Abstract

The present investigation builds on previous research in ethical decision making in marketing. Numerous theoretical models have been presented in the literature. Little empirical validation exists for these models, however. Only the Hunt and Vitell model has been thoroughly tested, and results to date have been inconclusive. ;An aspect of the Hunt and Vitell model that has been reasonably substantiated is the use, by decision makers, of moral philosophical reasoning as antecedents to ethical judgments in their decision processes. The extent to which decision makers rely on deontological reasoning relative to teleological reasoning remains unclear, however. It it suggested in this investigation that perceived risk and locus of control will address questions raised by previous findings. A theoretical model is presented and several hypothesized relations are tested relative to the major independent variables--risk and locus of control, and the dependent variables--choice of moral rationale, ethical judgments, and behavioral intentions. ;Drawing on the managerial decision making model of MacCrimmon and Wehrung , perceived risk is operationalized as the result of insufficient time and information for decision making, in the context of a decision involving substantial probability and magnitude for undesirable outcomes. Locus of control is presented in this investigation as the best available measure of moral autonomy, and is hypothesized to differentially affect the components of the proposed model. ;Results indicate that increased risk perceptions lead subjects to endorse more strongly deontological statements and those emphasizing the importance of rules in moral reasoning. Also, locus of control externals justified their decisions based on the significance of individual acts , and teleological arguments . As for ethical judgments and intentions, locus of control internals and individuals in the high risk group exhibited greater disapproval of the behavior and less inclination to make the requested payment than locus externals and subjects in the lower risk group. ;The study presents several recommendations for future research and discusses the implication of the findings in the design of organizational codes of ethics.