Consumer Ethics in the European Union: A Comparison of Northern and Southern Views Author(s): Michael Jay Polonsky, Pedro

Quelhas Brito, Jorge Pinto, Nicola Higgs-Kleyn Source: Journal of Business Ethics, Vol. 31, No. 2 (May, 2001), pp. 117-130 Published by: Springer Stable URL: http://www.jstor.org/stable/25074522 . Accessed: 11/04/2011 12:32
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Consumer
European Comparison

Ethics
Union:

in the
A Michael Jay Polonsky Pedro Quelhas Brito Jorge Pinto
Nicola Higgs-Kleyn

of Northern

and Southern

Views

There is a growing ABSTRACT. interest in under consumer ethical actions in relation to their standing dealings with firms. This paper examines whether there are differences between Northern and Southern European Union ethical consumer of (EU) consumers' perceptions behaviour using Muncy and Vitell's

Introduction The introduction Union of (EU) the one Euro step market. moves closer the to

European

Ethics Scale (CES). The (1992) Consumer study students across four Northern samples 962 university EU countries Scotland, The (Germany, Denmark, and four Southern EU countries Netherlands) are Some differences (Portugal, Spain, Italy, Greece). identified question
EU as one

a truly becoming almost there daily popular

"single" are issues

However, in the discussed the homo frequently differences economic substan

press that bring into question of this market. These problems geneity focus on broad macro issues, such as or underlying in political structures conditions tial 1999 that make integration there was complete For difficult.

the two samples, which might between the ability of organisations to consider the
homogeneous market.

or even

discussion

KEY WORDS:

consumer

ethics,

cross-cultural,

EU,

globalization/regionalization Michael Jay Polonsky is a Senior Lecturer in Marketing at the University of Newcastle. His research focuses on Stakeholder Environmental theory in Marketing, Marketing,
Social/Ethical

of having priateness rate. It was suggested force those economies such a as Ireland,

in early example, to the appro relating a interest single European single rate would that were On already growing, the other hand,

that a low

to overheat.

Educational
Issues in

Issues
and

in Marketing,
Cross-Cultural

Marketing

research. He has published a number of works in a diverse range of international journals, including two previous papers in theJBE. Pedro Quelhas Brito is an Assistant Lecturer in Retailing at the University of Porto. His research interestsfocuses
on patronage research. behaviour, He decision is author making and and cross of two cultural books. co-author

rate would in depressed result high single such as Spain, further economies, experiencing economic slowing. While of governmental coordination policies one the member is essential, countries amongst of the major motivations of the European Union was to enable of trade expansion amongst member countries web to the EU's (Blanchard, 1996). According page the ultimate goal of the ". . . is to promote economic

Jorge Pinto University

marketing

is Assistant
and

at the Professor ofManagement on: industrial Aveiro. His research of focuses

cross-cultural research.

Union European and social progress which is balanced and sus assert on the the European tainable, identity scene and introduce a international European citizenship (EU, partly one for the nationals That of the Member States is of can 1999)." Union is, the European to facilitate the development in which firms

Nicola Higgs-Kleyn is a marketing consultant who lectures Her research interests include marketing ethics, part. cross-cultural research and marketing strategy. She has published a number of papers in international journals including two previous papers in theJBE.

European comes this benefit operate. However, achieving at a cost. For a example, simply establishing

designed larger market

r"

>L* Journal of Business Ethics 31: 117-130, 2001. ? 2001 Kluwer Academic Publishers. Printed in theNetherlands.

