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Methodology in Business Ethics Research: A Review

and Critical Assessment

ABSTRACT. Using 94 published empirical articles in


academicjournals as a data base, this paper providesa critical
review of the methodology employed in the study of ethical
beliefs and behavior of organizational members. The review
revealed that full methodological detail was provided in less
than one half of the articles. Further, the majority of
empirical research articles expressed no concern for the
reliability or validity of measures, were characterized by low
response rates, used convenience samples, and did not offer a
theoretic framework, hypotheses, or a definition of ethics.
Several recommendations, including a reviewer rating form
addressing methodological decisions and inclusion of methodologists on the review panel, are offered to improve
methodological rigor in published ethics research.

At present, little is known about the quality of


empirical research on the ethical beliefs and conduct
of organization members. The purpose of this paper
is to provide a critical review of the methodology in
business ethics articles and to suggest methodological
refinements. Using published empirical articles in
academic journals as a data base, methodological
decisions made by business ethics researchers in each
of the eight major stages of the research process

Donna M. Randall is an Associate Professor in Management and


Systems at Washington State University. Her research interests
include organizational commitment, media coverage of whitecollar and corporate crime, and ethical issues in management. Her
publications have appeared in such journals as Decision
Sciences, Academy of Management Review, and Social

D. M. Randall
A. M. Gibson

depicted in Figure 1 are summarized. When weaknesses are noted, suggestions for a more defensible
methodology are offered.

Methodology
An attempt was made to locate all published studies
that empirically investigated ethical beliefs and
behavior in organizations. Three computerized data
bases were searched: Management Contents, the Social
&iences Citation Index (SSCI), and the BusinessPeriodicals Index (BPI). Management Contents indexes 500
U.S. and international journals on a variety of
business-related topics from 1974 to present. Using
tides and descriptors, the following key words were
searched: ethical conduct, ethical decision(s), and
ethical situation(s). The SSCI contains over one
million citations from articles in key social science
journals and selected journals in related fields from
Theory
HypOthesis
Formation
Conceptualization
!

~
1niceof
ResearchMethod t

Operatio!nalizario/
Observation

Popula~onand
Sampling

Science Quarterly.
Annetta M. Gibson is a doctoral student in accounting in the
Department of Accounting and Business Law at Washington
State University. She has a CPA and has worked as an auditor
for a number of years. Her research interests include impression
management and ethical issues in auditing, accounting, and
management.

Journal of Business Ethics 9:457--471, 1990.


1990 KluwerAcademic Publishers. Printed in the Netherlands.

Data Pr!cessing
and Analysis
* Adapted from Babble (1986).
Fig. 1. An overview of stages in the research process*

458

D. M. Randall and A. M. Gibson

1972 to present. Using tides and descriptors, the


following key words were searched: ethical conduct,
ethical decision(s), ethical situation(s), business ethics,
managerial ethics, ethical beliefs, ethical conflict,
ethical judgment, ethical attitudes, ethical perceptions, ethical standards, unethical behavior, unethical
decision(s), immoral behavior, managerial morality,
organizational ethics, and business philosophies. The
BPI was accessed on CD/Rom using a Wilsondisc
PC-Rom information retrieval system through the
key word, "business ethics." The data base indexes
304 periodicals on virtually every subject area related
to business from 1982 to the present.
In addition to the three computer searches, The
Readers Guide to Periodical Literature from 1960 to
present and the Business Periodicals Index from 1958
to the present were searched manually using "business ethics" as a key word. The Readers Guide to
Periodical Literature is a cumulative subject index to
approximately 175 periodicals published in the U.S.
Finally, bibliographies in all relevant articles were
reviewed to identify additional citations not obtained
through the computer or manual searches.
Each article was screened using clearly defined,
prespecified criteria. Each article was reviewed to
determine if: (1) the article contained an empirical
research study, and (2) the study dealt with ethical
beliefs (defined by Bowman, 1976, as judgments
about what is right and wrong and whether or not
these judgments are good or bad) or ethical behavior
(defined by Runes, 1964, as '~ust" or "right" standards of behavior between parties in a situation) of
organizational employees (employees, peers, or managers). As the focus of the study was on ethical beliefs
and behavior, related articles on social responsibility,
corporate codes of conduct, and whistle-blowing
were excluded from the study.
Of the over seven-hundred citations obtained, 94
articles met these two criteria and were included in
the study)' 2 Each of the 94 articles was analyzed in
depth. A code sheet was developed which consisted
of a series of questions regarding key components of
the research process depicted in Figure 1. Such
questions included: Was a theory presented? Were
hypotheses specified? Were key constructs clearly
defined? Were the instruments used to measure the
key constructs reliable and valid? Were the instruments pretested? What research design was selected?
How was the sample selected? Did the researchers

seek to generalize to a larger population? What


observation techniques were used? What statistical
techniques were used to analyze the data?
Further, using Cabell's Director), of Publishing
Opportunities in Business and Economics (1988 edition),
data were gathered on the acceptance rate of each
journal publishing business ethics research (reflected
in Table I). When a range of acceptance rates was
provided, the mean of that range was used to calculate the acceptance rate. Due to a skewed distribution, the median acceptance rate was used to classify
acceptance rates of the journals as high (26% or
above) or low (25% or lower). As analysis revealed
that including studies from journals with nonavailable acceptance rates (18 studies) into the high
acceptance rate category did not significantly change
the findings, all subsequent analyses were run
excluding the unrated studies.
The code sheet was pretested for comprehensiveness and clarity. Ten articles were coded independendy by the first and second authors. After agreement was reached on coding discrepancies and
refinements, all 94 articles were coded onto a revised
code sheet by the second author. Using a random
numbers table, the first author selected 15% (14
articles) and independently coded the articles. The
interrater reliability between the two authors on the
subsample of articles was 97.1%.

