A meta-theoretical model of ethics in business organizations

This dissertation presents a single coherent approach to the study of ethical decision-making in business by integrating both prescriptive and empirical approaches to the study of business ethics programs. Integration of prescriptive and empirical approaches is achieved by conceptualizing business ethics in a neo-Parsonian social system derived from the works of Parsons and Münch. This neo-Parsonian social system consists of four major social forces or principles that affect ethical decision-making. The social system is represented in a four-quadrant model defined by two axes. Each quadrant represents one of four different ethical principles used to categorize business ethics discussions and decisions. This model is called my business ethics framework. Relationships between social actors in the four quadrants in my business ethics framework are discussed and developed as an overarching theory of ethical decision-making in business. Both the business ethics framework and overarching theory suggest that ethical decision-making is complex because organizations are forced to use a multi-faceted analysis that may provide different “ethical” answers under different conditions. Organizations perceive the conditions and related “ethical” answers to be affected by the relative weights of the perspectives adopted by other social actors involved in the decision. My business ethics framework and overarching theory are tested and validated in an empirical study of ethics programs in 17 organizations. The empirical study made use of both qualitative and quantitative techniques to (a) analyze responses to in-depth structured interview questions, (b) analyze the content of ethics documents, and (c) draw conclusions about the degree of influence between decision factors associated with the four ethical principles and outcomes in ethics programs. This study suggests that a strong factor in an organization's decision to develop and implement an ethics program may be one of economic optimization, not just legal compliance. Furthermore, the strength of values-based approaches to ethics programs is challenged. By conceptualizing ethics programs as existing in social systems in which organizations must manage relationships with social actors who are trying to further their own set of needs, I have created a strong theoretical base for studying the diversity of business ethics programs and decision-making.