Organizational Ethical Dilemma

Organizational Ethical Dilemma



Organizational Ethical Dilemma

Linda Trevino (1986) proposed a "person-situation interactionist model" to explain ethical decision making behavior in organizations. Citing the lack of a comprehensive theory to guide empirical research in organizational ethics, Trevino proposed a model that posits cognitive moral development of an individual as the critical variable in explaining ethical/unethical decision making behavior. However, improving on previous models that emphasize either individual or organizational variables, Trevino proposes an interactionist model that posits individual variables (e.g. locus of control, ego strength, field dependence) and situational variables (e.g. reinforcement contingencies, organizational culture) as moderating an individual's level of moral development in explaining ethical decision making. (Lamberton, et al. 2005)

Trevino's theory is important for several reasons. First, it clearly recognizes the complexity of ethical decision making and the numerous factors affecting decision making in managerial contexts. Second, while recognizing complexity, her model is illuminating by simplifying and grouping the expected influences on ethical decision making (i.e. individual and organizational factors). Third, while the theory offers a behavior model, it clearly recognizes the importance of cognitive processes in explaining ethical behavior. (Lamberton, et al. 2005)

A group of researchers from Clarkson University represent another effort to develop a theoretical framework for understanding ethical behavior in organizations. Their model portrays ethical behavior as a function of individual characteristics and environmental influences, but as mediated through an individual's decision-making process.

Both the Trevino and Clarkson models are similar in viewing ethical behavior to be a product of individual and environmental influences. However, the Clarkson group expands the Trevino model, both internally and externally. Their model expands the Trevino model externally by including environmental influences outside the organization. Trevino's model appropriately focuses on critical organizational factors in the environment (immediate job context, organizational culture and characteristics of the work itself). The Clarkson model expands external influences to include various "environments" (work environment, government/legal environment, social environment, professional environment, and personal environment). (Lamberton, et al. 2005)

Internally, the theory is expanded to include an individual decision process as mediating both environmental factors and individual attributes (e.g. level of moral development). The decision process of an individual is theorized to be a kind of central processing unit which functions both as a selective perceptual filter and as a mechanism individuals employ in building an internal conceptual model representing the situation and appropriate solutions for ethical problems. (Lamberton, et al. 2005)

Besides generally expanding the variables and factors included in a behavioral model of ethical decision making, the Clarkson model is important by making explicit the importance of perception to the decision process and outcomes. Information about either the nature of the situation or the character of the environment is seen as selectively filtered by a manager or decision maker. Cognizant of the literature challenging rational decision making models, the authors emphasize the subjective nature of the filtering process and individual difference in perceptual orientation (e.g cognitive style). Thus the model includes individual differences in perception, expected to have effects on decision ...