Overview o f articles

Empirical research on ethical beliefs and behavior in


business organizations spans three decades beginning
with a well-known study of attitudes of executives
toward business ethics (Baumhart, 1961). As Figure 2
illustrates, academic interest in business ethics remained fairly constant until the mid 1970s. The
1980s reflected great interest in business ethics with
over 60% (66) of the articles published during this
period. Interest has been particularly strong in recent
years, as reflected by the peak of published articles in
1987 and 1988.
Over the past three decades, a surprising variety
of journals have published research on business
ethics. As reflected in Table I, the most popular
publication outlet is the Journal of Business Ethics,
publishing over one third (32) of the empirical
articles on ethical beliefs and behavior of organiza-

Methodology

459

TABLE I
Journals publishing articles on ethical beliefs and behavior in business

g of
articles

(%)

1. Journal of Business Ethics


2. Journal of Marketing
3. Akron Business and Economic Review
4. Business Horizons
5. Harvard Business Review
6. Journal of Applied Psychology
7. Journal of Business Research
8. Psychological Reports
9. Journal of Retailing
10. Management Review
11. Business and Society Review
12. Journal of SmallBusiness Management
13. Human Relations
14. Journal of Academy of Marketing Science
15. Journal of Purchasing and Materials Management
16. MSU Business Topics
17. Personnel Journal
18. California Management Review
19. Public Personnel Management Journal
20. Academy of Management Journal
21. Atlantic Economic Review
22. Conference Board Record
23. Industrial Marketing Management
24. Journal of Advertising
25. Organizational Dynamics
26. Personnel Administration
27. Purchasing
28. Review of Business and Economic Research
29. Supervisor/Management
30. Journal of Purchasing
31. Supervision
32. Business and Society Review
33. Direct Marketing
34-. Canadian Business
35. European Journal of Marketing
36. Southern Business Review
37. Management Decision
38. Marketing Education

32
5
3
3
3
3
3
3
2
2
2
2
2
2
2
2
2
l
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

34.0%
5.3%
3.2%
3.2%
3.2%
3.2%
3.2%
3.2%
2.1%
2. I%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%

Total

94

100.0%

Name of journal

* As reported in Cabell's DirectoryofPublishing Opportunitiesin Businessand Economics, 1988 ed.; na - not available.

acceptance
rate*

21--30%
10% or less
11--20%

20--25%
5% or less
6--10%
6--10%
na
21--30%
6--10%
10%
21--30%
na

11--20%

21--30%
na
6--10%
6--10%
11--20%

6--10%
na
15--18%
11--20%

6--10%
6--10%
na
na

11--20%
na

na
50% or more
10%
na
na
na
ng
na

na

D. M. Randall and A. M. Gibson

460
16
14
12
!-,,4

Q.)
,.O

21

1961

1963 1965

1967 1969

1971 1973

1975 1977 1979 1981

1983 1985 1987 198~

Year of Publication
* Incompletedata available
Fig. 2. Businessethics articlesby year
tional members. With the exception of the Journal of
Marketing, each of the remaining journals referenced
in Table 1 published a maximum of three relevant
articles.

Methodological critique
While one might anticipate that empirical articles
published in academic journals would provide fairly
detailed methodological description, the review of
articles revealed that this was not the case. There was
a surprizing amount of missing detail. Full methodological description appeared in less than one half
(45) of the 94 articles. While several studies neglected
to report only one or two methodological details,
other studies (e.g., Allen, 1980; Bezilla et al., 1976)
reported only two methodological details - who was
sampled and the number of participants in the study
- without any other methodological description.
A complete disclosure of methods in any empir-

ical study is essential for an accurate appraisal of the


research findings. Without full disclosure of research
methods, it will be difficult to evaluate the significance of the research findings and dangerous to draw
any practical implications from the study.
From the methodological description which was
provided, the following conclusions about empirical
research on ethical beliefs and conduct can be
drawn:

Theoreticframework
Theory is a necessary component of the research
process. Positivists advocate a deductive approach to
theory development in which a theoretic framework
is the appropriate starting place for empirical research. Once a theoretic base has been established,
business ethics researchers can make predictions
about what beliefs and behavior would likely occur
under given conditions, logically develop a research

Methodology

461

program to examine those predictions, interpret


findings in light of the specified theory, and revise
the theory, if necessary. The business ethics articles
reviewed were characterized by a distinct absence of
theory. As reflected in Table II, 64% (60) of the
studies did not cite any previously established
theoretic framework nor seek to develop one.
In an effort to move beyond descriptive research,
it is desirable that researchers specify a theoretic
framework. Researchers need not develop their own
theoretic framework; a large number of theoretic
models currently await empirical testing (e.g., Bommer et al., 1987; Trevino, 1986). Empirical studies by
Hegarty and Sims (1978) and Zey-Ferrell and Ferrdl
(1982) provide excellent examples of how previously
existing theoretic frameworks can be used to guide
empirical research on business ethics.

