Machine generated contents note: Part I: Introduction to Business Ethics. -- Chapter 1: Overview of Business Ethics and This Book. -- Part II: Business Ethics and the Individual. -- Chapter 2: Deciding What's Right - A Prescriptive Approach. -- Chapter 3: Common Ethical Problems. -- Chapter 4: Deciding What's Right - A Psychological Approach. -- Chapter 5: Finding Your Moral Voice. -- Part III: Business Ethics and the Organization. -- Chapter 6: Ethics as Organizational Culture. -- Chapter 7: Managing Ethics (...) and Legal Compliance. -- Chapter 8: Managing for Ethical Conduct. -- Chapter 9: Ethical Problems of Managers. -- Part IV: The Organization and Its Environment. -- Chapter 10: Corporate Social Responsibility. -- Chapter 11: Ethical Problems of Organizations. -- Chapter 12: Managing for Ethical Conduct in a Global Business Environment. (shrink)

This field survey focused on two constructs that have been developed to represent the ethical context in organizations: ethical climate and ethical culture. We first examined issues of convergence and divergence between these constructs through factor analysis andcorrelational analysis. Results suggested that the two constructs are measuring somewhat different, but strongly related dimensions ofthe ethical context. We then investigated the relationships between the emergent ethical context factors and an ethics-related attitude and behavior for respondents who work in organizations with and (...) withoutethics codes. Regression results indicated that an ethical culture-based dimension was more strongly associated with observedunethical conduct in code organizations while climate-based dimensions were more strongly associated with observed unethical conduct in non-code organizations. Ethical culture and ethical climate-based factors influenced organizational commitment similarly in both types of organizations. Normative implications of the study are discussed, as are implications for future theorizing, research and management practice. (shrink)

This article reviews 1 decade of research on cheating in academic institutions. This research demonstrates that cheating is prevalent and that some forms of cheating have increased dramatically in the last 30 years. This research also suggests that although both individual and contextual factors influence cheating, contextual factors, such as students' perceptions of peers' behavior, are the most powerful influence. In addition, an institution's academic integrity programs and policies, such as honor codes, can have a significant influence on students' behavior. (...) Finally, we offer suggestions for managing cheating from students' and faculty members' perspectives. (shrink)

This book broadens the range of theoretically informed empirical research on business ethics (using data from major American corporations) and addresses the underlying questions about business ethics scholarship. It culminates a decade’s work by the authors—individually, jointly, and with others. The first part of the book addresses the major theoretical questions involved in doing empirical research about normative issues. It addresses the boundaries—methodological, conceptual, and institutional—that too easily separate philosophical and social scientific approaches to business ethics and reviews various ways (...) in which those approaches can be brought close together to benefit research and practice. The second part of the book describes and explains the increasing institutionalization of formal systems designed to manage ethics in organizations. It reviews the state of the art initiatives to foster ethical business conduct and also looks at the relative roles of executives and external policies (e.g., government regulations) in creating meaningful ethical initiatives. In the third part, the focus shifts to individual ethical behavior and how organizations influence it, describing in detail some of the outcomes of organizational ethics initiatives. It also looks at successes, failures, and new prospects in the effort to identify and explain the multiple factors that influence individual ethical behavior. (shrink)

This paper reviews Kohlberg''s (1969) theory of cognitive moral development, highlighting moral reasoning research relevant to the business ethics domain. Implications for future business ethics research, higher education and training, and the management of ethical/unethical behavior are discussed.

This empirical study of Fortune 1000 firms assesses the degree to which those firms have adopted various practices associated with corporate ethics programs. The study examines the following aspects of formalized corporate ethics activity: ethics-oriented policy statements; formalization of management responsibilities for ethics; free-standing ethics offices; ethics and compliance telephone reporting/advice systems; top management and departmental involvement in ethics activities; usage of ethics training and other ethics awareness activities; investigatory functions; and evaluation of ethics program activities. Results show a high (...) degree of corporate adoption of ethics policies, but wide variability in the extent to which these policies are implemented by various supporting structures and managerial activities. In effect, the vast majority of firms have committed to the low cost, possibly symbolic side of ethics management (e.g., adoption of ethics codes and policies, etc.). But firms differ substantially in their efforts to see that those policies or codes actually are put into practice. (shrink)

Thus far, we know much more about the significant outcomes of perceived ethical leadership than we do about its antecedents. In this study, we focus on multiple types of ethical role models as antecedents of perceived ethical leadership. According to social learning theory, role models facilitate the acquisition of moral and other types of behavior. Yet, we do not know whether having had ethical role models influences follower perceptions of one’s ethical leadership and, if so, what kinds of role models (...) are important. We conducted a field study, surveying supervisors and their subordinates to examine the relationship between three types of ethical role models and ethical leadership: the leader’s childhood role models, career mentors, and top managers. We found that having had an ethical role model during the leader’s career was positively related to subordinate-rated ethical leadership. As expected, this effect was moderated by leader age, such that the relationship between career mentoring and ethical leadership was stronger for older leaders. Leader age also moderated the relationship between childhood models and ethical leadership ratings, such that having had childhood ethical role models was more strongly and positively related to ethical leadership for younger leaders. We found no effect for top management ethical role models. Implications for research and practice are discussed. (shrink)

