Empirical investigation regarding ethical decision making: a stakeholder cross-impact analysis (SCIA)

Abstract

PurposeThe purpose of this research was to study senior and middle-level executive perspectives on ethical decision-making exploring stakeholder cross-impact analysis (SCIA). Given the complexities of business today, stakeholder identification, prioritisation and complexities of reciprocal stakeholder influences have become very important. Various philosophical approaches raised questions than responses to these problems. There was a clear need to find ways through which the worldview of agents could be assimilated and understood.Design/methodology/approachThis study used the original hypothetical short case and brought in middle and senior executive reflections of Indian fast-moving consumer goods (FMCG) managers. Reflections of ten senior and 178 middle-level Indian FMCG managers were presented, exploring ethical dilemmas using short hypothetical case. These reflections have been analysed using the SCIA framework. The paired t-test was performed to compare the reflections of senior and middle-level executives.FindingsThe study results indicated that differences emerged regarding stakeholder identification, prioritisation and reciprocal stakeholder influences between Indian middle and senior FMCG executives. Hence, this study paved a reflective space for SCIA. The findings were in line with the tenets of agents’ dilemmas depicted in agency theory.Research limitations/implicationsThis study made contribution to theory by integrating the perspective of ethical dilemma confronted by organisational decision-making units (DMUs) with respect to stakeholder influence and prioritisation. Specifically, theoretical contribution was made towards SCIA.Practical implicationsThis study would help middle and senior executives to better understand the needs and complexities of stakeholder identification, prioritisation and complexities of reciprocal stakeholder influences.Originality/valueTo the best of the authors’ knowledge, this was one of the first studies from an emerging market context country like India that applied SCIA in the FMCG sector. Organisational DMUs while facing ethical dilemma undertook stakeholder influence vis-a-vis stakeholder prioritisation.