Hypothesis offered

Hypotheses

Population and sampling decisions


Study population

Once a theoretic framework has been established,


researchers typically develop and specify hypotheses
or propositions predicting a particular relationship
between two or more variables, just as few empirical
articles on ethical beliefs and behavior presented a
theoretic framework, few presented testable hypotheses (Table II).
As business ethic researchers move beyond exploratory research, it will be necessary to develop
specific research hypotheses. Hegarty and Sims
(1978, 1979) aptly illustrated how testable hypotheses can be derived from a theoretic framework.

Conceptualization
The conceptualization phase of the research process
involves defining the meaning of theoretic constructs. This stage is particularly troublesome in
ethics research as there is little consensus regarding
what constitutes "ethical" beliefs or "ethical" behavior in an organizational setting (Baumhart, 1961;
Ferrell and Gresham, 1985; Vitell and Festervand,
1987). Not only are ethical standards constandy
changing over time, but they vary from one situation
or organization to another (Barnett and Karson,
1987; Ferrell and Gresham, 1985). As an illustration

of the conceptual confusion characterizing business


ethics research, Lewis (1985) identified 308 different

TABLE II
Summary of methodological decisions

Tkeoreticframework
no theory development
unclear if theory present
weak theory development
strong theory development
no
yes

ff~ %
60 64
2 2
8 9
24 26
71 75
23 25

Conceptualization
Definition offered to readers of article
Definition offered to study participants

21 22
7 7

Operationalization
concern for reliability of instrument mentioned
concern for validity of instrument mentioned
instrument pretested

practicing managers and professionals


students (graduate and undergraduate)
combination of managers and students

18 19
18 19
19 20

63 67
24 26
7 7

Sample design
design not specified
other
convenience sampling
random sampling

13 14
11 12
39 42
31 33

Response rate
not reported
below 10%
10-19%
20-29%
30-39%
40-49%
50-59%
60-69%
above 70%
not applicable

10 11
0 0
2 2
10 11
8 9
10 11
4 4
4 4
4 4
42 45

Research design
survey research
lab experiment/simulation
in-person interviews
in-person interviews and survey
not reported

76 81
6 6
4 4
3 3
5 5

Analytic teclmiques
univariate techniques
bivariate techniques
multivariate techniques

33 35
43 46
18 19

462

D. M. Randall and A. M. Gibson

definitions of the term "business ethics" in 254


articles, books, and textbooks.
Rather than offering a wide variety of definitions
of ethical beliefs and behavior, the majority of
business ethics articles reviewed offered no definition of ethical beliefs or conduct to study participants or readers of the article (Table II). For instance,
Allen (1980) asked survey respondents to indicate
which organizations and institutions were likely to
encourage poor ethics on the part of their members,
without defining "poor ethics" or asking respondents
what "poor ethics" meant to them. Such an approach
allows readers and study participants to create and
respond to their own definitions of ethical beliefs
and conduct.
To build a cumulative data base of business ethics
research, key constructs in business ethics research
need to be clearly defined. Without a commonly
shared understanding of what is meant by ethical
beliefs and conduct, these terms will be ultimately
defined by study participants and their definition
will remain unknown to researchers and readers of
business ethic articles. Examples of clearly stated
definitions of ethical beliefs and conduct can be
found in Bowman (1976), Brown and King (1982),
Brenner and Molander (1977), and Browning and
Zabriskie (1983).

Operationalization
Operationalization decisions involve timing reliable
and valid measures for theoretical constructs. The
articles reviewed reflected surprisingly little concern
for either the validity or reliability of the research
instruments (Table II). It appears that most business
ethics researchers assumed that their instruments
were reliable and had face validity. Unfortunately, as
little consensus exists about the definition of ethical
beliefs and conduct, one researcher's judgment of
validity of an instrument may not be the same as
another's. In addition, if ethical beliefs and conduct
are multidimensional constructs, face validity will
not assure that an instrument taps all relevant
dimensions.
Some researchers did demonstrate a concern for
the reliability and validity of the research instruments. For instance, Chonko and Hunt (1985)
sought to enhance the reliability of their instruments

