SECTION 5 FOCUS ON ONLY THE BUSINESS

�LEADERS� FOR 2003

SECTION 5 FOCUS ON ONLY THE BUSINESS LEADERS FOR 2003

INTRODUCTION

In this section, the focus is only on the business leaders for the 2003 study.� Table 5A presents a summary version of the information for each of the 47 attitudinal questions.� For each question, the percent that agreed with each statement is given.� In addition, the average response (low is positive) and the standard deviation for each question are provided.� The number of responses completes the information for each group for each question.� Questions 30 to 38 are given at the end of the table since their answers should have reflected �to what extent� instead of a SA to SD perspective.� See Table 5B for a clearer understanding of these questions.� Table 5B gives the percentage of respondents who either Strongly Agreed, Agree, gave No Opinion, Disagreed or Strongly Disagreed for each question.�

ANALYSIS

�One can examine the differences in the actual responses in these two tables depending upon his or her interest in the particular question and/or group.� A detailed analysis of the information in this section is beyond the scope of the project.

TABLE 5A.�� PERCENT OF THE BUSINESS LEADERS IN 2003 AGREEING WITH EACH STATEMENT (1 = SA; 5=SD)

QUESTION

Year

Type

Agree

Mean

Std.

Dev.

The corporation has a responsibility to take the lead in solving major social problems such as pollution,

discrimination, and safety.

2003

Business Leaders

76%

2.1

1.0

The corporation has a

responsibility to not become involved in solving social problems unless doing so becomes a cost of doing business or the opportunity to earn a profit.

2003

Business Leaders

11%

4.0

1.0

The corporation has the

responsibility to get involved in social responsibility projects because outside pressures make such� an involvement a cost of doing

Business

business.

2003

Leaders

35%

3.1

0.9

The corporation has a

responsibility to promote equal opportunity in hiring and promotion.

2003

Business Leaders

99%

1.3

0.5

The corporation has a

responsibility to promote conservation of energy even if doing so means a reduction in profits.

2003

Business Leaders

71%

2.4

1.0

The corporation has a

responsibility to conserve natural resources, even if doing so means a reduction in profits.

2003

Business Leaders

70%

2.4

1.0

The corporation has a

responsibility to clean up or avoid causing air, noise, and water pollution even if doing so means a reduction in profits.

2003

Business Leaders

92%

1.9

0.8

The corporation has a

responsibility to contribute money and management time to civic activities in communities where the firm has plants or offices.

2003

Business Leaders

88%

1.7

0.9

The corporation has a

responsibility to help minority owned businesses.

2003

Business Leaders

56%

2.6

1.1

The corporation has a

responsibility to be truthful in advertising.

2003

Business Leaders

99%

1.2

0.4

The typical business

executive has two sets of ethical standards, one which he/she applies to business activities and another which is applied to his/her private life.

2003

Business Leaders

12%

4.3

1.0

Ethical standards in business

are lower than in government.

2003

Business Leaders

11%

4.2

0.9

Ethical standards in business

are lower than in most religious organizations.

2003

Business Leaders

28%

3.5

1.2

Ethical standards in business

are lower than in the typical American family.

2003

Business Leaders

19%

3.8

1.1

The ethical standards used in

business are as high as those practiced with family and friends.

2003

Business Leaders

67%

2.5

0.9

Occasionally, business

people make decisions that are right for business but which are inconsistent with their personal ethical principles.

2003

Business Leaders

59%

2.8

1.1

Much advertising done by

business is misleading to the consumer.

2003

Business Leaders

29%

3.3

1.0

Effective advertising may

have to be somewhat misleading.

2003

Business Leaders

4.1

0.8

It is in the long run self-

interest of business to protect

Business

the customer.

2003

Leaders

91%

1.8

0.8

The average customer is less

ethical in dealing with business than the business is in dealing with that customer.

2003

Business Leaders

31%

3.1

1.0

No employee should be

required to engage in business practices that employee considers unethical.

2003

Business Leaders

87%

1.7

0.9

In accepting an employment

offer each employee implicitly agrees to abide by the ethical standards of the employer, even if the company standards differ from those of the employee.

2003

Business Leaders

53%

2.8

1.2

Wages and salaries should

vary according to an employee�s productivity.

2003

Business Leaders

88%

1.8

0.8

Wages and salaries should

vary according to both the employee�s productivity and years of service with the firm.

2003

Business Leaders

49%

2.9

1.1

Wages and salaries should

vary primarily with the employee's years of service with the firm.

2003

Business Leaders

4.2

0.7

Labor unions serve a useful

purpose by prodding a particular management into fulfilling its responsibilities to labor.

