A detailed study of scientific theories of human nature and the possible ways in which human behavior can be predicted and controlled.

This paper assesses the potential of organisational culture as a means for improving ethics in organisations. Organisational culture is recognised as one determinant of how people behave, more or less ethically, in organisations. It is also incresingly understood as an attribute that management can and should influence to improve organisational performance. When things go wrong in organisations, managers look to the culture as both the source of problems and the basis for solutions. Two models of organisational culture and ethical behaviour (...) are evaluated. They rest on different understandings of organisational culture and the processes by which ethics are enhanced. Firstly, the prevailing approach holds that creating a unitary cohesive culture around core moral values is the solution to enhancing ethical behaviour. Both the feasibility and desirability of this approach, in terms of ethical outcomes, is questioned. The second model queries the existence of organisational culture at all, arguing that organisations are nothing more than shifting coalitions of subcultures. In this second model, the very porousness of the subcultures provides a catalyst for the scrutiny and critique of norms and practices. Such diversity and debate is construed as potentially a better safeguard for ethical behaviour than the uniformity promised by the unitary, strong culture model. (shrink)

The institutionalization of ethics is an important task for today's organizations if they are to effectively counteract the increasingly frequent occurrences of blatantly unethical and often illegal behavior within large and often highly respected organizations. This article discusses the importance of institutionalizing organizational ethics and emphasizes the importance of several variables (psychological contract, organizational commitment, and an ethically-oriented culture) to the institutionalization of ethics within any organization.... institutionalizing ethics may sound ponderous, but its meaning is straightforward. It means getting ethics (...) formally and explicitly into daily business life. It means getting ethics into company policy formation at the board and top management levels and through a formal code, getting ethics into all daily decision making and work practices down the line, at all levels of employment. It means grafting a new branch on the corporate decision tree — a branch that reads right/wrong (Purcell and Weber, 1979, p. 6). (shrink)

This paper is designed to do three things while discussing the challenge of ethical behavior in organization. First, it discusses some reasons why unethical behavior occurs in organization. Secondly, the paper highlights the importance of organizational culture in establishing an ethical climate within an organization. Finally, the paper presents some suggestions for creating and maintaining an ethically-oriented culture.

This paper is designed to do three things while discussing the challenge of ethical behavior in organization. First, it discusses some reasons why unethical behavior occurs in organization. Secondly, the paper highlights the importance of organizational culture in establishing an ethical climate within an organization. Finally, the paper presents some suggestions for creating and maintaining an ethically-oriented culture.

The paper describes and discusses unethical behavior in organizations, as a result of (interacting) disputable leadership and ethical climate. This paper presents and analyzes the well-known bond trading scandal at Salomon Brother to demonstrate the development of an unethical organizational culture under the leadership of John Gutfreund. The paper argues that leaders shape and reinforce an ethical or unethical organizational climate by what they pay attention to, how they react to crises, how they behave, how they allocate rewards, and how (...) they hire and fire individuals. (shrink)

This paper describes and discusses the Enron Corporation debacle. The paper presents the business ethics background and leadership mechanisms affecting Enron''s collapse and eventual bankruptcy. Through a systematic analysis of the organizational culture at Enron (following Schein''s frame of reference) the paper demonstrates how the company''s culture had profound effects on the ethics of its employees.

Abstract:To date, our understanding of ethical decision making and behavior in organizations has been concentrated in the area of moral judgment, largely because of the hundreds of studies done involving cognitive moral development. This paper addresses the problem of our relative lack of understanding in other areas of human morality by applying a recently developed construct—moral approbation—to illuminate the link between moral judgment and moral action. This recent work is extended here by exploring the effect that organizations have on ethical (...) behavior in terms of the moral approbation construct. (shrink)

This study represents an improvement in the ethics scales inventory published in a 1988 Journal of Business Ethics article. The article presents the distillation and validation process whereby the original 33 item inventory was reduced to eight items. These eight items comprise the following ethical dimensions: a moral equity dimension, a relativism dimension, and a contractualism dimension. The multidimensional ethics scale demonstrates significant predictive ability.

