Skip to main content
Log in

Business Ethics Perceptions of Public and Private Sector Iranians

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

Abstract

Ethical maturity is a great concern to all educators, firms, and investors across the globe. This research surveyed 448 citizens, managers and employees in Iran to measure their Personal Business Ethics Scores (PBES) to see if age, education, management experience, and government work experience make a difference in making more ethical decisions. This study contributes to the theory of moral development across the Iranian culture as it is the first known study using this method. The results suggest that education and more years of government work experience make a difference in the moral maturity of respondents. This study confirms that the ethical maturity of respondents is enhanced either through the authoritarian regime or socialization with Islamic values. Kohlberg’s moral development theory regarding ethical maturity is partially supported since those with more years of experience in government and more formal education have higher business ethics scores. Implications are discussed.

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

Access this article

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

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Ali, A. J., & Amirshahi, M. (2002). The Iranian manager: Work values and orientations. Journal of Business Ethics, 40, 133–143.

    Article  Google Scholar 

  • Ariail, D. L. (2005). Personal values, moral development, and their relationship: A study of certified public accountants. Doctoral Dissertation, Nova Southeastern University.

  • Arlow, P., & Ulrich, T. A. (1980). Business ethics, social responsibility and business students: An empirical comparison of Clark’s study. Akron Business and Economic Review, 11, 17–22.

    Google Scholar 

  • Arlow, P., & Ulrich, T. A. (1985). Business ethics and business school graduates: A longitudinal study. Akron Business Review, 16, 13–17.

    Google Scholar 

  • Bandura, A. (1986). Social foundations of thought and action: A social cognitive theory. Englewood Cliffs, N.J.: Prentice Hall.

  • Browning, J., & Zabriskie, N. B. (1983). How ethical are industrial buyers? Industrial Marketing Management, 12, 219–224.

    Article  Google Scholar 

  • Career overview. (2010). Career and job search resources. http://www.careeroverview.com/.

  • Cannon, C. (2001). Does education increase moral development? A re-examination of the moral reasoning abilities of working adult learners. Doctoral Dissertation, Nova Southeastern University.

  • Cavico, F. J., & Mujtaba, B. G. (2009). Business ethics: The moral foundation of leadership, management, and entrepreneurship (2nd ed.). Boston: Pearson Custom Publications.

    Google Scholar 

  • Chavez, J. (2003). Morality and moral reasoning in the banking industry: An ethical and cognitive moral development examination. Doctoral Dissertation, Nova Southeastern University.

  • Cherry, J., Lee, M., & Chien, C. S. (2003). A cross-cultural application of a theoretical model of business ethics: Bridging the gap between theory and data. Journal of Business Ethics, 44(4), 359–376.

    Article  Google Scholar 

  • Cho, E. (2009). Work values and business ethics in Korea. Advances in Developing Human Resources, 11(2), 235–252.

    Article  Google Scholar 

  • Clark, K. (2008). Taking a bite out of cheating, with the help of technology. U.S. News and World Report, October 13/October 20 (pp. 74–76).

  • Clark, J. W., & Clark, S. J. (1966). Religion and moral standards of American businessmen. Cincinnati: Southwestern Publishing Co.

    Google Scholar 

  • Covey, R. S. (1990). The 7 habits of highly effective people: Powerful lessons in personal change. New York: First Fireside Edition.

    Google Scholar 

  • Crary, D. (2008). Students lie, cheat, steal, but say they’re good. http://www.foxnews.com. Accessed December 3, 2008.

  • Cron, W. L. (1984). Industrial salesperson development: A career stages perspective. Journal of Marketing, 48, 41–52.

    Article  Google Scholar 

  • Danaee Fard, H., Moshabbaki, A., Abbasi, T., & Hassanpoor, A. (2010). Strategic management in the public sector: reflections on it’s applicability to Iranian public organizations. Public Organization Review (in press). doi:10.1007/s11115-010-0140-5.

