Financial services and ethical hazards: antecedents of repeated ethical violation

2019 ◽  
Vol 53 (4) ◽  
pp. 758-784
Author(s):  
Chia-Yi Cheng ◽  
Tzu-Ping Ho
Keyword(s):  
Decision Making ◽  
Development Strategy ◽  
Financial Services ◽  
Unethical Behavior ◽  
Multilevel Model ◽  
Ethical Decision Making ◽  
Behavioral Outcomes ◽  
Organizational Size ◽  
Reciprocal Determinism ◽  
Average Marginal Effects

Purpose Prior studies have extensively explored individual examples of unethical behavior in sales organizations but focused little on repeated violation (RV) of ethical codes, particularly when managers develop salesforces. Based on social learning theory (SLT), the authors propose a multilevel model of RV antecedents and suggest that organizational influence (social cues and modeling) and individual factors (observer characteristics and behavioral outcomes) affect RV, especially with increasing recruitment of salespeople. Design/methodology/approach Using data from a leading financial company in Taiwan, the authors analyzed 1,231 records of salespeople’s misbehavior through logistic regression and average marginal effects. Findings Modeling in the organization (i.e. peer misconduct), observer characteristics (i.e. experience concerning job tenure and prior violations) and behavioral outcomes (i.e. information concealment violations) were all found to affect the likelihood of RV, and the interactional effect of organizational size was confirmed. Research limitations/implications This study contributes to ethical decision-making theory by explaining aspects of RV through SLT. Its multilevel model, integrated with organizational strategy theories, adds an SLT-focused paradigm into unethical behavior research by considering vicarious learning and self-learning, alongside the reciprocal determinism of cognition, behavior, and environment. Practical implications Managers should consider socially based patterns of violation when initiating a sales business plan. The chances of RV are increased by unethical models in the organization and offenders’ potential for violations, which is reinforced by social environment. Originality/value This study clarified the key drivers of RV decision-making using SLT and identified an effective sales development strategy to maintain an ethically responsible salesforce.

Examining Ethical Decision Making Behavior in E-Learning Systems

2016 ◽  
Vol 4 (2) ◽  
pp. 41-56
Author(s):  
Richelle L. Oakley ◽  
Rahul Singh
Keyword(s):  
Decision Making ◽  
Ethical Behavior ◽  
Unethical Behavior ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Learning Systems ◽  
Situational Factors ◽  
The Social ◽  
E Learning ◽  
Decision Making Behavior

E-Learning has proliferated throughout the education sector in recent years. Unfortunately, an unintended and undesirable aspect of e-Learning is centered on unethical behavior exhibited by students engaged in technology-facilitated cheating. Interestingly, cheating in e-Learning systems occurs in the social context of the class. Using results from a qualitative field study, the authors investigate the socio-technical dimensions of ethical decision-making in e-Learning systems focusing on individual and situational factors. They developed propositions and provide an in-depth discussion of identified factors. Their findings provide the basis for researchers to develop testable propositions for further empirical investigations and provide insight for educators dealing with the unique challenges of the socio-technical dimensions of ethical behavior in e-Learning systems.

Altruism as a pathway to unethical action

2020 ◽  
Vol 36 (2) ◽  
pp. 235-247
Author(s):  
Michael Babula ◽  
Max Tookey ◽  
Glenn Muschert ◽  
Mark Neal
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Unethical Behavior ◽  
Design Methodology ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Self Esteem ◽  
Decision Makers ◽  
Content Type ◽  
The Poor

Purpose The purpose of this paper is to answer the question, “Can particular types of altruism influence people to make unethical decisions?” The purpose of seeking to answer this question is to better understand those cases in personal, public and commercial life whereby a decision-maker is influenced by what is widely perceived to be a positive thing – altruism – to make unethical choices. Design/methodology/approach An experiment was designed to test the influence of different categories of altruism on decision-making about whether to find another guilty for a regulatory transgression. This involved the establishment and running of a student panel at a UK university, which was given the task of determining the guilt or otherwise of two students accused of plagiarism – one from a poor background; one from a rich background. Through a survey of both the decision-makers and their judgments, and by analyzing the data using t-tests and Mann–Whitney tests, the associations between different categories of altruism and the decisions made could be ascertained. Findings A total of 70.7% of the participants voted “not-guilty” for the poor student, whereas 68.3% voted “guilty” for the wealthy student. This indicated that self-interested, namely, egoistic altruism complemented by social and self-esteem needs gratification was significantly associated with violating foundational ethical principles. Originality/value This is the first study to be done that attempts to evaluate the relationships between different categories of altruism and ethical decision-making. The findings here challenge aggregating all forms of empathy together when exploring the antecedents of unethical behavior.

