Skip to main content
SpringerLink
Log in

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

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Akaah, I. P. (1992). Social inclusion as a marketing ethics correlate. Journal of Business Ethics, 11, 599–608.

    Article  Google Scholar 

  • Ambrose, M. L., & Schminke, M. (1999). Sex differences in business ethics: The importance of perceptions. Journal of Management Issues, 11, 454–474.

    Google Scholar 

  • Ambrose, M. L., Arnaud, A., & Schminke, M. (2008). Individual moral development and ethical climate: The influence of person-organization fit on job attitudes. Journal of Business Ethics, 77, 323–333.

    Article  Google Scholar 

  • Ashforth, B. E., & Mael, F. (1989). Social identity theory and the organization. Academy of Management Review, 14(1), 20–39.

    Google Scholar 

  • Barnett, T. (1992). A preliminary investigation of the relationship between selected organizational characteristics and external whistleblowing by employees. Journal of Business Ethics, 11, 949–959.

    Article  Google Scholar 

  • Bass, K., Barnett, T., & Brown, G. (1999). Individual difference variables, ethical judgments, and ethical behavioral intentions. Business Ethics Quarterly, 9(2), 183–205.

    Article  Google Scholar 

  • Bliuc, A., McGarty, C., Reynolds, K., & Muntele, D. (2007). Opinion-based group membership as a predictor of commitment to political action. European Journal of Social Psychology, 37, 19–32.

    Article  Google Scholar 

  • Brenner, S. N., & Molander, E. A. (1977). Is the ethics of business changing? Harvard Business Review, 55(1), 57.

    Google Scholar 

  • Burton, B. K., & Hegarty, W. H. (1999). Some determinants of student corporate social responsibility orientation. Business and Society, 38(2), 188–205.

    Article  Google Scholar 

  • Cable, D. M., & Parsons, C. K. (2001). Socialization tactics and person-organization fit. Personnel Psychology, 54, 1–23.

    Article  Google Scholar 

  • Chatman, J. (1991). Matching people and organizations: Selection and socialization in public accounting firms. Administrative Science Quarterly, 36, 459–484.

    Article  Google Scholar 

  • Cohen, J. R., Pant, L. W., & Sharp, D. J. (2001). An examination of differences in ethical-decision making between canadian business students and accounting professionals. Journal of Business Ethics, 30(4), 319–336.

    Article  Google Scholar 

  • Douglas, P. C., Davidson, R. A., & Schwartz, B. N. (2001). The effect of organizational culture and ethical orientation on accountants’ ethical judgments. Journal of Business Ethics, 34(2), 101–121.

    Article  Google Scholar 

  • Ehrlich, C. 2005. Is business ethics necessary? DePaul Business & Commerce Law Journal, 4, 55–62, Fall.

    Google Scholar 

  • Ellemers, N., Spears, R., & Doosje, B. (2002). Self and social identity. Annual Review of Psychology, 53, 161–186.

    Article  Google Scholar 

  • Ferrell, O. C., & Gresham, L. G. (1985). A contingency framework for understanding ethical decision making in marketing. Journal of Marketing, 49(30), 87.

    Article  Google Scholar 

  • Ford, R. C., & Richardson, W. D. (1994). Ethical decision making: A review of the empirical literature. Journal of Business Ethics, 13, 205–221.

    Article  Google Scholar 

  • Fritzsche, D. (2000). Ethical climates and the ethical dimension of decision-making. Journal of Business Ethics, 24, 125–140.

    Article  Google Scholar 

  • George, E., & Chattopadhyay, P. (2002). Do differences matter? Understanding demography-related effects in organisations. Australian Journal of Management, 27, 47–55.

    Article  Google Scholar 

  • Glantz, S. A., & Slinker, B. K. (1990). Primer of applied regression and analysis of variance. New York: McGraw-Hill.

    Google Scholar 

  • Goles, T., White, G. B., Beebe, N., Dorantes, C. A., & Hewitt, B. (2006). Moral intensity and ethical decision-making: A contextual extension. Database for Advances in Information Systems, 37(2/3), 86–95.

    Article  Google Scholar 

  • Gottlieb, J. Z., & Sanzgiri, J. (1996). Towards an ethical dimension of decision making in organizations. Journal of Business Ethics, 15, 1275–1285.

