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ABSTRACT Pakistan is a developing economy and it has been a country in the forefront of ethical crossroads in today‟s challenging workplace. This research surveyed 232 citizens, managers, and employees in Pakistan to measure their Personal Business Ethics Scores (PBES) to see if age, gender, education, management experience, and government work experience makes a difference in making more ethical decisions. This study contributes to the theory of moral development. The results suggest that age a
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  ABSTRACTPakistan is a developing economy and it has been a country in the forefront of ethical crossroads in today‟s challenging workplace. This research surveyed 232 citizens, managers, and employees in Pakistan to measure their Personal Business Ethics Scores (PBES) to see if age, gender,education, management experience, and government work experience makes a difference inmaking more ethical decisions. This study contributes to the theory of moral development. Theresults suggest that age and more years of management experience do lead to higher scores inmoral maturity, but the results are not statistically significant. Gender is not a factor in the ethicalmaturity scores. Higher levels of education did not lead to higher scores. However, statisticallysignificant differences were found for respondents with little or no government experience andthose with two or more years of government work experience. Unexpectedly, those without anygover nment work experience had significantly higher ethical maturity scores. Kohlberg‟s moral development theory regarding ethical maturity is partially supported since those who were olderand with more years of management experience do have higher business ethics scores.Key words: Business ethics, ethical maturity, morality, training, Pakistan, and moraldevelopment.Paper Type: Research PaperINTRODUCATIONAn ethical climate is crucial for nurturing innovation, entrepreneurship, and foreign investment in today‟s global and competitive business environment. The creation of this ethical climate requires comprehensive and relevant anti-corruption policies and procedures. Studies fromTransparency International in their 2009 Global Corruption Barometer (TransparencyInternational 2010) do not rate Pakistan very high on the enforcement and practices of ethicalstandards. As a matter of fact, several of their neighbors are also rated very high on corruption.With scores of 2.4, 1.8 and 1.3 for Pakistan, Iran and Afghanistan respectively, these three  neighboring countries are basically perceived by the world as having a highly corrupt publicsector. In order to increase foreign investments in this region, Afghan, Pakistani and Iranianleaders must work hard to weed out the presence of bribery and unethical behaviors in each country. Of course, a country‟s citizens as well as political and business leaders should attempt to report cases of bribery and not tolerate it in order to have a culture where people from aroundthe world would want to come for pleasure, business, and investment opportunities. It should benoted that Islam is the dominant religion in Pakistan, and it places a strong emphasis on justice,harmony, and generosity in the workplace (Ali and Amirshahi 2002). From an Islamic Far East ResearchCentre www.fareastjournals.com2perspective, the faith and belief in God will produce greater acceptance, tolerance, willingness,and sacrifices to carry out a job in an ethical and fair manner (Barham et al. 2009).There have been many authors and researchers who have studied ethics and the unethical behaviors of managers and students in academia, as they are concerned about “copycatting” and the deleterious influence of inappropriate behaviors by managers and senior officers of majorfirms (Mujtaba et al. 2009; Cavico and Mujtaba 2009; Clark 2008; Crary 2008; McGill 2008;Desplaces et al. 2007; Gao 2004; Klein et al. 2007; Lawson 2004; Cherry et al. 2003; Nonis andSwift 2001; Ridley and Husband 1998; and others). Perhaps it is greed that influences people to behave unethically; or it could be a person‟s education, age or lack of management experience that leads one to make ethical lapses in judgment. Moral development is the growth of a person‟s ability to di stinguish right from wrong, and itrefers to progressive and continuous changes from the beginning of life until the end (Mujtaba etal. 2009). Moral development occurs through the process of growth and socialization during one‟s formal and informal edu cation and by gaining management experience. A key researchquestion might be to see which demographic variables make a difference in the ethical decisionmaking of Pakistani respondents. Consequently, this current research is designed to explore and  assess the Personal Business Ethics Scores (PBES) of Pakistani respondents. Building on thetheory of moral development, the purpose of this study is to determine whether age, education,gender, government work experience, and management experience gained through thematuration continuum or process are related to ethical decision making with the adult workingpopulation in Pakistan.AGE AND ETHICS Age is important since it is associated with experience and wisdom. As such, a person‟s age is expected to relate to that person‟s moral maturity. However, Freeman‟s findings conclude that there is no significant relationship between age and moral maturity (Freeman 2007, p. 92). But, Freeman noted that his results on age were “at variance with substantial research that found ageas a significant influence in moral maturity” (2007, p. 107). Several studies have indicated that there is no relationship between age and the level of ethical reasoning of managers (Galla 2006,p. 52; Heron 2006, p. 143; Huang 2006).However, it is generally agreed that older individuals tend to be more ethical or possess morestrict views of moral issues than younger ones. As individuals progress through the experience of life, they should develop higher stages of moral cognition. According to Huang (2006) studentsin the 40-plus age group are the most ethical. The findings are consistent with research that olderstudents exhibit more ethical inclinations. Some studies conclude that younger respondents tendto be less ethical than older people (Huang, 2006). Ariail (2005) found that the age groups 40-49and 50-59 had higher DIT moral maturity scores than the other groups. Chavez (2003) indicatedthat banking employees who are less than 30 years of age tend to have lower moral maturityscores than banking employees who are 30 years of age and older (Chavez 2003, p. 58).Hyppolite (2003) concluded that the average score for moral maturity of older participants washigher than the one for younger respondents. As one matures with age, his or her average moralmaturity score is likely to increase. This research indicated age was a predictor of individual  maturity level (Hyppolite 2003 p. 139). Cannon‟s results revealed that there is empirical supportfor age as a predictor of moral development in a meta-analysis of multidisciplinary ethics studies (Cannon 2001, p. 195). Kohlberg‟s Cognitive Moral Development theory posits that as a person increases in age, his or her capability and level of moral reasoning should concomitantly andprogressively increase too. Therefore, the study for this article focused on the followinghypothesis:Hypothesis I - Pakistanis who are 25 years of age or younger will have PersonalBusiness Ethics Scores (PBES) that are equivalent to or greater than those individualswho are 36 years of age or older.Far East Journal of Psychology and BusinessVol 3 No 1 April 20113MANAGEMENT EXPERIENCE AND ETHICSCommon sense supports the idea that there is a relationship between tenure or experience as a manager and one‟s level of moral maturity. This study will attempt to find empirical evidence on whether this relationship actually exists. Kennedy (2003) indicated that the experience held by an organizational leader did not relate positively to the leader‟s moral judgment level (Kennedy 2003, p. 75). Huang found that no significant relationship existed in the ethical reasoningabilities of the managers based on their level of education (2006, p. 94). Hyppolite found thatthere was not a positive relationship between the rank and position variables and moral maturity(2003, p. 139).However, Cannon (2001, pp. 198- 99) did find a “slightly higher” ethical maturity score for working adults with at least 14 years of work experience. Cannon noted that the relationshipbetween work experience and moral development is not well documented in the literature (2001,p. 198). Therefore, the study for this article focused on the following hypothesis:Hypothesis II  – Pakistani respondents who do not have any management experience willhave Personal Business Ethics Scores that are equivalent to or greater than respondents
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