Diana C. Robertson

Empiricism in business ethics: Suggested research directions

This paper considers future directions of empirical research in business ethics and presents a series of recommendations. Greater emphasis should be placed on the normative basis of empirical studies, behavior (rather than attitudes) should be established as the key dependent variable, theoretical models of ethical decision making should be tested, and empirical studies need to focus on theory-building. Extensions of methodology and the unit of analysis are proposed together with recommendations concerning the need for replication and validity, and building links to managerial and public policy applications.

Expressions of corporate social responsibility in U.k. Firms

This study examines corporate publications of U.K. firms to investigate the nature of corporate social responsibility disclosure. Using a stakeholder approach to corporate social responsibility, our results suggest a hierarchical model of disclosure: from general rhetoric to specific endeavors to implementation and monitoring. Industry differences in attention to specific stakeholder groups are noted. These differences suggest the need to understand the effects on social responsibility disclosure of factors in a firms immediate operating environment, such as the extent of government regulation and level of competitiveness in the industry.

Compound Relationships Between Firms

In this article, the authors introduce the idea of a compound relationship; that is, for many pairs of firms, the overall relationship between the two firms is composed of multiple simple relationships: supplier to customer, and vice versa; competitor to competitor; and partners. This multiplicity of relationships can lead to both opportunities and challenges for each of the two firms in the dyad. The authors define the nature of compound relationships and delineate why it is important for the firm to treat them as such rather than focusing only on the simple relationships. They distinguish compound relationships from social networks and simple dyadic relationships and relate the construct to exchange theory, “coopetition,” and the interorganizational relationship literature in marketing. They then use the political economy framework to develop a set of conceptual propositions that apply to many aspects of compound relationships. They end with some speculations regarding the appropriate management of compound relationships and propose opportunities for further research.

Corporate Ethics Initiatives As Social Control

Efforts to institutionalize ethics in corporations have been discussed without first addressing the desirability of norm conformity or the possibility that the means used to elicit conformity will be coercive. This article presents a theoretical context, grounded in models of social control, within which ethics initiatives may be evaluated. Ethics initiatives are discussed in relation to variables that already exert control in the workplace, such as environmental controls, organizational controls, and personal controls.

A Typology of Situational Factors: Impact on Salesperson Decision-Making about Ethical Issues

We explore two dimensions of situational factors expected to influence decision-making about ethical issues among sales representatives – universal vs. particular and direct vs. indirect. We argue that these distinctions are important theoretically, methodologically, and managerially. We test our hypotheses by means of a survey of 252 sales representatives. Our results confirm that considering universal and particular and direct and indirect situational factors contributes to our understanding of decision-making about ethical issues within a sales context, specifically willingness to engage in an unethical act. We also find that personal factors act independently and interact with situational factors in decision-making about ethical issues. Both demographic factors, age and gender, and personality factors, Machiavellianism and self-monitoring, have main effects on decision-making, and some of these factors interact with situational factors to affect decision-making. For example, age of the decision-maker (younger) and size of commission (larger) interact such that the likelihood of choosing an unethical alternative is greater.

Lying: The Impact of Decision Context

This study tests the usefulness of a person-situation interactionist framework in examining the willingness of a salesperson to lie to get an order. Using a survey of 389 salespersons, our results demonstrate that organizational relationships influence willingness to lie. Specifically, salespersons are less willing to lie to their own company than to their customer, than to a channel partner, and finally, than to a competitor firm. Furthermore, respondents from firms with a clear and positive ethical climate are less willing to lie. Finally, our study finds that interactions between personality factors, such as high Machiavellianism and high self-monitoring, and situational factors have an impact on willingness to lie. Our results suggest that firms can take steps to influence employee ethical behavior.

Integrating ethics into the business school curriculum

A project on teaching business ethics at The Wharton School concluded that ethics should be directly incorporated into key MBA courses and taught by the core business faculty. The project team, comprised of students, ethics faculty and functional business faculty, designed a model program for integrating ethics. The project was funded by the Exxon Education Foundation.The program originates with a general introduction designed to familiarize students with literature and concepts pertaining to professional and business ethics and corporate social responsibility. This may be accomplished through orientation sessions, readings, packages, short classes and lectures.The key segment of the plan is to have ethics modules developed and systematically integrated throughout key business courses. In the project experiment, sample modules were developed for courses in introductory marketing, introductory management, corporate finance and business policy.The modules are designed to respond to the concerns of functional business faculty that they cannot be sufficiently authoritative in teaching ethics and that inserting coverage of ethics will displace critically important topics in their already crowded courses. On the other hand, the functional instructors found that, once encouraged, students were very willing to discuss ethical issues and that their sophistication increased throughout the course.

Purchasing Agents’ Deceptive Behavior: A Randomized Response Technique Study

The randomized response technique (RRT) is used to study the deceptive behavior of purchasing agents. We test the proposition that purchasing agents’ perceptions of organizational expectations influence their behavior. Results indicate that perceived pressure to perform and ethical ambiguity on the part of the firm are correlated with purchasing agents’ unethical behavior, in the form of acknowledged deception of suppliers.

Decision-Making Processes on Ethical Issues: The Impact of a Social Contract Perspective

This paper develops a framework for examining decision making about ethical issues and tests the applicability of a social contract perspective. Using two separate samples of students and salespeople, we determine that community members (salespeople) tend to judge a potentially unethical act to constitute a violation of an implicit social contract and non-community members (students) do not. Also, consistent with the emphasis on context specificity of integrative social contracts theory, situational variables influence perceptions of ethicality for the community members, but do not affect the perceptions of individuals outside the community. The study finds considerable support for the use of a social contractarian perspective in the study of decision-making processes about ethical issues.

Low Stakes Opportunism

In this research, the authors develop a theory addressing why people act opportunistically when the stakes (i.e., payoffs) are low. Transaction cost theory suggests that opportunistic behavior is more likely under high-stakes conditions. The authors identify rapport as an important moderator of this relationship. Through a series of three studies, they find that high-stakes opportunism appears to occur only when rapport is low. In contrast, when rapport is high, this relationship reverses, such that opportunism is actually more likely when the stakes are low than when they are high. The authors attribute these findings to differences in reasoning and find that when rapport is high and the stakes are low, people are better able to justify their actions by employing morally malleable reasoning. Thus, this research offers insights into an important form of opportunism that has been largely absent from transaction cost theory.