Senior managers are important to the successful management of ethics in organizations. Therefore, their perceptions of organizational ethics are important. In this study, we propose that senior managers are likely to have a more positive perception of organizational ethics than lower level employees do largely because of their managerial role and their corresponding identification with the organization and need to protect the organization’s image as well as their own identity. Bycontrast, lower level employees are more likely to be cynical about (...) the organization’s ethics. In order to compare senior managers’ and lower level employees’ perceptions of ethics in the organization, we surveyed randomly selected senior managers and lower level employees in three firms. We found that perceptions of ethics in the organization differed predictably across levels, with senior managers’ perceptions being significantly more positive and lower level employees’ perceptions being more negative. Implications for practice and research are discussed. (shrink)

Previous research has identified multiple approaches to the design and implementation of corporate ethics programs (Paine, 1994;Weaver, Treviño, and Cochran, in press b; Treviño, Weaver, Gibson, and Toffler, in press). This field survey in a large financial servicescompany investigated the relationships of the values and compliance orientations in an ethics program to a diverse set of outcomes.Employees’ perceptions that the company ethics program is oriented toward affirming ethical values were associated with seven outcomes. Perceptions of a compliance orientation were associated (...) with four of these outcomes. The interaction of values and compliance orientations was associated with employees’ willingness to report misconduct. In general, a values orientation makes a greater unique contribution to the measured outcomes when compared to a compliance orientation. (shrink)

Previous research has identified multiple approaches to the design and implementation of corporate ethics programs. This field survey in a large financial servicescompany investigated the relationships of the values and compliance orientations in an ethics program to a diverse set of outcomes.Employees’ perceptions that the company ethics program is oriented toward affirming ethical values were associated with seven outcomes. Perceptions of a compliance orientation were associated with four of these outcomes. The interaction of values and compliance orientations was associated with (...) employees’ willingness to report misconduct. In general, a values orientation makes a greater unique contribution to the measured outcomes when compared to a compliance orientation. (shrink)

ABSTRACT:In the expanding field of ethical leadership research, little attention has been paid to the association between ethical leaders’ ethical characteristics and perceived ethical leadership, and, more importantly, the potential influence of ethical leadership on followers’ ethical characteristics. In this study, we tested a theoretical model based upon social cognitive theory to examine leaders’ moral identity and moral attentiveness as antecedents of perceived ethical leadership, and follower moral identity and moral attentiveness as outcomes of ethical leadership. Based upon data from (...) 89 leaders and 460 followers in China, collected at two points in time, we found that leaders’ moral identity and moral attentiveness are associated with follower’s perceptions of ethical leadership. Ethical leadership is, in turn, associated with their followers’ moral identity and moral attentiveness. We found furthermore that ethical leadership mediates the effect of leaders’ moral identity on followers’ moral identity, but not the effect of leaders’ moral attentiveness on followers’ moral attentiveness. We discuss the findings, theoretical contributions, practical implications, and future research. (shrink)

This paper outlines three conceptions of the relationship between normative and empirical business ethics, views we refer to as parallel, symbiotic, and integrative. Parallelism rejects efforts to link normative and empirical inquiry, for both conceptual and practical reasons. The symbiotic position supports a practical relationship in which normative and/or empirical business ethics rely on each other for guidance in setting agenda or in applying the results of their conceptually and methodologically distinct inquiries. Theoretical integration countenances a deeper merging of prima (...) facie distinct forms of inquiry, involving alterations or combinations of theory, metatheoretical assumptions, and methodology. This paper explicates these positions, summarizes arguments for and against each, and considers their implications for the future of business ethics research. (shrink)

This paper delineates the normative and empirical approaches to business ethics based upon five categories: 1) academic horne; 2) language; 3) underlying assumptions; 4) theory purpose and scope; 5) theory grounds and evaluation criteria. The goal of the discussion is to increase understanding of the distinctive contributions of each approach and to encourage further dialogue about the potential for integration of the field.

