The paper uses questionnaire responses provided by a sample of ethical investors to investigate willingness to sacrifice ethical considerations for financial reward. The paper examines the amount of financial reward necessary to cause an ethical investor to accept a switch from good ethical performance to poor ethical performance. Conjoint analysis is used to allow quantification of the utilities derived from different combinations of ethical and financial performance. Ethical investors are shown to vary in their willingness to sacrifice ethical for financial (...) performance, and hence to display more heterogeneity than the all-encompassing ‘ethical’ label implies. Because of the existence of sub-groups of ethical investors with different attitudes towards financial reward, an attempt has been made to associate observable investors’ characteristics with their level of willingness to trade-off morality for cash. One sub-group of investors in particular appears highly resistant to the idea of accepting higher financial return as compensation for poor ethical performance. This unwillingness casts doubt on Jensen and Meckling’s widely reported claim that trade-off behaviour is ubiquitous in all areas of life. (shrink)

Previous research on moral dilemmas has mainly focused on decisions made under conditions of probabilistic certainty. We investigated the impact of uncertainty on the preference for action (killing one individual to save five people) and inaction (saving one but allowing five people to die) in moral dilemmas. We reported two experimental studies that varied the framing (gain vs loss), levels of risk (probability of gain and loss) and levels of ambiguity (imprecise probability information) in the choice to save five individuals (...) by sacrificing one. We found that participants preferred actions with uncertainty (risk/ambiguity) over inaction. Specifically, we found that participants preferred actions with precise probability information (risk) over inaction, and they preferred actions with modest or high levels of ambiguity over actions with precise probabilities, especially when moral dilemmas had a loss frame. We also observed commission bias in Study 2. We discussed the implications for research in moral decision-making. (shrink)