Page 1
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 1/51
Journal of Human Valueshttp://jhv.sagepub.com
Determinants of Unethical Business Behaviour among Owner ManagersSunday Samson Babalola
Journal of Human Values2009; 15; 61
DOI: 10.1177/097168580901500105
The online version of this article can be found at:
http://jhv.sagepub.com/cgi/content/abstract/15/1/61
Published by:
http://www.sagepublications.com
Additional services and information forJournal of Human Values can be found at:
Email Alerts:http://jhv.sagepub.com/cgi/alerts
Subscriptions:http://jhv.sagepub.com/subscriptions
Reprints:http://www.sagepub.com/journalsReprints.nav
Permissions:http://www.sagepub.in/about/permissions.asp
Citationshttp://jhv.sagepub.com/cgi/content/refs/15/1/61
Downloaded from http://jhv.sagepub.comat North West University
on September 28, 2009
Page 2
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 2/51
Determinants of Unethical BusinessBehaviour among Owner–Managers
SUNDAY SAMSON BABALOLA
Several studies have identified entrepreneurship as a key factor in wealth creations in addition to
associating certain personality characteristics to its growth. The question is to what extent have these wealth
creations performed ethically. The present study is set to explore the cognitive orientation (locus of control,
risk taking ability and impression management) and demographic (age and gender) factors that are
associated with unethical business. Two hundred and fiftysix owner!managers in the age range of "# to $%
years participated in the survey study. &ale participants accounted for $'.' per cent, while female
participants were '$. per cent. The results indicate that risk taking and gender factors were consistently
and statistically significant predictors of unethical business across the three groups in this study. The group
situation appears to have effect on the individual contribution to unethical business. mplications are drawn
from the results, and priorities are established for future research.
Introduction
Several empirical studies have stressed the
important role of free-enterprise economic system
through entrepreneurs (Drucker 1985; Light and
osenstein 1995; eynolds 199!; Schumpeter
19"#$% &ust as the contri'ution of small firms to neemployment opportunities has received significant
attention
()irch 19!9; Light and
osenstein 1995;
eynolds and *hite
199!$+ ,hese studies
and others have
concentrated on the
factors that facilitate
per-formance+ Despitethese% there are
arguments that there is
limited literature on the
determinants of &o'
creation 'y the self-employed ()arkham
199#; aroll et al+
199.; oling et al+
199!; *esthead and
oling 1995$ ith
relatively
Sunday Samson )a'alola is aSenior Lecturer of/ndustrial0rgani2ational 3sychology
at theDepartment of3sychology%4aculty of theSocialSciences%niversity of/'adan% /'adan%
6igeria+ 7-mailss+'a'alolamail+ui+edu+ng
:6L 4
<=6 > L7S 151 (?@@9$ .1A!5
SA! "u#lications *os +ngeles*ondon-ewelhiSingapore/ashington 0
DOI$1@+11!!0@9!1.858@9@15@@1@5
Downloaded from http://jhv.sagepub.comat North West
University on September
28, 2009
Page 3
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 3/51
%& ” S6DB S =S6 ) )LL
littleattentiontoresearchon'usinessusesuchasunet
hical'usiness%hichcan'edysf unctionalfor entr epreneur ialgroth+
n
ethica
l
'usin
ess is
defin
ed as
an
act
that is
illegal
or
moral
ly
unacc
epta'
le
ithin
the
'usines
s setting
and
larger commu
nity+ /n
'usines
s%
unethica
l
'ehavio
ur
contradi
cts the
eCpecte
d
'usines
s in a
civili2ed
society+
)usines
ss
demons
tration
of ir-
responsi
'le%
immatur
e%
unethica
l
'ehavio
ur
among
entrepre
neurscan
manifest
in four
different
ays as
reflecte
d 'y
entrepre
neurs
duties
andattitude
toards
custome
rs%
orkers%competi
ng firms
and
govern
ment
(7stola
?@@#$+
,herefor
e% it is
not ise
for an
entrepre
neur to
make
revenue
s 'y
cheating
on the
govern
ment
and the
custome
r as
either of
these
may
create
sanction
s
against
hoever
'reaksthe las
or
negotiat
ed
contract
s+ ,his
advice
is
tena'le
here
strictrules
Page 4
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 4/51
and
re-
gulati
ons
gover
ning'usin
ess
trans
action
s are
imple
ment
ed+
Strict
imple
ment
ation
of
rules
and
respe
ct for
custo
mers
are
pro'l
ems
in
most
de-
velopi
ng
count
ries+
Studi
es
havesho
n that
'usin
ess
indivi
duals
cut
corne
rs on
Eualit
y%cover
up
incident
s% lie to
and
deceive
customers
(<efter
198.;
:ones
199!;
*erner
et al+
1989$+
,hese
types of
unethica
l
'ehavio
ur cost
industry
'illions
(:ones
199!;
Femke
198.$
and
damage
the
images
of
corporat
ions
(=ahar
199?$+
,his
study is
therefor e
focusing
on
eCplorin
g the
factors
that
influenc
e
unethica
l'usines
s
among
onerA
manage
rs in
6igeria+/t is
eCpecte
d that
the
present
study%
'eing
an
eCplorat
ory
study in
6igeria%
ill spur
eCpansi
on or
compari
son in
future
researc
h and
also
contri'u
te ne
empirica
l
analysis
of in-
dividual
data
(person
ality
factors$in the
predictio
n of
unethica
l
'usines
s+
Lit
Page 5
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 5/51
erature'eview
7thicsdealsiththedistinction'eteenhat
isrightandrong+ /tisconcernediththe
:6L
4 <=
6 > L
7S 151(?@@9$.1A!5
nature
and
ground
s of
morality
%includin
g moral
&udgem
ents%
standar
ds and
rules of
conduct
(,aylor
19!5$+
Similarl
y%
:ones
(1991$
defines
societal
ethics
as
consisti
ng of
decisions that
are
legal or
morally
accepta
'le to
the
larger
com-
munity+
,o 'e a
society%
a group
must
accept
certain
fundam
ental
practice
s and
principles+
)usines
s% as a
type of
society%
is
possi'le only
ithin a
certain
social
conteCt
of
instituti
ons%
agreem
ents%
underst
andings
and
shared
values
()eu et
al+
?@@"$+
,hus%
the
freedom of
'usi-
ness to
make
profit is
limited
'y the
values
of
fairness
% eEual
opportu
nity%
honesty
and
truth-
fulness
(DeGeo
rge
1999$+
,heinterfac
Page 6
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 6/51
e
'et
een
ethic
s and
entreprene
urshi
p
involv
es
to
relate
d
sets
of
issue
s+
,he
first
conc
erns
the
entre
prene
urial
conteCt for
ethic
s%
hile
the
seco
nd
involv
es
the
ethic
al
conte
Ct for
entre
prene
urshi
p+
4indi
ngs
fromthe
former
indicate
d that
the
entrepr
eneurialconteCt
poses a
num'er
of
uniEue
ethical
chal-
lenges+
ccordi
ng to
)ucar
and
<isrich
(?@@1$%
ook
(199?$
and
)hide
and
Steven
son(199@$%
the
financia
l and
operati
onal
pressur
es
found
ithin
most
entrepr
eneurial
firms
heighte
n the
incentiv
e to
engage
in
eCpediency+
,he
uniEue
ethical
chal-
lenges
found inentrepr
eneurial
venture
s%
accord-
ing to
=orris
et al+
(?@@?$%
can 'e
traced
to their
nenes
s and
smallne
ss
compar
ed ith
more
esta'lis
hed'usines
ses and
entrepr
eneurial
firms+
)hide
and
Steven
son
(199@$
also
suggest
that
there is
often
little
penalty
for H'ad
in an
entrepr
eneurialfirm%
Page 7
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 7/51
and
that
Hgood
can
often
'epenal
i2ed+
,hey
state
that
the
funda
ment
al
reaso
n for
actin
g
prope
rly
must
'e
the
indivi
dual
ssens
e of
self% as
Hthe
heels
of
societyare
grease
d 'y
forgiven
ess%
forgetfu
lness
and
toleranc
e++
num'er of ethicaldecision-makingre-searchershaveusedself-
interesttheories toeCplain
hyindividuals'ehaveunethically+einfor cement(,revin
o198.$andsocialeC-change andneoclassicaleconomics
theories
Download
ed from
http://jhv.s
agepub.comat
North West
University on
September 28,
2009
Page 8
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 8/51
eterminants of 1nethical 2usiness 2ehaviour among 3wner!&anagers ” %(
(Grover 199"$ have 'een
used to demonstrate that
