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Cultural Values, Utilitarian Orientation, and Ethical Decision Making: A Comparison of U.S. and Puerto Rican Professionals

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Abstract

Using samples from the U.S. and Puerto Rico, we examine cross-cultural differences in cultural value dimensions, and relate these to act and rule utilitarian orientations, and ethical decision making of business professionals. Although these places share the same legal environment, culturally they are distinct. In addition to tests of between-group differences, a model in which utilitarian orientation mediates the influence of cultural values on ethical decisions was evaluated at the individual level of analysis. Results indicated national culture differences on three cultural values, but no between-group differences on utilitarian orientations and ethical decisions. Significant indirect effects were found; act utilitarian orientation mediated the effects of two values activity orientation and universalism on ethical decision making. Implications for international management practices and business ethics are discussed.

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Authors and Affiliations

  1. Department of Management, University of New Orleans, 2000 Lakeshore Drive, New Orleans, LA, 70148, USA

    Lillian Y. Fok, Dinah M. Payne & Christy M. Corey

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  1. Lillian Y. Fok
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Appendix A

Appendix A

Scenario 1: Rollfast Bicycle Company

Rollfast Bicycle Company has been barred from entering the market in a large foreign country by collusive efforts of the local bicycle manufacturers. Rollfast could expect to net 5 million dollars per year from sales if it could penetrate the market. Last week a businessman from the foreign country contracted the management of Rollfast and stated that he could smooth the way for the company to sell in his country for a price of $500,000. If you were responsible, what are the chances that you would pay the price?

Decision question:

Would you pay the price of $500,000? Enter a number between 0 (definitely would not) and 10 (definitely would)

Decision justification:

What is the reason for your choice in the question above?

Ethical orientation

Response options

Rule utilitarian

Such a payment is illegal

Act utilitarian

Such a payment hurts no one

Act utilitarian

Such a payment depends on a middleman who may not be trustworthy

Act utilitarian

Such a payment is an acceptable practice in other countries

Rule utilitarian

Such a payment is unethical—a bribe

Rule utilitarian

Such a payment is against company policy

Act utilitarian

Such a payment is not unethical, it is just the price paid to do business

Scenario 2: Bill Smith

Bill Smith has recently accepted a job with a young, vigorous microcomputer manufacturer. Microcomputer manufacturers are engaged in intense competition to become the first on the market with a software package that utilizes the English language and thus is easily used by the average customer. Smith’s former employer is rumored to be the leader in this software development. When Smith was hired he was led to believe his selection was based upon his management potential. The morning beginning the third week on the new job, Smith received the following memo from the president: Please meet with me tomorrow at 8:15 for the purpose of discussing the developments your former employer has made in micro-computer software. If you were Smith, what are the chances you would provide your new employer with the software information?

Decision question:

Would you provide your new employer with the software information? Enter a number between 0 (definitely would not) and 10 (definitely would)

Decision justification:

What is the reason for your choice in the question above?

Ethical orientation

Response options

Rule utilitarian

It is unethical for the president to request this information

Act utilitarian

Smith should provide some but not all information

Act utilitarian

Smith should keep his job

Rule utilitarian

It is unethical for Smith to provide this information

Act utilitarian

Smith should be loyal to his employer

Moral rights

It was unethical for the employer to mislead Smith when he was hired

Rule utilitarian

Smith should base the decision on whatever non-competition or security agreements are in force

Rule utilitarian

Smith should protect his reputation

Scenario 3: Master Millers Company

Master Millers Company had developed a special milling process which yields a wheat flour which when used for bread provides a lighter, more uniform texture than conventionally milled wheat flour. Unfortunately, the process gives off more dust than the emission control equipment presently installed can handle and still maintain emissions within legal limits. Emission control equipment will not be available for at least 2 years, so the company cannot install it now. However, if the company waited 2 years to introduce the new process, competitors would very likely beat it to the market. The general manager wants to use the new process during the third shift, which runs from 10 p.m. to 6 a.m. By using the process at that time, the new flour could be introduced and the excess pollution would not be detected due to its release in the dark. By the time demand becomes great enough to utilize a second shift, new emission control equipment should be available. If you were responsible, what are the chances you would approve the general manager’s request?

