IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v116y2013i2p233-250.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10551-012-1459-3
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-012-1459-3?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. 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.
    2. Maurice Schweitzer & Donald Gibson, 2008. "Fairness, Feelings, and Ethical Decision- Making: Consequences of Violating Community Standards of Fairness," Journal of Business Ethics, Springer, vol. 77(3), pages 287-301, February.
    3. Dubinsky, Alan J. & Loken, Barbara, 1989. "Analyzing ethical decision making in marketing," Journal of Business Research, Elsevier, vol. 19(2), pages 83-107, September.
    4. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    5. Nicole Andreoli & Joel Lefkowitz, 2009. "Individual and Organizational Antecedents of Misconduct in Organizations," Journal of Business Ethics, Springer, vol. 85(3), pages 309-332, March.
    6. Dohmen, Thomas J., 2008. "Do professionals choke under pressure?," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 636-653, March.
    7. Arun Iyer, 2006. "The Missing Dynamic: Corporations, Individuals and Contracts," Journal of Business Ethics, Springer, vol. 67(4), pages 393-406, September.
    8. Hosmer, LaRue Tone, 1988. "Adding ethics to the business curriculum," Business Horizons, Elsevier, vol. 31(4), pages 9-15.
    9. 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.
    10. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    11. Henry Mintzberg, 1978. "Patterns in Strategy Formation," Management Science, INFORMS, vol. 24(9), pages 934-948, May.
    12. David Fritzsche & E. Oz, 2007. "Personal Values’ Influence on the Ethical Dimension of Decision Making," Journal of Business Ethics, Springer, vol. 75(4), pages 335-343, November.
    13. Deanne Hartog & Frank Belschak, 2012. "Work Engagement and Machiavellianism in the Ethical Leadership Process," Journal of Business Ethics, Springer, vol. 107(1), pages 35-47, April.
    14. Anonymous, 1960. "World Health Organization," International Organization, Cambridge University Press, vol. 14(3), pages 473-475, July.
    15. Anonymous, 1960. "World Health Organization," International Organization, Cambridge University Press, vol. 14(1), pages 212-214, January.
    16. Clive R. Boddy, 2011. "The Corporate Psychopaths Theory of the Global Financial Crisis," Palgrave Macmillan Books, in: Corporate Psychopaths, chapter 14, pages 163-166, Palgrave Macmillan.
    17. Jennifer Jordan, 2009. "A Social Cognition Framework for Examining Moral Awareness in Managers and Academics," Journal of Business Ethics, Springer, vol. 84(2), pages 237-258, January.
    18. Jennifer Nevins & William Bearden & Bruce Money, 2007. "Ethical Values and Long-term Orientation," Journal of Business Ethics, Springer, vol. 71(3), pages 261-274, March.
    19. Anonymous, 1960. "World Health Organization," International Organization, Cambridge University Press, vol. 14(4), pages 673-674, October.
    20. Stephen Chen, 2010. "The Role of Ethical Leadership Versus Institutional Constraints: A Simulation Study of Financial Misreporting by CEOs," Journal of Business Ethics, Springer, vol. 93(1), pages 33-52, June.
    21. Clive Boddy, 2011. "The Corporate Psychopaths Theory of the Global Financial Crisis," Journal of Business Ethics, Springer, vol. 102(2), pages 255-259, August.
    22. Joel Amernic & Russell Craig, 2010. "Accounting as a Facilitator of Extreme Narcissism," Journal of Business Ethics, Springer, vol. 96(1), pages 79-93, September.
    23. Phil Harris, 2010. "Machiavelli and the Global Compass: Ends and Means in Ethics and Leadership," Journal of Business Ethics, Springer, vol. 93(1), pages 131-138, June.
    24. L. J. Bourgeois, III & Kathleen M. Eisenhardt, 1988. "Strategic Decision Processes in High Velocity Environments: Four Cases in the Microcomputer Industry," Management Science, INFORMS, vol. 34(7), pages 816-835, July.
    25. Lynn Godkin & Seth Allcorn, 2011. "Organizational Resistance to Destructive Narcissistic Behavior," Journal of Business Ethics, Springer, vol. 104(4), pages 559-570, December.
    26. Gregory Stevens & Jacqueline Deuling & Achilles Armenakis, 2012. "Successful Psychopaths: Are They Unethical Decision-Makers and Why?," Journal of Business Ethics, Springer, vol. 105(2), pages 139-149, January.
    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. Margaret Oppenheimer & Helen LaVan & William Martin, 2015. "A Framework for Understanding Ethical and Efficiency Issues in Pharmaceutical Intellectual Property Litigation," Journal of Business Ethics, Springer, vol. 132(3), pages 505-524, December.
    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.
    12. 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.
    13. Mark S. Schwartz, 2016. "Ethical Decision-Making Theory: An Integrated Approach," Journal of Business Ethics, Springer, vol. 139(4), pages 755-776, December.

    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. Johannes Brunzel, 2021. "Overconfidence and narcissism among the upper echelons: a systematic literature review," Management Review Quarterly, Springer, vol. 71(3), pages 585-623, July.
