J Bus Ethics (2016) 134:263–279

DOI 10.1007/s10551-014-2426-y

Cultural Values, Utilitarian Orientation, and Ethical Decision

Making: A Comparison of U.S. and Puerto Rican Professionals
Lillian Y. Fok • Dinah M. Payne • Christy M. Corey

Received: 8 August 2013 / Accepted: 9 October 2014 / Published online: 19 October 2014
 Springer Science+Business Media Dordrecht 2014

Abstract Using samples from the U.S. and Puerto Rico, business contexts (e.g., Beekun and Westerman 2012;
we examine cross-cultural differences in cultural value Fritzsche and Oz 2007; Watson et al. 2009). Cross-cultural
dimensions, and relate these to act and rule utilitarian studies of business ethics consistently examine values,
orientations, and ethical decision making of business pro- specifically national culture values, as a means of
fessionals. Although these places share the same legal explaining differences in ethical decisions. Most of this
environment, culturally they are distinct. In addition to empirical research relies on between-group comparisons of
tests of between-group differences, a model in which cultural values and ethical outcomes. Although differences
utilitarian orientation mediates the influence of cultural in ethical responses among residents of different countries
values on ethical decisions was evaluated at the individual and cultures have been documented, the between-group
level of analysis. Results indicated national culture differ- comparisons do not explain why these cultural differences
ences on three cultural values, but no between-group dif- emerge (O’Fallon and Butterfield 2005; Ulrich and Thie-
ferences on utilitarian orientations and ethical decisions. lemann 1993). Therefore, achieving a deeper understand-
Significant indirect effects were found; act utilitarian ori- ing of the process through which cultural values influence
entation mediated the effects of two values activity orien- ethical decisions is one of the main objectives of this
tation and universalism on ethical decision making. research.
Implications for international management practices and Here, cultural values used to distinguish one nation from
business ethics are discussed. another at the national level are also conceptualized as
individual-level characteristics that influence the ethical
Keywords Decision making
Ethical orientation
decision making via an indirect process mediated by the
Ethics
National culture
Values ethical orientation of decision makers. Hunt and Vitell’s
(1993) model of business ethics acknowledges the role of
ethical orientation as a vehicle through which cultural
Introduction values affect ethical decision making. Because this specific
mediation effect has not been empirically demonstrated in
There is a growing body of empirical research examining previous research, a major goal of this study is to verify the
how individual values affect ethical decision making in indirect effect. Although numerous types of ethical orien-
tations have been described in the ethics literature, we
focus exclusively on utilitarian ethical orientation con-
L. Y. Fok
D. M. Payne
C. M. Corey (&)
ceptualized as two types, act-based and rule-based, because
Department of Management, University of New Orleans, 2000
Lakeshore Drive, New Orleans, LA 70148, USA this type of ethical orientation has previously been linked
e-mail: cmclendo@[Link] to differences in ethical decisions in business contexts
L. Y. Fok (Fritzsche and Becker 1984; Premeaux 2004; Premeaux
e-mail: yfok@[Link] and Mondy 1993; Victor and Cullen 1988).
D. M. Payne In the current study, cultural values, utilitarian orienta-
e-mail: dmpayne@[Link] tion, and ethical decision making are examined using

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264 L. Y. Fok et al.

samples of business professionals in the continental U.S. behaviors (p. 13).’’ Business ethics is the ‘‘moral thinking
and the U.S. territory Puerto Rico. Although these venues and analysis by corporate decision-makers and other
are, of course, part of the same country, the dispersed members regarding the motives and consequences of their
geographic location of the areas and the distinct Spanish- decisions and actions (Amba-Roa 1993, p. 553).’’
speaking character of Puerto Rico converge to make this a There is a growing interest in international and cross-
very different set of cultures. This particular cross-cultural cultural research regarding ethical decision making. The
comparison is different than most in the ethics literature general conclusion is that nationality does affect ethical
because, although clear cultural differences exist in areas choices, but to what extent is unclear (O’Fallon and
like their native tongues, the legal environments of both Butterfield 2005). Some of this research has been directed
places are determined by the same set of U.S. laws. Thus, toward comparisons of one country or culture to another,
the legal environment, a situational factor that impacts while some studies have involved multiple countries and
ethics, is essentially controlled for in this study. If between- cultures. Single-country studies have been done on the U.
group differences in business ethics are observed, they S. and China (Morris et al. 1998; Shafer et al. 2006; Ma
should be due to cultural variations that exist independent 2010), the U. S. and Japan (Lopez et al. 2009), the U. S.
of the underlying legal environment. and France (French et al. 2001), Australia and China
The culture of Puerto Rico is typically regarded as (Tsui and Windsor 2001), the U.S. and Norway (Beekun
Hispanic, but it is also noticeably absent from big multi- and Westerman 2012), and the U. S. and Sweden (Helin
country studies of national differences in cultural values and Sandstrom 2008). Tung and Verbeke (2010), Venaik
(e.g., Hofstede 1980, 1991; House et al. 2004; Trompena- and Brewer (2010), Forsyth, O’Boyle and McDaniel
ars 1993), most likely due to the fact that it is not an (2008), Scholtens and Dam (2007), Tsai and Chi (2011),
independent nation. In his research, Hofstede (1980, 1991) Williams and McGuire (2010), and Ala and McGuire
found that, across countries with Hispanic cultures, values (2005) have all engaged in studies that included multiple
vary somewhat. Yet when compared to the U.S., these countries.
countries appear more similar than different in areas like There have been many studies related to ethical attitudes
collectivism. Therefore, an additional goal of this study is in general: O’Fallon and Butterfield’s (2005) literature
to empirically demonstrate that cultural values of Puerto review is a good one to form a sense of ethical issues and
Rican professionals are distinct from those of U.S. pro- responses. They found that moral judgment is the most
fessionals, and, furthermore, to show that Puerto Rican common dependent variable in the ethical decision making
values are more aligned with the characteristic values of process; the ethical decision making process was not as
other Hispanic cultures. dependent on intentions or behaviors as they had expected.
Increasing our understanding of the nature of cross- Thus, moral judgment is at the heart of the ethical decision
cultural differences and how potentially different combi- making process and culture is a large determinate of moral
nations of cultural values impact ethical decision making judgment (O’Fallon and Butterfield 2005; Volkema 2004;
are important because they directly affect the increasingly Goolsby and Hunt 1992). Nationality was found to be the
multicultural workplace. Such a determination may lead fourth factor in impact on ethical attitudes (O’Fallon and
to better management practice in dealing with multi- Butterfield 2005). Nationality is culturally-based and these
national enterprises: to better understand what motivates cultural characteristics have been used to explain national
workers, how they think, and how to fashion solutions differences (Hofstede 1980, 2001).
that will be acceptable to all, regardless of cultural Using data from more than 40 countries, Franke and
background. Nadler (2008) explored the relationships between culture,
economic development and national standards of ethics.
National Culture and Ethical Decision Making They note that differing perspectives on a host of legal
and ethical issues are the cause of managerial and legal
Ethics is an inquiry into the foundations of morality, the problems for organizations engaged in multi-cultural,
moral judgments, standards and rules of conduct of a per- multinational business. ‘‘Understanding global variations
son (Taylor 1975). It guides human behavior and helps one in ethical decision-making is therefore critical for mul-
distinguish between good and bad, right and wrong (Phatak tinational businesses (p. 254).’’ Resick et al. (2006),
et al. 2009), and it contributes to an understanding of what Barnard (1938), Carroll (2004) and Scholtens and Dam
is fair and unfair (Carroll 2004; Freeman and Gilbert 1988). (2007) all cite ethics as being important in the conduct
Velasquez (1998) has defined business ethics in similar of business, and further assert that ethics and culture
terms. ‘‘Business ethics is a specialized study of moral right are very powerful determinants of behavior that inter-
and wrong. It concentrates on moral standards as they national managers need to understand and be able to deal
apply particularly to business policies, institutions, and with.

