Ethical Sensitivity and Managerial Decisionmaking: An Experiment

Abstract

This paper reports the results of a behavioral study in ethical decisionmaking. The study appears to be the first to create and test an instrument to measure ethical perception and sensitivity in managerial decisionmaking situations. Recent conceptual models of ethical decisionmaking for managerial situations have included ethical perception, although no empirical studies in management have attempted to measure the concept or relate it to other decisionmaking variables. Employing an experimental methodology, the study also varies personalized information in order to test differential effects on ethical sensitivity. Results support the hypothesis that increased ethical sensitivity is related to decision outcome. Findings also generally support the hypothesis that increased levels of personalized information result in higher levels of ethical sensitivity in decisionmaking situations. Besides providing empirical grounding (although very explanatory) for the concept of ethical sensitivity, the findings suggest that if education and training can increase ethical sensitivity, it is likely to have an impact on decisionmaking.