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Control System and Task Environment Effects on Ethical Judgment: An Exploratory Study of Industrial Salespeople

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  • Diana C. Robertson

    (The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104)

  • Erin Anderson

    (The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104)

Abstract

The objective of this research was to determine the effects of a firm's control system and dimensions of the work task environment upon ethical judgments made by salespeople. Industrial field salespeople are likely to encounter ethical conflicts on a daily basis in their dealings with customers, competitors, and their own management. How they resolve such conflicts is believed to be a function of both individual characteristics and factors in the situation. This study focuses on situational factors in the form of organization design variables, particularly control system and task environment. The firm's control system includes its method of monitoring, supervising and compensating salespeople. The study develops fourteen ethics-related selling scenarios and assesses, via projective questioning, how 446 salespeople would react to them. Findings indicate that organization design does influence the behavior a salesperson considers appropriate to cope with ethical conflicts. In particular, salespeople operating under a more bureaucratic, input-based control system advocate more ethical behavior than do salespeople operating under a more output-based, laissez-faire control system. Also, salespeople who perceive the market to be competitive recommend less ethical behavior. However, the proportion of salary versus commission in the salesperson's compensation system does not have an effect on response. Differences are also discovered with respect to the salesperson's seniority, rank, and certain features of the task environment.

Suggested Citation

  • Diana C. Robertson & Erin Anderson, 1993. "Control System and Task Environment Effects on Ethical Judgment: An Exploratory Study of Industrial Salespeople," Organization Science, INFORMS, vol. 4(4), pages 617-644, November.
    • Handle: RePEc:inm:ororsc:v:4:y:1993:i:4:p:617-644
    DOI: 10.1287/orsc.4.4.617
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    Cited by:

    1. Manolis, Chris & Nygaard, Arne & Stillerud, Bård, 1997. "Uncertainty and vertical control: An international investigation," International Business Review, Elsevier, vol. 6(5), pages 501-518, October.
    2. Paul Lindhout & Genserik Reniers, 2021. "Involving Moral and Ethical Principles in Safety Management Systems," IJERPH, MDPI, vol. 18(16), pages 1-15, August.
    3. Sebastian Forkmann & Jonathan Webb & Stephan C. Henneberg & Lisa K. Scheer, 2022. "Boundary spanner corruption: a potential dark side of multi-level trust in marketing relationships," Journal of the Academy of Marketing Science, Springer, vol. 50(5), pages 889-914, September.
    4. Rafael Morales-Sánchez & Manuel Orta-Pérez & M. Ángeles Rodríguez-Serrano, 2020. "The Benefits of Auditors’ Sustained Ethical Behavior: Increased Trust and Reduced Costs," Journal of Business Ethics, Springer, vol. 166(2), pages 441-459, October.
    5. Jessica Gerard & A. Helme-Guizon, 2012. "La contamination perçue des produits : vers une meilleure compréhension de ses antécédents et de ses effets," Post-Print halshs-00849800, HAL.
    6. Lu-Ming Tseng & Yue-Min Kang, 2014. "The influences of sales compensations, management stringency and ethical evaluations on product recommendations made by insurance brokers," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 22(1), pages 26-42, February.
    7. Vaibhav Chawla & Sridhar Guda, 2013. "Workplace Spirituality as a Precursor to Relationship-Oriented Selling Characteristics," Journal of Business Ethics, Springer, vol. 115(1), pages 63-73, June.
    8. Nick Lee & Amanda Beatson & Tony Garrett & Ian Lings & Xi Zhang, 2009. "A Study of the Attitudes Towards Unethical Selling Amongst Chinese Salespeople," Journal of Business Ethics, Springer, vol. 88(3), pages 497-515, October.
    9. Gatignon, Aline & Gatignon, Hubert, 2010. "Erin Anderson and the Path Breaking Work of TCE in New Areas of Business Research: Transaction Costs in Action," Journal of Retailing, Elsevier, vol. 86(3), pages 232-247.
    10. Jixia Yang & Kuo Hui Frank Yu & Chi-Jui Huang, 2019. "Service employees’ concurrent adaptive and unethical behaviors in complex or non-routine tasks: The effects of customer control and self-monitoring personality," Asia Pacific Journal of Management, Springer, vol. 36(1), pages 245-273, March.
    11. Ralph Jackson & Charles Wood & James Zboja, 2013. "The Dissolution of Ethical Decision-Making in Organizations: A Comprehensive Review and Model," Journal of Business Ethics, Springer, vol. 116(2), pages 233-250, August.
    12. Nadeem, Waqar & Juntunen, Mari & Shirazi, Farid & Hajli, Nick, 2020. "Consumers’ value co-creation in sharing economy: The role of social support, consumers’ ethical perceptions and relationship quality," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    13. Olli-Pekka Kauppila, 2014. "So, What Am I Supposed to Do? A Multilevel Examination of Role Clarity," Journal of Management Studies, Wiley Blackwell, vol. 51(5), pages 737-763, July.
    14. Selma Kadic-Maglajlic & Milena Micevski & Nick Lee & Nathaniel Boso & Irena Vida, 2019. "Three Levels of Ethical Influences on Selling Behavior and Performance: Synergies and Tensions," Journal of Business Ethics, Springer, vol. 156(2), pages 377-397, May.
    15. Amit Saini & Mike Krush, 2008. "Anomie and the Marketing Function: The Role of Control Mechanisms," Journal of Business Ethics, Springer, vol. 83(4), pages 845-862, December.
    16. Roman, Sergio & Ruiz, Salvador, 2005. "Relationship outcomes of perceived ethical sales behavior: the customer's perspective," Journal of Business Research, Elsevier, vol. 58(4), pages 439-445, April.
    17. Amit Saini & Kelly Martin, 2009. "Strategic Risk-Taking Propensity: The Role of Ethical Climate and Marketing Output Control," Journal of Business Ethics, Springer, vol. 90(4), pages 593-606, December.
    18. Krzysztof Cybulski, 2018. "Multi-dimensional nature of the phenomenon of fraud in sales organizations. Undiscovered land of research opportunity. (Wielowymiarowy charakter zjawiska defraudacji w organizacjach sprzedazy. Niezbad," Research Reports, University of Warsaw, Faculty of Management, vol. 2(28), pages 15-25.
    19. Zoha Fatima & Adil Khan & Abdul Saboor Mohammad, 2024. "The Efficacy of Salesforce Control Systems: Their Impact on the Pharmaceutical Industry in India," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 49(2), pages 275-292, May.
    20. Evelyne Rousselet & Bérangère Brial & Romain Cadario & Amina Béji-Bécheur, 2020. "Moral Intensity, Issue Characteristics, and Ethical Issue Recognition in Sales Situations," Journal of Business Ethics, Springer, vol. 163(2), pages 347-363, May.
    21. Casenave, Eric & Klarmann, Martin, 2020. "The accountability paradox: How holding marketers accountable hinders alignment with short-term marketing goals," Journal of Business Research, Elsevier, vol. 112(C), pages 95-108.
    22. Guda Sridhar & Teidorlang Lyngdoh, 2019. "Flow and Information Sharing as Predictors of Ethical Selling Behavior," Journal of Business Ethics, Springer, vol. 158(3), pages 807-823, September.
    23. Charles Schwepker & David Good, 2011. "Moral Judgment and its Impact on Business-to-Business Sales Performance and Customer Relationships," Journal of Business Ethics, Springer, vol. 98(4), pages 609-625, February.
    24. Mohamed Charki & Emmanuel Josserand & Nabila Charki, 2011. "Toward an Ethical Understanding of the Controversial Technology of Online Reverse Auctions," Journal of Business Ethics, Springer, vol. 98(1), pages 17-37, January.
    25. Hennart, Jean-François, 2010. "Transaction Cost Theory and International Business," Journal of Retailing, Elsevier, vol. 86(3), pages 257-269.

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