Proceedings of Global Business and Finance Research Conference
5-6 May, 2014, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-50-4
Confused and Conflicting Awareness of Business Ethics?: The
Case of Australian Business
John Douglas Thomson, Michael John Segon and Chris Booth
This paper’s motivation is to investigate ethical issues that have recently attracted
interest and public scrutiny. Our survey of a sample of 87 practicing Australian
middle level managers gives new insight into these executives’ awareness of
unethical practices, whether they would offer a bribe, or accept an offer to engage
in unethical practices, and their reaction to a request or order from a senior
manager to engage in unethical practice. The very personal and unique nature of
the survey indicated a distinctive and contemporary contribution to the current state
of Australian business ethics. Most of the managers surveyed indicated they had
experienced unethical practices in their organization. Our survey highlights that
applied ethics practices in Australian business seem both confused and conflicting,
and unsystematic and inconsistent in application.
Key words: fraud, bribery, corruption, deviance, ethics
Field of Research: Management (Contemporary issues in management, business
ethics, e-commerce).
1.Introduction
It has been long argued that the adoption of formal codes of ethics can be a positive step
towards improving the ethical climate in business (Ferrell, Fraedrich & Ferrell 2011;
McKinney, Emerson & Neubert 2010; McKinney & Moore 2008, Richie, 1996; Segon 2010;
Segon & Booth 2009, Thomson, 2014). Shaw and Barry (1995) identify that the purpose of
codes of ethics and or conduct is to improve the organizational climate so that employees
can behave ethically. Adams and Tashchian (2001) suggest that ethical controls, such as
codes, are necessary in organizations because legal systems and market conditions do
not necessarily lead to behaviour and decisions in organizations which take into account
the moral impacts of business action. Adams and Tashchian (2001) suggest that codes
can also be seen as an attempt to introduce professional standards to an organization
similar to those that apply to professions such as medicine and law. An analysis by Ford
and Richardson (1994) specifically examined strategies of enculturating ethics within an
organization that included codes, rewards and sanctions, size and industry type. They
concluded that the existence of a code of ethics, combined with sanctions designed to
reinforce the code, tend to have an influence on an individual‟s ethical decision-making.
The moral development of most adults indicates that their judgements of what is right or
wrong are substantially influenced by rules and laws (Trevino & Nelson 2006; Kohlberg &
Kramer 1969). 51% of the codes of ethics studies support the effectiveness of codes in
positively shaping behaviour, 33% yield insignificant results, 14% mixed results, and one
study found that a code had a negative impact on behaviour (Kaptein & Schwartz 2008). It
has been argued that legal and regulatory systems cannot be sufficiently detailed to
_______________
John Douglas Thomson, GSBL, RMIT University, 405 Russell St, Melbourne.
Email: doug.thomson@rmit.edu.au
Michael John Segon, GSBL, RMIT University, 405 Russell St, Melbourne.
Email: michael.segon@rmit.edu.au
Chris Booth, GSBL, RMIT University, 405 Russell St, Melbourne.
Email: chris.booth@rmit.edu.au
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Proceedings of Global Business and Finance Research Conference
5-6 May, 2014, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-50-4
anticipate every conceivable situation within which unethical behaviour might take place
nor likely to evolve fast enough to keep up with that of the constantly changing business
environment (Den Nieuwenboer 2008). Expecting or even demanding all behaviour be
regulated would be suffocating for business activity and costly for individual business to
monitor and comply with regulations that are not directly relevant to their specific business
conditions (Sanyal & Guvenli 2009; Den Nieuwenboer 2008). According to Long and
Driscoll (2008) the strategic use of codes of ethics may not be associated with a sincere
intention to promote ethical behaviour internally.
The purpose of this paper is to examine the knowledge and attitudes of a representative
sample of middle level Australian managers of global businesses with respect to business
ethics such as fraud, bribery and corruption to provide contemporary and unique insights
from the analysis.
The paper first introduces business ethics influences such as codes, then provides a
literature review describing the impact on business ethics of business culture, relationship
building, denial of responsibility and social identity theory. A primary survey data collection
method is then used to collect data from mid level managers. The survey data was
analysed to provide unique and contemporary conclusions of the respondent‟s awareness
of unethical practices, their views on bribery and corruption, reactions to being offered a
bribe and being asked for a bribe, and their awareness of unethical practices. This is
followed by original conclusions which contribute to the body of knowledge, and future
research projections.
