We develop a model of ethical decision making that integrates the decision-making process and the content variables considered by individuals facing ethical dilemmas. The process described in the model is drawn from Janis and Mann’s [1977, Decision Making: A Psychological Analysis of Conflict Choice and Commitment (The Free Press, New York)] work describing the decision process in an environment of conflict, choice and commitment. The model is enhanced by the inclusion of content variables derived from the ethics literature. The resulting integrated model aids in understanding the complexity of the decision process used by individuals facing ethical dilemmas and suggests variable interactions that could be field-tested. A better understanding of the process will help managers develop policies that enhance the likelihood of ethical behavior in their organizations. Copyright Springer Science+Business Media, Inc. 2007decision making, ethical framework, ethics, process, stress,

PurposeThe purpose of this paper is to present a unique version of the balanced scorecard developed and applied by the faculty of a university division.Design/methodology/approachThe paper uses a case study approach and uses the experiences of the faculty of a business school to describe the process and benefits of developing a custom balanced scorecard.FindingsThe unique version of the scorecard revitalized the faculty and resulted in a process model of organizational change based on the balanced scorecard that can be used in many academic divisions.Practical implicationsThis unique version of the scorecard helped to establish a program of continuous improvement and facilitated the formulation of strategic initiatives. The documentation provided in the scorecard supports requests for increased budgets and grant applications.Originality/valueUniversity and faculty administrators can use the model developed in this paper as a basis of a change program that can help design improvement programs, facilitate strategy development, and support funding requests.

Our study examines whether the certification requirements under Section 302 of the Sarbanes-Oxley Act of 2002 affect financial reporting decisions. Using 74 part-time MBA students as a proxy for corporate managers, we find that the participants' level of moral reasoning and their assessed influence of the Sarbanes-Oxley Act were significantly positively associated with the amount of loss recognized through their financial statement adjustment decisions. Consistent with expectations, there was also a significant interaction whereby the influence of the Sarbanes-Oxley Act was significantly positively associated with the adjustment decision for those participants at lower levels of moral reasoning, but not with the adjustment decision for those participants at higher levels. Thus, the findings from our study suggest that the Sarbanes-Oxley Act may be an effective deterrent for an overstatement of financial statement income by individuals at lower levels of moral reasoning. These results should be of considerable interest to regulators as they attempt to assess the effects of the Sarbanes-Oxley Act.

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