A dynamic and cyclical model of bounded ethicality

We introduce a new model of bounded ethicality which helps explain three persistent puzzles of ethical behavior: when moral awareness is or is not present, when ethical behavior is more or less consistent with past behavior, and when blind spots obscure our ethical failures. The original conception of bounded ethicality (Chugh, Banaji, & Bazerman, 2005) described the systematic psychological constraints on ethical behavior and has contributed to our field's understanding of the phenomena of everyday, “ordinary” unethical behavior. In this more detailed model, we delineate these systematic processes and mechanisms and show how concepts of automaticity, self-view, and self-threat play critical roles in our ethical decision-making. The model describes distinct, asymmetric patterns of (un)ethical behavior and pinpoints the contingency which determines which pattern is more likely to unfold, including when we will trend to more or less automaticity and more or less ethical behavior. Our model integrates and synthesizes many of the key models and findings in recent behavioral ethics research into a single, overarching model of ethical decision-making, offering an anchor for new questions and a new realm of study.     

An organizational climate regarding ethics: the outcome of leader values and the practices that reflect them

In this article, we argue that the organizational climate regarding ethics — the shared perception of what is ethically correct behavior and how ethical issues should be handled within an organization — is an outgrowth of the personal values and motives of organizational founders and other early organizational leaders. We begin by arguing that one common label for the climate regarding ethics construct — “ethical climate” — is inappropriate. We also argue that climate regarding ethics has an impact on organizational outcomes, including organizational outcomes that do not have explicit ethical components. We propose that this impact largely occurs through the mediating mechanisms of organizational cohesion and morale. We conclude by discussing the variety of antecedents and outcomes related to climate regarding ethics.     

Self‐Service Operations at Retail Stores: The Role of Inter‐Customer Interactions

Inter‐customer interactions are important to the operation of self‐services in retail settings. More specifically, when self‐service terminals are used as part of customers’ checkout processes in retail operations without the explicit involvement of retailers as the direct service providers, inter‐customer interactions become a significant managerial issue. In this article, we examine the impact of inter‐customer interactions at retail self‐service terminals on customers’ service quality perceptions and repeat purchase intentions at retail stores. We conduct a scenario‐based experimental design (N = 674) using a 2 × 2 factorial design in which inter‐customer interactions are divided into “positive” vs. “negative” and occur during the “waiting” or during the actual “transaction” stages of self‐services at a retail store. We use attribution theory to develop the hypotheses. The results demonstrate that, through their interactions, fellow customers can exert influences on a focal customer's quality perceptions and repeat purchasing intentions toward a retail store. Furthermore, these influences were impacted by how customers attribute blame or assign responsibility toward the retail store. Service operations managers should leverage these interactions by designing into self‐service settings the capacities and interfaces that are best suited for customers’ co‐production of their self‐service experiences.     

The new age of ethical marketing for the 21st century

The premise of this paper is that the strong trends toward ever increasing centralization in the agricultural producing sector of the United States in the 1980s will exacerbate in the middle-to-late 1990s. This, in turn, will lead to both radical changes in the consumer movement by the year 2000, and also to a completely redefined mission for the corporate marketing function as well. Specifically, the deliberate federal policies of the 1980s which led to a “shake-out” of the small family farm units in favor of large agri-business concerns in order to reduce federal subsidies will lead, in the 1990s, to the most noted of deleterious consequences of monopolization, namely ever increasing prices and lowered quality. The authors believe that by the late 1990s the American public will perceive this state of affairs as being intolerable and it will lead them to organize “Big Consumerism”, a cohesive, much strengthened version of the consumer movement of the 1980s. This movement will, among other major activities, establish consumer cooperatives as a way to control costs through the elimination of unnecessary middlemen. In addition, this new consumerism will demand a change in the ethical standards of business behavior which, in turn, will result in a reformation in the role of the “New Marketer”. This “New Marketer” function will be envisioned and practiced by incumbents as informational and educational, adhering to the highest standards of truthfulness concerning the products they are attempting to market. In this regard, the role of governmental agencies will be greatly strengthened and expanded to insure that the marketing profession lives up to these highest ethical standards and practices.     

