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Managers’ Moral Reasoning: Evidence from Large Indian Manufacturing Organisations

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Abstract

Increased globalisation has also seen increased scrutiny of corporate behaviour by the communities. Clearly managers are under increased pressure from stakeholders not only to outperform their competitors, but also are expected to do so in an ethical manner. In order to act ethically an individual is expected to have a well-developed moral imagination and moral reasoning. Literature on ethical reasoning research indicates a positive relationship between higher levels of moral reasoning and ethical behaviour. This paper presents the findings of a study of the moral reasoning/moral development of managers working in large manufacturing enterprises situated in the state of Punjab in India. Kohlberg’s theory of Cognitive Moral Development forms the basis of the study. Moral Judgement Interview (MIG) developed by Weber, on the basis of Kohlberg’s theory was used for the study. Moral Reasoning Scores were calculated using Abbreviated Scoring Guide. More than half of the managers scored at post-conventional level of reasoning while assessing the moral dilemmas. The reasoning scores varied for the three dilemmas.

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Authors and Affiliations

  1. School of Management, University of South Australia, Elton Mayo Building, North Terrace, City West Campus, Adelaide, SA, 5000, Australia

    Manjit Monga

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  1. Manjit Monga
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Correspondence to Manjit Monga.

Additional information

Manjit Monga is a lecturer in the School of Management, at the Division of Business, University of South Australia. Her research interests are in the area of management and workplace ethics, organisational culture, research ethics and resource management.

The aythor is a lecturer in the School of Mangement, at the Division of Business,University of South Australia. Her research interests are in the area of mangement and workplace ethics,organisational culture,research ethics and human resource mangement.

Appendices

Appendix 1: Vignettes used in the study

Instructions to the respondents

(These instructions were read out and explained to the respondents and were provided as first page of the MJI).

The MJI consists of several stories that we believe present some challenges issues. Some of you might choose one solution to the stories, others of you may choose another. We are primarily interested in the explanations or reasons you give for your decisions. Try to justify and explain your statements as fully as possible. Very short answers are of no help to us, so be sure to elaborate fully. Use the backside of the provided to complete your answers if necessary. Keep in mind that we are more interested in your answers to the why questions than to what questions. Even if you give a long description of what you think is right or what think should be done, it is of no help if you do not explain why you think it should be done. Answer each question the best you can. Please do not compare an answer to prior answers.

Please begin the MJI by reading the first story on the next page.

These are the same as those used by Weber (1989) with the names changed from Heinz, Evelyn and Roger, the money values changed to Rupees, and the location, where it is specifically mentioned, to India.

Vignette 1 (Rajesh/Heinz)

In India, a woman was nearing death from a special kind of cancer. There was one drug that the doctors thought might save her. It was a form of radium that a druggist in the same town had recently discovered.

The drug was expensive to make, but the druggist was charging ten times what the drug cost him to make. He paid Rs 400 for the radium and charged Rs 4,000 for a small dose of the drug.

The sick woman’s husband, Rajesh, went to everyone he knew to borrow the money and tried every legal means, but he could only get together about Rs 2,000, which was half of what it cost.

He told the druggist that his wife was dying, and asked him to sell it cheaper or let him pay later. But the druggist said, “No, I discovered the drug and I’m going to make money from it”. So having tried every legal means, Rajesh gets desperate and considers breaking into the man’s store to steal the drug for his wife.

Questions

  1. 1.

    Should Rajesh steal the drug? (Yes or No) Why, or why not?

  2. 2.

    Does it make a difference whether or not he loves his wife?

  3. 3.

    Suppose the person dying is not his wife but a stranger? Should Rajesh steal the drug for the stranger?

  4. 4.

    Suppose the only chance Rajesh had to acquire the money is to steal funds from his employer. Should Rajesh steal his employer’s money to purchase the drug?

  5. 5.

    Is it important for people to do everything they can to save another’s life? Explain.

  6. 6.

    It is against the law for Rajesh to steal. Does that make it morally wrong?

  7. 7.

    In general, should people try to do everything they can to obey the law?

Vignette 2 (Kavita/Evelyn)

Kavita worked for an automotive steel casting company. She was part of a small group asked to investigate the cause of an operating problem that had developed in the wheel castings of a new luxury automobile and to make recommendations for its improvement. The problem did not directly create an unsafe condition, but it did lead to irritating sounds. The Vice President of Engineering told the group that he was certain that the problem was due to tensile stress in the castings.

Kavita and a lab technician conducted tests and found conclusive evidence that the problem was not tensile stress. As Kavita began work on other possible explanations of the problem, she was told that the problem had been solved. A report prepared by Kavita’s boss strongly supported the tensile stress hypothesis. All of the data points from Kavita’s experiments have been changed to fit the curves, and some of the points, which were far from where the theory would predict, have been omitted. The report “proved" that tensile stress was responsible for the problem.

Questions

  1. 1.

    Should Kavita contradict her boss’s report? (Yes or No) Why, or why not?

  2. 2.

    Should the potential conflict with Kavita’s boss have any impact on Kavita ’s actions? Why, or why not?

  3. 3.

    If the report supporting the tensile stress hypothesis was issued by the lab technician working on the project, should Kavita contradict the report?

  4. 4.

    Is it important that people do everything they can to have the truth known? Explain.

  5. 5.

    Suppose the problem with the brake involved more than irritating sounds. Would it make a difference if the brake problem caused uneven brake applications and skids, which could lead to possible human injury?

  6. 6.

    The data in the boss’s report are false. Does it make it morally wrong if Kavita fails to contradict the report?

  7. 7.

    Should people do everything they can to work within the corporate organisation and support their superiors?

Vignette 3 (Abhijit/Roger)

Abhijit worked for a small auditing firm and conducted an annual audit of a machinery manufacturer. During the audit he discovered that the firm had received a large loan from the local savings and loan association. It was illegal for a savings and loan association to make a loan to a manufacturing firm; they were restricted by the law at that time to mortgages based upon residential real estate.

Abhijit took his working papers and a xerox copy of the ledger showing the loan to his boss, the partner in charge of the auditing office. His boss listened to, and then told Abhijit: “I will take care of this privately. We simply cannot afford to lose a client of this status. You put the papers you have through the shredder”.

Questions

  1. 1.

    Should Abhijit shred his papers? (Yes or No) Why, or why not?

  2. 2.

    Does the illegality of the loan and Abhijit’s duty as an auditor make a difference in Abhijit ’s decision to shred his papers?

  3. 3.

    If Abhijit had been advised by one of his peers to shred his papers, should Abhijit shred his papers?

  4. 4.

    Is it important for people to do everything they can to follow their conscience? Explain.

  5. 5.

    Shredding papers is against the AICPA Code and covers up an illegally made loan. Is Abhijit also morally wrong if he shreds his papers?

  6. 6.

    What if Abhijit’s career was threatened if he refused to shred his papers?

  7. 7.

    Should people do everything they can to further their own careers?

Appendix 2: Abbreviated Scoring Guide

Stage orientation-moral reasoning explanation (Weber, 1991)

Table 1
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Monga, M. Managers’ Moral Reasoning: Evidence from Large Indian Manufacturing Organisations. J Bus Ethics 71, 179–194 (2007). https://doi.org/10.1007/s10551-006-9133-2

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