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Why do employees steal?James Weber; Lance B Kurke; David W PenticoBusiness and Society; Sep 2003; 42, 3; Prouest Socio!o"#p"$ 3%&
Why Do Employees Steal?
Assessing Differences in Ethical and Unethical Employee
Behavior Using Ethical Work Climates
J'()S W)B)*L'+) B$ K-*K)
D'./D W$ P)+/1
Duuesne University
In a rare opportunit#, te autors "atered data rom to matced ea!t care pro5
viders mana"ed b# an insurance compan# ere auditors ad discovered tet b#
emp!o#ees in one o te matced or"ani6ations$ Data ere "atered about te
or"ani6ations7 etica! ork c!imates 8)Wes9$ 'na!#sis revea!ed statistica!!# si"5
niicant dierences in )es across te to or"ani6ations$ 's predicted, te or"a5
ni6ation it te mora!!# preerred )Wes did not ave tet$ Both macro5 and
micro5or"ani6ationa! in!uences are e:p!ored to e:p!ain tese dierences$ a!on"
it imp!ications or practitioners and academic researc$ is is te irst stud# to
su""est tat apriori )Wes can be useu! in predictin" observablebeavior$
Ke#ords business etics; etica! beavior; etica! ork c!imates; emp!o#eetet; tet b# emp!o#ees; ea!t care providers
(ana"ers and sco!ars are concerned it determinin" # emp!o#ees
vio!ate compan# ru!es or commit unetica! acts, in particu!ar, #
emp!o#ees stea! rom te compan#$ W# te concern< Past incidentsc!ear!# indicate one "!arin" trut Stea!in" is cost!# or businesses$
)mp!o#ee tet as reaced epidemic proportions or businesses trou"5
out te or!d$7 e )uropean *etai! et Barometer, a )uropeide stud#
o crime in te retai! sector, reported tat retai! crime cost )uropean
'-=1*S7 +1) We tank rac# >!csk# or er assistance in "aterin" te data and
tree anon#mous revieers or teir su""estions and comments$
B-S/+)SS & S1/)?, vo!$ 42 +o$ J, September 20m 3%&53@0
00A A0$AAA000C%03032%30/
2003 Sa"e Pub!ications
3%&
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3C0 B-S/+)SS & S1/)? E September 2003
businesses F2&$C bi!!ion in 200A 8Barnie!d, 28029$ Simi!ar resu!ts are
reported in te -nited States$ 'n estimated G%2 bi!!ion a #ear is !ost due to
emp!o#ee tet, accordin" to Jon ase, autor and president o a securit#mana"ement consu!tin" irm$ ase e:p!ained, H'n astoundin" &%I o a!!
businesses e:perience emp!o#ee tetH 8e Price o /nterna! et,
20809$ ' stud# conducted b# researcers at te -niversit# o !orida
reported tat emp!o#ee tet accounted or more tan 44I o a!! retai!
!osses in te -nited States$ e researcers ound tat te amount o
inancia! !oss caused b# te t#pica! emp!o#ee tie is more tan G / ,000 !"etail #oss $revention and %he&t Survey "esults' 200 /9$
'ccordin"!#, te important uestion, W# do emp!o#ees stea!< ise:p!ored$ Sco!ars and mana"ers ave considered a number o possib!e
e:p!anations, ran"in" rom te competitive or economic environments to
te or"ani6ationa! cu!ture or individua! attributes as te cause o tet b#
emp!o#ees and oter unetica! orkp!ace beaviors$ -sin" .ictor and
u!!en7s 8A&@@9 ork, e e:amine te or"ani6ation7s etica! ork c!imate
8)W9 as a promisin" researc ocus in understandin" # emp!o#ee
tet occurs in or"ani6ations$ )Ws are deined as unctions o a""re5
"ated individua! perceptions o etica! norms 8u!!en, .ictor, & Bronson,
A&&39$ /t is a macro!eve! in!uence on individua! decision makin" ound b#
assessin" te perceptions e!d b# individua!s in a omo"enous ork envi5
ronment$7 Wat makes tese perceptions macro in nature is our e:p!ora5
tion o te s#stemic eects o unetica! beavior on or"ani6ationa!5!eve!
outcomes tet$ Due to a rare opportunit# to assess emp!o#ee etica!
beavior in to simi!ar or"ani6ations5ere in one or"ani6ation
emp!o#ees ere ound b# an interna! audit to be stea!in" rom te com5
pan#, but in te oter or"ani6ation te interna! audit did not detect
emp!o#ee tet5tis proect seeks to test te abi!it# o etica! ork c!i5
mates to identi# environments ere some emp!o#ees act unetica!!#
and oter emp!o#ees it simi!ar emp!o#ment caracteristics in a simi!ar
business or"ani6ation do not$ / e can better understand te in!uence o
te or"ani6ationa! etica! ork c!imates on unetica! emp!o#ee beavior,
mana"ers and sco!ars a!ike ma# be better ab!e to reduce tis unetica!
beavior in te orkp!ace$
E(%A)% #*%E"A%U"E
1ur researc is enriced and better ocused due to prior ork con5
ducted b# sco!ars investi"atin" o various macro5 or micro!evc! in!u5
ences or bot e:p!ain unetica! emp!o#ee beavior$ Sco!ars ave
e:p!ored macro!evc! orces, seekin" to understand # unetica! decision
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Weber et a!$ E W=? D1 )(PL1?))S S)'L79 3CA
makin" and beavior occur amon" emp!o#ees in or"ani6ations$ .arious
eco!o"ica! approaces are derived rom resource mode!s$ *epresentative
o tem is te researc o !onin"er 8A&&29, o e:p!icit!# 8oters do soimp!icit!#9 assumed an open s#stems approac in er mode!in" o te
or"ani6ationa! in!uences upon emp!o#ee etica! beavior$ Se ar"ued
tat sco!ars must stud# o te structura! actors5comp!e:it#, centra!5
i6ation, and orma!i6ation5in!uence unetica! or i!!e"a! corporate
beavior b# e:aminin" o tese actors aci!itate or inder mana"eria!
