An Exploratory Investigation into the Effects of Team Composition on Moral Orientation

In the past two decades, there have been a number of significant events! trends which have had a great impact on the ways organizations operate and make decisions. Some of these changes, such as the increasing use of technology and the Internet, are well documented and well known by the general population. Other trends! events, which in some respects may be just as significant, may be less well studied and understood. Some of these are the increase in the use of teams/groups in organizational decision making, the increase in females into middle- and upper-level management positions, and the pressure for organizations to use socially responsive practices with their stakeholders (Koretz, 2000; Schminke, 1997; Eisenhardt et al., 1997). Both managers and the academic press have increasingly emphasized the importance of teams for achieving organizational success in the changing modem economy (Cohen and Bailey, 1997). Gordon (1992) states that 82% of companies with 100 or more employees reported they used teams. Sixty-eight percent of Fortune 1000 companies reported they used self-managing work teams and 91% reported that they used employee participation groups in 1994 compared to 28% and 70%, respectively, in 1987 (Lawler et aL, 1995). These teams have been used to enhance the product development process, better manage the production or sales function, and aid in the redesign of corporate policies and/or structure (Katzenbach, 1997). The importance of teams has been recognized by Goodman et aL (1986) who have stated teams are the central building block for getting work done in the organization. Traditionally the gender makeup of these teams, especially at upperand middle-levels of the organization, has been primarily male. However, as more females attain middle and top-level positions within organizations, this is changing. Gender differences and/or similarities add another important dimension to the study of team interaction and group decision making. As these changes in the ways in which businesses operate have occurred, the ethical orientation and social responsiveness of firms has also undergone increasing scrutiny by various internal and external stakeholders. In response to this, universities, professional and trade associations, and corporations have instituted required coursework, training programs, and ethical codes of conduct as ways of encouraging a higher level of moral orientation and ethical action among their students, members, and employees (Butterfield et at., 2000; Cole and Smith, 1995; Dabholkar and Kellaris, 1992; Ferrell et al., 1989; Fraedrich, 1993; Weaver et at., 1999). Suppo rt for the implementation of programs designed to enhance moral orientation and ethical action can be found in studies that have reported links between corporate ethical behavior and enhanced levels of financial performance (e.g., Cochran and Wood, 1984; Verschoor, 1998; Waddock and Graves, 1994). Furthermore, other studies (Albinger and Freeman, 2000; Waddock and Graves, 1994) show that organizations that act in a more socially responsive manner may be more attractive to certain groups ofjob seekers. In addition, Rust et al. (2001) have proposed that expenditures to improve customers' perceptions of a finn's ethical standards can have a significant impact on what they term customer equity, which they link to enhancements in firm ROI. Given the increased use of teams and the increase of females in key decision-making roles documented above, it would appear that this research is overdue. While it is true that research investigating both the differences in moral orientation between males and females (Boldizar et at., 1989; Brabeck, 1983; Lifton, 1985; Snarey, 1985; Thoma, 1986; Walker 1984) and the role of groups on ethical decision making (e.g., Ford and Richardson, 1994; Schminke and Wells, 1999; Zey-Ferrell and Ferrell, 1982) have been the subject of a large number of research studies, there has not, to our knowledge, been any studies which have simultaneously investigated the role of gender and teams on ethics and moral development in the firm. …