    2. Feyrer, James & Politi, Dimitra & Weil, David N., 2010. "The Economic Effects of Micronutrient Deficiency: Evidence from Salt Iodization in the United States," SIRE Discussion Papers 2010-10, Scottish Institute for Research in Economics (SIRE).
    3. Sh. Barzilai & A.M. Davies, 1972. "Personality and Social Aspects of Mental Disease in Jerusalem Women," International Journal of Social Psychiatry, , vol. 18(1), pages 22-28, April.
    4. Mihaela Cazacu & Emilia Ţiţan & Daniela-Ioana Manea & Mihaela Mihai, 2021. "The Impact of Digitalization in Mitigating the Effects of the COVID-19 Pandemic for Silver Population," Romanian Journal of Economics, Institute of National Economy, vol. 52(1(61)), pages 50-57, June.
    5. Shivalingappa B Javali & Parameshwar V Pandit, 2012. "Multiple Logistic Regression Model To Predict Risk Factors Of Oral Health Diseases," Romanian Statistical Review, Romanian Statistical Review, vol. 60(5), pages 73-86, June.
    6. Smith, Kenneth J. & Emerson, David J. & Mauldin, Shawn, 2021. "Online cheating at the intersection of the dark triad and fraud diamond," Journal of Accounting Education, Elsevier, vol. 57(C).
    7. Jacqueline C. Wisler, 2018. "U.S. CEOs of SBUs in Luxury Goods Organizations: A Mixed Methods Comparison of Ethical Decision-Making Profiles," Journal of Business Ethics, Springer, vol. 149(2), pages 443-518, May.
    8. Fatin Aminah Hassan & Nobuaki Minato & Shuichi Ishida & Norashidah Mohamed Nor, 2017. "Social Environment Determinants of Life Expectancy in Developing Countries: A Panel Data Analysis," Global Journal of Health Science, Canadian Center of Science and Education, vol. 9(5), pages 105-105, May.
    9. Macauley, Cameron, 2005. "Aggressive active case detection: a malaria control strategy based on the Brazilian model," Social Science & Medicine, Elsevier, vol. 60(3), pages 563-573, February.
    10. Politi, Dimitra, 2010. "The Impact of Iodine Deficiency Eradication on Schooling: Evidence from the Introduction of Iodized Salt in Switzerland," SIRE Discussion Papers 2010-02, Scottish Institute for Research in Economics (SIRE).
    11. Dan Chiaburu & Gonzalo Muñoz & Richard Gardner, 2013. "How to Spot a Careerist Early On: Psychopathy and Exchange Ideology as Predictors of Careerism," Journal of Business Ethics, Springer, vol. 118(3), pages 473-486, December.
    12. Chen, Yu-Fu & Zoega, Gylfi, 2010. "Strong Hysteresis due to Age Effects," SIRE Discussion Papers 2010-09, Scottish Institute for Research in Economics (SIRE).
    13. Nazanin Mansouri & Khaled Goher, 2016. "Walking Aids for Older Adults: Review of End-User Needs," Asian Social Science, Canadian Center of Science and Education, vol. 12(12), pages 109-109, December.
    14. James Feyrer & Dimitra Politi & David N. Weil, 2017. "The Cognitive Effects of Micronutrient Deficiency: Evidence from Salt Iodization in the United States," Journal of the European Economic Association, European Economic Association, vol. 15(2), pages 355-387.
    15. Andrew B. Appleby, 1977. "Famine, Mortality, and Epidemic Disease: A Comment," Economic History Review, Economic History Society, vol. 30(3), pages 508-512, August.
    16. Joel Amernic & Russell Craig, 2013. "Leadership Discourse, Culture, and Corporate Ethics: CEO-speak at News Corporation," Journal of Business Ethics, Springer, vol. 118(2), pages 379-394, December.
    17. Joseph McManus, 2018. "Hubris and Unethical Decision Making: The Tragedy of the Uncommon," Journal of Business Ethics, Springer, vol. 149(1), pages 169-185, April.
    18. Radboud J. Duintjer Tebbens & Mark A. Pallansch & Konstantin M. Chumakov & Neal A. Halsey & Tapani Hovi & Philip D. Minor & John F. Modlin & Peter A. Patriarca & Roland W. Sutter & Peter F. Wright & S, 2013. "Review and Assessment of Poliovirus Immunity and Transmission: Synthesis of Knowledge Gaps and Identification of Research Needs," Risk Analysis, John Wiley & Sons, vol. 33(4), pages 606-646, April.
    19. Brimnes, Niels, 2008. "BCG vaccination and WHO's global strategy for tuberculosis control 1948-1983," Social Science & Medicine, Elsevier, vol. 67(5), pages 863-873, September.
    20. Tafesse, W.;, 2018. "The effect of mandatory iodine fortification on cognitive test scores in rural India," Health, Econometrics and Data Group (HEDG) Working Papers 18/10, HEDG, c/o Department of Economics, University of York.

    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:116:y:2013:i:2:p:233-250. 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.