A review of extent business ethics research uncovered well over 200 published articles that investigated the role of job functions within a business organization as an explanatory factor of ethical or unethical behavior. While an important body of work, ethical breaches are often found to cut across job functions and involve multiple disciplines embedded in a business organization. This research seeks to explore a crossfunctional explanation for ethical reasoning by using an instrument new to business ethics research, the Wason selection (...) task, but well-grounded and validated in cognitive research and evolutionary psychology, to assess an individual's ability to detect rule-based social contract violations. A sample of 276 full-time business practitioners, enrolled in part-time M.B.A. programs, from the accounting, finance, information technology, marketing, supply chain, and human resource management job functions were compared on their ability to detect rule violators across a series of production scenarios in the Wason selection task. Rates of cheater detection were calculated to determine if substantive differences existed across job functions. This was followed by a series of pairwise comparisons of percentages of cheater detection across the job functions using z-tests for assessing statistical significance. The data analysis showed differences in cheater detection, with most of the variance due to the marketing job function group. Insights from this study for scholars, educators, and practitioners in the business ethics field are discussed. (shrink)

This paper explores the justifications and impression management strategies that industrial companies use to rationalize their impacts on climate change. These strategies influence the perceptions of stakeholders through the use of techniques of neutralization intended to legitimize the impacts of corporate operations in the area of climate change. Based on a qualitative and inductive approach, 10 case studies were conducted of large Canadian industrial emitters. Interviews were conducted with managers and environmental specialists. Public documentation was also collected when available. This (...) study identifies six main neutralization techniques that industrial emitters use to rationalize their impacts: self-proclaimed excellence, promotion of a systemic view, denial and minimization, denouncing unfair treatment and deceptive appearances, economic and technological blackmail, and blaming others. The paper develops a better understanding of corporate arguments and strategies aimed at influencing the perceptions of stakeholders, including policymakers. The study also contributes to the literature on impression management by shedding light on new strategies and techniques of neutralization used by managers to shape the perceptions of stakeholders on socially sensitive issues. (shrink)

While innovations have fostered the mass production of food at low costs, there are externalities or side effects associated with high-volume food processing. We focus on foodborne illness linked to two commodities: ground beef and bagged salad greens. In our analysis, we draw from the concepts of risk, reflexive modernization, and techniques of ethical neutralization. For each commodity, we find that systems organized for industrial goals overlook how production models foster cross-contamination and widespread outbreaks. Responses to outbreaks tend to rely (...) on technological fixes, which do not constitute the reflexive change needed to holistically and effectively address foodborne illness in the long term. We contend that powerful anti-reflexivity movements resist calls for reform and successfully maintain industrial goals and organization. Actions that thwart changes in agrifood systems to better protect consumers are unethical, yet they continue to be successful. We argue that specific techniques of ethical neutralization play an important part in their success. Research on anti-reflexivity and techniques of neutralization will serve to further expose the ethical issues associated with the industrial agrifood system and foster new guiding principles and organizational designs for food production. (shrink)

A new generation, earmarked the Thirteeners, is an emerging force in the marketplace. The Thirteener cohort group, so designated since they are the thirteenth generation to know the American flag and constitution, encompass over 62 million adult consumers. All the former "Mall Rats" have grown up. The normative structures that these Thirteeners employ in both acquisition and disposition retail settings is empirically assessed in this study through the use of a national sample. The findings suggest that Thirteeners are more likely (...) to attempt to rationalize away unethical retailing consumption behaviors than their parent's generation. The managerial and theoretical implications for the practice of retailing in the 1990s associated with these observations are discussed. (shrink)

An empirical investigation was conducted to determine whether management information systems (MIS) majors, on average, exhibit ethical decision-making processes that differ from students in other functional business areas. The research also examined whether the existence of a computer-based information system in an ethical dilemma influences ethical desision-making processes. Although student subjects were used, the research instrument has been highly correlated with educational levels attained by adult subjects in similar studies. Thus, we feel that our results have a high likelihood of (...) generalization to the MIS professional community. The results indicate that MIS majors exhibit more socially-oriented ethical decision-making processes than non-MIS majors measured by the Defining Issues Test. The results also indicate that the existence of a computer-based information system in an ethical dilemma may influence ethical decision-making processes. The study makes no statement regarding MIS majors making more (or less) ethical decisions. The business ethics literature is reviewed, details of the study are presented, implications for management are considered, and directions for future research are suggested. (shrink)

