Organizational ethical development model

Developed ethical

Emerging ethical

Responsive

Legalistic

Amoral

• Stage 5 DEVELOPED ETHICAL Driven by carefully thought out principles

• Stage 4 EMERGING ETHICAL Seeks a balance between ethics and profit. – Firm has ethical artifacts such as codes and ethics

committees

• Stage 3 RESPONSIVE Seeks ways to help the local community– Recognizes socially responsible behaviour is in the

best economic interest of the firm

• Stage 2 LEGALISTIC Follows the letter of the law– What is legal is ethical

• Stage 1 AMORAL maximum profitability at all costs– Owners and managers are key stakeholdersSource Reidenbach R E and Robin D P, A

Conceptual Model of Corporate Moral Development, Journal of Business Ethics April 1991 vol 10 page 274