2003

Business Leaders

29%

3.6

1.2

The corporation should seek

to maximize short run profits.

2003

Business Leaders

29%

3.4

1.2

The corporation should seek

to earn a satisfactory rate of return for stockholders.

2003

Business Leaders

99%

1.5

0.5

The ethical standards in

competition are determined by the least ethical competitor.� If one firm engages in unethical conduct, the others will have to follow to survive.

2003

Business Leaders

4.5

0.6

All institutions in our society

should seek to protect and promote the interests of individuals.

2003

Business Leaders

34%

3.1

1.0

Individual freedom may have

to be partly restricted in order for organizations to effectively function.

2003

Business Leaders

56%

2.7

1.1

Government should

redistribute income in order to assure a minimum standard of living for all citizens.

2003

Business Leaders

23%

3.7

1.1

Government should provide

incentives for business to get involved in solving social problems.

2003

Business Leaders

55%

2.8

1.1

Truth in lending regulations

are needed to protect the

Business

customer.

2003

Leaders

86%

2.0

0.8

Antitrust laws prohibiting

price fixing benefit the customer.

2003

Business Leaders

85%

2.1

0.8

Lazy or incompetent

employees should be fired.

2003

Business

Leaders

86%

1.9

0.9

A company should have

formal policies to guarantee that every employee has an equal opportunity for promotion, pay increases, and other rewards provided by the firm.

2003

Business Leaders

86%

1.8

1.0

The corporation should seek

to maximize long run profits.

2003

Business Leaders

93%

1.7

0.8

To what extent are ethical

standards influenced by peer group pressures?

2003

Business Leaders

55%

2.8

1.0

To what extent are ethical

standards influenced by prevailing industry practice?

2003

Business Leaders

66%

2.6

1.0

To what extent are ethical

standards influenced by perceived preference of top executives?

2003

Business Leaders

81%

2.2

0.9

To what extent are ethical

standards influenced by family experiences?

2003

Business Leaders

83%

2.2

0.8

To what extent are ethical

standards influenced by church experiences?

2003

Business Leaders

74%

2.4

0.9

To what extent are ethical

standards influenced by your educational experiences?

2003

Business Leaders

83%

2.2

0.7

To what extent are ethical

standards influenced by company's ethical code or policy?

2003

Business Leaders

90%

1.9

0.8

To what extent are ethical

standards influenced by professional ethical code?

2003

Business Leaders

85%

2.0

0.8

To what extent are ethical

standards influenced by society's moral climate?

2003

Business Leaders

75%

2.3

0.9

TABLE 5B.�� PERCENT OF THE BUSINESS LEADERS IN 2003 PROVIDING THEIR DEGREE

OF AGREEMENT WITH EACH STATEMENT (1=SA;� 5=SD)

QUESTION

Year

Type

%SA

%NO

%SD

�� 1

The corporation has a responsibility to take the lead in solving major social

problems such as pollution, discrimination, and safety.

2003

Bus. Leaders

�� 2

The corporation has a responsibility to not become involved in solving social

problems unless doing so becomes a cost of doing business or the opportunity to earn a profit.

2003

Bus. Leaders

�� 3

The corporation has the responsibility to get involved in social responsibility

projects because outside pressures make such� an involvement a cost of doing business.

2003

Bus. Leaders

�� 4

The corporation has a responsibility to promote equal opportunity in hiring and

promotion.

2003

Bus. Leaders

�� 5

The corporation has a responsibility to promote conservation of energy even if

doing so means a reduction in profits.

2003

Bus. Leaders

�� 6

The corporation has a responsibility to conserve natural resources, even if doing

so means a reduction in profits.