The conceptual model presented in this article argues that corporations exhibit specific behaviors that signal their true level of moral development. Accordingly, the authors identify five levels of moral development and discuss the dynamics that move corporations from one level to another. Examples of corporate behavior which are indicative of specific stages of moral development are offered.

This research compares the importance of moral values for corporations' managements, as reported by 97 knowledgeable employees in eight corporations. Does an employee consensus emerge within corporations and does it differ between corporations? To answer this question, an analysis of covariance technique was used to compare the importance of moral values between corporations versus within corporations. Results corroborate the hypothesis that closely matched corporations do differ significantly from one another in the importance of prevailing moral values. Evidence also suggests that (...) the importance of prevailing moral values may be inversely related with company size. Implications for future research and for the practice of management are delineated. (shrink)

The Antecedent-Behavior-Consequence (ABC)-analysis is a tool for analyzing behavior and stems from the field of psychology where it is used as a tool for the understanding of behavior in general and organizational behavior in particular. In this paper the ABC-analysis is implemented as a tool to understand why people behave ethically in organizations, through the identification of key environmental factors that cause such behavior. This analysis can be the first step to recognizing the complexity of circumstances determining ethical behavior, as (...) well as trigger for changing that behavior. This will be elaborated in the implementation process of an ethical code. The working of the ABC-analysis will be illustrated with an example derived from field research concerning the reorganization of a department of a chemical company. (shrink)

This paper reviews the relationship between organisational leadership, corporate governance and business ethics, and considers the implications for management. Business ethics is defined, and the causes and consequences of unethical behavior are discussed. Issues pertaining to leadership, subordinate and organisation responsibility for business ethics are considered. The changing role of business leaders and the new concept of ''corporate governance'' are examined, with an increasing importance being placed on ethical and socially responsible attitudes towards business. Organisational effectiveness and organisational efficiency, formerly (...) central issues for practising managers, with directors thinking in terms of goal achievement for their respective organisations, have now been augmented by an awareness of issues in business ethics, and a requirement for members of the corporate governance to behave in more socially responsible ways. A secondary aim of the paper is to introduce an approach which illustrates how corporate governance and management could deal with some of the moral dilemmas that they may have to face. (shrink)

An organizational culture can be defined as "Organizational Humanizing Culture" if it presents the following features: (1) recognition of the person in his or her dignity, rights, uniqueness, sociability and capacity for personal growth, (2) respect for persons and their human rights, (3) care and service for persons around one, and (4) management towards the common good versus particular interests. Current findings and generalized experience suggest that an organizational culture with these features tends to bring about trust and associability, which (...) are basic elements for social capital (a sort of asset embedded in the relationships of individuals, communities, networks or societies). (shrink)

In this article it is argued that much research into processes of moral learning and development in organisations has been conducted under somewhat controlled conditions, and that these do not permit testing of individuals' thought and action under more extreme circumstances. Therefore in practice one needs to acknowledge the effect of the actual organisational context. Three aspects or issues concerning the effect of this context on interventions are identified: first, systemic factors, especially corporate culture, impact on individual behaviour; second, consultants (...) and developers may have difficulty when working with people at different levels of moral development; and, third, differential influence among members of an organisation affects the possibility of, and the enactment of, moral development programmes.Each of these considerations is discussed while employing conceptualisations based on Kohlberg's ideas. However the question of influence and power is not one which has been addressed to any significant extent by writers in this particular area. The essential argument in this article is that this must be done if the full potential of research into moral development in organisations is to be realised. (shrink)

This article begins with an explanation of how moral development for organizations has parallels to Kohlberg's categorization of the levels of individual moral development. Then the levels of organizational moral development are integrated into the literature on corporate social performance by relating them to different stakeholder orientations. Finally, the authors propose a model of organizational moral development that emphasizes the role of top management in creating organizational processes that shape the organizational and institutional components of corporate social performance. This article (...) represents one approach to linking the distinct streams of business ethics and business-and-society research into a more complete understanding of how managers and firms address complex ethical and social issues. (shrink)