The human resources profession emphasizes the personal and interpersonal aspects of work, that make it conscious of complex ethical issues in relationships in the workplace, while finance specialists are conversant with routine compliance with regulations. Marketing professionals are under pressure to produce revenue results. Thus, this research hypothesized that human resources managers would be more disapproving of unethical conduct than both finance and marketing functional managers, and that finance managers would be more disapproving than marketing managers. When asked to evaluate (...) instances of unethical behavior in vignettes, human resources and finance managers were both significantly more disapproving than marketing managers. However, human resources managers were not significantly more disapproving than finance managers. Explanations for the results lie in the divergent antecedent conditions, objectives, perceptions of ethical problems and demands of the various functions. Alternative behavior patterns to resolve ethical dilemmas and expected consequences by the different functions also define their ethical orientations. Average responses on the disapproving side from all three functional groups are explained by two complementary trends that promote ethical awareness among all functional managers. One is the adoption of homogeneous conventions in ethical business practice. The other trend is the increase in ethical awareness specific to each of the functional professions. (shrink)

Exploratory research was undertaken in four locations in the Asia Pacific Rim to investigate the cognitive frameworks used by managers when considering ethical business dilemmas. In addition to culture, gender and organisational dimensions were also studied. Aggregate analysis revealed no significant differences in the cognitive frameworks used by business managers in Hong Kong, Malaysia, New Zealand, and Canada. Of the eight frameworks used in the study four cognitive frameworks appeared to feature predominantly. Utilising the results of regression analysis the most (...) salient cognitive frameworks utilised by managers were identified as; Self Interest, Neutralisation, Justice and Categorial Imperative, with Neutralisation and Self Interest being the most significant among all managers. Religious Conviction and the Light of Day framework (which relates to fear of being exposed) did not feature prominently in the analysis. A few significant differences in the ethical frameworks used by males and females were identified. For males in all four locations Self Interest, Neutralisation and Justice appeared to be dominant frameworks, while considerable variability was seen in the frameworks used by females. Marginally significant differences were observed in the cognitive frameworks used by managers with differing functional responsibilities. Across all locations respondents with general management responsibilities relied predominately on Self Interest, while those with marketing responsibilities utilised Neutralisation. Respondents with an accounting orientation also relied predominately on Neutralisation and Categorial Imperative frameworks. (shrink)

The popular view of shareholder activism focuses on shareholder resolutions and the shareholder vote via proxy statements at the annual meeting, which is treated as a "David vs. Goliath" showdown between the small group of socially responsible investors and the powerful corporation. This article goes beyond the popular view to examine where the real action typically occurs-in the Dialogue process where corporations and shareholder activist groups mutually agree to ongoing communications to deal with a serious social issue. Use of the (...) capitalized word "Dialogue" is intended to distinguish this formal process between corporations and shareholders from all the other forms of dialogue or twoway communication exchanged between a corporation and its stakeholders. The phenomenon of Dialogue between a corporation and dissident shareholders has not been analyzed in the academic literature or in the popular press because it occurs behind the scenes and out of sight from media scrutiny. Yet this is where a great deal of social change initiated by shareholder activists is negotiated. This article contributes both theoretically and empirically to the study of Dialogues between shareholder activists and corporations. We explain how Dialogues occur in the context of the shareholder resolution process and examine two Dialogues that focus on international labor issues in two industries. Then data on Dialogues during the period, 1999-2005, from the Interfaith Center on Corporate Responsibility are analyzed. This research contributes to knowledge about the Dialogue process and the emerging literature on corporation-stakeholder engagement. (shrink)

