Lab File
Professional Ethics and Social Responsibility
[PFE-301]
Submitted to:
Department of CSE, ASET, AUUP
BACHELOR OF TECHNOLOGY
IN
COMPUTER SCIENCE AND ENGINEERING
Submitted By:
Guided by:
Pooja Choudhary (A2305220449)
Dr. Ram Paul
Srishti Garg (A2305220607)
Sayantika Biswas (A2305220622)
Lakshika Bhagat (A2305220326)
AMITY SCHOOL OF ENGINEERING AND TECHNOLOGY
AMITY UNIVERSITY UTTAR PRADESH
NOIDA-201301
Abstract
This review paper on ethical behavior aims to identify factors and variables which influences
ethical behavior. This study is divided into theoretical and empirical studies and its relevance
to theory. Identified variables are divided into individual factors, organizational and external
factors. Variables under these factors are locus of control, achievement orientation,
Machiavellianism as individual variable. Ethics training, code of ethics and rewarding system
are organizational variable. Competition, influence of stakeholders and regulation system are
external variables. This review provides insights to the future researchers who want to
research related to ethical behavior. This review also helps professionals to understand ethical
behavior in context of their organization to manage ethical aspects in to their organizations in
a better way.
Professional ethics plays a vital role in upholding the honesty, responsibility, and
credibility of individuals working in different professional fields. However, recent ethical
dilemmas have arisen, questioning the usefulness and effectiveness of current ethical
frameworks. This article extensively examines modern views on professional ethics,
incorporating various philosophical, social, and legal perspectives. It stresses the importance
of ethical decision-making, assesses the function of ethical codes, and scrutinizes the impact
of contextual variables on professional ethical practices. The analysis also identifies
significant challenges and possibilities for improving professional ethical practices in the
present age. Overall, this article offers a detailed comprehension of professional ethics that
can benefit professionals, educators, and researchers in navigating the intricate ethical
landscape of contemporary professional domains.
The paper also analyses a few major companies and their model of conduct and how
professional ethics have had a key role in shaping up the ideologies and work culture of the
people working there.
Introduction
Ethical behavior has been a cause of concern since very ancient time. Ethical behavior in
business practice has been developed continuously. In modern time, ethical behavior has been
looked as important aspect of the business success. There are lots of theoretical and empirical
studies which explain the factors and variables impacting the ethical behavior of individual in
the organization and hence their ethical decision making, ethical behavior is evidenced since
human civilization had been evolved. India is known as it has rich ethical tradition, which
envisioned in the scriptures of the land like Gita, Upnishad etc. Plethora of theoretical and
empirical studies is available on ethical behavior by many professional executives. These
have been drawn attention to the ethical approach of business. And today it is seen as a
distinct feature of any business.
There are a number of theories based on which most of empirical studies have been
evaluated, Cavanagh et al. (1981) have given utilitarian, theory of right and theory of justice,
all these theories and philosophies is different. Hunt and Vitell (1986) have given descriptive
decision making process. According to Gresham, Ferrel and Mclaves N. (2013), both
organizational and individual factors are drivers of ethical behavior. Fritzche and Becke,
(1984) link ethical behavior with normative theories of ethics, most of the empirical studies is
based on the Rest model of ethical decision. Since 1970 to 2013 there are four literature
review on ethical decision making is available, given by Ford and Richardson (1978), Terry
W. Loe, Linda Ferrell, and Phylis Mansfield 1992-1996, Fallen and Butterfield, 1996- 2003,
Jana.L.Craft 2004-2011, Kevin Lennert-Yung-Hwal Park, Nitish Singh (2013). Till date so far
researchers knowledge all this literature review moves around Trevino, Rest, and Jones
model. The purpose of this review is not to extend the previous literature review, instead to
assess those factors and constructs which have impact on ethical behavior and to find out
methodology, gaps of those studies, availability of theory and models in this regard. There is
number of theoretical and conceptual studies available which identified the nature of ethical
behavior the process and steps involving to reach to the ethical decision making. We review
the published literature on the factors on ethical behavior and evaluate its practicality. This
paper provides information about related factors, constructs on ethical behavior, discussion of
the gaps and findings have been provided.
Rationale
The translation of professional values and ethics into daily work practices is essential for
promoting ethical behavior and maintaining professional standards. Professional values and
ethics provide a framework for guiding behavior and decision-making in the workplace, and
they serve as a foundation for building trust and respect among colleagues, clients, and
stakeholders.