    Article  Google Scholar 

  • Grojean, M. W., Resick, C. J., Dickson, M. W., & Smith, D. B. (2004). Leaders, values, and organizational climate: Examining leadership strategies for establishing an organizational climate regarding ethics. Journal of Business Ethics, 55, 223–241.

    Article  Google Scholar 

  • Gundlach, M., Zivnuska, S., & Stoner, J. (2006). Understanding the relationship between individualism-collectivism and team performance through an integration of social identity theory and the social relations model. Human Relations, 59(12), 1603–1632.

    Article  Google Scholar 

  • Harrington, S. J. (1997). A test of a person—Issue contingent model of ethical decision making in organizations. Journal of Business Ethics, 16, 363–375.

    Article  Google Scholar 

  • Hogg, M. A., & Terry, D. J. (2001). Social identity theory and organizational processes. In M. A. Hogg & D. J. Terry (Eds.), Social identity processes in organizational contexts (pp. 1–12). Ann Arbor: Psychology Press.

    Google Scholar 

  • Hogg, M. A., Terry, D. J., & White, K. M. (1995). A tale of two theories: A critical comparison of identity theory with social identity theory. Social Psychology Quarterly, 58(4), 255–269.

    Article  Google Scholar 

  • Hosmer, L. T. (2006). The ethics of management. Boston: McGraw-Hill Irwin.

    Google Scholar 

  • Ibrahim, N. A., & Angelidis, J. P. (1995). The corporate social responsiveness orientation of board members: Are there differences between inside and outside directors? Journal of Business Ethics, 14, 405–410.

    Article  Google Scholar 

  • Jaffe, E. D., & Pasternak, H. (2006). Moral intensity as a predictor of social responsibility. Business Ethics: A European Review, 15(1), 53–63.

    Article  Google Scholar 

  • Johnson, D., Terry, D. J., & Louis, W. R. (2005). Perceptions of the intergroup structure and anti-Asian prejudice among white Australians. Group Processes & Intergroup Relations, 8(1), 53–71.

    Article  Google Scholar 

  • Jones, T. M. (1991). Ethical decision making by individuals in organizations: An issue-contingent model. The Academy of Management Review, 16(2), 366–395.

    Google Scholar 

  • Kaptein, M., & Wempe, J. (2002). The balanced company: A theory of corporate integrity. Oxford: Oxford University Press.

    Book  Google Scholar 

  • Kaye, B. N. (1992). Codes of ethics in australian business corporations. Journal of Business Ethics, 11, 857–862.

    Article  Google Scholar 

  • Kelley, P. C., & Elm, D. R. (2003). The effect of context on moral intensity of ethical issues: Revising Jones’s issue contingent model. Journal of Business Ethics, 48, 139–154.

    Article  Google Scholar 

  • Kelley, S. W., Ferrell, O. C., & Skinner, S. J. (1990). Ethical behavior among marketing researchers: an assessment of selected demographic characteristics. Journal of Business Ethics, 9, 681–688.

    Article  Google Scholar 

  • Laverie, D. A., & Arnett, D. B. (2000). Factors affecting fan attendance: The influence of identity salience and satisfaction. Journal of Leisure Research, 32(2), 225–246.

    Google Scholar 

  • Lewicki, R. J., & Robinson, R. (1998). Ethical and unethical bargaining tactics: An empirical study. Journal of Business Ethics, 17, 665–682.

    Google Scholar 

  • Libby, B., & Agnello, V. (2000). Ethical decision making and the law. Journal of Business Ethics, 26(3), 223–232.

    Article  Google Scholar 

  • Locke, E. A. (1991). The motivation sequence, the motivation hub, and the motivation core. Organizational Behavior and Human Decision Processes, 50, 288–299.

    Article  Google Scholar 

  • Loe, T. W., Ferrell, L., & Mansfield, P. (2000). A review of empirical studies assessing ethical decision making in business. Journal of Business Ethics, 25, 185–204.

    Article  Google Scholar 

  • Loviscky, G. E., Treviño, L. K., & Jacobs, R. R. (2007). Assessing managers’ ethical decision-making: An objective measure of managerial moral judgment. Journal of Business Ethics, 73(3), 263–285.

