rates among Fortune 500 firms of codes of ethics, appointment of ethics officers, and other such
organizational characteristics. All of these questions describe or summarize data about
individuals or organizations. Even anthropological studies might be included in this kind of
research. One might, e.g., engage in a systematic of the ethical aspects of Japanese business
culture.
Theory Building and Hypothesis Testing
However, since the late 1980s and for more than 15 years there has been a growing
body of research from which has emerged more complex and complete conceptual models of
ethical decision making and ethical behavior. Of particular note is the seminal work of Linda
Trevino in 1986. She proposed a "person-situation interactionist model" to explain ethical decision
making behavior in organizations. Citing the lack of a comprehensive theory to guide empirical
research in organizational ethics, Trevino proposed a model that posited cognitive moral
development of an individual as the critical variable in explaining ethical/unethical decision making
behavior. However, improving on previous models, Trevino proposed an interactionist model that
posited individual variables (e.g. locus of control, ego strength, field dependence) and situational
variables (e.g. reinforcement contingencies, organizational culture) as moderating an individual's
level of moral development in explaining ethical decision making in organizational contexts. Other
conceptual models followed proposing alternative frameworks and variables that describe and
explain ethical decision making and behavior in business and organizational contexts.
These conceptual models posit various relationships that can be empirically tested, and this is
another critical aspect of this approach, hypothesis testing. Hypotheses are derived propositions that
can be tested empirically, and the results of these empirical studies lead to further refinement and
modification of the conceptual models. There has been a significant amount of such hypothesis
testing in the past 15 years. Such hypothesis testing requires attention to measuring variables, design
for testing such relationships, and selection of the appropriate statistical methods for evaluating
results. Thus, business ethics has developed as another branch of the social sciences.
To summarize this descriptive body of research would be impossible here. However, we can
provide some of the more salient factors that have been studied. For example, it is fair to say, and
not surprisingly, that the attitudes and behaviors of employees and managers are strongly influenced
by organizational factors and context. Factors studied include the existence of formal ethics
policies, the use of ethics training programs, and the commitment of top management in terms of
implementing ethics policies and programs. Other organizational factors include the reward structure
of the organization and whether and how sanctions are used for ethical/ unethical behavior. Beyond
such formal features of organizations, attitudes and behaviors are likely influenced by the ethical
climate as well as the ethical culture of organizations. The behavior of peers and more generally the
immediate job context in the organization are also likely important, as is the behavior and
commitment of leaders in organizations. Included here would be perceived role conflict of one’s
position, what is rewarded in the unit, the behavior and attitudes of co-workers and management, and
job pressure.
Besides organizational factors, individual characteristics likely influence decision making,
attitudes, and behavior. Following a stage model of decision making, moral awareness or ethical