Moral judgment and Ethical decisions: The role of egoism, ethics of autonomy and shareholder value perspectives

As an attempt searching for the solution to the unethical business practices widespread in the world, especially in the emerging countries, this study focuses on exploring the effect of different ethics system on business mangers’ shareholder value perspective and their moral judgments. Through examining the relationship among market ethic, egoism and ethics of autonomy, this study makes a clear distinction between self-interest and selfishness and places ethics of autonomy in sharp contrast to ethical egoism. Given its core regulatory values, ethics of autonomy is expected to negatively impact the shareholder value perspective and consequently facilitate moral judgment and decisions. Conversely, ethical egoism strengthens the narrow view of corporate social responsibility and negatively affects moral judgement. The shareholder value perspective is proposed to negatively related to moral judgment while mediating the effect of the ethical systems on managers’ judgment and decisions.