Skip to main content
SpringerLink
Log in

Influence of Transparency on Employees’ Ethical Judgments: A Case of Russia

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

Abstract

After the USSR collapsed, the Russian economy underwent serious changes from being plan-based to a market economy. These changes, together with political instability, created a business environment where no attention was paid to ethics. Russian managers have little experience operating in a market economy, which created many misunderstandings with foreign partners, especially regarding ethical issues of doing business. This study examined the factors influencing the ethical judgments of Russian employees to understand how they perceive ethical issues and make ethical or unethical decisions at work. The Ferrell and Gresham (J Mark 49:87–96, 1985) framework was employed in this study to understand the process of making ethical decision by an individual. Transparency was proposed as a moderator of the relationship between opportunity factors and employees’ ethical judgments. Findings of this study show that Russian employees tend to be more tolerant towards ethically questionable behaviors at a workplace. Moreover, the results also demonstrate that transparency moderates the influence of opportunity to behave unethically on ethical judgments.

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
Fig. 2

Similar content being viewed by others

References

  • Ades, A., & DiTella, R. (1997). National champions and corruption: some unpleasant interventionist arithmetic. The Economic Journal, 107(443), 1023–1042.

    Article  Google Scholar 

  • Ahmed, M., Chung, K. Y., & Eichenseher, J. (2003). Business students’ perception of ethics and moral judgment: A crosscultural study. Journal of Business Ethics, 43, 89–102.

    Article  Google Scholar 

  • Ardichvili, A., Jondle, D., Kowske, B., Cornachione, E., Li, J., & Thakadipuram, T. (2012). Ethical cultures in large business organizations in Brazil, Russia, India, and China. Journal of Business Ethics, 105, 415–428.

    Article  Google Scholar 

  • Armstrong, R. W., Williams, R. J., & Barrett, J. D. (2004). The impact of banality, risky shift and escalating commitment on ethical decision making. Journal of Business Ethics, 53, 365–370.

    Article  Google Scholar 

  • Avtonomov, V. (2006). Balancing state, market and social justice: Russian experiences and lessons to learn. Journal of Business Ethics, 66, 3–9.

    Article  Google Scholar 

  • Bargh, J. (1994). The four horsemen of automaticity: Awareness, efficiency, intention, and control in social cognition. In J. R. S. Wyer & T. K. Srull (Eds.), Handbook of social cognition (2nd ed., pp. 1–40). Hillsdale, NJ: Erlbaum.

    Google Scholar 

  • Bargh, J. A., Chen, M., & Burrows, L. (1996). Automaticity of social behavior: Direct effects of trait construct and stereotype activation on action. Journal of Personality and Social Psychology, 71, 230–244.

    Article  Google Scholar 

  • Bartels, L., Harrick, E., Marel, E., & Strickland, D. (1998). The relationship between ethical climate and ethical problems within human resource management. Journal of Business Ethics, 17, 799–804.

    Article  Google Scholar 

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

    Article  Google Scholar 

  • Beekun, R., Westerman, J., & Barghouti, J. (2005). Utility of ethical frameworks in determining behavioral intention: A comparison of the U.S. and Russia. Journal of Business Ethics, 61, 235–247.

    Article  Google Scholar 

  • Bovens, M. (1998). The quest for responsibility: Accountability and citizenship in complex organizations. Cambridge, UK: Cambridge University Press.

    Google Scholar 

  • Craft, J. (2013). A review of the empirical ethical decision-making literature: 2004–2011. Journal of Business Ethics, 117, 221–259.

    Article  Google Scholar 

  • Cuervo-Cazurra, A. (2006). Transparency and corruption. In J. Forssbaeck & L. Oxelheim (Eds.), The Oxford handbook of economic and institutional transparency. New York: Oxford University Press.

    Google Scholar 

  • Dzialoshinskiy, I., & Pilgun, M. (2015). Axiological foundations of business ethics in the post-socialist Russia: Intercultural context. International Journal of Economics and Financial Issues, 5(Special Issue), 263–273.

    Google Scholar 

  • Ethics Resource Center. (2013). National business ethics survey of the U.S. Workforce. Washington, DC: Ethics Resource Center.

    Google Scholar 

  • Eweje, G., & Brunton, M. (2010). Ethical perceptions of business students in a New Zealand university: Do gender, age and work experience matter? Business Ethics: A European Review, 19(1), 95–111.

    Article  Google Scholar 

  • Ferrell, O., Fraedrich, J., & Ferrell, L. (2014). Business ethics: Ethical decision making and cases. Stamford: Cengage Learning.

    Google Scholar 

  • Ferrell, O., & Gresham, L. (1985). A contingency framework for understanding ethical decision making in marketing. Journal of Marketing, 49, 87–96.

    Article  Google Scholar 

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

    Article  Google Scholar 

  • Foster Back, P., & Irwin, J. (2013). St Helena Public view on Ethics Work Survey Report. Institute of Business Ethics.

  • Gelos, R. G., & Wei, S. J. (2002). Transparency and international investor behavior. NBER Working Paper No. 9260.