118 Michael common

Jay Polonsky

et al.

set of standards within industries many is something the that can only be achieved with and requires exten assistance of EU bureaucrats, in most EU countries. sive change by firms benefits that there are market The premise the EU the
a

as well that they interact with consumers, way as other businesses, are also influenced which by national culture (Harris, 1982). on examining one aspect This paper focuses firm interaction, of consumer that of consumer unethical behaviour using Ethics consumers in Muncy Scale within relation to business transactions Consumer examine this and Vitell's

to in

as an implicit sumers within the member has same or

assumption countries

that con behave

Levitt's behaviours. cultural

similar way, which is in line with i.e. there is idea of globalisation, (1983)
in consumers' wants, needs and

(1992) than (CES). Rather individual countries,

convergence

this also assumes that However, consumer not traits dictating behaviour business similar, but that divergent only become become similar as well. cultures (Harris, 1982) only when occur both can the these full change standardization be types benefits of of cultural global r?gion the

study will EU Northern Scotland, countries Students consumers somewhat studies "future" become The

consumers in into those group countries Denmark, (Germany, and Southern EU Netherlands) Greece). Spain, Italy, are used as a proxy for be this might While

(Portugal, at universities in

For

alisation) Globalisation

(or in the case of the EU realised. and r?gionalisation

general. in many of the cross-cultural artificial, are used as a proxy for student samples

deal with

of many integration broader worldwide

a country strategies within or regional market (Jeannet and Hennessey, 1998). Therefore, region having assumes that firm behav ally similar consumers as customer iour, as well behaviour, beyond such as product activities preferences simple in It also assumes that any differences converge. are consumers interact and firms that the way reduced. However, such as the if cultural

students and while may managers in the future, business leaders they are as such they are a repre consumers today, and In addition, sentative frame. using sampling as respondents assures homogeneity in students terms of academic age and interests. free educational This enables level, as well as to than comparisons factors other

be made culture question between

structs.

of moderating (Waller and Polonsky, examines whether Southern

1999). The research there are differences EU consumers

factors, even subtle ones evaluation of friendship, time, space, and possessions (Hall, 1960), are radically to for organisations it will be difficult different marketing alisation may not result or highly marketing integrated
tactics.

and Northern

using Muncy

and Vitell's

(1992) 4 CES

con

standardise

activities

thus r?gion in homogeneous markets strategies and

and

discusses The section background following consumer for examining the rationale ethics and on the Northern EU Southern for focusing distinction. follows, The examining scales, the analytical methods techniques sampling used. Analysis of the results, lim and discussion and conclusions itations and future research, and follow. methodology the consumer section ethics then

it might be suggested Thus, more similar as Levitt become then become influence cultures and consumption more similar, which of cultural

that if consumers (1983) suggested, will also have to will reduce of the situations high that of

(i.e. high context) context cultures Hofstede different (1994) cultures

interpretation and thus in the long-run Given should disappear. there were

Background Consumer Much focus

found

a range

it is unlikely in Europe, that across the European Union behaviour consumer's if at all and similar will become overnight, complete in the Therefore, may regionalization or even term short firms need to be not be achievable term. with the medium

has focused

concerned

ethics literature of the business/marketing on the buyer - seller dyad (Brenner and Festervand, and Molander, 1977; Vitell 1987) or the employer firm relationship (Al-Khatib

Consumer et Such the an fact

Ethics be

in the European Lebanon as the U.S. Eastman,

Union

119 et al., 1994; Rawwas et al., and 1992;

al.,

1997). by

explained

emphasis that the how

might "marketing

(Rawwas

1998) South Africa (Higgs-Kleyn,

1998), aswell

traditionally concept" tions can better deal with is traditionally of power consumers assumed

considers

organisa customers. As such, it have the that firms relationship to be protected. around of and This the

et al., 1997; Muncy (Al-Khatib and Vitell, 1998; Muncy

Rallapalli

et al, 1994).

majority therefore,

in need a from

the

presumption world developing consumers protect The been been on rather result that within the part than For "... of the

has resulted

in countries range such

and Vitell's (1992) original Consumer Muncy was developed in the U.S. Ethics Scale (CES) a range of items that was over several years using to consist of 18 and validated reduced refined, a range of "questionable" items examining to their dealing consumer in relation behaviours

to regulations abuses. corporate has has

of

this perspective adopting there literature the ethics of the ethical in relation firm-consumer et al. 1990's consumers traditional

with firms (Al-Khatib, 1997). Although many of

the non-U.S. for cultural be to not studies have reasons omitted the or added items (i.e. in these items were deemed

less examination

behaviours to firms, per

spective. suggests limited the

example, that in the studies

(1997) there were early exist that have examined in (to ethics studies focused situations added). attitudes have been such the on as