contro! and teprocessin" o inormation trou" te corporate ierarc#$
Work b# Sta and S6akoski 8A&%9 considered te eects o scar5
cit# and muniicence itin te business environment$ e# posited tatte !ess muniicent te or"ani6ationa! environment, te "reater te eort
b# emp!o#ees to obtain resources or te or"ani6ation$ is increased
eort ou!d more !ike!# resu!t in uestionab!e activities b# te emp!o#ees
to ensure or enance te or"ani6ation7s inancia! perormance$ Simi!ar!#,
.au"n 8A&@39 ar"ued tat conditions o scarce resources ou!d !ead to a
"reater propensit# or emp!o#ees to vio!ate or"ani6ationa! or societa!
ru!es or te or"ani6ation7s beneit$
S6akoski7s 8A&@%9 teoretica! ork took a simi!ar approac ene !ooked at tree centra! e:p!anator# variab!es in is uest to understand
or"ani6ationa! i!!e"a!it#$ e environmenta! variab!e as separated into
e!ements o or"ani6ationa! pressure, need, and distress$ 1r"ani6ationa!
structure took te orm o corporate, industria!, or !e"a! structure$ oice
processes, te tird centra! e:p!anator# variab!e, ere divided into pato!5
o"#, intent, and proactive e:p!oitation$ rom tese to studies, e "!ean
an asserted need to inc!ude macro5 and micro!eve! variab!es to attain a
comp!ete understandin"$Besides te in!uences o resource muniicence mode!s, oter sco!ars
proposed tat macro5 or micro!eve! attributes ou!d si"niicant!# in!u5
ence emp!o#ees7 propensit# toard unetica! or i!!e"a! beavior$ Ba-LtS
8A&&49, or e:amp!e, proposed a mu!tivariate mode! o corporate i!!e"a!it#
ere various situationa! actors ere assumed to !ead to unintentiona! or
intentiona! emp!o#ee ron"doin"$ Se e:amined pressures tat cou!d
arise rom te competitive, !e"a!, and re"u!ator# environments, or rom
or"ani6ationa! caracteristics suc as te pressure or perormance and
!imited avai!abi!it# o resources$ 1pportunit# as a!so seen as a ke# actor
in Baucus7s mode! and !inked to te competitive, !e"a!, and re"u!ator#
environments, as e!! as to or"ani6ationa! si6e, comp!e:it#, anc!!evc! o
innovation$
1ter sco!ars turned to various micro!eve! teories in teir investi"a5
tion o unetica! or i!!e"a! emp!o#ee beavior$ !assic euit# teor# as
te basis or >reenber"7s 8A&&09 ork tat ar"ued te "reater te per5
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A8,2 B-S/+)SS M S1/)? E September 20m
ceived ineuit# in emp!o#ee pa#, te "reater te !ike!iood o emp!o#ee
tet$ Kur!and 8A&&A, J &&49 ocused on commission compensation s#s5
tems as interna! or"ani6ationa! s#stems tat ma# !ead to "reater instanceso unetica! beavior$ Brass, Butterie!d, and Ska""s 8A&&@9 !ooked at
socia! netork ana!#sis to assert tat certain t#pes o re!ationsips
8stren"t, mu!tip!e:it#, as#mmetr#, and status9 and te structure o re!a5
tionsips 8structura! o!es, centra!it#, and densit#9 assist in our under5
standin" o unetica! beavior$
(acLean 8200 /9 e:p!ored socia! embeddedness as a construct in ork5
p!ace re!ationsips to e:p!ain emp!o#ee ru!e5breakin" beavior$ =er ua!5
itative researc su""ests tat Hmecanisms o diusion and aci!itationare embedded in socia! re!ationsips tat occur in te conte:t o mana"e5
ment ini!trationH 8p$ AC9, contributin" to our enanced understandin" o
emp!o#ee ru!e5breakin" beavior$ Speciica!!#, mana"ement ini!tration
as most evident in te re!ationsip beteen te sa!es mana"er and te
a"ent because sa!es mana"ers ere Ha!most so!e!# responsib!e or te
trainin" an a"ent receivedH 8p$ A@49; tus, tecniues or breakin" ru!es
ere easi!# tau"t and or"ani6ationa! ru!es circumvented$ /n addition,
aci!itation o practices osterin" or"ani6ationa! ru!e breakin" ere cate5"ori6ed as beni"n ne"!ect, ere ru!e5breakin" practices ere i"nored,
to!erated, or encoura"ed in te protection o te actors en"a"ed in ru!e
breakin"$
/n addition to seekin" ansers to te uestion, W# do emp!o#ees
break or"ani6ationa! ru!es or stea! rom teir emp!o#ers< presented above,
oter sco!ars ocus on emp!o#ees7 etica! decision5makin" processes, or
te !ack tereo, or ansers$ Speciica!!#, tese sco!ars para!!e! teir co!5
!ea"ues discussed above b# usin" macro !eve! caracteristics 8or"ani6u5
tiona! or departmenta! )W9 and micro!eve! caracteristics 8individua!s7
co"nitive mora! reasonin"9 to e:p!ain etica! or unetica! emp!o#ee
beavior$ ese streams or researc are c!oser to te approac taken in our
proect and i!! be presented and discussed !ater as te oundation or our
#poteses$
"ESEA"C+ ,-DE#
/n A&@@, .ictor and u!!en constructed a mode! to identi# and distin5
"uis beteen etica! decision5makin" components understood b#
emp!o#ees to be in!uences on teir decision5makin" processes$
)mbedded in teir mode! is a normative dimension ere some )Ws
arc HbetterH or mora!!# preerred over oter )Wes$ is normative ierar5
c# is a resu!t o .ictor and u!!en structurin" teir )W t#pes ater
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Weber et a!, E W=? D1 )(PL1?))S S)'L79 3C3
)tica! riterion *ndividual
Locus o 'na!#sis
-rgani.ation Cosmopolitan
IEgoism /nstrumenta! arin"
Benevolence arin"
$rinciple /ndependence
I
*u!es M La MProcedures Proessiona!