by using interrater reliability checks, while Dubinsky


and Ingram (1984) reported the Cronbach's Coefficient alpha for all scales used in their research.
Similarly, in seeking to enhance the content validity
of their instrument, Fritzsche and Becker (1984)
developed a number of vignettes in each of five
representative categories of ethical problems.
Pretesting can help increase the reliability and
validity of measures (as well as encourage scrutiny of
question wording, question order, redundant questions, missing/inappropriate questions, confusing
response categories, and poor scale items (Bailey,
1982)). Yet, no pretest was conducted in 78% (73) of
the business ethics articles. While some of these
articles (23) had adopted measures from other
studies, 50 of the articles utilized newly developed
measures without any reported pretest.
When pretests were conducted they were appropriately conducted in the target population. For
example, Fritzsche and Becker (1984) pretested
vignettes on a sample of marketing managers (the
relevant population) by drawing a random sample
from a local chapter of the American Marketing
Association. Similarly, Dubinsky and Gwin (1981)
pretested descriptions of ethical situations with the
assistance of purchasing and field sales personnel
across several industries (the relevant population).
In sum, business ethics researchers need to develop
reliable and valid instruments, to conduct pretests of
those instruments, and to continue to conduct
pretests in the target population. The reliability of
the instruments can be fairly easily assessed using
measures of interrater reliability, internal consistency, or test-retest reliability. Whereas the validity
of instruments is typically more difficult to ascertain,
possible options might include the use of a validation procedure set forth by Churchill (1979), a
multitrait-multimethod matrix (Campbell and Fiske,
1959), or a nomological net (Cronbach and Meehl,
1955).

Population and sampling decisions


Population and sampling decisions concern identification of the group about which conclusions are to
be drawn and the group that will be observed for
that purpose. Population aM sampling decisions
generally involve four issues: who is sampled, what

Methodology
type of sample is drawn, what an acceptable response
rate is, and what size of sample is needed.

Study population. The bulk of articles on ethical


beliefs and conduct used practicing managers and
professionals as a sample (see Table II). It was
particularly interesting to note the heavy reliance
upon samples of marketing managers. Over onequarter (25) of the 94 articles explored ethical
practices in marketing-related professions (sales,
purchasing, and advertising). This was undoubtedly
due to the belief that marketing managers encounter
more situations that result in decisions with ethical
impact than do executives in other functional areas
of the firm (Chonko and Hunt, 1985; Dubinsky and
Gwin, 1981; Dubinsky and Levy, 1985; Levy and
Dubinsky, 1983; Trawick and Darden, 1980).
It was also surprising to note that relatively few
business ethics articles used student samples. Whereas
the use of student samples has been heavily criticized
in organizational research due to problems of
generalizability (see Rosenthal and Rosnow, 1975),
student samples are appropriate if they comprise the
population of interest or if the population of interest
is similar to the student sample on theoretically
relevant variables and the study is part of a research
program investigating generalizability to the population of interest (Gordon et al., 1987). Furthermore,
while studies examining attitudes have found sizeable discrepancies between students and other subjects, studies focusing on decision-making have
found considerable similarities in the decisions and
assumed behavior of student and nonstudent samples (Ashton and Kramer, 1980; Remus, 1986).
On those occasions when students were used as
subjects in business ethics research, the purpose of
the study was not to generalize to managers, but to
determine attitudes held specifically by business
students toward ethical dilemmas (e.g., Beltrami et
al., 1984;Jones and Gautschi, 1988), the influence of
individual difference variables on ethical decisionmaking (e.g., McNichols and Zimmer, 1985; Tsalikis
and Nwachukwsu, 1988), the impact and effectiveness of business ethics courses (e.g., Hawkins and
Cocanougher, 1984; Martin, 1982), and the willingness of students to engage in unethical practces (e.g.,
Rosenberg, 1987; Worrell et al., 1985).
Hence, the use of managerial samples for understanding the ethical beliefs of managers appears to be

463

highly appropriate. In those instances where researchers are interested in exploring the ethical
decision-making process, student samples can be
substituted without a major threat to generalizability.

Sampling design. Once a study population was selected,


business ethics researchers relied primarily upon
random or convenience sampling to select individuals for inclusion in the study (Table II). Historically,
random samples have been preferred over convenience samples as they offer the best assurance against
sampling bias (e.g., Lazerwitz, 1968). Convenience or
"captive audience" samples offer no assurance of
representativeness and do not permit generalization
to a larger population. (However, when expert
opinion surveys are conducted (e.g., Schutte, 1965;
Stoffman, 1987), a convenience sampling design is
highly appropriate.)
In business ethics research, generalizations from
convenience samples to a larger population were
frequently made. For instance, Rizzo and Parka
(1981) generalized from a convenience sample of
middle managers in public agencies in south Florida
to all public managers; Trawick and Darden (1980)
generalized from a convenience sample of marketing
practitioners and educators (with an unspecified
selection strategy) to all practitioners and educators;
and, Dubinsky and Ingam (1984) similarly generalized from a convenience sample of salespersons
(with an unspecified selection strategy) to all sales
personnel.
Ideally, business ethics researchers should seek to
decrease their reliance on convenience samples and
increase the use of random samples. Random sampies can be drawn using such techniques as membership lists of professional associations or a directory
of manufacturers. As random sampling may not
always be feasible due to time and resource constraints, at minimum, generalizations from convenience samples to the larger population need to be
curtailed.
It was interesting to note that managerial and
student samples are associated with distinct sampling
designs. A majority of the 63 studies involving
managers or professionals as the study population
were conducted using a random sampling technique,
through mail surveys, and had a mean sample size
of 411. On the other hand, a majority of 24 studies
involving students as the study population selected

