Business Ethics Research Research Articles

Make business ethics a cumulative science

Business ethics research is not currently a cumulative science, but it must become one. The benefits to humanity from research that helps firms improve their ethics could be enormous, especially if that research also shows that strong ethics improves the effectiveness of companies.

Business ethics research in the hospitality industry: topics, methods and trends

This study investigates how business ethics research has evolved in hospitality management (HM). This evolution is explored using bibliometrics from articles related to ethics published in HM journals indexed in SSCI. This study provides a broad view on ethics research in HM related to topics discussed, methods employed, and trends. As a first study of HM with a business ethics focus, the findings show several things. First, there has been a significant increase in the number of such articles. Second, the most popular topics are corporate social responsibility and natural environmental issues. Third, quantitative methods and primary data provided by hotels are dominant in many studies; qualitative, hybrid research approaches, and advanced statistical methods have become more common in recent years. Accordingly, referring to the findings related to this study, this article presents limitations of the study and future steps.

Business ethics research in the hospitality industry: topics, methods and trends

Business ethics research in the hospitality industry: topics, methods and trends

The Risk of Fraud in Family Firms: Assessments of External Auditors

There is a dearth of business ethics research on family firms, despite the importance of such firms to the U.S. economy (Vazquez 2016). We answer Vazquez’s (2016) call to examine the intersection of family firms research and business ethics, by investigating whether external auditors assess higher risk of fraud in family firms. We test the contradictory predictions of two dominant theoretical perspectives in family-firm research — entrenchment theory and alignment theory. We conduct an experiment with highly experienced external audit professionals, who assess the risk of fraud and make client acceptance decisions for family firms versus non-family firms with different strength of corporate governance: strong versus weak audit committees (AC). We find that auditors assess the risk of fraud as higher for family firms than for non-family firms, consistent with the predictions of entrenchment theory. Auditors are also less likely to make client acceptance recommendations for family firms. The strength of the AC moderates the family-firm effect, whereby auditors assess family firms with weak ACs to have the highest fraud risk, and to be the least desirable audit clients. Our findings suggest that auditors perceive more severe agency conflicts to be present in family firms than in non-family firms, consistent with entrenchment theory, according to which family members may behave opportunistically to extract rents and potentially expropriate the firm’s resources at the expense of minority shareholders.

Gender, Management Styles, and Forms of Capital

Extant research notes a tendency to propound the idea that female managers are secondary to men. Gender differences constitute an ethical issue and the discursive constructions of gender management are central to research in business ethics. Drawing on evidence gathered from a time–space intersection that has been widely neglected by research in this area, we address whether female business leaders develop gender-stereotypic management styles as well as their propensity to adopt masculine management patterns such as making risky decisions and implementing formal management systems (e.g. accounting reports). Our findings suggest that gender-stereotypic management styles are chosen strategically and target-driven, which implies a selective use of masculine and feminine management styles. Furthermore, as part of the masculine approach, female business owners adopt risk-taking decisions and implement formal management systems. Our results provide support for the argument that gender is context dependent and, hence, the findings of this study may be useful for contemporary jurisdictions featuring male-dominated societies and a strong intervention by the State in the economy.

How Friedman’s View on Individual Freedom Relates to Stakeholder Theory and Social Contract Theory

Friedman’s view on corporate social responsibility (CSR) is often accused of being incoherent and of setting rather low ethical standards for managers. This paper outlines Friedman’s ethical expectations for corporate executives against the backdrop of the strong emphasis he puts on individual freedom. Doing so reveals that the ethical standards he imposes on managers can be strictly deduced from individual freedom and that these standards involve both deontological norms and the fulfillment of particular stakeholder expectations. These insights illustrate the necessity to reconsider how Friedman’s approach relates to other important normative theories of business ethics. Contrasting Friedman’s approach with stakeholder theory and integrative social contract theory—when considering the importance he assigns to individual freedom—shows how and why these approaches differ. Still, the comparison also highlights striking similarities. This paper contributes to a better understanding of Friedman’s position—which is still one of the most influential approaches in business ethics research—because it enables a differentiated look at its strengths and weaknesses.