individuals are pure
egoists+ n the other hand%
Leicki (198"$ stresses the
model of deception+ <e
notes that deception is a
product of the perceptions
of the costs and 'enefits of
using deception+
/mportantly% his model
allos for potentialmisperceptions+ <e
speculates that people
underestimate the costs of
using deception 'ecause
they &ustify their on use of
deception too readily to
themselves+
ognitive processes have
also 'een implicated in
increasing theentrepreneurs suscepti'ility
to 'iases and errors in
reasoning and &udgement
under conditions of time
pressure% high level of
uncertainty% strong emotions
and even fatigue ()aron
1998; Iahneman and
Lovallo 199#; 3alich and
)ag'y 1995$+ ccording to
)aron (1998$% the arising
challenge can 'e
compounded 'y en-
trepreneurs strong
commitment to his 'usiness
ideas% thus increasing his
potential for a self serv-ing
'ias+ ,he sooner an
entrepreneur eChi'its a
tendency toards egoism%
the greater the pressure toengage in unethical
'ehaviour
(Longenecker et
al+ 1988$+ ,hus%
l-Ihati' et al+(?@@#$ suggest
that the individual
code of ethics is
the appropriate
unit of analysis
hen studying
ethics+
,revino and
Boung'lood
(199@$ take as thestarting point the
entrepreneurs
stage in
Iohl'ergs
cognitive
development
model in de-
scri'ing ethical
dilemma+ 4or the
onerAmanager
in a smaller firm%
the need to o'ey
authority or to look
for the approval of
relevant others
may 'e less
relevant+ ,he
normative
structure ithin a
company is likely
to 'e em'odied inthe onerA
manager and
directly relates to
his stage of
cognitive moral
development+
,hey suggest that
situational
moderators are
less significant for
entrepreneurs+
,heir model
implies that the
most influential
factor determiningan actors
'ehaviour hen
facing an ethically
sensitive 'usiness
issue
Page 9
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 9/51
ill 'e personal ethics%
hich is moderated 'y
psychological varia'les+
<oever% in the vie of
=ischel (19!!$% individual
differences can deter-minate% in a given situation%
most especially hen the
situation is am'iguously
structured so that people are
uncertain a'out ho to
categori2e it% have to
structure it in their on terms
and have no clear
eCpectations a'out the most
likely option to 'eappropriate in that situation+
,he significance of individual
differences ill 'e greatest
to the degree that the
situation is Hunstructured
and each person eCpects
that virtually any response is
eEually likely to 'e eEually
appropriate+ 4urther-more%
=ischel (19!!$ stresses that
the role of individual
differences is minimal to the
degree that people are
eCposed to poerful
treatments and conversely%
hen the treatments are
eak% am'iguous or trivial%
individual differences in
personal varia'les have the
most significant
effects+
Locus of
control and
tolerance of
am'iguity (risk
taking$ are some
of the most
consistently
emphasi2ed
characteristics in
the psychological
area ()egley
1995; =orris and
Fahra ?@@@$%
despite thedifficulties in
identifying the
salient features of
the
entrepreneurial
personality
(SeCton and
)oman 198";
Shaver and Scott
1991$+ =acDonald
(19!.$ defined
locus of control as
the eCtent to
hich persons
perceive
contingency
relationships
'eteen their
actions and their
outcomes+ Locus
of control has
'een linked to
ethical 'eliefs and
perceptions in a
num'er of studies+/n their studies
using
undergraduate
students (:ones
and Iavanaugh
199.; =cuddy
and 3eery 199.;
,erpstra et al+
1991$ report that
individualsclassified as
internals indicate
a greater
sensitivity in their
responses+
Studies conducted
on graduate
students 'y
,revino and
Boung'lood
(199@$ shos
similar findings
hile :ones and
Iavanaugh
(199.$% in their
studies
:6L 4 <=6
> L7S 151(?@@9$ .1A!5
Downloaded from
http://jhv.sagepub.comat
North West University on
September 28, 2009
Page 10
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 10/51
%) ” S6DB S =S6 ) )LL
on
gradu
ate
stude
nts%
o'ser
ve a
non-
signifi
cant
differ
ence'y
locus
of
contr
ol of
gradu
ate
stude
nt
su'&e
cts+*ith
regar
d to
the
linka
ge to
ethic
s% an
intern
al
locus
of
contr
ol
seem
s
more
consi
stent
ith
astron
g
reliance
on a
personal
ethical
stand-
ard as
oppose
d t o a
standar
d
derived
from
ones
social
milieu
(<egart
y and
Sim
19!8$+
4ypot hesis56
Therewill besignifi cant relationshipbetweenexternal locusof
control and unethi cal business.
,her
e also
seems
to 'e a
clear
linkage
'etee
n risk
taking
to
ethics%as
ethical
dilemm
as are
inheren
tly
am'igu
ous and
often
consist
of
comple
C and
contradi
ctory
situatio
ns in
hich
different
element
s or cues
suggest
a range
of
possi'l
e
outcom
es+
hell et
al+
(1991$descri'
e the
risk-
taker as
someon
e% ho
in the
conteCt
of
'usines
s
Page 11
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 11/51
ventu
re
pursu
es
'usin
essideas
hen
the
pro'a
'ility
of
succ
eedin
g is
lo+
Studi
es of
high
scho
ol
and
colle
ge
stude
nts
shosigni-
ficant
relati
onshi
ps
'et
een
risk
takin
g and
the
devia
nt
(Den
ovan
and
:ess
or
1985$
+
Similarly%
<orvath
and
Fucker
man
(199"$
o'tainsignific
ant
correlati
ons
'etee
n risk
apprais
al and
risky
situatio
ns
across
four
areas
of risk
(crimina
l% minor
rule
violatio
ns%
financial and
sports
risk$
hile
the
result of
Fukerm
an and
Iuhlma
n
(?@@@$
study
sho
that
generali
2ed risk
taking
is
related
to
scalesfor
impulsi
ve
sensati
on
seeking
andaggress
ion+ 4or
instanc
e%
people
assume
small
'usines
s
oners
to 'e
high
risk-
takers
hile
the
Euantita
tive
revie
of
auchand
4rese
(?@@?$
sho
that
high
risk
taking
is
negativ
ely
associ-
ated
ith
'usines
s
succes
s+
7Ctrapo
lating
fromthese
Page 12
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 12/51
studi
es to
the
curre
nt
study% it is
hypot
he-
si2ed
that
4ypothesis"6
4ighrisk taki ng indiv idualswill scor ehigher onunet hical busi nessmeasuresthanlow risk taki
ng indiv iduals.
:
6L
4 <=
6 > L
7S 151(?@@
9$ .1A!5
/mpr
ession
manag
ement
is the
processhere'
y
individu
als
seek to
influenc
e the
per-
ception
of others
a'out
their
on
image
(osenf
eld et
al+
1995$+
,he
prime
reason
for this
is that
people
need to
appear
more
altruisti
c and
society-oriente
d than
they
actually
are+ 4or
eCampl
e%
giving
the
impression that
Page 13
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 13/51
one
is
comp
etent
and
am'itious
can
lead
to
'enef
its
such
as
caree
r-enha
ncing
oppor
tuniti
es
(*ay
ne
and
Liden
1995$
+
lso%
indivi
duals
gener
ally
'elie
ve
they
are
moreethic
al
comp
ared
to
their
peers
(an
dall
and4ern
andes
199?$+
/n vie
of the
fact that
'usiness
environ
ment
reEuire
s
integrity
(hung
and
=onroe
?@@"$%this
study
ill
therefor
e
eCplore
the
relation
ship
'etee
n
unethic
al
'usines
s and
impress
ion
manag
ement+
4ypot hesis'6Therewill benegati vesignifi cant relationshipbetwe
enimpre
ssionmanagement and unethi
cal business+
)ey
ond
these
psychol
ogical
charact
eristics%
it is
alsouseful
to
conside
r
person
al
charact
eristics%
to of
themost
salient
'eing
age
and
gender+
4inding
s here
are
hardly
definitiv
e+ *ith
age%
there is
cursory
evidenc
e to
suggest
that
su'&ect
s'ecome
Page 14
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 14/51
more
cons
ervati
ve in
their
ethical
attitu
des
as
they
get
older
(ad
aev
199#;Seri
nek
199?$
+
<enc
e%
youn
ger
peopl
e
oul
d
have
a
more
li'era
l vie
of
poten
tially
uneth
ical
situatio
ns+ ,he
counter
-
argument is
that
younge
r
people
are
more
idealisti
c and
see theorld in
more
H'lack
and
hite
terms+
4ypot hesis#6
7oung er sub8ec ts will contri bute positiv ely tounethi cal business
scalesthanolder sub8ec ts.
