In business ethics, there is a large body of literature focusing on the conditions, factors, and influences in the ethical decision-making processes. This work builds upon the past critical reviews by updating and extending the literature review found in Craft’s :221–259, 2013) study, extending her literature review to include a total of 141 articles. Since past reviews have focused on categorizing results based upon various independent variables, we instead synthesize and look at the trends of these based upon the four (...) ethical decision making categories: Awareness, Behavior, Judgment, and Intention. We focus on the moderation and mediation effects found within these studies and provide an in-depth analysis of future trends. Furthermore, we also highlight key statistical and methodological concerns, outline overarching trends, and directions of future research in empirical ethical decision making. (shrink)

This article answers several calls—coming as well from corporate governance practitioners as from corporate governance researchers—concerning the possibility of complying simultaneously with requirements of innovation and ethics. Revealing the long-term orientation as the variable which permits us to link the principal goal of organization, being “survival,” with innovation and ethic, the article devises a framework for incorporating ethics into a company’s processes and strategies for innovation. With the principal goal of organizations being “survival” in the long-term, it is assumed that (...) innovation is necessary in order to realize a going concern. Firms that do not innovate and adapt to rapidly changing business environments are less likely to be sustainable. Thus, it is in a business’ best interests to adopt an innovation process for long-term success. We posit that there are two simultaneous sources of innovation and change that are unavoidable and embedded in the corporate landscape. First, we argue for genetically embedded, Darwinian explanations for adaptations that enable an entity’s survival. This view is combined with more conventional, social science explanations for change. Our new, comprehensive model of the governance of innovation processes hinges on the one hand on an organization’s long-term orientation, which we argue, is not possible without a consideration of an ethical dimension. On the other hand, the model employs, for the first time, the concept of duality, in order to make the positive coexistence of innovation and ethic analytically visible. Guided by this concept the roots of the ethic within innovation are traced from both natural science forces for change, and cultural pressures operating on members of an organization. We present our Integrated Causal Model of Innovation and propose theoretical relationships that will generate numerous avenues for future research in the field, and help managers to reorient their governance strategies. (shrink)

This article answers several calls—coming as well from corporate governance practitioners as from corporate governance researchers—concerning the possibility of complying simultaneously with requirements of innovation and ethics. Revealing the long-term orientation as the variable which permits us to link the principal goal of organization, being “survival,” with innovation and ethic, the article devises a framework for incorporating ethics into a company’s processes and strategies for innovation. With the principal goal of organizations being “survival” in the long-term, it is assumed that (...) innovation is necessary in order to realize a going concern. Firms that do not innovate and adapt to rapidly changing business environments are less likely to be sustainable. Thus, it is in a business’ best interests to adopt an innovation process for long-term success. We posit that there are two simultaneous sources of innovation and change that are unavoidable and embedded in the corporate landscape. First, we argue for genetically embedded, Darwinian explanations for adaptations that enable an entity’s survival. This view is combined with more conventional, social science explanations for change. Our new, comprehensive model of the governance of innovation processes hinges on the one hand on an organization’s long-term orientation, which we argue, is not possible without a consideration of an ethical dimension. On the other hand, the model employs, for the first time, the concept of duality, in order to make the positive coexistence of innovation and ethic analytically visible. Guided by this concept the roots of the ethic within innovation are traced from both natural science forces for change, and cultural pressures operating on members of an organization. We present our Integrated Causal Model of Innovation and propose theoretical relationships that will generate numerous avenues for future research in the field, and help managers to reorient their governance strategies. (shrink)

Researchers have suggested that ethical judgments about “right” and “wrong” are the result of deep and thoughtful principles and should therefore be consistent and not influenced by factors, such as language :e94842, 2014b, p. 1). As long as an ethical scenario is understood, individuals’ resolution should not depend on whether the ethical scenario is presented in their native language or in a foreign language. Given the forces of globalization and international convergence, an increasing number of accountants and accounting students are (...) becoming proficient in more than one language, and they are required to interpret and apply complex ethical pronouncements issued by various global standard setters both in their native language and in English. There have been calls in the literature to examine whether subjects make systematically different ethical judgments in a foreign language than in their native language. We contribute to the literature by drawing on culture, linguistics, and psychology research to provide empirical evidence that Chinese subjects are more aggressive in interpreting the concept of control when providing their consolidation reporting recommendations in English than in Simplified Chinese. We applied a 2 × 2 within-subject and between-subject randomized experimental design using a sample of Chinese final year undergraduate accounting students at a leading Chinese university, where accounting courses are taught in both Simplified Chinese and English. Students in our study are proxy for entry-level accounting practitioners. Our findings have implications for the globalized business world and cross-cultural research by challenging the commonly held assumption that an individual’s ethical judgment is consistent in different languages. We suggest that systematically different ethical judgments in native and foreign languages needs to be recognized. (shrink)

Although work tasks often address substantive social issues, the effects of issue characteristics on task motivation are little understood. This study explores this topic by examining how the moral characteristics of an issue (moral intensity) affect motivation in tasks intended to address the issue (task motivation). Adopting the lens of work design theory, I hypothesize that moral intensity increases task motivation through the mediation of perceived task impacts on the community (perceived community impacts), and that this effect will occur after (...) controlling for the effects of perceived task impact on the worker and their organization. In two studies in the context of volunteering I find that, rather than acting in parallel with other task impacts, the effect of moral intensity through perceived community impacts is fully mediated by perceived organization and self impacts in a three-stage mediation. These findings demonstrate the potential relevance of issue characteristics such as moral intensity to work design theory and shed new light on the psychological mechanisms through which perceived prosocial impacts promote task motivation. I discuss implications for research and practice. (shrink)

