Business Ethics: A European Review, EarlyView.

The present study uses cross‐cultural samples of marketing practitioners from two European Union (EU) nations (the United Kingdom and Spain) and China to examine the relationships between moral intensity, personal moral philosophies and ethical decision making. Additionally, cross‐cultural comparisons were made regarding intentions, personal moral philosophies and moral intensity. Results indicate that both samples tend to use the perceived harm construct (e.g. magnitude of consequences, probability of effect, temporal immediacy and concentration of effect) to determine intentions in situations involving ethical (...) issues. However, social consensus tends to be situation‐specific for both groups and proximity seems not to be used at all when making decisions in situations involving ethics. As for personal moral philosophies, idealism is only used by the EU sample; however, for both samples, the use of relativism depends upon the specific situation. (shrink)

The present study uses cross‐cultural samples of marketing practitioners from two European Union (EU) nations (the United Kingdom and Spain) and China to examine the relationships between moral intensity, personal moral philosophies and ethical decision making. Additionally, cross‐cultural comparisons were made regarding intentions, personal moral philosophies and moral intensity. Results indicate that both samples tend to use the perceived harm construct (e.g. magnitude of consequences, probability of effect, temporal immediacy and concentration of effect) to determine intentions in situations involving ethical (...) issues. However, social consensus tends to be situation‐specific for both groups and proximity seems not to be used at all when making decisions in situations involving ethics. As for personal moral philosophies, idealism is only used by the EU sample; however, for both samples, the use of relativism depends upon the specific situation. (shrink)

The relative importance of the Jones’ [Jones, T. M.: 1991, Academy of Management Review 16(2), 366–395] six components of moral intensity was measured using a conjoint experimental design. The most important components influencing ethical perceptions were: probability of effect, magnitude of consequences, and temporal immediacy. Contrary to previous research, overall social consensus was not an important factor. However, consumers exhibit distinctly different patterns in ethical evaluation, and for approximately 15% of respondents social consensus was the most important dimension.

We investigated the ethical decision-making processes and intentions of 151 military personnel responding to 1 of 2 ethical scenarios drawn from the deployment experiences of military commanders. For each scenario, option choice and perspective affected decision-making processes. Differences were also found between the 2 scenarios. Results add to the emerging literature concerning operational ethical conflicts and highlight the complexity and challenge that often accompanies operational ethics.

The purpose of this work is to elaborate an empirically grounded mathematical model of the magnitude of consequences component of “moral intensity” (Jones, Academy of Management Review 16 (2),366, 1991) that can be used to evaluate different ethical situations. The model is built using the analytical hierarchy process (AHP) (Saaty, The Analytic Hierarchy Process , 1980) and empirical data from the legal profession. One contribution of our work is that it illustrates how AHP can be applied in the field of (...) ethics. Following a review of the literature, we discuss the development of the model. We then illustrate how the model can be used to rank-order three well-known ethical reasoning cases in terms of the magnitude of consequences. The work concludes with implications for theory, practice, and future research. Specifically we discuss how this work extends the previous work by Collins ( Journal of Business Ethics 8 , 1, 1989) regarding the nature of harm variable. We also discuss the contribution this work makes in the development of ethical scenarios used to test hypotheses in the field of business ethics. Finally, we discuss how the model can be used for after-action review, contribute to organizational learning, train employees in ethical reasoning, and aid in the design and development of decision support systems that support ethical reasoning. (shrink)

The purpose of this work is to elaborate an empirically grounded mathematical model of the magnitude of consequences component of "moral intensity", 366, 1991) that can be used to evaluate different ethical situations. The model is built using the analytical hierarchy process and empirical data from the legal profession. One contribution of our work is that it illustrates how AHP can be applied in the field of ethics. Following a review of the literature, we discuss the development of the model. (...) We then illustrate how the model can be used to rank-order three well-known ethical reasoning cases in terms of the magnitude of consequences. The work concludes with implications for theory, practice, and future research. Specifically we discuss how this work extends the previous work by Collins regarding the nature harm variable. We also discuss the contribution this work makes in the development of ethical scenarios used to test hypotheses in the field of business ethics. Finally, we discuss how the model can be used for after-action review, contribute to organizational learning, train employees in ethical reasoning, and aid in the design and development of decision support systems that support ethical reasoning. (shrink)