ode
i"ure A$ .ictor and u!!en7s )tica! Work !imate #pes
Ko!ber"7s Sta"e eor# o (ora! Deve!opment 8Ko! ber", A&@A, A&@49,
ere individua!s ere ound to mora!!# pro"ress in teir ana!#sis o
mora! di!emmas as te# matured, is e!ement itin te )W t#pes is
discussed in "reater detai! in te ne:t section o tis artic!e,
e etica! c!imate t#pes empasi6ed to dierentiatin" orces te
!ocus o ana!#sis and te etica! criterion$ e !ocus o ana!#sis repre5
sented te dierin" reerent "roups used as te basis o mora! reasonin"
8see i"ure A9$ e irst reerent "roup, or !ocus o ana!#sis, or .ictor and
u!!en as te individua!$ 't te individua! !eve!, te emp!o#ee ocused
narro!# on imse! or erse! or te immediate ork"roup as te re!evant
ocus or decision makin", 't te second !eve! as te !oca!, or or"ani6a5
tiona!, !eve! o ana!#sis$ is ocus e:panded be#ond te individua! or nar5
roer ork"roup ocus to encompass te emp!o#ee7s entire or"ani6ation
or emp!o#er$ e ina! !ocus o ana!#sis !eve! broadened te decisionmaker7s ocus to te cosmopo!itan !eve!$ 't te cosmopo!itan !eve!, te
decision maker considered more tan ust te emp!o#er b# inc!udin" indi5
vidua!s and "roups e:terna! to te or"ani6ation$ /n a eavi!# re"u!ated
industr#, or e:amp!e, a cosmopo!itan vie ocused on te re"u!ator#
a"ents or te !e"a! standards "overnin" emp!o#ees and teir or"ani6ation$
e second component i!! .ictor and u!!en7s etica! c!imate t#po!o"#
empasi6ed te etica! criteria used b# te decision maker$ ese etica!
criteria ere based on tree maor etica! teories e"oism, benevo!ence,and princip!e 8see i"ure /9$ e e"oism criterion empasi6ed te ma:i5
mi6ation o se!5interests$ e decision maker sou"t te a!ternative or
course o action tat most satisied one7s on needs, orsakin" te needs
or interests o oters, e second etica! criterion, benevo!ence, e:tended
te conseuentia!ist7s empasis ound in e"oism to inc!ude ma:imi6in"
te interests o oters$ e decision maker sou"t te a!ternative course o
action tat provided te "reatest oint beneit or tose aected, or te
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364 BUSINESS & SOCIETY / September 2003
alternative that resulte in the least harm !r "!st t! th!se a##e"te$ even i#it meant lesser satis#a"ti!n !# the e"isi!n ma%er&s nees !r 'reaterharm enure b( the e"isi!n ma%er) *inall($ +i"t!r an Cullen&s thir
ethi"al "riteri!n ,as prin"iple) This "riteri!n emb!ie the appli"ati!n!r inter- pretati!n !# rules$ la,s$ !r stanars as the %e( "riteri!n in thee"isi!n- ma%in' reas!nin' pr!"ess) The e"isi!n ma%er usin' thisethi"al "riteri!n suppresses the pursuit !# "!nse.uen"es t! himsel# !rhersel# !r !thers in favor !# see%in' a s!luti!n base !n an aheren"e t!"!nsistentl( applie rules !r stanars) The basis #!r these prin"iplesma( "!me #r!m the !r'a- ni/ati!n !r #r!m 'r!ups eternal t! the!r'ani/ati!n$ su"h as s!"ietal la,s !r pr!#essi!nal "!es)
The resultin' intera"ti!ns bet,een these t,! e"isi!n-ma%in' imen-
si!ns are nine the!reti"al ethi"al "limate t(pes) Base !n theirempiri"al
,!r%$ +i"t!r an Cullen 15 rep!rte that the nine the!reti"al E6Ct(pes "!llapse int! #ive t(pes ,hen applie t! vari!us !r'ani/ati!ns)The #ive EC t(pes 1sh!,n in *i'ure I5 are the #!ll!,in'7
instrumental 1an e'!ism ethi"al "riteri!n ,ith an iniviual !r !r'ani/ati!nl!"us !# anal(sis5$
"arin' 1a benev!len"e ethi"al "riteri!n a"r!ss all l!"us !# anal(sis levels5$ inepenen"e 1a prin"iple ethi"al "riteri!n ,ith an iniviual l!"us !#anal(sis5$
rules an pr!"eures 1a prin"iple ethi"al "riteri!n ,ith an !r'ani/ati!nl!"us !# anal(sis5$ an
la, an pr!#essi!nal "!e 1a prin"iple ethi"al "riteri!n ,ith a "!sm!p!litanl!"us !# anal(sis5)
Others have "hallen'e +i"t!r an Cullen&s #ive EC-t(pe #rame-,!r%) imbush$ Shepar$ an 8ar%ham (95 use #a"t!r anal(sis#!r their sample t! ienti#( #!ur EC t(pes similar t! +i"t!r an Cullen&s
#ive t(pes) In their #a"t!r anal(sis$ the rules an pr!"eures EC ,as"!m- bine ,ith the la, an pr!#essi!nal "!e EC) The( als! #!unthe ine- penen"e an instrument EC t(pes$ but i n!t #in a "arin'EC t(pe) : ne, EC t(pe ,as is"!vere an labele ;servi"e);
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Weber et a!$ E W=? D1 )(PL1?))S S)'L7< 3C%
+/$-%+ESES
's discussed, sco!ars ave taken various approaces toard under5standin" or predictin" etica! or unetica! beavior b# emp!o#ees, inc!ud5
in" tet$ e ork tat seems most ruitu! as used te concept o)Ws
coup!ed it te embedded notion o individua!s7 mora! reasonin" as te
basis or assessin" emp!o#ee decision makin" or beavior$ 1ten based on
te teoretica! and instrumenta! deve!opment !aid out b# .ictor and u!5
!en 8A&@, A&@@9, te researc sos tat te )W and correspondin"
mora! reasonin" e:ibited b# emp!o#ees are stron"!# connected to
emp!o#ee beavior$'t te core o )W !iterature is Ko!ber"s Sta"e eor# o (ora!
