The purpose of this paper is to analyze the relationship between national culture and ethical decision making. Established theories of ethics and moral development are reviewed and a culture-based model of ethical decision making in organizations is derived. Although the body of knowledge in both cross-cultural management and ethics is well documented, researchers have failed to integrate the influence of cultural values into the ethical decision-making paradigm. A conceptual understanding of how managers from different nations make decisions about highly ethical (...) issues will provide business ethics researchers with a sound theoretical foundation upon which future empirical inquiry can be based. (shrink)

From a corporate governance perspective, one of the most important jobs of a firm's top management team is to create and maintain a positive moral environment. Business ethics has long been considered a cornerstone in the field of strategic management and a number of scholars have called for more research in this area over the years. In this paper 658 articles that appeared in "Strategic Management Journal" over the 10-year period between 1996 and 2005 are reviewed for business ethics focus (...) and content. The results reveal that while business ethics research in "Strategic Management Journal" is on the rise, the overall focus on this research stream has been limited. The most prominent ethics theme during the review period was environmentalism, accounting for 30% of all ethics articles. Author affiliations, future research directions, and implications are also discussed. (shrink)

In this article, we provide a comprehensive analysis and a normative assessment of rationing through inconvenience as a form of rationing. By “rationing through inconvenience” in the health sphere, we refer to a nonfinancial burden that is either intended to cause or has the effect of causing patients or clinicians to choose an option for health-related consumption that is preferred by the health system for its fairness, efficiency, or other distributive desiderata beyond assisting the immediate patient. We argue that under (...) certain conditions, rationing through inconvenience may turn out to serve as a legitimate and, compared to direct rationing, even a preferable tool for rationing; we propose a research agenda to identify more precisely when that might be the case and when, alternatively, rationing through inconvenience remains ethically undesirable. After defining and illustrating rationing through inconvenience, we turn to its moral advantages and disadvantages over other rationing methods. We take it as a starting assumption that rationing, understood as scarce-resource prioritization, is inevitable and, in a society that has goals beyond optimizing health care for individual patients—such as improving societal health care, education, or overall welfare—prudent and fair. (shrink)

Physicians, scholars, and policymakers continue to be concerned about conflicts of interests among health care providers. At least two main types of objections to conflicts of interest exist. Conflicts of interests may be intrinsically troublesome if they violate providers’ fiduciary duties to their patients or they contribute to loss of trust in health care professionals and the health care system. Conflicts of interest may also be problematic in practice if they bias the decisions made by providers, adversely impacting patient outcomes (...) or wastefully increasing health care costs. This latter objection may be observed in differences in the prescriptions written, procedures performed, or costs billed by health care professionals who have conflicting interests, when compared to those that do not have such financial relationships. (shrink)

In this paper we theorize that cognitive ethical orientations play an influential role in the beliefs of consumers when faced with different ranges of moral dilemmas. We examine this proposition in transitional Eastern Europe and results from a sample of 210 Romanian consumers suggest that Romanians are faced with a moral situation where low levels of Machiavellianism and high levels of idealism appear to relate to a higher ethical concern about passively benefiting at the expense of others.

From a corporate governance perspective, one of the most important jobs of a firm's top management team is to create and maintain a positive moral environment. Business ethics has long been considered a cornerstone in the field of strategic management and a number of scholars have called for more research in this area over the years. In this paper 658 articles that appeared in "Strategic Management Journal" over the 10-year period between 1996 and 2005 are reviewed for business ethics focus (...) and content. The results reveal that while business ethics research in "Strategic Management Journal" is on the rise, the overall focus on this research stream has been limited. The most prominent ethics theme during the review period was environmentalism, accounting for 30% of all ethics articles. Author affiliations, future research directions, and implications are also discussed. (shrink)

