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Convergence in International Business Ethics? A Comparative Study of Ethical Philosophies, Thinking Style, and Ethical Decision-Making Between US and Korean Managers

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Abstract

This study investigates the relationship among ethical philosophy, thinking style, and managerial ethical decision-making. Based on the premise that business ethics is a function of culture and time, we attempt to explore two important questions as to whether the national differences in managerial ethical philosophies remain over time and whether the relationship between thinking style and ethical decision-making is consistent across different national contexts. We conducted a survey on Korean managers’ ethical decision-making and thinking style and made a cross-cultural, cross-temporal comparison with the results presented by previous studies that surveyed Korean and US managers with the same questionnaire at different points in time. Our analysis revealed that Korean managers have become more reliant on rule utilitarianism for ethical decision-making over the last two decades, which is dominantly used by US managers, corroborating our convergence hypothesis built on social contracts theory. However, as opposed to previous research, we found that managers with a balanced linear and nonlinear thinking style do not necessarily make more ethical decisions compared to those with a predominantly linear or nonlinear thinking style. This study contributes to international business ethics literature by presenting a theoretical framework that may explain the convergence of ethical philosophies employed by managers in different national contexts over time, and that the relationship between thinking style and managerial ethical decision-making may not be universal, but contingent on contextual factors.

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Authors and Affiliations

  1. Department of Management, Loyola Marymount University, Los Angeles, CA, 90045, USA

    Yongsun Paik

  2. Henley Business School, University of Reading, Reading, RG6 6UD, UK

    Jong Min Lee

  3. Yonsei School of Business, Yonsei University, Seoul, 03722, Korea

    Yong Suhk Pak

Authors
  1. Yongsun Paik
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  2. Jong Min Lee
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Correspondence to Yongsun Paik.

Appendix

Appendix

Linear–Nonlinear Thinking Style Profile

We utilized the Linear–Nonlinear Thinking Style Profile (LNTSP) developed by Vance et al. (2007) to measure the thinking style of respondents. This model defines linear thinking style as a preference for attending to external, tangible data and facts, and processing this information to make decisions. Nonlinear thinking style is defined as a preference for attending to internal feelings, impressions, and sensations, and processing this information both consciously and subconsciously to make decisions. Therefore, each of the two general thinking styles (i.e., linear vs. nonlinear) involves both attending to a particular kind of information source (internal vs. external) and subsequent mental processing of that information. The self-report LNTSP has demonstrated strong convergent validity vis-à-vis conceptually similar instruments such as the Myers–Briggs Type Indicator (MBTI) and Cognitive Style Index (Allinson and Hayes 1996), strong external and face validity across student, professional, and managerial samples, and encouraging predictive validity in workplace contexts (Groves et al. 2008; Vance et al. 2007).

The LNTSP contains two sets of paired forced-choice items and corresponding scales of measurement. The first set of forced-choice items includes five pairs of statements that describe alternative behaviors. Using a Likert-type scale (3 = very often, 2 = moderately often, 1 = occasionally, and 0 = rarely or never), respondents were asked to allocate exactly three points across each pair of alternative statements according to how frequently they perform such behaviors. The second set of forced-choice items includes eight paired words or phrases that influence behaviors. Using a Likert-type scale (3 = very strong influence on how I behave, 2 = strong influence on how I behave, 1 = moderate influence on how I behave, and 0 = little or no influence on how I behave), respondents were asked to allocate exactly three points across each pair of alternative words or phrases. The LNTSP measures used in this study are presented as follows:

Linear decision-making (LDM) and Nonlinear decision-making (NDM)

 1

I primarily rely on logic when making career decisions

I primarily rely on my feelings when making career decisions

 2

I primarily weigh quantitative factors when making a decision about a large purchase or investment, such as my age, budget needs, or future earnings

I primarily weigh qualitative factors when making a decision about a large purchase or investment, such as my gut feelings or a sense that the decision is right for me

 3

When my analysis and intuition are in conflict, I give precedence to my intuitive insights

When my analysis and intuition are in conflict, I give precedence to my analytical reasoning

 4

The most important factor in making life-altering changes (such as a career change) is feeling it is right for me

The most important factor in making life-altering changes (such as a career change) is knowing that the change is based on objective, verifiable facts

 5

When making important decisions, I pay close attention to when a number of people with well-justified expertise give me the same advice

When making important decisions, I pay close attention to when I experience a ‘knowing in my bones,’ chills, tingling or other physical sensations

External information sources (EIS) and Internalinformation sources (IIS)

 1

Concepts vs. Instincts

 2

Empathy vs. Rationality

 3

Reason vs. Felt Sense

 4

Inner Knowing vs. Logic

 5

Feelings vs. Facts

 6

Proof vs. Heartfelt

 7

Data vs. Hunch

 8

Intuition vs. Deduction

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Paik, Y., Lee, J. & Pak, Y. Convergence in International Business Ethics? A Comparative Study of Ethical Philosophies, Thinking Style, and Ethical Decision-Making Between US and Korean Managers. J Bus Ethics 156, 839–855 (2019). https://doi.org/10.1007/s10551-017-3629-9

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