Al-Khatib

or others cultures applicable were to be more deemed that were applicable and Vitell's other cultures). Muncy added within that there were items identified (1972) original or categories constructs of ethically four distinct consumer and these have behaviour questionable across to be reliable found been consistently are labeled as: constructs The countries.1 at the Expense of the Proactively Benefiting are initiated by con situations Seller. These the act to be illegal; who sumers, perceive at Expense of the Seller. Passively Benefiting These which Deceptive initiated situations are not result from corrected seller's mistakes, by consumers. are situations These not that if any

consumer's

marketplace), very specific

perspective of these and most and limited

(p. 750 emphasis shoplifting" Some studies of consumers' unethical taken. with al., consumer In particular, a number of 1996, 1997; al., et

towards under this issue

practices Vitell has examined co-researchers and

Muncy 1994; Rawwas Rallapalli et al., 1994; Vitell et al., 1994; Strutton Rawwas et al., 1991; Vitell and Muncy, 1992). This is not to suggest this that others have not considered a range of other authors have of consumers' examined also perceptions consumer et al., 1998; behaviour unethical (Chan et al., Fullerton 1996; 1998; Higgs-Kleyn, et al., 1995; and Eastman, 1998; Rawwas Muncy issue as well, for Rawwas, 1996; Wilkes, the empirical works versions of Muncy in

et (Al-Khatib 1992; Vitell, et al., 1998;

Practices.

who do consumers, by the act to be illegal. perceive are situations No Harm/No Foul. These consumers harm to the perceive seller. result in little

of 1978). The majority this area have applied (1992) Consumer

Ethics of the works Many using the Consumer a range of other how Scale have also examined in and/or variables moderate explain differences consumers consumers ethical their views. For example, Al-Khatib et al.

and Vitell's

Ethics Scale (CES). While the CES was initially developed

U.S. it has been single country is appropriate paper. Austria 1995, Some

(1997) used the CES to profile U.S. and Egyptian in the

and examine preferred can be which of Machiavellianism, degree as a kind of cool detachment that makes defined individuals Other focused and/or graphic earlier involved with others. less emotionally ethical attitudes studies of consumer beliefs, the role of respondent's and ethical ideology,

in a range of widely applied studies and thus and cross-cultural examination within this examined

for further

of the countries

1996), Egypt (Rawwas, et al, 1994), Hong 1997; Rawwas et al., 1995), (Chan et al., 1998; Rawwas et al., et al., 1995; Rawwas (Rawwas

include; et al, (Al-Khatib Kong Ireland 1998),

defined moderating narrowly factors demo including explanatory variables such as age, gender, education,

on more

120 Michael income and social class

Jay Polonsky

et al.

race,

Rayburn 1997) Mayo Vitell For factors

and Rayburn, and personal characteristics and Marks, 1990; Strutton and Murcy, 1992; Rallapalli the most within how part CES studies one and society these "other" few attitudes

(Higgs-Kleyn, 1996; Strutton (Wilkes, et al.,

1998; et al., 1978; 1994;

or may in this case, which the EU block, may not reflect "one" set of cultural values, this study into examines broader groupings regional Northern which and Southern is discussed below. Europe, the rationale for

et al., 1994). on have focused have tried to interact prac studies or

determine with that tices on

variables ethical

North/South Some

rationale

consumers'

towards

their part. The exist have usually to the

cross-cultural to look if differences

chosen

at diver

gent markets, in similarities For

determine various

example, whether Egyptian consumer ethical responded for selecting

Al-Khatib

exist. relationships et al. (1997) examined consumers' and U.S. perceived (i.e. differently The rationale differently). two economically and cultur to that they wanted the relationships have settings. to tried situations

