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| The relationship between locus of control & ethical behaviour … in the financial sector
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work. The way locus of control may influence ethical behaviour among employees working in the South African financial sector, however, has not yet been demonstrated. Based on the abovementioned, the assumption can be made that locus of control can be linked to ethical behaviour. This relation con- firms the necessity for research into this area of influence upon ethical behaviour, in order to increase knowledge and understanding of both phenomena (ethical behaviour and locus of control) and to make practical recommendations towards aiding the increase of ethical behaviour among employees within the financial sector in South Africa. 2. Ethical behaviour 2.1 Concept definition The word ethics is derived from the Greek word ethos, which means character (Duska, 2005:27). According to Safakli (2005:24) ethics refers to the standards of right and wrong that prescribe what humans ought to do. Grobler et al. (2006:32) add to this by de- scribing ethics as a discipline which deals with obligations and moral duty, or with what is good and bad, right and wrong. Towards an understanding of business ethics, Trevino and Nelson (2007:16) define business ethics as the study of behaviour within a business context which is consistent with the principles, norms and standards of business practices as agreed with the community. Furthermore, Weiss (1998:7) states that there is no clear definition for the term business ethics, but confirms the consensus that busi- ness ethics require reasoning and judgement based on beliefs and principles for making choices, which balance economic self interests against welfare and social claims. Nash (1994:11) adds to this by stating that business ethics is a study of how personal moral norms relate to the goals and activities of commercial enterprise. Ethics is therefore not a separate moral standard, but a study of how the business environment presents its own unique problems for a moral person functioning within the business context. 2.2 The development of an ethical disposition From the aforementioned discussion regarding the nature and de- finition of the construct ethics, and specifically business ethics, the question arises regarding the means by which an ethical disposition
E. Boshoff & E.S. van Zyl Koers 76(2) 2011:283-303
287 develops. In the following, the focus will be placed on two prominent approaches regarding moral development. 2.2.1 The cognitive-structural approach Kohlberg’s moral reasoning theory is central to the cognitive-struc- tural field of moral reasoning. According to Kohlberg’s theory (Kohl- berg, 1969:376; Gerdes et al., 1988:291-293; Parsons, 2007:54-56; Trevino & Nelson, 2007:126-128), moral reasoning develops se- quentially through three broad levels, each composed of two stages. The pre-conventional level of moral development is particularly cha- racteristic of the mid-childhood years (age five to nine years). Two stages within this level are distinguished, namely the “punishment- obedience orientation” (stage 1), and the “naive hedonistic and in- strumental orientation” (stage 2). During stage 1 behaviour is only evaluated according to the consequences thereof. Decisions rest solely on the avoidance of punishment irrespective of others’ needs. During stage 2 the individual’s behaviour is directed towards per- sonal advantage and interest. There is an expectation that, should something be done for someone else, the said person will return the action. The conventional level of moral development is characteristic of most adolescents and adults. The two stages distinguished on this level are “the good son/daughter orientation” (stage 3), and the “law and order orientation” (stage 4). During stage 3 behaviour deemed morally right is viewed as that behaviour which benefits or helps others, as well as behaviour which is approved of by close others. Therefore, an attempt is made to avoid critique and receive ap- proval. During stage 4, moral behaviour is associated with perfor- mance, respect for authority, and maintenance of existing social law and order. The post-conventional level of moral development is characteristic of individuals who define moral values and principles in isolation from the authority of the groups of persons who maintain these principles. Individuals are thus able to make rational decisions between con- flicting standards. The following two stages are distinguished within this level, namely the “social contract orientation” (stage 5), and “orientation according to universally ethical principles” (stage 6). Du- ring stage 5, right or wrong behaviour is defined in terms of laws and established rules. In addition to laws and rules the individual’s per- sonal values and beliefs serve as a yardstick of what is right or wrong. Should conflict exist between the individual’s standards and |