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The Dissolution of Ethical Decision-Making in Organizations: A Comprehensive Review and Model

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  • Ralph Jackson
  • Charles Wood
  • James Zboja

Abstract

The purpose of this research is to present the major factors that lead to ethical dissolution in an organization. Specifically, drawing from a wide spectrum of sources, this study explores the impact of organizational, individual, and contextual factors that converge to contribute to ethical dissolution. Acknowledging that ethical decisions are, in the final analysis, made by individuals, this study presents a model of ethical dissolution that gives insight into how a variety of elements coalesce to draw individuals into decisions that result in the ethical undoing of an otherwise healthy organization. ENRON, TYCO and WorldCom did not happen in a vacuum. Nor can such debacles be explained as simply one or two individuals who were morally corrupt. The ethical breakdowns that occurred in these companies happened over a period of time, involved numerous individuals both inside and outside of the organization, and brought about the implosion of viable companies. Seeking to extend the work of previous researchers, this study attempts to tie together a disparate set of factors into a cohesive explanation of ethical breakdowns in organizations. Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • 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.
    • Handle: RePEc:kap:jbuset:v:116:y:2013:i:2:p:233-250
    DOI: 10.1007/s10551-012-1459-3
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    2. Beatriz Garcia-Ortega & Javier Galan-Cubillo & Blanca de-Miguel-Molina, 2022. "CSR and CEO’s Moral Reasoning in the Automotive Industry in the Era of COVID-19," SAGE Open, , vol. 12(2), pages 21582440221, May.
    3. Vinson, Jeremy M. & Curtis, Mary B. & Conover, Teresa L. & Chui, Lawrence, 2020. "Ethical relativism in accounting: A cross-cultural examination of the influence of culture and risk taking propensity on ethical decision-making," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 41(C).
    4. Feng Xu & Cam Caldwell & Verl Anderson, 2016. "Moral Implications of Leadership - Transformative Insights," International Journal of Business and Social Research, LAR Center Press, vol. 6(3), pages 76-85, March.
    5. Valorie M. Leonard & Charles H. Bélanger & Leslie J. Wardley, 2016. "Examining the Ethical Behavior of Ontario Chartered Accountants: A Longitudinal Review of the Disciplinary Process," Accounting Perspectives, John Wiley & Sons, vol. 15(3), pages 169-199, September.
    6. Beatriz García-Ortega & Blanca de-Miguel-Molina & Javier Galán-Cubillo, 2019. "Examining CEOs’ Moral Reasoning in the Automotive Industry," Sustainability, MDPI, vol. 11(21), pages 1-24, October.
    7. Feng Xu & Cam Caldwell & Verl Anderson, 2016. "Moral Implications of Leadership - Transformative Insights," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 6(3), pages 76-85, March.
    8. Chung-wen Chen & Hsiu-Huei Yu & Kristine Velasquez Tuliao & Aditya Simha & Yi-Ying Chang, 2021. "Supervisors’ Value Orientations and Ethics: A Cross-National Analysis," Journal of Business Ethics, Springer, vol. 170(1), pages 167-180, April.
    9. Vasant Raval, 2018. "A Disposition-Based Fraud Model: Theoretical Integration and Research Agenda," Journal of Business Ethics, Springer, vol. 150(3), pages 741-763, July.
    10. Nicole Celestine & Catherine Leighton & Chris Perryer, 2020. "A Multifocal and Integrative View of the Influencers of Ethical Attitudes Using Qualitative Configurational Analysis," Journal of Business Ethics, Springer, vol. 162(1), pages 103-122, February.
    11. Alexander Leischnig & Arch G. Woodside, 2019. "Who Approves Fraudulence? Configurational Causes of Consumers’ Unethical Judgments," Journal of Business Ethics, Springer, vol. 158(3), pages 713-726, September.
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    13. Mark S. Schwartz, 2016. "Ethical Decision-Making Theory: An Integrated Approach," Journal of Business Ethics, Springer, vol. 139(4), pages 755-776, December.

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