writers have suggested that Europe needs a process of cultural change, to undergo such that as a common as well there is a common identity market 1993; Seed, 1993). Such a per (M?ller, seems to be a Utopian the ideal, ignoring spective realities have of "combining" different political states who independent histories traditions, (even and in cultures, related),

to the CES these

was countries, ally divergent examine whether broadly examined Other examine for example at Northern markets An therefore et al., held in diverse cross-cultural countries Rawwas Ireland

cross-cultural works

(Bohata, 1997). in today's about differences thinking in terms of the problems think many Europe, countries associated with joining that have devel When oped under and Europe, controlled i.e. Western markets, capitalistic evolved under those that have i.e. Eastern a

they are often though some cases even values

that have more

"similarities", to look et al. (1995) choose as these two and Hong Kong

links and thus might British/U.K. some common values. underlying and Lebanon examination of Egypt (Rawwas have have

system, Europe and Schnorbus, 1993; 1993; Ballew (Anonymous, the previously controlled Dale, 1995). While to competi Eastern economies have been open tion for several years, there are still extensive difficulties This ences activities is not or the shift to full capitalism. making to suggest that there are no differ difficulties within Western associated with business as has capitalist For example, differences codes markets, research in

(Rawwas, 1994) and Ireland and Lebanon was also undertaken to focus on countries 1998) that of war and/or that had similar environments, While there for is an appropriate justification it could be these pairs of countries, should also focus their that researchers or multiple countries pairs such as the block or market, trading or CIS. It might be assumed that such more blocks should trading in countries similar than If any ethical on

unrest.

examining suggested examination within one

these may exist as well. found that there are practices, within Western such the as

corporate

EU, NAFTA countries within possibly markets be

developed capitalist and Schlegelmilch, Europe (Langlois one business this is only 1990). While practice, that there may be other there is other evidence within Western EU countries full

corporate of ethics, of markets

differences makes

that

formally "integrated". of the examination occur, to organ be even more values would pertinent as they isations operating within these regions, differences be "unified" operating As market. within such a heterogeneous the study described on one differ trading

that are not

would

"difficult", European integration with the East associated the problems ignoring ? West differences 1995). (Grimond, involves the East West distinction While is a much there differences, important regional within division Southern older Northern which relates to overall that That should economic also be devel consid and growth 1995).

to focus this work in this paper attempts rather than examine market. However, one ences between within "countries"

Europe,

opment ered (Wood,

is historically,

Northern

Consumer

Ethics

in the European 1997) moral

tries.

Union

121 there are differences of "Westernised" countries are not in the in coun tradi

to be more have tended countries/regions and Southern countries and regions industrialized more In fact, have been agrarian (Loxley, 1998). the differences Northern between and Southern regions European between have been discussed within individual as well as of countries Northern

found

that

judgements and developing developed While Southern EU of

and values

consumers'

1991), (Cagliozzi, and Southern regions differences and Southern that between

considered tionally an examination characteristics

to be

nations," "developing various socio-economic used do tend to examine devel

Europe

(Wood, 1995).
the two Van Europe) "... business

frequently countries

In terms of ethical (Northern regions (1997) has Luijk in Northern ethics

oping countries (Thirlwall, 1989), identifies that

Southern EU to be "different" EU as compared to their Northern counterparts, are sometimes blurred of selected Nations socio and countries

suggested and Western

a certain momentum acquired ... years may seem (p. 1579)", which, that within Southern and Eastern business Wood ethics (1995) has been also slower that there

have Europe the last 15 during to suggest Europe to "catch on".2 are gener between highly and of and business consumer and less the to sales

the distinctions although (see Table I). a I provides Table economic World Bank. data As from can be

list

the United lower

seen Southern

ally, important industrialized industrialized South. business

suggests ethical differences of

have; slightly generally rates, lower per capita schooling, proportions areas. All population countries Northern are not regions. higher of their of these

countries and

the North countries

population growth fewer years of income; rates and lower infant mortality live in urban population other than lower factors, that Southern EU suggests