464

D. M. Randall and A. M. Gibson

respondents through convenience sampling, utilized


questionnaires administered in a research setting,
and had a mean sample size of 560.
Sample size. A large sample size can help minimize
sampling error. Many researchers view 100 subjects
as a minimum sample size (Bailey, 1982). If one
compares sample sizes in business ethics research
against this standard, ethics research clearly surpasses
the minimum. The mean number of'subjects in the
studies reviewed was 434, with a range from 4 to
2856 subjects. As the mean was skewed by four
particularly large samples, the median of 196 presents a better estimate of typical sample size.
However, adequacy of sample size is not simply a
function of the number of subjects, but rather
depends on such factors as how the respondents
were selected (random or convenience), the distribution of the population parameter (the variable of
interest), the purpose of the research project (exploratory or applied), and the intended data analytic
procedures (to ensure adequate cell sizes for statistical analysis). Despite the importance of such factors,
they were infrequently taken into consideration in
the determination of appropriate sample size. It
appears, as is true of most social science research
(Simon and Burstein, 1985), that the sample size was
fixed by the amount of money available or the
sample size that similar pieces of research used in the
past (e.g., Krugman and Ferrell, 1981; Posner and
Schmidt, 1987). For example, although Hogarth
(1978) determined that under certain conditions
groups with 8 to 12 experts have predictive ability
close to the optimum, in the two surveys of expert
opinion (Schutte, 1965; Stoffman, 1987), a limited
number of experts - seven and four, respectively were approached.
It would be desirable for business ethics researchers to consider more carefully the issue of sample
size. Attention to the purpose of the research,
sampling design, and likely data analytic techniques
can aid in this effort. A pretest can help determine
how the population parameter is distributed in the
population. Such techniques as a Monte Carlo
experiment or step-wise sample-size determination
(Simon and Burstein, 1985) may also aid in determining appropriate sample size.
Response Rate. A low response rate in any type of

research is troubling as the data may not be representative of the population surveyed. For most
studies, Babble (1986) advised that a response rate of
at least 50% is adequate for analysis and reporting, a
response rate of 60% is good, and 70% or more is very
good. However, in research on sensitive topics, a
response rate of even 70% may be a severe problem,
as nonrespondents are more likely to be similar in
important characteristics, thus introducing substantial nonrandom error. Moreover, factors such as cost
of reducing the nonresponse bias need to be taken
into consideration.
The typical response rate to surveys in the
business ethics articles was low (Table II). The mean
response rate was 43%, ranging from 10% in a
Business and Society Review survey (1975) to 96% in a
study by McNichols and Zimmer (1985), with a
median of 40%. A large number of factors may
contribute to the low response rate. Bailey (1982)
contended that response rates to social science
research are declining due to saturation. However,
the articles reviewed revealed an insignificant relationship between time and response rate to ethics
research (r = -0.08,p > 0.31, n = 42).
The cause of the low response rate to surveys in
business ethics research probably lies more in the
nature of the research topic. Business ethics is a
particularly delicate topic to research. Managers may
not want to have their "ethics" observed or measured
directly (Trevino, 1986), and few employees may be
willing to divulge information to researchers that
might be incriminating to them or to their friends.
Thus, people willing to participate in an experiment
or survey about ethics might have very different
attitudes than people more reticent to respond.
Due to the importance of acquiring an adequate
response rate, business ethics researchers may want
to consider three suggestions. First, they may want to
use "stronger" techniques to encourage a higher
response rate. These techniques might include
personal interviewing (which typically has a higher
response rate than survey research), targeting and
intensively surveying a subpopulation (for a more
personalized appeal), persuading respondents of the
importance of the research topic and their candid
answers (in the cover letter as well as on the questionaire), or flee gifts provided with the survey (such
as financial incentives or donations to charities) (see
Dillman, 1978, for a more complete discussion of

Methodology
these and other techniques to enhance the response
rate).
Second, researchers could seek to determine if
nonrespondents differ in any significant way from
respondents. For example, Armstrong and Overton
(1977) discussed the feasibility of using subjective
estimates and extrapolation methods to estimate
uonresponse bias. Of the business ethics studies
reporting a response rate less than 60%, only one
study (Chonko and Hung, 1985) compared demographics of respondents and nonrespondents to assess
the possibility of a response bias. A number of
other studies (e.g., Browning and Zabriskie, 1983;
Carroll, 1975; Fritzsche and Becker, 1984; Vitell and
Festervand, 1987) cited extensive demographic detail
on the respondents, but failed to state how those data
compared with characteristics ofnonrespondents.
Finally, when a low response rate is obtained and
comparable data on respondents are not available,
researchers may want to warn readers not to generalize beyond the sample. For instance due to an
unexpectedly low (40%) response rate, Lincoln et al.
(1982) cautioned readers not to generalize to firms
beyond those in the sample. However, even if a
caveat is incorporated into the article, one might
question the utility of the study and its contribution
to the literature.