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Cultural Values and Ethical Decision Making 265

The Process of Ethical Decision Making Utilitarian Ethical Orientation and Ethical Decision
Making
As we try to illuminate why cross-cultural differences in
ethical decision making emerge, we consider the role of Past research has shown that decision makers use a wide
utilitarian ethical orientation in the ethical decision range of ethical criteria and theories to justify their ethical
making process. Our interest is not in what a manager decisions (Granitz and Loewy 2007; Reidenbach and Robin
would do in an ethical dilemma, but why he or she would 1988; Schumann 2001; Shultz and Brender-Ilan 2004).
choose to do it that way. Most research in the area of While developing a behavior measure of ethical decision
behavioral ethics is based on Rest’s (1986) four-stage making in a business context, Fritzsche and Becker (1984)
model of ethical decision making (see Kish-Gephart et al. found that most professionals provided some form of
2010; Loe et al. 2000; O’Fallon and Butterfield 2005). utilitarian reasoning to justify their ethical behavior. Util-
The ethical decision making process starts when a person itarian theories assume that the morality of a decision is
recognizes a particular issue as posing an ethical dilemma determined by taking into account the decision alternative
(Hunt and Vitell 1986; Rest 1986). The process eventu- that produces the greatest good for the greatest number of
ally leads to the stage of moral intention when the deci- people. Decisions are deemed unethical when they create
sion maker commits to a particular course of action, and personal gain at the expense of the greater good or when it
finally moral action occurs when one carries out the results in inefficient goal attainment.
intended behavior. In the current study, we focus exclusively on utilitarian
Ethics is not reflected solely in an ethical intention or ethical orientation as an antecedent to ethical decision
behavior. Because the same intention or behavior can be making. Researchers generally distinguish between two
attributed to different reasons or justifications (Collins and forms of utilitarianism, act-based reasoning and rule-
Wray-Bliss 2005; Lahdesmaki 2005; Victor and Cullen based reasoning (Fritzsche and Becker 1984; Premeaux
1988), the ethical basis of a behavioral decision may be 2004; Premeaux and Mondy 1993). When individuals
better determined from the justification for that decision invoke act utilitarian reasoning, actions are judged ethical
rather than from the behavior (or intention) itself. In depending on their outcomes and consequences for the
empirical investigations, the ethical orientation of a deci- decision at hand. Rule utilitarian reasoning involves
sion maker is typically determined by analyzing the post- decision makers following rules (e.g., laws, organizational
decision rationale for terminology that expresses different policies, personal code of conduct) designed to achieve
ethical theories (Fritzsche and Becker 1984; Granitz and the greatest net positive consequences over time. Fol-
Loewy 2007; Lahdesmaki 2005; Premeaux 2004; Preme- lowing the rules results in the greatest good in the long
aux and Mondy 1993; Victor and Cullen 1988). term and should not be ignored because of a possible
The ethical orientation reflected in a decision justifica- exception.
tion matters because it leads the decision maker to consider The conceptual link between utilitarian ethical orien-
different criteria by which decision alternatives are judged tations and ethical decision making has been demon-
(Victor and Cullen 1988). It provides a framework within strated empirically. Fritzsche and Becker (1984) found
which individuals contemplate issues of right and wrong that individuals with a rule-utilitarian orientation were
and assists them with determining the right way to behave more likely to make decisions that emphasized ethical
(Fraedrich and Ferrell 1992). Past research suggests that value, whereas those with an act-utilitarian orientation
individuals’ ethical orientation is associated with their were likely to make choices that emphasized economic
ethical judgments (Fraedrich and Ferrell 1992; Fritzsche value. Although replication of these findings is antici-
and Becker 1984). pated, this is not a primary focus of this study. Instead,
In models of ethical decision making, the exact our goal is to explain how national and cultural value
point(s) in the process when one’s ethical orientation differences influence this process. Interestingly, Whit-
comes into play varies. In their model of ethical decision comb et al. (1998) found that similar decisions were made
making, Hunt and Vitell (1986) assert that ethical theory by individuals from different cultures, but for different
is incorporated early into the decision making process reasons. These findings suggest that the influence of
during the problem evaluation phase. However, Rest national and cultural differences on ethical decision
(1986) argues that ethical theory plays a role throughout making operates indirectly by first affecting the ethical
the ethical decision making process from when a decision orientation of the decision maker, which, in turn, impacts
maker first conceptualizes a problem, through the evalu- the behavioral intention and subsequent action. In other
ation and judgment stages, to when the decision is finally words, utilitarian ethical orientations mediate the cultural
made. values–ethical decision relationship.

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266 L. Y. Fok et al.