Qualitative Methods in Business Ethics, Corporate Responsibility, and Sustainability Research

An introduction to the journal is presented in which the authors discuss the challenges faced by qualitative authors and the guidance which can be considered in the qualitative methods of writing.

Coping with Loneliness Through Materialism: Strategies Matter for Adolescent Development of Unethical Behaviors

Engaging in unethical consumption behaviors is an acute societal problem that can have severe consequences for adolescents, and businesses in particular have been accused of making such consumption particularly appealing and accessible. However, the causes of unethical behaviors are not well understood and research on the causes has been mixed. In this research, we investigate the effects of coping strategies for loneliness on adolescents’ adoption of unethical behaviors, a topic that business ethics research has not explored. In a large-scale study (n = 409) of adolescents (ages 13–17), we show that whether loneliness leads to the adoption of unethical behaviors depends on the strategies adolescents use to cope with their loneliness: active coping strategies are associated with fewer unethical behaviors, whereas passive coping strategies are associated with more unethical behaviors. In addition, we show that active and passive coping strategies can be executed through consumption practices. We show that the relation between active coping and fewer unethical behaviors is mediated by sharing of possessions, whereas the relation between passive coping strategies and more unethical behaviors is mediated by product acquisition. Finally, we also show that these mediated relations differ as a function of age cohort (grade level). The indirect effect of active coping on fewer unethical behaviors via sharing holds only for middle school adolescents, whereas the indirect effect of passive coping on more unethical behaviors via product acquisition holds only for high school adolescents. We shed new light on both the bright and dark sides of materialism and unethical behaviors and provide practical implications for research on loneliness, business ethics, and unethical behaviors.

Guest Editors’ Introduction:Human Dignity and Business

ABSTRACT:After a brief historical introduction, three interpretations of dignity in relation to management theory and business ethics are elaborated: Dignity as a general category, Human Dignity as Inherent and Universal, and Human Dignity as Earned and Contingent. Next, two literature reviews are presented under the headings of “Dignity and Business Research” and “Dignity and Business Ethics Research.” The latter discussion identifies three subcategories of business ethics research involving human dignity: the role of dignity as a cornerstone for paradigmatic shifts, the role of dignity as the ‘ultima ratio’ for the protection of human rights, and the role of dignity in organizing business practices. The article concludes with summaries of the three articles chosen for this special section.

The human experience of ethics: a review of a decade of qualitative ethical decision‐making research

Qualitative studies are an important component of business ethics research. This large amount of research covers a wide array of factors and influences on ethical decision making published between 2004 and 2014. Following the methodology of past critical reviews, this work provides a synopsis of the diverse array of qualitative studies in ethical decision making within the business ethics literature. We highlight the distinct and investigative nature of qualitative research, synthesize and summarize findings, and suggest opportunities for future research. We conclude with a recommendation for developing qualitative studies in business ethics and a call for an increased openness when considering this valuable and underrepresented strategy of inquiry.

The evolution of business ethics research in the realm of tourism and hospitality

Purpose This paper aims to illustrate how business ethics research is progressing in the tourism and hospitality (T/H) industries and suggest a research agenda. Design/methodology/approach This study applies bibliometric analysis to articles related to business ethics topics in the T/H fields published between 1995 and 2014 in six, nine and five leading hospitality-, tourism- and business ethics-oriented journals, respectively. Findings This study provides a broad view on business ethics research in the T/H fields based on leading authors, institutions, themes and methods used over the past two decades. Research limitations/implications This study assesses the progress of business ethics research in the hospitality and tourism fields. Only articles published in select, prominent Social Sciences Citation Index journals were analyzed. Practical implications This analysis focuses on published articles related to business ethics in the T/H fields. As such, it facilitates researchers, academic scholars and professionals in contributing to the field more effectively and advancing scientific progress in the literature. It aids practitioners by evaluating the extent to which scholars have investigated key issues in the field. Originality/value This study is the first to utilize bibliometric analysis to assess business ethics research focusing on T/H activities published in leading tourism, hospitality and business ethics journals.

