IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v112y2013i3p497-514.html
   My bibliography  Save this article

Using Social Identity Theory to Predict Managers’ Emphases on Ethical and Legal Values in Judging Business Issues

Author

Listed:
  • John Pearce

Abstract

The need to fill three gaps in ethics research in a business context sparked the current study. First, the distinction between the concepts of “ethical” and “legal” needs to be incorporated into theory building and empiricism. Second, a unifying theory is needed that can explain the variables that influence managers to emphasize ethics and legality in their judgments. Third, empirical evidence is needed to confirm the predictive power of the unifying theory, the discernable influence of personal and organizational variables, and the importance of the issue to the managers in determining their emphasis on the ethical and legal values of their judgments. Focused on these needs, the current research combines social identity theory with empirical findings from business ethics research. This theory building initiative framed hypothesis-driven research to investigate the influences on managers’ emphasis on ethical and legal values in making business judgments. An empirical research study was conducted involving 252 practicing managers who judged 12 newsworthy business events. Data was collected on the managers’ individual factors, on the groups that influence their judgments, and on the importance that the managers place on ethics and legality in judging the 12 scenarios. The research findings contribute to theory development (1) By successfully utilizing a blended extension of social identity and issue-contingent theories to understand managers’ judgments, and (2) By providing evidence on the relationships between the perceived importance of an issue and the emphases managers place on ethical and legal values in their judgments. The analysis of the data was extended to provide insights on the needs of employers to tailor management training on legal and ethical decision-making. The participating managers were clustered according to their emphases on Ethical Importance and Legal Importance in judging business situations. Analysis of Variance was then combined with Scheffé Multiple Comparison Tests to assess whether the factors derived from a blended extension of social identity and issue-contingent theories were significantly different across the clusters. The product of this analysis is unique sets of attributes that describe each cluster of managers, and provide an empirical basis for determining training priorities. Finally, the carefully constructed and thoroughly tested 12 research scenarios that form the core of the survey instrument enable their redeployment in subsequent research and their use by practicing executives who wish to compare data provided by their managers to results from the study participants. Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • John Pearce, 2013. "Using Social Identity Theory to Predict Managers’ Emphases on Ethical and Legal Values in Judging Business Issues," Journal of Business Ethics, Springer, vol. 112(3), pages 497-514, February.
    • Handle: RePEc:kap:jbuset:v:112:y:2013:i:3:p:497-514
    DOI: 10.1007/s10551-012-1274-x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10551-012-1274-x
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-012-1274-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kaptein, Muel & Wempe, Johan, 2002. "The Balanced Company: A Theory of Corporate Integrity," OUP Catalogue, Oxford University Press, number 9780199255511.
    2. James Weber, 1995. "Influences Upon Organizational Ethical Subclimates: A Multi-Departmental Analysis of a Single Firm," Organization Science, INFORMS, vol. 6(5), pages 509-523, October.
    3. Greg Loviscky & Linda Treviño & Rick Jacobs, 2007. "Assessing Managers’ Ethical Decision-making: An Objective Measure of Managerial Moral Judgment," Journal of Business Ethics, Springer, vol. 73(3), pages 263-285, July.
    4. Locke, Edwin A., 1991. "The motivation sequence, the motivation hub, and the motivation core," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 288-299, December.
