Skip to main content
SpringerLink
Log in

Actors-in-Time: A Proposed Real Time, Decisional Model for Evaluating the Ethical Content of Decisions in the Financial Services Industry

  • Published:
Teaching Business Ethics

Abstract

A number of theoretical approaches to ethicaldecision making in the business context arecriticized as being too complex and cumbersometo be useful in day to day decision making. Byway of a potential solution, the authorspresent a universalistic, real-time model forassessing and resolving ethical decisions. Utilizing this model requires students andpractitioners to evaluate their decisionsaccording to two dimensions. In the firstdimension, stakeholders are identified aseither ``insiders'' or ``outsiders'' relating tothe differential advantages and/ordisadvantages a decision has on these twogroups. With the second dimension, consequences for the short term and long termfor these two stakeholder groups are assessed. The paper concludes with an illustration fromreal financial services business decisions asviewed through the model. These examplesprovide readers a sense of the model'spotential for consulting and pedagogicalpurposes.

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

Similar content being viewed by others

REFERENCES

  • Abegglen, J. C. and G. Stalk, Jr.: 1985, Kaisha: The Japanese Corporation, Basic Books, New York, NY.

    Google Scholar 

  • Asquith, P., R. Bruner and D. Mullins: 1983, 'The Gains to Bidding Firms From Merger', Journal of Financial Economics 11, 121–139.

    Google Scholar 

  • Bartlett, A. and D. Preston: 2000, 'Can Ethical Behavior Really Exist in Business', Journal of Business Ethics 23, 199–209.

    Google Scholar 

  • Blanchard, K. and N. V. Peale: 1988, The Power of Ethical Management, Fawcett Columbine, New York, NY.

    Google Scholar 

  • Clark, J.: 1988, 'Economics of Scale and Scope at Depository Institutions: A Review of the Literature', Federal Reserve Bank of Kansas City Economics Review (September/October).

  • Cornett, M. and S. De: 1991, 'Common Stock Returns in Corporate Takeover Bids: Evidence From Interstate Bank Mergers', Journal of Banking and Finance 15, 273–295.

    Google Scholar 

  • Cunningham, W. P.: 1998, 'The Golden Rule as Universal Ethical Norm', Journal of Business Ethics 17, 105–109.

    Google Scholar 

  • Dennis, D. and J. McConnell: 1986, 'Corporate Mergers and Security Returns', Journal of Financial Economics 16, 143–187.

    Google Scholar 

  • Dobson, J.: 1997, 'In Search of the 'Good Manager' as 'True Professional'', Business and Ethics Professional Journal 16(4), 47–66.

    Google Scholar 

  • Dodd, P.: 1980, 'Merger Proposals, Management Discretion and Stockholder Wealth', Journal of Financial Economics 8, 105–137.

    Google Scholar 

  • Eckbo, B.: 1983, 'Horizontal Mergers, Collusion, and Stockholder Wealth', Journal of Financial Economics 11, 241–273.

    Google Scholar 

  • Ferrell, O. C. and L. G. Gresham: 1985, 'A Contingency Framework for Understanding Ethical Decision Making in Marketing', Journal of Marketing (Summer) 49, 87–96.

    Google Scholar 

  • Fudge, R. S. and J. L. Schlacter: 1999, 'Motivating Employees to Act Ethically: An Expectancy Theory Approach', Journal of Business Ethics 18, 295–304.

    Google Scholar 

  • Fritz, J. M., R. C. Harden Arnett and M. Conkel: 1999, 'Organizational Ethical Standards and Organizational Commitment', Journal of Business Ethics 20, 289–299.

    Google Scholar 

  • Halpern, P.: 1983, 'Corporate Acquisitions: A Theory of Special Cases, a Review of Event Studies Applied to Acquisitions', Journal of Finance 38, 297–317.

    Google Scholar 

  • Hunt, S. D. and S. Vitell: 1986, 'A General Theory of Marketing Ethics', Journal of Macromarketing (Spring) 6, 5–16.

    Google Scholar 

  • Hunter, W. and S. Timme: 1989, 'Bank Merger Motivations: A review of the Evidence and an Examination of Key Target Bank Characteristics', Economic Review of the Federal Reserve Bank of Atlanta (September/October).

