ABSTRACT:In this article we investigate a philosophical problem for normative business ethics theory suggested by a phenomenon that contemporary psychologists call “bounded ethicality,” which can be identified with the putative fact that well-intentioned people, constrained by psychological limitations, make ethical choices inconsistent with their own ethical beliefs and commitments. When one combines the idea that bounded ethicality is pervasive with the idea that a person morally ought to do something only if she can, it raises a doubt about (...) the practical relevance of the moral principles that business ethics theory prescribes. We call this doubt the Radical Behavioral Challenge. It consists in the idea that people cannot generally conform to the normative ethical principles that business ethics theorists prescribe, and that these principles are therefore practically irrelevant. We answer the Radical Behavioral Challenge and explore normative implications of our answer. (shrink)

Insurance claim fraud costs insurance companies, policymakers, and taxpayers billions of dollars every year and has been described as the second largest white collar crime. The most common insurance fraud activity and one that contributes a significant portion of dollar losses is the practice of padding claim amounts in the event of a loss. One of the largest issues insurance companies face is that policyholders often do not perceive insurance claim padding as an unethical behavior. However, very little research has (...) examined the factors that contribute to such perceptions. Considering how consumers often attempt to justify fraudulent behavior from a fairness perspective, the present work examines how the amount of the deductible in an insurance claim situation can influence feelings of fairness and ethicality. The results of an experimental study show that higher deductible amounts result in stronger perceptions that insurance claim padding is fair to the insurance company, weaker perceptions that the behavior is unethical, and higher proposed claim award amounts. The study also shows, however, that the deductible amount effects are attenuated for consumers who display higher ethical standards as reflected by their scores on the consumer ethics scale. Implications are discussed with respect to the insurance industry, deviant consumer behavior, and general business ethics theory. (shrink)

In this paper I consider the contribution that Hegel’s discussion of ethicality makes to his account of recognition in the Phenomenology of Spirit. While the famous relation of lord and bondsman might prompt us to think of all failures of recognition as failures of reciprocity, Hegel’s account of ethicality shows that it is possible for forms of social life to be structured so that no one is recognized. This failure of recognition is unique since its source does not (...) lie in a lack of reciprocity between individuals but in the absence of an explicit and shared conception of the “self.” In conclusion I point to the importance of the idea of the self to Hegel’s account of reciprocal intersubjective recognition in the text and contrast it with Pippin’s recent interpretation. (shrink)

In this paper I consider the contribution that Hegel’s discussion of ethicality makes to his account of recognition in the Phenomenology of Spirit. While the famous relation of lord and bondsman might prompt us to think of all failures of recognition as failures of reciprocity, Hegel’s account of ethicality shows that it is possible for forms of social life to be structured so that no one is recognized. This failure of recognition is unique since its source does not (...) lie in a lack of reciprocity between individuals but in the absence of an explicit and shared conception of the “self.” In conclusion I point to the importance of the idea of the self to Hegel’s account of reciprocal intersubjective recognition in the text and contrast it with Pippin’s recent interpretation. (shrink)

“Would you like to contribute to XYZ charity by adding a dollar to your bill today?” Point-of-sale campaigns for fundraising are common to grocery stores, pharmacies, restaurants and warehouse clubs. Commonly referred to as ‘checkout charity,’ these fundraisers have generated over $4.1 billion in contributions for nonprofits over the past three decades. Yet little research has focused on the ethicality of this type of campaign. To address this need, we analyze the issue using behavioral ethics and normative theory. We (...) consider three stakeholder perspectives, including the nonprofit initiating the campaign, the business hosting the campaign, and the donor. Often ethical theories are seen as competing for primacy rather than being complementary perspectives in choosing the best action. We demonstrate that ethical discernment results in a richer analysis when consulting multiple frameworks. The purpose of this paper is to provide a set of ethical considerations for individuals to draw upon when devising and donating to checkout charity campaigns. This analysis will serve as a conceptual resource for scholars, practitioners, and students of nonprofit and for-profit management. (shrink)

