The practical reality theory and business ethics in non-Western context: Evidence from Jordan

Abstract

This study is aimed at investigating the degree to which business managers in developing countries adhere to business ethics with special reference to the case of Jordan and comparing results with findings of previous studies. This comparison is done to assess whether business managers in different countries make compromises in their ethical stance under pressure of practical reality; and exploring the links (if any) between each of company's features and manager's characteristics and ethical orientations of business managers. Achieving the above objectives can help in assessing the universal theory of business ethics. Results indicate that the ethical orientations of Jordanian business managers are positive on certain aspects and negative on others. For instance, padding an expense account was considered unethical with a mean of 5.30 reflecting relatively high ethical orientation. On the contrary, giving gifts to purchasing agents was not perceived unethical. The mean for this vignette was 3.29 indicating unethical stance of the respondents. The findings seem to converge with previous studies in the region. Results also validate the practical reality theory, which is based on the notion that business managers make compromises in their ethical beliefs under pressures of reality. Recommendations are made to upgrade the ethical awareness of subjects and incorporate business ethics in their companies' policies and plans.