The Indirect Effects of Cultural Values on Ethical Decision Making via Utilitarian Ethical Orientation

Abstract

We examined whether utilitarian ethical orientation mediates the relationships between three cultural values, long-term orientation, activity orientation, and universalism, and ethical decision making (EDM). To understand their role as antecedents to EDM, cultural values were examined at the individual level of analysis. Results indicated that act and rule utilitarian orientations significantly mediated the effects of universalism on EDM. When coupled with act utilitarian orientation, universalism accounted for 50% of the variability in ethical decisions compared to only 30% when coupled with rule utilitarian orientation. Implications for management practices and business ethics in multicultural and international corporations are discussed.