly little research has been conducted to examine the role of these factors in either the development of ethical decision-making skills, or their applicability to ethical issues commonly encountered in research and other scholarly and professional activities. Interdisciplinary approaches combined with research and discipline relevant paradigms should greatly enhance understanding of the individual contextual and organizational factors involved in ethical and unethical research conduct. Such studies will inform and facilitate the development of more effective ethics education programs in the sciences and engineering professions. (shrink)

There is increasing public interest in understanding the nature of corporate ethics due to the knowledge that unethical decisions and activities frequently undermine the performance and abilities of many organizations. Of the current literature found on the topic of ways organizations can influence ethical behavior, a majority is found on the issue of corporate codes of ethics.Most discussions on codes of ethics evaluate the contents of the codes and offer opinions on their wording, content, and/or value. Unfortunately, very (...) little research has been devoted towards discovering whether they are effective in promoting ethical decision-making behavior. Thus, due to the lack of empirical research on this particular topic, this paper attempts to further address this issue. (shrink)

This paper posits that organizational variables are the factors that lead to the moral decline of companies like Enron and Worldcom. The individuals involved created environments within the organizations that precipitated a spiral of unethical decision-making. It is proposed that at the executive level, it is the organizational factors associated with power and decision-making that have the critical influence on moral and ethical behavior. The study has used variables that were deemed to be surrogate measures of (...) the ethical violations (OSHA and EPA violations), the risky shift phenomenon (executive team size), banality of wrong-doing (reputation score for firms) and escalating commitment (tenure with the firm/change in revenue for declining firms). The research found that there were small correlations between ethical violations and the three organizational variables. (shrink)

We investigated the relationship between guilt proneness and counterproductive work behavior (CWB) using a diverse sample of employed adults working in a variety of different industries at various levels in their organizations. CWB refers to behaviors that harm or are intended to harm organizations or people in organizations. Guilt proneness is a personality trait characterized by a predisposition to experience negative feelings about personal wrongdoing. CWB was engaged in less frequently by individuals high in guilt proneness compared to those (...) low in guilt proneness, controlling for other known correlates of CWB. CWB was also predicted by gender, age, intention to turnover, interpersonal conflict at work, and negative affect at work. Given the detrimental impact of CWB on people and organizations, it may be wise for employers to consider guilt proneness when making hiring decisions. (shrink)

In this article, we describe the influence of violations of community standards of fairness (Kahneman, Knetsch, and Thaler, 1986a) on subsequent ethical decision-making and emotions. Across two studies, we manipulated explanations for a common action, and we find that explanations that violate community standards of fairness (e.g., by taking advantage of an in crease in market power) lead to greater intentions to behave unethically than explanations that are consistent with community standards of fairness (e.g., by passing along a price (...) increase). We find that perceptions of justifiability mediate this relationship. We also find that individuals derive significant psychological benefits (greater satisfaction, greater happiness, and reduced anger) from engaging in unethical behavior following perceived violations of fairness. (shrink)

We studied the role of social dynamics in moral decision-making and behavior by investigating how physical sensations of dirtiness versus cleanliness influence moral behavior in leader–subordinate relationships, and whether a leader’s self-interest functions as a boundary condition to this effect. A pilot study (N = 78) revealed that when participants imagined rewarding (vs. punishing) unethical behavior of a subordinate, they felt more dirty. Our main experiment (N = 96) showed that directly manipulating dirtiness by allowing (...) leaders to touch a dirty object (fake poop) led to more positive evaluations of, and higher bonuses for, unethical subordinates than touching a clean object (hygienic hand wipe). This effect, however, only emerged when the subordinate’s unethical behavior did not serve the leader’s own interest. Hence, subtle cues such as bodily sensations can shape moral decision-making and behavior in leader–subordinate relationships, but self-interest, as a core characteristic of interdependence, can override the influence of such cues on the leader’s moral behavior. (shrink)