2. The impact of culture
Pedigo and Marshall (2009) found that globalization has seen diverse cultures becoming
increasingly entwined and interdependent, as business organizations operate in a
borderless world (Hofstede 2001). De George (2010, 1993) highlights inevitable ethical
dilemmas facing managers in cross cultural settings - these include pressure on
individuals to violate personal and cultural norms of their own country when confronted
with host country ethical values and practices. Adams and Tashchian (2001) found that
organizations need formal mechanisms to inform their agents as to required behaviour,
from a legal perspective and to protect the organization in the event of one of its agents
acts illegally. Donaldson and Dunfee (1999:47) identify that „the importance of cultural
differences in business are highlighted by Kluckhorn, Hofstede, Hamden-Turner and
Trompenaars, yet the ethical implications remain largely unexplored‟. National culture can
influence how actions may be construed as corrupt or not corrupt, due to differences in
perceptions and etiquette. This is consistent with Hofstede (2001) who distinguishes
between cultural values and cultural practices, suggesting that national cultural differences
can be identified according to values and to a minor extent, variations in practices. House
et al. (2004) also distinguish empirically between cultural values and practices. Maingot
(1994) stated that participants in acts of corruption may be influenced by cultures and
cultural value systems that may endorse, rather than condemn, such activities. Because
of the existing social structures of some nations, there may exist a propensity to resort to
corrupt practices to achieve socially approved goals (cited in Beets 2004:67). Falkenberg
(2004:18) claims that it is only when organizations operate at a global level that business
decisions will be “beneficial and sustainable in the long term”. Business professionals
employed at firms with ethical codes of conduct are significantly less accepting of ethically
questionable behaviour towards most stakeholders … except to ethical actions toward
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Proceedings of Global Business and Finance Research Conference
5-6 May, 2014, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-50-4
customers. Customers are the lifeblood of an organization and their loyalty and referrals
are based on trusting relationships (Piercy & Lane 2007) Research indicates that instead
of insisting that the „customer is always right‟ organizations may be well served to make it
explicit that the customer is always treated right (Payne & Joyner 2006). Results indicate
that codes of ethics in general seem to have less of an impact on interactions with
customers, yet ethical breaches by business agents with customers can have disastrous
effects on the business (Mc Kinney, Emerson & Neubert 2010).
3. Global Relationship Building
Mirwoba (2009) suggests relationship building that deviates from the traditional
approaches described in the business ethics literature can perhaps be a long-term
strategy to be adopted by management executives to prevent the occurrence of ethical
dilemmas in international business. The general relationship building approach considers
partner interests, incorporates building trust with counterparts, maintaining an ethical
reputation and establishing relationships (Svensson & Wood 2004; Thompson 2002).
Mirwoba (2009) advocates an approach among stakeholders from different cultures is
through mutual understanding for global business organizations to base their ethical
decisions on norms, which although not yet universally valid, are acceptable to all parties
with vested interests. As in dialogic theory (Nills & Schultz 1997), real communication
between stakeholders is to generate common norms to arrive at what is acceptable to all
participants based on principles of universality, universal ordinances of ideal dialogue,
universal objectives and the principle of responsibility. The irony of the ethical process is
the implementation level where organizations have freedom to make decisions that are
based on the principle of self-regulation (Donaldson & Dunfee 1994). Relationship
building and developing understanding at the individual level is preferable to creating
general global codes of conduct and guidelines (Thompson 2002; Beauchamp & Bowie
2001; Donaldson & Dunfee 1994; De George 1993; Dobson 1990).
4. Denial of Responsibility
Ashford and Anand (2003) identify a range of factors that individuals use to rationalise
corrupt behaviour. Denial of responsibility involves actors engaged in corrupt behaviours
perceiving that they have no other choice than to participate in such activities, that it is a
necessary aspect of their activities. These individuals rationalize that they are entitled to
indulge in corrupt behaviours because of their accrued credits (time and effort) in their jobs
for which they are not directly financially renumerated. Palmer (2008) suggested that
systematic corruption was linked to the collective processes of organizations reflected in
the structure, culture and social practices of the organization. Spicer (2009) in an analysis
of the literature on normalisation of corruption affirms the research of Palmer (2008) and
Ashford and Anand (2003) that organisational systems, culture and socialisation
processes support the take up and embeddedness of corrupt practices in organizations.