The popular view of shareholder activism focuses on shareholder resolutions and the shareholder vote via proxy statements at the annual meeting, which is treated as a “David vs. Goliath” showdown between the small group of socially responsible investors and the powerful corporation. This article goes beyond the popular view to examine where the real action typically occurs – in the Dialogue process where corporations and shareholder activist groups mutually agree to ongoing communications to deal with a serious social issue. Use (...) of the capitalized word “Dialogue” is intended to distinguish this formal process between corporations and shareholders from all the other forms of dialogue or two-way communication exchanged between a corporation and its stakeholders. The phenomenon of Dialogue between a corporation and dissident shareholders has not been analyzed in the academic literature or in the popular press because it occurs behind the scenes and out of sight from media scrutiny. Yet this is where a great deal of social change initiated by shareholder activists is negotiated. This article contributes both theoretically and empirically to the study of Dialogues between shareholder activists and corporations. We explain how Dialogues occur in the context of the shareholder resolution process and examine two Dialogues that focus on international labor issues in two industries. Then data on Dialogues during the period, 1999–2005, from the Interfaith Center on Corporate Responsibility are analyzed. This research contributes to knowledge about the Dialogue process and the emerging literature on corporation–stakeholder engagement. (shrink)

The present research was designed to investigate the absolute and relative levels of ethical convictions of executive search consultants, or "headhunters", in regard of their search practices. Executive search consultants were defined as trained specialists who helped client organizations identify and evaluate the suitability of job candidates for top, senior, and middle-level management and executive positions. Despite frequent reports of unethical search practices in the media, results based on a sample of 184 headhunters and non-headhunter executives showed that headhunters were (...) inclined to adhere stringently to a selected set of ethical values, both in absolute terms and in comparison with the expectations of non-headhunter executives. The differences had implications not only for the integrity and continued existence of the headhunting profession, but also for the ethical development of new executive search consultants. Future research directions were suggested. (shrink)

In this paper, we explore the 2008 financial crisis in Iceland through the lens of Donaldson’s concept of normalization of questionable behavior. We study the report published by the Special Investigation Commission, an investigation initiated by the Icelandic Parliament near the end of 2008. The report provides a detailed and systematic account of the processes leading up to the crisis. Our aim is to determine the extent to which the behaviors of professionals in the Icelandic financial sector can be explained (...) as a gradual fading of moral concerns to the point that they perceived the sale of high-risk products to unassuming customers for their own short-term benefit to be morally unproblematic. In doing so, we consider both character and circumstance explanations of moral misbehavior. We expand on Donaldson’s initial description of normalization of questionable behavior by applying the concept of moral neutralization, which is defined by criminologists Sykes and Matza as the process of convincing oneself that an option that initially conflicted with one’s own moral beliefs is actually morally acceptable. We find indications that individuals in the Icelandic financial sector did engage in moral neutralization in their attempts to frame their own actions in an acceptable light. In our study, we identify one way of neutralizing away moral dissonance not captured in the original theoretical framework. Icelandic bankers justified their behavior by claiming that they did not break any relevant rules or regulations when they engaged in what were later labeled questionable activities. Our name for this kind of justification is claim of having breached no rule. (shrink)

The area of services marketing is a highly crucial one for potential ethical violations. The services industry, which drives over two-thirds of our national economy, is about to experience severe changes due to increasing competition. The temptation to make ethical compromises will pose a dramatic threat to the business climate.We review conceptual approaches to the field of marketing ethics and conclude that existing models often lack an important component which affects ethical decision-making. That component includes the interorganizational variables: the primary (...) task environment, including immediate customers and suppliers to the buyer and seller; the secondary task environment, comprised of suppliers and customers to the immediate suppliers and customers, competitors, and regulatory agencies, and the macro-environment, those broader forces which impinge on the activities in the primary and secondary task environments. (shrink)

Cognitive biases play an important role in creating and perpetuating problems that lead to foodborne illness outbreaks. By using insights from behavioral ethics, we argue that sometimes people engage in unethical behavior that increases the likelihood of foodborne illness outbreaks without necessarily intending to or being consciously aware of it. We demonstrate these insights in an analysis of the 2011 Listeriosis outbreak in the U.S. from the consumption of contaminated cantaloupes. We then provide policy implications that can improve our understanding (...) of other kinds of disease outbreaks and epidemics. (shrink)