    Article  Google Scholar 

  • Mallor, J. P., Barnes, A. J., Bowers, T., & Langvardt, A. W. (2010). Business law (14th ed.). New York: McGraw-Hill Irwin.

    Google Scholar 

  • McCabe, D. L., Treviño, L. K., & Butterfield, K. D. (1996). The influence of collegiate and corporate codes of conduct on ethics-related behavior in the workplace. Business Ethics Quarterly, 6(4), 461–476.

    Article  Google Scholar 

  • McDevitt, R., & Van Hise, J. (2002). Influences in ethical dilemmas of increasing intensity. Journal of Business Ethics, 40(3), 261–274.

    Article  Google Scholar 

  • McMahon, J. M., & Harvey, R. J. (2007). The effect of moral intensity on ethical judgment. Journal of Business Ethics, 72, 335–357.

    Article  Google Scholar 

  • Meglino, B. M., & Ravlin, E. C. (1998). Individual values in organizations: concepts, controversies, and research. Journal of Management, 24, 351–389.

    Google Scholar 

  • Meyer, J. P., Becker, T. E., & van Dick, R. (2006). Social identities and commitments at work: Toward an integrative model. Journal of Organizational Behavior, 27(5), 665–683.

    Article  Google Scholar 

  • Nguyen, N. T., & Biderman, M. D. (2008). Studying ethical judgments and behavioral intentions using structural equations: Evidence from the multidimensional ethics scale. Journal of Business Ethics, 83, 627–640.

    Article  Google Scholar 

  • Nijhof, A., Cludts, S., Fisscher, O., & Laan, A. (2003). Measuring the implementation of codes of conduct an assessment method based on a process approach of the responsible organization. Journal of Business Ethics, 45, 65–78.

    Article  Google Scholar 

  • O’Fallon, M. J., & Butterfield, K. D. (2005). A review of the empirical ethical decision-making literature: 1996–2003. Journal of Business Ethics, 59(4), 375–413.

    Article  Google Scholar 

  • Pearce, J. A. II., , & Doh, J. (2005). The high impact of collaborative social initiatives. MIT-Sloan Management Review, 46(3), 30–39.

    Google Scholar 

  • Pinkston, T. S., & Carroll, A. B. (1996). A retrospective examination of CSR orientations: Have they changed? Journal of Business Ethics, 15, 199–206.

    Article  Google Scholar 

  • Podsakoff, P. M., McKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.

    Article  Google Scholar 

  • Priem, R., Worrell, D., Walters, B., & Coalter, T. (1998). Moral judgment and values in a developed and a developing nation: A comparative analysis. Journal of Business Ethics, 17(5), 491–501.

    Google Scholar 

  • Reichers, A. E., & Schneider, B. (1990). Climate and culture: An evolution of constructs. In B. Schneider (Ed.), Organizational climate and culture (pp. 5–39). San Francisco: Jossey Bass.

    Google Scholar 

  • Rest, J., Cooper, D., Coder, R., Masanz, J., & Anderson, D. (1986). Moral development advances in research and theory. New York: Praeger Publishers.

    Google Scholar 

  • Robinson, R. J., Lewicki, R. J., & Donahue, E. M. (2000). Extending and testing a five factor model of ethical and unethical bargaining tactics: Introducing the SINS scale. Journal of Organizational Behavior, 21(6), 649.

    Article  Google Scholar 

  • Rokeach, M. (1973). The nature of human values. New York: The Free Press.

    Google Scholar 

  • Scheffé, H. (1970). Practical solutions of the Behrens-Fisher problem. Journal of the American Statistical Association, 65, 1501–1508.

    Article  Google Scholar 

  • Schneider, B., & Reichers, A. (1983). On the etiology of climates. Personnel Psychology, 36, 19–39.

    Article  Google Scholar 

  • Schwartz, M. S., & Carroll, A. B. (2003). Corporate social responsibility: A three-domain approach. Business Ethics Quarterly, 13(4), 503–530.

    Article  Google Scholar 

  • Shepard, J. M. (2002). Sociology (8th ed.). Stamford: Wadsworth Thomson Learning.

    Google Scholar 

  • Singhapakdi, A., & Vitell, S. J. (1990). Marketing ethics: Factors influencing perceptions of ethical problems and alternatives. Journal of Macromarketing, 12(Spring), 4–18.