/nthe field
of
criminol
ogy%
gender
is one
of the
stronge
st
correlat
es of
criminal
ity hile
the link
'etee
n
gender
and
non-
complia
nceappear
s to
eCtend
to a
variety
of
forms
of
devianc
e not
Download
ed from
http://jhv.s
agepub.comat
North West
University on
September 28,
2009
Page 15
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 15/51
eterminants of 1nethical 2usiness 2ehaviour among 3wner!&anagers ” %*
&ust crime (Grasmick and
Io'ayashi ?@@?'$+ Gender
is used in this article to refer
to 'iological seC+ num'er
of gender studies on ethics
use students and employees
ith miCed results+ 4or
instance% some findings
sho that men are more
likely to engage in various
unethical practices ()ert2 et
al+ 1989$; male 'usiness
students are less ethical on
a ma&ority of ethical indices
(uegger and Iing 199?$%
hile ole and Smith (199.$
and Iohut and orriher
(199#$ findings indicate that
female 'usiness students
are less receptive to
Euestiona'le ethical
responses+ Specifically%*hipple and Sords (199?$%
in a sample of S and I
students state that female
su'&ects are more critical of
unethical issues than male
su'&ects+ /n their study
among employees% <ollinger
and lark (198"$ report that
males are almost one and
three-Euarters times morelikely to report higher than
average levels of theft
activity against their
employers than are their
female co-orkers+ ,he
contradictory position shos
that there are no significant
gender-'ased differences
'eteen the ethical
frameorks held 'y men and
omen ()arnett and Iarson
1989; 3osner and
Schmidt 198!$;
hile )ucar and
<isrich (?@@1$report that female
entrepreneurs are
slightly more
ethical than
males+
Grasmick et al+
(199.$ use poer-
control theory to
eCplain that the
greater compliance of
female is due to
gender differences
in sociali2ation
eCperiences%
particularly
eCperiences
concerning risk
taking+ /n the
ideal-type
patriarchal family%
female children
are sociali2ed into
a Hcult of
domesticity here
strict adherence to
rules is eCpected+
4emales then
come to 'elieve
that dire things ill
happen shouldthey transgress+ /n
contrast% male
children% as part of
the anticipatory
sociali2ation for
the orkplace% are
encouraged to
take risks+ nd in
the process of
taking risks%
male children
come to reali2e
that dire things
do not happen+,heir
transgressions
typically are not
detected 'y
those in authority%
their peers do not
condemn them%
and they develop
self-concepts that
are consistent
ith rule
violations+ ,hus%
in a purely
patriarchal
system% 'oys% as
compared to
girls% ill come to
perceive loer
threats of formal
sanctions%
em'arrassmentand shame for
transgressions+
4ypothesis 96&ale sub8ectswill scorehigher on 122scales thanfemalesub8ects.
Method
Sampling andData
Collection
Page 16
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 16/51
,he sampling frame
consisted of onerA
managers of small company
ith feer employees and
registered 'usiness
premises ith yoAState
=inistry of ommerce and
/ndustry% 6igeria% frica+
total of #5@ survey
Euestionnaires ere
distri'uted to the randomly
selected onerA managers
using the )usiness 3remises
egis-tration ecord+ 7ach
of the onerAmanagersreceived a copy of the
Euestionnaire ith a
covering letter through
research assistants+ ,hree
hundred and forty-
seven survey
Euestionnaires
ere returned% of
hich ?5. usa'le
surveys ereutili2ed for the
present study
yielding approCi-
mately 5.+89 per
cent return+ ,a'le
1 shos the
demographic
profile of the
sample+ =a&ority
of the
respondents% ."+"
per cent% ere
male+ >irtually all
of the
respondents ere
under #@ years of
age% ith the
largest proportions
'eteen the ages
"@ and "9 (#5+5
per cent$ and ?#and ?9 (".+# per
cent$+ 4ifty-siC per
cent of the
respondents ere
married hile ."+"
per cent of the
respondents had
received either an
undergraduate or
grad-uate degree+
:6L 4 <=6
> L7S 151(?@@9$ .1A!5
Downloaded from
http://jhv.sagepub.comat
North West University on
September 28, 2009
Page 17
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 17/51
%% ” S6DB S =S6 ) )LL
+a#le ,
Demog r a phi c P r
of i l e of R es po
nd ent s ( N = 2 5
6 )
:ariables
ender
=ale4emaleAge?#A?9"@A"9#@J
Marital status
Single=arried
!ducation
<igh schoolollege rdinary 6ational Diplomaniversity Degree0
<igher 6ational DiplomaGraduate degree
Instruments
self-
report
Euesti
onnair
e asdesig
ned in
hich
oner
A
mana
gers
ere
asked
to
provid
e
anse
rs that
'est
chara
cteri2
ed
them+
,he
Euestionnair
e as
divide
d into
three;
the
first
part
asses
sed
thedemo
graph
ic
varia
'lesof
seC%
age%
marit
al
statu
s and
educ
ation%
the
seco
nd
part
dealt
ith
perso
na-
lity
factor
s of
risktakin
g%
impre
ssion
mana
geme
nt
and
locus
of
contr ol%
hile
the
last
part
dealt
ith
the
scen
arios
hich
meas
Page 18
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 18/51
ured
the
unet
hical
'usin
ess+
Lo
cu
s
of
co
nt
ro
l$
,h
e
1!
-
ite
m
r
ai
g
et
al+
(198
#$
sc
al
e
as
e
m
pl
oy
ed
+ /t
is
an
ou
tc
o
m
e
eff ic
acy
me
asu
re%
hi
chpro
vid
ed
a
me
asu
re
of
the
su'
&ect
s
per
cep
tion
of
the
rela
tion
'et
een
eve
nt
and
'eh
avi
our+
/t
ass
ess
es
'ot
h
the
Hint
ern
al
and
HeCt
ern
aldim
en
sio
ns
of
loc
usof
co
ntr
ol+
3a
rtic
ipa
nts
rat
ed
the
ir
agr
ee
me
nt
it
h
ea
ch
state
me
nt
on
a
5-
poi
nt
sc
ale
+
r
on
'a
ch
:6
L 4 <=
6 > L7
Page 19
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 19/51
S 151(?@@9$.1A!5
alpha
for the
presen
t
sample as
α =
@+81+
,he
scale
used
five
point%
Likert
type
Hstrongly
agree
to
Hstrong
ly
disagr
ee
respon
se
format
+Im-re
ssion
Mana
geme
nt$
?@-
item
measu
re
develo
ped 'y
3aulh
us
(198#%
198.$
as
used+
,he
report
ed
coeffic
ient
alpha
for
the
im-
pressi
onmana
geme
nt
scale
range
d
from
α =
@+!@A
@+!5+
,he
scale
has
'een
eCten
sively
teste
d and
e
can
'efairly
confi
dent
of
their
applic
a'ility
acros
s
time%
placeand
settin
gs+
onsi
stent
ith
value
s
o'tai
ned
in the
origin
Page 20
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 20/51
al
devel
opm
ent
of
thescale
% the
ron
'ach
alph
a α =
@+!#+
,he
scale
used
five
point
%
Liker
t
type
Hstro
ngly
agre
e to
Hstrongly
disag
ree
resp
onse
form
at+
'is.