  • Haidt, J. (2001). The emotional dog and its rational tail: A social intuitionist approach to moral judgment. Psychological Review, 108, 814–834.

    Article  Google Scholar 

  • Haidt, J. (2008). Morality. Perspectives on Psychological Science, 3(1), 65–72.

    Article  Google Scholar 

  • Hayibor, S., & Wasieleski, D. M. (2009). Effects of the use of availability heuristic on ethical decision-making in organizations. Journal of Business Ethics, 84, 151–165.

    Article  Google Scholar 

  • Hisrich, R., Bucar, B., & Oztark, S. (2003). A cross-cultural comparissonof business ethics: Cases of Russia, Slovenia, Turkey, and United States. Cross Cultural Management, 3–28.

    Article  Google Scholar 

  • Hunt, S. D., & Vitell, S. (1986). A general theory of marketing ethics. Journal of Macromarketing, 49(6), 5–16.

    Article  Google Scholar 

  • Jaffe, E., & Tsimerman, A. (2005). Business ethics in a transition economy: Will the next Russia generation be any better? Journal of Business Ethics, 62, 87–97.

    Article  Google Scholar 

  • Jeffrey, C., Dilla, W., & Weatherholt, N. (2004). The impact of ethical development and cultural constructs on auditor judgments: A study of auditors in Taiwan. Business Ethics Quarterly, 14(3), 553–579.

    Article  Google Scholar 

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

    Article  Google Scholar 

  • Kaptein, M. (1999). Integrity management. European Management Journal, 17, 625–634.

    Article  Google Scholar 

  • Kaptein, M. (2008). Developing and testing a measure for the ethical culture of organizations: The corporate ethical virtues model. Journal of Organizational Behavior, 29, 923–947.

    Article  Google Scholar 

  • Kohlberg, L. (1969). Stage and sequence: The cognitive developmental approach to socialization. In D. A. Goslin (Ed.), Handbook of socialization theory and research (pp. 347–480). Chicago: Rand McNally.

    Google Scholar 

  • Lafer, G. (2005). The ethics of human resources and industrial relations. Ithaca, NY: ILR Press.

    Google Scholar 

  • Lipshitz, R., Popper, M., & Friedman, V. (2002). A multifacet model of organizational learning. The Journal of Applied Behavioral Science, 38(1), 78–98.

    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 

  • Marques, P. A., & Azevedo-Pereira, J. (2009). Ethical ideology and ethical judgments in the Portuguese accounting profession. Journal of Business Ethics, 86, 227–242.

    Article  Google Scholar 

  • Martin, K., & Cullen, J. (2006). Continuities and extensions of ethical climate theory: A meta-analytic review. Journal of Business Ethics, 69, 175–194.

    Article  Google Scholar 

  • Mauro, P. (1995). Corruption and growth. The Quarterly Journal of Economics, 110(3), 681–712.

    Article  Google Scholar 

  • Mayer, D. M., Kuenzi, M., & Greenbaum, R. L. (2010). Examining the link between ethical leadership and employee misconduct: The mediating role of ethical climate. Journal of Business Ethics, 95, 7–16.

    Article  Google Scholar 

  • McCarthy, D., & Puffer, S. (2008). Interpreting the ethicality of corporate governance decisions in Russia: Utilizing integrative social contracts theory to evaluate the relevance of agency theory norms. Academy of Management Review, 33(1), 11–31.

    Article  Google Scholar 

  • McKinney, J. A., Emerson, T. L., & Neubert, M. J. (2010). The effects of ethical codes on ethical perceptions of actions toward stakeholders. Journal of Business Ethics, 97, 505–516.

    Article  Google Scholar 

  • Mehrez, G., & Kaufmann, D. (2000). Transparency, liberalization, and financial crisis. World bank Policy Research Working Paper.

  • Moberg, D., & Caldwell, D. F. (2006). An exploratory investigation of the effect of ethical culture in activating moral imagination. Journal of Business Ethics, 73, 193–204.

    Article  Google Scholar 

  • Murphy, P. (1988). Implementing business ethics. Journal of Business Ethics, 7, 907–915.

    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, 375–413.

    Article  Google Scholar 

  • O’Leary, C., & Stewart, J. (2007). Governance factors affecting internal auditors’ ethical decision-making: An exploratory study. Managerial Auditing Journal, 22(8), 787–808.

    Article  Google Scholar 

  • Pricewaterhouse Coopers (2002). Doing business in the Russian Federation.

  • Puffer, S., & McCarthy, D. (1995). Finding the common ground in Russian and American business ethics. California Management Review, 37, 29–46.

    Article  Google Scholar 

  • Rahman, Z. M. (1998). The role of accounting in the East Asian financial crisis: Lessons learned? Transnational Corporations, 7(3), 1–52.

    Google Scholar 

  • Robertson, C., Gilley, M., & Street, M. (2003). The relationship between ethics and firm practices in Russia and the United States. Journal of World Business, 38, 375–384.