In the past few decades, a growth in ethical consumerism has led brands to increasingly develop conscientiousness and depict ethical image at a corporate level. However, most of the research studying business ethics in the field of corporate brand management is either conceptual or has been empirically conducted in relation to goods/products contexts. This is surprising because corporate brands are more relevant in services contexts, because of the distinct nature of services and the key role that employees have in the (...) services sector. Accordingly, this article aims at empirically examining the effects of customer perceived ethicality in the context of corporate services brands. Based on data collected for eight service categories using a panel of 2179 customers, the hypothesized structural model is tested using path analysis. The results show that, in addition to a direct effect, customer perceived ethicality has a positive and indirect effect on customer loyalty, through the mediators of customer affective commitment and customer perceived quality. Further, employee empathy positively influences the impact of customer perceived ethicality on customer affective commitment, and customer loyalty positively impacts customer positive word-of-mouth. The first implication of these results is that corporate brand strategy needs to be aligned with human resources policies and practices if brands want to turn ethical strategies into employee behavior. Second, corporate brands should build more authentic communications grounded in their ethical beliefs and supported by evidence from actual employees. (shrink)

Ethical consumerism has been dramatically increasing in recent decades, but in service sector, fewer research has been conducted especially in the fast-food industry. In this paper, we determined empirically the consumer perceived ethicality effects on repurchase intentions as well as on word of mouth through brand image partial mediation and customer expertise moderation in fast-food sector. The data were collected from 307 consumers of the fast-food restaurants through self-administered questionnaires. Common method variance and social desirability bias were measured before (...) testing hypotheses, and the data were investigated by SPSS and AMOS 21st version. The empirical results demonstrated that consumer perceived ethicality effects on repurchase intentions directly and through brand image partial mediation indirectly. Moreover, the direct and positive effects of repurchase intentions on word of mouth were experienced. This study generalized the results of previous studies of consumer perceived ethicality conducted in western culture in Pakistani fast-food sector. This study also proposed that firms should tackle ethical concerns at corporate and operational strategy levels to improve consumers’ behavioral intentions. (shrink)

Although the advising literature has emphasized the importance of good academic advising, there has been little emphasis on ethical issues. NACADA: The Global Community for Academic Advising provides Core Values to guide ethical behavior. This study used an experimental design to examine perspectives of ethical behavior among faculty, staff, and students. All groups could differentiate between ethical and unethical extremes, but students had difficulty differentiating between ethical and neutral behavior. All groups hesitated to rate advisors as highly ethical or unethical. (...) Even when behavior was seen as less ethical, students and faculty/staff perceived limited opportunity for students to do something about that behavior, such as change advisors. Suggestions are offered to increase the likelihood of more ethical behavior within advisement. (shrink)

The recent rise in ethical consumerism has seen increasing numbers of corporate brands project a socially responsible and ethical image. But does having a corporate brand that is perceived to be ethical have any influence on outcome variables of interest for its product brands? This study analyzes the relationship between perceived ethicality at a corporate level, and brand trust, brand affect and brand loyalty at a product level. A theoretical framework with hypothesized relationships is developed and tested in order (...) to answer the research question. Data have been collected for 45 product categories in the fast moving consumer goods sector using a panel of 4,027 Spanish consumers. The proposed relationships are tested using structural equations modeling. The results suggest there is a positive relationship between perceived ethicality of a brand and both brand trust and brand affect. Brand affect also positively influences brand trust. Further, brand trust and brand affect both show a positive relation with brand loyalty. The managerial and academic implications of the results are discussed. (shrink)

Depositors have perceived banks as acting unethically during the most recent recession. One area of consternation is the ambiguity of the legal obligations entailed by the deposit contract when it is backed with only fractional reserves. In this article, we apply an existing analysis of the legitimacy and ethicality of banking practices to a wider range of financial transactions, including insurance policies, securities lending, perpetual bonds, and callable loans. Securities lending in particular creates rights violations analogous to those in (...) fractional-reserve banking. Both callable loans and perpetual bonds have clear legal obligations which are not inherently problematic, though we herein clarify what these obligations are. Finally, we apply our ethical framework to demonstrate that insurance products are distinct from banking deposit contracts, and that perceived parallels between the two products underestimate these differences. (shrink)

