Ethical Decision Making in Organizations: A Person-Situation Interactionist Model

An interactionist model of ethical decision making in organizations is proposed. The model combines individual variables (moral development, etc.) with situational variables to explain and predict the ethical decision-making behavior of individuals in organizations. A major component of the model is based on Kohlberg's cognitive moral development model which provides the construct definition, measurement tools, and theory base to guide future business ethics research. Research propositions are offered and practical implications are discussed.