    5. James Westerman & Rafik Beekun & Yvonne Stedham & Jeanne Yamamura, 2007. "Peers Versus National Culture: An Analysis of Antecedents to Ethical Decision-making," Journal of Business Ethics, Springer, vol. 75(3), pages 239-252, October.
    6. Treviño, Linda Klebe & Butterfield, Kenneth D. & McCabe, Donald L., 1998. "The Ethical Context in Organizations: Influences on Employee Attitudes and Behaviors," Business Ethics Quarterly, Cambridge University Press, vol. 8(3), pages 447-476, July.
    7. Schwartz, Mark S. & Carroll, Archie B., 2003. "Corporate Social Responsibility: A Three-Domain Approach," Business Ethics Quarterly, Cambridge University Press, vol. 13(4), pages 503-530, October.
    8. Weber, James, 1992. "Scenarios in Business Ethics Research: Review, Critical Assessment, and Recommendations," Business Ethics Quarterly, Cambridge University Press, vol. 2(2), pages 137-160, April.
    9. McCabe, Donald L. & Trevino, Linda Klebe & Butterfield, Kenneth D., 1996. "The Influence of Collegiate and Corporate Codes of Conduct on Ethics-Related Behavior in the Workplace," Business Ethics Quarterly, Cambridge University Press, vol. 6(4), pages 461-476, October.
    10. Craig VanSandt & Jon Shepard & Stephen Zappe, 2006. "An Examination of the Relationship Between Ethical Work Climate and Moral Awareness," Journal of Business Ethics, Springer, vol. 68(4), pages 409-432, November.
    11. Maureen Ambrose & Anke Arnaud & Marshall Schminke, 2008. "Individual Moral Development and Ethical Climate: The Influence of Person–Organization Fit on Job Attitudes," Journal of Business Ethics, Springer, vol. 77(3), pages 323-333, February.
    12. Joan McMahon & Robert Harvey, 2007. "The Effect of Moral Intensity on Ethical Judgment," Journal of Business Ethics, Springer, vol. 72(4), pages 335-357, June.
    13. Betsy Stevens, 2008. "Corporate Ethical Codes: Effective Instruments For Influencing Behavior," Journal of Business Ethics, Springer, vol. 78(4), pages 601-609, April.
    14. Nhung Nguyen & Michael Biderman, 2008. "Studying Ethical Judgments and Behavioral Intentions Using Structural Equations: Evidence from the Multidimensional Ethics Scale," Journal of Business Ethics, Springer, vol. 83(4), pages 627-640, December.
    15. Bass, Kenneth & Barnett, Tim & Brown, Gene, 1999. "Individual Difference Variables, Ethical Judgments, and Ethical Behavioral Intentions," Business Ethics Quarterly, Cambridge University Press, vol. 9(2), pages 183-205, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olaka, Habil & Lewa, Peter & Kiriri, Peter, 2018. "Strategic leadership and strategy implementation in commercial banks in Kenya," KBA Centre for Research on Financial Markets and Policy Working Paper Series 27, Kenya Bankers Association (KBA).
    2. Rami Salem & Ernest Ezeani & Xi Song, 2023. "The relationship between religiosity and voluntary disclosure quality: a cross-country evidence from the banking sector," Review of Quantitative Finance and Accounting, Springer, vol. 60(3), pages 983-1023, April.
    3. Sean R. Valentine & Sheila K. Hanson & Gary M. Fleischman, 2019. "The Presence of Ethics Codes and Employees’ Internal Locus of Control, Social Aversion/Malevolence, and Ethical Judgment of Incivility: A Study of Smaller Organizations," Journal of Business Ethics, Springer, vol. 160(3), pages 657-674, December.
    4. Abdelsalam, Omneya & Chantziaras, Antonios & Ibrahim, Masud & Omoteso, Kamil, 2021. "The impact of religiosity on earnings quality: International evidence from the banking sector," The British Accounting Review, Elsevier, vol. 53(6).
    5. Daphne Sobolev & Niklas Voege, 2020. "Consumer Judgment of Morally-Questionable Behaviors: The Relationship Between Ethical and Legal Judgments," Journal of Business Ethics, Springer, vol. 165(1), pages 145-160, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ahmed Musbah & Christopher J. Cowton & David Tyfa, 2016. "The Role of Individual Variables, Organizational Variables and Moral Intensity Dimensions in Libyan Management Accountants’ Ethical Decision Making," Journal of Business Ethics, Springer, vol. 134(3), pages 335-358, March.