Selection of researchdesign
As reflected in Table II, survey research was clearly
the most common research design used by business
ethics researchers (81% of the studies). Other designs,
utilized much less frequently, included lab experiments and simulations (6%), in-person interviews
(4%), and a combination of in-person interviews and
surveys (3%).

Survey research. Survey research used either a direct


question format or scenarios. When a direct question
format was used, researchers typically asked respondents how they felt about a particular issue or if
they would engage in a particular practice. Respondents were presented with an average of 19 questions
one sentence in length. When scenarios were used,
respondents were typically presented with a hypothetical situation and asked to indicate how they

465

would behave in that situation. Most often respondents were presented with 12 scenarios (with as few as
one scenario and as many as 37), with each scenario
averaging five sentences in length.
The key problem with both the direct question
and scenario formats is vagueness and generality.
The problem situation is described so briefly to the
respondent that it is difficult for him or her to
evaluate and for the researcher to attain any reasonable degree of within-subject reliability. Ethical
choice is commonly believed to be situationally
specific; the "best" action is not based on pre-existing
values, but upon specifics of the action choice
(Barnett and Karson, 1987). Contextual variables,
such as the influence and actions of peers and
managers, available rewards and punishments, and
the probability of detection, may be essential pieces
of information for realistic decision-making.
Two examples from the literature illustrate the
problem of ambiguous and vague questions and
scenarios. Using a previously developed instrument,
Norris and Gifford (1988) asked respondents to
express their agreement or disagreement with the
action taken in the following situation: "A customer
calls the retailer to report that her refrigerator
purchased two weeks ago is not cooling properly and
that all the food has spoiled. Action: The customer
should be reimbursed for the value of the spoiled
food." Hawkins and Cocanougher (1972) asked
students how ethical or unethical the following
situation was: "A large manufacturer of technical
equipment requires that all its salesmen dress 'conservatively' in dark suits with white shirts." When
provided with such one-sentence descriptions and
no other contextual information, the only defensible
answer to the question, "What would you do?" is
probably, "It depends." (Frederiksen, Jensen, and
Beaton, 1972).
Scenarios and questions clearly need to be developed with a greater concern for realism. Fredrickson
(1986) suggested a detailed methodology for developing scenarios in strategy research which can also
be very appropriate in business ethics research.
Structured interviews are conducted to identify
issues facing the industry and possible actions on the
part of respondents. A scenario is developed using
industry-specific terminology, usually with enough
detail for five, single-spaced pages. A pilot test is
then conducted to ensure that the scenario and

466

D. M. Randall and A. M. Gibson

accompanying questions are understandable and an


accurate portrayal of the situation. The procedure
provides all respondents with a standardized stimulus, sets forth a reasonably realistic, detailed situation, and the situation is written in such a way that it
generates the respondent's interest and therefore
"involvement" (Fredrickson, 1986).
In addition to the problem of vague scenarios and
questions, a secondary problem accompanying survey research methodology relates to the heavy use of
close-ended quer4ions. Respondents are frequently
asked to describe what they would do in a given
situation by responding to close-ended questions.
The respondent does not have to devise a solution he or she merely has to evaluate those presented to
him or her (Frederiksen et al., 1972). Problems do not
typically present themselves in multiple-choice
form. Sometimes it is necessary to invent a solution
rather than to choose one of several presented
(Frederiksen et al., 1972). Furthermore, close-ended
questions are most appropriate when researchers
have a well-defined issue and know precisely what
dimension of thought they want the respondent to
use in providing an answer (Dillman, 1978). As
business ethics research is in an embryonic stage
(Laczniak and Inderrieden, 1987), feasible behavioral
choices remain loosely defined.
Despite the recognized difficulty of evaluating
essay answers and the possible biasing effect of verbal
facility (Frederiksen et al., 1972), a free-response
format to questions and scenarios may be superior to
the close-ended format typically used in business
ethics research. However, the review of empirical
research revealed that a free-response format was
used in only five articles (Fritzsche and Becker, 1984;
Laczniak and Inderrieden, 1987; Mayer, 1988; Posner
and Schmidt, 1987; Stoffman, 1987).
In brief, the questions and scenarios used in
survey research are typically too vague and lack
realism, while the close-ended questions force responses into pre-defined categories. Fredrickson's
article (1986) provides a detailed description of how
more valid questions and scenarios can be developed,
and the use of more open-ended questions can help
overcome difficulties posed by the use of closeended questions.
Laboratory designs. Unlike survey research, laboratory
research permits the examination of causal relation-