Abstract:To date, our understanding of ethical decision making and behavior in organizations has been concentrated in the area of moral judgment, largely because of the hundreds of studies done involving cognitive moral development. This paper addresses the problem of our relative lack of understanding in other areas of human morality by applying a recently developed construct—moral approbation—to illuminate the link between moral judgment and moral action. This recent work is extended here by exploring the effect that organizations have on ethical (...) behavior in terms of the moral approbation construct. (shrink)

In this paper I examine how the constituent elements of a firm's organizational structure affect the ethical behavior of workers. The formal features of organizations I examine are the compensation practices, performance and evaluation systems, and decision-making assignments. I argue that the formal organizational structure, which is distinguished from corporate culture, is necessary, though not sufficient, in solving ethical problems within firms. At best the formal structure should not undermine the ethical actions of workers. When combined with a strong culture, (...) however, the organizational structure may be sufficient in promoting ethical conduct. While helpful, ethics training and corporate codes are neither necessary nor sufficient in promoting ethical behavior within firms. (shrink)

Many popular business strategies, such as re-engineering, core competency, and value engineering, may achieve short-term profits by antagonizing workers and alienating customers. We contend that self-actualized companies must create an ethical business environment grounded in three ethical principles. To suggest these principles, which characterize all "volitionist companies", we first review two typical problems and the questionable ways that some companies resolved them. Then, we discuss these principles and compare "volitionism" to three well- known normative ethical theories. Finally, we show that (...) these principles form the core of at least four popular management theories. (shrink)

This paper examines the critical role that organizational leaders play in establishing a values based climate. We discuss seven mechanisms by which leaders convey the importance of ethical values to members, and establish the expectations regarding ethical conduct that become engrained in the organizations climate. We also suggest that leaders at different organizational levels rely on different mechanisms to transmit values and expectations. These mechanisms then influence members practices and expectations, further increase the salience of ethical values and result in (...) the shared perceptions that form the organizations climate. The paper is organized in three parts. Part onebegins with a brief discussion of climates regarding ethics and the critical role of values. Part two provides discussion on the mechanisms by which leaders and members transmit values and create climates related to ethics. Part three provides a discussion of these concepts with implications for theory, research, and practice. (shrink)

The present article attempts to evaluate various tenets of moral philosophy by reviewing empirical data from the field of organizational justice bearing on: (a) people''s concerns about fairness in organizations, and (b) the consequences of following or not following rules of justice. With respect to concerns about fairness in organizations, utilitarian claims that people believe that fairness requires distributions of reward based on merit were assessed. Similarly, evidence was reviewed bearing on the claim of psychological egoists that judgments of fairness (...) reflect a self-interested bias. Finally, Kant''s view that people should never lie was evaluated in light of evidence describing people''s actual attitudes toward lying. In all three cases, the underlying philosophical premises were concluded to be overly simplistic in view of complexities about human nature revealed in empirical research. In addition, evidence was reviewed that shed light on the teleological claims of utilitarians regarding the purported benefits of following two common organizational practices — using merit-based pay, and punishing harmdoers. Here, too, the empirical evidence (findings that these techniques do not consistently yield the greatest good for the greatest number) suggests that the premise underlying utilitarian thought is based on unfounded, overly simplistic assumptions about the effects of following various allegedly moral ideas. It is concluded that our analyses provide a useful first step toward the desired goal of business ethicists of integrating prescriptive and descriptive approaches to justice. (shrink)

The stakeholder approach offers the opportunity to consider corporate responsibility in a wider sense than that afforded by the stockholder or shareholder approaches. Having said that, this article aims to show that this theory does not offer a normative corporate responsibility concept that can be our response to two basic questions. On the one hand, for what is the company morally responsible and, on the other hand, why is the corporation morally responsible in terms of conventional and post-conventional perspectives? The (...) reason why the stakeholder approach does not offer such a definition, as we shall see, is because the normative stakeholder approaches tend to confuse the social validity with the moral validity or legitimacy. It leads us to a conventional definition of corporate moral responsibility (CMR) that is not relevant to the pluralistic and global framework of our societies and economies. The purpose of this paper is to demonstrate this intuition. (shrink)