    Article  Google Scholar 

  • Singhapakdi, A., Vitell, S. J., & Franke, G. R. (1999). Antecedents, consequences, and mediating effects of perceived moral intensity and personal moral philosophies. The Journal of Academy of Marketing Science, 27(1), 19–35.

    Article  Google Scholar 

  • Sluss, D. M., & Ashforth, B. E. (2007). Relational identity and identification: Defining ourselves through work relationships. The Academy of Management Review, 32(1), 9–32.

    Article  Google Scholar 

  • Smith, W. J., Wokutch, R. E., Harrington, K. V., & Dennis, B. S. (2001). An examination of the influence of diversity and stakeholder role on corporate social orientation. Business and Society, 40(3), 266–294.

    Article  Google Scholar 

  • Spears, R., Dossje, B., & Ellemers, N. (1997). Self-stereotyping in the face of threats to group status and distinctiveness: The role of group identification. Personality and Social Psychology Bulletin, 23(5), 538–543.

    Article  Google Scholar 

  • Stevens, B. (2008). Corporate ethical codes: Effective instruments for influencing behavior. Journal of Business Ethics, 78, 601–609.

    Article  Google Scholar 

  • Swanson, D. L. (1999). Toward an integrative theory of business and society: A research strategy for corporate social performance. Academy of Management Review, 24(3), 521–596.

    Google Scholar 

  • Tajfel, H. (1982). Social psychology of intergroup relations. Annual Review of Psychology, 33, 1–39.

    Article  Google Scholar 

  • Tang, T. L.-P., & Chiu, R. K. (2003). Income, money ethic, pay satisfaction, commitment, and unethical behavior: Is the love of money the root of evil for Hong Kong employees? Journal of Business Ethics, 46(1), 13–30.

    Article  Google Scholar 

  • Terpstra, D. E., Rozell, E. J., & Robinson, R. K. (1993). The influence of personality and demographic variables on ethical decisions related to insider trading. The Journal of Psychology, 127(4), 375–390.

    Article  Google Scholar 

  • Treviño, L. K. (1986). Ethical decision-making in organizations: A person-situation interactionist model. Academy of Management Review, 11, 601–617.

    Google Scholar 

  • Treviño, L. K. (1992). Moral reasoning and business ethics: Implications for research, education and management. Journal of Business Ethics, 11, 445.

    Google Scholar 

  • Treviño, L. K., Butterfield, K. D., & McCabe, D. L. (1998). The ethical context in organizations: Influences on employee attitudes and behaviors. Business Ethics Quarterly, 8(3), 447–476.

    Article  Google Scholar 

  • Turner, J. C., Brown, R. J., & Tajfel, H. (1979). Social comparison and group interest in ingroup favouritism. European Journal of Social Psychology, 9, 187–204.

    Article  Google Scholar 

  • Tyson, T. (1992). Does believing that everyone else is less ethical have an impact on work behavior? Journal of Business Ethics, 11, 707–717.

    Article  Google Scholar 

  • Valentine, S., Godkin, L., Page, K., & Rittenburg, T. (2009). Gender and ethics: Ethical judgments, ethical intentions, and altruism among healthcare professionals. Gender in Management, 24(2), 112–130.

    Article  Google Scholar 

  • VanSandt, C. V., Shepard, J. M., & Zappe, S. M. (2006). An examination of the relationship between ethical work climate and moral awareness. Journal of Business Ethics, 68, 409–432.

    Article  Google Scholar 

  • Victor, B., & Cullen, J. B. (1988). The organizational bases of ethical work climates. Administrative Science Quarterly, 33, 101–125.

    Article  Google Scholar 

  • Vitell, S. J., & Festervand, T. A. (1987). Business ethics: Conflict, practices and beliefs of industrial executives. Journal of Business Ethics, 6, 111–122.

    Article  Google Scholar 

  • Weber, J. (1992). Scenarios in business ethics research: Review, critical assessment, and recommendations. Business Ethics Quarterly, 2(2), 137–159.

    Article  Google Scholar 

  • Weber, J. (1995). Influences upon organizational ethical subclimates: A multi-departmental analysis of a single firm. Organization Science, 6, 509–523.