Guest Editors’ Introduction: On Understanding Ethical Behavior and Decision Making: A Behavioral Ethics Approach

2010 ◽  
Vol 20 (1) ◽  
pp. 1-6 ◽  
Author(s):  
David De Cremer ◽  
David M. Mayer ◽  
Marshall Schminke
Keyword(s):  
Decision Making ◽  
Ethical Behavior ◽  
Unethical Behavior ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Moral Awareness ◽  
Special Issue ◽  
Behavioral Ethics ◽  
Scientific Approach ◽  
Social Scientific

AbstractBehavioral ethics is an emerging field that takes an empirical, social scientific approach to the study of business ethics. In this special issue, we include six articles that fall within the domain of behavioral ethics and that focus on three themes—moral awareness, ethical decision making, and reactions to unethical behavior. Each of the articles sheds additional light on the specific issues addressed. However, we hope this special issue will have an impact beyond that of the new insights offered in these articles, by stimulating even more research in this burgeoning field.

Does Disgust Increase Unethical Behavior? A Replication of Winterich, Mittal, and Morales (2014)

2020 ◽  
pp. 194855062094408
Author(s):  
Tamar Kugler ◽  
Charles N. Noussair ◽  
Denton Hatch
Keyword(s):  
Decision Making ◽  
Ethical Behavior ◽  
Unethical Behavior ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
The Relationship

We consider the relationship between disgust and ethical behavior. Winterich, Mittal, and Morales report several experiments finding that disgust increases unethical behavior. We replicated three of their studies, using high-powered designs with a total of 1,239 participants, three different procedures to induce disgust, and three different measures of unethical behavior. We observe no effect of disgust on unethical behavior in any of the studies, supporting the contention that disgust has no effect on ethical decision making.

The power of Australian small accounting firms’ unethical exposure

2015 ◽  
Vol 11 (3) ◽  
pp. 467-481
Author(s):  
Connie S Zheng ◽  
Soheila Mirshekary
Keyword(s):  
Decision Making ◽  
Unethical Behavior ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Firm Level ◽  
Accounting Firms ◽  
Content Type ◽  
Personal Attitudes ◽  
Decision Making Model ◽  
Policies And Practices

Purpose – The purpose of this paper is to investigate small business owner/manager’s exposure to unethical behavior, and to examine the influence of unethical exposure on organizational intention to implement ethical policies and practices. Design/methodology/approach – Using a sample of 209 Australian small accounting firms with a path analysis, this paper adopts a modified ethical decision-making model to test the relationship between exposure and personal attitudes toward unethical behavior, and the relationship between exposure and intentions to implement ethical policies and practices at firm level. Findings – The results show that increased exposure to unethical behavior triggered stronger personal attitudes with small accounting firm owners/managers tending toward accepting unethical behavior. In contrast, at the firm level, more exposure to unethical behavior creates cautious overtones and motivates owners/managers to take action and implement more ethical policies, with the underlying aim of addressing serious ethical issues. Research limitations/implications – The study tests the ethical decision-making model but focuses only on three constructs (i.e. exposure, attitude and response). The aim is to examine whether extensive exposure to unethical behavior would change personal attitudes toward accepting such behavior, and whether unethical exposure would trigger firm owner/managers to take action and address the ethical dilemma by establishing some ethical guidelines. Other important variables (such as subjective norm, personal locus of control) embedded in the ethical decision-making model should be included in future research. Practical implications – The study draws attention to ethical dilemmas encountered by many small accounting professionals and their organizations. It addresses the importance of upholding the ethical standard and avoiding the extensive exposure to unethical behavior. It also emphasizes the needs for small businesses to establish some ethical policies and practices. Originality/value – The paper is purposely set out to reduce the gap in studying how small accounting firms make decisions in implementing their ethical policies and practices to address the rampant ethical dilemma faced by their employees as a result of many corporate scandals and financial crises of the past decade. The results are particularly valuable for small accounting firm owners/managers. The findings also have educational and policy implications.

scholarly journals Ethics in Organization and Management

2020 ◽  
Vol 1 (3) ◽  
pp. 67-74
Author(s):  
Thomas Joseph
Keyword(s):  
Decision Making ◽  
Unethical Behavior ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Decision Makers ◽  
Global Environment ◽  
Organization And Management ◽  
Self Sufficiency ◽  
Care And Justice ◽  
Compare And Contrast

A fundamental challenge for scholars and practitioners of organization and management is the integration of theoretical ethics with practical decision-making. This article discusses the historical evolution of ethics in organization and management through today. Additionally, the article utilizes a compare and contrast approach of three contemporary theories of ethical decision-making, namely ethics of virtue, ethics of care, and ethics of justice, to implicate their applicability to practice under conditions of globalization. Ethics of virtue, care, and justice share common concepts imperative for organizations in a global environment. They address the idea of equality and self-sufficiency and are concerned with the establishment and sustenance of lasting relationships. Organizations can, therefore, succeed in any environment providing that decision makers make the effort to adhere to standards that are moral, fair, caring, and just. Every unethical behavior should be condemned.

