Models of an individual decision-making process related to ethical issues in business: the risk of framing effects

2020

JIABR

Purpose The purpose of this paper is to use Ferrell and Gresham (1985) contingency model to examine the impact of situational factors on decision-making behaviour related to ethical issues of Islamic banking practitioners. Design/methodology/approach A total of 262 samples are collected from Islamic banking practitioners in the United Arab Emirates (UAE) and data analysis is conducted using structural equation modelling (SEM) with a confirmatory approach. Findings The empirical findings indicate that decision-making behaviour related to ethical issues of Islamic banking practitioners is significantly influenced in the process of interacting with persons who are part of the organisation, and these influences are determined by the intra-organisational distance and legitimate authority between the individuals and the focal person. Further, it is also empirically verified that decision-making behaviour related to ethical issues of Islamic banking practitioners is significantly influenced by the presence and/or absence of the opportunity factors such as corporate policies, professional codes of ethics and rewards/punishment system that prevails in the organisation. Research limitations/implications Coverage of respondents in this study limited to single country, and the scope is limited to the model that adopted in the study. Practical implications It is recommended that respective authorities should have proper control over situational factors (i.e. significant others and opportunity factors) in organisations by encouraging ethical actions so that individuals are learned and influenced by each other and reviewing and improving existing corporate policies, professional codes of ethics and rewards/punishment system that limit the barrier and provide recompenses to the individuals in the organisation. Originality/value While the literature has presented the connection between ethics and Islamic banking, they failed to address ethical decision-making in Islamic financial institutions (IFIs). Hence, the empirical findings provide insights towards understanding organisational decision-making behaviour that to enhance governance.

Section: Survey Ofmentioning

confidence: 99%

The impact of situational factors on ethical choice

2020

JIABR

“…Further, Kliukinskaite Vigil (2009) points out that "rather than wording the dependent variable as 'ethical/unethical decision/behavior/judgement' or as 'ethical decision/behaviour/ judgement', or 'unethical decision/behaviour/judgement', the dependent variable in these models throughout the three subject areas should be 'decision/behaviour/judgement' and the models showing how decisions carrying an ethical content should be called as 'decisionmaking models related to ethical issues'". Considering the above-stated arguments and suggestions, it is decided to word the dependent variable as "decision-making behaviour related to ethical issues" in this study.…”

Section: Decision-making Behaviour Related To Ethical Issuesmentioning

confidence: 99%

“…issues that lead to ethical dilemmas) of individuals in marketing organizations, which is a causal study in nature. Further, Kliukinskaite Vigil (2009) mentions:…”

Section: Ethical Philosophy In Islammentioning

confidence: 99%

“…There are some noteworthy arguments about wording of dependent variable in the descriptive models that examine the decision-making behaviour related to ethical issues. Kliukinskaite Vigil (2009) raises an argument in her paper that "rather than wording the dependent variable as 'ethical/unethical behavior/judgment' or as 'ethical behavior/judgment,' or 'unethical behavior/judgment,' the dependent variable in these models throughout the three subject areas should be 'behavior/judgment,' while 'ethical JIMA 10,3 aspects' should be treated as one of many dimensions of both the process and its outcomes. By framing the dependent variable in a dichotomous way, the authors of the models assume that decisions, behaviours or judgments are only either ethical or unethical".…”

