A national survey of CEOs of manufacturing firms was conducted to identify factors explaining CEOs' intentions to engage in two questionable business practices: soliciting a competitor's technological secrets and making payments to foreign government officials to secure business. Drawing on research in corporate misconduct, ethical decision making, and strategic management, the authors analyzed ethical intentions by looking at hostile environmental conditions, opportunity-rich situations, and/or personal characteristics. Based on responses to scenarios, their findings suggest that the ethical intentions of CEOs may be more affected by the decision maker's predisposition than by environmental pressures or organizational/situational characteristics.
Get full access to this article
View all access options for this article.
References
1.
Ajzen, Icek
, and Martin Fishbein. 1980. Understanding Attitudes and Predicting Social Behavior. Englewood Cliffs, NJ: Prentice-Hall.
2.
Alexander, Cheryl S.
, and Henry Jay Becker. 1978. "The Use of Vignettes in Survey Research."Public Opinion Quarterly42:93-104.
3.
Andrews, Kenneth R.1971. The Concept of Corporate Strategy. Homewood, IL: Dow Jones-Irwin.
4.
Armacost, Robert L.
, Jamshid C. Hosseini, Sara A. Morris, and Kathleen A. Rehbein. 1991. "An Empirical Comparison of Direct Questioning, Scenario, and Randomized Response Methods for Obtaining Sensitive Business Information."Decision Sciences22:1073-1090.
5.
Bain, Joe S.1956. Barriers to New Competition. Cambridge, MA: Harvard University Press.
6.
Barnett, John H.
, and Marvin J. Karson. 1987. "Personal Values and Business Decisions: An Exploratory Investigation."Journal of Business Ethics6:371-382.
7.
Barney, Jay
. 1991. "Firm Resources and Sustained Competitive Advantage."Journal of Management17:99-120.
8.
Baucus, Melissa S.1989. "Why Firms Do It and What Happens to Them: A Re-examination of the Theory of Illegal Corporate Behavior." Pp. 93-119 in James E. Post (ed.), Research in Corporate Social Performance and Policy, Vol. 11. Greenwich, CT: JAI.
9.
Baucus, Melissa S.
, and Janet P. Near. 1991. "Can Illegal Corporate Behavior Be Predicted? An Event History Analysis."Academy of Management Journal34:9-36.
10.
Baumhart, Raymond C.1961. "How Ethical Are Businessmen?"Harvard Business Review39 (July-August): 6-9.
11.
Blau, Peter M.1970. "A Formal Theory of Differentiation in Organizations."American Sociological Review35:201-218.
12.
Boone, Louis E.
, and David L. Kurtz. 1988. "CEOs: A Group Profile."Business Horizons31(4): 38-42.
13.
Bourgeois, L. J. III.1981. "On the Measurement of Organizational Slack."Academy of Management Review6:29-39.
14.
Bourgeois, L. J. III.
. 1984. "Strategic Management and Determinism."Academy of Management Review9:586-596.
15.
Brenner, Steven N.
, and Earl A. Molander. 1977. "Are the Ethics of Business Changing?"Harvard Business Review55 (January-February): 57-71.
16.
Cavanagh, Gerald F.
, and David J. Fritzsche. 1985. "Using Vignettes in Business Ethics Research." Pp. 279-293 in Lee E. Preston (ed.), Research in Corporate Social Performance and Policy, Vol. 7. Greenwich, CT: JAI.
17.
Child, John1972. "Organization Structure, Environment and Performance: The Role of Strategic Choice."Sociology6:2-22.
18.
Churchill, Gilbert A.1987. Marketing Research (4th ed.). Chicago: Dryden.
19.
Clinard, Marshall B.
, Peter C. Yeager, Jeanne Brissette, David Petrashek, and Elizabeth Harries. 1979. Illegal Corporate Behavior. Washington, DC: U.S. Government Printing Office.
20.
Cochran, Philip L.
, and Douglas Nigh. 1987. "Illegal Corporate Behavior and the Question of Moral Agency: An Empirical Examination." Pp. 73-91 in Lee E. Preston (ed.), Research in Corporate Social Performance and Policy, Vol. 9. Greenwich, CT: JAI.
21.
Dillman, Don A.1978. Mail and Telephone Surveys: The Total Design Method. New York: Wiley-Interscience.
22.
Dolecheck, Maynard M.