ta.in
g$
self-
repor
t #-
item
state
ment
as
devel
oped
to
measure
risk
taking
in
'usi-
ness
ventur e+
elia'i
lity
analys
is for
the
scale
as
condu
cted
'y
inspec
ting
item-
total
and
inter-
item
correla
tions
analysis+
/tem
reducti
on
involv
ed
elimin
ating
items
that
ithitem-
total
correla
tions <
+"5
and
inter-
item
correla
tions <
@+?@
as
sugge
sted
'y
)eard
en etal+
(199"
$ and
6unn
ally
(19!8
$+
/ndivi
dual
items
that
meet
the
a'ove
criteri
a
ere
summ
ed to
form
multiple-
item
scale
s+ ,he
items
ere
score
d on a
5-
point
Likert-type
scale
from
strong
ly
agree
to
strong
ly
disagr
ee+
Page 21
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 21/51
,he
ron
'ach
alpha
for
thescale
as
α =
@+!"+
Unet
hical
#usi
ness
$
short%to-
scen
ario
as
const
ructe
d and
used
for
this
study+ ,he
scen
arios
used
ere
chose
n and
&udged
as
repres
entative of
curren
t
trends
in
6igeri
a en-
vironm
ent+
/nform
ation
from
previo
us
studie
s
(alle
n and
n'
ey
?@@";4ullert
on et
al+
199.;
=uncy
and
>itell
199?;
Strutt
on et
al+
199!;*ilke
s
19!8$
influe
nced
the
devel
opme
nt of
these
scena
rios+
7ach
su'&e
ct
receiv
ed the
to
unethi
cal
'usiness
scena
rios
ith
the
rating
Downlo
aded
from
http://j
hv.sag
epub.comat
North West
University on
September 28,
2009
Page 22
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 22/51
eterminants of 1nethical 2usiness 2ehaviour among 3wner!&anagers ” %/
scales+ ,he first unethical
'usiness scenario
involved manufacturing of
furniture for a pu'lic
school hile the second
unethical 'usiness
scenario involved
production of drugs 'y a
pharmaceutical industry+
,o minimi2e response
'ias% each unethical
'usiness scenariopresented different orders
of statement items+ ,here
are nine items at the end
of each scenario+
espondents indicated
the eCtent of their
agreement ith each
statement 'y choosing a
response using a five-
point scale ranging from
strongly agree to strongly
disagree+ 4or the
purposes of analysis%
responses ere coded so
that a higher score
indicated high
acceptance of the
unethical 'usiness
descri'ed in the scenario+
Similar criterion used for
testing the relia'ilityanalysis of risk taking
as used for unethical
'usiness measures+ ,he
folloing ron'ach alpha
of unethical 'usiness
ere o'tained α = @+88
for (Scenario1$% α = @+88
for (Scenario?$ and α =
@+9" for (om'ined
scenarios$+ pplying
6unnallys (19!8$ cri-
terion of α = @+!@ for
accepta'le
relia'ility in
eCploratory
researchsuggested that
the present
developed
scales ere
internally
consistent+
P r
oc ed u r es
group from the
niversity of /'adan% 6igeria
Graduate
3rofessional
lass (=) and
=asters in
=anagerial
3sychology
(==3$$ ere
presented ith
unethical 'usiness
scenarios to read
and comment on
their realisms and
the severity of the
unethical
'ehaviour
descri'ed in each
scenario+ ,he
group also
supplied
suggested
referents and
outcomes for each
scenario+ ,he
comments
provided 'y thisgroup ere used
to make some
ad&ustments to the
scenarios+ ,he
study as pilot
Page 23
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 23/51
tested ith a complete
Euestionnaire administered
to !@ onerAmanagers+ ll
the onerAmanagers that
participated in the pre-
testing agreed that each of the scenarios used in this
study had high realism+
3articipants 'oth at the pilot
and main study ere not
informed of the aims of the
study until they had
completed the
Euestionnaires+
Statistical nal!sis
ron'achs alpha
coefficients ere computed
to test relia'ility (internal
consistency$ of all the
measures used in this
study+ orrelation analyses
ere computed+ ,o test
predictive relationships of
psychological (locus of
control% risk taking and
impression management$
and demographic (gender
and age$ varia'les ith
participants response to
unethical 'usiness% a
multivariate multiple
regression as performed
(4inn 19!#; 4inn
and =attsson
19!8; Lut2 and
7ckert 199#$+
Specifically%
stepiseregression
analysis as
used+ 4or the
independent
varia'le of
gender in the
analysis% a
dummy varia'le
as created+ ,he
dependentvaria'le is the
composite scores
from the
scenarios
measures+
'es
ults
=eans% standard
deviations and
correlations
among all
measures are
reported in ,a'le
?+ isk taking
shoed negative
significant
relationship
'eteen age andthe dependent
measures of
unethical
'usiness hile
locus of control
as only
significantly
related to the risk
taking% im-
pressionmanagement and
unethical
'usiness under
Scenario to+ n
the other hand%
there as no
significant
relationship
'eteen
impression and
the dependent
measures+
:6L 4 <=6 > L7S 151(?@@9$.1A!5
Downloaded from
http://jhv.sagepub.comat
North West University on
September 28, 2009
Page 24
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 24/51
%0 ” S6DB S =S6 ) )LL
+a#le &
Descripti"e Data# Correlations $atri% and Relia&ilities (Cron&ach's lphas in racets) of *aria&les of Stud!
&ean S 5 " ' # 9 $ %
Gender 1+." +#8 ge ""+." 9+@# 1,(KScenario 1 ?+9? +95 1,%KK 1,*K (+88$Scenario ? ?+.. +89 1&&KK +@1 1/)KK (+88$om'ined ?+!9 +8. 1&2KK +@9 13)KK 13(KK (+9"$/mpression ?+89 +.1 1,,K A+1@ 1,(K +@1 +@8 (+!#$Locus "+"? +58 +@5 A+@9 1&&KK 1,%KK 1&2KK 1*)KK (+81$
isk ?+.9 +95 +@@ –1&*KK 1)3KK 1(%KK 1)%KK 1&0KK 1&%KK (+!"$
Note$ K p @+@5% KK p @+@1+
+urniture $anufacturing Scenario ,
,he third model in the stepise regression analysis
has an 4 statistic = #1+?# and is significant at the p <
@+@@@ level+ ,he -sEuare is @+"?9 and the ad&usted
-sEuare is @+"?1+ ,he regression results indicated
that "?+9 per cent of the variation in su'&ects
unethical 'usiness response scores for the 4urniture
=anufacturing Scenario could 'e eCplained 'ydifferences in risk taking (β = +5.$% age (β = +?!$% and
gender (β = +1?$ (see ,a'le "$+ <ence% high risk
takers% older individuals and male su'&ects
contri'uted significantly to the prediction of unethical
'usiness+ ,he factors of locus of control and
impression management ere not found to 'e
significantly associated ith su'&ects unethical
'usiness scores for the 4urniture =anufacturing
Scenario 1+
Pharmaceutical Industr! Scenario 2
,he fourth model in the stepise regression analysis
has an 4 statistic = 1.+51 and is significant at the p <
@+@@@ level+ ,he -sEuare is @+?@8 and the ad&usted
-sEuare is @+19.+ ,he results in-dicated that ?@+8 per
cent of the variation in su'&ects unethical 'usiness
response scores for the 3harmaceutical /ndustry
Scenario could 'e
eCplained 'y
differences in risk
taking (β M "!$%
gender factors (β M +
?"$% impression
management (β M
A+?1$ and locus of
control (β M +1.$ (see
,a'le "$+ ,hus% high
risk takers% lo im-
pression management
individuals% internally
controlled and male
respondents are likely
to engage in unethical
'usiness+ ,he factor of
age as not found to
'e significantly
associated ith
su'&ects unethical
'usiness scores for the 3harmaceutical
/ndustry Scenario ?+
Com&inedScenari os
,he third model in the
stepise regression
analysis has an 4
statistic = "?+.8 and is
significant at the p <
@+@@@ level+ ,he -
sEuare is @+?8@ and the
ad&usted -sEuare is
@+?!?+ ,he results
indicated that ?8 per cent
of the variation in
su'&ects ethical
response scores for the
com'ined to scenarios
could 'e eCplained 'y
differences in risk taking
(β = +5@$% age (β = +19$
and gender (β = +1!$
(see ,a'le "$+ ,he
regression result
indicated individuals that
are high in risk taking;
old% and males hadsignificant positive
relationship toards
unethical 'usiness+ ,he
factors of locus of control
and impression
management ere not
found to 'e significantly
associated ith su'&ects
unethical 'usiness
scores for the om'ined
Scenarios+
Page 25
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 25/51
:6L 4 <=6 > L7S 151 (?@@9$.1A!5
Downloaded from
http://jhv.sagepub.comat North
West University on September 28,
2009
Page 26
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 26/51
eterminants of 1nethical 2usiness 2ehaviour among 3wner!&anagers ” %3
-a&le .
Step/ise Regression nal!sis Results 0nder 0nethical usiness
Scenario 5 Scenario " 0ombined
:ariables β β β
isk taking +5.∗∗∗
+"!∗∗∗
+5@∗∗∗
ge +?!∗∗∗
+19∗∗
Gender +1?+
+?"∗∗∗ +1!∗
/mpression management A+?1∗
Locus of control +1.+
4 ("% ?5?$ = #1+?# 4 (#% ?51$ = 1.+51 4 ("% ?5?$ = "?+.8
? = @+"?9 ? = @+?@8 ? = @+?8@
;d&+ ? = @+"?1 ;d&+ ? = @+19. ;d&+ ? = @+?!?