ABSTRACT Self-efficacy is the assessment of one’s capacity to perform tasks. Previous research has demonstrated that self-efficacy impacts ethical behavior and attitudes but its effect on ethical cognition and perceptions has not been studied. For the present study, participants analyzed an ethical dilemma after either high or low self-efficacy was induced. Participants analyzed the dilemma using one of two cognitive problem-solving techniques versus a third, control group, and what participants wrote about the problem was content-analyzed to determine how ethical cognition (...) is impacted by self-efficacy. Additionally, perceptions of the ethical problem were examined. Results revealed that differences in self-efficacy did not lead to changes in ethical cognition, but they did lead to changes in perceptions of ethical problems. Implications of these findings are discussed. (shrink)

Interruptions are often inevitable and occur many times in daily life (Ratwani & Trafton, 2010). Interruptions at work can disrupt progress on tasks and result in costly mistakes (Brumby, Cox, Back...

Researchers have considered individual and organizational factors of ethical decision making. However, they have little interest in situational factors :101–125, 2013) which is surprising given the many situations sales persons face. We address this issue using two pilot qualitative studies successively and a 2 by 2 within-subject experiment with sales scenarios. Qualitative and quantitative data are obtained from front-line employees of the main French retail banks that serve low-income customers. We show that the recognition of an ethical issue differs depending (...) on the role behavior salespersons are engaged in and the nature of the conflict of interest they face. Moreover, the combined effect of these two situational characteristics is mediated by moral intensity. This study not only adds evidence on situational factors affecting ethical decision but also extends empirical research on sales ethics by revealing sales situations that are not considered in the empirical literature. The research implications of the findings are discussed along with the study’s limitations and suggestions for future research. (shrink)

This study examines the relationship between cognitive moral development (CMD), productivity features of information technology (IT) and unethical behavior or misconduct. Using an experimental design that randomly assigns subjects to one of four unique technology conditions, we assess the relationship between a subjects' predominant level of CMD and ethical misconduct on IT-oriented work tasks. Our results show that both higher levels of CMD and increased levels of IT productivity features at one's disposal have a significant role to play in explaining (...) observed behavior in our sample. We find that CMD as measured by the Defining Issues Test's P-score is negatively related to task misconduct. Conversely, IT productivity features such as copy-and-paste are positively related to task misconduct. In addition, the CMD—misconduct relationship is significantly diminished by the introduction of IT productivity features. Lastly, a series of hazard analyses are conducted to explore the boundaries of our principal findings. These results demonstrate the significant role of technology in enabling negative behavior and the relative inability of subjects' use of principled moral reasoning to overcome it. Implications of these findings for academics and business managers are offered, as well as recommendations for mitigating misconduct in both academic and workplace environments. (shrink)

The purpose of this study is to investigate the influence of the dimensions of the theory of planned behavior, gender and course majors on unethical behavior intentions among Generation Y undergraduates. The sample of this study comprises 245 undergraduates from a private higher education institution (PHEI) in Malaysia. The instrument of this study is developed based on concepts developed from extant literature. Reliability and validity is accessed using Cronbach’s Alpha and Exploratory Factor Analysis respectively. Social desirability bias was monitored utilizing (...) concepts adapted from Phillips and Clancy (American Journal of Sociology, 77(5), 921–940, 1972 ). Multiple Linear Regression and Independent sample T-tests were used for hypotheses testing. As a whole, results indicate that egoism, utilitarianism and magnitude of consequences exerted significant influence on unethical behavior intentions. Peer influence was not significant. In terms of gender, unethical intentions among males were influenced by egoism and peer influenced while females by utilitarianism and magnitude of consequences. Business majors did not consider magnitude of consequences significant in unethical behavior intentions. Ethical values form the fundamentals of ethical culture within organizations and a business environment which is increasingly based on self-regulation. Ethics is an essential part of the holistic personal development of future business leaders. As such, by understanding ethical attitudes and perceptions, we can draw implications for the further enhancements of teaching and learning of Business Ethics in academia as well as the development of ethical culture in the Malaysian context. Educators, parents and society also need to realise their role in the ethical development of these future Malaysian leaders. The framework of this study could be extended to actual behaviors, adult samples and also account for religiosity and age. This study utilizes the established dimensions and framework of the Theory of Planned Behavior in bridging the gap of research in unethical behavior within the context of a PHEI in Malaysia. (shrink)