Deve!opment 8Ko!ber", A&@A, A&@49$ is teor# and its va!idations are
described in o!b# and Ko!ber" 8A&@9, as e!! as in subseuent empiri5
ca! researc in mora! reasonin" 8see Broer M Srader, 2000; Dukeric,
+ico!s, )!m, & .o!!rat, A&&0; )!m & +ico!s, A&&3; Lo"sdon & ?utas,
A&&; (ason & (udrack, A&&9$ e teor# posits tat as individua!s
mature in teir reasonin" and decision5makin" processes, tere is a corrc5
spondin" broadenin" o te individua!7s sociomora! ocus5rom an indi5
vidua!5a!one ocus, to a "roup5centered ocus, to a concern or universa!
princip!es and outcomes tat transcend te "roup$ Borne out b# empirica!
business etics researc 8Brabeck, A&@4; >reen & Weber, A&&; Weber M
>i!!espie, A&&@9 is te be!ie tat as te mora! reasonin" ocus broadens,
te !ike!iood o etica! 8vs$ unetica!9 decision makin" and beavior
increases$ Wcn sco!ars ave ocused on )Ws associated it individ5
ua!s7 mora! reasonin", tis proposed re!ationsip beteen reasonin" ocus
and etica! decision makin" is "enera!!# ound 8Peterson, 28029$
Wimbus and Separd 8A&&49 posited a conceptua! re!ationsip
beteen an or"ani6ationa! ork c!imate and etica! or unetica! emp!o#ee
beavior$ e# ar"ued tat an e"otistic 8or instrumenta!9 ork c!imate
ou!d support emp!o#ees7 unetica! beavior, ereas a princip!ed 8or
independence, ru!es and procedures, or !a and proessiona! code9 ork
c!imate, based on universa! etica! princip!es suc as onest#, ustice, and
airness, ou!d support etica! actions b# emp!o#ees$is proposed re!ationsip asborne out in ork conducted b# Kamp
and Brooks 8A&&A9, rep!icatin" an ear!ier stud# b# =o!!in"er and !ark
8J &@39$ Kamp and Brooks ound tat a pervasive or"ani6ationa!5tet
c!imate partia!!# e:p!ained # emp!o#ees o admitted to stea!in" rom
teir emp!o#ers perormed suc acts$ (ore speciica!!#, revino, Butterie!d,
and (cabe 8J &&@9 reported tat emp!o#ees rom a se!5interested 8or in5
strumenta!9 ork c!imate e:ibited more unetica! beavior$ B# contrast,
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38N89 B-S/+)SS & S1e/)? E September 20D3
emp!o#ees o orked in an or"ani6ation it a !a and proessiona!
code )We soed a !esser tendenc# toard unetica! beavior$ =oever,
te ork c!imate5emp!o#ee beavior re!ationsip as not a!a#s sup5
ported b# empirica! e:p!oration at te or"ani6ationa! !eve!$ >aertner
8A&&A9 ound tat te )We did not direct!# in!uence emp!o#ee etica! or
unetica! beavior$ >aertner turned toard a dierent pat o in!uence
and ound tat etica! c!imate dimensions did in!uence emp!o#ees7 eti5
ca! decision makin" indirect!# b# intAuencin" te decision5makin" crite5
ria se!ected b# emp!o#ees$
e re!ationsip beteen an individua!7s !eve! o mora! reasonin" and
resu!tin" etica! beavior asbeen ound in numerous studies$ e c!assicmeta5ana!#sis b# B!asi 8A&@09 conc!uded tat tere as a moderate re!a5
tionsip beteen mora! reasonin" and mora! beavior$ Subseuent ork,
particu!ar!# en usin" business mana"ers or business students, as
ound additiona! support or tis re!ationsip 8see Brabeck, A&@4; >reen
& Weber, A&&; Peterson, 2002; Weber & >i!!espie, A&&@9, indin" tat
!oer sta"es o mora! reasonin" are corre!ated more oten it unetica!
decisions or beavior$ /n addition, i"er sta"es o mora! reasonin" are
more oten associated it etica!!# correct decisions or actions$ereore, epropose tat to simi!ar or"ani6ations 8tat are dierent
due to an overe!min" contrast in emp!o#ee practices5te detection b#
interna! audit o emp!o#ee tet in one or"ani6ation and te !ack o detec5
tion o emp!o#ee tet in te oter9 i!! e:ibit dierent )We t#pes
+ypothesis 01 Si"niicant!# dierent !"e#i!! be ound en comparin" teto or"ani6ations in tis stud#$
(oreover, prior researc as asserted tat tere oten is a corre!ation
beteen )We and etica! or unetica! beavior$ is researc is used to
construct our second #potesis$ >iven tebe!ie and evidence tat i"er
sta"es o mora! reasonin" support more etica! decision makin" orbeav5
ior and tat !oer sta"es o mora! reasonin" are associated it !ess eti5
ca!or unetica! action, e ou!d suspect tat i dierences ere ound
en comparin" te to or"ani6ations, asproposed in =#potesis I,ten
tere ou!d be a correspondin" normative dierence$ at is, te )We
!inked to !oer sta"es o mora! reasonin" 8te instrumenta! )We in .ictor
and eu!!en7s mode!9 ou!d most !ike!# be ound to be stron"er in te or"a5
ni6ation ere emp!o#ee tet as ound b# an interna! audit, and te
)Wes associated it i"er sta"es o mora! reasonin" 8independence,
ru!es and procedures, and !a and proessiona! code )Wes in .ictor and
eu!!en7s mode!9 ou!d more !ike!# be ound in te or"ani6ation ere
emp!o#ee tet as not detected b# an interna! audit$ ereore, based on
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Weber et a!$ E W=? D1 )(PL1?))S S)'L7/ 38A
prior researc suc as revino et a!$ 8A&&@9 and Wimbus and Separd
8A&&49, e be!ieve te o!!oin"
+ypothesis 2 )mp!o#ees in te or"ani6ation ere stea!in" as not detected
i!! identi# a mora!!# preerred )We as caracteristic o decision makin"in teir or"ani6ation, and emp!o#ees in te or"ani6ation ere stea!in" as