  • Danaee Fard, H., Rostmay, A. A., & Taghiloo, H. (2009). How types of organizational cultures contribute in shaping learning organizations. Singapore Management Review, 31(1), 49–61.

    Google Scholar 

  • Desplaces, D. E., Melchar, D. E., Beauvais, L. L., & Bosco, S. M. (2007). The impact of business education on moral judgment competency: An empirical study. Journal of Business Ethics, 74(1), 73–87.

    Article  Google Scholar 

  • Encyclopedia Iranica. (2010). ‘Akhaq-e Naseri’, http://www.iranica.com/articles/aklaq-e-naseri-by-kaa-nasir-al-din-tusi-the-principal-treatise-in-persian-on-ethics-economics-and-politics-f. Accessed 11 March 2010.

  • Evans, S. P. K. (2004). A study of cognitive moral development theory and moral maturity of African-American business professionals. Doctoral Dissertation, The Nova Southeastern University.

  • Farrokh, K. (2007). Shadows in the dessert: Ancient Persia at war (p. 44). Oxford: Osprey Publishing.

    Google Scholar 

  • Freedman, A. (1990). Business ethics survey of hospitality students and managers. DBA Dissertation, Nova Southeastern University.

  • Freeman, W. J. (2007). Moral maturity and the knowledge management firm. Doctoral Dissertation, Nova Southeastern University.

  • Fritzche, D. J. (1995). Personal values: Potential keys to ethical decision making. Journal of Business Ethics, 14, 909–922.

    Article  Google Scholar 

  • Fryxell, G., & Lo, C. W. H. (2001). Organizational membership environmental ethics: A comparison of managers in state-owned firms, collectives, private firms and joint ventures in China. World Development, 29(11), 1941–1956.

    Article  Google Scholar 

  • Galla, D. (2006). Moral reasoning of finance and accounting professionals: An ethical and cognitive moral development examination. Doctoral Dissertation, Nova Southeastern University.

  • Gao, L. (2004). Deficiency of honesty from cheat of college students in a test. Journal of Bingtuan Education Institute, 14(2), 52–54.

    Google Scholar 

  • Harris, J. R., & Sutton, C. D. (1995). Unraveling the Ethical decision-making process: Clues from an empirical study comparing Fortune 1000 executives and MBA Students. Journal of Business Ethics, 14, 805–817.

    Article  Google Scholar 

  • Hegarty, W. H., & Sims, H. P. (1979). Organizational philosophy, policies, and objectives related to unethical decision behavior: A laboratory experiment. Journal of Applied Psychology, 64, 331–338.

    Article  Google Scholar 

  • Heron, W. T. (2006). An examination of the moral development and ethical decision-making of information technology professionals. Doctoral Dissertation, Nova Southeastern University.

  • Huang, C. (2006). Cross-cultural ethics: A study of cognitive moral development and moral maturity of U.S. and Japanese expatriate managers in Taiwan and Taiwanese managers. Doctoral Dissertation, Nova Southeastern University.

  • Hyppolite, A. A. (2003). The influence of organizational culture, ethical views and practices in local government: A cognitive moral development study. Doctoral Dissertation, Nova Southeastern University.

  • Index Mundi. (2010). Retrieved on March 18, 20111 from http://www.indexmundi.com/.

  • Internet Center for Corruption Research. (2010). http://www.icgg.org/corruption.cpi_2005_faq.html#1. Accessed October 9, 2010.

  • Jadack, R. A., Hyde, J. S., Moore, C. F., & Keller, M. L. (1995). Moral reasoning about sexually transmitted diseases. Child Development, 66, 167–177.

    Article  Google Scholar 

  • Jafarey, A. A. (2010). Zoroastrian ethics and culture. http://www.vohuman.org/Article/Zoroastrian%20Ethics%20and%20Culture.htm#_ednref1. Accessed March 24, 2010.

  • Kaiser, H. F. (1974). An index of factorial simplicity. Psychometrika, 39(1), 31–36.

    Article  Google Scholar 

  • Kennedy, W. J. (2003). A study of the moral reasoning skills of proactive and reactive organizational management. Doctoral Dissertation, Nova Southeastern University.