Toward Understanding Ethical Decision Making

2010 ◽  
Vol 1 (4) ◽  
pp. 25-43 ◽  
Author(s):  
Jennie Johnson ◽  
Tom Coyle
Keyword(s):  
Decision Making ◽  
Social Desirability ◽  
Unethical Behavior ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Decision Making Process ◽  
Social Desirability Bias ◽  
Current Economic Crisis ◽  
Management Literature ◽  
Different Populations

This paper proposes a step-wise methodology for the development of a scale measuring intent-to-act ethically, which is a step forward in the ethical decision-making process. To test the robustness of the methodology, data from two different populations gathered from 75 students and 181 professionals were examined to ensure reliability in ethical workplace scenarios. This research is relevant to recent issues like the current economic crisis lead by the sub-prime banking failures. The failures of Enron and Tyco are extreme examples of failure of societal members to act ethically. The construction of scale-measuring items was based on a theory of intent, and issues identified from the human resource management literature related to reasons employees do not report perceived unethical behavior in the workplace. Tested for social desirability bias, the results show that the proposed scale offers an improved reliability for assessing behavioral intent related to ethical decision-making. With these findings, this paper provides a tool for research that relies on a measure of ethical intent as a proxy for ethical behavior.

scholarly journals Ethical Decision Making Based On The Literature Review Of Ford & Richardson 1962 - 1993

2020 ◽  
Vol 18 (1) ◽  
pp. 1
Author(s):  
Suryadi Winata ◽  
Agus Kusnawan ◽  
Limajatini Limajatini ◽  
Eso Hernawan
Keyword(s):  
Decision Making ◽  
Literature Review ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Peer Group ◽  
Organizational Size ◽  
Group Influence ◽  
Ethical Judgments ◽  
Organizational Effects

The objective of this study is to review ethical judgments of Accountants from 1962 to 1993. The research uses the literature review of Ford and Richardson, 1994 on the empirical ethical decision making. The results show that ethical factors individual, situational, organizational influencing ethical decision making (EDM) are organizational effects, organizational size, and peer group influence and Machiavellinism is also the significant factor in individual EDM

Copyright, Piracy, Privacy and Security Issues

2011 ◽  
pp. 40-56
Author(s):  
Jennifer Kreie ◽  
Timothy Paul Cronan
Keyword(s):  
Decision Making ◽  
Ethical Behavior ◽  
Unethical Behavior ◽  
Ethical Decision Making ◽  
Business And Society ◽  
End User ◽  
Privacy And Security ◽  
Security Issues ◽  
Computer Information Systems ◽  
Unacceptable Behavior

End user acceptable/unacceptable behavior related to computer information systems has caused significant losses to business and society. Some measures have been suggested to prevent losses or discourage unethical behavior. One approach is to identify factors that might better explain acceptable/unacceptable actions. In this study, we examined models of ethical behavior and selected factors from these models that might influence decision-making. We conducted an empirical study to determine perceptions of acceptable or unacceptable behavior and which factors were significant in influencing a person’s judgment of acceptable/unacceptable behavior. Identifying the factors that influence ethical decision-making is one approach suggested by researchers to find ways to discourage unethical behavior and help businesses prevent losses. The results of the study indicate there are significant factors that affected individuals’ assessment of what is acceptable behavior. The results also indicate that the factors which were influential were contingent on the characteristics of the ethical dilemma.

Awareness and Decision Making in Professional Ethics

2000 ◽  
Vol 5 (1) ◽  
pp. 19-27 ◽  
Author(s):  
Ronny Swain
Keyword(s):  
Decision Making ◽  
Professional Ethics ◽  
Ethical Decision Making ◽  
Code Of Ethics ◽  
Professional Autonomy ◽  
Ethical Awareness ◽  
Ethical Decisions ◽  
The Right ◽  
Aid Decision

The paper describes the development of the 1998 revision of the Psychological Society of Ireland's Code of Professional Ethics. The Code incorporates the European Meta-Code of Ethics and an ethical decision-making procedure borrowed from the Canadian Psychological Association. An example using the procedure is presented. To aid decision making, a classification of different kinds of stakeholder (i.e., interested party) affected by ethical decisions is offered. The author contends (1) that psychologists should assert the right, which is an important aspect of professional autonomy, to make discretionary judgments, (2) that to be justified in doing so they need to educate themselves in sound and deliberative judgment, and (3) that the process is facilitated by a code such as the Irish one, which emphasizes ethical awareness and decision making. The need for awareness and judgment is underlined by the variability in the ethical codes of different organizations and different European states: in such a context, codes should be used as broad yardsticks, rather than precise templates.

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