Scott J. Reynolds

Behavioral Ethics in Organizations: A Review

The importance of ethical behavior to an organization has never been more apparent, and in recent years researchers have generated a great deal of knowledge about the management of individual ethical behavior in organizations. We review this literature and attempt to provide a coherent portrait of the current state of the field. We discuss individual, group, and organizational influences and consider gaps in current knowledge and obstacles that limit our understanding. We conclude by offering directions for future research on behavioral ethics in organizations.

The effects of moral judgment and moral identity on moral behavior: An empirical examination of the moral individual.

Recognizing limitations in classic cognitive moral development theory, several scholars have drawn from theories of identity to suggest that moral behavior results from both moral judgments and moral identity. The authors conducted 2 survey-based studies with more than 500 students and managers to test this argument. Results demonstrated that moral identity and moral judgments both independently influenced moral behavior. In addition, in situations in which social consensus regarding the moral behavior was not high, moral judgments and moral identity interacted to shape moral behavior. This interaction effect indicated that those who viewed themselves as moral individuals pursued the most extreme alternatives (e.g., never cheating, regularly cheating)--a finding that affirms the motivational power of a moral identity. The authors conclude by considering the implications of this research for both theory and practice.

Moral awareness and ethical predispositions: investigating the role of individual differences in the recognition of moral issues.

The impact of the role of individual ethical predispositions, preferences for utilitarian and formalistic ideals, on managerial moral awareness was examined in 2 studies. Results suggested that a managers ethical predispositions influence his or her responses to the characteristics of the moral issue. Both utilitarianism and formalism shaped moral awareness, but formalism demonstrated a greater capacity to do so in that formalists recognized both harm and the violation of a behavioral norm as indicators of the moral issue, whereas utilitarians responded only to harm. These findings provide support for the basic arguments underlying theories of moral development and offer several implications for the study and practice of moral awareness in organizations.

A neurocognitive model of the ethical decision-making process: implications for study and practice.

The field of business ethics is entrenched in a cognitive approach that portrays the ethical decision-making process as a completely deliberate and reasoned exercise. In light of growing concerns about the veracity of this approach, I build upon current knowledge of how the brain functions to present a neurocognitive model of ethical decision making. The model suggests that ethical decision making involves 2 interrelated yet functionally distinct cycles, a reflexive pattern matching cycle and a higher order conscious reasoning cycle, and thereby describes not only reasoned analysis, but also the intuitive and retrospective aspects of ethical decision making. The model sparks research in new areas, holds significant implications for the study of ethical decision making, and provides suggestions for improving ethical behavior in organizations.

Automatic ethics: the effects of implicit assumptions and contextual cues on moral behavior.

We empirically examine the reflexive or automatic aspects of moral decision making. To begin, we develop and validate a measure of an individuals implicit assumption regarding the inherent morality of business. Then, using an in-basket exercise, we demonstrate that an implicit assumption that business is inherently moral impacts day-to-day business decisions and interacts with contextual cues to shape moral behavior. Ultimately, we offer evidence supporting a characterization of employees as reflexive interactionists: moral agents whose automatic decision-making processes interact with the environment to shape their moral behavior.

Moral Intuition Connecting Current Knowledge to Future Organizational Research and Practice

In contrast to older, conventional accounts that treat ethical decision making and behavior as the result of deliberative and intendedly rational processes, a rapidly growing body of social science research has framed ethical thought and behavior as driven by intuition. We review this important new body of knowledge in terms of both the process and content of moral intuition. Then, to demonstrate its value to organizational scholars, we consider the potential impact of moral intuition research in four areas of organizational studies especially suited to insights from this research: leadership, organizational corruption, ethics training and education, and divestiture socialization. Our review and discussion suggest that the literature on moral intuition is incredibly rich, fruitful, and meaningful to a wide range of audiences.

Perceptions of Organizational Ethicality: Do Inflated Perceptions of Self Lead to Inflated Perceptions of the Organization?

Scholars have suggested that the tendency for an individual to perceive him- or herself as more ethical than others might influence the individuals perceptions of his or her organizations ethics. The purpose of this study is to consider if and/or when such a relationship exists. A thorough consideration of the nature of perceptions of relative ethicality suggests that a positive self-bias would negatively influence perceptions of organizational ethicality. The results of an empirical study involving working managers and employees of a hospital support that argument. Furthermore, the results indicate that organizational identification, perceived organizational cohesion, and an individuals insulation also influence individual perceptions of relative organizational ethicality. The findings illuminate this particular phenomenon and further our understanding of the relationship between the individual and the organization, more generally.

Are the “Customers” of Business Ethics Courses Satisfied? An Examination of One Source of Business Ethics Education Legitimacy:

Though there are many factors that contribute to the perceived legitimacy of business ethics education, this research focuses on one factor that is given great attention both formally and informally in many business schools: student satisfaction with the course. To understand the nature of student satisfaction, the authors draw from multiple theories with central claims relating (met) expectations with satisfaction. The authors then compare student expectations of business ethics courses with instructor objectives and discover that business ethics courses are not necessarily designed to meet student expectations. The authors speculate that this general mismatch between student expectations and instructor objectives has material consequences. As one example, the authors analyze student evaluations from three business schools and identify a “business ethics course effect”: a negative association between business ethics courses and student evaluations. The authors discuss the implications for business ethics education of a situation where pedagogical objectives (“Educate!”) and market prescriptions (“Satisfy!”) point in different directions.

Counterfactual and Factual Reflection: The Influence of Past Misdeeds on Future Immoral Behavior.

ABSTRACT Though the decision to behave immorally is situated within the context of prior immoral behavior, research has provided contradictory insights into this process. In a series of experiments, we demonstrate that the effects of prior immoral behavior depend on how individuals think about, or reflect on, their immoral behavior. In Experiment 1, participants who reflected counterfactually on their prior moral lapses morally disengaged (i.e., rationalized) less than participants who reflected factually. In Experiment 2, participants who reflected counterfactually on their prior moral lapses experienced more guilt than those who reflected factually. Finally, in Experiments 3 and 4, participants who reflected counterfactually lied less on unrelated tasks with real monetary stakes than those who reflected factually. Our studies provide important insights into moral rationalization and moral compensation processes and demonstrate the profound influence of reflection in everyday moral life.