Linking Culture, Values, and Ethical Behavior affect ethical decision making. They include individualism/
collectivism, short-/long-term time orientation, being/
Values form an important foundation of ethics: they are doing activity orientation, and universalism/particularism.
held by individuals and organizations (Elango et al. 2010). These cultural values apply to everyone, yet individual
Furthermore, ethical business behavior stems from a value sets may vary considerably within cultures or groups
manager’s personal values (Hemingway and Maclagan (McGuire et al. 2006).
2004). Hofstede (2001) associates culture with values, Because Puerto Rican cultural values are hypothesized
systems of which are core elements of culture. Values are to be congruent with Hispanic cultural values, we review
described as broad tendencies to prefer certain states over literature pertaining to Hispanic cultures. The tremendous
others; they are the deepest expressions of culture. Morris diversity within the Hispanic population demands consid-
et al. (1998) assert that members of the same culture are erable caution against labeling and perceiving Hispanics as
likely to share values acquired in the process of sociali- a single cultural or ethnic group with a uniform value set
zation. Values influence attitudes and decisions which, in (Baruth and Manning 1992). Hofstede’s (1991) research on
turn, affect behavior. Collectively, they form an ongoing cultural value dimensions for Hispanic nations in North,
spiral of culture (Payne and Landry 2005; Ma 2010; Taras Central, and South America included samples from
et al. 2011). Argentina, Uruguay, Mexico, Chile, Peru, Costa Rica,
Culture influences ethical values, attitudes, and behav- Colombia, Venezuela, Panama, Ecuador, and Guatemala.
iors (Ma 2010), and Hunt and Vitell’s (1986, 1993) theory A comparison of the national scores of these countries on
of ethical decision making incorporates all of these ele- Hofstede’s cultural dimensions shows substantial variabil-
ments. In their model, the effect of cultural values on ity across Hispanic cultures. However, together their
ethical intentions and behaviors occurs through the ethical national scores were consistently greater than or less than
orientation of decision makers. Recently, the link between the U.S. score on the same dimension. More recently, the
values, ethics, and ethical decision making has received Global Leadership and Organizational Behavior Effec-
considerable attention from investigators (e.g., Fritzsche tiveness or GLOBE project (House et al. 2004) has accu-
and Oz 2007; Beekun and Westerman 2012; Watson et al. mulated data regarding cross-cultural values and practices.
2009). However, within this stream of research, the values By analyzing similarities and differences between cultural
considered are varied and not consistent across studies. groups in the GLOBE project, Northouse (2007) found a
Having made the connection between culture and val- unique regional Latin America cluster where characteristic
ues, attitudes and behavior, i.e., the ethics or morality of a values include loyalty and dedication to family and other
culture, we now turn to an examination of cultural char- similar groups, as well as a present, and not future, orien-
acteristics. Cultural characteristics incorporate values, tation. Next, we describe the four cultural values included
attitudes, and behaviors. Hofstede’s (1980) cultural values, in the current study.
individualism–collectivism and long-term orientation have
been used numerous times in research on national culture Individualism/Collectivism
in the workplace. We seek to determine how these cultural
values, augmented by others found in empirical research, Individualism and collectivism are at opposite ends of a
relate to ethical decision making. ‘‘National culture, orga- spectrum relating to one’s relationship with others in their
nizational culture, personal religious beliefs, economic culture and with their groups. Individualism reflects a
pressures, and other factors will influence judgments, group which views its members as being individuals who
intentions, and behaviors regarding (ethically questionable) are loosely linked and whose members are motivated by
actions… (Franke and Nadler 2008, p. 255).’’ their own individual motives and ends. Collectivists are
more associated members of the group, with which they
Cultural Dimensions identify closely and which provides the motivation for the
group’s behavior. In collectivist societies, the group is
The earliest attempt to categorize cultural value dimensions more important than the individual, while in individualist
was made by Kluckhohn and Strodtbeck (1961). Others societies, the individual is more important.
built on this and added more characteristics (Alas 2006; The collectivist value is a hallmark characteristic of the
Hofstede 1980, 1991, 2001; Hofstede and Bond 1988; Hispanic world. High collectivistic values have been found
House et al. 2004; Morris et al. 1998; Resick et al. 2006; in Guatemala, Ecuador, Panama, Venezuela, Columbia,
etc.). Next, we describe four specific cultural dimensions Costa Rica, Mexico, and Peru (Hofstede 1991; Northouse
that are (1) relevant to cross-cultural comparisons between 2007). Hispanic-Americans are also more likely to hold
the U.S. and places with Hispanic-based cultures, and (2) these values (Marin and Triandis 1985). In Hofstede’s
expected to relate to utilitarian ethical orientation and (1991) research, individualism scores for Hispanic nations

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Cultural Values and Ethical Decision Making 267

ranged between 6 and 46. Compared to the U.S. score of and Strodtbeck 1961), although Latino Americans, in par-
90, all of the Hispanic nations were more collectivistic. ticular, are more accurately characterized as be-ers (Sue
and Sue 1990). There is relatively little research linking
Time Orientation this cultural dimension to ethical decision making.

The cultural dimension, time orientation, relates to the

Universalism/Particularism
culture’s view of the past, the present and the future, how
those time frames are regarded (Adler 1997) and time
Universalism is the degree to which a culture values uni-
orientation length (Hofstede 2001). Individuals with long-
versal behavior or hypernorms (Resick et al. 2006). Uni-
term orientation may project years into the future when
versalism represents a culture’s desires to use well-
planning or making decisions, whereas those with short-
established standards of behavior when dealing with
term orientation tend to focus on the here and now. Long-
ambiguous situations. Particularism is a cultural approach
term oriented societies believe in looking toward the future
that accepts the adaptation of behaviors to a given, par-
and adopting behavior that will preserve and build future
ticular situation and set of relationships (Lefebvre 1982;
value. Perseverance and thrift are noted as important values
Trompenaars 1993). ‘‘(B)ehavior, including rule-breaking
in long-term oriented societies (Soares et al. 2007).
behavior, is endowed with meaning and regulated by
Based on the inconsistent findings of past research, the
commonsense notions that provide order and regularity
role of long-term orientation in ethics and ethical decision
(Verkuyten et al. 1994, p. 490).’’
making is not clear (Arli and Tjiptono 2013; Christie et al.
Universalistic cultures are more rule-bound and poten-
2003; Nevins et al. 2007). Using a sample of business
tially less well equipped to think individualistically about,
students from the U.S., Nevins et al. (2007) found that two
for example, complex ethical issues or achieving solutions
aspects of long-term orientation, tradition and planning,
without challenging the rules. ‘‘Rule-based conduct has a
were significant positive predictors of personal ethical
tendency to resist exceptions that might weaken the rule
values. Cross cultural research in this area has produced
(Trompenaars 1993, p. 33).’’ More particularistic cultures
less clear conclusions. Christie et al. (2003) conducted a
are not so rule-bound and may be better able to ‘‘think
study of cultural values and ethical attitudes of business
outside the box’’ when it comes to making complex deci-
managers from India, Korea, and the U.S. They found that
sions. In their cross-cultural comparison of over 40 coun-
U.S. managers were higher in long-term orientation, but
tries, Trompenaars and Hampden-Turner (1998) concluded
this did not consistently affect ethical attitudes across
that the U.S. is characterized as a universalistic culture
decision situations.
which emphasizes a need for specific, non-flexible con-
Past research on this cultural dimension suggests that,
tracts in business relationships. Latin American countries,
compared to the U.S., Hispanic cultures tend to be more
in contrast, are more particularistic and contracts are
short-term oriented (Hall 1983; Marin and Marin 1991).
regarded as loose agreements, the terms of which can be
Northouse (2007) also found that the cultural region Latin
changed as needed. Based on these findings, we expect
America could be characterized by a present-orientation.
Puerto Rican professionals to be more particularistic and
Consistent with this value, Hispanic people are generally
U.S. professionals to be more universalistic.
relaxed about time and punctuality, including deadlines,
and they tend focus on immediate short-term goals (Elahee
and Brooks 2004). The Current Study

Activity Orientation In linking cultural values to utilitarian ethical orientation

and ethical decision making, we use a macro and micro
A culture’s view of doing versus being is related to the approach to conceptualizing cultural values. First, if
degree to which a group embraces accomplishment rather national differences in act and rule utilitarian orientation
than espousing the values found in leisure and family life. and ethical decision making are observed, we assume that
Similar in nature to Alas’s (2006) concept of performance those differences are driven by cultural value differences
orientation, this orientation concerns the encouragement between the U.S. and Puerto Rico. If the cultural values of
and/or reward for performance improvement or excellence Puerto Rico are aligned with Hispanic cultures, we expect
(also cited in Resick et al. 2006). ‘‘Doing’’ cultures seek to Puerto Rican business professionals to be collectivistic,
achieve the most in life: more specific time planning can short-term oriented, more be-ers than do-ers, and particu-
accelerate processes, while ‘‘being’’ cultures want to laristic. In contrast, U.S. business professionals are
experience life. Exact time planning is not essential. The expected to be individualistic, long-term oriented, more do-
United States is a very doing oriented culture (Kluckhohn ers than be-ers, and universalistic.