5. Social Identity Theory
Den Nieuwenboer and Kaptein (2008) applying Social Identity Theory argue that
corruption in organizations spreads and grows via downward organizational spirals,
namely, a spiral of divergent norms in which organization members and units within an
organization depart from espoused organizational norms; pressure to comply with corrupt
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Proceedings of Global Business and Finance Research Conference
5-6 May, 2014, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-50-4
practices in use; and opportunity in seeking out arenas for corrupt practice. Carmichael
(1995) considers a rationale for corporate corruption in the international context and
suggests that there are reasons corporations, through their corporate agents, pursue
corrupt practices and bribery. First, corporations perceive bribery as the business norm in
the country in order to get successful business transactions. Second, even though they
may identify such acts as morally wrong, they do it because other corporations also do it.
Finally corporations desperate for business and under pressure may choose unethical
practices to obtain business for financial success. Much attention has been placed in the
past decade on the relationship of the ethical climate within the organization impacting on
the individual. Fritzcshe (2000) considered the impacts of ethical climate and the ethical
dimension of decision-making in organizational settings. Peterson (2002) applying the
Victor and Cullen „Ethical Climate Questionnaire‟ (1988) found that in terms of ethical
climate affecting behaviour, a code of ethics for an organization was associated with less
unethical behaviour compared to organizations without a code of ethics. The results of this
research on impacts of ethical climate replicate the key findings of Trevino, Butterfield and
McCabe (1988).
6. Method
A primary survey data collection method was used to obtain information based on the
questioning of respondents. The instrument was developed to analyse the attitudes of mid
level managers to concepts in business ethics and issues related to corruption and in
practices of bribery. A formal questionnaire was prepared and the questions asked in a
pre-arranged order (Creswell, 2003, 1998). The survey instrument was designed with
series closed questions applying a five point Likert scale (Denzin & Lincoln, 2000;
Sarantakos 1993). The questionnaire was administered to a total population of 87
practicing managers from a diverse range of private and public organizations located in
Australia and operating trans-nationally. This represented the population for the survey. A
response rate of 60% was achieved.
7. Awareness of unethical practices
To the question, „Have you ever been aware of unethical practices in your organization?‟
74.25% of respondents confirmed that they had experienced unethical practices, whilst
22% responded that they had no experience of unethical practice in their organization.
Although the nature of type of practice and consistency/regularity of practice was not
accounted for with a further open ended question in the survey to identify the degree of the
unethical practice, the high response to experience of the practice is of concern. This
would indicate that for this sample, unethical practice is a common feature encountered in
most contemporary organizations by mid level practising managers. This presents a
disturbing insight if extrapolated to Australian mid-level managerial experience of unethical
practice in organizations.
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Proceedings of Global Business and Finance Research Conference
5-6 May, 2014, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-50-4
Table 1: Attitudes to concepts of honesty, integrity, fairness and the ability to make ethical
decisions.
Concepts such as
honesty, integrity, fairness
and the ability to make
ethical decisions
Response
Strongly
Agree
Response
Agree
Response
Disagree
9.5%
Respons
e Neither
Agree
Nor
Disagree
27.8%
32.8%
Respon
se
Strongly
Disagre
e
18.8%
- are not necessary and a
possible impediment to
effective
business
decision-making.
- are learned early in life
and cannot be changed in
adulthood.
are
an
important
managerial capability that
most
managers
have
already developed.
- are important managerial
capabilities that need to be
learned and understood.
11.1%
12%
11.9%
31.3%
41.9%
2.9%
10.5%
41.9%
23.8%
17.9%
5.9%
73.6%
14.8%
5.9%
2.8%
2.9%
In the final question (Table 1), over 85% of respondents agreed or strongly agreed that the
concepts of honesty, integrity, fairness and the ability to make ethical decisions are
important managerial capabilities and need to be learned and understood. From this, there
appears to be a need for education in better understanding business ethics concepts and
practice. This does not deny these managers have achieved a certain adult moral
development at the conventional level in which judgements of right or wrong are
substantially influenced by rules and laws (Trevino & Nelson 2006; Trevino 1986; Kohlberg
& Kramer 1969). The critical issue is the level of complexity and competing values
operating in the contemporary Australian organizational context where a multi cultural
populace embraces global business connectivity in imports and exports across a range of
goods, commodities and services. In such a business milieu, managers may experience
decoupling from critical organisational ethical norms (Den Nieuwenboer 2008). At the
cross cultural level, acts of corruption may occur influenced by business partner cultural
value systems (Donaldson & Dunfee 1999; Maingot 1994; De George 1993).