This article investigates the use of favors by managers of BRIC firms to accomplish business goals, the ethicality of which should be determined by the moral reasoning in these countries rather than from a developed country perspective. We define a favor as an exchange of outcomes between individuals, typically utilizing one's connections, that is based on a commonly understood cultural tradition, with reciprocity by the receiver typically not being immediate, and its value being less than what would constitute bribery (...) within that cultural context. This exchange normally takes place between and among members of networks, and may involve a network outsider contacted by a network insider on behalf of another insider. We see the giver and receiver of the favor, as well as network insiders and outsiders, as stakeholders. Additionally, society could also be considered to be a stakeholder since the practice of using favors generally inhibits the development of legitimate, strong formal institutions, since the use of favors in emerging economies is rooted in cultural traditions that we view as informal institutions. Furthermore, we assert that the practice of using favors can lead to bribery which harms society as a stakeholder both morally and economically. We posit that BRIC-country managers' behaviors stem from informal, culturally based practices—jeito in Brazil, blat/sviazi in Russia, jaan-pehchaan in India, and guanxi in China. We utilize institutional theory to explain why favors are relied upon, and ISCT to support the argument that the use of favors in environments like the BRICs is generally considered ethical. (shrink)

In our first study, undergraduate students (30 men, 30 women) evaluated the ethical acceptability of two previously published studies that used guided imagery in rape situations. In one, women imagined themselves as rape victims; in the other, men imagined themselves as rapist. Most students rated the research acceptable, but there was a significant interaction (g < .05): Women found the study of women as victim less ethical, and men found the study of men as rapist less ethical. In our second (...) study, 30 noncollege women evaluated the research on women as rape victims. After reading the scenario, none of these women said they would have agreed to participate or thought the research was ethically acceptable. We discuss issues of informed consent, demands of the research situation, and potential benefits and risks. (shrink)

Aggregative consequentialism and several other popular moral theories are threatened with paralysis: when coupled with some plausible assumptions, they seem to imply that it is always ethically indifferent what you do. Modern cosmology teaches that the world might well contain an infinite number of happy and sad people and other candidate value-bearing locations. Aggregative ethics implies that such a world contains an infinite amount of positive value and an infinite amount of negative value. You can affect only a finite amount (...) of good or bad. In standard cardinal arithmetic, an infinite quantity is unchanged by the addition or subtraction of any finite quantity. So it appears you cannot change the value of the world. Modifications of aggregationism aimed at resolving the paralysis are only partially effective and cause severe side effects, including problems of “fanaticism”, “distortion”, and erosion of the intuitions that originally motivated the theory. Is the infinitarian challenge fatal? (shrink)

Firms increasingly deploy algorithmic pricing approaches to determine what to charge for their goods and services. Algorithmic pricing can discriminate prices both dynamically over time and personally depending on individual consumer information. Although legal, the ethicality of such approaches needs to be examined as often they trigger moral concerns and sometimes outrage. In this research paper, we provide an overview and discussion of the ethical challenges germane to algorithmic pricing. As a basis for our discussion, we perform a systematic (...) interpretative review of 315 related articles on dynamic and personalized pricing as well as pricing algorithms in general. We then use this review to define the term algorithmic pricing and map its key elements at the micro-, meso-, and macro levels from a business and marketing ethics perspective. Thus, we can identify morally ambivalent topics that call for deeper exploration by future research. (shrink)