Note$ + p < @+@5; ∗
p < @+@1; ∗∗
p < @+@@1; ∗∗∗
p < @+@@@+
Discussion
,he main o'&ective of this study as to investi-gate
factors that predict unethical 'usiness+ ,he fitness
coefficients (?$ ere not so high for the three
models (+?@8A+"?9$% 'ut the statistical sig-nificanceas high (p < @+@@@$+ ,he findings of the three
groups in this study shoed different pre-dictor
varia'les contri'uted to each of the group criterion+
,his reflects in findings of earlier studies using this
method (allen and n'ey ?@@"; Smith et al+
1999$+ 4urthermore% the findings also shoed the
importance of individual differences in the
determinant of a given situation+ s =ischel (19!!$%
eCpressed individual differences ill 'e minimal to
the degree that the situation is eak or trivial as
can 'e found 'eteen Scenario 1 and Scenario ?+
,he analysis of the to unethical 'usiness
scenarios and the com'ined scenarios revealed
positive significant contri'ution of risk taking and
gender to unethical 'usiness+ 4irst% the result of high
risk taking as in line ith studies such as Denovan
and :essor (1985$ that found significant relationships
'eteen risk taking and the deviant+ 3ositive
significant relationship of risk taking to
unethical 'usiness
could portend a danger
signal to 'usiness
success as its detection
could lead to negative
associated
conseEuence for the
'usiness enterprise+
3ossi'ly% this is hy
studies have shon
negative relationship
'eteen high risk
taking and 'usiness
success (auch and
4rese ?@@?$+ ,here is
possi'ility that onerA
managers have greater
tendency to engage inunethical 'usiness
'ecause most often
there is little or no
penalty for H'ad in
entrepreneurial firm
()hide and Stevenson
199@$ most especially
in developing nations%
as monitoring and
implementation of rules
are fraught ith lapses
here and there+ ,here is
there-fore a need to
include the situational
varia'les in further
research of this nature
so as to eliminate dou't
on hy onerA
managers eCpress
positive tendency
toards unethical
'usiness+
=ale participants
ere found to score
higher on unethical
'usiness than their
female counterparts+
,his finding is
consistent ith someprevious studies that
males ere likely to
engage in un-ethical
'ehaviour ()ert2 et al+
1989; uegger and
Iing 199?$ hile
females ere less
receptive to
Euestiona'le ethical
responses (ole and
Smith 199.; Iohut and
Page 27
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 27/51
orriher 199#$ and critical of unethical issues
(*hipple and Sords 199?$+:6L 4
<=6 > L7S 151 (?@@9$.1A!5
Downloaded from
http://jhv.sagepub.comat North West
University on September 28, 2009
Page 28
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 28/51
/2 ” S6DB S =S6 ) )LL
/t
hoe
ver
contr
adict
ed
the
studi
es of
)arn
ett
andIars
on
(1989
$ and
3osn
er
and
Schm
idt
(198!
$
findin
gs+
,hus%
male
predi
sposi
tion
toar
ds
theuneth
ical
could
'e a
reflec
tion
of
male
chau
vinism
that is
inheren
t in our
environment+
7Cplan
ation of
sociali2
ation
eCperie
nces
given
'y
Grasmi
ck et al+
(199.$
seems
appropr
iate as
the
reason
for the
findings
of this
natureconside
ring the
cultural
environ
ment in
6igeria
here
the
researc
h tookplace+ /t
should
'e
noted
that
6igeria
is
among
cultural
settings
that are
high in
poer
distanc
e+
Stepise
regressi
on
analysis
shoed
the pos-
itive
significa
nt
contri'u
tion of
age on
to of
the
three
groups
under
study+
,he
findings
contradi
cted the
findings
of
Serine
ck
(199?$
and
adaev
(199#$%
hich
stated
that
older
individu
als
'ecome
more
conserv
ative in
their
ethical
attitudes
Page 29
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 29/51
+ ,his
result
porte
nds a
great
concern as
one
eCpec
ts
that
good
eCam
ple
ill
flo
from
top
don
ard+
,he
result
might
also
'e a
point
er to
the
rising
declin
e in
social
value
s and
integr
ity in
6igeri
a+
,h
e
result
of the
analy
sis
also
sho
ed
that
impre
ssion
manag
ement
and
locus of
controlsignific
antly
contri'u
ted to
unethic
al
'usines
s in
Scenari
o 1hile
age
factor
did not+
3ossi'l
y% the
nature
of the
'usines
s
involve
d could
have
'een
respons
i'le for
this+
lthoug
h prior
studies
(:onesand
Iavana
ugh
199.;
=cud
dy and
3eery
199.;
,erpest
ra et al+
1991$
support
ed
eCternal
locus of
control
on the
unethical
dilemm
a% this
as
less
clear-
cut in
this
study+ /t
asonly in
one
group
that
there
as
support
+
,hough
% prior
studies
used
student
s
(underg
raduate
and
graduat
e$% the
current
studyused
the real
practitio
ner in
the field
(oner
A
manag
er$+ ,he
stepis
e
regressi
Page 30
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 30/51
on
analy
sis
revea
led
aninver
se
relati
onshi
p
'et
een
uneth
ical
'usiness
and
impre
ssion
mana
geme
nt
revea
led
amon
g
one
rA
mana
gers+
,his
sho
ed
the
inclin
ationof the
one
rA
mang
ers to
ant
to toe
the
acce
pta'l
e
ays%
as it is
ell
knon
:6L
4 <=6 > L7S 151(?@@9$.1A!5
that the
'usines
s
environ
ment
reEuires
integrity
(hung
and
=onroe
?@@"$+
,hus%
confirmi
ng
osenf eld et
al+
(1995$
descript
ion of
impress
ion
manag
ement
has a
tendenc
y to 'e
society-
oriente
d than
one
actually
is+
<oev
er% the
inverserelation
-ship
finding
contradi
cted
Leisck
is
(198"$
pro-
position
that
that
Page 31
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 31/51
peopl
e
under
estim
ate
thecost
of
using
dece
ption+
,he
findin
g
seem
s tosho
that
the
partic
ipant
s
must
have
su'd
ued
their
ego
'eca
use%
as
Long
enec
ker et
al+
(1988
$noted
% the
tende
ncy
toar
ds
egois
m
leads
to
press
ures
to
engage
in the
unethic
al+
4onclusion
,he
focus
of this
study
as to
investig
ate thepsychol
ogical
and
demogr
aphic
varia'l
es that
predict
onerA
managers
evaluat
ion of
unethic
al
'usine
ss
scenari
os+
isk
taking%
age
and
gender
factors
ere
found
to 'e
contri'
utory
factorsto the
unethic
al in
'usine
ss+
isk
takingand
gender
ere
found
to 'e
signific
ant
contri'
utors to
un-ethical
'usine
ss
respon
se for
each
scenari
o and
the
com'in
ed
scenari
os+ ,he
informa
tion
provide
d 'y
this
study
should
'euseful
for
policy
makers
and for
various
ethicall
y
oriente
d
organi2
Page 32
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 32/51
ation
s+ /t
is
also
usef
ul toeduc
ators
ho
desig
n
cour
ses
ith
the
intention
of
raisin
g
'usin
ess
ethic
al
aar
enes
s+
1i mit ati on
sa
nd Di r ec t i ons
for +u tur eResearc h
s an
eCplorat
ory
study inevaluati
ng
factors
that
have
influenc
e on
unethic
al
'usines
s% this
study
might
have
some
eakne
sses+
4irst%the
study is
not
rooted
in
'road-
'ased
theory+
s a
result%the
findings
herein
should
'e
vieed
as a
demons
tration
of a
relation
ship
rather
than as
confirm
ation of
a
generali
2ed
theory+
lsoorthy
Download
ed from
http://jhv.s
agepub.comat
North West
University on