This study investigates the association of a broad set of variables with the ethical decision making of management accountants in Libya. Adopting a cross-sectional methodology, a questionnaire including four different ethical scenarios was used to gather data from 229 participants. For each scenario, ethical decision making was examined in terms of the recognition, judgment and intention stages of Rest’s model. A significant relationship was found between ethical recognition and ethical judgment and also between ethical judgment and ethical intention, but ethical (...) recognition did not significantly predict ethical intention—thus providing support for Rest’s model. Organizational variables, age and educational level yielded few significant results. The lack of significance for codes of ethics might reflect their relative lack of development in Libya, in which case Libyan companies should pay attention to their content and how they are supported, especially in the light of the under-development of the accounting profession in Libya. Few significant results were also found for gender, but where they were found, males showed more ethical characteristics than females. This unusual result reinforces the dangers of gender stereotyping in business. Personal moral philosophy and moral intensity dimensions were generally found to be significant predictors of the three stages of ethical decision making studied. One implication of this is to give more attention to ethics in accounting education, making the connections between accounting practice and Islam. Overall, this study not only adds to the available empirical evidence on factors affecting ethical decision making, notably examining three stages of Rest’s model, but also offers rare insights into the ethical views of practising management accountants and provides a benchmark for future studies of ethical decision making in Muslim majority countries and other parts of the developing world. (shrink)

Investigations into ethical judgments generally seem fuzzy as to the relevant research domain. We first attempted to clarify the construct and determine domain parameters. This attempt required addressing difficulties associated with pinpointing relevant literature, most notably the varied nomenclature used to refer to ethical judgments (individual evaluations of actions’ ethicality). Given this variation in construct nomenclature and the difficulties it presented in identifying pertinent focal studies, we elected to focus on research that cited papers featuring prominent and often-used measures of (...) ethical judgments (primarily, but not exclusively, the Multidimensional Ethics Scale). Our review of these studies indicated a preponderance of inferences and conclusions unwarranted by empirical evidence (likely attributable at least partly to inconsistent nomenclature). Moreover, ethical judgments related consistently to few respondent characteristics or any other variables, emergent relationships may not always be especially meaningful, and much research seems inclined to repetition of already verified findings. Although we concluded that knowledge about ethical judgments seems not to have advanced appreciably after decades of investigation, we suggested a possible path forward that focuses on the content of what is actually being judged as reflected in the myriad of vignettes used in the literature to elicit judgments. (shrink)

Knowledge about ethical judgments has not advanced appreciably after decades of research. Such research, however, has rarely addressed the possible importance of the content of such judgments; that is, the material appearing in the brief vignettes or scenarios on which survey respondents base their evaluations. Indeed, this content has seemed an afterthought in most investigations. This paper closely examined the vast array of vignettes that have appeared in relevant research in an effort to reduce this proliferation to a more concise (...) set of overarching vignette themes. Six generic themes emerged from this process, labeled here as Dilemma, Classic, Conspiracy, Sophie’s Choice, Runaway Trolley, and Whistle Blowing. Each of these themes is characterized by a unique combination of four key factors that include the extent of protagonist personal benefit from relevant vignette activities and victim salience in vignette descriptions. Theme identification enabled inherent ambiguities in vignettes that threaten construct validity to come into sharp focus, provided clues regarding appropriate vignette construction, and may help to make sense of patterns of empirical findings that heretofore have seemed difficult to explain. (shrink)