Predicting Cancer‐Prevention Behavior: Disentangling the Effects of Risk Aversion and Risk Perceptions

Experimental and survey research spanning the last two decades concludes that people who are more risk tolerant are more likely to engage in risky health activities such as smoking and heavy alcohol consumption, and are more likely to be obese. Subjective perceptions of the risk associated with different activities have also been found to be associated with health behaviors. While there are numerous studies that link risk perceptions with risky behavior, it is notable that none of these controls for risk aversion. Similarly, studies that control for risk aversion fail to control for risk misperceptions. We use a survey of 474 men and women to investigate the influence of risk aversion, risk misperceptions, and cognitive ability on the choice to engage in behaviors that either increase or mitigate cancer risk. We measure optimism in two dimensions: baseline optimists are those who inaccurately believe their cancer risk to be below its expert‐assessed level, while control optimists are those who believe they can reduce their risk of cancer (by changing their lifestyle choices) to a greater extent than is actually the case. Our results indicate that baseline optimism is significantly and negatively correlated with subjects′ tendencies to engage in cancer‐risk‐reducing behaviors, and positively correlated with risky behaviors. Subjects’ control misperceptions also appear to play a role in their tendency to engage in risky and prevention behaviors. When controlling for both of these types of risk misperception, risk aversion plays a much smaller role in determining health behaviors than found in past studies.     

An Ethical Analysis of the Second Amendment: The Right to Pack Heat at Work

We examine the issues concerning the legality and ethicality of the Second Amendment right to bear arms balanced by the employer's duty to provide a safe workplace for its employees. Two court rulings highlight this balancing act: McDonald et al. v. City of Chicago et al. and District of Columbia v. Heller. “Stand Your Ground” and “Castle Doctrine” laws in the recent Trayvon Martin shooting on February 26, 2012 are also applicable. Various ethical frameworks examine the firearms debate by viewing the Second Amendment from three perspectives. These include a pro‐gun perspective drawing upon libertarianism and fundamental rights; a moderate gun perspective drawing upon consequentialism and stakeholder theory; and finally, an anti‐gun perspective drawing upon a Public Health Ethics and peace ethics approach. We explore the issue of gun control from a business perspective as employers face ethical decisions in responding to legislation that allows guns in the workplace and/or in employer parking lots while still being responsible to provide a safe workplace for their employees. We make recommendations regarding how companies should manage by proactively avoiding legal challenges to employees' rights to own and carry guns into the workplace. This includes emphasis on enhanced security, Human Resource policies and monitoring rapidly changing laws.     

13 Ethical Decision Making: Where We’ve Been and Where We’re Going

Abstract

Research on ethical decision making, or behavioral ethics, in organizations has developed from a small niche area to a burgeoning stand‐alone field, one that has gained not only in number of articles written but in the legitimacy of the topic and the field. Our review motivated us to first try and summarize the field, not by comparing it to existing theoretical paradigms, but rather by observing what the data were telling us. We present our summary in the form of a model of ethical decision making and a typology that distinguishes intentionality of actions from ethicality of actions. After presenting this summary of the data, we critically review the research in this area, noting those areas which offer substantial insight and those that do not. In looking to the future and how the field can enhance the former and mitigate the latter, we identify several areas in which meaningful progress can be made, including defining what is “ethical”, revisiting unsubstantiated assumptions, focusing on the processes of ethical decision making, fixing methodological issues, and disentangling the outcomes of ethical decisions.     

The impact of ethical leadership within the recruitment context: The roles of organizational reputation,applicant personality,and value congruence

The present research examined the effects of corporate executive officer (CEO) ethical leadership on the job pursuit attitudes and behaviors of prospective job applicants. Furthermore, this paper tested two potential mediatory mechanisms for explaining why CEO ethicality matters to prospective applicants: perceived organizational reputation (Study 1) and perceived value congruence with the CEO or person–CEO fit (Study 2). The results of Study 1 showed that job seekers at a career fair were more likely to apply for a job with an ethical CEO's company, compared to that of a morally-questionable CEO or one whose ethicality was unknown. The results also showed that perceived organizational reputation mediated the relationship between CEO ethicality and job pursuit. These findings were replicated in Study 2. In addition, Study 2 showed that perceived value congruence with the CEO also mediated the link between CEO ethicality and job pursuit, although this effect was conditional on the Honesty–Humility personality of the prospective job applicant. These findings highlight the potential relevance of executive ethical leadership within the recruitment context.     

Prophets vs. profits: How market competition influences leaders' disciplining behavior towards ethical transgressions

We investigate how market competition influences the way leaders discipline employees' ethical transgressions. A cross-sectional study among organizational leaders (Study 1) revealed that strong market competition is related to an instrumental decision frame (business practices are more focused on serving the organization's interest). This decision frame explains why strong market competition is related to leaders' perceptions of the evaluation of wrongdoing in terms of instrumental rather than moral concerns. Two experiments (Studies 2 and 3) show that increased market competition makes leaders' disciplining of ethical transgressions more contingent upon the transgression's instrumentality to the organization: the same ethical transgression is punished less when it resulted in profit than when it resulted in loss. This research is among the first to identify conditions that determine disciplinary responses of organization leaders to ethical transgressions, and it feeds the debate on whether market competition promotes the display of unethical behavior within organizations.     