, and Carolyn C. Dolecheck. 1989. "Ethics: Take It From the Top."Business39 (1): 12-18.
23.
Dubinsky, Alan J.
, and Barbara Loken. 1989. "Analyzing Ethical Decision Making in Marketing."Journal of Business Research19:83-107.
24.
Edwards, Allen L.1957. The Social Desirability Variable in Personality Assessment and Research. New York: Dryden.
25.
Fama, Eugene F.1980. "Agency Problems and the Theory of the Firm."Journal of Political Economy88:288-307.
26.
Ferrell, O. C.
, and Larry G. Gresham. 1985. "A Contingency Framework for Understanding Ethical Decision Making in Marketing."Journal of Marketing49 (3): 87-96.
27.
Ferrell, O. C.
, Larry G. Gresham, and John Fraedrich. 1989. "A Synthesis of Ethical Decision Models for Marketing."Journal of Macromarketing9 (Fall): 55-64.
28.
Freeman, R. Edward
, and Daniel R. Gilbert, Jr.1988. Corporate Strategy and the Search for Ethics. Englewood Cliffs, NJ: Prentice-Hall.
29.
Friedman, Milton
. 1970. "The Social Responsibility of Business Is to Increase Its Profits."New York Times Magazine, 30 September, 122-126.
30.
Fritzsche, David J.
, and Helmut Becker. 1984. "Linking Management Behavior to Ethical Philosophy: An Empirical Investigation."Academy of Management Journal27:166-175.
31.
Gellerman, Saul W.1989. "Managing Ethics From the Top Down."Sloan Management Review30 (2): 73-79.
32.
Hambrick, Donald C.1989. "Putting Top Managers Back in the Strategy Picture."Strategic Management Journal10 (Summer Special Issue): 5-15.
33.
Hambrick, Donald C.
, and Phyllis A. Mason. 1984. "Upper Echelons: The Organization as a Reflection of Its Top Managers."Academy of Management Review9:193-206.
34.
Harris, James R.1990. "Ethical Values of Individuals at Different Levels in the Organizational Hierarchy of a Single Finn."Journal of Business Ethics9:741-750.
35.
Hattwick, Richard E.
, Bong-Gon P. Shin, and Larry C. Wall. 1984. "Business Ethics-Findings of a Survey of America's Business Leaders."Journal of Behavioral Economics13:157-185.
36.
Hill, Charles W. L.
, Patricia C. Kelley, Bradley R. Agle, Michael A. Hitt, and Robert E. Hoskisson. 1992. "An Empirical Examination of the Causes of Corporate Wrongdoing in the United States."Human Relations45:1055-1076.
37.
Hitt, Michael A.
, and Beverly B. Tyler. 1991. "Strategic Decision Models: Integrating Different Perspectives."Strategic Management Journal12:327-351.
38.
Hofer, Charles W.
, and Dan Schendel. 1978. Strategy Formulation: Analytical Concepts. St. Paul, MN: West.
39.
Hunt, Shelby D.
, and Scott Vitell. 1986. "A General Theory of Marketing Ethics."Journal of Macromarketing6 (Spring): 5-16.
40.
Jones, Thomas M.1991. "Ethical Decision Making by Individuals in Organizations: An Issue-Contingent Model."Academy of Management Review16:366-395.
41.
Knauft, E. Burt
. 1985. Profiles of Effective Corporate Giving Programs. Washington, DC: The Independent Sector.
42.
Kriesberg, Simon
. 1976. "Decisionmaking Models and the Control of Corporate Crime."Yale Law Journal85:1091-1129.
43.
Lincoln, Douglas J.
, Milton M. Pressley, and Taylor Little. 1982. "Ethical Beliefs and Personal Values of Top Level Executives."Journal of Business Research10:475-487.
44.
Longenecker, Justin G.
, Joseph A. McKinney, and Carlos W. Moore. 1988. "The Ethical Issue of International Bribery: A Study of Attitudes Among U.S. Business Professionals."Journal of Business Ethics7:341-346.
45.
Madden, Charles S.
, and Richard T. Hise. 1988. "Counter-Intelligence Operations of U.S. Firms: An Exploratory Study."Akron Business and Economic Review19 (3): 76-82.
46.
Nelson, Richard R.
, and Sidney G. Winter. 1982. An Evolutionary Theory of Economic Change. Cambridge, MA: Harvard University Press.