    Article  Google Scholar 

  • Robin, D., & Reidenbach, E. (1987). Social responsibility, ethics, and marketing strategy: Closing the gap between concept and application. Journal of Marketing, 51, 44–58.

    Article  Google Scholar 

  • Rottig, D., Koufteros, X., & Umphress, E. (2011). Formal infrastructure and ethical decision making: An empirical investigation and implications for supply management. Decision Sciences Journal, 42(1), 163–204.

    Article  Google Scholar 

  • Salancik, G. R., & Pfeffer, J. (1978). A social information processing approach to job attitudes and task design. Administrative Science Quarterly, 23, 224–253.

    Article  Google Scholar 

  • Schneider, B. (1990). The climate for service: An application of the climate construct. Organizational Climate and Culture, 1, 383–412.

    Google Scholar 

  • Stead, E. W., Worrell, D. L., & Stead, J. G. (1990). An integrative model for understanding and managing ethical behavior in business organizations. Journal of Business Ethics, 9, 233–242.

    Article  Google Scholar 

  • Svensson, J. (2005). Eight questions about corruption. Journal of Economic Perspectives, 19(3), 19–42.

    Article  Google Scholar 

  • Themoscownews. (2010, 05 04). http://themoscownews.com/news/20100504/55438178.html. Retrieved from http://themoscownews.com.

  • Transparency International (2014). Bribe Payers Index. Retrieved from https://www.transparency.org/

  • Trevino, L. K. (1986). Ethical decision-making in organizations: A person-situation interactionist model. Academy of Management Review, 11(3), 601–617.

    Article  Google Scholar 

  • Trevino, L. K. (1990). A cultural perspective on changing and developing organizational ethics. In R. W. Passmore (Ed.), Research on organizational change and development (pp. 195–230). Greenwich, CT: JAI.

    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 

  • Trevino, L., Hartman, L., & Brown, M. (2000). Moral person and moral manager: How executives develop a reputation for ethical leadership. California Management Review, 42, 128.

    Article  Google Scholar 

  • Vishwanath, T., & Kaufmann, D. (2001). Toward transparency: New approaches and their application to financial markets. World Bank Research Observer, 16(1), 41–58.

    Article  Google Scholar 

  • Wei, S. J. (2000). How taxing is corruption on international investors? Review of Economics and Statistics, 82(1), 1–11.

    Article  Google Scholar 

  • Zaman, H. M., Raja, Y., Ahmed, M., Saddozai, A., & Goraya, M. (2013). Organization work ethics: An overview of research survey. Elixir International Journal.

  • Zhang, J., Chiu, R., & Wei, L. (2009). Decision-making process of internal whistleblowing behavior in China: Empirical evidence and implications. Journal of Business Ethics, 88, 25–41.

    Article  Google Scholar 

Download references

Acknowledgments

This research was supported by Miss Kondukova. The author appreciates Miss Kondukova’s effort that greatly assisted the research and her comments on earlier versions of the manuscript.

Author information

Authors and Affiliations

  1. College of Management, Yuan Ze University, Chung Li, Taiwan

    Wen-yeh Huang

Authors
  1. Wen-yeh Huang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Wen-yeh Huang.

Appendices

Appendix: Instruments

Ethically Questionable Conduct at a Workplace

  1. 1.

    Taking pens & pencils from work

  2. 2.

    Taking equipment or software home for personal use

  3. 3.

    Favoring family or friends when awarding contracts or recruiting

  4. 4.

    Pulling a “Sicky”

  5. 5.

    Fiddling hours worked on timesheet

  6. 6.

    Doing work “on the side” for friends/family or to supplement personal income during work time

  7. 7.

    Treating friends/family amongst any staff you supervise differently from other staff

Level of Transparency

  1. 1.

    In my organization, if a colleague does something which is not permitted, my manager will find out about it.

  2. 2.

    In my organization, if a colleague does something which is not permitted, I or another colleague will find out about it.

  3. 3.

    In my organization, if my manager does something which is not permitted, someone in organization will find out about it.

Opportunity to Behave Unethically

  1. 1.

    Management in this organization disciplines unethical behavior when it occurs.

  2. 2.

    Employees in this organization perceive that people who violate the ethics code still get formal organizational rewards.

  3. 3.

    Penalties for unethical behavior are strictly enforced in this organization.

  4. 4.

    Unethical behavior is punished in this organization.

  5. 5.

    The top managers of this organization represent high ethical standards.

  6. 6.

    People of integrity are rewarded in this organization.

  7. 7.

    Top managers of this organization regularly show that they care about ethics.

  8. 8.

    Ethical behavior is the norm in this organization.

  9. 9.

    Ethical behavior is rewarded in this organization.

  10. 10.

    Ethics code requirements are consistent with informal organizational norms.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Huang, Wy. Influence of Transparency on Employees’ Ethical Judgments: A Case of Russia. J Bus Ethics 152, 1177–1189 (2018). https://doi.org/10.1007/s10551-016-3327-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-016-3327-z

Keywords

Search

Navigation