    2. Peter Mudrack & E. Mason, 2013. "Ethical Judgments: What Do We Know, Where Do We Go?," Journal of Business Ethics, Springer, vol. 115(3), pages 575-597, July.
    3. Mark S. Schwartz, 2016. "Ethical Decision-Making Theory: An Integrated Approach," Journal of Business Ethics, Springer, vol. 139(4), pages 755-776, December.
    4. Eyun-Jung Ki & Soo-Yeon Kim, 2010. "Ethics Statements of Public Relations Firms: What Do They Say?," Journal of Business Ethics, Springer, vol. 91(2), pages 223-236, January.
    5. Kaptein, S.P., 2007. "Developing and Testing a Measure for the Ethical Culture of Organizations: The Corporate Ethical Virtues Model," ERIM Report Series Research in Management ERS-2007-084-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    6. Lauren Kleynjans & Marek Hudon, 2016. "A Study of Codes of Ethics for Mexican Microfinance Institutions," Journal of Business Ethics, Springer, vol. 134(3), pages 397-412, March.
    7. Muel Kaptein, 2011. "Toward Effective Codes: Testing the Relationship with Unethical Behavior," Journal of Business Ethics, Springer, vol. 99(2), pages 233-251, March.
    8. James Weber & Virginia Gerde, 2011. "Organizational Role and Environmental Uncertainty as Influences on Ethical Work Climate in Military Units," Journal of Business Ethics, Springer, vol. 100(4), pages 595-612, June.
    9. Kaptein, S.P., 2009. "From Symbolic to Substantive Documents: When Business Codes of Ethics Impact Unethical Behavior in the Workplace," ERIM Report Series Research in Management ERS-2009-021-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    10. Sean Valentine & Philip Varca & Lynn Godkin & Tim Barnett, 2010. "Positive Job Response and Ethical Job Performance," Journal of Business Ethics, Springer, vol. 91(2), pages 195-206, January.
    11. Ingo Winkler, 2011. "The Representation of Social Actors in Corporate Codes of Ethics. How Code Language Positions Internal Actors," Journal of Business Ethics, Springer, vol. 101(4), pages 653-665, July.
    12. Brennan, Linda & Binney, Wayne & McCrohan, Janelle & Lancaster, Narelle, 2011. "Implementation of environmental sustainability in business: Suggestions for improvement," Australasian marketing journal, Elsevier, vol. 19(1), pages 52-57.
    13. Bram Constandt & Els Waegeneer & Annick Willem, 2019. "Ethical Code Effectiveness in Football Clubs: A Longitudinal Analysis," Journal of Business Ethics, Springer, vol. 156(3), pages 621-634, May.
    14. Gino, Francesca & Pierce, Lamar, 2009. "The abundance effect: Unethical behavior in the presence of wealth," Organizational Behavior and Human Decision Processes, Elsevier, vol. 109(2), pages 142-155, July.
    15. Valentine, Sean & Godkin, Lynn, 2019. "Moral intensity, ethical decision making, and whistleblowing intention," Journal of Business Research, Elsevier, vol. 98(C), pages 277-288.
    16. K. Parboteeah & Hsien Chen & Ying-Tzu Lin & I-Heng Chen & Amber Lee & Anyi Chung, 2010. "Establishing Organizational Ethical Climates: How Do Managerial Practices Work?," Journal of Business Ethics, Springer, vol. 97(4), pages 599-611, December.
    17. Kaptein, S.P. & Schwartz, M.S., 2007. "The Effectiveness of Business Codes: A Critical Examination of Existing Studies and the Development of an Integrated Research Model," ERIM Report Series Research in Management ERS-2007-030-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    18. Filipe Sobral & Gazi Islam, 2013. "Ethically Questionable Negotiating: The Interactive Effects of Trust, Competitiveness, and Situation Favorability on Ethical Decision Making," Journal of Business Ethics, Springer, vol. 117(2), pages 281-296, October.
    19. William D. Brink & Tim V. Eaton & Jonathan H. Grenier & Andrew Reffett, 2019. "Deterring Unethical Behavior in Online Labor Markets," Journal of Business Ethics, Springer, vol. 156(1), pages 71-88, April.
    20. Mari Huhtala & Taru Feldt & Katriina Hyvönen & Saija Mauno, 2013. "Ethical Organisational Culture as a Context for Managers’ Personal Work Goals," Journal of Business Ethics, Springer, vol. 114(2), pages 265-282, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:112:y:2013:i:3:p:497-514. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.