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

Date01 March 2019
DOIhttp://doi.org/10.1111/basr.12161
Published date01 March 2019
Business and Society Review 124:1 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-RA HMAN HAMMOUD
and KAR THIK N.S. IYER
ABSTR ACT
The process of maki ng ethical judgments is much more
complex than studying on ly personal moral philosophy
variables (idealism a nd relativism). The renewed interest
in epistemic values (vir tue and vice epistemology) in con-
temporary philosophy has show n significa nt relevance to
understanding eth ical behavior and such values may be
better predictors than studying only idealism a nd relativ-
ism. The purpose of this e xploratory study is to exam ine
employees’ personal moral philosophies, optimism, epis-
temic values, and various organ izational unethical prac-
tices as compared to their m anagers. We used Rawwas’
items of epistemology in this study. The sample consisted
Mohammed Y.A. R awwas is a P rofessor of Market ing, Universit y of Norther n Iowa, Cedar
Falls, IA 50 614-0126. E-mail: raww as@uni.edu. Had i Abdul-Rah man Hamm oud 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 Profes sor of Marketin g, University of Nor thern Iowa, C edar Fall s, IA 50614-0126.
E-mail: Kar thik.Iyer@uni.edu.
6BUSINESS AND SOCIETY REVIEW
of 262 managers and employees. The results revea led
that managers were more sensitive to orga nizational
unethical practices, scored less on epistemic v ices, less
on absolutism, and more on exceptionalism tha n employ-
ees were. However, there was no difference between man-
agers and employees related to moderate and minor
unethic al organ ization al pract ices, situation ism, subjec-
tivism, optimism, and epistemic virtues. We provided dis-
cussion of the results and implication s.
INTRODUCTION
Organizationa l managers may fashion a nd influence cor-
porate culture, resulting i n ethical or unethical decision
making. Et hical leaders help their subordinates suitably
respond to challenging et hical situations. Differentia l association
theory contends that people learn et hical or unethica l behavior
while interacting w ith their peers and superiors (Ferrell et al. 2013).
Research has found that ma nagers and subordinates are mostly
inf luenced by the ethics and culture of thei r organization (Global
Sullivan P rinciples of Social Responsibilit y 2010), and they tended
to go along with ex isting norms to demonstrate loyalt y (Ferrell
et al. 2013). However, making an et hical decision is very compli-
cated task because the process of determining what is ri ght or
wrong is subjective and var y according to one’s moral philosophy,
his or her organizationa l moral climate, and ind ividual’s circum-
stances (Fra nk 2000). What may be t he right decision in a par-
ticular situation may be w rong in another. To help comprehend
the moral climate at business organizations, the purpose of t his
exploratory study is to understand a nd compare the moral philos-
ophies, epistemology traits, and ethica l practices of managers a nd
their subordinates in a business sett ing.
Most studies have used personal moral philosophies (ideal ism
and relativism) to understa nd ethical practices, a nd have pro-
duced several contributions to business ethics (Hunt and Vitell
1992; Rawwas et al. 2005, 200 6, 2007), but the process of mak-
ing ethical judgments is much more intr icate than studyi ng only
these two var iables. By combining idealism and relativism sca les,
7RAWWAS, HAMMOUD, AND IYER
we may have four- construc t model (i.e., situation ists, absolut ists,
subjectivists, and exceptional ists, please see definitions in p. 10),
that may represent basic moral philosophy theory better than the
two-dimensional model (Forsy th 1980; Rawwas 1996). In addition,
the renewed interest in epistemology of contemporary phi losophy
has shown significant relevance to understa nding ethica l behav-
ior, and may also be a better predictor than studyi ng idealism
and relativism exclusively (Brady a nd Pritchard 20 06; Buchanan
2009; Goldberg 2009; La hroodi 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, sta ndards, foundations, and
functions of knowledge. Different people may reach different as-
sessments depending on whether they possess epistemic vi rtues
or epistemic vices. People with epistemic vir tues have positive
attitudes toward moral ex ploration and enthusiastically eva lu-
ate ethical situations based on their disposition, intellect, expe-
rience, existence, and knowledge (Rawwas et al. 2013). They are
open-minded, curious, careful t hinkers, creative, and intellectu-
ally courageous (Corlett 2008; Flood 20 08; Kawall 2002; La hroodi
2007; Montmarquet 2008; Riggs 2010; Todd 2007). People with
epistemic vices, by contrast, tend to have myopic opinions of moral
and intellectual li fe and hence resist analyzi ng or understanding
moral situations (Wood 1998). They are closed-minded, intellectu-
ally overconfident, uni maginative, perceptua lly conformin g, and
wishful t hinkers. Epistemologists contend that belief is an eth ical
process that is susceptible to the intellectual virtue or vice of one’s
own life and personal exper iences.
Due to the recent rise of the use of questionable organiz ational
practices, the purpose of th is exploratory study is to compare moral
characteristics of ma nagers and employees, as well as to investi-
gate differences with respect to t heir work practices. Specifical ly, it
focuses on the following resea rch questions:
1. Do managers and employees differ with respect to their
moral phi losophies (i.e., situationists, absolutists, subjectiv ists,
and exceptionalists), optimism, a nd epistemic values (virtues
and v ices)?

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