    Article  Google Scholar 

  • Westerman, J. W., Beekun, R. I., Stedham, Y., & Yamamura, J. (2007). Peers versus national culture: An analysis of antecedents to ethical decision-making. Journal of Business Ethics, 75, 239–252.

    Article  Google Scholar 

  • Whipple, T. W., & Swords, D. F. (1992). Business ethics judgments: A cross-cultural comparison. Journal of Business Ethics, 11, 671–678.

    Article  Google Scholar 

  • Wimalasiri, J. S., Pavri, F., & Jalil, A. A. K. (1996). An empirical study of moral reasoning among managers in Singapore. Journal of Business Ethics, 15, 1331–1341.

    Article  Google Scholar 

  • Winer, B. J. (1971). Statistical principles in experimental design (2nd ed.). New York: McGraw-Hill.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Management and Operations, Villanova School of Business, Villanova University, 800 Lancaster Avenue, Villanova, PA, 19085-1678, USA

    John A. Pearce II

Authors
  1. John A. Pearce II
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to John A. Pearce II.

Appendix A

Appendix A

Scenarios

  1. 1.

    Hewlett-Packard (HP) Chairman Patricia Dunn knew there was a boardroom leak when details of board meeting discussions were reported by the media. Dunn wanted to prevent the spread of additional sensitive and confidential information, so she hired a private investigation (PI) service to investigate HP’s Board members. The PIs surreptitiously obtained the HP directors’ personal telephone records from their individual telephone service providers by “pretexting”, which involves falsely claiming to represent the owner of the phone. Charged with illegal behavior, Dunn testified before a U.S. House of Representatives’ subcommittee and admitted that she instructed the PI service to obtain and scrutinize personal phone records of HP directors, but said she believed it was a customary HP practice and that the records came from publicly available sources.

Please check two boxes below to indicate the extent to which the actions of Patricia Dunn were legal and ethical.

How important are the ethical issues in your evaluation of this scenario? Please check one box below.

How important are the legal issues in your evaluation of this scenario? Please check one box below.

  1. 2.

    In 2006, the Securities and Exchange Commission investigated homebuilder KB Home and its CEO of 34 years Bruce Karatz for using incorrect dates in granting stock options. Altering the dates resulted in extra compensation of $50 M for Karatz and KB Home’s other key executives over an 8-year period. As the probe began, three officers were replaced: Karatz, the head of human resources, and the chief legal officer. Simultaneously, KB Home filled newly created positions of chief compliance officer and risk assessment officer.

Please check two boxes below to indicate the extent to which the actions of Bruce Karatz were legal and ethical.

How important are the ethical issues in your evaluation of this scenario? Please check one box below.

How important are the legal issues in your evaluation of this scenario? Please check one box below.

  1. 3.

    John Blystone, CEO of SPX Corporation (SPW), participated in a 10b5-1 trading plan. The Securities and Exchange Commission created such trading plans to clarify the rules under which executives can sell their shares in their company. The executives are protected from insider trading violations as long as they initiate the plan with their lawyer or broker at a time when they do not know of any significant nonpublic information, they lay out in advance the dates or prices at which sales will be made, and they do not control the trades. In mid-February, Blystone prepped investors for a strong earnings report due in late February. The stock shot to $53 per share. He also announced that he set up a 10b5-1 for personal, financial, and estate planning purposes. Days later, he sold his 800,000 SPW shares valued at $45.3 M. The following day, news leaked that the jump in earnings that he reported resulted from one-time gains by SPW. Share value dropped 21 % that day and continued to fall. Investors filed suit against Blystone, accusing him of insider trading.

Please check two boxes below to indicate the extent to which the actions of John Blystone were legal and ethical.

How important are the ethical issues in your evaluation of this scenario? Please check one box below.

How important are the legal issues in your evaluation of this scenario? Please check one box below.

  1. 4.

    The Federal Election Commission bans corporations from donating to a politician’s campaign. However, corporate CEOs are permitted to offer politicians flights on their corporate jets. To adhere to the law, the politician must reimburse the corporation only for the cost of a seat on a commercial flight to the same city, thereby saving the politician’s campaign the substantially greater cost of chartering a private plane, and the time and inconvenience of flying commercially. A CEO, in turn, gains potential exposure to the politicians and the ability to be of service. Between 2001 and 2007, 192 politicians made 2,300 such flights aboard corporate aircrafts.