Although transactions

developing Wood's examined

it might interface, ethics would also be different Southern countries example, economies, are considered Rossouw inclusion

in the purchasing be inferred that

in Northern

if Southern especially to be less developed. For that the suggests (1994) into business may be practices difficult and

than their developed these differences However, neighbors. across universal countries within the For

growth are "less"

general in developing

of ethics countries

in terms of population example, Greece's is more growth population growth "similar" to Northern EU countries and Scotland is more "similar" with capita Southern income EU countries. is In the case of per

Priem et al. (1998) and Al-Khatib

et al. (1995,

Italy's figure

TABLE I
Country socioeconomic characteristics

REGION/
Country

Population growth 1991-1997b

Per

capita

Years

Infant mortalityb

% of urban population13

GNP

1997a

schooling3

SOUTH
Greece 0.4 0.2 0.1 0.2

Italy Portugal Spain

11,673 21,219 10,923 14,641

13.8 NA 14.3 15.5

60 67 37 77

NORTH
Denmark Germany The Netherlands Scotland Based (U.K.) Nations3
0.4 0.4 0.6 0.3

33,387 28,728 25,426 19,847 Bankb figures 1998.

14.6 15.1 15.5 16.3

85 87 89 89

on United

and World

122 Michael more "similar" to Northern countries and

Jay Polonsky for

et al. countries it was its cultural were excluded. explicitly not to include France characteristics it borders difficult country seven to i.e.

unemployment Portugal's to the Northern "similar" to education more

rate appears countries. of EU

to be more In regards is schooling countries between

Some U.K.). For example because of

decided

diversified make of

years Spain's mean to the Northern "similar" rate.

and geographical other European classify

position, countries

as is its infant Mortality that there Assuming

it as a northern

or a southern selection

are differences

Woods regions and that

and Priem et al. support broadly to be differences consumers' would EU have mean would be

(1995), Van Luijk (1997)

(Mermet, 1991). The versities was undertaken manner, of their countries i.e. the authors academic who or then

this would (1998) are correct, the idea that there are also likely in Northern and Southern Which throughout consumers EU if true the who

specific uni in pragmatic convenient relied on the generosity within the data each of are the not collection.

contacts

assisted with

ethical

perspectives. that firms dealing with interacting ethical outlooks. Table

If universities representative, bias introduced, be the case.

particular there could this

degrees be some is not

although

response to believed

differing

recognised the Southern their Northern fit into

nations.

that while countries

it is Although, I seems to suggest are "less than developed"

students Using itself to introduce that within are

it is unclear if they counterparts, the traditional of "developing" definition

in samples was not deemed as it has been bias, suggested cross-cultural that students research and such and the thus for student to control as age, a rage education In

relatively homogeneous samples enable researchers factors, (Waller much of

of moderating etc. levels,

Methodology
The esis focus that of the study is to examine the hypoth consumers in Southern and Northern the EU be have similar views towards or unac considered

addition business consumer et al.,

ethics ethics, 1998;

and more has used

of regions what could

Eastman, addition, extreme

permissible behaviour. This can be further ceptable consumer broken down into four sub-hypotheses relating to differences between the regions for each of the four dimensions of the CES; Proactively at the Expense of the Seller; Passively at Expense of the Seller, Deceptive from

Higgs-Kleyn, et 1998; Rallapalli are consumers students

examining CES based specifically student samples (Chan and 1998; Muncy al., and In 1994). thus at the

Polonsky, literature

1999).

the sample would be representative of a of the wider However, segment population. as a that they have been used extensively given proxy for considered The from back when ment have culture the sampling consumers, a major to be limitation. frame is not

