Cultural influence in the ethical decision making process: The perspective of Malaysian managers

Abstract

This research explores the influence of culture, measured by the two dimensions of GLOBE's study (In Group Organization and Power Distance), in the ethical decision-making process. It also examines the relationship among components of the process. A sample of 236 managers from Malaysian large organizations was collected, and Partial Least Square based on Structural Equation Modelling technique was used to test the expected relationships. Results confirm the influence of in-group collectivism on the ethical decision-making process follows a sequential process. From a theoretical perspective this study provides valuable insight to evaluate the validity of existing theory as proposed in the literature. From a practical perspective the study provides useful recommendations for organizations to develop policies and programs to encourage ethical behaviour. Although this study focuses on Malaysian context, it helps global marketers to increase their knowledge of cultural differences and become more sensitive to them. Ethical Decision-Making (EDM) has received considerable attention from scholars seeking to understand ethical behavior. An increasing number of theoretical frameworks have been proposed to describe such behavior. Despite the notion that EDM is a very challenging area due to its multitude of complex factors, the influence of culture has been theorized as an important determinant of such behavior.