  • Langetieg, T.: 1978, 'An Application of a Three-Factor Performance Index to Measure Stockholder Gains From Merger', Journal of Financial Economics 6, 365–383.

    Google Scholar 

  • Loe, T. W., L. Ferrell and P. Mansfield: 2000, 'A Review of Empirical Studies Assessing Ethical Decision Making in Business', Journal of Business Ethics 25, 185–204.

    Google Scholar 

  • Malatesta, P.: 1983, 'The Wealth Effect of Merger Activity and the Objective Functions of Merging Firms', Journal of Financial Economics 11, 155–181.

    Google Scholar 

  • Mandelker, G.: 1974, 'Risk and Return: The Case of Merging Firms', Journal of Financial Economics 1, 303–335.

    Google Scholar 

  • McCracken, J., W. Martin and B. Shaw: 1998, 'Virtue Ethics and the Parable of the Sadhu', Journal of Business Ethics 17, 25–38.

    Google Scholar 

  • Milkovich, G. T. and J. Newman: 1999, Compensation, 6th edn., Irvwin/McGraw Hill Publishers, Boston.

    Google Scholar 

  • Mintzberg, H.: 1988, Mintzberg on Management, Free Press, New York.

    Google Scholar 

  • Nash, L.: 1993, Good Intentions Aside: A Manager's Guide to Resolving Ethical Problems, Harvard Business School Press, Boston, MA.

    Google Scholar 

  • Neely, W. P.: 1987, 'The Effects of Bank Merger and Acquisition Announcements on Shareholder Returns', Financial Management Association Meeting.

  • Ouchi, W. G.: 1981, Theory Z, Avon Books, New York, NY.

    Google Scholar 

  • Pincoff, E.: 1984, 'Quandries and Virtues', Quandry Ethics: 1971, Mind 80(32), 552–571.

    Google Scholar 

  • Primeaux, P.: 1992, 'Experimental Ethics: A Blueprint for Personal and Corporate Ethics', Journal of Business Ethics 11, 779–788.

    Google Scholar 

  • Robertson, D. C.: 1993, 'Empiricism is Business Ethics: Suggested Research Directions', Journal of Business Ethics 12, 585–599.

    Google Scholar 

  • Schein, E. H.: 1985, Organizational Culture and Leadership, Jossey-Bass Publishers, San Francisco, CA.

    Google Scholar 

  • Simon, H. A.: 1976, Administrative Behavior, 3rd edn., Free Press, New York, NY.

    Google Scholar 

  • Thompson, J. C.: 1995, 'A Multiple-Metric study of the Returns to Shareholders: The Case of Bank Holding Company Mergers', Journal of Financial and Strategic Decisions 8,3.

    Google Scholar 

  • Thorne, D. M. and O. C. Ferrell: 1993, 'Assessing the Application of Cognitive Moral Development Theory to Business Ethics', Journal of Business Ethics 10, 829–838.

    Google Scholar 

  • Trompenaars, F.: 1994, Riding the Waves of Culture: Understanding Diversity in Global Business, Richard D. Irwin, New York, NY.

    Google Scholar 

  • Vroom, V.: 1964, Work and Motivation, John Wiley and Sons, Inc., New York, NY.

    Google Scholar 

  • Williamson, O. E.: 1975, Markets and Hierarchies, Free Press, New York, NY.

    Google Scholar 

  • Zammuto, R. F.: 1984, 'Comparison of Multiple Constituency Models of Organizational Effectiveness', Academy of Management Review 9, 606–616.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Management, Marketing, and Administrative Communication, Eastern Kentucky University, Combs 215, Richmond, KY, USA

    Allen D. Engle, Judith Winters Spain & J.C. Thompson

Authors
  1. Allen D. Engle
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Judith Winters Spain
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. J.C. Thompson
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Engle, A.D., Spain, J.W. & Thompson, J. Actors-in-Time: A Proposed Real Time, Decisional Model for Evaluating the Ethical Content of Decisions in the Financial Services Industry. Teaching Business Ethics 6, 137–150 (2002). https://doi.org/10.1023/A:1014271027137

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1014271027137

Search

Navigation