qwertyuiopasdfghjklzxcvbnmqwertyui

opasdfghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmqwertyuiopasdfghjklzxcvb
nmqwertyuiopasdfghjklzxcvbnmqwer
tyuiopasdfghjklzxcvbnmqwertyuiopas
The Influence of Historical Socialism and
dfghjklzxcvbnmqwertyuiopasdfghjklzx
Communism on the Shaping of a Society’s
cvbnmqwertyuiopasdfghjklzxcvbnmq
Economic Ethos: An Exploratory Study of
Central and Eastern Europe
wertyuiopasdfghjklzxcvbnmqwertyuio
Submitted By: Sushant Gupta (2010PGP087)
pasdfghjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvbnmqwerty
uiopasdfghjklzxcvbnmqwertyuiopasdf
Paper Originally Written By:
ghjklzxcvbnmqwertyuio
Walton Padelford and Darin W. White
pasdfghjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmrtyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwertyuio
pasdfghjklzxcvbnmqwertyuiopasdfghj
 1) Introduction of paper
This study utilizes an exploratory research method to investigate the influence of historical
socialism and communism on the shaping of a society’s economic ethos. By utilizing the
newly developed Morality of Profit-Making (MPM) Scale 1, the authors sought to understand
how historical socialism and communism influences respondents’ economic ethical
worldview utilizing an exploratory research design. Data were collected from respondents
in the Czech Republic, Slovenia, Slovakia, Serbia, Poland, and Hungary.

This study deals with the public’s perception of the MPM, thus seeking to quantify
subjective views held by Central and Eastern European (CEE) citizens.
Recent events in 2008 and 2009 leading to worldwide turmoil in financial markets
demonstrate that greed can destroy the efficient functioning of markets. The erosion of
trust in markets and in major market actors, professionals, and institutions is a problem not
only in the West but in emerging Eastern European markets also.

Given the economic reality in the transition economies of the CEE countries, authors seek to
evaluate the public perception of the MPM using a Morality of Profit-Making (MPM) scale
which has already been developed (Padelford and White, 2006). In 2009, Padelford and
White published a study which investigated the morality of profit making view in the
United States. By comparing our data to this study, we seek to gain a better understanding
of the development of CEE society’s economic ethos.

2) Research questions (Objective of the paper)

The authors try to quantify the subjective views held by Central and Eastern European (CEE)
citizens about morality of profit making by comparing them with a similar study done on
people in United States.

For this purpose the authors have proposed 3 null hypotheses as following:

1) (HO) 1: CEE State citizens will view the morality of profit making more negatively than
their U.S. Counterparts.

2) (HO) 2: Because of persistent negative media, the U.S. citizens are more likely to believe
that businesses in the real world are acting so as to exploit humanity in an immoral
fashion to a greater degree than their CEE counterparts.

1. Morality of Profit Making scale has 9 items, which are described in Appendix.
 3) (HO) 3: Because of a background of communism and socialism, the CEE citizens are more
likely to exhibit more deeply held negative attitude toward the tenants of free
enterprise than their U.S. counterparts.

3) Insights gained (from the perspective of statistics)

The Assumptions used by the authors for using one way Anova here are:

1) Random Sampling employed in both the populations.

2) Both the Populations are normally distributed with equal variances.

For the current study, the Cronbach’s alpha-reliability test result for the CEE sample was 0.76.
This meant that the test was highly reliable.

4. Critical analysis (Scope of the Task A)

We can critically analyze the article on following points:

A) The CEE sample consisted of 268 individuals (47.7% male and 52.3% female) aged between 18
and 29.

Although the CEE sample had equivalent exposure to both genders, the age group was between
18 & 29.The scope of the paper can be greatly enhanced by including samples from Age groups 18-
29, 29-45 & 45 above and then trying to see if the view towards morality of profit making changes
across age groups.

1. Morality of Profit Making scale has 9 items, which are described in Appendix.
B) Researchers collected data via the survey instrument in various locations around the University
of Belgrade.
This shows that the sample size taken was predominantly consisted of students. The author
could have taken the knowledge about economics as a variable while the respondents gave their
view towards morality of profit making.