  • Klein, H. A., Levenburg, N. M., McKendall, M., & Mothersell, W. (2007). Cheating during the college years: How do business school students compare? Journal of Business Ethics, 72(2), 197–206.

    Article  Google Scholar 

  • Kohlberg, L. (1969). Stage and sequence: The cognitive-developmental approach to socialization. In D. Grosling (Ed.), Handbook of socialization theory and research. Chicago: Rand McNally.

    Google Scholar 

  • Kohlberg, L. (1972). A cognitive-developmental approach to moral education. The Humanist, 4(1), 13–16.

    Google Scholar 

  • Kohlberg, L. (1984). The philosophy of moral development. San Francisco: Harper and Row.

    Google Scholar 

  • Kuper, L. (1975). Race, science and society. New York: The Unescor Press and Columbia University Press.

    Google Scholar 

  • Lawson, R. A. (2004). ‘Is classroom cheating related to business students’ propensity to cheat in the ‘real world’. Journal of Business Ethics, 49(2), 189–199.

    Article  Google Scholar 

  • McGill, S. (2008). Integrating academic integrity education with the business law course: Why and how. Journal of Legal Studies Education, 25(2), 241–282.

    Article  Google Scholar 

  • Mirshekary, S., & Lawrence, A. D. (2009). Academic and business ethical misconduct and cultural values: A cross national comparison. Journal of Academic Ethics, 7, 141–157.

    Article  Google Scholar 

  • Mobley, S. E. F. (2002). The study of Lawrence Kohlberg’s stages of moral development theory and ethics: Considerations in public administration practices. Doctoral Dissertation, Nova Southeastern University.

  • Mujtaba, B. G. (1997). Business ethics survey of supermarket managers and employees. UMI Dissertation Service. A Bell & Howell Company.

  • Mujtaba, B. G. (2010). Business ethics of retail employees: How ethical are modern workers?. Davie, FL: ILEAD Academy Publications.

    Google Scholar 

  • Mujtaba, B. G., Cavico, F. J., McCartney, T. O., & Dipaolo, P. T. (2009). Ethics and retail management professionals: An examination of gender, age, education, and experience variables. American Journal of Business Education, 2(3), 13–26.

    Google Scholar 

  • Mujtaba, B., & Sims, R. L. (2006). Socializing retail employees in ethical values: The effectiveness of the formal versus informal methods. Journal of Business and Psychology, 21(2), 261–272.

    Article  Google Scholar 

  • National Government Ethics Survey. (2007). An inside view of public sector ethics: 2008. Ethics Resource Center (ERC). Fourth in a longitudinal study if U.S. workplaces. http://www.ehtics.org. Accessed January 2010.

  • Nonis, S., & Swift, C. O. (2001). An examination of the relationship between academic dishonesty and workplace dishonesty: A multicampus investigation. Journal of Business Ethics, 77(2), 69–76.

    Google Scholar 

  • Nunnally, J. C. (1978). Psychometric theory. New York: McGraw-Hill.

    Google Scholar 

  • Poorsoltan, K., Amin, S., & Tootoonchi, A. (1991). Business ethics: Views of future leaders. SAM Advanced Management Journal, 56(1), 4–9.

    Google Scholar 

  • Rest, J. (1983). Morality. In J. H. Flavell & E. H. Markman (Eds.), Handbook of child psychology (34th ed., pp. 556–628). New York: Wiley.

    Google Scholar 

  • Rich, J. M., & DeVitis, L. J. (1994). Theories of moral development (2nd ed.). Springfield: Charles Thomas Publishing.

    Google Scholar 

  • Ridley, D. R., & Husband, J. E. (1998). Online education: A study of academic rigor and integrity. Journal of Instructional Psychology, 25, 184–188.

    Google Scholar 

  • Schminke, M., Ambrose, M. L., & Neubaum, D. (2005). The effect of leader moral development on ethical climate and employee attitudes. Organizational Behavior and Human Decision Processes, 97, 135–151.