Despite the existence of a large number of models to explain the ethical decision-making process, rarely have the models been tested. This research validated the use of such models by showing that both issue-contingent variables and individual characteristics affect two commonly-proposed model components: i.e., moral judgment and moral intent. As proposed by Jones' (1991) ethical decision-making model and elaborated on by the author, the main effect of an issue-contingent variable, social consensus, and a closely-related variable, seriousness of consequences, influenced both (...) moral judgment and moral intent.Many ethical decision-making models also argue for the inclusion of individual characteristics in the decision-making process. This study proposed and found that the individual characteristics of rule orientation and denial of responsibility influenced moral judgment and moral intent, respectively. However, contrary to some models, interactions between issue-contingent variables and individual characteristics were insignificant relative to the main effects variables. The relationships found have implications for future model testing, as well as for practising managers. (shrink)

Given the tremendous proliferation of student plagiarism involving the Internet, the purpose of this study is to determine which theory of ethical reasoning students invoke when defending their transgressions: deontology, utilitarianism, rational self-interest, Machiavellianism, cultural relativism, or situational ethics. Understanding which theory of ethical reasoning students employ is critical, as preemptive steps can be taken by faculty to counteract this reasoning and prevent plagiarism. Additionally, it has been demonstrated that unethical behavior in school can lead to unethical behavior in business; (...) therefore, correcting unethical behavior in school can have a positive impact on organizational ethics. To meet this objective, a content analysis was conducted on the written records of students formally charged with plagiarizing at a large West Coast university. Each case was classified according to the primary ethical reasoning that the student used to justify plagiarism. Results indicate that students predominately invoke deontology, situational ethics, and Machiavellianism. Based on these findings, specific recommendations are offered to curb plagiarism. (shrink)

When external groups accuse a business organization of unethical practices, managers of the accused organization usually offer a communicative response to attempt to protect their organization's public image. Even though many researchers readily concur that analysis of these communicative responses is important to our understanding of business and society conflict, few investigations have focused on developing a theoretical framework for analyzing these communicative strategies used by managers. In addition, research in this area has suffered from a lack of empirical investigation. (...) In this paper we address both of these weaknesses in the existing literature. First, we explicate Impression Management Theory as an appropriate framework for studying organizational communicative responses, paying particular attention to the concept of accounts. Second, we critique previous investigations of organizational accounts and discuss the major contributions of our study. Third, we propose a coding system and content analyze the accounts offered by managers from 21 organizations that were recently the targets of consumer boycotts. Finally, we report the results of our empirical investigation and discuss ethical issues related to organizational accounts. (shrink)

In 1999, the Journal of Business Ethics published its 1 500th article. This article commemorates the journal's quest "to improve the human condition" (Michalos, 1988, p. 1) with a summary and assessment of the first eighteen volumes. The first part provides an overview of JBE, highlighting the journal's growth, types of methodologies published, and the breadth of the field. The second part provides a detailed account of the quantitative research findings. Major research topics include (1) prevalence of ethical behavior, (2) (...) ethical sensitivities, (3) ethics codes and programs, (4) corporate social performance and policies, (5) human resource practices and policies, and (6) professions – accounting, marketing/sales, and finance/strategy. Much remains to be done. (shrink)

This article explores how neutralisation can explain people's lack of commitment to buying Fair Trade (FT) products, even when they identify FT as an ethical concern. It examines the theoretical tenets of neutralisation theory and critically assesses its applicability to the purchase of FT products. Exploratory research provides illustrative examples of neutralisation techniques being used in the FT consumer context. A conceptual framework and research propositions delineate the role of neutralisation in explaining the attitude-behaviour discrepancies evident in relation to consumers' (...) FT purchase behaviour, providing direction for further research that will generate new knowledge of consumers' FT purchase behaviour and other aspects of ethical consumer behaviour. (shrink)

This article explores how neutralisation can explain people's lack of commitment to buying Fair Trade products, even when they identify FT as an ethical concern. It examines the theoretical tenets of neutralisation theory and critically assesses its applicability to the purchase of FT products. Exploratory research provides illustrative examples of neutralisation techniques being used in the FT consumer context. A conceptual framework and research propositions delineate the role of neutralisation in explaining the attitude-behaviour discrepancies evident in relation to consumers' FT (...) purchase behaviour, providing direction for further research that will generate new knowledge of consumers' FT purchase behaviour and other aspects of ethical consumer behaviour. (shrink)

This research study sought to identify and categorize international marketing ethical problems that confront business managers in Australia and Canada. The study focused on ten major ethical problems developed from previous exploratory research. Managers from both countries indicate that the most frequently cited ethical problem is "gifts/ favors/entertainment" and the most important ethical problem is "large-scale bribery". However, there exist significant differences in terms of rankings and mean values of frequency and importance ratings for other ethical problems.