8. Views on bribery and corruption
Table 2 outlines responses to a series of questions on bribery and corruption. Nearly 90%
of respondents agreed or strongly agreed with the statement that bribery and corruption is
a business practice whilst undesirable, is necessary in many situations. This implies that
respondents consider bribery and corruption as „necessary evils‟ in given situations, as
opposed to rejecting the concepts outright. The level of response confirms the rationale
for corporations taking part in corrupt practices posited by Carmichael (1995). It is also
supports Collins (1997) view that some employees believe that unethical activity is in the
company's best interests and is actually expected of them.
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Proceedings of Global Business and Finance Research Conference
5-6 May, 2014, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-50-4
Table 2: Views on bribery and corruption
Which statement best
describes your views on
bribery and corruption
Respons
e to
Strongly
Agree
Respons
e to
Agree
Response
to
Disagree
Respon
se to
Strongly
Disagre
e
12.3%
Respons
e to
Neither
Agree
Nor
Disagree
2.9%
- a business practice that
whilst
undesirable
is
necessary in many situations
- a practice that is wrong and
adds cost to the organization
- a practice that is not part of
normal business practice in
my country but necessary in
others
- a matter of choice for
managers and business
- a practice that exposes
individual managers to risk
76.5%
1.4%
6.9%
23.3%
51.8%
7.5%
2.9%
14.5%
22.1%
20.0%
16.4%
17.9%
23.6%
11.9%
7.4%
26.8%
17.9%
36.0%
33.3%
30.3%
18.2%
9.1%
9.1%
A comparison of responses in Table 2 to Questions 1, 2, 4 and 5 is interesting in
considering Den Nieuwenboer (2008) concept of „decoupling‟. The 90% agreement
response rate to question 1 affirms bribery and corruption as undesirable but necessary (to
do business). Yet 75% of respondents accept that the practice is wrong and can add costs
to businesses. As well as this 53% of respondents disagree with the statement that
managers and businesses have a choice in issues of bribery and corruption. These
managers view the practice of bribery and corruption as more of an expectation to pursue
acts of bribery and corruption rather than to exercise their own choice in such matters.
This has some connection to the work of Ashford and Anand (2003) in rationalising the
processes of corruption and bribery. Finally, 64% agree that practices of bribery and
corruption place managers at risk. This series of responses indicates a majority of
respondents are aware that bribery and corruption are unethical practices in business, are
costly to business and place individuals at risk yet indicate that these are necessary
practices (90% agreement) and disagree that there is choice in the matter (53% disagree).
From the perspective of Den Nieuwenboer‟s (2008) research it would appear that there is
decoupling between what these managers and their representative organizations espouse
in terms of values and what values in use underpin business activity. The results of these
questions are supported by research into the normalization of corruption in organizations
(Spicer 2009; Palmer 2008; Ashford & Anand 2003). This indicates that corrupt practices
can become behavioural norms within the culture and systems of an organization over
time.
Results for Question 3 in Table 2 indicate that 42% of respondents agreed or strongly
agreed that corruption and bribery is a practice that is not part of normal business practice
in my country but necessary in others. To this question 41% of respondents disagreed or
strongly disagreed with the statement. Agreement with the statement indicates that
managers perceive the influence of cultural relativism in matters of unethical business
practice (Dion 2010; Pedigo & Marshall 2004; Kohls & Butler 1994; Wicks, 1990).
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Proceedings of Global Business and Finance Research Conference
5-6 May, 2014, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-50-4
However disagreement does not necessarily confirm a view of ethical imperialism
suggesting supremacy of home nation ethical practices (Dawson & Garrard 2006;
Donaldson & Dunfee 1999) nor can it be interpreted as respondents confirming corruption
and bribery are normalised practices in Australia and abroad.
9. Reactions to being offered a bribe
Table 3 considers behaviours of managers in relation to being offered a bribe. The first
group of responses indicated that 89% of the respondents agreed/strongly agreed that
they would politely decline indicating that it was not necessary. Some 8% of respondents
though, indicate that they disagree with the response „I would politely decline indicating
that it was not necessary‟. The situation changes with the next response group. 74% of the
respondents agreed/strongly agreed that, on being offered a bribe, they would seek advice
from management as to the appropriate action. With the previous response in which the
manager alone makes the choice to politely decline the bribe, 77% strongly agreed with
the statement yet only 24% of managers strongly agree with seeking advice from a
manager or the organization as to the appropriate action.