ound i!! identi# a !ess mora!!# preerred )We as caracteristic o deci5sion makin" i!! teir or"ani6ation$
METHOD
$articipants
o ea!t care providers ere se!ected or te )We ana!#sis in our
proect$ Bot or"ani6ations ere part o a !ar"er con"!omerate o ea!t
care providers and ospita!s tat contractua!!# a!i"ned temse!ves it a
mana"ement services or"ani6ation 8(S19 or administrative oversi"t
and inancia! eicienc#$ Bot ea!t care providers e:amined in our pro5
ect ere e:ceptiona!!# simi!ar in man# or"ani6ationa! and emp!o#eecaracteristics, save one notab!e dierence /n one or"ani6ation, te
supervisin" administration kne rom teir interna! audit tat si"niicant
tet b# emp!o#ees as occurrin" 8et 1r"ani6ation9, ereas tet b#
emp!o#ees as not detected rom te (S17s interna! audit at te oter
or"ani6ation 8+o5et 1r"ani6ation9$7 '!tou" te unetica! emp!o#ee
beavior ad a!read# been discovered trou" an audit o te ea!t care
provider7s cas accountin" s#stem, tis discover# ad not been
announced to te emp!o#ees, nor ad an# corrective action been taken at
te time o our proect$
's mentioned, despite te "!arin" dierence in etica! beavior, te
to ea!t care providers e:ibited man# simi!ar caracteristics$ Bot
aci!ities ere !ocated in te same suburban area o a !ar"e mid5't!antic
cit#, and eac emp!o#ed A% medica!, administrative, or c!erica! sta$ e
et 1r"ani6ation ad / oice assistant, 2 medica! assistants, / LP+,4
*+s, and c!erica! stamembers; te+o5et 1r"ani6ation emp!o#ed /
oice assistant, 3 medica! assistants, 2 LP+s, 3 *+s, and C c!erica! sta$
e /S emp!o#ees in eac or"ani6ation supported a 45 or %5p#sician
practice$ ab!e / sos te means o te emp!o#ee caracteristics orbot
ea!t care providers or te demo"rapic measures or a"e, #ears or
emp!o#ment at current ea!t care emp!o#er, #ears o ea!t care ork
e:perience, and educationa! !eve!$+one o te dierences as si"niicant
at even te $A0 !eve!$ '!! o te emp!o#ees in bot or"ani6ations ere
ema!e$ It ma# be o interest to note tat most empirica! business etics
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3C@ B-S/+)SS & S1i)? E September 2003
ab!e J
Comparison a2-rgani.ation , em3ers4 Demographics
,eanfor,ean forDemographic Characteristics %heft -rgani.ation )o5 %he61 -rgani.ation
'"e 34$C 34$B3
?ears at or"ani6ation $.% 3$00
?ears in ea!t care %%& &$&3
)ducationa! !eve! 2$33 $.'(
+ote )ducationa! !eve! as coded as / O i" scoo!, 2 O associate7s de"ree, 3 Obace!or7s de"ree, and 4 ) master7s de"ree$
studies ind omen to be more etiea! in teir decision makin" tan men
8e$"$, Borkoski & -"ras, A&&@; Wite, A&&&9, ic .ictor and u!!en
8A&@@9 specu!ated on$
iteen )W surve#s 8described ne:t9 ere distributed to emp!o#ees at
eac ea!t care provider$ 't te et 1r"ani6ation, A0 surve#s ere
comp!eted and returned 8a CC$I response rate9$ )!even surve#s ere
comp!eted and returned b# emp!o#ees at te +o5et 1r"ani6ation 8a3$3I response rate9$
,aterials
e )tica! !imate uestionnaire 8see te appendi:9, deve!oped b#
.ictor and u!!en 8A&@, A&@@9, as used to discover sared normative
va!ues and be!ies itin te or"ani6ation and to assess te respondents7
perceptions o o te members o teir respective or"ani6ations t#pi5
ca!!# make decisions reuirin" etica! ud"ments$ In oter ords, e tried
to understand at etica! norms in!uenced emp!o#ees in teir etica!
decision5makin" process$ o comp!ete te uestionnaire, teparticipants
ere asked to read and rate on it %5point Liken5t#pe sca!e eac o te 2C
va!ue statements 8consistent it te procedure deve!oped b# .ictor and
u!!en and used to assess te re!iabi!it# and va!idit# o teir ive )W
t#pes9$
e subects ere asked to respond not in terms o o te# preer
teir or"ani6ation7s c!imate to be, but in terms o o te# perceive teir
or"ani6ation7s c!imate to rea!!# be$ e order o te 2C va!ue statements
as scramb!ed across te surve#s to minimi6e an order eect rom te
instrument$ 8or teir va!idation o teir )tica! !imate uestionnaire,
see .ictor and u!!en AA&@N$9
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Weber et *II. I W=? D1 )(PL1?))S S)'L79 3C&
$rocedure
e surve#s ere distributed to a!! o te emp!o#ees at bot or"ani6a5
tions b# a sta member rom te (S1$ o minimi6e te perception tat
tis as a orma! investi"ation b# te (S1, te emp!o#ees ere to!d tat
tis surve# so!icitation as part o aproect or a c!ass taken b# te (S1
sta member 8ic as true9$ e emp!o#ees ere promised tat teir
anon#mit# ou!d beprotected and te resu!ts ou!d not be son to teir
supervisors 8ic as a!so true9, 'ter receivin" te surve#s, te
emp!o#ees ere to!e! tat te# ad 3 da#s to comp!ete and return te sur5
ve#s, e on!# distin"uisin" eature o teprocedure as to keep te sur5ve# responses rom te emp!o#ees separate b# or"ani6ationa! member5
sip 8et vs$ +o5et9 or statistica! inte"rit# o tis proect$
,easures
):p!orator# actor ana!#sis as used to "roup te respondents7 ratin"s
o te 2C va!ue statements into statistica!!# re!ated actors and to compare
te indin"s rom our data set it te actor ana!#sis resu!ts rom .ictorand u!!en7s researc 8A&@, A&@@9$ 's son in ab!e 2, te actor ana!#5
sis o our data set provides conirmation or .ictor and u!!en7s ori"ina!
