Journal of Business Ethics 53 (4):365-370 (2004)
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.
|Keywords||ethics Worldcom Enron banality risky-shift escalating commitment ethical decision making|
|Categories||categorize this paper)|
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Citations of this work BETA
A Review of the Empirical Ethical Decision-Making Literature: 2004–2011. [REVIEW]Jana L. Craft - 2013 - Journal of Business Ethics 117 (2):221-259.
Spiraling Down Into Corruption: A Dynamic Analysis of the Social Identity Processes That Cause Corruption in Organizations to Grow. [REVIEW]Niki A. den Nieuwenboer & Muel Kaptein - 2008 - Journal of Business Ethics 83 (2):133-146.
Research Note and Review of the Empirical Ethical Decision-Making Literature: Boundary Conditions and Extensions.Nitish Singh, Yung-Hwal Park & Kevin Lehnert - 2015 - Journal of Business Ethics 129 (1):195-219.
The Effects of Escalating Commitment on Ethical Decision-Making.Marc Street & Vera L. Street - 2006 - Journal of Business Ethics 64 (4):343-356.
Ethical Marginality: The Icarus Syndrome and Banality of Wrongdoing.Dennis R. Balch & Robert W. Armstrong - 2010 - Journal of Business Ethics 92 (2):291-303.
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