Ethical decision-making in purchasing channels: A context of developing B2B markets

Abstract

ABSTRACT The present study analyses the responses of supply chain professionals facing certain ethical situations while performing their strategic tasks. The objective of this empirical investigation is to link the six dimensions of moral intensity (magnitude of consequences, proximity, probability of effect, social consensus, temporal immediacy, and concertation of effect) and two dimensions of ethical ideology (idealism and relativism) with three sequential phases of EDM (Ethical Decision Making), i.e. recognition, judgement, and intention, while purchasers are exposed to ethical dilemmas in B2B context. A mixed experimental research methodology was employed to analyse the responses of 289 purchasing professionals from a developing country. Six dimensions of moral intensity were manipulated into three conditions (Low, High, and Control) using 18 originally constructed purchase scenarios. The study’s findings reveal that idealism, relativism, and moral intensity are associated mainly with ethical decision-making stages. Among four sets of ethical ideologies, absolutists were found to be more ethical. The study concludes by giving future research directions and implications for practitioners.