September 28,
2009
Page 33
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 33/51
eterminants of 1nethical 2usiness 2ehaviour among 3wner!&anagers ” /,
of note is the disparity in the
num'er of male and female
managers from this study;
this can not 'e divulged from
the cultural and religious
diversity in eCistence in
6igeria+ s a cross-sectional
study% causal interpretations
of these findings should 'e
made ith caution+ lthough
e cannot 'e certain a'out
the direction of theserelationships% there are
reasons to 'elieve that the
causal chain runs from
personality traits to the use
of unethical 'usiness+
)ecause personality traits
are 'oth glo'al and sta'le
over time% it is likely that they
underlie un-ethical dilemma
and not vice versa+
=any other varia'les that
ere not addressed in this
study may influence onerA
managers unethical
'usiness% such as situational
varia'les% self-esteem%
importance of religious faith
and
A--endi5
UnethicalBusiness$Scenario ,
furniture manufacturing
company got a contract to make
chairs and ta'les for the pu'lic
secondary school in the localgovernment council+ ,he factory
manager informed
the 'usiness oner
that the ood
'ought in
family
'ackground+
,hese and some
other vari-a'lesshould 'e
eCamined in future
research+
6onetheless% the
study
demonstrates a
significant
relationship that is
grounded in data
and in itself% may
contri'ute to
'uilding the
theoretical
foundation this
line of research
needs (Sass
?@@@$ (,a'le 1$+
,he use of
scenarios also
imposes certain
limitations on theresults+ Scenarios
can only eCamine
hypothetical
situations% 'ut this
is the
recommended
method for
researching
ethical dilemmas
'ecause it
reduces socially
desira'le
responding ()rief
et al+ 199.$+ ,his
study 'eing an
eCploratory one in
6igeria can 'e
eCpanded or
comparisons
made in future
research 'y usingdifferent means to
Page 34
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 34/51
measure o'served onerA
managers or replicated in
other settings+
for the ork is of inferior Euality
and ill not 'e enough to make
the Euantity of the furniture to 'e
supplied+ /n
response to the
complaint of the
factory manager% the
'usiness oner said
that hat assupplied as hat
he ordered for and it
should 'e used for
the ork+ <e also
said that the factory
manager should not
'other himself much
as fe Euantities ill
'e supplied as thenecessary officials
concerned ill 'e
settled+
+a#le A,
Scenario ,
S,-
Unethical #usiness$ Scenario ,
1 ,he onerAmanager can manipulate situation to achieve his purpose+
? ,he onerAmanager is smart+" / ont 'lame the manager; / 'lame the situation of the country+# ,he contract from the government is an opportunity for the oner-manager to
grasp his on share of the national cake+5 / ould feel indifferent to the managers action+. / ill not 'e happy ith the manager 'ecause he used inappropriate ood+! /t is not 'ad for the oner-manager to tell a lie to achieve his goal+8 ,he onerAmanagers action deserves condemnation+9 ,he onerAmanager should not 'e 'ound 'y any oath of office in a difficult
country like this+
:6L 4 <=6
> L7S 151(?@@9$ .1A!5
Page 35
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 35/51
Downloaded from http://jhv.sagepub.comat
North West
University on
September 28, 2009
Page 36
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 36/51
/& ” S6DB S =S6 ) )LL
UnethicalB
usiness$S
cenario&
Dele
got a
callthat
the
consi
gnme
nt of
the
parac
etamo
l
produ
cts his
pharm
aceuti
cal
compan
y sold
the
previous
eek
had
'een
returned
as not
good for
consum
ption
(,a'le
?$+
*hatthis
means is
that
continuo
us sales
of this
product
ill 'e
difficult
'ecause
it has
'een
tagged
Nfake
productO+
Dele% the
manufac
turer
thought
a'out
the
paymen
t of the
loan heo'taine
d from
the
'ank
for
produci
ng this
product
and told
his
manag
er that
the
'rand
name
has to
change
and re-
packed
for the
market
again
so as tomeet
up ith
the loan
repaym
ent+ <is
manag
er then
asked%
could
the
pro'le
m e
are
eCperie
ncing
no 'e
due to
one of
the
adulter
ated
chemic
als thatere
Page 37
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 37/51
used
in the
produ
ctionP
Ieep
Euiet%
Dele
said+
+a#le A&
Scenario 2
S,-
Unethical #usiness$ Scenario &
1 Dele can manipulate things0 situation to achieve his purpose+
? Dele is smart+" / ont 'lame Dele; / 'lame the situation of the country+# / ould feel indifferent to Deles actions+5 ,he situation is an opportunity for Dele to make money+. / ill not 'e happy ith Dele for reselling the product+
!89
'is. ta.ing
1?"
# / think / can endure the capital lost in the process of starting a 'usiness+ +5.
'!6!'!N4!S
l-Ihati'%:+ +%=+B++aasan
dS+:+>itell(?@@#$%Hrg
ani2ational7thicsinDevelopin
gountr ie
s om-par ativ
e nalysis%; ou
r nal of 2usi ness< t
hi c s%55(
#$%"@9 A??+
)arkh
a
m
%
+
:
+
(
1
9
9
#
$%
H
7
n
tr
e
p
r
e
n
e
u
ri
a
l
h
a
r
a
cteristics
and the
Si2e of
the 6e
4irm
=odel
and an
7conomet
ric ,est%Small
2usiness
<conomic
s% . (?$%
11!A?5+
)arnett% :+<+
and =+:+
Iarson
(1989$%
H=anager
s >alues
and
7CecutiveDecisions
n
7Cploratio
n of the
ole of
Gender%
areer
Stage%
rgani2ati
onal level%
4unction
and the
/mportance of
7thics%
elations
hips and
esults
in=anagerialDecisio
n=aking%;ournal of2usiness
<thics%8(1@
$%!#! A!1+
)ar on%+ +
(1998$%Hogniti
ve
=echanis
m in7ntr epr e-
neurshi
p*hyand*hen7ntrepr eneurs,hinkDiff erently
tha
nther3eople%;ournal of2usiness:entur ing %1"
(#$%?!
Page 38
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 38/51
5 A9#+
)ea
rden%*++%+G+6et
emyeran
d=+4+=o'e
ly(199"
$%
4and bookof&arketin
gScal es(6e'ury3arkSage
3u'lications$+
)egley%,+=+(1995$%Hsing4ounderStatus%
ge of 4
ir m%and
ompanyGro
thateasthe)asis
forDistinguishing
:
6 L4
<=
6 > L7S 151(?@@9$
.1
A!
5
D
o
w
n
loaded from
http://jhv.sag
epub.comat
N
o
r
t
h
W
e
st
Univ
ersity
on
Septe
mber
28,
2009
Page 39
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 39/51
eterminants of 1nethical 2usiness 2ehaviour among 3wner!&anagers ” /(
7ntrepreneurs from
=anagers of Smaller)usinesses%
;ournal of 2usiness:enturing % 1@ (?$% ?#9A."+
)ert2% =+% L+ onnel and:+=+ Shepard (1989$%HGender Differences in3roclivity for nethical%;ournal of 2usiness<thics% 8 (5$% "?1A"?+
)eu% D+S+% =++ )uckley and =+G+
<arvey (?@@"$% H7thical
Decision-=aking
=ultidimensional onstruct%2usiness <thics6 + <uropean
=eview % 1? (1$% 88A1@!+ )hide% +
and <+<+ Stevenson (199@$% H*hy
'e <onest if
<onesty doesnt 3ay%4arvard 2usiness =eview %.8 (Septem'er0cto'er$%1?1A9+
)irch% D+L+ (19!9$% The ;ob>eneration ?rocess(am'ridge = =/,3ress$+
)rief% +3+% :+=+ Dukerich% 3++)ron and :+4+ )rett
(199.$% H*hat is *rong
ith the ,readay
ommission eportP
7Cperimental nalyses of
the 7ffects of 3ersonal
>alues and odes of