ships and the control of exogenous variables. Within


the context of a lab experiment, in-basket exercises
(e.g., Laczniak and Inderrieden, 1987) and computer
simulations (e.g., Hegarty and Sims, 1978) can be
used.
Despite the advantages of lab research, at present
little is done from an experimental design point of
view (Laczniak and Inderrieden, 1987) (also see
Table II). While only six of the 94 articles utilized a
laboratory design, these articles demonstrate the
potential value of laboratory research. For instance,
using a computer simulation, Hegarty and Sims
(1978) measured the effects of potential rewards and
punishments on students paying kickbacks in simulated business situations. The experimental design
consisted of a 3 3 factorial analysis of variance
with selected personality and demographic variables
as co-variates. Subjects entered decisions into an
on-line time-shared computer program, allowing
experimental control over key variables and an
assessment of causal relationships.
In-person interviews. In-person interviews can be very
useful in exploratory stages of a research project for
developing an understanding of a phenomenon.
However, only seven of the 94 articles used inperson interviews as a research design. Four of these
articles relied solely upon in-person interviews for
data collection (Bird and Waters, 1987; Mayer, 1988;
Waters and Bird, 1987; Waters et al., 1986), while the
three other studies used a combination of in-person
interviews and survey research (Avlonitis, 1983;
Rudelius and Buchholz, 1979; Schutte, 1965).
For in-person interviews to be useful, a complete
description of findings is needed. All four studies
relying exclusively on in-person interviews contained an extensive discussion of the findings from
open-ended interviews. Of the studies using a combination of in-person interviews and surveys, Schutte
(1965) and Avlonitis (1983) also provided a fair
amount of methodological detail and discussion of
findings from the personal interviews. However, the
remaining study (Rudelius and Buchholz, 1979)
offered little detail about who and how many
individuals were interviewed and the results of those
personal interviews. In brief, in-person interviews
can serve a valuable role in exploratory research on
ethical beliefs and conduct if findings are sufficiently
detailed.

Methodology
Observation
In business ethics research, self-report data are
almost invariably used as an observation technique as
few alternative techniques exist. In fact, the review of
empirical research revealed that self-report data
were relied upon in almost 90% of the research
articles (all research designs involving surveys or
interviews).
Unfortunately, major differences often occur
between what people say they would do and what
they actually do. The use of self-report data raises
problems in that respondents may organize their
responses in light of what they feel "others" will
expect is appropriate for someone like them in a
particular kind of situation. Somewhat apprehensive
about the confidentiality of their responses and the
relationship of researchers to managers, respondents
may be sensitive when answering questions about
their ethical beliefs and conduct.
The tendency of respondents to deny socially
undesirable traits, to claim socially desirable ones,
and to say things which place the speaker in a
favorable light has been termed a "social desirability"
bias (Nederhof, 1985). A social desirability bias may
cause individuals to overreport actions that are
perceived to be socially desirable ("ethical" conduct)
and to underreport behavior ("unethical" conduct)
perceived to be socially undesirable. It is also possible
that respondents may overstate the difference between their ethical beliefs and actions and the beliefs
and actions of others.
A number of empirical research articles have
employed questions that are highly susceptible to a
social desirability bias. For instance, Brown and King
(1982) asked respondents to indicate agreement or
disagreement with the following statement, "Ethical
practices are good business in the long run." When
asking respondents what they would do in a particular situation, Krugman and Ferrell (1981) gave
respondents such options as, "Manipulating a situation to make a subordinate look bad," or "Divulging
confidential information." The wording of such
statements would clearly seem to encourage a social
desirability bias.
It is admittedly difficult to counter social desirability biases. Phillips and Clancy (1970) contended
that the usual precautions for eliminating the
possible effects of the bias (e.g., assuring anonymity

467

and stressing that there are no right or wrong


answers) will typically not eliminate the influence of
respondents' desire to place themselves in a favorable
light. However, steps can and should be taken to
reduce this bias. For example, the Crowne-Marlowe
Social Desirability (SD) Scale (Crowne and Marlowe,
1964), used by Stevens (1984), can help detect a social
desirability bias. In addition, Nederhof (1985) has
provided a comprehensive review of techniques to
reduce or prevent social desirability bias.

Analytic techniques
Data processing and analysis refer to the transformation of data into a form suitable for analysis and
drawing conclusions regarding the specified theory
or hypotheses. One data analytic technique is not
necessarily superior to another; the appropriateness
of the technique depends primarily upon the theory,
research hypotheses, and available data. In descriptive studies and especially exploratory ones, univariate statistics (means, modes, percentages, or
standard deviations) may be in order. If the interrelation of two or more variables is the object of interest,
a bivariate or a multivariate presentation of data may
be more appropriate.
The business ethics articles reflected a heavy
reliance on univariate and bivariate statistics (Table
II). Thirty-five percent (33) of the articles reported
only univariate statistics (with 27 articles reporting
only percentages, three articles reporting only means,
and two articles reporting only rank orders). Fortysix percent (43) of the articles used some form of
bivariate statistics (primarily t-tests), and 19% (18) of
the articles used some form of multivariate analysis
(e.g., analysis of covariance, multiple regression, or
loglinear logit analysis.)
Without complete methodological detail and an
understanding of the purpose of the research project,
it is difficult to specify which form of statistical
analysis should have been used. However, one might
anticipate that as research on business ethics progresses, the reliance on multivariate statistics will
increase. Indeed, a strong empirical relationship
between the passage of time and use of multivariate
statistics (r = 0.39, p < 0.001, n = 94) can be
detected.

