Using a Business Simulation to Study the Determinants of Ethical Behavior

Abstract

This study reports the results of an empirical investigation of the factors that influence whether an individual makes an ethical or unethical business decision. This study used a business simulation game to assess how the subjects actually behaved when confronted with an ethical dilemma as opposed to statements of expected behavior. The results found significant differences in ethical behavior across cultures and family structures. The moral development of the subject, the subjects’ view of their own ethics, and their uncertainty over the presence of ethical issues also significantly affected their ethical behavior.