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Excessive risk exposure: A question of ethical decision-making

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  • Ferguson, Jodie L.

Abstract

This commentary essay reflects on the article titled “When an irresistible force meets an immovable object: The interplay of agency and structure in the UK financial crisis” (Ashby et al., this issue). Specifically, managers took on excessive risk that ultimately contributed to financial crisis. This essay discusses whether the decision to accept excessive risk falls under ethical decision-making, including the degree of moral intensity as possibly perceived by risk and financial managers. The components for determining moral intensity include (1) magnitude of consequences, (2) social consensus, (3) probability of effect, (4) temporal immediacy, (5) proximity, and (6) concentration of effect.

Suggested Citation

  • Ferguson, Jodie L., 2014. "Excessive risk exposure: A question of ethical decision-making," Journal of Business Research, Elsevier, vol. 67(1), pages 2684-2685.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:1:p:2684-2685
    DOI: 10.1016/j.jbusres.2013.03.016
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    References listed on IDEAS

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    1. Lang, William W. & Jagtiani, Julapa, 2010. "The Mortgage Financial Crises: The Role of Credit Risk Management and Corporate Governance," Working Papers 10-12, University of Pennsylvania, Wharton School, Weiss Center.
    2. Nicki Marquardt & Rainer Hoeger, 2009. "The Effect of Implicit Moral Attitudes on Managerial Decision-Making: An Implicit Social Cognition Approach," Journal of Business Ethics, Springer, vol. 85(2), pages 157-171, March.
    3. Singhapakdi, Anusorn & Vitell, Scott J. & Kraft, Kenneth L., 1996. "Moral Intensity and Ethical Decision-Making of Marketing Professionals," Journal of Business Research, Elsevier, vol. 36(3), pages 245-255, July.
    4. William Lang & Julapa Jagtiani, 2010. "The Mortgage and Financial Crises: The Role of Credit Risk Management and Corporate Governance," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(3), pages 295-316, September.
    5. Samuel Natale & Sebastian Sora, 2010. "Ethics in Strategic Thinking: Business Processes and the Global Market Collapse," Journal of Business Ethics, Springer, vol. 94(3), pages 309-316, July.
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    Cited by:

    1. Bagozzi, Richard P. & Sekerka, Leslie E. & Sguera, Francesco, 2018. "Understanding the consequences of pride and shame: How self-evaluations guide moral decision making in business," Journal of Business Research, Elsevier, vol. 84(C), pages 271-284.
    2. Luca Casali, Gian & Perano, Mirko, 2021. "Forty years of research on factors influencing ethical decision making: Establishing a future research agenda," Journal of Business Research, Elsevier, vol. 132(C), pages 614-630.

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