Existing debates on business ethics under-represent consumers’ perspectives. In order to progress understanding of ethical judgement in the marketplace, we unpack the interconnections between consumer ethical judgment, consent and context. We address the question of how consumers judge the morality of threat-based experiential marketing communications. Our interpretive qualitative research shows that consumers can feel positively about being shocked, judging threat appeals as more or less ethical by the nature of the negative emotions they experience. We also determine that the intersection (...) between ethical judgement, consent and context lies where consumers’ perceptions of fairness and consequences lend contextualised normative approval to marketing practice. Our research makes three original contributions to existing literature. First, it extends theory in the area of ethical judgement, by highlighting the importance of consent for eliciting positive moral responses. Second, it adds to embryonic research addressing the role of emotions in ethical judgement, by ascertaining that negative emotions can elicit positive consumer ethical judgement. Third, our research contributes an original concept to ethical judgement theorisation, namely consumer-experienced positive shock. We define CEPS as a consensual shock value judged as ethical due to its ephemerality, commercial resonance, brand alignment, target-audience appropriateness and contextual acceptability. We also extrapolate the dimensions of CEPS into an ethical judgement typology, elucidating how consumers judge some threat-based communications as ethical, but not others. Consequently, our work dovetails with wider business ethics debates on ethical judgement, adding value by clarifying the conditions that generate positive consumer ethical judgement. (shrink)

A large body of research has examined the relationship between moral intensity (MI) and the four‐component model of morality, typically, by separating MI into its constituent dimensions and regressing them individually against the four‐component model. This approach, however, violates the definition of MI as a single construct. To correct this problem, we develop and test a model of the impact of MI as a single, 6‐item formative construct. We find that when MI is taken into account, moral recognition is not (...) significant. MI does, however, serve as a strong trigger for judgment. We also determine that splitting MI into multiple factors does not significantly affect the results, confirming the assertion that MI is a single, coherent construct. (shrink)

The goals of this research were to (1) explore the direct effects of and interactions between magnitude of consequences and various types of proximity - social, psychological, and physical - on the ethical decision-making process and (2) investigate the influence of empathy on the ethical decision-making process. A carpal tunnel syndrome vignette and questionnaire were administered to a sample of human resource management professionals to test the hypothesized relationships. Significant relationships were found for the main effects between magnitude of consequences (...) and principle-based evaluation, cognitive empathy and principle-based evaluation, and empathy and moral intention. Physical proximity moderated the relationships between magnitude of consequences and utilitarian evaluation as well as magnitude of consequences and moral intention. Cognitive empathy moderated the relationships between magnitude of consequences and principle-based evaluation and physical proximity and utilitarian evaluation. Affective empathy marginally moderated the relationship between physical proximity and principle-based evaluation. Future research directions, management implications, and strengths and weaknesses of the research are discussed. (shrink)

Scholars have advocated for the inclusion of metacognition in our understanding of the ethical decision making process and in support of moral learning. An instrument to measure metacognition as a domain-specific capacity related to ethical decision making is not found in the current literature. This research describes the development and validation of the 20-item Moral Metacognition Scale. Psychometric properties of the scale were assessed by exploration and confirmation of the factor structure, and the demonstration of convergent, discriminant, and predictive validity. (...) Moral metacognition, as measured by the MMS, was significantly correlated with ethical awareness and ethical judgment. Limitations of our research, suggestions for future exploration, and practical implications are discussed. (shrink)

Following an extensive review of the moral intensity literature, this article reports the findings of two studies (one between-subjects, the other within-subject) that examined the effect of manipulated and perceived moral intensity on ethical judgment. In the between-subjects study participants judged actions taken in manipulated high moral intensity scenarios to be more unethical than the same actions taken in manipulated low moral intensity scenarios. Findings were mixed for the effect of perceived moral intensity. Both probable magnitude of consequences (a factor (...) consisting of magnitude of consequences, probability of effect, and temporal immediacy) and social consensus had a significant effect; proximity did not. In the within-subject study manipulated moral intensity had a significant effect on ethical judgment, but perceived moral intensity did not. Regression of ethical judgment on age, gender, major, and the three perceived moral intensity factors was significant between-subjects, but not within-subject. Ethical judgment was found to be a more robust predictor of intention than perceived moral intensity using a within-subject design. (shrink)