Benefiting

Benefiting and No Harm/No Foul. Practices, The data used in this study was collected students four from business studying Southern EU in 8 EU

was instrument translated survey to the host and county English language to English translated from the host language CES necessary, to ensure using the original CES instru linguistic consistency. Although, be noted that cultural differences could on the relevance within each functional

countries, countries Italy,3 Greece and Spain and four from Portugal Northern EU countries Scotland, Denmark, The Netherlands and Germany. The sample includes which member, chosen Northern all EU also to countries from Southern Southern Europe, includes Italy. The the one Northern founding were countries

it should

impacted

not (i.e. may equivalency III provides Table the English wording of exist). and Vitell's which items, Muncy (1992) original were used in the English version of the instru ment. istrated from The was a self-admin questionnaire to undergraduate students questionnaire CES of the in total 962 there were countries, II for a break Table (See The sample is region

a broad cross section of represent EU members and were selected from the in the

the and members, founding Germany and two of those who Netherlands, joined and Scotland 1961, Denmark (as a proxy for

each

respondents down by region/country).

Consumer

Ethics

in the European

Union

123

TABLE II
Sample REGION/ Country distribution amongst No. of regions and countries total Percentage (Region)

50% of respon ally balanced with approximately however the composi dents from each region, to the tion of each region is not proportional country bution within populations of ages (mean 20.7 were similar the EU. years) within The and distri gender and regions an 8.1% non were

respondents

SOUTH
Portugal Spain Italy
Greece

478 123 85 123 147 484

95 156 140 93

49.68% (100%)
12.8% 8.8% (25.73%) (17.78%)

(52.8% male) across regions. Overall there was rate and 2% of the response excluded from resulting plete, 89.9%. Within CES 1995, tioned when cultural scale have analysis because in an effective

12.8% (25.73%) 15.3% (30.75%) 50.31% (100%)

9.9% 16.2% 14.6% 9.3% (19.63%) (32.23%) (28.93%) (19.21%)

surveys incom they were rate of response of the et al., men have

NORTH
Germany Denmark Scotland The Netherlands Total

the literature been

962

100%

1997; Higgs-Kleyn, were made earlier, adjustments it was deemed that they did relevance. Within this study

a range of versions utilised (Al-Khatib 1998). As was not

to items a 17-item

TABLE III
Scale: 1 - Strongly ethics scale items Consumer it is wrong; 5 believe Strongly believe it is not wrong

From Illegal Activity Benefiting Actively in a retail store price tags on merchandise a can of cola in a supermarket without paying for it Drinking a lost item as "stolen" to an insurance company in order to collect the money Reporting to a clerk for an unpriced item (Initially loaded Giving misleading price information and was omitted from analysis) Benefiting to you (Not in this study but included Using long distance code that does not belong Changing original CES instrument under this construct)

on

Passively in

included

Passively Benefiting to much change and not saying anything Getting Lying about a child's age in order to get a lower price Not the waitress miscalculates the bill in your favour saying anything when into a new residence, finding is still hooked up, and using it rather that the cable TV/telephone Moving than signing up and paying for it (Initially loaded on Actively Benefiting From Questionable Action and was omitted from the analysis) From Questionable Benefiting Actively a coupon for merchandise you did not buy an expired coupon for merchandise Using Not the price of an old automobile telling the truth when negotiating Lying about your income on a credit application form Using No Harm/No Foul software or games that you did not buy computer Using a compact disc/album instead of buying it Recording merchandise after trying it and not liking it Returning of clothing Spending over an hour trying on different dresses/items of the television Tapping a movie Action

and not buying

any

124 Michael version ethics sumers five of Muncy scale) was and Vitell's used. The to various scale with believe CES items ethical 1