2003

Bus. Leaders

�� 7	The corporation has a responsibility to clean up or avoid causing air, noise, and water pollution even if doing so means a reduction in profits.	2003	Bus. Leaders	26	66	2	5	2	2003
�� 8	The corporation has a responsibility to contribute money and management time to civic activities in communities where the firm has plants or offices.	2003	Bus. Leaders	53	35	6	5	2	66
�� 9	The corporation has a responsibility to help minority owned businesses.	2003	Bus. Leaders	14	42	24	15	5	66
10	The corporation has a responsibility to be truthful in advertising.	2003	Bus. Leaders	85	14	2	0	0	66
11	The typical business executive has two sets of ethical standards, one which he/she applies to business activities and another which is applied to his/her private life.	2003	Bus. Leaders	0	12	2	33	53	66
12	Ethical standards in business are lower than in government.	2003	Bus. Leaders	0	11	5	44	41	66
13	Ethical standards in business are lower than in most religious organizations.	2003	Bus. Leaders	5	23	15	32	26	66
14	Ethical standards in business are lower than in the typical American family.	2003	Bus. Leaders	2	17	11	45	26	66
15	The ethical standards used in business are as high as those practiced with family and friends.	2003	Bus. Leaders	6	61	9	24	0	66
16	Occasionally, business people make decisions that are right for business but which are inconsistent with their personal ethical principles.	2003	Bus. Leaders	6	53	6	29	6	66
17	Much advertising done by business is misleading to the consumer.	2003	Bus. Leaders	3	26	15	53	3	66
18	Effective advertising may have to be somewhat misleading.	2003	Bus. Leaders	0	8	8	56	29	66
19	It is in the long run self-interest of business to protect the customer.	2003	Bus. Leaders	35	56	3	6	0	66
20	The average customer is less ethical in dealing with business than the business is in dealing with that customer.	2003	Bus. Leaders	5	26	30	33	6	66
21	No employee should be required to engage in business practices that employee considers unethical.	2003	Bus. Leaders	55	32	5	9	0	66
22	In accepting an employment offer each employee implicitly agrees to abide by the ethical standards of the employer, even if the company standards differ from those of the employee.	2003	Bus. Leaders	14	39	12	27	8	66
23	Wages and salaries should vary according to an employee�s productivity.	2003	Bus. Leaders	36	52	6	6	0	66
24	Wages and salaries should vary according to both the employee�s productivity and years of service with the firm.	2003	Bus. Leaders	8	41	11	35	6	66
25	Wages and salaries should vary primarily with the employee's years of service with the firm.	2003	Bus. Leaders	0	3	6	61	30	66
26	Labor unions serve a useful purpose by prodding a particular management into fulfilling its responsibilities to labor.	2003	Bus. Leaders	3	26	9	33	29	66
27	The corporation should seek to maximize short run profits.	2003	Bus. Leaders	8	21	11	44	17	66
28	The corporation should seek to earn a satisfactory rate of return for stockholders.	2003	Bus. Leaders	52	47	2	0	0	66
29	The ethical standards in competition are determined by the least ethical competitor.� If one firm engages in unethical conduct, the others will have to follow to survive.	2003	Bus. Leaders	0	0	3	49	49	66
39	All institutions in our society should seek to protect and promote the interests of individuals.	2003	Bus. Leaders	2	32	25	37	5	65
40	Individual freedom may have to be partly restricted in order for organizations to effectively function.	2003	Bus. Leaders	6	50	14	24	6	66
41	Government should redistribute income in order to assure a minimum standard of living for all citizens.	2003	Bus. Leaders	2	21	11	38	29	66
42	Government should provide incentives for business to get involved in solving social problems.	2003	Bus. Leaders	8	47	14	26	6	66
43	Truth in lending regulations is needed to protect the customer.	2003	Bus. Leaders	21	65	6	6	2	66
44	Antitrust laws prohibiting price fixing benefit the customer.	2003	Bus. Leaders	20	65	8	6	2	66
45	Lazy or incompetent employees should be fired.	2003	Bus. Leaders	33	53	5	9	0	66
46	A company should have formal policies to guarantee that every employee has an equal opportunity for promotion, pay increases, and other rewards provided by the firm.	2003	Bus. Leaders	44	42	8	2	5	66
47	The corporation should seek to maximize long run profits.	2003	Bus. Leaders	46	47	3	5	0	66
30	* Ethical standards are influenced by peer group pressures?	2003	Bus. Leaders	2	53	13	28	5	64
31	* Ethical standards are influenced by prevailing industry practice.	2003	Bus. Leaders	3	63	8	25	2	64
32	* Ethical standards are influenced by perceived preference of top executives?	2003	Bus. Leaders	17	64	6	9	3	64
33	* Ethical standards are influenced by family experiences?	2003	Bus. Leaders	8	75	6	9	2	64
34	* Ethical standards are influenced by church experiences?	2003	Bus. Leaders	8	66	10	14	2	64
35	* Ethical standards are influenced by your educational experiences?	2003	Bus. Leaders	8	75	9	6	2	64
36	* Ethical standards are influenced by company's ethical code or policy?	2003	Bus. Leaders	27	63	3	6	2	64
37	* Ethical standards are influenced by professional ethical code?	2003	Bus. Leaders	27	58	8	8	0	64

* Ethical standards are influenced by society's moral climate?

2003

Bus. Leaders

Source:� �� 2003 Study of Ethics

* The actual question on the questionnaire was � * To what extent are ethical standards influenced by ��