    Google Scholar 

  • Setayesh, M., Nakhaee, N., & Rowhani, A. (2007). A survey of public opinion on the informal payments to physicians in Kerman, Iran. Iranian Journal of Ethics in Science and Technology, 2(3), 4.

    Google Scholar 

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

    Google Scholar 

  • Singhapakdi, A., Vitell, S. J., & Franke, G. R. (1999). Antecedents, consequences, and mediating effects of perceived moral intensity and personal moral philosophies. Journal of the Academy of Marketing Science, 27(1), 19–36.

    Article  Google Scholar 

  • Stephenson, H. B., Galbraith, S., & Grimm, R. B. (1995). Ethical congruency of constituent groups. Journal of Business Ethics, 14, 145–158.

    Article  Google Scholar 

  • Stevens, G. F. (1984). Business ethics and social responsibility: The response of present and future managers. Akron Business and Economic Review, 15, 6–11.

    Google Scholar 

  • Svensson, G., & Wood, G. (2004). Codes of ethics best practices in the Swedish public sector: A PUBSEC-scale. The International Journal of Public Sector Management, 17(2), 178–195.

    Article  Google Scholar 

  • Tajaddini, R. & Mujtaba, B. G. (2010). Stress and leadership tendencies of respondents from Iran: Exploring similarities and differences based on age and gender. Public Organization Review (in press). doi:10.1007/s11115-010-0118-3.

  • Tenbrunsel, A. E., Smith-Crowe, K., & Umphress, E. (2003). Building houses on rocks: The role of the ethical infrastructure in organizations. Social Justice Research, 16(3), 285–307.

    Article  Google Scholar 

  • Transparency International. (2009). Corruption perceptions index 2009. http://www.transparency.org/policy_research/surveys_indices/cpi/2009. Accessed 12 January 2010.

  • Transparency International. (2010). Corruption perceptions index 2010. http://www.transparency.org/policy_research/surveys_indices/cpi/2009. Retrieved on November 5, 2010 from http://www.transparency.org/policy_research/surveys_indices/cpi/2010/results.

  • Treviño, L. K. (1990). A cultural perspective on changing and developing organizational ethics. In R. Woodman & W. Passmore (Eds.), Research in organizational change and development (Vol. 4, pp. 195–230). Green-which: JAI Press.

    Google Scholar 

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

    Article  Google Scholar 

  • Wal, Z., Graaf, G., & Lasthuizen, K. (2008). What is valued most? Similarities and differences between the organizational values of the public and private sector. Public Administration, 86(2), 465–482.

    Article  Google Scholar 

  • Weaver, K. M. & Ferrell, O. C. (1977). The impact of corporate policy on reported ethical beliefs and behavior of marketing practitioners. in contemporary marketing thought. In B. A. Greenberg & D. N. Bellenger (Eds.), Proceedings of the American Marketing Association, Chicago (Vol. 41, pp. 477–481).

  • Weeks, W. A., Moore, C. W., McKinney, J. A., & Longenecker, J. G. (1999). The effects of gender and career stage on ethical judgment. Journal of Business Ethics, 20(4), 301–313.

    Article  Google Scholar 

  • Whitley, C. F. (1957). The date and teaching of Zarathustra. Numen, 4(3), 219–223.

    Article  Google Scholar 

  • Wynd, W. R., & Mager, J. (1989). The business and society course: Does it change student attitudes? Journal of Business Ethics, 8(6), 486–491.

    Article  Google Scholar 

  • Yegahen, H., & Su, Z. (2008). An examination of human resource management practices in Iranian public sector. Personal Review, 37(2), 203–221.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Bahaudin G. Mujtaba.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Mujtaba, B.G., Tajaddini, R. & Chen, L.Y. Business Ethics Perceptions of Public and Private Sector Iranians. J Bus Ethics 104, 433–447 (2011). https://doi.org/10.1007/s10551-011-0920-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-011-0920-z

Keywords

Navigation