Abstract: In this study, we test the interactive effect on ethical decision-making of (1) personal characteristics, and (2) personal expectancies based on perceptions of organizational rewards and punishments. Personal characteristics studied were cognitive moral development and belief in a just world. Using an in-basket simulation, we found that exposure to reward system information influenced managers’ outcome expectancies. Further, outcome expectancies and belief in a just world interacted with managers’ cognitive moral development to influence managers’ ethical decision-making. In particular, low-cognitive moral (...) development managers who expected that their organization condoned unethical behavior made less ethical decisions while high cognitive moral development managers became more ethical in this environment. Low cognitive moral development managers also behaved less ethically when their belief in a just world was high. (shrink)

Self-interest has long been recognized as a powerful human motive. Yet, much remains to be understood about the thinking behind self-interested pursuits. Drawing from multiple literatures, we propose that situations high in opportunity for self-interested gain trigger a type of moral cognition called moral disengagement that allows the individual to more easily disengage internalized moral standards. We also theorize two countervailing forces—situational harm to others and dispositional conscientiousness—that may weaken the effects of personal gain on morally disengaged reasoning. We test (...) our hypotheses in two studies using qualitative and quantitative data and complementary research methods and design. We demonstrate that when personal gain incentives are relatively moderate, reminders of harm to others can reduce the likelihood that employees will morally disengage. Furthermore, when strong personal gain incentives are present in a situation, highly conscientious individuals are less apt than their counterparts to engage in morally disengaged reasoning. (shrink)

Recent allegations of unethical decision-making by leaders in prominent business organizations have jeopardized the world’s confidence in American business. The purpose of this research was to develop a measure of managerial moral judgment that can be used in future research and managerial assessment. The measure was patterned after the Defining Issues Test, a widely used general measure of moral judgment. With content validity as the goal, we aimed to sample the domain of managerial ethical situations by establishing links to dimensions (...) of managerial performance, as well as to the types of organizational justice issues managers encounter. Proposed scenarios were evaluated for realism by ethics officers and human resource managers. Results indicated that the new measure is reliable and correlates with a number of relevant variables in the hypothesized manner, demonstrating evidence of construct validity. Implications for future research and for human resources management are discussed. (shrink)

This field survey in a fast food restaurant setting tested the hypothesized influences of two social context variables (role responsibility and interests of group members) and justice evaluations (distributive, procedural, and retributive) on respondents' inclination to report theft and their theft reporting behavior. The results provided mixed support for the hypotheses. Inclination to report a peer for theft was associated with role responsibility, the interests of group members, and procedural justice perceptions. Actual reporting behavior was associated with the inclination to (...) report and with retributive justice evaluations. Implications for future research and for management are discussed. (shrink)

Recent allegations of unethical decision-making by leaders in prominent business organizations have jeopardized the world's confidence in American business. The purpose of this research was to develop a measure of managerial moral judgment that can be used in future research and managerial assessment. The measure was patterned after the Defining Issues Test, a widely used general measure of moral judgment. With content validity as the goal, we aimed to sample the domain of managerial ethical situations by establishing links to dimensions (...) of managerial performance, as well as to the types of organizational justice issues managers encounter. Proposed scenarios were evaluated for realism by ethics officers and human resource managers. Results indicated that the new measure is reliable and correlates with a number of relevant variables in the hypothesized manner, demonstrating evidence of construct validity. Implications for future research and for human resources management are discussed. (shrink)

Business Ethics: A European Review, EarlyView.

We propose extending business ethics education beyond the formal curriculum to the hidden curriculum where messages about ethics and values are implicitly sent and received. In this meta-learning approach, students learn by becoming active participants in an honorable business school community where real ethical issues are openly discussed and acted upon. When combined with formal ethics instruction, this meta-learning approach provides a framework for a proposed comprehensive program of business ethics education.

The social scientific study of ethical-unethical behavior in work organizations is in an early stage of development. This paper discusses some of the problems of conducting social scientific research in this area and explores the potential contribution of experimental research approaches. Both laboratory and field experimentation allow the investigator to test theory-based hypotheses and to study causal relations. Examples are provided of investigations that have applied these methods to the study of business ethics.

Senior managers are important to the successful management of ethics in organizations. Therefore, their perceptions of organizational ethics are important. In this study, we propose that senior managers are likely to have a more positive perception of organizational ethics than lower level employees do largely because of their managerial role and their corresponding identification with the organization and need to protect the organization’s image as well as their own identity. Bycontrast, lower level employees are more likely to be cynical about (...) the organization’s ethics. In order to compare senior managers’ and lower level employees’ perceptions of ethics in the organization, we surveyed randomly selected senior managers and lower level employees in three firms. We found that perceptions of ethics in the organization differed predictably across levels, with senior managers’ perceptions being significantly more positive and lower level employees’ perceptions being more negative. Implications for practice and research are discussed. (shrink)

In this study, we test the interactive effect on ethical decision-making of personal characteristics, and personal expectanciesbased on perceptions of organizational rewards and punishments. Personal characteristics studied were cognitive moral developmentand belief in a just world. Using an in-basket simulation, we found that exposure to reward system information influenced managers’ outcome expectancies. Further, outcome expectancies and belief in a just world interacted with managers’ cognitive moral development to influence managers’ ethical decision-making. In particular, low-cognitive moral development managers who expected that (...) their organization condoned unethical behavior made less ethical decisions while high cognitive moral development managers became more ethical in this environment. Low cognitive moral development managers also behaved less ethically when their belief in a just world was high. (shrink)