Managers throughout the world regularly face ethical dilemmas that have important, and perhaps complex, professional and personal implications. Further, societal consequences of decisions made can be far-reaching. In this study, 210 financial services managers from Australia, Chile, Ecuador and the United States were queried about their ethical beliefs when faced with four diverse dilemmas. In addition, the situational context was altered so the respondent viewed each dilemma from a top management position and from a position of economic hardship. Results suggest (...) a complex interaction of situation, culture and issue when individuals make ethical judgments. Specifically, Chileans were found to have different beliefs about sex discrimination and child labor dilemmas when compared to their colleagues from the other three nations. Chileans and Australians also disagreed on the bribery dilemma. Anglo managers were more likely than Latin American managers to change their ethical responses when the situation was altered. For multinational firms interested in maintaining healthy ethical climates, the findings suggest that culturally contingent ethical guidelines, or policies adapted to the local customs, must be considered. Further, managers must remain aware of issues related to specific situations, both internal and external, that would cause subordinates to alter their moral judgment. (shrink)

Despite an increase in international business ethics research in recent years, the number of studies focused on Latin America and China has been deficient. As trade among Pacific Rim nations increases, an understanding of the ethical beliefs of the people in this region of the world will become increasingly important. In the current study 208 respondents from Peru and China are queried about their ethical ideologies, firm practices, and commitment to organizational performance. The empirical results reveal that Chinese workers are (...) more relativistic and less idealistic than their Peruvian counterparts. One explanation for the disparity between these two groups is likely the variation in collectivism that can be traced to different levels of importance across ingroups and outgroups. In addition to a summary of the results, future research directions and managerial implications are discussed. (shrink)

Despite the recent emergence of many new ethical decision making models, there has been minimal emphasis placed on the impact of escalating commitment on the ethical decision making process. In this paper a new variable is introduced into the ethical decision making literature. This variable, exposure to escalation situations, is posited to increase the likelihood that individuals will choose unethical decision alternatives. Further, it is proposed that escalation situations should be included as a variable in Jones's (1991) comprehensive model of (...) ethical decision making. Finally, research propositions are provided based on the relationship between escalating commitment and the ethical decision making process. (shrink)

Individualized customer information is at the heart of on-line commerce. Using increasing amounts of customer-specific data enhances the success and value of one-to-one on-line marketing; but the extensive gathering and use of data specific to individuals also causes alarm over the loss of digital privacy, setting up a confrontation between e-commerce and society. Governments and nations, particularly in Europe, have reacted with a reliance on sweeping laws governing digital privacy protection while other nations such as the U.S. have generally preferred (...) to allow companies and industry associations to regulate themselves. This tenuous balance is under attack from both sides. In this paper, we set up a framework which incorporates the environmental context, ethical perspectives and firm-specific considerations to help firms develop a strategy for handling digital privacy concerns. (shrink)

We contribute to the study of offshoring and outsourcing by examining how stakeholders' ethical evaluations of these decisions are influenced by both their roles and the issues embedded within the decisions. Although offshoring and outsourcing have been studied from a transactional perspective, the moral issues embedded within these decisions can profoundly affect how the organization is perceived by outside stakeholders. First, we contend that investors use different moral paradigms compared with consumer stakeholders, as a result the stakeholder role an individual (...) occupies significantly influences their ethical evaluation of offshoring and outsourcing decisions. Next, we examine whether embedded issues of product quality and information security increase the moral intensity of offshoring and outsourcing decisions, thereby negatively influencing ethical evaluations. Using vignettes, we find that respondents viewed either offshoring or outsourcing less favorably than relocation. Surprisingly, respondents viewed offshoring with data security risks more negatively than offshore outsourcing with quality risks, suggesting that the issue of information security has a greater moral intensity than the issue of product or service quality for both consumer and investor stakeholders. Thus, we show that that embedded issues play a significant role in stakeholders' ethical judgments of business decisions, such as offshoring and outsourcing. (shrink)