This book is a comprehensive and unique text and reference in medical ethics. By far the most inclusive set of primary documents and articles in the field ever published, it contains over 100 selections. Virtually all pieces appear in their entirety, and a significant number would be difficult to obtain elsewhere. The volume draws upon the literature of history, medicine, philosophical and religious ethics, economics, and sociology. A wide range of topics and issues are covered, such as law and medicine, (...) truth-telling by the physician, research, population policy, genetics, abortion, dying, and individual rights in medical care. The selections span the centuries, beginning with material from the works of Hippocrates, continuing through Thomas Percival, John Stuart Mill, and Claude Bernard, down to modern commentators like Henry K. Beecher, Walsh McDermott, David L. Bazelon, Paul Freund, H. L. A. Hart, John Rawls, Paul Ramsey, Richard McCormick, Rashi Fein, and Bernard Barber. The text has eight major divisions, beginning with sections on the ethical dimensions of the physician-patient relationship in history; the moral bases of medical ethics; and regulation, compulsion, and protection of the consumer in clinical medicine and public health. Each of these sections includes key essays that appear for the first time. All of the book's major divisions contain primary documents: codes such as the Hippocratic Oath, Medieval Law for the Regulation of Medicine, and the first as well as the most recent code of the American Medical Association; court decisions, including those on Karen Quinlan and on abortion in the United States and West Germany; government documents such as the statement of the National Commission on the Protection of Human Subjects, the Tuskegee Syphilis Report, the British Parliamentary debate on euthanasia, and the Council of Europe on rights of the sick and dying; and various published guidelines such as the Harvard Medical School brain death criteria, the American Hospital Association on patient's rights, and Pope Pius XII on the prolongation of life. Cases that illustrate moral dilemmas are provided for discussion purposes. Each section is preceded by a succinct editor's introduction. The documents and essays are of practical value for practitioners and students in medicine, law, ethics, and counselling, and for individual patients and groups concerned with medical care. Through encompassing divergent viewpoints, the essays and primary documents were selected to encourage humane practices and deepen understanding of the multiple traditions that shaped and do shape the development of medicine. (shrink)

This paper discusses confidentiality as a routine issue of concern to British general practitioners participating in a qualitative study as well as in contemporaneous practice literature. While keen to reflect on routine issues, such as confidentiality, participants who professed a lack of expertise in medical ethics also perceived reluctance or inability to access educational resources or ethics support. Such lack of ability might include a perception of non-entitlement to access advice and support, a fear of criticism, or simply that resources (...) fail to be advertised. Participants' insights are set alongside a concurrent debate in the professional literature over whether problems with maintaining confidentiality should be rigorously discussed in a public forum. A preliminary suggestion is that confidentiality may be emblematic of the negotiation between academic and professional ethics. (shrink)

Business ethics is the continuing process of re-defining the goals and rules of business activity. In times of rapid change, spurred equally by technological innovation within the business community and by societal expectations in the larger community, participants who share in that process of re-defining goals and rules should be sensitive to professional differences. Lawyers and executives, for instance, while seeking a common societal good, will utilize measurably different goals and methods based on differences in leadership style, accountability to constituents (...) and client relationship generally. Because of these differences, definitions of what is ethical will vary as well, spread across a spectrum of ethicality. (shrink)

Scholars have suggested that the tendency for an individual to perceive him- or herself as more ethical than others might influence the individual''s perceptions of his or her organization''s ethics. The purpose of this study is to consider if and/or when such a relationship exists. A thorough consideration of the nature of perceptions of relative ethicality suggests that a positive self-bias would negatively influence perceptions of organizational ethicality. The results of an empirical study involving working managers and employees (...) of a hospital support that argument. Furthermore, the results indicate that organizational identification, perceived organizational cohesion, and an individual''s insulation also influence individual perceptions of relative organizational ethicality. The findings illuminate this particular phenomenon and further our understanding of the relationship between the individual and the organization, more generally. (shrink)

Professional attire has traditionally been regarded as a sign of ethicality. However, recent trends towards a more casual workplace may have altered the general public’s attire-based perceptions. To determine whether these trends have rendered the association between professional attire and ethicality obsolete, we draw on signaling theory and we examine, in two laboratory studies with working samples, the main effects of attire style (i.e., business formal, business casual, casual) on perceptions of employee ethicality. We also assess the (...) mediating effects of attire appropriateness, the moderating effects of context (industry type), as well as their combined moderated-mediation effects in the relation between attire style and the outcome of interest. We find that casual attire is perceived as less ethical than business casual attire in both studies but is perceived as less ethical than business formal attire in the first study only. Moreover, the effect of attire style on perceptions of ethicality is mediated by perceptions of attire appropriateness. Lastly, we found inconclusive results for the moderated-mediation model, which suggest a more intricate effect of industry type than originally proposed. Three subsequent focus groups with working professionals provided additional insights into our findings and revealed workplace-relevant outcomes associated with perceptions of ethicality. Theoretical and practical implications, study limitations, and future research avenues are discussed. (shrink)

This study offers gamers’ insights to a worldwide popular loot-box game that is widely associated with gambling: FIFA. Through an ethical lens, this study looks at how gamers perceive loot-box promotions, their enduring attitudes toward the game, as well as the role of gaming addictions. A mixed-method study revealed that while gamers found loot boxes and promotions ethically questionable, gaming addiction is positively correlated with perceived ad ethicality, suggesting coping and possible cognitive dissonance.