Table 3: Reactions to being offered a bribe
Which statement best
describes how you would
react to being offered a bribe
Respons
e to
Strongly
Agree
Respons
e to
Agree
Response
to
Disagree
Respon
se to
Strongly
Disagre
e
12.3%
Respons
e to
Neither
Agree
Nor
Disagree
2.9%
I would politely decline
indicating that it was not
necessary
I would seek advice from my
manager/organization as to
the appropriate action
If the bribe were of minimal
value I would accept so as to
not offend.
I would accept the bribe if it
were to jeopardize gaining
the business
I would accept the bribe if it
were to jeopardize gaining
the business and report it to
my organization.
76.5%
1.4%
6.9%
23.3%
51.8%
7.5%
2.9%
14.5%
6.1%
3.3%
28.4%
8.9%
53.3%
30.3%
10.0%
7.0%
24.0%
28.7%
8.0%
8.6%
26.7%
23.1%
33.6%
It seems that managers are more comfortable determining refusal of a bribe than referring
the bribe to their manager or organization by a ratio of three to one. The situation here
requires further questioning and analysis to identify what issues underpin the responses.
A level of distrust between the respondents and their organization could exist due to a
spiral of divergent norms in the organization (Den Nieuwenboer & Kaptein 2008). Further,
the ethical climate in the organization may not adequately support mid level managers in
these situations (Peterson 2002; Fritzcshe 2000).
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Proceedings of Global Business and Finance Research Conference
5-6 May, 2014, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-50-4
In the next response group the interesting feature to the question „If the bribe were of
minimal value I would accept so as to not offend‟, was not so much the 53% who strongly
disagreed as was the 29% who neither agreed nor disagreed - perhaps the „minimal
value‟, „not offending‟ and cultural issues such as Eastern face saving sensitivities and
Western embarrassment may have impacted responses (Hofstede, 2001; Hofstede &
Hofstede, 2005).
10. Reactions to being asked for a bribe
Table 4 deals with questions relating to managers views on offering or being asked to
provide bribes. To the statement „I would decline on a personal basis believing bribery to
be wrong‟, 86% of respondents agreed. To the second statement „I would decline if my
company had a strict policy on bribery‟, presents a shift in responses 64% agreed with the
statement whilst the „disagreed/strongly disagreed‟ response of 21% was four times the
response rate to the previous statement regarding decline on a personal basis believing
bribery to be wrong. It would appear that managers value their own personal ethics above
company policies on matters of corruption. This is an interesting finding in light of research
on ethical climate of organizations with results indicating those organizations with clear
codes and systems have a more robust ethical climate than organizations lacking codes
(Peterson, 2008, Trevino et al. 1988). The higher „agree‟ and „strongly agree‟ response
rate for question 2 compared to similar Likert category responses for questions 3, 4 and 5
in Table 3 provide support for an interaction effect of maintenance and coupling as
strongly related to field centred deviance in crowding out field level norms such as bribery
(Den Nieuwenboer 2008; Frey 1998).
Some 12% of managers „agreed‟ or „strongly agreed‟ that they would offer a bribe „if it was
of minimal value and would facilitate the process‟. This is consistent with the response of
10% „agreed‟ or „strongly agreed‟ to the Table 3 statement regarding accepting bribes. It
would seem that 10% of managers in this sample are prepared to receive a bribe of
minimal value and offer a bribe of minimal value. It should be noted that 71% disagreed or
strongly disagreed with the proposition that they would offer a bribe if it was of minimal
value and would facilitate the process. It is therefore argued that this group of managers
seem to demonstrate universalist guidelines that transcend national boundaries and
cultural differences as argued by Segon (2010), Donaldson (1996) and Wicks (1990). The
results would also support the principles of relationship approach in ethics under an
international context through ideal dialogue between parties and responsibility (Pedigo &
Marshall 2009; Mirwoba 2009; Beauchamp & Bowie 2001).
For the final statement in Table 4, „I would find a way to not pay the bribe directly such as
arranging for an intermediary to handle such matters and have them invoice my
organization for administration/management fees‟, 16% of respondents indicated strongly
agree, 6% indicated agree, 18% neither agree nor disagree, 26% disagree and 34%
strongly disagree with the statement. 60% of the managers are in disagreement with this
process however 24% do agree or strongly agree with the process. Although a majority of
respondents reject the third party approach to delivering the bribe a quarter of respondents
consider it a as a reasonable reaction to being asked for a bribe. In this instance Collins
(1997) arguments regarding rationales for corrupt behaviour may have some ground or
Carmichael (1995) deviating from norms to ensure business is transacted.