Medical and public health research includes surveys, interviews, and biospecimens — techniques that do not present substantial risks to subjects. Consequently, this research is exempt from regulation under the Federal Common Rule. Nevertheless, at many institutions, exempt research is frequently subject to the same regulatory process that is required for non-exempt research, requiring the consumption of time and resources for review by Institutional Review Board members or staff. The federal government has indicated an intention to reform and centralize this system, (...) but has not yet specified the form that it will use instead. By examining the policies of the top 50 research institutions, this article assesses institutional practices surrounding exempt research, quantifies the extent of exempt-research review requirements, documents a problem of “over-compliance,” and makes recommendations for reform. (shrink)

Although business ethics has a long history as a core theme within the realm of strategic management it has not received considerable attention in top strategy journals until recently. In this paper, we assess the state of business ethics research published over a 5-year period (2006–2010) in Strategic Management Journal to ascertain whether there has been an increase in business ethics research published in the top strategy outlet. The results of our content analysis reveal that ethics research in SMJ is (...) indeed on the rise yet this research stream is still underrepresented with only 5.8 % of all articles published over the five-year period having an ethics theme. Moreover, the link between Corporate Social Performance and Financial Performance was identified as the top theme during the review period. (shrink)

As multinational firms explore new and promising national markets two of the most crucial elements in the strategic decision regarding market-entry are the level of corruption and existing trade barriers. One form of corruption that is crucially important to firms is the theft of intellectual property. In particular, software piracy has become a hotly debated topic due to the deep costs and vast levels of piracy around the world. The purpose of this paper is to assess how laissez-faire trade policies (...) and corruption affect national software piracy rates. Using invisible hand theory, as well as literature from the fields of international strategy and ethics, formal research hypotheses are posited and tested. Results suggest that corruption mediates the relationship between economic freedom and software piracy. Implications for multinational managers and researchers are also addressed. (shrink)

Char et al. aspire to provide “a systematic approach to identifying … ethical concerns” around machine learning healthcare applications, which includes artificial intelligence and...

Although the Federal Common Rule requires that informed consent documents include all material information, it does not specify the content of materials used to recruit human subjects. In particular, there is no federal regulation relating to how payment for research participation is to be advertised. Rather, the FDA has issued guidance, advising researchers not to emphasize payment information. In order to determine how IRBs have interpreted this guidance, we coded the policies of the top 100 institutions by receipt of NIH (...) funding, in order to determine whether they require, permit, or forbid researchers to disclose the amount of compensation in their recruitment materials. We found that the vast majority of institutions implicitly or explicitly permit such disclosures; however, there are a significant number of IRBs at each extreme, some discouraging or forbidding with others encouraging or mandating such disclosures. Such heterogeneity in local regulations suggests that IRB discretion may be imposing costs on human subjects and the scientific enterprise that outweigh the benefits. We suggest that this heterogeneity should be resolved towards a national consensus on permissibility. (shrink)

The payment of human subjects is an area where Institutional Review Boards have wide discretion. Although the “Common Rule” requires the provision of full information to human research participants to secure valid consent, the Rule is silent on the issue of payment. Still, some federal agencies offer guidance on the matter. For example, the National Science Foundation cautions that high payments for risky research “may induce a needy participant to take a risk that they normally would prefer not to take.” (...) For research under its purview, the Food and Drug Administration guidance provides that “[a]dvertisements may state that subjects will be paid, but should not emphasize the payment or the amount to be paid, by such means as larger or bold type.” One might read the FDA guidance to permit the advertisement for human subjects to state the specific amount of payment, as long as it is not emphasized. (shrink)

Volume 19, Issue 6, June 2019, Page 44-46.

The cultivation of an organization’s moral resources has become a priority for many executives who understand that such resources are key to competitive advantage. Yet, traditional strategic management courses at both the undergraduate and MBA levels generally overlook these resources when discussing the resource-based view of the firm. We propose that moral resources be discussed in strategic management classrooms to provide additional insight for students about the critical nature of such resources. We also provide a simple tool for faculty to (...) use in the classroom to stimulate discussion and enhance student learning in this important area. (shrink)