The Usefulness of Social Norm Theory in Empirical Business Ethics Research: A Review and Suggestions for Future Research

In response to recent calls to extend the underlying theories used in the literature (O’Fallon and Butterfield in J Bus Ethics 59(4):375–413, 2005; Craft in J Bus Ethics 117(2):221–259, 2013), we review the usefulness of social norm theory in empirical business ethics research. We begin by identifying the seeds of social norm theory in Adam Smith’s (in: Raphael and Macfie (eds) The Theory of Moral Sentiments, the Glasgow Edition, Oxford University Press, Oxford, 1759/1790) seminal work, The Theory of Moral Sentiments. Next, we introduce recent theory in social norm activation by Bicchieri (The grammar of society: The nature and dynamics of social norms, Cambridge University Press, New York, 2006) and compare the new theory to two theoretical frameworks found in the literature: Kohlberg’s (in: Goslin (ed) Handbook of socialization theory and research, Rand McNally, Chicago, IL, 1969; in: Lickona (ed) Moral development and behavior, Holt, Rinehart & Winston, New York, 1976) theory of moral development and Cialdini and Trost’s (in: Gilbert et al. (eds) The handbook of social psychology, Oxford University Press, Boston, 1998) taxonomy of social norms. We argue that the new theory provides useful insights by emphasizing the ability of situational cues and information to generate common expectations for social/moral norms. The theory is particularly useful for empirical research in business ethics because it gives both organizational and individual factors a role in motivating norm-based behavior. To demonstrate this usefulness, we present examples where the theory has been effectively applied in experimental accounting research to generate new insights. We conclude by citing specific examples where the theory may prove useful in empirical business ethics research.

Applying the Randomized Response Technique in Business Ethics Research: The Misuse of Information Systems Resources in the Workplace

Mitigating response distortion in answers to sensitive questions is an important issue for business ethics researchers. Sensitive questions may be asked in surveys related to business ethics, and respondents may intend to avoid exposing sensitive aspects of their character by answering such questions dishonestly, resulting in response distortion. Previous studies have provided evidence that a surveying procedure called the randomized response technique (RRT) is useful for mitigating such distortion. However, previous studies have mainly applied the RRT to individual dichotomous questions (e.g., yes/no questions) in face-to-face survey settings. In this study, we focus on behavioral research examining the relationships between latent variables, which are unobserved variables measured by multiple items on Likert or bipolar scales. To demonstrate how the RRT can be applied to obtain valid answers from respondents answering a self-administered online questionnaire with Likert and bipolar scales, we build a behavioral model to study the effect of punishment severity on employees’ attitudes toward misuse of information systems resources in the workplace, which in turn influence misuse behavior. The survey findings meet our expectations. The respondents are generally more willing to disclose sensitive data about their attitudes and actual behavior related to misuse when the RRT is implemented. The RRT’s implications for causal modeling and the advantages and challenges of its use in online environments are also discussed.

Business Ethics in the Greater China Region: Past, Present, and Future Research

While business ethics has generated a great deal of research internationally over the last few decades, academic reviews of the business ethics literature remain limited. Moreover, there has been little attempt to date to analyze this literature specifically in the Greater China region, which has been experiencing rapid socioeconomic growth and dynamic evolution of business ethics in recent decades. This paper addresses this research gap by undertaking a comprehensive and critical appraisal of the business ethics literature on Greater China. In particular, it maps out the existing research findings, identifies limitations in methodology, and suggests future directions for business ethics research in this region. The findings indicate that the scholarly interests cover 24 research themes, including corporate social responsibility and social performance; ethical beliefs, judgment, values, decision-making, and culture; workplace ethics and behavior; marketing ethics and consumer behavior; and sustainability. This review reveals a growing imbalance between empirical and conceptual/theoretical studies on business ethics. In addition, the published works covered in this review heavily rely on survey method and convenience sampling, with a predominant focus on a single individual level of analysis. Importantly, this study identifies four directions for future research: contextualized theoretical development, addressing multilevel research, developing research design tailored to the Chinese context, and ensuring more diversified and rigorous data collection.