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268 L. Y. Fok et al.

There is limited empirical research connecting specific between nations (Hofstede 1980; Samiee and Jeong 1994).
cultural values to rule- and act-based utilitarian orienta- This may be particularly true regarding the U.S. which has
tions. Logically, one may expect individuals in collectivist one of the most culturally diverse populations in the world.
societies to develop a rule-utilitarian orientation because, Based on data provided by working professionals from the
in these cultures, individuals act primarily as members of continental U.S. and Puerto Rico, we examine relationships
the group and, therefore, are more likely to adhere to social among national culture, specific cultural values, act and rule
norms and follow rules (not laws) that are more abundant utilitarian orientations, and ethical decision making. Despite
compared to individualist societies (Hofstede 1980, 1991). the fact that Puerto Rico was not included in any research on
Based on the individualistic values of U.S. culture, indi- Hispanic cultural values described previously, we expect
viduals are less likely to adhere to social norms and rules, that it will be more similar to other Hispanic nations and less
and therefore may be more likely to develop an act utili- similar to the U.S. Based on the arguments presented above,
tarian orientation. Using the same logic regarding uni- we offer the following hypotheses:
versalism/particularism, one might expect individuals in a
universalistic society to have more of a rule-utilitarian
orientation as they are more rule-bound, whereas those in a H1 Business professionals in the U.S. and Puerto Rico will
particularistic society would more likely develop an act- differ across cultural values. U.S. professionals will be
utilitarian orientation. Given the fact that the U.S. culture is higher in individualism, long term orientation, doing
described as both individualistic and universalistic, the and universalism compared to P.R. professionals
logic of both arguments leads to contradictory predictions H2 Business professionals in the U.S. and Puerto Rico
for the likely utilitarian orientation of U.S. professionals. will differ across utilitarian ethical orientations. U.S.
Because the individualistic nature of the U.S. culture professionals will be higher in act utilitarian
and the collectivistic nature of Hispanic cultures are con- orientation and P.R. professionals will be higher in
sidered hallmarks of these societies, we expect profes- rule utilitarian orientation
sionals from these areas to act in accordance with their H3 Business professionals in the U.S. and Puerto Rico
dominant cultural values. Therefore, U.S. professionals will differ in the level of ethical decision making.
should develop act-utilitarian orientations and Puerto Rican P.R. professionals will make more ethical decisions
professionals should develop rule-utilitarian orientations. compared to U.S. professionals
Given that rule utilitarian orientation has been associated H4 The values of decision makers will influence their
with more ethical decisions and act utilitarian orientation utilitarian orientation. The value universalism will be
with less ethical decisions (Fritzsche and Becker 1984), we positively related to rule utilitarian orientation, and
expect to see between-group differences such that Puerto negatively related to act utilitarian orientation. The
Rican professionals score significantly higher in ethical values individualism, long-term orientation and doing
decision making compared to U.S. professionals. will be negatively related to rule utilitarian orientation
When examined at the individual level of analysis, we and positively related to act utilitarian orientation
expect similar relationships. Individualism, short-term H5 The value universalism will be positively related to
orientation, and doing should be positively related to the ethical decision making, whereas the values
use of an act utilitarian orientation in the ethical decision individualism, long-term orientation and doing will
making process, whereas universalism should be nega- be negatively related to ethical decision making
tively related. The opposite effects are expected regarding H6 Rule utilitarian orientation will be positively related
rule utilitarian orientation. Act utilitarian orientation to ethical decision making, and act utilitarian
should negatively predict ethical decisions and rule utili- orientation will be negatively related to ethical
tarian orientation should have a positive influence. If these decision making
cultural values indeed impact utilitarian orientation in the H7 Utilitarian orientation will mediate the relationship
expected directions, then we also expect utilitarian orien- between values and ethical decision making
tation to act as the mediator through which cultural values
affect ethical decision making.
By considering the role of cultural values at the level of
the nation and the level of the decision maker, we expect to Method
demonstrate how the relationship between cultural values
and ethical decision making can be observed at both levels Participants/Data Collection
of analysis. However, treating a nation or state the same as
a culture may not always be appropriate because hetero- Two convenience samples of participants were recruited
geneity within a nation may be greater than heterogeneity from pools of executive MBA (EMBA) students taught in

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Cultural Values and Ethical Decision Making 269

programs administered by a university in a large Southern Becker and Fritzsche 1987; Premeaux and Mondy 1993)
city in the U.S. Participants in the U.S. EMBA program instrument. This measure contains five hypothetical vign-
were instructed in the U.S., whereas participants in the ettes that describe various ethical dilemmas about coercion,
Puerto Rican EMBA program were taught face-to-face in bribery, environment/pollution, paternalism, and personal
Puerto Rico. The EMBA program does not contain a integrity (see Appendix A). For each vignette, two responses
business ethics course, but the business ethics concepts are were solicited. First, subjects were asked to indicate on a 0
incorporated in various courses. Participants completed the ‘‘definitely would not’’ to 10 ‘‘definitely would’’ scale what
study during the first 6 months of the 18 month program, their own decision would be to the scenario issue. With the
and, thus, were less informed about ethics compared to exception of vignette 5, higher scores indicate a preference
those further along in the program. for economic value over ethical value; in vignette 5, higher
The study adhered to ethical guidelines for human subjects scores indicate a preference for ethical value. To create a
research, and all respondents gave their informed consent to summary measure of ethical decision making in which
participate prior to completing the study. The survey was higher scores indicate more ethical judgments, first ratings
posted online in a digital course folder along with other stu- on vignettes 1, 2, 3, and 4 were reverse coded. Next, an
dent material. Participants downloaded the survey and filled it aggregate decision score was calculated for each respondent
out at a time convenient to them. Upon completion of the by averaging decision ratings across all 5 vignettes.
survey, participants emailed their responses to the authors. After reading each scenario and providing a decision
Sample sizes for the U.S. and Puerto Rican groups were 66 rating, participants indicated the reasoning behind that
(56.4 %) and 51 (43.6 %), respectively. All participants decision. Options were presented in multiple-choice for-
resided in their respective country of origin. In the U.S. mat, including an open-ended option. Following Whitcomb
sample, the subjects were 47 % male and 53 % female with et al. (1998), decision reasons were coded as reflecting one
an average age of 35.9 with 15.4 years of working experi- of four ethical theories: Rule Utilitarianism, Act Utilitari-
ence and 6.5 years in a management position. In the Puerto anism, Theory of Moral Rights, or Theory of Justice. As
Rican sample, the subjects were 65 % male and 35 % female seen in Appendix A, each vignette contained reasoning
with an average age of 34.5 with 13.7 years of working options related to at least two of the four ethical theories
experience and 6.5 years in management position. 94 % of considered in this study. Reasoning alternatives in all 5
the Puerto Rican sample was from areas with a Latino culture vignettes included options that were rule-utilitarian or act-
and Spanish was their first language; 44 participants were utilitarian in nature.
native Puerto Ricans and four others were from Colombia,
Mexico, and Venezuela. Finally, three participants were
from the U.S. and residing/working in Puerto Rico. Results