Organizations interested in employee ethics compliance face the problem of conflict between employee and organizational ethical standards. Socializing new employees is one way of assuring compliance. Important for longer term employees as well as new ones, however, is making those standards visible and then operable in the daily life of an organization. This study, conducted in one large organization, found that, depending on organizational level, awareness of an organization's ethical standards is predicted by managerial adherence to and organizational compliance with (...) those standards and/or discussions with peers. Regardless of level, organizational commitment was predicted most strongly by managerial adherence to organizational standards. These findings have theoretical implications for the fields of business ethics, organizational identity and organizational socialization and practical implications for the implementation of ethics policies. (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)

Past research has focused on individual culpability with the assumption that individuals will further their own self interest over that of the organization, given an appropriate opportunity. In contrast, this research shifts the focus from individual motivation to the influence of the formal and informal control systems of organizations on ethical behaviours. An open-ended interview approach was used to collect data. It was found that pressures within the informal system were the dominant influence in the resolution of ethical issues. The (...) dominance of the informal system, however, varies according to the economic position of the organization. (shrink)

This study examines the impact of ethical climate types (professionalism, caring, rules, instrumental, efficiency, and independence) on various facets of job satisfaction (pay, promotions, co-workers, supervisors, and work itself) in a large non-profit organization. Professionalism was the most reported and efficiency was the least reported ethical climate type in the organization. Among various facets of job satisfaction, respondents were most satisfied with their work and least satisfied with their pay. None of the climate types significantly influenced satisfaction with pay. A (...) professional climate significantly influenced satisfaction with promotions, supervisors, and work. It also significantly influenced overall job satisfaction. Those respondents who believed that their organization had caring climate were more satisfied with their supervisors. An instrumental climate had a significant negative influence on overall job satisfaction and satisfaction with promotions, co-workers, and supervisors. Rules, efficiency, and independence climate types did not significantly affect any facets of job satisfaction. (shrink)

Abstract:The aim of this paper is to create a framework which can serve as a guide to the understanding of organizational ethicality. This is done by linking ethical and organizational theory. Organizational ethicality is about “being” as well as “doing”: relevant ethical theory is therefore both substantive (agent-centred, concerned with the “good”) as well as procedural (act-centred, concerned with the “right” in the sense of the moral or just thing to do). The ethical theories of Alasdair MacIntyre and Jurgen Habermas, (...) as representatives of these two traditions, are mapped onto a framework which characterises organizations as assemblages of practices supported by a climate embedded within an organizational culture. Organizational practice is articulated and given meaning within a discourse of “sensemaking” in which narrative creates space-time links between people and events. Within that same communicative climate practices are evaluated and decisions taken. This theoretical framework is specified in such a way as to highlight the parallels with the ethical theories of MacIntyre, who uses notions of practice, tradition and the narrative unity of moral experience to create an ethical theory of the “good,” and Habermas, who spells out the process of moral argumentation by which consensus on the “just” or “right” is reached. Some possibilities for further research are suggested at the end of the paper. (shrink)

A study involving purchasing managers was conducted to test specific Hunt-Vitell theoretical propositions concerning the determinants of managers' teleological evaluations. We extended the Hunt-Vitell model by developing a new integrative construct, namely the desirability of consequences to self versus others. We hypothesized that desirability of consequences affects teleological evaluations in that the more desirable the consequences of a particular action, the more likely managers evaluate that action positively. The results of the present study provided support for this hypothesis. Furthermore, we (...) extended the Hunt-Vitell model by developing a new integrative construct, namely the desirability of consequences of self versus others. We hypothesized that cognitive moral development moderates the relationship between the desirability of consequences of self versus others and teleological evaluation. The results failed to support this hypothesis. We explained the lack of support in terms of the level of aggregation of the data, the possibility of the confounding effect of respondents' sensitivity to ethical issues, and the possibility that deontological evaluations confounded the respondents' teleological judgments. Future research and managerial implications of the findings were also discussed. (shrink)