For decades a debate has played out in the literature about who bioethicists are, what they do, whether they can be considered professionals qua bioethicists, and, if so, what professional responsibilities they are called to uphold. Health care ethics consultants are bioethicists who work in health care settings. They have been seeking guidance documents that speak to their special relationships/duties toward those they serve. By approving a Code of Ethics and Professional Responsibilities for Health Care Ethics Consultants, the American Society (...) for Bioethics and Humanities (ASBH) has moved the professionalization debate forward in a significant way. This first code of ethics focuses on individuals who provide health care ethics consultation (HCEC) in clinical settings. The evolution of the code's development, implications for the field of HCEC and bioethics, and considerations for future directions are presented here. (shrink)

A textbook designed for the mandatory semester ethics course at the United States Naval Academy by USNA Ethics Section, with contributions by the Distinguished Chair in Ethics.

It was proposed that ethical evaluation of insurance claim padding behavior would be affected by characteristics of the policyholder, insurance agent, and company. These three factors were manipulated in written scenarios and the premise was tested in a factorial experimental design. No significant support was found for an effect of any of the three factors on ethical perceptions of claim padding. However, females found claims padding to be significantly less ethical than males. Given a claim scenario where the actual loss (...) was $500 and the claimed amount was $3000, subjects awarded an average of $986.91 on the claim. Many respondents were willing to compensate victims for intangible losses as well as tangible losses. (shrink)

The development of effective means to enhance research integrity by universities requires baseline measures of individual, programmatic, and institutional factors known to contribute to ethical decision making and behavior. In the present study, master’s thesis and Ph.D. students in the fields of biological, health and social sciences at a research extensive university completed a field appropriate measure of research ethical decision making and rated the seriousness of the research issue and importance for implementing the selection response. In addition they were (...) asked to rate their perceptions of the institutional and departmental research climate and to complete a measure of utilitarian and formalistic predisposition. Female students were found to be more ethical in their decision making compared to male students. The research ethical decision measure was found to be related to participants’ ethical predisposition and overall perception of organizational and departmental research climate; however, formalism was the only individual predictor to reach statistical significance and none of the individual subscales of the research climate measure were significantly correlated to ethicality. Participants’ ratings of the seriousness of the issue were correlated with their ratings of the importance of carrying out their selected response but neither was significantly predictive of the ethicality of their responses. The implications of these findings for the development of more effective training programs and environments for graduate students in research ethics and integrity are discussed. (shrink)

Drawing from a multi-sourced data corpus gathered from high-net-worth social media influencers, this article explores how these individuals reconcile ethicality and living a luxury lifestyle through the enactment of three types of personas on Instagram: Ambassador of ‘True’ Luxury, Altruist, and ‘Good’ Role Model. By applying the concepts of taste regimes and social moral licensing, we find that HNW social media influencers conspicuously enact and display ethicality, thereby retaining legitimacy in the field of luxury consumption. As these individuals (...) are highly influential, they could leave a potentially significant mark on public discourse and, consequently, on their audiences’ construction of ethically responsible luxury consumption. In this vein, this article offers significant managerial insights into professional influencers and discusses ethical managerial practices to ensure ethical collaborations between influencers and managers. (shrink)

