Moral Intensity, Issue Characteristics and Ethical Issue Recognition in Sales Situations

Researchers have considered individual and organizational factors of ethical decision making. However, they have little interest in situational factors (McClaren 2013) which is surprising given the many situations sales persons face. We address this issue using two pilot qualitative studies successively and a 2 by 2 within-subject experiment with sales scenarios. Qualitative and quantitative data are obtained from front-line employees of the main French retail banks that serve low-income customers. We show that the recognition of an ethical issue differs depending on the role behavior salespersons are engaged in and the nature of the conflict of interest they face. Moreover, the combined effect of these two situational characteristics is mediated by moral intensity. This study not only adds evidence on situational factors affecting ethical decision. It also extends empirical research on sales ethics by revealing sales situations that are not considered in the empirical literature. The research implications of the findings are discussed along with the study's limitations and suggestions for future research