By translating professional values and ethics into daily work practices, individuals
and organizations can demonstrate a commitment to ethical conduct and build a culture of
integrity. This involves actively applying ethical principles and values in all aspects of work,
including communication, decision-making, and actions.
Moreover, translating professional values and ethics into daily work practices can
help prevent unethical behavior, such as conflicts of interest, dishonesty, and discrimination.
It can also foster a positive work environment where individuals feel respected, valued, and
supported, leading to increased job satisfaction and productivity.
Overall, the translation of professional values and ethics into daily work practices is
crucial for upholding professional standards and promoting ethical behavior. It can contribute
to the success of individuals and organizations, as well as the trust and respect of clients,
colleagues, and stakeholders.
Figure 1: Principles of Professional Ethics [1]
Basic Factors of Professional Ethics
In one article, one of the experts of this theory named Zionets considers the factors as basic
factors for professional ethics [2], which are:
Professional Independence of Scientific Ethics
This factor, like ethics in any other professional system, should reflect the internal norms of
the profession and the sense of moral commitment on the part of the professionals themselves
and their specialized institutions, rather than being imposed, accepted, or warned in the form
of moral dos and don’ts.
Professional Self-understanding
The basis of ethics is professional self-understanding. Only with an understanding of their
work and professional activity, its philosophy, and its relation to people’s lives, do they
achieve a moral understanding of it, and as a result, in their relationship with nature and the
world around them, an inner sense of commitment to it. They find values.
Objectivity, Neutrality, and Impartiality
One of the most important basic principles that is confirmed in most documents and topics
related to scientific professional ethics. Observance of objectivity and neutrality. A person
who applies professional ethics in his professional life is subject to objectivity and neutrality.
Going Beyond the Concept of Livelihood
As long as one is involved in physiological issues, attention to other issues will be less. The
meaning of professional ethics emerges through its concept of livelihood.
The Need to Promote Professional Ethics in the Organization
Organizational development is a continuous, coherent, and well-planned effort to improve
and modernize the system. The purpose of organizational development is to improve both the
(professional) life of the individual and the functioning of the organization. Given the
importance of professional ethics in the development of the organization, it is necessary to
determine the effectiveness and direction of resources to the extent of professional ethics
training in the organization. Role of Management in Inculcating Workplace Ethics
Management plays an essential role in inculcating workplace ethics in employees [3].
Theoretical Studies and Models on Ethical Behaviour
Review of existing theories and models evidenced that there are plethora of models and
theories available on ethical behavior. Ferrell and Gresham (1985) included individual and
organizational factors as contingency and argued that ethical dilemma emerges from the
social, cultural environment [4]. He related his model to existence of professional codes,
corporate policy, reward and punishment in his contingency frame. In general, theory of
marketing ethics showed that perceptions of ethical problems and consequences gone through
the deontological and teleological evaluation lead to ethical judgment and then intention tend
situational constraint affect the ethical behavior. The four components of ethical behavior,
Rest (1986) of behavioral process in which each component is distinct to each other, on the
basis of four component model [5], Trevino (1986) introduced person situation interactionist
model, he introduced individual and situational factor as moderated which impact moral
judgment to reach to the behavioral stage. As an individual factor he included ego strength
field and locus of control.[6]
As situational factors he included elements of immediate job context, organizational
culture and character of work. Dubinsky and Loken (1989) ethical decision making on
marketing was based on theory of reasoned action. Similar findings by (Aizen ad Fishbein
1980; Fishbein and Ajzen 1975; Fishbein, 1979). Dubinsky proposed a few factors which
influence ethical decision making in marketing i.e, behavioral and normative believes about
the evaluations of those outcomes and motivation to comply with reference, at the same time
in (1989) Ferrell, Gresham, and Fraedrich synthesis other model and developed a more
comprehensive five stage model of ethical decision [7]. Ethical decision-making process
passes from five stages, Awareness (of ethical issue), Cognition (stage of cognitive moral
development), Moral evaluation (Deontological evaluation and teleological judgment),
Determination and Action (ethical or unethical behavior and behavioral evaluation, feedback
loop which may be influenced by organization action opportunity, individual moderator,
which impact every stage of the process.
He integrated the component of Kohlberg, Ferrell and Greshan and Hunt and Vitell
and provides more informative view in which ethical decision making is affected by the
external (environment, peers, situation) as well as internal (moral value structure construct)
factors. After that most comprehensive Jones model (1991) was introduced. He introduced a
moral intensity as in his issue contingent model and he argues that moral intensity which is
the degree that people see that and issue as an ethical one influence every component of
moral decision making and behavior, element of moral intensity which impact the behavior is
magnitude of the consequence, probability of effect, temporal immediacy, concentration of
effects, this important element was ignored by all previous existing models [8]. Woceshym
(2011) proposed a model of ethical decision making, he argued that both conscious and
subconscious, intuitive processes operate when decisions are being made [9].