While support for corporate political activity (CPA) is well echoed in the literature, little has been done to empirically examine its ethicality. Moreover, existing ethical CPA frameworks assume normative and rational leanings that are insufficient to provide a comprehensive account of CPA ethicality. Utilizing the Ghanaian context, adopting a multiple case study design involving 28 Directors from 22 firms, and employing a grounded theory approach, I explore how the ethicality of CPA is determined in weak institutional environments. (...) The findings reveal that business executives evaluate ethics at three levels (i.e. context, organizational and strategy) using three principles (i.e. utilitarianism, justice and institutions). Leveraging this knowledge, I present an eclectic framework that bridges the long-standing gap between normative ethical prescriptions and lived ethical realities. In doing so, I move away from abstraction to give “voice” to the actors involved in CPA. I also present a model that shows how the ethical judgement process is influenced by managerial intuition and interactive personal and organizational experiences. This article has important theoretical and practical implications for ethical business-government relations in developing countries. (shrink)

In the current socioeconomic environment, brands increasingly need to portray societal and ethical commitments at a corporate level, in order to remain competitive and improve their reputation. However, studies that relate business ethics to corporate brands are either purely conceptual or have been empirically conducted in relation to the field of products/goods. This is surprising because corporate brands are even more relevant in the services sector, due to the different nature of services, and the subsequent need to provide a consistent (...) high-quality customer experience across all the brand–customer interactions and touch-points. Thus, the purpose of this article is to study, at a corporate brand level and in the field of services, the effect of customer perceived ethicality of a brand on brand equity. The model is tested by structural equations, using data collected for eight service categories by means of a panel composed of 2179 customers. The test of measurement equivalence between these categories is conducted using generalizability theory. Confirmatory factor analysis marker technique is applied in order to check for common method variance. The results of the hypothesized model indicate that customer perceived ethicality has a positive, indirect impact on brand equity, through the mediators of brand affect and perceived quality. However, there is no empirical evidence for a direct effect of customer perceived ethicality on brand equity. (shrink)

Name der Zeitschrift: Jahrbuch für Wissenschaft und Ethik Jahrgang: 20 Heft: 1 Seiten: 293-302.

We investigated the ethical behavior of Turkish university students to compare the difference in ethical behavior between business students and non-business students, examine the impact of key contingency variables on how they make decisions when confronted with an ethical dilemma, and investigate the process underlying the ethical behavior of Turkish students. Data were collected from business students at a major private university in Western Turkey. The results indicate that a Turkish student’s peers, marital status, and education level exert a significant (...) effect on their ethical behavior. Further, business students specifically differed from non-business students in their enhanced use of egoism when confronted with an ethical dilemma. The results of this research may have important educational policy implications for business ethics in Turkey. (shrink)

In order to be competitive in an era of ethical consumerism, brands are facing an ever-increasing pressure to integrate ethical values into their identities and to display their ethical commitment at a corporate level. Nevertheless, studies that relate business ethics to corporate brands are either theoretical or have predominantly been developed empirically in goods contexts. This is surprising, because corporate brands are more relevant in services settings, given the nature of services, and the fact that services settings comprise a greater (...) number of customer–brand interactions and touch points than goods contexts. Accordingly, the purpose of this article is to empirically examine the effects of customer perceived ethicality of corporate brands that operate in the services sector. Based on data collected for eight service categories using a panel of 2179 customers, the hypothesized structural model is tested using path analysis. The generalizability theory is applied to test for measurement equivalence between these categories. The results of the hypothesized model show that, in addition to a direct impact, customer perceived ethicality has a positive and indirect impact on brand equity, through the mediators of recognition benefits and brand image. Moreover, brand heritage negatively influences the impact of customer perceived ethicality on brand image. The main implication is that managers need to be aware of the need to reinforce brand image and recognition benefits, as this can facilitate the translation of customer perceived ethicality into brand equity. (shrink)

Despite the moral gravity and far-reaching consequences of ethical judgment, evidence shows that such judgment is surprisingly malleable, prone to bias, informed by intuition and implicit associations, and swayed by mere circumstance. In this vein, this research examines how mere colors featured in logos can bias consumers’ ethical judgments about a retailer. Exposure to a logo featuring an eco-friendly color makes an ethically ambiguous practice seem more ethical; however, exposure to a logo featuring a non-eco-friendly color makes the same practice (...) seem less ethical. This effect is due to the embodied meaning of color, not referential meanings associated with the names of colors, and it is mediated by perceptions of a retailer’s eco-friendliness. Furthermore, although the word “green” appears to influence ethical ratings of retail practices more than the word “blue,” visual exposure to either color evokes similar perceptions of eco-friendliness and influences ethical judgments. Study 2c assesses and rules out alternative explanations for this effect. Critically, an eco-friendly color can skew judgments even when the practices judged are not ethically ambiguous. Individual differences in ethical sensitivity moderate the observed effect, such that individuals who are less ethically sensitive are less influenced by color. The article concludes with a discussion on how logo colors shape consumers’ perceptions of retailer ethicality. (shrink)