The factor structure of the Multidimensional Ethics Scale (MES; Reidenbach and Robin: 1988, Journal of Business Ethics 7, 871–879; 1990, Journal of Business Ethics 9, 639–653) was examined for the 8-item short form (N = 328) and the original 30-item pool (N = 260). The objectives of the study were: to verify the dimensionality of the MES; to increase the amount of true cross-scenario variance through the use of 18 scenarios varying in moral intensity (Jones: 1991, Academy of Management Review (...) 16, 366–395); and, to examine the items for measurement precision using item-response theory (IRT) methods. Results of confirmatory and exploratory factor analysis failed to conclusively support the hypothesized 3- (short form) or 5-factor (long form) structure; both instruments were instead dominated by a general factor. Item response theory analyses using Samejima’s (1969, Psychometrika Monograph Supplement 34, (4, Pt. 2)) graded response model revealed that many items in the 30-item pool performed very well, and suggested that a different collection of items be used to form a short-form version of the MES. Our proposed 10-item instrument includes more discriminating items than the 8-item version, and has the added advantage of including two items from each of the five ethical philosophies represented in the original 30-item pool. (shrink)

This article examines ethical implications from workplace romances that may subsequently turn into sexual harassment through the use of social media technologies, such as YouTube, Facebook, LinkedIn, Twitter, text messaging, IMing, and other forms of digital communication between office colleagues. We examine common ethical models such as Jones (Acad Manag Rev 16:366–395, 1991) issue-contingent decision-making model, Rest’s (Moral development: Advances in research and theory, 1986) Stages of Ethical Decision-Making model, and Pierce and Aguinis’s (J Org Behav 26(6):727–732,2005) review of workplace (...) romance versus sexual harassment issues. The article makes a contribution by developing a new communication ethics model that includes response positive and response negative contingencies to guide decision-making about inappropriate social media contacts that spillover into the workplace. In addition, we recommend that human resource personnel take a more active role in communicating appropriate ethical rules of conduct concerning the use of social media technologies inside and outside the office. (shrink)

This article synthesizes research presented in several models of unethical behavior to develop propositions about the factors that facilitate and mitigate deception in online business communications. The work expands the social network perspective to incorporate the medium of communication as a significant influence on deception. We go beyond existing models by developing seven propositions that identify how social network and issue moral intensity characteristics influence the probability of deception in online business communication in comparison to traditional communication channels. Remedies to (...) detect and discourage deception in online business networks are also offered, as well as limitations and future research directions. (shrink)

This article examines the relationship between corporate social responsibility and locality in the small business context. This issue is addressed by studying the interplay between small businesses and local community based on the embeddedness literature and using the concept of social proximity. On the basis of 25 thematic interviews with owner-managers a typology is constructed which illustrates the owner-managers' perceptions of the relationship between the business and the local community. The findings emphasize the importance of reciprocity as it is suggested (...) that corporate social responsibility in relation to locality is constructed as a response to the interpretations of reciprocal community support between small business owner-managers and local community. (shrink)

This article examines the relationship between corporate social responsibility and locality in the small business context. This issue is addressed by studying the interplay between small businesses and local community based on the embeddedness literature and using the concept of social proximity. On the basis of 25 thematic interviews with owner-managers a typology is constructed which illustrates the owner-managers’ perceptions of the relationship between the business and the local community. The findings emphasize the importance of reciprocity as it is suggested (...) that corporate social responsibility in relation to locality is constructed as a response to the interpretations of reciprocal community support between small business owner-managers and local community. (shrink)

The impact of smaller firm size on corporate social responsibility (CSR) is ambiguous. Some contend that small businesses are socially responsible by nature, while others argue that a smaller firm size imposes barriers on small firms that constrain their ability to take responsible action. This paper critically analyses recent theoretical and empirical contributions on the size–social responsibility relationship among small businesses. More specifically, it reviews the impact of firm size on four antecedents of business behaviour: issue characteristics, personal characteristics, organizational (...) characteristics and context characteristics. It concludes that the small business context does impose barriers on social responsibility taking, but that the impact of the smaller firm size on social responsibility should be nuanced depending on a number of conditions. From a critical analysis of these conditions, opportunities for small businesses and their constituents to overcome the constraining barriers are suggested. (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)