ana!#sis !eadin" to te ive )W t#pes, a!tou" 2 out o te 2C items are
not actored te same as te# ere or .ictor and u!!en$ is is simi!ar to
te ork conducted b# Weber (J &&%9 but dierent rom te indin"s
reported b# Wimbus et a!$ 8A&&9$
e item ratin"s or eac va!ue statement in te respective etica! c!i5
mate t#pes ere summed$ Due to te uneua! numbers o va!ue statementsIn te c!imate t#pes, te summed item ratin"s ere ten divided by te
number o va!ue statements in eac c!imate t#pe, o!!oin" teprocedure
adopted b# Weber 8A&&%9$ or e:amp!e, te sum or te carin" etica! c!i5
mate t#pe as divided b# seven because tere ere seven va!ue statements
associated it tat etica! c!imate t#pe$ e summed item ratin"s or te
ru!es and procedures c!imate t#pe ere divided b# our, and so on$ e
resu!t as a mean or avera"e ratin" per etica! c!imate t#pe or eac
emp!o#ee$ e avera"e ratin"s b# c!imate t#pe, avera"ed a second timeacross te emp!o#ees in a "roup, are son in i"ure 2$
"ESU#%S
o assess eter te to or"ani6ations e:ibited dierent etica!
ork c!imates, asproposed in =#potesis /, te mean ratin" scores o te
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30 B-S/+)SS M S1/)? I September 20m
ab!e 2
Comparison of 7actor Analysis of89 :alue Statements 7rom the Data Set to :ictor and
Cullen*s Data
$ 3 4
actor I+ La and code
omp!# it te !a and proessiona! standards$
Strict!# o!!o !e"a! or proessiona! standards$
onsider eter a decision vio!ates an# !a$
La or proessiona! code is te maor consideration$
actor 2 *u!es and procedures
Stick b# compan# ru!es and procedures$Strict!# obe# te compan# po!icies$
o!!o te compan#7s ru!es and procedures ere$
actor 3 /nstrumenta!
Peop!e are most!# out or temse!ves$ +o
room or persona! mora!s or etics$
Protect teir on interests above a!! e!se$
oncerned it compan#7s interests, e:c!ude o a!! e!se$
urter compan#7s interests, re"ard!ess o conseuences$
(ost eicient a# is ri"t a#H
(aor responsibi!it# is to contro! costs$
actor 4 /ndependence
$% $3& $02 . .0l$A $A4 5$02 $A0 5$0%
$C& $2A 5$0 $A4 0&
$C $32 5$& $2A 5$04
$3A $@A 5$1S 5$0& 5$A$4i $ 5$0C $03 08
$3C $C $0A $A0 5$04
08 5
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4$0
-.
.->
--
Weber et a!$ E W=? D1 )(PL1?))S S)'L79 3A
C$0
%$%
.s %$0
.l
/a++ 4$%cIII(0
+++
3$%
3$0
1---2 ;>
5-:E5 $$$$$$$
lnstr. arin" /ndep$
EWe
*u!es 3&4
rder Is from 3east to 5ost 5orally 6referred
i"ure 2$ omparison o (ean *atin"s or )tica! Work !imates 8)Ws9 b# Work>roup
ab!e 3
Analysis oft %est"esults
%heft
organi.a tion)o5%heft
-rgani.ation
Standard S tandard
Ethical Work Climate ,ean Deviation ,ean Deviation p (7I7 S; t9, to5tailed
/nstrumenta! 3$&@A 0$@@% 3$&22 0$@3C 0$@BB
arin" 3$@& 0$@&0 4$@% 0$3A 0$0A277Q
/ndependence 4$%2% 0$@C% 4$4%% A$0AA 0$@CC
*u!es and procedures 4$2% A$3@ 4$&%% 0$@2@ 0$A@4La and proessiona!
code 4$C%0 A$243 %$%4% 0$@43 0$0CCQ
7;7Statistica!!# si"niicant at e:) $A0$ HH7Statistica!!# si"niicant at e:) $0%$
means$ e resu!ts, son in ab!e 3, provide some support or te
#potesis$ Si"niicant dierences ere ound at te a ) $0% !eve! en
comparin" te mean scores or te carin" !"e (p va!ue ) $8A29 and at te
e@ O$A0 !eve! en comparin" te mean scores or te !a andproessiona!
code !"e !0A va!ue ) $8CC9$ e dierences beteen te mean ratin"s
ere not si"niicant or te oter tree etica! ork c!imates$
e imp!ications o tese resu!ts i!! be discussed at !en"t in te ne:t
section o tis artic!e, but it is ort notin" ere tat to o te ive !"e
means scores ere si"niicant!# dierent en comparin" te to or"ani5
6ations$ ese resu!ts appear to !end partia! support or our irst #pote5
sis, ic stated tat si"niicant!# dierent !"es i!! be ound en
comparin" te to or"ani6ations in tis stud#$
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32 B-S/+)SS M S1/)? I September 2003
ab!e 4
Analysis of :ariance"esults
-rgani.ation Source ss df ,S p value Criterion
+o5et
)mp!o#ee AA$C4C3 A0 A$AC4C3 A$@3 0$0@C 2$02%
)tica! ork c!imate AC$04C3@ 4 4$0AA%&C C$4%A 0$0004 2$C0%&
)rror 24$@%%C 40 0$C2A@@&
ota! %2$%C&% %4
et
)mp!o#ee 24$3C2@ & 2$4@4C 3$CA3 0$002
)tica! ork c!imate 4$4%@@ 4 A$AA4A@ A$4CC 0$2330
)rror 2$3@2& 3C 0$C0C33
ota! %C$%&% 4&
urnin" to te second, and normative!# ramed, #potesis, e used
b!ocked ana!#sis o variance '+1?'9 tests to determine i te observed
instances o unetica! and etica! beavior by emp!o#ees in tese or"ani5
6ations ere associated it dierences beteen te to or"ani6ations7
)Wes$ B!ocked, rater tan one5a#, '+1.'s ere used to a!!o or te
possibi!it# tat tere ou!d be s#stematic dierences amon" te ratin"s
"iven b# emp!o#ees in an or"ani6ation$ 's son in ab!e 4, tere ere
s#stematic dierences, at !east at te e:) $A0 !eve!, beteen te emp!o#ees
inbot or"ani6ations in o te# assi"ned item ratin"s$
' revie o te to !ines in i"ure 2 su""ests tat tere is, or bot
"roups, a "enera! increase in te mean ratin"s as te mora!!# preerred
!eve! o te )e increases, a!tou" te increase appears tobe !ess or te
et "roup tan or te +o5et "roup$ e ' +1?' resu!ts or te +o5
et or"ani6ation do provide support or te irst part o =#potesis 2,
soin" tat tere are si"niicant dierences amon" te mean ratin"s or
te dierent )Wes in te +o5et or"ani6ation$ =oever, te second
part o =#potesis 2 is not supported because te '+1?' resu!ts or te
et or"ani6ation do not so a si"niicant dierence amon" te mean
ratin"s or te )Wes$'ter te '+1?' as conducted, e used uke#7s procedure or te
comparison o mu!tip!e means, adapted or use it a b!ocked '+1?'
