Several factors contribute to unethical behavior including:
1.Personal ethics - the generally accepted principles of right and wrong governing the conduct of individuals
expatriates may face pressure to violate their personal ethics because they are away from their ordinary social context and supporting culture
managers fail to question whether a decision or action is ethical, and instead rely on economic analysis when making decisions
2.Decision-making processes - the values and norms that are shared among employees of an organization
organization culture that does not emphasize business culture encourages unethical behavior
3.Organization culture - organization culture can legitimize unethical behavior or reinforce the need for ethical behavior
4.Unrealistic performance expectations - encourage managers to cut corners or act in an unethical manner
5Leadership - helps establish the culture of an organization, and set the examples that others follow
when leaders act unethically, subordinates may act unethically, too
Societal culture – firms headquartered in cultures where individualism and uncertainty avoidance are strong are more likely to stress ethical behavior than firms headquartered in cultures where masculinity and power distance rank high