Further, it is argued that the decision maker spirals back and forth between the two-l
processing when identifying moral dilemmas and applying moral principles and accessing
and using subconscious, information about them, and argue that rational egoism is the moral
code that long term success of companies when integrated with essentials, this model was
based on reasoning, intuition and moral principles. Previous all existing model from review
of these all-existing models and theory, we can ensure that each and every model has been
played an important role in the development of the more comprehensive model and moreover
it is empirically tested by many researchers. This can be concluded that to reaching ethical
decision behavior it passes from one stage to other and influenced by intervening
determinants, which can be categorized as individual, organizational and external factors and
their constructs.
Figure 2: 10 Ethical Behaviours [10]
Empirical Studies on Ethical Behaviour
Ethical behavior has become a common remedy for success in business. A large number of
empirical studies on ethical behavior are available, which can be categorized into individual,
organizational, and external factors. The paper provides a review of the studies related to
these factors. To allow researchers to better understand and access the literature related to the
factors associated with ethical behavior, gaps and limitations have been discussed, and the
empirical studies have been divided into individual factors, organizational factors, and
external factors [11].
Under individual factors, the studies related to gender and age are the most researched
constructs. Machiavellianism is a personality trait that has been studied less than other
individual factors. However, several studies have found that high Machiavellianism tends to
be less ethical in decision making than low Machiavellianism. In contrast, some studies have
found no significant relationship between Machiavellianism and ethical decision-making.
Locus of control, another individual factor, refers to the belief that an individual can
control events affecting them. Studies have found that locus of control is not related to ethical
decision-making, while others have found that it has a significant impact on ethical behavior,
either directly or indirectly. Value orientation, including value-based theories, has consistently
been found to have a positive impact on ethical decision-making.
Organizational factors, which are external to the individual and exist in the work
environment, directly or indirectly influence individual ethical behavior. The constructs of
organizational factors, such as code of ethics, ethics training, reward system, climate, and
structure, are important. Most studies have found a significant relationship between code of
ethics and ethical behavior, while a few studies found no significant influence. The findings
related to the influence of ethics training on ethical behavior are mixed. However, studies
have consistently found that the reward system has a significant impact on ethical behavior.
External factors, such as social norms, legal framework, and cultural differences, also
influence ethical behavior. Social norms and cultural differences have a significant impact on
ethical behavior, while the influence of the legal framework on ethical behavior is mixed.
The findings indicate that both the method of compensation and the control system
are crucial factors affecting ethical behavior, along with age as a significant predictor. On the
other hand, education does not seem to have a substantial correlation with ethical behavior.
Salespeople who exhibit ethical behavior experience less role conflict and greater job
satisfaction, but their performance does not necessarily improve. To enhance the
generalizability of these results, future studies should expand the sample by including a
diverse range of industries. Additionally, longitudinal data can provide further insights into
the antecedents and consequences of salespeople's ethical behavior, particularly in relation to
performance. Ongoing research is necessary to investigate the association between ethical
behavior and other relevant behaviors that may occur during customer interactions, such as
organizational citizenship behaviors and customer orientation [12].
In summary, ethical behavior is an important factor for success in business. The
literature on ethical behavior is vast and can be categorized into individual, organizational,
and external factors. Researchers have identified gaps and limitations in the literature related
to these factors, which provide scope for future studies.
Case Study on McDonald’s Model of Ethics
McDonald's is a multinational fast-food chain with locations in more than 100 countries. As a
large corporation, McDonald's has faced numerous ethical dilemmas in the past, including
accusations of labor violations, environmental harm, and health concerns related to their
food.
One major ethical issue that McDonald's has faced is the treatment of its workers. In
2015, employees in several US cities staged protests demanding higher wages and better
working conditions. They argued that McDonald's and other fast-food chains were exploiting
their workers by paying them minimum wage and denying them benefits like healthcare and
sick leave. McDonald's argued that it was not responsible for the treatment of its workers, as
most of its restaurants are owned and operated by franchisees. However, the National Labor
Relations Board ruled in 2014 that McDonald's was a joint employer with its franchisees,
meaning it could be held responsible for labor violations committed by franchisees [13].