Digital piracy as a continuing problem significantly impacts various stakeholders, including consumers, enterprises, and countries. This study develops a three-level mechanism of determinants of consumer digital piracy behavior, with personal risk as an individual factor, susceptibility to interpersonal influence as an inter-personal factor, and moral intensity as a broad societal factor. Further, it explores the role of rationalization and future piracy intent as outcomes of past piracy behaviors. The authors use survey data from four countries in the European Union to (...) test the system of structural relationships. With an exception of the effect of consumers’ susceptibility to interpersonal influence on piracy behavior, the conceptual model receives remarkably consistent support across the four countries. Specifically, perception of personal risk and moral intensity negatively affected the reported piracy behavior in all four countries. The results further support the negative influence of moral intensity and the positive influence of past digital piracy behavior on consumers’ use of rationalization. Lastly, personal risk, rationalization, and past digital piracy behavior directly influenced consumers’ intention to engage in digital piracy in the future. The study also discusses implications of the findings and identifies areas of future research. (shrink)

This research examines how two dimensions of moral intensity involved in a corporation’s external crisis response—magnitude of effectiveness and interpersonal proximity—influence observer perceptions of and behavioral intentions toward the corporation. Across three studies, effectiveness decreased negative perceptions and increased pro-organizational intentions via ethical judgment of the response. Moreover, the two dimensions interacted such that a response high in proximity but low in effectiveness led to more negative perceptions and to less pro-organizational intentions. This interaction was particularly pronounced if the corporation (...) portrayed itself as communal-oriented. The interaction was mediated by individuals’ ethical judgment, which was a function of the corporation’s perceived benevolent concern. We termed the interaction the Strategic Samaritan, for it was when the corporation tried to appear like a Good Samaritan, displaying proximity with victims but not accompanying it with effective help, that it was seen as acting with less benevolent concern. (shrink)

This study uses a sample of 242 European professional purchasers to examine the six characteristics of the decision-making process developed by Jones. The illustration mobilizes six original scenarios reproducing typical purchasing situations. Two versions of each scenario were used, one representing low moral intensity and the other showing high moral intensity. Two populations were sampled: one of 120 purchasers responding to the first version of the questionnaire and a second of 122 different purchasers responding to version two. Each version contained (...) three low-moral-intensity scenarios and three high-moral-intensity scenarios. The research also investigates two concepts suggested by Hannah et al. :663–685, 2011): examining the complexity of ethical decision-making through scenarios and microsocial professional ethical contexts. The findings reveal that neither traditional individual characteristics nor standard company characteristics have a real impact on two stages of Rest’s model. They also show that internal locus of control and a high microsocial ethical environment have a positive impact on purchaser awareness and intention to act ethically for four of the six dimensions: magnitude of consequences, social consensus, temporal immediacy, and concentration of effect. Moral intensity factors also have a positive impact on these four dimensions. The two other dimensions are not related to the independent variables. (shrink)

Recent corporate scandals across various industries have led to an increased focus on research in business ethics, particularly on understanding ethical decision-making. This increased interest is due largely to managers' desire to reduce the incidence of unwanted behaviors in the workplace. This article examines one major moderator of the ethical decision-making process - moral intensity. In particular, we explore the potential influence of a particular cognitive heuristic - the availability heuristic -on perceptions of moral intensity. It is our contention that (...) moral intensity is a perceptual construct, and that individuals' use of the availability heuristic will influence perceptions of moral intensity which, in turn, will affect how moral issues are viewed and ultimately resolved. In this article, we present propositions concerning possible relationships between the availabilities of various phenomena and the components that moral intensity comprises, and report on two studies examining the effects of availabilities on two of these components: magnitude of consequences and social consensus. Our findings indicated that the availability of consequences associated with an act was positively related to perceptions of the magnitude of consequences of that act. We also found that the availability of others who believe that a particular act is morally acceptable is positively related to perceptions of social consensus that that act is morally acceptable. We posit that our results suggest the possibility that perceptions of moral intensity can be actively influenced to reduce unethical behavior in organizations. (shrink)