Instruments A summary of hypothesized relationships and findings

between national culture, cultural values, utilitarian orien-
Cultural Values tation, and ethical decision making is presented in Table 1
(includes H1–H6). The level of significance is .05 for all
Cultural values were assessed using an instrument adopted statistical tests. Hypotheses 1, 2, and 3 concern differences
from a Brenner and McGuire (Brenner and McGuire 2003; between professionals from Hispanic and non-Hispanic
McGuire et al. 2006) study. The instrument is a 150-item cultures, indicated by Puerto Rico and the U.S., respec-
self-report questionnaire on cultural values and beliefs. tively, on key variables involved in the ethical decision
Items were developed based on qualitative research on making process. These include cultural value dimensions
culture, or taken directly or adapted from existing, vali- represented at the individual level of analysis (H1), act and
dated culture surveys. Brenner and McGuire (2003) found rule utilitarian ethical orientations (H2), and behavioral
evidence of the Cultural Values Instrument’s scale reli- decisions (intentions) on ethical dilemmas (H3). MANO-
ability and construct validity on a sample of American VA analysis was used to test H1 and H3, and one-way
respondents. Respondents indicated their agreement to ANOVAs were used to assess H2.
statements about their ideal job and their values and beliefs Consistent with H1, MANOVA analysis testing the effect
using 7-point agreement scales. of national culture on four specific cultural value dimensions
was significant (Pillai’s Trace = .11, F (4,112) = 3.60,
Ethical Decision Making p = .01). Table 2 contains the results of one-way ANOVA
tests for each cultural value as well as the mean values for the
Ethical decision making was assessed using the Becker and two groups. Professionals in the U.S. and Puerto Rico were
Fritzsche Behavioral Decision (Fritzsche and Becker 1984; significantly different on three of the four cultural value

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270 L. Y. Fok et al.

Table 1 Summary of hypothesized relationships between the main study variables

U.S. P.R.

National culture—values, ethical orientation, and decision making

Values (H1)
Individualism Highera Lowera
Long-term orientation Highera Lowera
a
Doing orientation Higher Lowera
Universalism Higher Lower
Ethical orientation (H2)
Rule-based utilitarian Lower Higher
Act-based utilitarian Higher Lower
Ethical decision making (H3) Lower Higher
Individualism Long term orientation Doing orientation Universalism

Values—ethical orientation and decision making

Rule-based utilitarian (H4) (-) (-) (-) (?)a
a
Act-based utilitarian (H4) (?) (?) (?) (-)a
a
Ethical decision making (H5) (-) (-) (-) (?)a

Rule-based Act-based

Utilitarian orientation—ethical decision making (?)a (-)a

(H6)
a
Results supported hypothesized effect

Table 2 One-way ANOVA results for nationality and four cultural

dimensions, Individualism (F (1,115) = 4.27, p \ .05),
value dimensions
Long-term orientation (F (1,115) = 4.44, p \ .05), and
Doing orientation (F (1,115) = 3.85, p \ .05). The group Cultural value M SD F
means on these values are presented in Table 2. In support Individualism
H1, the U.S. sample scored higher on all three, on average, USa 3.98 .50 F (1,115) = 4.27, p = .04
than the Puerto Rican sample which implies that business PRb 3.81 .38
professionals in the continental U.S. have a more doing Totalc 3.91 .46
attitude, are more individualistic, and have a more long-term Long-term orientation
orientation than professionals in Puerto Rico. Although these USa 4.77 .64 F (1,115) = 4.44, p = .04
results were mostly supportive of H1, no significant group PRb 4.52 .65
differences were found on the cultural value universalism Totalc 4.66 .65
(F (1,115) = 1.87, p = .17).
Doing
To examine the relationship between national culture
USa 4.48 .45 F (1,115) = 3.85, p = .05
and utilitarian orientations (H2), we conducted separate
PRb 4.33 .36
analyses for act and rule utilitarian orientations. Partici-
Totalc 4.42 .42
pants’ rule utilitarian orientation scores reflected the
Universalism
number of times they justified their ethical decisions with
USa 5.15 .69 F (1,115) = 1.87, p = .17
reasons reflecting this particular orientation. Contrary to
PRb 4.99 .59
H2, a one-way ANOVA revealed no significant differences
Totalc 5.08 .65
between U.S. (M = 2.50, SD = .98) and Puerto Rican
(M = 2.45, SD = .92) professionals in their reliance on a US United States, PR Puerto Rico
a
rule-utilitarian orientation (F (1,115) = .076, p = .78). N = 66
b
The conclusions were the same regarding act utilitarian N = 51
c
orientation. There were no significant differences between N = 117

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Cultural Values and Ethical Decision Making 271

Table 3 Comparison of nationality and average ethical decision way ANOVA test conducted on the average ethical decision
rating across vignettes rating across all five vignettes. Consistent with the previous
Vignette M SD F results, the difference in group means was not significant
(F (1,115) = .96, p = .33).
V1
Hypotheses 4, 5, and 6 concerning the expected direc-
USa 2.65 3.23 F (1,115) = .05, p = .83 tions for relationships between values, utilitarian ethical
PRb 2.78 3.29 orientations, and ethical decision making were tested using
Totalc 2.71 3.21 correlation analysis. The results are presented in Table 4.
V2 The findings partially supported H4; two of the four cul-
USa 3.08 2.89 F (1,115) = 1.47, p = .23 tural values considered were related to frequency with
b
PR 2.45 2.59 which a given utilitarian orientation was used. As expected,
Totalc 2.80 2.77 universalism was positively related to the use of rule util-
V3 itarian orientation (r = .25; p \ .01) and negatively related
USa 1.24 2.54 F (1,115) = .81, p = .37 to the use of act utilitarian orientation (r = -.24; p \ .01).
PRb 1.69 2.78 In further support of H4, the value doing was associated
Totalc 1.44 2.65 with increased use of act utilitarian orientation (r = .19;
V4 p \ .05), and decreased use of rule utilitarian orientation
USa 2.38 3.27 F (1,115) = .14, p = .71 (r = -.16; p = .07), although the latter effect was mar-
PRb 2.16 3.05 ginally significant. The values individualism and long-term
Totalc 2.28 3.17 orientation were unrelated to either type of utilitarian
V5 orientation.
USa 7.27 3.60 F (1,115) = 3.25, p = .06 Similar to the previous results, partial support was found
PRb 8.33 2.48 for H5 concerning the values–ethical decision making rela-
Totalc 7.74 3.19 tionship. Again, the universalism and doing values were sig-
Decision average nificantly related to ethical decision making in the expected
USa 7.59 1.36 F (1, 115) = .962, p = .33 opposite directions. Universalists were significantly more
PRb 7.85 1.57 likely make decisions that had ethical, as opposed to eco-
Totalc 7.70 1.45 nomic, value (r = .20; p \ .05). In contrast, do-ers were more
likely to make decisions with more economic and less ethical
US United States, PR Puerto Rico
a
value (r = -.30; p \ .01). Although universalism and doing
N = 66
b
have consistently opposing relationships with rule utilitarian
N = 51
c
orientation, act utilitarian orientation, and ethical decision
N = 117
making, the values themselves are not related (r = .06;
p = .52), and will therefore provide independent predictors in
U.S. (M = .97, SD = .95) and Puerto Rican (M = .96, the regression analysis required to test H7. Correlational
SD = 1.04) professionals (F (1,115) = .00, p = .96). analysis also supports H6 regarding the relationship between
Although no effect of national culture on utilitarian ori- utilitarian orientation and ethical decision making. As
entation was found, overall, the data suggests that profes- expected, rule utilitarian orientation was positively related to
sionals are more likely to provide rule-utilitarian ethical decision making (r = .50; p \ .01), and act utilitarian
reasonings (M = 2.48, SD = .95) compared to act utili- orientation showed the opposite effect (r = -.69; p \ .01).
tarian reasonings (M = .96, SD = .99) when making eth- In H7, utilitarian ethical orientation is a proposed
ical decisions. mediator of the relationship between cultural values and
Regarding H3, MANOVA analysis revealed that differ- the outcome ethical decision making. Based on the corre-
ences in behavioral choices for the five ethical dilemmas were lation results discussed above, we identified two sets of
not explained by the national culture of respondents (Pillai’s variables suited for mediation analyses and a test of H7.
Trace = .94; F (5,110) = 1.45, p = .21). In Table 3, a Both universalism and doing values were significantly
comparison of the average decision ratings for U.S. and Puerto related to act utilitarian orientation and ethical decision
Rican groups within each dilemma reveal that their means making, and therefore were included in the first mediation
varied by less than .5 on four of the five vignettes. A series of analysis. Only universalism was significantly related to rule
one-way ANOVA tests showed no significant group differ- utilitarian orientation and ethical decision making, so they
ences across any of the 5 ethical dilemmas, although the effect were included in the second mediation analysis. Two
in vignette 5 was marginally significant (F (1,114) = 3.48, covariates, sex and age, were controlled for in these anal-
p = .06). Table 3 also includes the results of a separate one- yses. The correlations in Table 4 show that sex was