The paper takes a look at insurance customer dishonesty as a special case of consumer ethics, understood as a way of situation handling, as a moral choice between right and wrong, such as between self-interest vs. common-interest, in other words, a “moral temptation”. After briefly raising the question if different schools, of moral philosophy would conceptualize such moral temptations differently, the paper presents ‘moral psychology’ as a frame of reference, with a focus on cognitive moral development, moral attitude and moral (...) neutralization. Conceptualization questions can’t be answered finally without thinking at the same time of empirical research design and instrument design decisions, e.g. choosing between experiment vs. questionnaire studies, designing suitable moral temptation situations as an experiment vs. questionnaires with scenario vignettes. The paper discusses then experiences from a 2004 pilot survey, with a main focus on a few insurance dishonesty scenarios with follow-up questions. The paper has an open end, i.e. outlines desirable future theoretical, empirical and practical work with insurance customer dishonesty. (shrink)

Pharmaceutical industry marketers are confronted with specific ethical issues linked to the tension between the economic interest being pursued and the health mission of this sector. Indeed this dual mission could be problematic for them when the two objectives contradict each other. We use the concept of moral dissonance to examine how marketers in the pharmaceutical industry perceive the profit/health tension inherent in their sector and how they deal with it. Based on narratives of 18 marketers working in the pharmaceutical (...) sector, our qualitative study identifies ethical conflicts of varying intensity that generate differing degrees of moral dissonance among marketers. To cope with this moral dissonance, they use the following strategies: (1) minimize the sensitivity of their activity; (2) invoke the benefits to patients; and (3) avoid behaviors that conflict with their values. (shrink)

The objective of this paper is to investigate, through a qualitative study based on 38 semi-structured interviews with agents who provide assurance of sustainability reports, how they perceive and manage ethical issues underlying the verification of sustainability reports. Most of the ethical issues observed involve four interconnected aspects: the commercialism underlying sustainability assurance, the symbolic nature of the verification process, interdependency between auditing and consulting activities, and familiarity with the audited companies. The findings shed light on the reflexivity of assurance (...) providers on these issues and the legitimation strategies used to explain how they reconcile the independence and impartiality required for auditing activities with commercial aspects related to client–provider relationships. The study also shows the role of contextual variables in the ethics of assurance services. The paper contributes to the literature on the legitimacy of sustainability assurance and commercialism of the audit function. Practical implications and avenues for future research are also developed. (shrink)

This paper explores the strategies organizations use to demonstrate their accountability for biodiversity and legitimize their impact in this area through the use of techniques of neutralization. Neutralization aims to manage stakeholder impressions on very socially sensitive issues. Based on the content analysis of 148 sustainability reports from mining organizations, the study sheds light on the successful use of rhetoric in reports on non-measurable and potentially unaccountable issues. Specifically, the study shows that mining organizations use four main techniques of neutralization (...) when they explain their impact on biodiversity. When they address stakeholders, they defend their social legitimacy and environmental responsiveness using one of the four techniques: they claim of a net positive or neutral impact on biodiversity, they deny that they have a significant impact, they distance themselves from the impact of their actions, and they play down their responsibilities. The study contributes to the literature on corporate sustainability and accounting for stakeholders. It focuses on under-researched issues such as the management of biodiversity and the tactics used to rationalize negative impacts. The study also bridges the gap between theories about organizational legitimacy, impression management, and techniques of neutralization. (shrink)

This study identifies and categorises ethical problems in terms of frequency of occurrence and importance to a sample of Australian international business managers. The study determined that the most frequently cited ethical problem is gifts/favours/entertainment and that this problem may be related to the culture where the international business is being conducted. The most important ethical problem is large-scale bribery. When the frequency of occurrence and importance means are compared in a scatter plot, cultural differences, pricing practices and questionable commissions (...) were catagorised in the high frequency/high importance quadrant. The Australian general managers stated that managerial action will be taken to control unethical behavior among their international marketing managers. It was conjectured that managers were not as firm in their attitudes concerning the necessity to compromise one''s ethics to succeed in international business. (shrink)