Sex Differences Through a Neuroscience Lens: Implications for Business Ethics

Recent, groundbreaking work in neuroscience has illuminated sex differences that could have a profound impact on business organizations. Distinctions between the sexes that may have previously been presumed to be due to “nurture” may now also be demonstrably related to “nature.” Here, we report recent neuroscience findings related to males’ and females’ brain structures and brain chemistry, along with the results of recent neuroeconomic studies. We learn not only that male and female brains are structured differently, but also that different portions of their brains are used for the same tasks, often leading to identical conclusions. Neuroeconomic studies also demonstrate that the effects of hormones—most notably, oxytocin and testosterone—urge males and females to both think and behave differently in ethical situations. We suggest that examination of these new results could benefit six areas of business ethics research: trust, moral decision-making, organizational justice, moral development, the ethic of care, and female management styles. We conclude with a discussion of the implications of these findings for business practice, suggesting that it may be ethical to allow men and women to be treated differently in the workplace: such treatment may be advantageous not only for the workers’ firms, but also for the workers themselves.

The Usefulness of Social Norm Theory in Empirical Business Ethics Research: A Review and Suggestions for Future Research

In response to recent calls to extend the underlying theories used in the empirical ethical decision-making literature (O’Fallon and Butterfield 2005; Craft 2013), we review the usefulness of social norm theory in empirical business ethics research. We begin by identifying the seeds of social norm theory in Adam Smith’s (1759/1790) seminal work, The Theory of Moral Sentiments. Next, we review recent theory in social norm activation by Bicchieri (2006) and compare the new theory to two theoretical frameworks found in the empirical business ethics literature: Kohlberg’s (1969, 1976) theory of moral development and Cialdini and Trost’s (1998) taxonomy of social norms. We argue that the new theory is capable of providing useful insights by emphasizing the ability of contextual cues to alter behavior by forming common expectations for social norm behavior. To demonstrate this usefulness, we present examples where the theory has been effectively applied in experimental accounting research. Finally, we provide specific examples where the theory may prove useful in empirical business ethics research.

The Relationship Between Social Cynicism Belief, Social Dominance Orientation, and the Perception of Unethical Behavior: A Cross-Cultural Examination in Russia, Portugal, and the United States

Most studies investigating the relationship between cultural constructs and ethical perception have focused on individual- and societal-level values without much attention to other type of cultural constructs such as social beliefs. In addition, we need to better understand how social beliefs are linked to ethical perception and the level of analysis at which social beliefs may best predict ethical perceptions. This research contributes to the cross-cultural ethical perception literature by examining the relationship of individual-level social cynicism belief, one of five universally endorsed social beliefs, together with individual social dominance orientation and the perception of unethical behavior. By means of two studies, we examine these relationships across societies that significantly differ on societal-level social cynicism belief. Using 371 business students from Russia and the U.S. in Study 1 and 268 professionals from Portugal and the U.S. in Study 2, we found that individual-level social cynicism belief was positively associated with social dominance orientation. Social dominance orientation, in turn, mediated the relationship between individual social cynicism belief and the perception of unethical behavior. Although we found significant societal-level differences in social cynicism belief in both studies, the relationships between individual-level social cynicism belief, social dominance orientation, and the perception of unethical behavior were structurally equivalent across societies in both studies, suggesting that societal-level differences did not significantly affect these relationships. Implications for cross-cultural business ethics research and practice are discussed.