Another ethical issue that McDonald's has faced is related to the healthiness of its
food. Critics argue that McDonald's and other fast-food chains contribute to the obesity
epidemic by offering high-calorie, low-nutrition meals. In response, McDonald's has made
efforts to introduce healthier options, such as salads and grilled chicken, and to provide more
transparent nutritional information.
Additionally, McDonald's has faced criticism for its environmental impact. The
company has been accused of contributing to deforestation through its use of paper packaging
and contributing to greenhouse gas emissions through its energy use. In response,
McDonald's has set goals to reduce its carbon footprint and to source its products more
sustainably.
Overall, McDonald's faces ongoing ethical challenges related to its treatment of
workers, the healthiness of its food, and its environmental impact. The company has made
efforts to address these issues, but critics argue that more needs to be done to ensure that
McDonald's operates in a socially responsible manner.
Case Study on Spotify’s Model of Ethics
Spotify is a music streaming service that has rapidly gained popularity around the world. The
company has built a reputation for innovation, creativity, and a strong commitment to ethical
business practices. Spotify has implemented several programs and initiatives to promote
professional ethics, including a code of conduct and a robust system for reporting and
addressing unethical behavior.
Spotify's Code of Conduct outlines the company's values and expectations for
employees, including their commitment to ethical behavior. The code is designed to ensure
that all employees understand the company's expectations for conduct, and it serves as a
foundation for the company's culture of professionalism. The code is regularly reviewed and
updated to ensure it remains relevant and effective [14].
Spotify has also implemented a robust system for reporting unethical behavior. The
company's Ethics and Compliance team provides employees with a confidential channel for
reporting potential violations of the company's code of conduct or other ethical concerns.
Employees can report concerns anonymously, and the team will investigate any reports
received. The team also provides regular training to employees to ensure they understand the
company's expectations for ethical behavior.
In addition to its internal initiatives, Spotify has also demonstrated a commitment to
ethical business practices through its external partnerships and collaborations. For example,
the company has partnered with the International Federation of the Phonographic Industry
(IFPI) to promote ethical practices in the music industry. The partnership includes efforts to
combat piracy and promote fair compensation for artists.
Overall, Spotify has developed a robust and effective model for promoting
professional ethics in its daily work practices. The company's code of conduct and reporting
system ensure that employees understand the company's expectations and have a means for
reporting any concerns. In addition, the company's commitment to ethical practices extends
beyond its internal operations to its partnerships and collaborations in the music industry.
Case Study on Apple’s Model of Ethics
Apple is known for its strong ethical values and has built a reputation for ethical business
practices. Here is a case study on Apple's model of ethics:
In 2011, Apple faced criticism over the working conditions in its suppliers' factories in
China. Reports indicated that employees were working long hours in hazardous conditions,
and the company was accused of turning a blind eye to the issue.
Apple responded to the criticism by launching an investigation into its suppliers'
factories, and publishing an annual Supplier Responsibility Report. The report outlines the
company's standards for supplier conduct and includes detailed information on the working
conditions in each of its suppliers' factories [15].
Apple also implemented a number of changes to improve the working conditions in
its suppliers' factories. For example, the company reduced the maximum number of hours
that employees could work, improved safety conditions, and increased wages for workers.
Furthermore, Apple has also implemented environmental sustainability policies. The
company has committed to using 100% renewable energy in all of its facilities, and has
implemented a closed-loop supply chain model to reduce waste and increase recycling.
Apple's model of ethics is based on a commitment to transparency, responsibility, and
sustainability. The company has demonstrated a willingness to acknowledge and address
issues, such as the working conditions in its suppliers' factories, and to take action to improve
them. This approach has helped to build trust with customers and stakeholders, and has
enabled Apple to maintain its reputation as a responsible and ethical company.
Importance
To be a professional, it’s important to have professional skills as well as professional ethics.
The job market is highly competitive and unless you run a business ethically, you’re unlikely
to sustain its growth for a long time. Your customers, vendors and employees will be
discouraged by the company’s lack of professionalism or fraudulent, unethical or grey area
work practices.
For instance, you might initially make a lot of sales by making tall claims about the
effectiveness of a product, but if the product fails to deliver the promised performance, your
business will lose its credibility and sales will plummet.
On the other hand, if you don’t compromise on quality and ethical service, your
honesty and integrity will help the company gain the trust and support of its clients and
customers. It’s a well-known fact that employees are the brand ambassadors of an
organization.
The conduct and behavior of an organization’s employees are known to mirror the
way business is conducted in the organization. Thus, as an employee, you must always
remember that your actions and behavior will impact your place of work’s public opinion
[16].
