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THE EFFECT OF ETHICAL SIGNALS ON RECRUITMENT ...

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the practices or implementation of these codes via culture is what truly defines the<br />

“ethicality” of the organization.<br />

Individual Component<br />

In addition to the aforementioned social component to ethics, there is also a large<br />

individual component. Individuals perceive ethical situations differently and through<br />

different lenses (Ferrell & Gresham, 1985). Individuals develop their moral codes of<br />

conduct over time and experiences (Shultz & Brender-Ilan, 2004). Therefore, moral<br />

codes of behavior differ across individuals, who have diverse beliefs about ethical<br />

decisions (Hunt & Hansen, 2007). Psychologists such as Lawrence Kohlberg have made<br />

important contributions to the ethics literature, especially regarding individual<br />

differences in ethical judgments. Kohlberg’s Theory of Moral Development (1969) has<br />

been dominant in the fields of moral psychology and education (Modgil & Modgil,<br />

1985). His work has crossed the disciplinary boundary between psychology and<br />

philosophy (Boyd, 1985) and has influenced the work of business ethicists.<br />

Kohlberg’s work presented six stages of cognitive moral development (CMD).<br />

As reviewed by Kohlberg and Hersh (1977) as well as by Trevino (1986), stages 1 and 2<br />

are the preconventional level, stages 3 and 4 are the conventional level, and stages 5 and<br />

6 are the postconventional or principled level. Stage 1 is generally referred to as<br />

“punishment and obedience orientation,” where individuals’ behaviors reflect the<br />

avoidance of punishment. Stage 2 is the “instrumental-relativist orientation,” described<br />

by satisfying one’s own needs and the needs of others in reciprocity only. Stage 3 is the<br />

“interpersonal concordance orientation,” where individuals’ good behaviors are a result<br />

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