Section: Decision-making Behaviour Related To Ethical Issuesmentioning

confidence: 99%

See 1 more Smart Citation

Towards conceptualizing ethical decision-making model in marketing

2019

JIMA

Purpose This paper aims to present a synthesized conceptual model for ethical decision-making in marketing that accommodates both humanistic and religious aspects. Design/methodology/approach A religious–humanistic approach is adopted on synthesizing. “Ferrell and Gresham’s (1985) contingency framework for ethical decision-making in marketing” and “Al-Ghazali’s ethical philosophy” are considered to be the theoretical base for the synthesized model. Findings Al-Ghazali’s ethical philosophy that stands for the religious dimension in this study was found appropriate for incorporating into the Ferrell and Gresham contingency framework for ethical decision-making in marketing. The approach (religious-humanistic) adopted for synthesizing the two aspects into one model was justified accordingly. Research limitations/implications A newly synthesized model is only conceptually validated. Statistical validity is required based on the variables included in the conceptual model. Future studies are recommended to attain the model fit. Practical implications The scale and model developed in the study should help the marketing-department authorities to assess and evaluate ethical aspects of existing individuals in the organization and potential candidates under the selection stage for employment. The research output derived by way of using the newly synthesized conceptual model should be able to pave the way for more in-depth research on actual ethical practices of “marketing practitioners” in the organization. To some extent, understanding of ethical standing of employees should help in improving efficiency and reduce costs from unethical behaviour. This should be able to improve governance from the top- to the lower-level management. Originality/value To the best of the authors’ knowledge, no literature has conceptualized a model that accommodates both materialistic and religious aspects into a single model to explain ethical decision-making of individuals in organizations. This is an initial and a humble attempt to conceptualize a model that incorporates ethical philosophy in Islam, with special reference to Al-Ghazali’s ethical philosophy.

“…Kliukinskaite Vigil (2009) denotes that: rather than wording the dependent variable as "ethical/unethical behaviour/judgment" or as "ethical behaviour/judgment," or "unethical behaviour/judgment," the dependent variable in these models throughout the three subject areas should be "behaviour/judgment," while "ethical aspects" should be treated as one of many dimensions of both the process and its outcomes. By framing the dependent variable in a dichotomous way, the authors of the models assume that decisions, behaviours or judgments are only either ethical or unethical.…”

Section: Theoretical Underpinningmentioning

confidence: 99%

Organizational decision-making behaviour related to ethical issues, developing scale with special reference to “inter-variable circular causality and religious (Islamic) discourse”

2022

IJOES

Purpose This paper aims to seek to develop and validate the scale for organizational decision-making behaviour related to ethical issues, which addresses the issue of framing the dependent variable in a dichotomous way in organizational ethical decision-making (EDM) models and complementing the inter-variable circular causality model within the purview of Islamic banking with Quranic orientations. Design/methodology/approach This study adopted both exploratory and confirmatory approaches. A total of 362 responses were collected from banking practitioners in the United Arab Emirates using a self-administered questionnaire. Content validity test (CVT) and factor analysis were used to refine measurement items and define as well as validate the scale, respectively. Further, the validated factors/scales were tested using the theoretical underpinning of the inter-variable circular causality model with Quranic orientations. Findings CVT refined the measurement items, and it enhanced the qualitative aspect of the proposed scale. Total three dimensions extracted, i.e. “awareness,” “attitude” and “standards” through exploratory factor analysis and evidence of validation of measurement scale/construct reported through confirmatory factor analysis. Further, a significant inter-variable circular causal relationship was found among the validated dimensions and analysed with an Islamic perspective. Research limitations/implications Study constraints the population into a single industry and a single country. Future studies are suggested to use the newly developed scale/construct in decision-making models and obtain the overall model fit by considering population from diversified organizations and multi countries. Practical implications Comprehensibility of organizational behaviour has always been critical for the efficient functioning of organizations, especially where the situation involves ethical concerns. The proposed scale can be used as a tool to assess the organizational decision-making behaviour related to ethical issues, particularly where the studies intended to examine the determinants of organizational decision-making behaviour related to ethical issues through decision-making models. Originality/value While there is ample literature attempted to examine the organizational EDM, particularly on evaluating determinants of EDM, the majority of the studies have failed to frame the dependent variable of the EDM models adopted for the study in such a manner that is in line with the objective of the study. Although some of the literature suggest the theoretical aspects to address this issue, to date, no work has been done that attempted to develop and validate the scale for the theoretical aspects recommended and confirm with the inter-variable circular causality model. These serve as justification for undertaking this study.