Insider Information: The Ethicality of the High Frequency Trading Industry

This study explores the ethical perceptions of employees in the financial industry. Focusing on the high frequency trading (HFT) industry, it analyses a series of interviews with HFT employees (managers, computer programmers and traders). It shows that regulations and firm rules profoundly affect HFT practices. However, they do not provide employees with answers for their ethical questions. To judge the ethicality of HFT, employees choose reference stakeholder groups and assess the way HFT impacts them. The perception that HFT has a positive effect on stakeholder groups is associated with moral satisfaction, whereas the perception that it has a negative effect is related to emotional detachment, sense of meaninglessness and turnover intent. The high variance in employees’ choices of stakeholder reference groups emphasizes the subjectivity and uncertainty that HFT ethicality entails. Therefore, this study suggests that the financial industry may lack moral leadership. It makes empirical and theoretical contributions to the ‘business ethics as practice’ theory and examines management and regulatory applications.     

A reconceptualization of authentic leadership: Leader legitimation via follower-centered assessment of the moral dimension

We explore some challenges that face authentic leadership scholarship including problems related to how the construct is understood and measured. We present a model of authentic leadership that looks at it, not as a leadership style, but as an outcome of a legitimation process. Authentic leadership represents legitimated follower perceptions of a leader's authenticity which are activated by moral judgments. We explain how a follower-centered assessment of the moral component helps explain leadership dynamics in situations involving ethical relativism, thus alleviating concerns regarding the presumed moral component of the construct. The overlap between leaders' and followers' value systems leads to impressions of authenticity, even in cases in which there are no clear universal moral standards. An authentic person's behavior cannot be labeled as “leadership” unless it is embraced by a follower who grants moral legitimacy to the leader. We then discuss the implications of our study for scholars and practitioners.     

Do honesty and high ethical standards really pay?

This question is considered from the personal side as well as the organizational side. An attempt is made to avoid purely philosophical arguments, but instead to list specific ways honesty and high ethical standards either do pay or do not pay. No absolute conclusion, “yes” or “no”, can be drawn since there are times and situations when, if not managed carefully, honesty and high ethical standards can work to the detriment of both the individual and the corporation. Sources of honesty and high ethical standards are also examined from both the individual and organizational perspectives. The best situation is when there is strong individual and corporate commitment buttressed by supporting structures that balance the needs of individuals, their companies, and society as a whole.     

Physician anger--Part 1. Changing perception: an interview with Charles E. Dwyer, PhD. Interview by Richard L. Reece.

On January 21, Richard Reece, MD, interviewed Charles E. Dwyer, PhD, to talk about solutions for changing the perceptions of today's beleaguered physicians. He discusses the state of affairs of physician executives in this turbulent industry and how they need to move beyond their thinking about organizations and their current responses to change. The key, Dwyer emphasizes, is influencing people to do what you want them to do. "If you want somebody to do something other than what they are doing now, then you must bring them to perceive that what you want them to do is better than what they are doing now in terms of what is important to them." He also explores how physicians can change their responses to the health care environment: "You can actually decide how you are going to respond conceptually, emotionally, and behaviorally to anything that happens in your life." Part 2 of this interview will appear in the upcoming May/June issue and will provide hands-on strategies for dealing with physician anger, fear, and resentment.     

Management-Derailment und System-Derailment

The discussion about Management Derailment (MD) has been intensifying in the past few years. We want to contribute to this discussion by considering MD in connection with System Derailment, a topic that is often the subject of debates on economic and business ethics. The current debate is characterized by the notion that in order to increase profits, companies employ more and more ethically questionable and sometimes illegal practices. In particular, we propose that socially irresponsible corporate governance corresponds with morally derailed members of the (a) top management, and (b) with mid and lower management. Specifically, we ask if moral derailment by top managers (“bad management”) can also lead to economic derailment (“mad management”), while ongoing work pressures for mid and lower managers can also be linked to their moral and individual derailment (“sad management”).     

The Rise of Global Warming Skepticism: Exploring Affective Image Associations in the United States Over Time

This article explores how affective image associations to global warming have changed over time. Four nationally representative surveys of the American public were conducted between 2002 and 2010 to assess public global warming risk perceptions, policy preferences, and behavior. Affective images (positive or negative feelings and cognitive representations) were collected and content analyzed. The results demonstrate a large increase in “naysayer” associations, indicating extreme skepticism about the issue of climate change. Multiple regression analyses found that holistic affect and “naysayer” associations were more significant predictors of global warming risk perceptions than cultural worldviews or sociodemographic variables, including political party and ideology. The results demonstrate the important role affective imagery plays in judgment and decision‐making processes, how these variables change over time, and how global warming is currently perceived by the American public.     

