An Empirical Investigation of Locus of Control and the Structure of Moral Reasoning: Examining the Ethical Decision-Making Processes of Sales Managers

Abstract

A study of sales managers examines the utility of locus of control to predict managers' moral reasoning and its effect on ethical decision-making. Results indicate that external managers attach greater importance to teleological and act-oriented reasoning than do internals. To form ethical judgments, internal managers rely more on deontological evaluations than externals. In forming behavioral intentions, external managers rely more on teleological evaluations than internals.For managerial practice, the findings suggest that internal managers exhibit harsher judgments of bribery, less intention to pay a bribe, and greater emphasis on rule-based decision-making. Internals' preference for deontological reasoning is related to behavior-based control and supervision structures, possibly leading to improvements in organizations' ethical climate.