468

D. M. Randall and A. M. Gibson

Recommendations and conclusions


After conducting structured personal interviews
with more than 50 scholars in the area of ethics,
Fleming (1987) concluded that researchers are somewhat dissatisfied with the present methodologies and
are searching for new ones. From the review of
empirical research, it appears that the dissatisfaction
is jusffied; the methodology in business ethics
research is clearly in need of improvement. However,
in addition to searching for new methodologies,

business ethics researchers may simply need to apply


more conscientiously and to report more fully
methodologies currently in use.
As summarized in Table III, the critical review of
methodological decisions has identified key weaknesses, strengths, and areas in need of improvement
in business ethics research. Unfortunately, Table III
reveals that decisions made early in the research
process (specification of theory, development of
hypotheses, conceptualization decisions, and operationalization decisions) are most susceptible to criti-

TABLE III
Relative strengths and weaknessesof research decisions
Research stage
Theory development
Hypotheses
Conceptualization
Operationalization
reliability
validity
pretesting
Population and
sampling decisions
study population

relative strength

possible improvements

weak
weak
weak

Specificationof theory
Specification of hypotheses
Offer definition of ethical
conduct to reader and study
participants

weak
weak
weak

Use more reliable instruments


Use more valid instruments
Use more pretests

strong

Managerial samples for


beliefs; student samples
acceptable for decision-making
Less reliance on convenience
samples
Consider population
parameters, design, purpose
and analysis
Use techniques to enhance
response rate

sample design

moderate

sample size

moderate

response rate

weak

Selection of the research


design
survey research

weak

laboratory research

strong

in-person interviews

moderate

Observation

weak

Data analysisand processing

moderate

Need more specificand


realistic questions and
scenarios
Continue to use lab and
simulations
Need fuller findings and
description
Reduce socialdesirability
bias
Less reliance on univariate
statistics

Methodoloaoy
cism, establishing a shaky foundation for decisions
made in subsequent steps of the research process.
Thus, methodological improvement in these initial
steps in the research process should have the highest
priority at this time.
To encourage more methodological rigor in
empirical research, editors of journals publishing
empirical business ethics research may consider
adopting a structured referee rating form asking
reviewers to assess the methodological rigor of the
study. Such a form would not supplant traditional
substantive reviews; it would be provided as supplemental to the open-ended responses typically solicited from reviewers.
Editors of journals might also invite a methodologist in addition to substantive reviewers to
comment on papers submitted for review, ask that
one of the substantive reviewers specifically review
the paper for methodological adequacy, or solicit
commentaries to be published along with the paper.
Such modifications in the review process should
encourage greater attention to and consideration of
methodological issues on the part of potential
authors, reviewers, and editors.
While all empirical articles need to demonstrate a
concern for more methodologically rigorous articles,
TheJournal of Business Ethics may want to take a lead
in this effort as it is regarded as the "flagship'journal
in ethics research. Yet, a comparison of the 32
articles published in Journal of Business Ethics against
the remaining 62 articles across all the methodological dimensions discussed above revealed no substantive methodological differences, with one exception.
The Journal of Business Ethics tended to publish fewer
studies using mail survey research than non-Journal
ofBusiness Ethics articles (i.e., 28% of Journal of Business
Ethics articles used a mail survey approach vs. 56% of
non-Journal of BusinessEthics articles).
It was also interesting to note that the more
"rigorous" journals, in terms of lower acceptance
rates, did not generally publish more methodologically rigorous articles. No substantive methodological differences were detected between studies published in high and low acceptance journals, with
again the one exception of research design. Journals
with low acceptance rates (i.e., more rigorous journals) tended to publish more mail surveys than
journals with high acceptance rates (i.e., less rigorous
journals). Specifically, 68; of the articles in journals
with low acceptance rates used a mail survey

469

approach vs. 30% of the articles published in journals


with high acceptance rates).
In sum, while it would be desirable to make all of
the refinements suggested above, it is important to
recognize that research in any area involves tradeoffs between the desirable and the practical (Bailey,
1982). Due to difficulties presented by such a
sensitive research topic as business ethics, researchers
may never be able to approach the study of business
ethics with an "ideal" scientific research process.
However, with complete reporting of methodological decisions and the consideration of as many
refinements in the review process as possible, a solid
methodological foundation can be established and
that foundation can make a substantial contribution
to understanding and improving the ethical climate
of organizations.

Acknowledgement
The authors wish to thankJ. Scott Armstrong for his
comments on an earlier version of the manuscript.

Notes
1 Because the search was not exhaustive, no argument is
made that all empirical research articles on ethical beliefs
and behavior have been included. For instance, research on
business ethics appearing in books, book chapters, and
conference papers have not been analyzed.The data gathering procedure also suffers from whatever limitations may be
said to accompany the publication decisions of the journals
incorporated within the data bases.
2 Limited empirical investigation of ethical beliefs and
behavior has taken place (Trevino, 1986). Most articles
approach ethics from a nonempirical perspective, e.g.,
developing theoretic models of ethical decision-making (e.g.,
Trevino, 1986; Bommer et al., 1987), specifying taxonomies
of moral rules (e.g., Forsyth, 1980), or providing practical
guidance to managers (e.g.,Laczniak, 1983).

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Department of Management and Systems,


Washington State University,
Pullman, WA 99164-4726,
U.S.A.

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