Despite attempts to encourage whistleblowing, lingering reluctance to report questionable acts remains frustratingly apparent. Our objective is to examine the regret a professional anticipates when evaluating the action of reporting or not reporting, and whether the framing of the action influences regret. Responses from 263 professionals indicate that regret depends on the moral intensity of the situation and how the action is framed. Regret for whistleblowing is not comparable to regret for not remaining silent, despite the fact that these two (...) descriptions result in the same action. This important implication may inform the way we educate and encourage whistleblowing. (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)

This study uses a rational ethical decision-making framework to examine the influence of moral intensity (potential harm and social pressure) on whistleblowing intention and behaviour using organisational commitment as a moderator. A scenario was developed, and an online questionnaire was used to conduct an empirical analysis on the responses of 533 participants. The mean age and years of work experience of the respondents were 31 and 8.2 years, respectively. The results show, first, that while moral intensity is correlated with whistleblowing (...) intention, only the potential harm is positively correlated with such intention. Second, potential harm and social pressure differentially affect whistleblower choice of using an internal or external channel. Third, organisational commitment has a moderated mediation effect among moral intensity, whistleblowing intention and behaviour. Fourth, whistleblowers may be grouped into four conceptual types: indifferent, rebel, mature and spoil. Finally, theoretical and managerial implications of the findings are discussed. (shrink)

Largely due to the difficulty of observing behavior, empirical business ethics research relies heavily on the scenario methodology. While not disputing the usefulness of the technique, this paper highlights the importance of a careful assessment of the fit between the context of the situation described in the scenario and the knowledge and experience of the respondents. Based on a study of online auctions, we provide evidence that even respondents who have direct knowledge of the situation portrayed in the scenario may (...) develop significantly different assessments of the level of unethical behavior. Further, those assessments may be conditioned in different ways by the same moderating variables. We conclude that care should be exercised when recruiting respondents to choose only those who can be expected to understand the scenario in its true context and that separate analyses should be conducted for groups of respondents who have different perspectives within that context. (shrink)

Largely due to the difficulty of observing behavior, empirical business ethics research relies heavily on the scenario methodology. While not disputing the usefulness of the technique, this paper highlights the importance of a careful assessment of the fit between the context of the situation described in the scenario and the knowledge and experience of the respondents. Based on a study of online auctions, we provide evidence that even respondents who have direct knowledge of the situation portrayed in the scenario may (...) develop significantly different assessments of the level of unethical behavior. Further, those assessments may be conditioned in different ways by the same moderating variables. We conclude that care should be exercised when recruiting respondents to choose only those who can be expected to understand the scenario in its true context and that separate analyses should be conducted for groups of respondents who have different perspectives within that context. (shrink)

Two elements of corporate governance—the strength of ethical executive leadership and the internal audit function (IAF hereafter)—provide guidance to accounting managers making decisions involving uncertainty. We examine the joint effect of these two factors, manipulated at two levels (strong, weak), in an experiment in which accounting professionals decide whether to book a questionable journal entry (i.e., a journal entry for which a reasonable business case can be made but there is no supporting documentation). We find that ethical leadership and the (...) IAF interact to determine the likelihood that accountants book the entry. Specifically, accountants are less likely to book a questionable journal entry when there is a weak ethical leader and a strong IAF compared to all other conditions. In addition, we find that accountants question the appropriateness and ethicalness of the request to book an undocumented journal entry more in the weak ethical leader and strong IAF condition than in the other conditions. These results suggest that the IAF has a different impact on financial reporting decisions depending on the ethicalness of executive leadership and that a strong IAF may cause accountants to question the appropriateness and ethicalness of an undocumented journal entry when combined with weak ethical leadership. We also find that the interactive effect of ethical leadership and the IAF on an accountant’s decision is fully mediated by his/her perception of the moral intensity of the issue. Thus, accountants, who perceive greater moral intensity associated with booking the entry, are less willing to do so. (shrink)