2. 1 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. ETHICS IN BUSINESS RESEARCH Chapter 4 Learning Objectives: 1.Define business ethics and discuss relevance to research. 2.Provide an overview of the ethical obligations of business researchers. 3.Provide an overview of the ethical obligations of business decision makers. 4.Provide an overview of the ethical obligations of business research participants. 5.Describe the potential consequences of unethical actions.

3. 2 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. BUSINESS ETHICS As a field of study, business ethics addresses the application of moral principles and/or ethical standards to human actions within the exchange process. Social Market Legal Ethical Responsibilities

4. 3 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. RESEARCH IN ACTION Are “The Best and Brightest” the Rightest? The average ethical rating of college students is 84 (100 point scale). 47% admit cheating. 5.2% say they have not cheated as a college student. College students are more tolerant of unethical behavior than experienced business people. Male students are more tolerant of unethical behavior than females.

5. 4 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. ETHICAL DILEMMAS Situations when a person is faced with courses of actions that have differing ethical implications. Arise from: questions of fairness. conflicts of interest. responsibility issues. power discrepancies. honesty issues.

6. 5 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. FORCES PROVIDING ETHICAL BALANCE - Startup - Survival - Competition - Information Needs - Profits - Growth - Professional Standards - Group Goals - Prestige - Image - Personal Beliefs - Social Influences - Peer Group Pressures - Personal Goals - Moral Values Conflicts – Pressures Conflicts – Pressures Cost-Benefit Trade-offs

7. 6 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. RESEARCHER OBLIGATIONS: BEFORE THE RESEARCH BEGINS Develop a working knowledge of the situation. To do so, interview key decision makers. Communicate exactly what the research can do. “Project deliverables”. Avoid conflicts of interest. Sometimes say no.

8. 7 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. ETHICAL OBLIGATIONS OF THE DECISION MAKER: BEFORE THE RESEARCH Come to a consensus on the research objectives, i.e., the reason for the research. Set reasonable time and money budgets. Develop an understanding of the researcher and research project.

9. 8 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. RESEARCH IN ACTION Before doing research, decision makers should ask:  What information do I need that is now unavailable?  How could I use that information?  What will it cost to get this information and how long will it take?  Does the potential benefit exceed the cost?  Do my competitors have the information?  If my competitors have the information, how is this affecting their performance?  What aspects of my current business situation do I not understand?

10. 9 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. RESEARCHER OBLIGATIONS: DURING/AFTER RESEARCH To Decision Makers: Be knowledgeable. Interpret results honestly and fully. Present limitations of research. To Participants: Avoid coercing participants. Avoid physical or psychological harm. Protect Privacy. Inform subjects.

11. 10 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. PROTECTING EXPERIMENTAL SUBJECTS: FREEDOM FROM HARM Harm can be physical or psychological. Two useful questions: Can the subject be restored to his or her original condition? Has the subject been subjected to unreasonable stress or risk without knowledge?

12. 11 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. ETHICAL DIMENSIONS OF EXPERIMENTAL DESIGNS Relevant ethical issues in lab experiments:  Coercing participation.  Potential physical or psychological harm.  Privacy.  Informing subjects of the nature of the research.

13. 12 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. ETHICAL OR UNETHICAL? Two Questions:  Is it possible to restore the subject to his or her original condition?  Has the subject been subjected to unreasonable stress or risk without his or her knowledge?

14. 13 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. TERMS Demand characteristics – experimental elements that may lead a subject to accurately guess the experimental hypotheses while participating. They can be a critical threat to “validity”. Push polls – short phone calls used to spread negative and often false information under the guise of a poll. Push polls and selling under the guise of research are dishonest and avoidable.

15. 14 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. TERMS Experiments by their very nature often involve deception of subjects. Placebo – a false treatment. Debriefing – takes place after an experimental session and involves: revealing the true purpose of the experiment. identifying the sponsor, if possible. answering any questions.

16. 15 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. RESEARCH IN ACTION See the RIA Box titled – Electric Shock and the “Rigged Trial” Discuss the potential ethical dilemmas involved in this type of experiment. Are they physical or psychological? Go On-Line www.apor.org/ethics/code.html

17. 16 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. HUMAN RESOURCE REVIEW COMMITTEE Performs a review of research using human participants. Checks research procedures to make sure all participants are treated ethically. Businesses should have a high degree of concern for the welfare of participants in research projects. Research

18. 17 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. ETHICAL OBLIGATIONS OF THE DECISION MAKER: DURING/AFTER THE RESEARCH Give genuine consideration to the research results and be willing to use them to improve decision making. Pay the researcher fully and on time upon successful completion, regardless of whether or not the results are ‘desirable’.

19. 18 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. ETHICAL OBLIGATIONS OF THE RESEARCH PARTICIPANT Willful participation. Screening questions should determine whether participants qualify. Faithful participation. Participants must follow instructions and pay attention. Honest responses. Privacy.

20. 19 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. ETHICS CHECKLIST Questions to guide decision making: 1. Will the actions harm this institution? 2. Will the actions harm individuals or others? 3. Will the information involved be misused by others? 4. Will the actions harm my discipline or industry? 5. Will the actions harm the personal integrity of researchers or decision makers? 6. Will the actions harm society at large?

21. 20 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003. SUMMARY Business ethics is relevant to research. Ethical obligations: of business researchers. of business decision makers. of business research participants. Potential consequences of unethical actions. Must consider sources of harm.