Individual Ethical Orientations and the Perceived Acceptability of Questionable Finance Ethics Decisions

Finance is an area that, in practice, is plagued by accusations of unethical activity; the study of finance had adopted a largely nonbehavioral approach to business ethics research. We address this gap in by assessing whether individual ethical orientations (moral identity, idealism, relativism, integrity, Machiavellianism) predict the acceptability of questionable decisions about financial issues. Results show that individual ethical orientations are associated with different levels of acceptability of questionable decisions about financial issues, though the pattern of these differences varies across individual ethical orientations assessed. These results represent evidence that ethical individual differences are associated with the acceptability of questionable finance decisions and are discussed in terms of methodological limitations and future directions in finance ethics research.

Business students’ attitudes toward business ethics: an empirical investigation in Vietnam

Purpose– The purpose of this study is to examine the attitudes toward business ethics of Vietnamese business students based on gender and the experience of having taken a business ethics course.Design/methodology/approach– A quantitative self-administered survey was conducted with a convenience sample of Vietnamese business students at a banking university in Ho Chi Minh City, Vietnam. This study used the 30-item Attitudes Toward Business Ethics Questionnaire (ATBEQ) constructed by Neumann and Reichel (1987) based on the work of Stevens (1979). The Vietnamese version questionnaire was distributed, and 282 surveys were used for analysis. An item-by-item analysis was conducted based on gender and the experience of having taken a business ethics course.Findings– Significant differences were found on seven items based on gender and four items based on the experience of having taken a business ethics course. However, respondents appeared to have similar attitudes on the majority of the items.Research limitations/implications– Perhaps the greatest limitation of this study is the relatively uneven distribution of the respondents in the sample. The sample is skewed slightly toward women who are a bit older, fourth year or post-graduate and those who have not taken a business ethics course. In addition convenience sampling technique reduced its generalizability. This study is important because it supports the idea of ethics education to improve ethical decision-making of future business leaders and that education has an effect in Vietnam.Practical implications– As business students are the main subjects of this research, it can be useful for those involved in development of management and business education in Vietnam to have an overview on how gender impacts business students’ ethics perception. For the executives of multinational corporations, this study provides important information and adds support to a decision to do business in Vietnam.Social implications– Although there may be a perception of a less than ethical climate in Vietnam based on its Corruption Perception Index scores, it appears that Vietnamese business students in general express an ethical viewpoint. This study emphasizes the importance of ethics education that is culture-specific to build a strong ethical business environment that can help Vietnam prevent bribery and corruption and achieve sustainable growth and prosperity.Originality/value– This study contributes to the attitudes toward business ethics research and sheds light on the impact of gender and education (business ethics course) on Vietnamese business students’ ethical attitudes. There has been little research on business ethics in Vietnam. Academicians, managers, practitioners, policymakers, government leaders and the like can benefit from the findings of this paper.

Use of focus groups in business ethics research: potential, problems and paths to progress

The use of focus groups is a well‐established qualitative research method in the social sciences that would seem to offer scope for a significant contribution to the advancement of knowledge and understanding in the field of business ethics. This paper explores the potential contribution of focus groups, reviews their contribution to date and makes some recommendations regarding their future use. We find that, while the use of focus groups is not extensive, they have been utilised in a non‐negligible number of studies. Focus groups are usually used as a supplementary method, often as part of the development of a research instrument. Whether used on their own or in conjunction with other methods, we find that in the majority of cases there is insufficient information for a reader to judge that the method has been carried out well and hence that the ‘findings’ may be trusted. Nor is it easy for future researchers to learn about the practical application of the method in business ethics contexts. We therefore recommend improved reporting in future published studies. Based on an analysis of a subsample of papers that provided a reasonable level of methodological detail, we provide further insights into, and recommendations for, the use of focus groups in business ethics research.