,amane M Dun!op, 20009, to identi# ic pairs o )Wes ad si"nii5
cant!# dierent mean ratin"s$ 's son in te midd!e co!umn o ab!e %,
tere ere si"niicant dierences beteen some o te )We means or
te +o5et or"ani6ation, it te mean ratin" or te !a and proes5
siona! code )We bein" "reater tan te means or bot te instrumenta!
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Weber er aJ$ E W=? D1 )(PL1?))S S)'L< 33
ab!e %
,ultiple Comparison of ,eans "esults
:aria3le
uke#7s procedure 8ome"a9
/nstrumenta!
arin"
/ndependence
*u!es and procedures
La and proessiona! codearin"
Difference
)o5%heft %heft
0$&CA A$A2A
50$&3% 0$A02
50$%32 50$%44
5A$032 5
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34 B-S/+)SS M S1e/)? E September 2003
a!!oed or a cross5samp!e comparison, emp!o#ees orkin" in oter
industries ma# not e:ibit te same )We beavior !inka"e as e ound
ere$ .ictor and eu!!en 8A&@@9 specu!ated about variation across indus5tries$ '!tou" our samp!es in tis stud# ere rom on!# one industr#, te
stud# docs provide across industr# variation en compared it previ5
ous ork usin" industries oter tan ea!t care 8Broer & Srader, 2000;
.ictor & eu!!en, A&@@; Weber, A&&%; Weber & Se"er, 28029$
ina!!#, a!! o our emp!o#ees in our or"ani6ations ere ema!e$ Busi5
ness etics researc as oten ound tat omen are more etica! tan men
8Borkoski & -"ras, A&&@; Wite, A&&&9; tus, tere ma# be a "ender
bias embedded in our data$ '!tou" tis did not seem to aect our dataana!#sis, a mi:ed5"ender samp!e ma# so dierent resu!ts$ urter5
more, because e ound i"!# si"niicant variation itin our a!!5ema!e
samp!e itin te same industr#, e are ab!e a!so to contribute to te
itin5"ender variation debate$ 1vera!!, e encoura"e oter sco!ars
interested in e:p!orin" te !inka"e beteen )We and unetica! emp!o#ee
beavior to conduct simi!ar studies as e ave and compare teir indin"s
it ours$
C-)C#US*-)S A)D *,$#*CA%*-)S
We ound tat te to or"ani6ations ere someat dierent en e
eva!uated teir respective )Wes, tus partia!!# supportin" =#potesis /$
// is important to note tat tis is te irst pub!ised ie!d5based stud# o
or"ani6ationa! )Wes ere dierences in emp!o#ee beavior ere
knon and #et te or"ani6ations ere so simi!ar$ -p to tis point, sco!arsad considered te e:pected re!ationsip beteen an )We and emp!o#ee
beavior on!# as a teoretica! association 8Baucus, A&&4; Wimbus &
Separd, A&&49 or b# usin" data co!!ected trou" artiicia!!# created
e:perimenta! e:ercises 8revino et a!$, A&&@9$ is is an important
advancement in te academic pursuit o understandin" in!uences on
emp!o#ee beavior, particu!ar!# emp!o#ee tet$
e ie!d5based data co!!ected and ana!#6ed ere is an important step
toard discoverin" i dierences in )Wes mi"t be associated it
actua! dierences in emp!o#ee decision makin" and beavior$ 1ter aca5
demic sco!ars ave aded into tese murk# aters$ *esearc conducted
b# Weber and >i!!espie 8A&&@9 underscores te important variance
beteen teoretica! propositions or te co!!ection o data en construct5
in" abricated situations compared to rea! decision5makin" processes
en te# !ooked at individua!s7 !eve! o mana"eria! mora! reasonin"$
e# reported tat si"niicant dierences ere ound en comparin"
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Weber et a!$ E W=? D1 )(PL1?))S S)'L< 3%
actua! mana"ers7 mora! reasonin" decision patterns to mana"ers7 idea! or
intended actions and reasonin"$ us, te# ar"ue tat researc is more
accurate i rea! e:periences are considered, as opposed to #potetica! orintended e:p!orations$ is is particu!ar!# critica! because actua! reason5
in" as ound to be si"niicant!# !oer or te rea! e:periences$ ereore,
our ie!d5based researc usin" emp!o#ees en"a"ed in rea! etica! or unet5
ica! beavior provides academic sco!ars it a more autentic picture o
te )We and its !inka"e tobeavior tan prior #potetica! proposa!s or
abricated e:perimenta! desi"n researc$
e second important indin" arisin" rom our data ana!#sis adds a nor5
mative interpretation to te dierences discussed above$ Be#ond te acttat te )Wes discovered in te to or"ani6ations ere someat dier5
ent, e a!so can so tat in te or"ani6ation ere tet b# emp!o#ees
as not knon to e:ist, emp!o#ees identiied a mora!!# preerred )We$
/nerent in .ictor and eu!!en7s etica! ork c!imate mode! is a normative
ierarc# based on Ko!ber"7s Sta"e (ode! o (ora! Deve!opment 8sec
Ko!ber", J &@ J, A&@49$ 's discussed ear!ier in tis artic!e, researcers
oten ind a re!ationsip beteen i"er sta"es o mora! reasonin" and
etica!!# preerred decisions or actions 8see B!asi, A&@0; Brabeck, A&@4;
>reen & Weber, A&&; Peterson, 2002; Weber & >i!!espie, A&&@9$ Simi5
!ar!#, but no at an or"ani6ationa! !eve! o ana!#sis, e ind mora!!# pre5
erred )Wes5ru!es and procedures and !a and proessiona! code5evi5
dent in te or"ani6ation ere tet b# emp!o#ees is not5 occurrin"$
=oever, in te or"ani6ation ere tet b# emp!o#ees as discovered b#
an or"ani6ationa! audit, tese mora!!# preerred )Wes ere not ound to
be identiied$ Sco!ars attemptin" to predict better emp!o#ee beavior areaided b# tese indin"s$
Practica! imp!ications or mana"ers and oter practitioners emanate
rom our indin"s$ 's discussed in our introduction, or"ani6ations suer