Jay

Polonsky A

et al. factor

(consumer con evaluate

responses likert point

issues using a that indicating

undertaken the analysis was using SPSS Varimax with Kaiser normalisation proce dures to reduce these survey items into a smaller set of underlying that measure variables the same construct is designed This process (SPSS, 1990). to allow researchers to combine such variables, that they ". . . capture the 'essence' of the data" and summarise the meaning of these underlying or composite variables within p. 896). The variables then examined for reliability factors that the items measured were the then Composite variables (Churchill, the factors to further same calculated 1991, were ensure

respondents "Strongly 5 indicating that they a mean Thus wrong". indicates that

it is wrong" and it is not believe "Strongly of less than 2.5 response

feel the practice is respondents amean whereas response of greater unacceptable, than 2.5 indicates that respondents feel the activity as well is acceptable. as in the other This CES type of scale was studies. also

used inMuncy

and Vitell's (1992) original study,

construct. (i.e.

TABLE IV
Factor structure of CES (The rotated Actively from benefiting illeg alactivity in price tags on merchandise Changing a retail store a can of cola in a supermarket Drinking without paying for it a lost item as "stolen" to Reporting
an insurance company in order to

loadings

using

a 0.45

cut-off) Passively benefiting No harm/ No foul

Actively benefiting from questionable

action

0.737999 0.706275

collect Getting

the money to much and not

0.639402 0.766107 0.494624 0.781575 0.665328 0.679587 0.532718 0.555785 disc/album instead 0.647924 after trying trying on of clothing it 0.506638

change saying anything Lying about a child's age in order to get a lower price Not the waitress saying anything when miscalculates the bill in your favour a coupon for merchandise you did Using not buy an expired coupon for merchandise Using Not telling the truth when negotiating the price of an old automobile
computer software or games that

Using

you did not buy a compact Recording of buying it merchandise Returning and not liking it Spending over an hour

different dresses/items and not buying any of the television Tapping a movie about your income on a credit Lying application form 0.573365

0.561895 0.71073

Consumer added responses factor grouping variance whether between Southern and based on

Ethics their

in the European (Churchill,

Union

125

averaged)

An of (i.e. solution). analysis was to compare then used (ANOVA) differed variables these composite the two regions, i.e. Northern and

1991). As can be seen in Table V, the for the total sample of the constructs reliability to be lower and the two sub-groupings appears have of the previous CES studies, which of for the four constructs reported Alpha's et al., than 0.8 greater (for example Rallapalli than con the Alpha's of individual 1994). However, structs have also been found to be lower than 0.8 in some

EU.

Analysis The were factor

and

discussion identified four factors, which the previous with at first of this seemed con (i.e. in an

in

some

outside analysis consistent generally research using the CES. While scale, structs were a detailed identified associated examination that with a

studies, especially For example, the U.S.

those when

undertaken examining

Egypt, Al-Khatib et al. (1995, 1997) andRawwas

et al. (1994) reported Foul that the No Harm/No construct had an Alpha of less than 0.50. Other studies those Benefiting Lebanon have in this also reported Alpha's the lower than study including was construct which Passively less than 0.6 in and Hong Kong et al., 1995). constructs also Northern and

to support the global generalisability of the CES

the four loaded two variables specific

factor) i.e. they were associated inconsistent fashion, than had with different types of ethical behaviour in previous CES research. There been reported was no rationale associa for these inconsistent tions and their of with the inclusion which CES with would As have such "diluted" these and two con enables the focus items were sistency some direct undertaken. The again items were remaining in four and resulted 51% of the variance with also "consistent" Actively factor constructs.

et al., 1994) (Rawwas and Northern Ireland (Rawwas of the four The reliability to EU differ across with the

appears Southern "more" Southern sample. examining consistent

being samples, for the reliable (i.e. higher Alphas) countries EU the Northern than Finding differences in Alphas when is also

the constructs

removed,

ensures works

broader

previous comparisons

these works

to be

explained which were results,

analysed which factors, in the data and CES previous From Illegal

countries/samples multiple et al., with other results (Al-Khatib et al., 1994; Rawwas et al., 1995). 1997; Rawwas in relia for difference One possible explanation bility be that there might consumers within amongst there do not are minor each differences region, although differences appear to be substantial for three of the four constructs. regions reliability results were somewhat instrument that the CES

i.e.