This article provides a conceptual framework for studying the influence of mood on managerial ethical decision making. We draw on mood-congruency theory and the affect infusion model to propose that mood influences managerial ethical decision making through deliberate and conscious assessments of the moral intensity of an ethical issue. By accounting for proscriptive and prescriptive morality—i.e., harmful and prosocial behavior, respectively—we demonstrate that positive and negative mood may have asymmetrical and paradoxical effects on ethical decision making. Specifically, our analysis suggests (...) that individuals in a positive mood will be more likely to engage in prosocial behavior but less likely to refrain from activities that have harmful consequences for others, whereas individuals in a negative mood will be more likely to avoid activities that put others at risk or harm but at the same time less prone to engaging in activities that have positive consequences for others. Importantly, we account for the context within which managers make their decisions by examining how situational strength may moderate the influence of mood on managerial ethical decision making. Finally, we discuss how organizations can leverage the double-edged sword effect of mood on ethical decision making and prevent, control and manage the risk of unethical decision making on the part of managers. (shrink)

By synthesizing the argumentation theory of new rhetoric with research on heuristics and motivated reasoning, we develop a conceptual view of argumentation based on reasoning motivations that sheds new light on the morality of decision-making. Accordingly, we propose that reasoning in eristic argumentation is motivated by psychological (e.g., anxiety reduction) or material (e.g., vested interests) gains that do not depend on resolving the problem in question truthfully. Contrary to heuristic argumentation, in which disputants genuinely argue to reach a practically rational (...) solution, eristic argumentation aims to defeat the counterparty rather than seeking a reasonable solution. Eristic argumentation is susceptible to arbitrariness and power abuses; therefore, it is inappropriate for making moral judgments with the exception of judgments concerning moral taboos, which are closed to argumentation by their nature. Eristic argumentation is also problematic for strategic and entrepreneurial decision-making because it impedes the search for the right heuristic under uncertainty as an ecologically rational choice. However, our theoretical view emphasizes that under extreme uncertainty, where heuristic solutions are as fallible as any guesses, pretense reasoning by eristic argumentation may be instrumental for its adaptive benefits. Expanding the concept of eristic argumentation based on reasoning motivations opens a new path for studying the psychology of reasoning in connection to morality and decision-making under uncertainty. We discuss the implications of our theoretical view to relevant research streams, including ethical, strategic and entrepreneurial decision-making. (shrink)

After the USSR collapsed, the Russian economy underwent serious changes from being plan-based to a market economy. These changes, together with political instability, created a business environment where no attention was paid to ethics. Russian managers have little experience operating in a market economy, which created many misunderstandings with foreign partners, especially regarding ethical issues of doing business. This study examined the factors influencing the ethical judgments of Russian employees to understand how they perceive ethical issues and make ethical or (...) unethical decisions at work. The Ferrell and Gresham framework was employed in this study to understand the process of making ethical decision by an individual. Transparency was proposed as a moderator of the relationship between opportunity factors and employees’ ethical judgments. Findings of this study show that Russian employees tend to be more tolerant towards ethically questionable behaviors at a workplace. Moreover, the results also demonstrate that transparency moderates the influence of opportunity to behave unethically on ethical judgments. (shrink)

What is the impact of mission on ethical business culture? This question was analyzed through a qualitative case study of a large nonprofit organization in the human services industry with a solid history of ethical business practices and consistent use of a values-based decision-making model. This research explored ethical decision making, ethical business culture, and congruence between enacted and espoused institutional values. Institutional values were identified, and the following pair of research questions was examined: To what extent were incongruent values (...) found between espoused and enacted values? To what extent did incongruent values impact the ethical business culture? Incongruent enacted values were present in the culture, but negative impact was diminished by a larger number of congruent enacted values. Additional findings revealed that an intense commitment to the mission by all employees was the common thread that wound throughout the organization’s ethical business culture and essentially abrogated the undesirable effects of incongruent and negative values. (shrink)

This review summarizes the research on ethical decision-making from 2004 to 2011. Eighty-four articles were published during this period, resulting in 357 findings. Individual findings are categorized by their application to individual variables, organizational variables, or the concept of moral intensity as developed by Jones :366–395, 1991). Rest’s four-step model for ethical decision-making is used to summarize findings by dependent variable—awareness, intent, judgment, and behavior. A discussion of findings in each category is provided in order to uncover trends in the (...) ethical decision-making literature. A summary of areas of suggested future research is provided. (shrink)

The Protestant Work Ethic is a powerful force in Western culture with far reaching effects on our values and judgments. While research on PWE as a cultural value is abundant in diverse disciplines, little research has explored how this cultural value facilitates the use of heuristics when evaluating the morality of others. Using both PWE and illusory correlation as foundations, this paper explores whether people attribute positive moral characteristics to others merely based upon a description as hardworking. Three experiments suggest (...) merely being described as hardworking leads to perceptions of greater honesty, a more careful and detailed approach to one’s work, accompanied by a lesser likelihood of engaging in cheating behavior and a greater likelihood of accountability. These results have implications regarding the detection of deviant/fraudulent behavior. (shrink)