Re-imagining ethical leadership as leadership for the greater good

As Western nations slowly emerge from the recent global recession, there is demand among citizens for authorities to practice, and be seen to practice, ethical leadership. Although these conditions have been favourable for research into ethical leadership, extant research privileges westernized perspectives on ethical leadership and is largely silent on the meaning and practice of ethical leadership in the context of the ‘big’ ethical questions. In consequence, most research into ethical leadership, although well meaning, offers little guidance about how to imagine and implement sustainable, ethical solutions to systemic problems. In this research note, we outline a proposal to reimagine ethical leadership as leadership for the greater good and identify three avenues of research into leadership for the greater good that compliment existing critical perspectives on ethical leadership.     

Precision of Information,Sensational Information,and Self‐Efficacy Information as Message‐Level Variables Affecting Risk Perceptions

Studies that investigate how the mass media cover risk issues often assume that certain characteristics of content are related to specific risk perceptions and behavioral intentions. However, these relationships have seldom been empirically assessed. This study tests the influence of three message‐level media variables—risk precision information, sensational information, and self‐efficacy information—on perceptions of risk, individual worry, and behavioral intentions toward a pervasive health risk. Results suggest that more precise risk information leads to increased risk perceptions and that the effect of sensational information is moderated by risk precision information. Greater self‐efficacy information is associated with greater intention to change behavior, but none of the variables influence individual worry. The results provide a quantitative understanding of how specific characteristics of informational media content can influence individuals’ responses to health threats of a global and uncertain nature.     

Can a leader be seen as too ethical? The curvilinear effects of ethical leadership

Ethical leadership predicts important organizational outcomes such as decreased deviant and increased organizational citizenship behavior (OCB). We argued that due to the distinct nature of these two types of employee behaviors, ethical leadership decreases deviance in a linear manner (i.e., more ethical leadership leading to less deviance), but we expected ethical leadership to reveal a curvilinear relationship with respect to OCB. Specifically, we expected that, at lower levels, ethical leadership promotes OCB. However, at high levels, ethical leadership should lead to a decrease in these behaviors. We also examined a mechanism that explains this curvilinear pattern, that is, followers' perceptions of moral reproach. Our predictions were supported in three organizational field studies and an experiment. These findings offer a better understanding of the processes that underlie the workings of ethical leadership. They also imply a dilemma for organizations in which they face the choice between limiting deviant employee behavior and promoting OCB.     

Industrial Safety and Utopia: Insights from the Fukushima Daiichi Accident

Feedback from industrial accidents is provided by various state or even international, institutions, and lessons learned can be controversial. However, there has been little research into organizational learning at the international level. This article helps to fill the gap through an in‐depth review of official reports of the Fukushima Daiichi accident published shortly after the event. We present a new method to analyze the arguments contained in these voluminous documents. Taking an intertextual perspective, the method focuses on the accident narratives, their rationale, and links between “facts,” “causes,” and “recommendations.” The aim is to evaluate how the findings of the various reports are consistent with (or contradict) “institutionalized knowledge,” and identify the social representations that underpin them. We find that although the scientific controversy surrounding the results of the various inquiries reflects different ethical perspectives, they are integrated into the same utopian ideal. The involvement of multiple actors in this controversy raises questions about the public construction of epistemic authority, and we highlight the special status given to the International Atomic Energy Agency in this regard.     

Perceptions of ethical climate and organizational justice as antecedents to employee performance: The mediating role of employees' attributions of leader effectiveness

The primary purpose of this study was to investigate the mediating role of employee attributions of leader effectiveness on relationships between perceptions of (a) ethical climate and (b) organizational justice and both positive and negative types of performance. We argue that these relatively under-investigated perceptions are critical antecedents to effective productivity in the workplace. Accordingly, this study is the first to examine the associations of both ethical climate and organizational justice on both positive and negative performance within the context of mediation via employee attributions of leader effectiveness. Based on online survey data from 2486 Romanian employees, our SEM-based findings reveal that the attribution of leader effectiveness functions as a mediator between the associations of ethical climate and justice perceptions on two distinct types of performance: (1) Organizational Citizenship Behavior (OCB) and (2) Counterproductive Work Behaviors (CWB).Additionally, the results revealed that trait negative affect moderates the mediating role of leader effectiveness with OCB but not with CWB. This study contributes to the recent and growing interest in the mediating role of attributions regarding work performance. Several theoretical contributions and practical implications are discussed concerning leader-specific attributions, employee empowerment, and employee performance. Most prominently, we discuss why individuals with strong trait negative affect may engage in CWB without the influence of ethical climate or organizational justice.