Research question and aimClinical Ethics Committees (CECs) aim to support healthcare professionals (HPs) and healthcare organizations to deal with the ethical issues of clinical practice. In 2020,...

Cross-national studies of business-related ethicality frequently have concluded that Americans possess higher ethical standards than non-Americans. These conclusions have generally been based on survey responses of relatively small convenience samples of individuals in a very limited number of countries. This article reports a study of the relationship between nationality and business-related ethicality based on survey responses from more than 6300 business students attending 120 colleges and universities in 36 countries. Two well-documented determinants of business ethics (gender and religiosity) (...) were investigated as moderators of the nationality–business ethicality relationship. The major research finding is that, while statistically significant differences were found between the business-related ethicality of American survey participants and the business-related ethicality of the non-American survey participants, the magnitudes of the differences were not substantial. The results of the study suggest that (i) more empirical cross-cultural/national research is required on business-related ethicality and (ii) previous explanations for cross-cultural/national differences in ethics need to be reconsidered before further generalizations are warranted. (shrink)

Incivility among employees in frontline encounters is prevalent, but little is known about its impact on customers’ ethics-related perceptions and behaviors. Drawing upon the stimulus–organism–response paradigm, this study examines how witnessing incivility among employees can serve as a social atmospheric cue to influence customers’ perceived ethicality of an organization and their subsequent behaviors. According to our results, in response to employee-to-employee incivility witnessed during frontline encounters, customers perceive the uncivil employees’ organization to have a lower level of ethicality. (...) In turn, customers engage more in unethical behavior and less in customer citizenship behavior. We further demonstrate that the negative effect of uncivil employee-to-employee interactions on customers’ perception of the ethicality of an organization is amplified when customers have an a priori perception that the organization is competent. The findings hold theoretical and practical implications for the management of employee-to-employee incivility and unethical customer behavior during frontline encounters. (shrink)

We examine three assumptions commonly held in the corporate reputation literature: (1) reputation ratings of owners and investors are generally representative of all stakeholders; (2) stakeholders will generally provide a higher reputation rating to firms that emphasize corporate social responsibility versus firms that do not; and (3) profitability is the primary criterion of importance to all stakeholders when rating a firm's reputation. Using an exploratory in‐class exercise, our findings suggest that: (1) there are significant differences among stakeholder groups in their (...) reputation ratings; (2) firms that emphasize corporate social responsibility are not rated more highly across all stakeholder groups; and (3) for all stakeholder groups, the ethicality criterion explained more of the variance in firms' reputation ratings than the profitability criterion. (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)

Ethical leadership encompasses the personal conduct of the leader and the leader’s expectations that followers behave ethically. Building on social learning and social exchange theory, we propose that ethical leadership interacts with coworker ethicality to predict personnel’s ethical intentions and organizational citizenship behavior. Using data collected from a large organizational sample, we use moderated regression analysis to test the main and interactive effects of ethical leadership and coworker ethicality on ethical intentions and OCB as it relates to conscientiousness, (...) civic virtue, and altruism. Study 1 examines how ethical leadership and coworker ethicality interact to predict ethical intentions using a sample of 1,551 military personnel. Study 2 extends the results of Study 1 by examining how ethical leadership and coworker ethicality interact to predict OCB using a combined sample of 3,363 military and civilian personnel. Consistent with social learning theory, we found positive relationships between ethical leadership and coworker ethicality with ethical outcomes. Consistent with social exchange theory, we found that perceptions of ethical leadership strengthened the relationship between coworker ethicality and ethical intentions and OCB, highlighting the importance of leaders in shaping the behavior of organizational members. (shrink)