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272 L. Y. Fok et al.

Table 4 Correlations between main study variables and covariates

Variables M SD 1 2 3 4 5 6 7 8 9

1. Sex .55 .50 –

2. Age 35.26 9.16 .13 –
3. Doing 4.42 .42 .00 -.19* (.88)
4. Individualism 3.91 .46 -.25** -.04 -.04 (.85)
5. Long term 4.66 .65 .02 .14 .03 -.03 (.72)
orientation
6. Universalism 5.08 .65 .11 .18 .06 .11 .11 (.92)
7. Rule utilitarian 2.48 .95 .01 .25** -.16 .01 -.14 .25** –
8. Act utilitarian .97 .99 -.14 -.18 .19* -.05 .08 -.24** -.58** –
9. Ethical DM 7.70 1.45 .01 .20* -.30** .05 -.03 .20* .50** -.69** –

When available, scale reliability is included in parentheses on the main diagonal

N = 116
* p \ .05; ** p \ .01

Table 5 Mediation analysis for values, act utilitarian orientation, and ethical decision making
Variables Outcome: ethical decision Outcome: act utilitarian Outcome: ethical decision
(without mediator) orientation (with mediator)
B SE b B SE b B SE b

Covariates
Sex -.08 .26 -.03 .21 .18 .11 -.28 .20 -.10
Age .02 .01 .11 -.01 .01 -.09 .01 .01 .05
Values
Universalism .43 .20 .19* -.34 .14 -.23* .11 .16 .05
Doing -.99 .31 -.29** .44 .21 .19* -.58 .24 -.17*
Mediator
Act utilitarian – – – – – – -.95 .10 -.65**
F (4,111) = 4.75** F (4,111) = 3.77** F (5,110) = 23.38**
R2 = .15 R2 = .12 R2 = .51
2 2
DR = .11** DR = .08** DR2 = .37**
DR2 based on values from the full and covariate-only models
N = 115
* p \ .05; ** p \ .01

significantly related to only one other variable, the uni- bootstrapping method. Regression results from the mediation
versalism value (r = -.25, p \ .05). Age, on the other analysis are presented in Table 5. Initially, we confirmed that
hand, was significantly related to the doing value (r = the independent variables were significant predictors of the
-.19, p \ .05), rule utilitarian orientation (r = .25, criterion. The model without the mediator included was sig-
p \ .05), and ethical decision making (r = .20, p \ .05). nificant (F (4,111) = 4.75, p \ .01), and both values, uni-
In general, older professionals were less likely to be do-ers, versalism (b = .19; p \ .05) and doing (b = -.27; p \ .01),
but more likely to play by the rules and make ethical remained significant after controlling for the covariates. The R2
decisions compared to younger professionals. was .15; the addition of universalism and doing significantly
To test whether rule utilitarian orientation mediates the improved this value (DR2 = .11, p \ .01) from that observed
effects of universalism and doing on the outcome ethical in the covariates-only model.
decision making, we used the technique described in Preacher The next step to establishing mediation requires that the
and Hayes (2004). This technique follows the initial steps of independent variables significantly predict the mediator.
the Baron and Kenny’s (1986) procedure. The indirect effects Here, the model that includes the outcome act utilitarian
of the independent variables were estimated via the orientation was significant (F (4,111) = 3.77, p \ .01); the

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Cultural Values and Ethical Decision Making 273

Universalism .19* (.05)

confidence. The indirect effect is significantly different from
zero (p \ .05) because zero is not included in the interval.
-.23* The results for the second planned mediation analysis
Ethical
Act Utilitarian -.65** Decision between universalism, rule utilitarian orientation and ethi-
Orientation Making
.19* cal decision making did not support H7. The analysis did
not meet the first step requirement for a significant rela-
Doing -.29* (.17*)
tionship between the independent and dependent variables.
After controlling for the covariates, universalism was not a
Fig. 1 Standardized regression coefficients for universalism and significant predictor of ethical decision making (b = .16,
doing predicting ethical decision making mediated by act utilitarian
ethical orientation. The standardized regression coefficients between p = .08), although the overall model was significant (F (3,
the predictors and outcome ethical decision making controlling for act 112) = 2.60, p \ .05).
utilitarian orientation are in parentheses