Decision question:

Would you approve the general manager’s request? Enter a number between 0 (definitely would not) and 10 (definitely would)

Decision justification:

What is the reason for your choice in the question above?

Ethical orientation

Response options

Act utilitarian

Approving the request reflects that the equipment would be installed if available; that it is not available is not their fault

Act utilitarian

Approving the request will cause minimal harm to the environment

Act utilitarian

Approving the request brings with it a too-high risk of getting caught with resulting negative consequences

Act utilitarian

Approving the request provides a large potential gain with low risk

Rule utilitarian

Approving the request is illegal

Justice

Approving the request is negative for the environment/life

Scenario 4: J&P Publishing Company

Ted Jones, senior editor of J&P Publishing Company, has just received a manuscript from one of his most successful authors. It provides the most authoritative account yet published of the history of the development of the atomic bomb. However, the final chapter contains a detailed description of how the bomb is made. Jones has tried to convince the author to omit the last chapter stating that such information should not be made readily available to the mass market in paperback form. The author believes the chapter is critical to the success of the book and thus will not agree to its deletion. If you were Jones, what are the chances that you would publish the book?

Decision question:

Would you publish the book? Enter a number between 0 (definitely would not) and 10 (definitely would)

Decision justification:

What is the reason for your choice in the question above?

Ethical orientation

Response options

Act utilitarian

Those who want the information can get it now from other sources

Rule utilitarian

Publishing the book may be detrimental to the company’s image

Rule utilitarian

Publishing the book is too dangerous to world safety

Act utilitarian

Jones does not have the responsibility to make this choice

Rule utilitarian

Publishing may have legal ramifications

Scenario 5: Jack Ward

Jack Ward is working in product development for an auto parts contractor. Ward’s firm received a large contract last summer to manufacture transaxles to be used in a new line of front wheel drive cars which a major auto manufacturer plans to introduce in the near future. The contract is very important to Ward’s firm, which has recently fallen on hard times. Just prior to obtaining the contract, half of the firm’s employees, including Ward, had been scheduled for an indefinite layoff. Final testing of the assemblies ended last Friday. The first shipments are scheduled for 3 weeks from today.

As Ward began examining the test reports, he discovered that the transaxle tended to fail when loaded at more than 20 % over the rated capacity and when subjected to strong torsion forces. Such a condition could occur with a heavily loaded car braking hard for a curve down a mountain road. The results would be disastrous. The manufacturer’s specifications call for the transaxle to carry 130 % of its rated capacity without failing. Ward showed the results to his supervisor and the company president, who indicated that they were both aware of the report. If they did not deliver the assemblies on time, they would lose the contract. Ward must now decide whether to show the test results to the auto manufacturer. If you were Ward, what are the chances that you would notify the auto manufacturer?

Decision question:

Would you notify the auto manufacturer? Enter a number between 0 (definitely would not) and 10 (definitely would)

Decision justification:

What is the reason for your choice in the question above?

Ethical orientation

Response options

Rule utilitarian

Ward has no additional responsibility

Rule utilitarian

Ward should remain loyal to his company and remain silent

Moral rights

The risk of injury or death is too great to remain silent

Moral rights

The company has a responsibility to the public

Moral rights

It is criminal and dishonest to remain silent

Act utilitarian

The risk to the firm’s image, profitability, and long run potential are too great to remain silent

Act utilitarian

The risk of injury or death is too low to halt the sale

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Fok, L.Y., Payne, D.M. & Corey, C.M. Cultural Values, Utilitarian Orientation, and Ethical Decision Making: A Comparison of U.S. and Puerto Rican Professionals. J Bus Ethics 134, 263–279 (2016). https://doi.org/10.1007/s10551-014-2426-y

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