The Influence of Ethical Control Systems and Moral Intensity on Sales Managers’ Ethical Perceptions and Behavioral Intentions

Abstract

In order to discourage employees from behaving unethically, organizations have instituted compliance - based strategies such as adopting codes of ethics and punishing employees who violate the code. However, another important way that organizations can encourage ethical behavior is to adapt a culture that emphasizes shared values (integrity – based strategy). This study analyzes how a corporation’s ethical control system that encompasses both compliance and integrity – based strategies impacts sales managers’ ethical perceptions and intention to behave unethically. Using two scenarios the results indicate that ethical control systems and perceived moral intensity are related to sales managers’ ethical perceptions and reaction to unethical behavior.