"reat!# rom tet b# emp!o#ees$ We cited Jon ease, an e:pert in te ie!d
o emp!o#ee tet, o estimated tat -$S$ or"ani6ations !ose G%2 bi!!ion
per #ear due to emp!o#ee tet$ ese economic !osses to businesses due
to emp!o#ee tet ere discovered trou"out )urope as e!!$ 'udits
seekin" to discover tis tet a!so are cost!#$ erminations, it te resu!t5in" costs o recruitment, se!ection, trainin", and so ort are ver# e:pen5
sive to te irm$ >iven tat e ave ound a predictab!e re!ationsip
beteen a simp!e paper5and5penci! test and tet b# emp!o#ees, it imp!ies
tat tere are mu!tip!e cost5eective uses or te test$
irst, or"ani6ations can administer te )We periodica!!# to
monitor te c!imate o teir or"ani6ation$ Sou!d an or"ani6ationa! unit
!ie outside te norma! ran"e, it ou!d be a candidate or an audit or
investi"ation$ -sin" te )We test in tis manner ou!d be i"!#cost5eective,
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3C B-S/+)SS M S1e/)? E September 2003
minima!!# intrusive, and useu! in its predictive abi!it# it some !imita5
tions$ Second, mana"ers cou!d use te )We indin"s as a basis or a series
o mana"ement trainin" sessions ere eorts are made toard improv5in" te )We o a department or ork "roup$ B# aimin" or a better )We
based on te normative oundation o .ictor and eu!!en7s mode!, te !ike5
!iood o emp!o#ee tet cou!d decrease and costs associated it
emp!o#ee tet cou!d dec!ine$
or #ears, sco!ars ave be!ieved tat unetica! emp!o#ee beavior,
suc as tet b# emp!o#ees, ma# be associated it te or"ani6ation7s
ork environment$ rou" a ortunate opportunit#, e ere ab!e to
investi"ate te )We o to ea!t care providers ere tet b# emp!o#5ees as knon to occur in one or"ani6ation but ad not #et been pub!ic!#
reported$ 1ur indin" tat tere is an association beteen tet b# emp!o#5
ees and te or"ani6ation7s )We and te normative discover# tat te mor5
a!!# preerred )Wes ere identiied b# emp!o#ees in te or"ani6ation
ere tet as not knon to occur are important discoveries$ Sometimes
emp!o#ees stea!, and sco!ars seekin" to discover why ma# be aided b#
our indin"s$ (oreover, mana"ers ur"ent!# tr#in" to mana"e costs in tr#5
in" economic times see tet b# emp!o#ees as a si"niicant and undesir5ab!e prob!em$ We be!ieve tat our indin"s provide insi"ts or sco!ars
and mana"ers tr#in" to anser te uestion, W# do emp!o#ees stea!ohlbcrg, 3. 8A&@49$ Essays in moral development1 %he psychology ofmoral development'
volume $.+e ?ork =arper & *o$
Kur!and, ?. 8A&&A9$ e etica! imp!ications o te strai"t5commission compensation s#s5
tem5'n a"enc# perspective$ 6ournal of Business Ethics' //J, %5C$
Kur!and$ +$ 8A&&49$ )tics, incentives, and con!icts o interest II.practica! so!ution$ 6-2E24*l!20
o6Business Ethics' =, I-II.
Lemke, D$ K$, & @rcni, $ S$ 8200 I0. A change of climate toard rcspeci6ving :ictor and
Cullen4s ethical climate construct' Paperpresented at te annua! 'cadem# o (ana"e5
ment meetin", Wasin"ton, D$
Lo"sdon, J$ ($, & ?utas, K$ 8A&&9$ orporate socia! perormance, stakeo!der orientation$
and or"ani6ationa! mora! deve!opment$ Fournal o6 Business Ethics' A0, A2A35A22C$ (acLean,
A. 3. 8200 /9$ ick as tieves II. socia! crnbcddedness mode! o ru!e breakin" in
or"ani6ations$ Business & Society' 40,AC5A&C$
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Fames Weher is currently a professor of management and director ol the Beard
Centerfor #eadership inEthics at Duuesne University +e received his $hD in
3usiness administrationfrom the University of $itts3urgh and his ,BAfrom Saint
#ouis University +e has 3een pu3lished in numerous academic6ournals and is thecoauthor o!Business and Societ# orporate Strate"#, Pub!ic Po!ic#, )tics !6
-th ed' *rin2,cJra5+illK +e has served as thepresident andprogram chair of
the Social *ssues in,anagement division ol the Academy of ,anagement and the
*n5 ternational Association6or Business and Society E5mail1 eher6Lduedu
#ance BMurke is an associate professor of management atDuuesne University'
here he teaches leadership and strategic planning +e earned his BSfrom Stet5
son University and his,BA' ,A' and $hDfrom theFohnston Jraduate School or
,anagement at Cornell University;+isprimary research interests are ill leader5ship and strategy +e has a 3ookforthcoming 3yA,AC-, entitled Wat (akes
'!e:ander >reat, and recently contri3uted a chapter to 'dvances In ua!itative
1r"ani6ationa! *esearc$ +e has pu3lished in' among other 6ournals' (ana"e5
ment Science, ommunication *esearc, and Business )tics uarter!#$ E5mail1
kurkeLduedu
David W $en tierI is currently a professor o64 management science at Duuesne
University' here he teaches operations management and statistics +e received
his AB in applied mathematicsfrom Dartmouth and his,S and $hD in industrialadministration from Carnegie ,el2on +is research interests are primarily in the
development and testing ot heuristics' especially in production and inventory
planning and control systems +e is the coauthor o!=euristic Scedu!in" S#stems
!WileyI and has pu3lished in' among other 6ournals' The 'merican Statistician,
(ana"ement Science, and 1perations *esearc$ E5mail1 peniicosisducdu
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]