onduct on 4raudulent
4inancial eporting%
;ournal of 2usiness
<thics% 15 (?$% 18"A98+
)ucar% )+ and +D+ <isrich(?@@1$% H7thics of )usiness =anagers vs+7ntrepreneurs% ;ournal of evelopmental <ntrepreneurship, . (1$%59A8?+
allen% I+S+ and S+4+ n'ey
(?@@"$% Hssociations 'e-
teen Demographics and
3erceptions of nethical
onsumer% nternational
;ournal of 0onsumer Studies,
?! (?$% 99A11@+aroll% +% D+ <olt2-7akin% =+
ider and <+S+ osen (199.$%
H/ncome ,aCes
and
7ntrepreneurs
use of La'our%
entre for 7conomic 3olicy
Studies% *orking
3aper "?+
hell% 7+% :+ <aorth
and S+ )rearley
(1991$% The
<ntrepreneurial
?ersonality6
0oncepts, 0ases
and 0ategories
(6e Borkoutledge$+
hung% :+ and G+S+=onroe (?@@"$%H7CploringSocialDesira'ility)ias% ;ournal of 2usiness<thics% ## (#$%?91A"@?+
ole% )+ and D+L+
Smith (199.$%
H3erceptions of
)usiness
7thics Students
versus )usiness
3eople% ;ournal
of 2usiness
<thics% 15 (8$%
889A9.+
ook% S+ (199?$%H,he 7thics of )ootstrapping%nc. &aga@ine%1# (9$% 8!A9@+
oling% =+% 3+
=itchell and =+
,aylor (199!$%
H:o' reation
and the Self-
7mployed
Story of Life%
*ealth and
>ocational
Qualification%
enter for S=7s%
*arick
)usiness School%
*orking 3aper
#!+raig% ++% :++
4ranklin and G+ ndre (198#$%H Scale to=easure Locus
of ontrol of%2ritish ;ournal of &edical ?sychology % 5!(?$% 1!"A8@+
Page 40
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 40/51
DeGeorge% +,+ (1999$%2usiness <thics (pper Saddle iver% 6:3rentice-<all$+
Denovan% :+ and + :essor (1985$%
HStructure of 3ro'lem in
dolescence and Boung
dulthood% ;ournal of 0on
sulting and 0linical
?sychology % 5" (.$% 89@A9@#+
Drucker% 3+4+ (1985$% nnovationand <ntrepreneurship
(6e Bork <arper ando$+
7stola% =+ (?@@#$% H'out the7thics of )usinessompetition% 7lectronic:ournal of )usiness 7thicsand rgani2ation Studies%9 (?$% 1@A?"+
4inn% :+ D+ (19!#$% + >eneral
&odel for Statistical ðods
in =esearch (6e Bork <olt%
inehart and *inston$+
4inn% :+D+ and /+ =attsson(19!8$% &ultivariate +nalysis in <ducational =esearch6 +pplications of the &ultivariance?rogram (hicago6ational 7ducationalesources$+
4ullerton% S+% I+)+ Ierch and <++
Dodge (199.$% Honsumer
7thics n ssessment of
/ndividual in the =arket 3lace%
;ournal of 2usiness <thics%
15 (!$% 8@5A1#+ Grasmick% <+G+% :+
<agan% )+S+ )lackell and )+:+
meklev
(199.$% Hisk 3reference and
3atriarchy 7Ctending 3oer-
ontrol ,heory% Social
Aorces% !5 (1$% 1!!A99+
Grasmick% <+G+ and 7+
Io'ayashi (?@@?'$%
HGender and
6on-
ompliance
ith *orkplace
ules in :apan
on-tri'utions
of =anagerialSanctions%
7m'arrassment
% and Shame%
-102 ;ournal
of <conomics
and nformation
Science% #. (?$%
!5A8!+
Grover% S+L+(199"$% HLying%Deceit% andSu'terfuge
=odel of Dishonesty inthe *orkplace%3rgani@ational Science% # ("$%#!8A95+
<efter% + (198.$%H,he ripplingrime%Security /orld %?"("$% ".A"8+
<egarty% *+<+ and
<+3+ Sim (19!8$%
HSome
Determinants of nethical
Decision n
7Cperiment%
;ournal of
+pplied
?sychology, ."
(#$% #51A."+
<ollinger% + and:+3+ lark(198"$%HDeterrence inthe *ork-
place3erceivedSeverity and7mployee,heft% Social Aorces% .? (?$%"98A#18+
<orvath% 3+ and =+Fuckerman(199"$%HSensationSeeking% isk ppraisal andisky%?ersonality and ndividual ifferences% 1#(1$% #1A5?+
:ones% D+ (199!$%HDoing the
*rong ,hing#8R of *orkers dmitto nethical or /llegal cts%1S+ Today % pril% #A.+
:ones% G+7+ and =+:+
Iavanaugh
(199.$% Hn
7Cperimental
7Camination of
the 7ffect of
/ndividual andSituational
4actors on
7thical /ntentions
in the
*orkplace%
;ournal of
2usiness <thics%
15 (5$% 511A?"+
:6L 4 <=6
> L7S 151(?@@9$ .1A!5
Downloaded from
http://jhv.sagepub.comat
North West University on
September 28, 2009
Page 41
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 41/51
/) ” S6DB S =S6 ) )LL
:ones
%,+
(
1
9
9
1
$%
H
7
th
ic
al
De
ci
si
o
n
=
a
ki
n
g
'
y
/n
divi
d
u
al
s
in
r
g
a
ni
2
atio
n
s
n
/s
s
u
e
-
o
nt
ing
ent
=od
el%
+ca
demy of
&an
age
men
t
=ev
iew %
1.
(?$%
"..
A95+
Iahnema
n% D+and
D+
Lova
llo
(199
#$%
H,imi
d
hoi
ces
and
)old
4orecasts
og
nitive
3ers
pecti
ve
on
isk
,akin
g% in
+3+
um
elt%
D+7+
Sche
ndel
and
D+:+
,eec
e%
eds%
Aun
dam
enta
l
ssu
es
in
Stra
tegy
6 +=es
earc
h
+ge
nda,
pp+
!1A
9.
()os
ton
<arv
ard
)usi
nessSch
ool
3res
s$+
Iohut%
G+4+
and
7+7+
orri
her
(199
#$%
H,heela
tions
hip
of
ge%
Gen
der%
7Cp
erie
nce
and
a
rene
ss of
*ritt
en
7thi
cal
3olic
ies
to
)usi
ness
Deci
sion
=aki
ng%
Page 42
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 42/51
S
+
&
+
d
v
an
c
e
d
&
a
n
a
g
e
m
e
nt ;
o
u
r
n
al
%
5
9
(1
$%
"
? A
"
9+
Leic
ki
%
+:
+
(
1
9
8"
$%
HL
yi
n
g
a
n
d
D
e
c
e
pt
io
n
=od
el%
in
=+<
+
)a2
erm
an
and
+:+
Lei
cki%
eds%
-eg
otiat
ing
in
3rg
ani@
ations,
pp+
.8A
9@
()ev
erly
<ills
%
Sag
e$+
Light% /+
and+osenstein(1995$%=ac e,<thnicit y and <ntr epr eneurshipin1rban +meric a(6eBor k ldi
neDe
Gruyter $+
Longene
cker%
:+G+%
:++=cI
inne
and
+*+
=oo
re
(198
8$%
H7go
ism
and
/nde
pen
dence
7ntr
epre
neur
ial
7thi
cs%
3rg ani@ ationalynami
cs%1.("$%.#A!?+
Lut2%G+:+and,+L+7ckert(199#$%
H,heelationship'e-teenanonicalor relation na
Page 43
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 43/51
lysisand
=ultivariate=ultiple
egr ession%< d u
c ati onal and ? sy
c hol og ic al & easu
r e
ment %5#("$%... A
!5+=acDona
ld%
+3+
(19!
.$%
H/nte
rnal%
7Cte
rnal
Locu
s of
on-
trol%in
:+3+
o'i
nson
and
3++
Sha
ver%
eds%
&ea
sure
s of
Soci al
?sy
chol
ogic
al
+ttit
ude
s%
pp+
1.9
A9?
(nn
r'or%
=ich
igan
/nstit
ute
for
Soci
al
es
earc
h$+
=ahar%=+(19
9?$%HnelcomeLegacy
,here isStilla)ignpaid,a'for theSandL)ail
out%2ar ronB s%!?(#8$%1.+
=cudd
y%
=+I+
and
)+L+
3ee
ry
(199
.$%
HSel
ecte
d
/ndi
vidu
al
Diffe
renc
es
and
ollegia
ns
7thi
cal
)eli
efs%
;our
nal
of
2usi
nes
s
<thi
cs%
15
Page 44
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 44/51
(
"
$%
?
1
.
A
!
?+
=ischel%*+(19!!
$%H,he/nter actionof 3er sonandSit
uation%inD+=agn
us
sonand6+S+7ndler%
eds%?er sonality at the0rossr oad s60ur rent ssu
esinnteract ional ?sy chol ogy %pp+""" A5?(<illsdale%6:Larence7rl'aum ssociates$+
=orris%
=+<+
and
S+
Fahr
a
(?@@
@$%
Hda
ptati
on
of
the
)usi
-
ness
on
cept
ver
,ime
,heas
e of
<ist
orica
lly
Disa
dvan
tage
d
Sout
h
fric
ann
er-
=an
ager
s%
;our
nal
of
Sma
ll
2usi
nes
s&an
age
men
t % "8
(1$%
9?A
1@@+
=orris%
=+<+
% =+
Schi
nde
hutt
e% :+
*alt
on
and
:+
lle
n
(?@@
?$%
H,he
7thi
cal
ont
eCt
Page 45
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 45/51
of
7
nt
re
pr
e
ne
ur
s
hi
p
3
ro
p
o
si
n
g
an
d
,
e
st
in
g
a
D
e
v
el
op
m
e
nt
al
4
ra
m
e
or
k
%;
o
u
r
n
al
of
2
u
si
n
e
s
s
<thi
cs%
#@
(#$%
""1
A.1+
:6L
4 <=6 > L7S 151(?@@9$.1A!5
=uncy%
:++
and
S+:+
>itell
(199
?$%Hon
sum
er
7thi
cs
n
/nve
stiga
tion
of
the
7thi
cal
)eli
efs
of
the
4inal
on-
sum
er%
;our
nal
of
2usi
nes
s
=es
earc
h%
?#
(#$%
?9!
