Epistemology, Moral Philosophy and Optimism: A Comparative Analysis Between Managers and their Subordinates

• Author: Mohammed Y.A. Rawwas,Hadi Abdul‐Rahman Hammoud,Karthik N.S. Iyer
• DOI: http://doi.org/10.1111/basr.12161
• Published date: 01 March 2019
• Date: 01 March 2019

Business and Society Review124:1 5–42

© 2019 W. Michael Hoffman Center for Busi ness Ethics at Bentley Un iversity. Published by

Wiley Period icals, Inc., 350 Main St reet, Malden, MA 02148, USA, and 9 600 Garsington

Road, Oxford OX4 2DQ, U K. DOI: 10.1111/basr.12161

Epistemology, Moral

Philosophy and Optimism:

A Comparative Analysis

Between Managers and their

Subordinates

MOHAMMED Y.A. RAWWAS, HADI ABDUL-RAHMAN HAMMOUD

and KARTHIK N.S. IYER

ABSTRACT

The process of making ethical judgments is much more

complex than studying only personal moral philosophy

variables (idealism and relativism). The renewed interest

in epistemic values (virtue and vice epistemology) in con-

temporary philosophy has shown significant relevance to

understanding ethical behavior and such values may be

better predictors than studying only idealism and relativ-

ism. The purpose of this exploratory study is to examine

employees’ personal moral philosophies, optimism, epis-

temic values, and various organizational unethical prac-

tices as compared to their managers. We used Rawwas’

items of epistemology in this study. The sample consisted

Mohammed Y.A. Rawwas is a Professor of Marketing, University of Northern Iowa, Cedar

Falls, IA 50614-0126. E-mail: rawwas@uni.edu. Hadi Abdul-Rahman Hammoud Lebanese

America n University/Al Mawarid Ban k, Instructional P ractitioner/Deputy General M anager-

Chief Commerci al Officer, Beirut, L ebanon, E-mail: ha mmoud.hadi@gmail.com. K arthik N.S.

Iyeris a Professor of Marketing, University of Northern Iowa, Cedar Falls, IA 50614-0126.

E-mail: Kar thik.Iyer@uni.edu.

6BUSINESS AND SOCIETY REVIEW

of 262 managers and employees. The results revealed

that managers were more sensitive to organizational

unethical practices, scored less on epistemic vices, less

on absolutism, and more on exceptionalism than employ-

ees were. However, there was no difference between man-

agers and employees related to moderate and minor

unethical organizational practices, situationism, subjec-

tivism, optimism, and epistemic virtues. We provided dis-

cussion of the results and implications.

INTRODUCTION

Organizational managers may fashion and influence cor-

porate culture, resulting in ethical or unethical decision

making. Ethical leaders help their subordinates suitably

respond to challenging ethical situations. Differential association

theory contends that people learn ethical or unethical behavior

while interacting w ith their peers and superiors (Ferrell et al. 2013).

Research has found that managers and subordinates are mostly

influenced by the ethics and culture of their organization (Global

Sullivan Principles of Social Responsibility 2010), and they tended

to go along with existing norms to demonstrate loyalty (Ferrell

et al. 2013). However, making an ethical decision is very compli-

cated task because the process of determining what is right or

wrong is subjective and vary according to one’s moral philosophy,

his or her organizational moral climate, and individual’s circum-

stances (Frank 2000). What may be the right decision in a par-

ticular situation may be wrong in another. To help comprehend

the moral climate at business organizations, the purpose of this

exploratory study is to understand and compare the moral philos-

ophies, epistemology traits, and ethical practices of managers and

their subordinates in a business setting.

Most studies have used personal moral philosophies (idealism

and relativism) to understand ethical practices, and have pro-

duced several contributions to business ethics (Hunt and Vitell

1992; Rawwas et al. 2005, 2006, 2007), but the process of mak-

ing ethical judgments is much more intricate than studying only

these two variables. By combining idealism and relativism scales,

7RAWWAS, HAMMOUD, AND IYER

we may have four-construct model (i.e., situationists, absolutists,

subjectivists, and exceptionalists, please see definitions in p. 10),

that may represent basic moral philosophy theory better than the

two-dimensional model (Forsyth 1980; Rawwas 1996). In addition,

the renewed interest in epistemology of contemporary philosophy

has shown significant relevance to understanding ethical behav-

ior, and may also be a better predictor than studying idealism

and relativism exclusively (Brady and Pritchard 2006; Buchanan

2009; Goldberg 2009; Lahroodi 2006; Rawwas et al. 2013). In the

next section, we will explore how epistemology and personal moral

philosophies differ and complement each other.

Epistemology is a subdivision of philosophy that assesses op-

posing opinions related to nature, standards, foundations, and

functions of knowledge. Different people may reach different as-

sessments depending on whether they possess epistemic virtues

or epistemic vices. People with epistemic virtues have positive

attitudes toward moral exploration and enthusiastically evalu-

ate ethical situations based on their disposition, intellect, expe-

rience, existence, and knowledge (Rawwas et al. 2013). They are

open-minded, curious, careful thinkers, creative, and intellectu-

ally courageous (Corlett 2008; Flood 2008; Kawall 2002; Lahroodi

2007; Montmarquet 2008; Riggs 2010; Todd 2007). People with

epistemic vices, by contrast, tend to have myopic opinions of moral

and intellectual life and hence resist analyzing or understanding

moral situations (Wood 1998). They are closed-minded, intellectu-

ally overconfident, unimaginative, perceptually conforming, and

wishful thinkers. Epistemologists contend that belief is an ethical

process that is susceptible to the intellectual virtue or vice of one’s

own life and personal experiences.

Due to the recent rise of the use of questionable organizational

practices, the purpose of th is exploratory study is to compare moral

characteristics of managers and employees, as well as to investi-

gate differences with respect to their work practices. Specifically, it

focuses on the following research questions:

1. Do managers and employees differ with respect to their

moral philosophies (i.e., situationists, absolutists, subjectivists,

and exceptionalists), optimism, and epistemic values (virtues

and vices)?