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Proceedings of Global Business and Finance Research Conference
5-6 May, 2014, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-50-4
Table 4: Reactions to being asked for a bribe.
Which
statement
best
describes how you would
react to being asked for a
bribe
Respons
e to
Strongly
Agree
Respons
e to
Agree
Response
to Neither
Agree Nor
Disagree
Response to
Disagree
I would decline on a
personal basis believing
bribery to be wrong
I would decline if my
company had a strict policy
on bribery
I would offer a bribe if it
was of minimal value and
would facilitate the process
I would consult with my
manager and follow his/her
advice
I would find a way to not
pay the bribe directly such
as
arranging
for
an
intermediary to handle such
matters and have them
invoice my organization for
administration/managemen
t fees
78.1%
7.8%
7.8%
1.6%
Respon
se to
Strongly
Disagre
e
4.7%
24.3%
39.4%
15.2%
7.5%
13.6%
10.3%
1.5%
17.6%
23.5%
47.1%
24.7%
16.1%
24.7%
28.4%
9.9%
16.4%
6.0%
17.9%
25.4%
34.3%
11. Awareness of Unethical Practices
In Table 5, 60% of respondents disagree or strongly disagree with the proposition that „If
you were aware of unethical practices in your organization you would do nothing‟.
However, 25% of respondents agree or strongly agree that „do nothing‟ is the preferred
course of action. This would imply that for some managers the issue of alerting senior
management to unethical practices in an organization remains a sensitive issue. Lewis
(2008) found that in the UK over a ten-year period, protection for whistle blowers was
inadequate. The research related to ethical climates in organizations (Peterson 2008;
Fritzsche 2000; Trevino et al 1988) where internal norms are weak or institutional
maintenance is weak (Den Nieuwenboer 2008; Frey 1998; Weick 1976).
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Proceedings of Global Business and Finance Research Conference
5-6 May, 2014, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-50-4
Table 5: Reactions in response to unethical practices in your organization.
If you were aware of unethical
practices in your organization
would you:
Do nothing
Report the action to my
manager
or
superior
irrespective of an anonymous
reporting system
Report the action ONLY if the
organization
has
an
anonymous reporting system
Report the action to an
external body such as an
Ombudsperson or Government
Commission against corruption
Report
the
matter
anonymously to a newspaper
or TV journalist
Respons
e to
Strongly
Agree
Respons
e to
Agree
Respons
e to
Disagre
e
Respon
se to
Strongly
Disagre
e
11.1%
15.1%
Respons
e to
Neither
Agree
Nor
Disagree
15.3%
10.9%
13.9%
56.2%
12.5%
9.6%
47.2%
8.2%
23.5%
30.9%
20.6%
8.8%
16.2%
15.5%
26.2%
23.8%
20.2%
14.3%
10.3%
4.4%
7.4%
25.0%
52.9%
12. Conclusion
This paper confirms that unethical practices are evident in contemporary Australian
business environments, where of the 75% of mid-level managers surveyed, 74%
confirmed they had experienced unethical practices in their organizations.
Key
researchers in business ethics have confirmed over time that opportunities for corrupt
behaviour infiltrate organizations (Den Nieuwenboer 2008; Ashforth & Anand 2003; Spicer
2009). The survey responses confirmed that the surveyed managers have a confused and
conflicting awareness of critical concepts in business ethics and continue to be confronted
with ethical dilemmas in their business practice. These managers distrust external
agencies as well as internal „anonymous‟ organizational systems to report organizational
unethical transgressions preferring to report to their own managers.
From the
ambivalence of attitudes recorded in several sets of related questions Australian managers
appear ill equipped to systematically and consistently resolve potential and actual bribery
issues in their organizations. Based on these responses, evidence that organizations
though not wholly corrupt display evidence of unethical practices. Mirwoba‟s (2009)
relationship building through the development of mutual trust, honesty, respect, and
integrity appears to be a strategy influencing behaviour of managers concerning „being
offered‟ and „being asked‟ for bribes. Building relationships on an individual level was
deemed preferable to generalized codes of conduct, the latter being considered
inadequate in satisfying varying individual perspectives along with associated difficulties in
application and enforcement (Nil 1995).
Further research issues include refinement of the research questions to gain a deeper
level of insight into motives and to uncover some of the reasoning underpinning
responses. Face-to-face interviews or a series of supporting focus group samples would
assist gaining greater research depth.
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Proceedings of Global Business and Finance Research Conference
5-6 May, 2014, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-50-4
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