C) Utilizing the mall-intercept approach, a trained interviewer selected a convenience sample of

people to participate in the study, with the objective of gathering responses from culturally diverse
respondents in each location.

Since the authors used a convenience sample, it might affect the results of comparing means
between the two populations. They could have gone with a Random sampling approach which
could have produced less biased results.

How the means were compared:

The authors summed the nine item morality of profit making scale into a global measure and
calculated a mean for each group.
1) The MPM was measured by nine-seven-point items anchored at 1 (‘‘strongly disagree’’) and
7 (‘‘strongly agree’’).
2) The MPM instrument measures both dimensions of the morality of profit making construct:
an individual attitudinal dimension and the business behavioral dimension of the MPM. The
lower a respondent scored on the MPM scale, the more positive their opinion of the MPM.

5. Comment on the methodology followed

1) Survey Item was developed very meticulously after testing.
Initially, an English-version survey was created and pre-tested among international students at a
major U.S. university, including natives from the regions of Europe to be sampled. After minor
improvements, the foreign-language versions of the survey were developed with the translation-
back-translation method to ensure that the English and foreign language versions were
equivalent.

2) Emphasis on collecting matched samples of country groups in Europe than taking

weighted proportion.
Resource constraints made it impossible to obtain data from every country within the European Union.
Thus, for this exploratory study, the researchers felt it was more important to collect matched samples of
country groups rather than weight by proportions of the overall population. The sample design employed
was somewhat unusual; however, it was valid for exploratory purposes.

1. Morality of Profit Making scale has 9 items, which are described in Appendix.
6. Alternative statistical tool suggestion
Instead of just performing one way ANOVA, we can take other variables within the population group also
into account and perform a Multivariate ANOVA test.

The Following Variables can be taken into account while performing Multivariate ANOVA test.

1) Gender
2) Age
3) Graduation scores,
4) Political beliefs,
5) Parent’s education level,
6) Knowledge of Economics

7. Finding from the suggested tool.

By performing a Multivariate ANOVA Test we get the following findings:

(The data was assumed for the same, done by assuming data on gender & age)

1) In US, Gender is important in predicting the MPM perception. Females tend to be more
negative in this regard.
2) In the CEE, as persons get older, they become more positive in their assessment of the MPM.
3) In the United States we found that taking an economics class in college moves the student
toward a more positive view of the MPM.

MPM: Morality of Profit making.

8. Discussion on findings.
The findings show that citizens in the CEE countries view the phenomenon of profit-making as a more
negative moral category than do their U.S. counterparts. Their deeply held beliefs or principles also are much
more negative toward profit-making as a principle of life or as a fundamental building-block of society.
Interestingly, the U.S. citizens viewed the tenants of capitalism (companies and institutions) more negatively
than their CEE counterparts. This view refers to current-day assessments of the ethical performance of
businesses.

9. Lesson learnt.

We can easily infer from the research methodology here that Development of Survey item,
checking its reliability, development of proper hypothesis & correct sampling
procedure all of them play a vital role in getting the Best result out of a quantitative research.

1. Morality of Profit Making scale has 9 items, which are described in Appendix.
Also when & how to properly use the one way Anova test was very amply demonstrated by
the research paper.

Appendix:
Morality of profit-making scale items
1) Most corporations exploit demand and cost to raise (already high) rates of return.
2) In general, big companies are so completely absorbed in their profit positions that they are
willing to exploit innocent humanity for the sake of a few extra dollars of profit.
3) I feel that it is immoral for individuals to take a profit.
4) Big businesses are willing to exploit human frailty for the sake of monetary return.
5) I feel that the best definition of capitalism is the exploitation of man by man.
6) The pursuit of profit by private individuals is totally immoral.
7) Free enterprise has been responsible for most of the evils in our society.
8) In general, I feel that capitalism is bad.
9) Corporations are willing to exploit human frailty for the sake of monetary return.

For the assumption of data:

1) A Longitudinal Study of Individuals’ Morality of Profit-Making Worldview 2009 JBE
Padelford & White.

1. Morality of Profit Making scale has 9 items, which are described in Appendix.