Abstract
The purpose of this exploratory study is to examine the use of an ethical intervention strategy – counterexplanation – on individuals’ ethical decision-making. As opposed to providing reasons to support a decision in the case of explanation, counterexplanation is the provision of reasons that either speak against or provide evidence against a chosen course of action. The number of explanations and/or counterexplanations provided by the participants is expected to have a significant effect on ethical evaluation and intention. The number of explanations is expected to be negatively related to ethical decision-making while the number of counterexplanations is expected to be positively related to ethical decision-making. The experiment, that made use of five ethical vignettes, manipulated four treatment groups – explanation, counterexplanation, explanation/counterexplanation, and counterexplanation/explanation. Participants were randomly assigned to one of the four reatments. They performed the requirements of their treatment before recording their ethical evaluations and intentions. As expected, larger numbers of explanations led to less ethical decision-making and larger numbers of counterexplanations led to more ethical decision-making. However, when both types of explanations are required, the order of counterexplaining before explaining is more desirable as it leads to more ethical decision-making. The study also reports that individuals with high social desirability bias (a tendency to present oneself in a culturally acceptable manner) may generate less counterexplanations. Implications of the findings are explained in the paper.
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Appendices
Appendix 1. Ethical vignettes
Appliance
A salesperson has just been promoted to product manager. The salesperson’s first responsibility is for a new, highly successful small kitchen appliance. This person will be paid in part based on sales of this product. On reviewing information about the new product, the salesperson discovers that there has been insufficient product testing to meet new Commonwealth product safety guidelines. However, all testing so far indicated no likelihood of any safety problem.
Action: The salesperson authorizes the sales force to continue to promote and sell the product.
Loan
A promising new company applies for a loan at a bank. The Credit Manager at the bank is a friend of and frequently goes golfing with the company’s owner. Because of this new company’s short credit history, it does not meet the bank’s normal lending criteria.
Action: The Credit Manager recommends extending the loan.
Bad debts
The CEO of a company requests that the financial controller reduce the estimate for bad debts in order to increase reported income, arguing that this is a common practice in the industry when times are hard. Historically, the company has made very conservative allowances for doubtful accounts, even in bad years. The CEO’s request would make it one of the least conservative in the industry.
Action: The financial controller makes the adjustment.
Bonus
A sales manager realizes that the projected quarterly sales figures will not be met, and thus the manager will not receive a bonus. However, there is a customer order that if shipped before the customer needs it, will ensure that the manager receives the quarterly bonus but will have no effect on the annual sales figures.
Action: The sales manager ships the order this quarter to ensure that the quarterly sales bonus is earned.
Bribe
An Australian manager of a company eager to do more business abroad has been requested to make an undisclosed cash payment to a manager of a local distributor in a foreign country. The payment is requested as a “goodwill gesture” that will allow the Australian company to introduce its product in that foreign country. This practice is considered a normal business procedure in that country and no laws prohibit such a payment there.
Action: The Australian manager verbally authorizes the payment.
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Chung, J., Monroe, G.S. An Exploratory Study of Counterexplanation as an Ethical Intervention Strategy. J Bus Ethics 73, 245–261 (2007). https://doi.org/10.1007/s10551-006-9204-4
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DOI: https://doi.org/10.1007/s10551-006-9204-4