A
"11+
6unnally%
:++(19!8$%?sy chomet ric Theory (6eBor k=cGra<ill$+
Page 46
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 46/51
3alich
%L
+7
+an
dD+
+
)ag
'y
(19
95
$%H
sin
go
gni
tive
,h
eor
yt
o
7C
plai
n7n
tr e
pr e
n
eu
ri
alis
k-,aki
ngha
llengingon
ventional
*isdo
m%;ournal
of 2us
iness:en
turi ng %
1@(.$%#?5
A"8+
3aulhus%
D+L+
(198
#$%H,o
-
o
mpo
nent
=od
els
of
Soci
ally
Desi
ra'l
ees
pon
ding
%
;our
nal
of
?er
son
ality
and
Soci
al ?sy
chol
ogy %
#.
("$%
598
A
.@9+3aulhus%
D+L+
(198
.$%
HSelf
-
Dec
eptio
n
and
/mpr
essi
on
=an
age
men
t in
,est
es
pons
es%
in +
ngl
eitne
r
and
:+S+
*ig
gins%
eds%
?ers
onal
ity
+ss
ess
men
t viaCue
stio
n
nair
es6
0urr
ent
issu
es
in
theo
ry
and
mea
Page 47
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 47/51
s
u
r
e
m
e
nt %
p
p+
1
#
"
A
.
5
(
6
e
B
or
k
S
pr
in
g
er
-
>
er
la
g$
+
3osne
r%
)
+
a
n
d
*
+
Sc
h
m
id
t
(
1
9
8
.
$%
H
7th
ic
s in
m
eric
an
o
m-
panies
=an
ager
ial
3ers
pect
ive%
;our
nal
of
2usi
ness
<thi
cs%
.
(5$%
"8"
A91+
adaev%>+(199#$%Hn
some4eatures of the6or mativeof the6eus
sian7ntr epr eneurs%?roblemsof <conomic Transiti on%"!
(8$%1!A?8+
andall%D+=+
and=+4+4er nandes(199?$%HSocialDesir-a'ility)ia
s in7thicsesear ch%2usiness<thi csCuarte
rly %?(?$%18" A?@5+
auch%
+
and
=+
4re
se
(?@@?$%
H3sy
chol
ogic
al
pp
roa
che
s to
7ntr
epr
ene
urialSuc
Page 48
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 48/51
c
e
s
s
G
en
e
r
al
=
o
d
el
a
n
d
a
n
v
e
r
vi
e
o
f
4
in
din
g
s
%
in
+
L
+
o
o
pe
r
s
a
n
d
/+
,+
o
'
e
rt
s
on%
eds%
nte
rnat
ion
al
=ev iew
of
nd
ustr
ial
3rg
ani@
atio
nal
?sy
chol
ogy %
pp+
1@1
A#?
(hi
che
ster
*il
ey$+
eynolds
%
3+D+
andS+)+
*hit
e
(199
!$%
The
<ntr
epre
neur
ship
?roc
ess
(*e
st-
port%
,
Quo
rum
)oo
ks$+
eynolds
%
3+D+
(199
!$%
H6e
and
Sma
ll
4irm
s in
7Cp
andi
ng=ar
kets
%
Sma
ll
2usi
nes
s
<co
nom
ics%
9
(1$%
!9A
8#+
osenfeld% 3+%++Giacalone and++iordan(1995$%
mpression
&anagement in3rg ani@ ations6Theory,&easurement,
?ractic e(Londonoutledge$+
uegger%
D+
and
7+*
+
Iing
(199
?$%
Page 49
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 49/51
H
S
tu
d
y
of
the
7
ff
e
ct
of
g
e
a
n
d
Ge
n
d
e
r
u
p
o
n
S
tu
d
ent
)
u
sine
ss
7thi
cs%
;our
nal
of 2usi
nes
s
<thi
cs%
11
("$%
1!9
A8.+
Sass%
:+S+
(?@@
@$%Hha
ract
eri2i
ng
rg
ani2
ation
al
Spiri
tualit
y
n
rgani2
ation
al
om
muni
catio
n
ult
ure
ppr oach
%
0o
mmunica
tion
Studies%
51 ("$%
195A?@!+
Schumpe
ter% :++
(19"#$%
The
Theory of <conomi
c
evelop
ment,am'r idge%=<ar var d
niversity3ress+
Download
ed from
http://jhv.s
agepub.comat
North West
University on
September 28,
2009
Page 50
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 50/51
eterminants of 1nethical 2usiness 2ehaviour among 3wner!&anagers ” /*
Serinek% 3+:+ (199?$%
HDemographic and elatedDifferences in 7thical >ies
among Small )usiness%
;ournal of 2usiness <thics%
11 (#$% 555A..+
SeCton% D+L+ and 6+)+ )oman
(198"$% Homparative 7ntre-
preneurship haracteristics of
Students 3reliminary
esults% in :+ <ornaday% :+
,immons and I+ >esper% eds%
Arontiers of <ntrepreneurship
=esearch% pp+ ?1"A"?(*ellesley% = )a'son
ollege$+
Shaver% I+G+ and L++ Scott
(1991$% H3erson% 3rocess%
hoice ,he 3sychology of
6e >enture reation%
<ntrepreneurship Theory
and ?ractice% 1. (#$% ?"A#?+
Smith% +:+D+ oates and D++Deis (1999$% Hre 7thicalesponses Linked toLocus of ontrolP
Teaching 2usiness<thics% ? ("$% ?#9A.@+
Strutton% D+% L+7+ 3elton and+ + 4errell (199!$%H7thical in etail Settings/s ,here a GenerationGapP% ;ournal of 2usiness <thics% 1.% 8!A1@5+
,aylor% 3+*+ (19!5$% ?rinciples of <thics6 +n ntroduction
(7ncino% Dickson
3u'lishing ompany$+ ,erpstra%
7+7+% =+G++ yes and D+*+
)okor (1991$% H3re-
dictors of 7thical Decisionsegarding /nsider ,rading%
;ournal of 2usiness<thics% 1@ (9$% .99A!1@+
,revino% L+ (198.$% H7thical
Decision =aking in
rgani2a-tions 3ersonA
Situation /nteractionist
=odel% +cademy of
&anagement =eview % 11
("$% .@1A1!+
,revino% L+I+ andS++Boung'lood(199@$% H)ad
pples in )ad)arrels ausal nalysis of 7thicalDecision-=aking%;ournal of +pplied ?sychology % !5(#$% "!8A8.+
*ayne% S+:+ and++ Liden
(1995$% H7ffectsof /mpression=anagementon3erformanceatings LongitudinalStudy% +cademy of &anagement ;ournal % "8 (1$%?"?A.@+
*erner% S+<+% :+*+:ones and )+D+
Steffy (1989$%H,he elations'eteen/ntelligence%<onesty% and,heft dmissions%<ducational and ?sychological &easurement %#9 (#$% 9?1A?!+
*esthead% 3+ and
=+ oling(1995$%H7mploymenthange in/ndependentner-=anaged <igh-,echnology4irms in Great)ritain% Small 2usiness<conomics% !(?$% 111A#@+
*hipple% ,+*+ andD+4+ Sords(199?$%
H)usiness7thics:udgments ross-ultural
omparison%;ournal of 2usiness<thics% 11 (9$%.!1A8+
*ilkes% +7+(19!8$%H4raudulent 'yonsumers%;ournal of &arketing % #?(#$% .!A!5+
Femke% + (198.$%H7mployee,heft <o tout your Losses%Training % ?"(5$% !#A!8+
Furkerman% =+ andD+=+ Iuhlman(?@@@$%H3ersonalityand isk,akingommon)iosocial4actors%;ournal of
?ersonality % .8(.$% 999A1@?9+
:6L 4 <=6
> L7S 151
Page 51
7/18/2019 Unethical Business
http://slidepdf.com/reader/full/unethical-business-56d5ad5ccc8cf 51/51
(?@@9$ .1A!5
Downloaded from
http://jhv.sagepub.comat
North West University on
September 28, 2009