The purpose of this present research is to expand upon the foundation that codes of ethics are more useful guides to managers in their behavior and decision-making when managers are more familiar with code content and intentions. We explore whether the impact of code familiarity on code usefulness differs: (a) under varying conditions of turbulence and (b) between persons with relativist versus idealist personal values. Data have been collected from a sample of 1700 executives in member companies of the U.S. (...) Direct Selling Association, and responses were received from 286 (16.8% returned). Perceptions of ethics code familiarity and usefulness decline as business turbulence increases. The decline in familiarity/usefulness was more pronounced for managers with a relativistic ethical orientation. (shrink)

Logical and moral arguments have been made for the organizational importance of ethos or virtuousness, in addition to ethics and responsibility. Research evidence is beginning to provide, empirical support for such normative claims. This paper considers the relationship between ethics and ethos in contemporary organizations by summarizing emerging findings that link virtuousness and performance. The effect of virtue in organizations derives from its buffering and amplifying effects, both of which are described.

Using measures developed by Singhapakdi et al. (1996, Journal of Business ethics 15, 1131–1140) the perceived importance of ethics and social responsibility (PRESOR) is measured among MBA students in the United States, Malaysia and Ukraine revealing a stockholder view and two stakeholder views. Relativism and Idealism are also measured. The scores of MBA students are compared among each other and with those of the U.S. managers who were part of the original study. Managers'' scores tend to be significantly higher on (...) the Stockholder and Stakeholder II views, and much lower on Relativism than the MBA students. The Malaysian MBA students scored higher than did the American MBA students on Relativism, Idealism and the Stockholder view. The Ukrainian MBA students'' scores on the three PRESOR factors are generally similar to those of the American MBAs, while they had the highest scores of any group on the Relativism scale. Overall, the patterns of responses, as much as the significant differences on specific scales, support the notion that culture, however defined, affects both values and ethics. Several directions for future research are identified.''. (shrink)

The importance of institutionalizing ethics within an organization cannot be underestimated.

Every year in this country, some 10,000 college and university courses are taught in applied ethics. And many professional organizations now have their own codes of ethics. Yet social science has had little impact upon applied ethics. This book promises to change that trend by illustrating how social science can make a contribution to applied ethics. The text reports psychological studies relevant to applied ethics for many professionals, including accountants, college students and teachers, counselors, dentists, doctors, journalists, nurses, school teachers, (...) athletes, and veterinarians. Each chapter begins with the research base of the cognitive-developmental approach--especially linked to Kohlberg and Rest's Defining Issues Test. Finally, the book summarizes recent research on the following issues: * moral judgment scores within and between professions, * pre- and post-test evaluations of ethics education programs, * moral judgment and moral behavior, * models of professional ethicseducation, and * models for developing new assessment tools. Researchers in different professional fields investigate different questions, develop different research strategies, and report different findings. Typically researchers of one professional field are not aware of research in other fields. An important aim of the present book is to bring this diverse research together so that cross-fertilization can occur and ideas from one field can transfer to another. (shrink)

This long-awaited two-volume set constitutes the definitive presentation of the system of classifying moral judgment built up by Lawrence Kohlberg and his associates over a period of twenty years. Researchers in child development and education around the world, many of whom have worked with interim versions of the system, indeed, all those seriously interested in understanding the problem of moral judgment, will find it an indispensable resource. Volume I reviews Kohlberg's stage theory, and the by-now large body of research on (...) the significance and utility of his moral stages. Issues of reliability and validity are addressed. The volume ends with detailed instructions for using the forms in Volume 2. Volume 2, in a specially-designed, user-friendly format, includes three alternative functionally-equivalent forms of the scoring system. (shrink)