Consequently, this study investigated the relationships among moral intensity, perceived ethical issue importance, and three stages of the ethical reasoning process: recognition of an ethical issue, ethical judgment, and ethical intention. ) to ethical decision making, may differ from other functional areas of an organization. In addition, prior work has also not adequately investigated how the operational context of an organization, which may embody conditions or practices that create barriers (. However, prior research has not explored how the various dimensions of moral intensity might differentially affect PIE, or how moral intensity might function together with (or in the presence of) PIE to influence ethical decision making. Previous work suggests that moral intensity and the perceived importance of an ethical issue can influence individual ethical decision making. But firms differ substantially in their efforts to see that those policies or codes actually are put into practice. In effect, the vast majority of firms have committed to the low cost, possibly symbolic side of ethics management (e.g., adoption of ethics codes and policies, etc.). ) degree of corporate adoption of ethics policies, but wide variability in the extent to which these policies are implemented by various supporting structures and managerial activities. The study examines the following aspects of formalized corporate ethics activity: ethics-oriented policy statements formalization of management responsibilities for ethics free-standing ethics offices ethics and compliance telephone reporting/advice systems top management and departmental involvement in ethics activities usage of ethics training and other ethics awareness activities investigatory functions and evaluation of ethics program activities. This empirical study of Fortune 1000 firms assesses the degree to which those firms have adopted various practices associated with corporate ethics programs. I conclude with implications for further research and ethical decision making in business. Besides explaining the processes of forming and applying principles, I briefly describe rational egoism and illustrate the model with a contemporary moral dilemma of downsizing. Following the CEOs in the study, I employ a relatively new theory, rational egoism, as the substantive content of the model and argue it to be consistent with the requirements of long-term business success. ) principles necessary for long-term success in business. Based on data from a study on strategic decision making by 16 effective chief executive officers, I propose a model for ethical decision making in business in which reasoning and intuition interact through forming, recalling, and applying moral (. Unethical decisions harm the decision makers themselves as well as others, whereas ethical decisions have the opposite effect. How do business leaders make ethical decisions? Given the significant and wide-spread impact of business people’s decisions on multiple constituents, how they make decisions matters. Normative implications of the study are discussed, as are implications for future theorizing, research and management practice. ![]() Ethical culture and ethical climate-based factors influenced organizational commitment similarly in both types of organizations. Regression results indicated that an ethical culture-based dimension was more strongly associated with observed unethical conduct in code organizations while climate-based dimensions were more strongly associated with observed unethical conduct in non-code organizations. ) respondents who work in organizations with and without ethics codes. We then investigated the relationships between the emergent ethical context factors and an ethics-related attitude (organizational commitment) and behavior (observed unethical conduct) for (. ![]() Results suggested that the two constructs are measuring somewhat different, but strongly related dimensions of the ethical context. ![]() We first examined issues of convergence and divergence between these constructs through factor analysis and correlational analysis. Abstract:This field survey focused on two constructs that have been developed to represent the ethical context in organizations: ethical climate and ethical culture.
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