47.
Norburn, David
. 1989. "The Chief Executive: A Breed Apart."Strategic Management Journal10:1-15.
48.
Ouchi, William G.1979. "A Conceptual Framework for the Design of Organizational Control Mechanisms."Management Science25:833-848.
49.
Pettigrew, Andrew M.1992. "On Studying Managerial Elites."Strategic Management Journal13 (Winter Special Issue): 163-182.
50.
Porter, Michael E.1980. Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press.
51.
Posner, Barry Z.
, and Warren R Schmidt. 1987. "Ethics in American Companies: A Managerial Perspective."Journal of Business Ethics6:383-391.
52.
Randall, Donna M.
, and Maria Fernandes. 1991. "The Social Desirability Response Bias in Ethics Research."Journal of Business Ethics10:805-817.
53.
Randall, Donna M.
, and Anetta M. Gibson. 1991. "Ethical Decision Making in the Medical Profession: An Application of the Theory of Planned Behavior."Journal of Business Ethics10:111-122.
54.
Rest, James R.1986. Moral Development: Advances in Research and Theory. New York: Pager.
55.
Rumelt, Richard P.
, Dan Schendel, and David J. Teece. 1991. "Strategic Management and Economics."Strategic Management Journal12 (Winter Special Issue): 5-29.
56.
Schumpeter, Joseph A.1950. Capitalism Socialism, and Democracy (3rd ed.). New York. Harper.
57.
Schwenk, Charles R.1988. The Essence of Strategic Decision Making. Lexington, MA: Lexington Books.
58.
Skinner, B. F.1953. Science and Human Behavior. New York: Macmillan.
59.
Standard and Poor's Corporation
. 1988. Standard Poor Register of Corporations, Directors and Executives. New York: Author.
60.
Staw, Barry M.
, and Eugene Szwajkowski. 1975. "The Scarcity-Munificence Component of Organization Environments and the Commission of Illegal Acts."Administrative Science Quarterly20:345-354.
61.
Szwajkowski, Eugene
. 1985. "Organizational Illegality: Theoretical Integration and Illustrative Application."Academy of Management Review10:558-567.
62.
Szwajkowski, Eugene
.. 1986. "The Myths and Realities of Research on Organizational Misconduct." Pp. 121-147 in James E. Post (ed.), Research in Corporate Social Performance and Policy, Vol. 8. Greenwich, CT: JAI.
63.
Trevino, Linda K.1986. "Ethical Decision Making in Organizations: A Person-Situation Interactionist Model."Academy of Management Review11:601-617.
64.
Trevino, Linda K.
. 1992. "Moral Reasoning and Business Ethics: Implications for Research, Education, and Management."Journal of Business Ethics11:445-459.
65.
Trevino, Linda K.
, and Bart Victor. 1992. "Peer Reporting of Unethical Behavior: A Social Context Perspective."Academy of Management Journal35:38-64.
66.
Trevino, Linda K.
, and Stuart A. Youngblood. 1990. "Bad Apples in Bad Barrels: A Causal Analysis of Ethical Decision-Making Behavior."Journal of Applied Psychology75:378-385.
67.
Useem, Michael
. 1988. "Market and Institutional Factors in Corporate Contributions."California Management Review30 (2): 77-88.
Vitell, Scott J.
, and Troy A. Festervand. 1987. "Business Ethics: Practices and Beliefs of Industrial Executives."Journal of Business Ethics6:111-122.
70.
Vitell, Scott J.
, Troy A. Festervand, and D. L. Strutton. 1988. "Business Ethics: Conflicts, Practices and Beliefs of Bank Executives."The Mid-Atlantic Journal of Business25:21-34.
71.
Vroom, Victor H.1964. Work and Motivation. New York: Wiley.
72.
Weber, James
. 1990. "Managers' Moral Reasoning: Assessing Their Responses to Three Moral Dilemmas."Human Relations43:687-702.
73.
Weber, James
.. 1992. "Scenarios in Business Ethics Research: Review, Critical Assessment, and Recommendations."Business Ethics Quarterly2:137-159.
74.
Williamson, Oliver E.1975. Markets and Hierarchies: Analysis and Antitrust Implications. New York: Free Press.
75.
Wood, Donna J.1991. "Corporate Social Performance Revisited."Academy of Management Review16:691-718.