Please check two boxes below to indicate the extent to which the actions of a CEO who authorized the use of the corporate jet as described above were legal and ethical.

How important are the ethical issues in your evaluation of this scenario? Please check one box below.

How important are the legal issues in your evaluation of this scenario? Please check one box below.

  1. 5.

    Billionaire Mark Cuban is digging up ‘dirt’ on Corporate America and is publishing it on his new website, Sharesleuth.com. Cuban hired a financial journalist to root out unsavory business practices and misleading accounting statements of public companies. Cuban shorts the stocks of the offending companies before publishing the information on Sharesleuth.com, and then reaps a profit as the stock prices go down. Legally, journalists cannot trade stock of a company if they know an article about that stock is about to be published, because the knowledge in the article is considered the property of the publication or website. However, since Cuban owns the website, he owns the information and misappropriation is not an issue.

Please check two boxes below to indicate the extent to which the actions of Mark Cuban were legal and ethical.

How important are the ethical issues in your evaluation of this scenario? Please check one box below.

How important are the legal issues in your evaluation of this scenario? Please check one box below.

  1. 6.

    National Football League commissioner Roger Goodell fined New England Patriots coach Bill Belichick the maximum amount of $500,000 and docked the team $250,000 and a first-round draft pick as punishment for violating the League rule against videotaping opposing coaches as they used hand-signals to call plays during a game. By doing so, Goodell branded the Patriots as cheaters. Patriots’ owner Robert Kraft issued a statement: “I believe that Coach Belichick always tries to do what is best for the team and he is always accountable for his decisions. …I accept his apology and look forward to working with him as we move forward.” Belichick was peppered with questions from reporters on the scandal. He seemed bemused by their repeated attempts to get him to expand on his statement that he accepted “full responsibility for the actions”. “It doesn’t matter,” Belichick said. “It already happened. So right now, we’re focusing in on what’s in front of us, and that’s the Chargers (football team).”

Please check two boxes below to indicate the extent to which the actions of Bill Belichick were legal and ethical.

How important are the ethical issues in your evaluation of this scenario? Please check one box below.

How important are the legal issues in your evaluation of this scenario? Please check one box below.

  1. 7.

    Barnes and Noble, under the leadership of CEO Leonard Riggio, announced that O.J. Simpson’s book “If I Did It” would not be stocked in its stores, and would only be available by special order or for purchase online through Barnes and Noble.com. “If I Did It” is Simpson’s ghostwritten, hypothetical story of how he would have murdered Nicole Brown Simpson and Ronald Goldman. Goldman’s father, Fred Goldman, called the book “Simpson’s confession” and labeled it “disgusting and despicable”. Simpson maintained his innocence in the 1994 killings in Los Angeles, and was acquitted of the murders in 1995. Later, Simpson was found liable for the killings in a wrongful-death suit filed by the Goldman family and ordered to pay a $33.5 million judgment against him, which he failed to do, pleading bankruptcy.

Please check two boxes below to indicate the extent to which the actions of Leonard Riggio were legal and ethical.

How important are the ethical issues in your evaluation of this scenario? Please check one box below.

How important are the legal issues in your evaluation of this scenario? Please check one box below.

  1. 8.

    The American Red Cross ousted its president Mark Everson after learning he had engaged in a “personal relationship” with an employee. Everson took the Red Cross job 6 months earlier as the charity sought to restructure itself after sharp criticism of its response to Hurricane Katrina. The Red Cross board of governors asked for and received Everson’s resignation, effective immediately. “The board concluded that the situation reflected poor judgment on his part and diminished his ability to lead the organization in the future.” Everson, who is married and has two children said, “I am resigning for personal and family reasons, and deeply regret it is impossible for me to continue a job so recently undertaken”. A Red Cross spokesperson said of Everson’s ouster: “This does not reflect on the organization. People felt we were moving forward.”

Please check two boxes below to indicate the extent to which the actions of Mark Everson were legal and ethical.

How important are the ethical issues in your evaluation of this scenario? Please check one box below.

How important are the legal issues in your evaluation of this scenario? Please check one box below.

  1. 9.