Discussion
values universalism (b = -.23; p \ .05) and doing
(b = .19; p \ .01) remained significant after controlling In the area of ethical decision making in organizations, there
for the covariates. Finally, the R2 was .12, and, again, the is a growing emphasis on understanding why cultural dif-
addition of universalism and doing significantly improved ferences affect behavioral and decision choices (Ulrich and
this value (DR2 = .08, p \ .01) from that observed in the Thielemann 1993). To this end, based on data reported by
covariates-only model. working professionals in the continental U.S. and Puerto
Finally, mediation tests were performed by regressing the Rico, the evidence shows that one means through which
outcome ethical decision making on the following variables cultural values impact ethical decision making is via an
in this order: the covariates, the values universalism and indirect path mediated by the ethical orientation of decision
doing, and the mediator act utilitarian orientation (See makers. Although the current study considered only two
Table 5). The findings are modeled in Fig. 1. In support of types of utilitarian orientation, future research should
H7, evidence of mediation was found. The overall equation incorporate other ethical orientations that may be relevant to
was significant (F (5, 110) = 23.38, p \ .01), and, with an this process. Another contribution of this research concerns
R2 of .51, the predictors accounted for half the variability in the identification of key cultural values that predict the same
ethical decision making. The addition of universalism, utilitarian orientation previously linked to ethical decisions
doing, and act utilitarian orientation significantly improved made in business contexts (Fritzsche and Becker 1984).
this value (DR2 = .37, p \ .01) from that observed in the Specifically, two cultural values, universalism and activity
covariates-only model. orientation, directly influenced a person’s use of act utili-
Act utilitarian orientation’s inverse relationship with ethi- tarian orientation in the ethical decision making process. The
cal decision making remained significant even while con- findings suggest that cultural value differences do indeed
trolling for universalism and doing (b = -.65, p \ .01). lead to different ways of conceiving and thinking through
Most importantly, the relationship between universalism ethical dilemmas (Goodwin and Goodwin 1999).
and ethical decision making was non-significant in this Generalization of the results from this U.S.-Puerto Rico
analysis (b = .05, p = .50) compared to the results for the comparison to comparisons between the U.S. and other
no-mediator model (b = .19, p \ .05). Furthermore, based countries with Hispanic cultures is likely given that
on the test of the .33 estimated indirect effect, act utili- between group analyses revealed Puerto Rican values are
tarian orientation significantly mediates the effect of uni- different from U.S. values and they are more aligned with
versalism on ethical decision making. The true indirect values typically found in Hispanic cultures. Significant
effect is estimated to lie between .11 and .55 with 95 % cultural value differences between the two groups were
confidence. Because zero is not included in this interval, found for three of the four values examined including
we conclude that the indirect effect is significantly different individualism, time orientation, and activity orientation.
from zero (p \ .05). The values of Puerto Rican professionals were consistent
The results regarding the doing value indicate mediation as with that expected in Hispanic cultures; they were more
well. The inverse relationship between doing and ethical collectivistic and short-term oriented, and more likely be-
decision making remained significant in this analysis, but had a ers than do-ers compared to U.S. professionals.
substantially reduced beta weight (b = -.17, p \ .05) com- Although a debate persists about whether ethical deci-
pared to that in the no-mediator model (b = -.29, p \ .01). sions are driven more by individual or situational factors,
The indirect effect was estimated at -.42, and the true indirect these results confirm the influence of individual differences
effect is estimated to lie between -.08 and -.77 with 95 % like personal values. Activity orientation was the only

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274 L. Y. Fok et al.

value that showed significant between group differences personal values and organizational values, respectively. A
between U.S. and Puerto Rican professionals, and signifi- recent stream of research in business ethics asserts that
cantly affected ethical decision making at the individual organizational values and personal values (rooted in
level of analysis. In general, do-ers utilized an act utili- national culture) do not exert the same type of influence on
tarian orientation more often and were consequently less the ethical decision making process (Karande et al. 2002;
likely to make ethical decisions compared to be-ers. The Marta et al. 2012; Singhapakdi et al. 1999), and that
doing aspect of activity orientation has not received as organizational values represent the primary influence. For
much attention as other cultural values like individualism example, Marta et al. (2012) found evidence that organi-
or long-term orientation in ethics literature. Future ethics zational values directly affect ethical intentions and that
research that involves Hispanic cultures should definitely personal moral philosophies moderate this relationship.
incorporate this often overlooked cultural value. The lack of national cultural differences occurs because
The cultural value universalism also was related to members of multinational enterprises are generally
ethical decision making and act and rule utilitarian orien- required to follow corporate ethics policies when making
tations, although its relationship with the latter was only business decisions regardless of their own personal values
marginally significant (p = .06). Universalism was also and national culture. Given that international organizations
directly related to age, and once age was controlled for, have been characterized by a number of ‘‘hypernorms’’
universalism was no longer a significant predictor of ethi- producing similar forms of business ethics (Donaldson and
cal decision making. Thus, the usefulness of this cultural Dunfee 1999), individuals do not have to necessarily work
value in this context is not certain. for the same multinational to be exposed to similar codes of
Significant effects of cultural values on ethical decisions ethics and organizational values. The impact of organiza-
were observed only at the individual level of analysis; no tional culture on business ethics may be more difficult to
significant between-group differences were observed on assess when a group includes individuals who work for
utilitarian ethical orientation or ethical decision making. different organizations, or for individuals who are members
Contrary to O’Fallon and Butterfield’s (2005) conclusion of more than one organization, both of which are issues in
that nationality does affect ethical decision making, the the current study. Many business professionals work while
findings suggest that, among these two groups, national pursuing degrees in higher education and, therefore, are
culture does not lead to distinguishable differences in the subject to two sets of ethical codes of conduct and orga-
decision making process. One possible explanation is that nizational values from work and school.
the cultural differences that have distinguished Puerto Given that the professionals in these two samples were
Rico’s unique culture from traditional U.S. culture are completing an EMBA program that had the same univer-
being minimized as the cultural gap closes. Also, although sity-level codes of conduct and academic policies, this may
clear cultural differences exist, the legal environments of have impacted our null findings when comparing U.S. to
both places are determined by the same set of U.S. laws. Puerto Rico on ethical outcomes. Unfortunately, we lack
Differences in business ethics across cultures may be more complete data regarding the organizations for which par-
likely when both cultural and legal environments vary. ticipants worked which would have allowed us to calculate
Future research concerning Hispanic and traditionally the number of participants working for multinationals. In
Western cultures, in business ethics or not, should include addition, because organizational values were not included
national cultures that are more distinct than Puerto Rico in this study, we were unable to examine this as an
and the U.S. Clearly these two cultures could be differen- explanation for the lack of effect of national culture. Future
tiated based on specific cultural values, but this may have research in this area should include measures of corporate
not been different enough to lead to distinct ethical deci- ethical values and consider study designs that allow the
sions detectable at the national level. organizational culture to be held constant.
As an alternative explanation, a lack of between-group Ethical decisions are commonly operationalized and
national culture differences may be observed if members of analyzed as people’s intentions regarding single-episode
both populations work for multinational enterprises that decision situations, and is less often indicated in terms of
have the same or similar organizational values, and mem- broad patterns of ethical decisions over time and across
bers defer to those values when making decisions. In Hunt situations. There are advantages and disadvantages to both
and Vitell’s (1993) ethical decision making model, indi- operationalizations of ethical decision making, depending
vidual-level factors like personal values are coupled with on the research goal. For researchers who want to identify
corporate-level organizational values to produce an addi- situational factors that affect when a given ethical decision
tive effect on the decision maker’s perception of an ethical will be made, then disaggregate, single-episode behavioral
dilemma. This implies that national culture and organiza- measures are best to isolate the conditions in which a
tional culture operate on the same level as drivers of certain behavior or outcome is likely to occur. In contrast,