Ethical conduct is of paramount importance. It not only refers to adherence to law but
also doing things that are socially and morally appropriate and help you win the faith and
support of the clients and other stakeholders. Great businesses set their standards and stick to
them, whereas petty and unethical businesses rely on ‘selling by hook or crook’.
Let’s go back to the example of the communication professional providing internet
services. The communication professional might offer lower prices and attractive terms and
conditions to lure customers. If this person uses old or refurbished equipment at the rate of
new equipment, he might make money initially. However, the service issues that may arise
later due to the quality of equipment may lead to losses with customers discontinuing the
service due to dissatisfaction.
Such behavior is considered unethical and unacceptable. Quite often, we hear
employees claim that they’re made to cut corners because of the lack of a budget. However,
that’s no justification. If you’re carrying out illegal activities, you’re as guilty as anyone else
and this won’t be termed as professionalism. If you wish to be a professional then remember
that ethical conduct is the key to your success.
Conclusion
From this systematic review of the literature, it is clear that, all variables are related with each
other, to come to the stage of behavior. Just not only one factor or variable is responsible, but
all factors and variables are responsible in influencing ethical behavior. We see that most of
the empirical studies are based on the variables which have been discussed in famous theories
like Hunt and Vitell, Rest’s model, Jones model. Some of variable have been most,
researched the most like age, gender but very little attention have been given to variable like
Machiavellianism. Furthermore, most of the research is done in western domain so the
generalisablility of the research done is questionable. Future research should consider in
different domain. It has been noted that most of empirical studies are moving around Rest’s
and Jones ethical behavior model so further advancement in theoretical model is required.
There are very limited studies on external factors like competition; influence of stake holders,
regulation system etc., and further attention is required in this field. In empirical studies of
each variable we find mixed results, so more research is needed to better understand the
variables. As far as methodology is considered, there is need to explore more and new
methods to analyze ethical behavior.
We have attempted to review few variables from all available factors. There are lots of
more variables which are acting as moderator and mediator. But it is beyond the scope of our
literature review. We have only highlighted the studies available in area of individual factors,
organizational factors, and external factors, the methodology and gaps analysis. In
conclusion, we hope that this review will help the researchers who want to extend the studies
in field of ethics and ethical behavior.
References
[1] Zahra M. The Importance and Necessity of Professional Ethics in the Organization
and the Role of Managers. Psychol Behav Sci Int J .2021; 18(1): 555979.
[2] George G, Haas MR, McGahan AM, Schillebeeckx SJ, Tracey P, et al. (2021)
Purpose in the for-profit firm: A review and framework for management research.
Journal of Management.
[3] Mayer C (2020) The Future of the corporation and the economics of purpose.
Journal of Management Studies 58(3): 887-901.
[4] Ferrell, O.C., & Gresham, L.G. (1985). A Contingency framework for
understanding ethical decision making in marketing. The Journal of Marketing, 49,
87-96.
[5] Rest, J.R. (1986). Moral development: Advances in research and theory. New
York; Praeger.
[6] Trevino, L.K.(1986), Ethical decision making in organization. A person-situation
interactionist model. Academy of Management Review, 11, 601-617.
[7] Dubinsky, A.J., & Loken, B. (1989). Analyzing ethical decision making in
marketing. Journal of Business Research, 19(2), 83- 107.
[8] Jones, T.M.(1991). Ethical decision making by individuals in organizations: An
issue-contingent model. Academy of Management Review, 16, 366-395.
[9] Woiceshyn, J. (2011). A model for ethical decision making in business; Reasoning,
interaction and rational moral principles, Journal of Business Ethics, 104(3), 311-323.
[10] https://www.makingbusinessmatter.co.uk/ethics-in-management/
[11] Loe, T. W., Ferrell, L., & Mansfield, P. (2000). A Review of Empirical Studies
Assessing Ethical Decision Making in Business. Journal of Business Ethics, 25(3),
185–204.
[12] Stanley B, Sieber JE, Melton GB. Empirical studies of ethical issues in research. A
research agenda. Am Psychol. 1987 Jul;42(7):735-41.
[13]https://www.ipl.org/essay/What-Is-Mcdonalds-Code-Of-Ethics
FCWCVXQN4PU
[14] https://www.atlassian.com/agile/agile-at-scale/spotify
[15]https://www.studysmarter.co.uk/explanations/business-studies/business-casestudies/apple-ethical-issues/
[16] https://www.emerald.com/insight/content/doi/10.1108/03090560510590674/