    Parents and child safety experts concerned about the online activities of teenagers have been particularly nervous about a Web site called Stickam, which allows its 600,000 registered users, who state their age as 14 or older, to participate in unfiltered live video chats using their Web cameras. A particular issue is that Stickam has close ties to a large online pornography business. As disclosed by Alex Becker, a former vice president at Stickam, and supported by internal company documents, Stickam is owned by Wataru Takahashi, who also owns and operates a network of Web sites offering live sex shows over Web cameras. Becker alleged that Stickam shared office space, employees, and computer systems with the pornographic Web sites. Becker said he was speaking out because the company was not doing enough to protect young users of its service. However, Scott Flacks, a Stickam vice president, denied the charge. Flacks said that Stickam operated independently of the pornography sites. He also said that Becker made the false claims and was being ‘‘retaliatory’’ because he had been unable to reach an agreement with Stickam that would enable him to create a site that would compete against the company.

Please check two boxes to indicate the extent to which the actions of Alex Becker were legal and ethical.

How important are the ethical issues in your evaluation of this scenario? Please check one box below.

How important are the legal issues in your evaluation of this scenario? Please check one box below.

  1. 10.

    The online social network MySpace.com offers unsigned music performers two things that only a major label could 15 years ago—a high-quality product and a mammoth distribution channel. Fans can now bypass traditional retail outlets and create a vast P2P (peer-to-peer) marketplace. Music lovers have always shared their finds, often illegally, and the music industry has fought this practice. However, for Chris DeWolfe, CEO of MySpace.com, the problem is not that his users illegally trade bootlegged music but that the marketplace has not responded to the mainstream consumers’ demonstrated need. DeWolfe claims that he is unconcerned about being found guilty for his illegal actions. His supporter, Terry McBride, CEO of Nettwerk Records, credits the breakaway success of one of his firm’s clients, the Format, to the indie band’s MySpace community. However, indie artists using MySpace.com must remind fans—those who came of age after Napster was forced to close for allowing illegal free trading of copyrighted music online—that music is a protected article of trade.

Check two boxes to indicate the extent to which the actions of Chris DeWolfe were legal and ethical.

How important are the ethical issues in your evaluation of this scenario? Please check one box below.

How important are the legal issues in your evaluation of this scenario? Please check one box below.

  1. 11.

    Newell and Juanita Spears were owners of a liquor store. Suspecting that a theft at their store was an inside job, they monitored and recorded employees’ calls made from the store phone. During a 3-month period, they recorded more than 22 h of conversations. These included an illicit deal by one female employee to provide liquor for an under-the-counter payment. The recorder also picked up several steamy phone calls between that employee and the customer with whom she made the deal. The Spears fired the employee for the theft and told her that they learned about her personal relationship with the customer from the recordings. Subsequently, the terminated employee and her lover successfully sued the Spears for violation of the federal wiretap law. The court found that the Spears had taped longer than necessary for their investigation. Taping the sexually provocative was judged to serve no business purpose.

Please check two boxes to indicate the extent to which the actions of the Spears were legal and ethical.

How important are the ethical issues in your evaluation of this scenario? Please check one box below.

How important are the legal issues in your evaluation of this scenario? Please check one box below.

  1. 12.

    Police in Virginia Beach, VA, confiscated two display posters from a national chain clothing store, and cited the store’s manager on a misdemeanor obscenity charge. The police issued the summons after the Abercrombie and Fitch store manager ignored their warnings to remove the images from the mall store after some customers complained. One photograph showed three shirtless young men, with one man’s upper buttocks showing. The other image was of a woman whose breast was mostly exposed. City code of Virginia Beach makes it a crime to display “obscene materials in a business that is open to juveniles.” The manager declined to comment, saying that he was waiting for guidance from corporate officials headquartered in Ohio who had provided all Abercrombie and Fitch managers with the posters for their store windows.

Please check two boxes below to indicate the extent to which the actions of the store’s manager were legal and ethical.

How important are the ethical issues in your evaluation of this scenario? Please check one box below.

How important are the legal issues in your evaluation of this scenario? Please check one box below.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Pearce, J.A. Using Social Identity Theory to Predict Managers’ Emphases on Ethical and Legal Values in Judging Business Issues. J Bus Ethics 112, 497–514 (2013). https://doi.org/10.1007/s10551-012-1274-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-012-1274-x

Keywords

Search

Navigation