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Cultural Values and Ethical Decision Making 275

if the goal, like in the current study, is to estimate the Appendix A

influence of stable individual-level variables like culture-
based personal values on ethical decisions, then those Scenario 1: Rollfast Bicycle Company
relationships are more likely to be observed when using an
aggregate measure of ethical decision making. This follows Rollfast Bicycle Company has been barred from entering
the logic of Epstein (1979) who argued that meaningful the market in a large foreign country by collusive efforts of
associations between stable individual characteristics and the local bicycle manufacturers. Rollfast could expect to
behavioral outcomes are more likely to be observed when net 5 million dollars per year from sales if it could pene-
the behaviors are aggregated over time or across situations. trate the market. Last week a businessman from the foreign
Single incident behaviors or outcomes are susceptible to country contracted the management of Rollfast and stated
more sources of error than aggregate measures that capi- that he could smooth the way for the company to sell in his
talize on measurement reliability and are, thus, more likely country for a price of $500,000. If you were responsible,
to show behavioral stability. what are the chances that you would pay the price?
In this effort, we aggregated the ethical decision ratings
Decision Would you pay the price of $500,000?
across the five vignettes and we calculated the total number
question Enter a number between 0 (definitely
of decision reasons provided by a participant that reflected
would not) and 10 (definitely would)
act or rule utilitarian orientations. In contrast to previous
Decision What is the reason for your choice in the
findings that moral reasoning patterns differ from issue to
justification question above?
issue (Jones 1991; Weber 1990, 1996), the current findings
suggest that certain cultural values are associated with a
tendency to utilize or apply the same type of ethical theory Ethical Response options
when making a decision. Future research should examine orientation
the predictive validity of individual and situational vari-
ables when ethical decision making is measured at an Rule Such a payment is illegal
utilitarian
aggregate or disaggregate level.
Act utilitarian Such a payment hurts no one
Act utilitarian Such a payment depends on a middleman who may
Limitations not be trustworthy
Act utilitarian Such a payment is an acceptable practice in other
Limitations to this research are several. Regarding ethical countries
decision making, we measured behavioral intentions rather Rule Such a payment is unethical—a bribe
than actual behavior. One advantage to measuring inten- utilitarian
tions rather than real-world behavior is that it standardizes Rule Such a payment is against company policy
the context by removing consequences of the decision and utilitarian
social influences like peer pressure. However, hypothetical Act utilitarian Such a payment is not unethical, it is just the price
paid to do business
decisions lack real world consequences and may not be
wholly representative of what business professionals would
do on the job.
Another limitation is the small sample size, and the Scenario 2: Bill Smith
number of countries considered is limited to two, as we
have only the U. S. and Puerto Rico, which are arguably Bill Smith has recently accepted a job with a young, vigorous
not even two countries. Thus, it may be difficult to say with microcomputer manufacturer. Microcomputer manufacturers
any degree of certainty that cultural characteristics of the are engaged in intense competition to become the first on the
two regions within the U. S. are responsible for ‘‘national’’ market with a software package that utilizes the English lan-
differences in ethical decision-making processes. Clearly, guage and thus is easily used by the average customer. Smith’s
we did not test all possible cultural values, and there cer- former employer is rumored to be the leader in this software
tainly could be others that impact the ethical decision development. When Smith was hired he was led to believe his
making process. Finally, it is also possible that the selection was based upon his management potential. The morn-
respondents to the surveys altered their responses on the ing beginning the third week on the new job, Smith received the
basis of the fact that ethical behavior is laudable or following memo from the president: Please meet with me
expected: they may have altered responses based on what tomorrow at 8:15 for the purpose of discussing the develop-
they thought people would believe is the right thing, rather ments your former employer has made in micro-computer
than what they themselves would or would not do in any software. If you were Smith, what are the chances you would
given situation. provide your new employer with the software information?

123
276 L. Y. Fok et al.

Decision Would you provide your new employer

Ethical Response options
question with the software information? Enter a orientation
number between 0 (definitely would not)
and 10 (definitely would) Act utilitarian Approving the request reflects that the equipment
would be installed if available; that it is not
Decision What is the reason for your choice in the available is not their fault
justification question above? Act utilitarian Approving the request will cause minimal harm to
the environment
Act utilitarian Approving the request brings with it a too-high risk
Ethical Response options of getting caught with resulting negative
orientation consequences
Act utilitarian Approving the request provides a large potential gain
Rule It is unethical for the president to request this with low risk
utilitarian information
Rule Approving the request is illegal
Act utilitarian Smith should provide some but not all information utilitarian
Act utilitarian Smith should keep his job Justice Approving the request is negative for the
Rule It is unethical for Smith to provide this information environment/life
utilitarian
Act utilitarian Smith should be loyal to his employer
Moral rights It was unethical for the employer to mislead Smith
when he was hired
Scenario 4: J&P Publishing Company
Rule Smith should base the decision on whatever non-
utilitarian competition or security agreements are in force
Rule Smith should protect his reputation Ted Jones, senior editor of J&P Publishing Company, has
utilitarian just received a manuscript from one of his most successful
authors. It provides the most authoritative account yet
published of the history of the development of the atomic
bomb. However, the final chapter contains a detailed
description of how the bomb is made. Jones has tried to
Scenario 3: Master Millers Company
convince the author to omit the last chapter stating that
such information should not be made readily available to
Master Millers Company had developed a special milling
the mass market in paperback form. The author believes
process which yields a wheat flour which when used for bread
the chapter is critical to the success of the book and thus
provides a lighter, more uniform texture than conventionally
will not agree to its deletion. If you were Jones, what are
milled wheat flour. Unfortunately, the process gives off more
the chances that you would publish the book?
dust than the emission control equipment presently installed
can handle and still maintain emissions within legal limits. Decision Would you publish the book? Enter a
Emission control equipment will not be available for at least question number between 0 (definitely would not)
2 years, so the company cannot install it now. However, if the and 10 (definitely would)
company waited 2 years to introduce the new process, com- Decision What is the reason for your choice in the
petitors would very likely beat it to the market. The general justification question above?
manager wants to use the new process during the third shift,
which runs from 10 p.m. to 6 a.m. By using the process at that
time, the new flour could be introduced and the excess pol-
Ethical Response options
lution would not be detected due to its release in the dark. By orientation
the time demand becomes great enough to utilize a second
shift, new emission control equipment should be available. If Act utilitarian Those who want the information can get it now from
other sources
you were responsible, what are the chances you would
Rule Publishing the book may be detrimental to the
approve the general manager’s request?
utilitarian company’s image
Decision Would you approve the general Rule Publishing the book is too dangerous to world safety
question manager’s request? Enter a number utilitarian
between 0 (definitely would not) and 10 Act utilitarian Jones does not have the responsibility to make this
choice
(definitely would)
Rule Publishing may have legal ramifications
Decision What is the reason for your choice in the
utilitarian
justification question above?

123
Cultural Values and Ethical Decision Making 277

Scenario 5: Jack Ward Ala, M. & McGuire, S. J. J. (2005). Conflict management preferences:
A study of Iranians, Americans, Chinese, and others. In
Proceedings of the 3rd International Management Conference,
Jack Ward is working in product development for an auto 20–22 December, Tehran, Iran.
parts contractor. Ward’s firm received a large contract last Alas, R. (2006). Ethics in countries with different cultural dimensions.
summer to manufacture transaxles to be used in a new line of Journal of Business Ethics, 69, 237–247.
front wheel drive cars which a major auto manufacturer plans Amba-Roa, S. C. (1993). Multinational corporate social responsibil-
ity, ethics, interactions, and third world governments: An agenda
to introduce in the near future. The contract is very important for the 1990s. Journal of Business Ethics, 12, 553.
to Ward’s firm, which has recently fallen on hard times. Just Barnard, C. I. (1938). The functions of the executive. Cambridge:
prior to obtaining the contract, half of the firm’s employees, Harvard University Press.
including Ward, had been scheduled for an indefinite layoff. Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator
variable distinction in social psychological research: Conceptual,
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