Benefiting

between These

Activity, Passively From Questionable The

reliability to determine using Cornbach's Alpha one into be could indeed added

Actively Benefiting, Benefiting No Harm/No Foul. Action, was of constructs examined, if the items construct

has unanticipated, given studies that have been rigorously tested, including in European i.e. examined CES countries, et Austria (Rawwas, 1996) and Ireland (Rawwas

TABLE V
Reliability test of CES for southern and northern Total EU groupings Southern EU Northern EU

Construct Actively benefiting from illegal activity (3 items) Passively benefiting (3 items)
Actively benefiting from questionable action (4 items)

Alpha 0.4060 0.6783

0.5535

Alpha 0.6170 0.7227

0.5745 0.5258

Alpha 0.3214 0.6390 0.5395

No harm/no foul (5 items)

0.5384

0.5657

126 Michael

Jay Polonsky

et al. in Table VI con from

et al., 1998). Thus, future al., 1995; Rawwas examine the global generalisability research might on this study and Based of CES measurements. studies it is unclear whether the other non-U.S. CES is generalisable. item Composite construct scores were the mean individual. calculated items The score for

In examining the ANOVA results it can be seen that there are statistical between structs either for two regions with dealing "Actively an illegal or questionable the above of

differences

the CES

Benefiting"

as mentioned

each Table four mean

by adding

the relevant

III) and calculating constructs for each

(see for the overall

these perceive no statistical differences non-active

activity, although in both regions respondents are issues to be "wrong". There for the two constructs behaviours (i.e. Passively thus, overall in terms of per

for each construct within each response was mean then calculated. The region regional were an analysis of values using compared of the variance The results (i.e. ANOVA). used four are presented in Table VI and can be to evaluate the sub-hypotheses related to the of the CES. the ANOVA the ordinal across the results ranking it is of per

examining Foul), Benefiting, No Harm/No there is a statistical difference

and

ANOVA

toward active consumer behaviour but ceptions consumer not "passive" behaviour. While there are statistical differences for the two Active constructs is not the direction That of these differences respondents consistent. is, Southern Benefiting From

components Before examining that worth noting ceptions as wrong

relating is consistent

to a construct

being perceived two groupings. (i.e. wrong)

that Actively perceived is statistically less appropriate than Illegal Activity their Northern Northern whereas counterparts, respondents Questionable than their both cases perceived Activity Southern these that Actively is statistically Benefiting From less appropriate

That is Actively Benefiting From Illegal Activity is

perceived to be most inappropriate

by both groups, followed by Actively Benefiting

From Questionable lastly No Harm/No and Activity, Passively Benefiting, Foul. This suggests that active on the part of con less appropriate than behaviour. questionable sense, other studies of the It is also rankings

in However, counterparts. statistical differences reflect in absolute terms (i.e.

behaviour "questionable" sumers to be is perceived passive While (i.e. non-active) this makes intuitive different

respectively). dif there are some statistical such, while in ferences between the two regions, respondents issues in similar ways. both broadly perceived is somewhat with the This finding inconsistent As previous Northern, be more able" does The not as Wood that suggested would industrialised regions, highly a range of "question likely to perceive literature activities in this that Northern with with "illegal" more study. respondents activities less more and than were negatively, which occur

relatively minor 0.07 and 0.08

differences

have found constructs worth Actively noting

(Al-Khatib that the two were

ordinal et al., both

1997). constructs

benefiting

to relating to be perceived

ethical fact

"inappropriate" than 2.5, which CES studies (for example

as they had a mean value of less is consistent with other non-U.S. Al-Khatib et al., 1995,

concerned concerned

1997).

"questionable"

activities

TABLE VI
Examination of the difference in CES components Southern Mean Construct Actively Passively Actively benefiting benefiting benefiting from questionable action No harm/no from illegal activity between EU (Std) southern EU (Std) F-Value Significance and northern EU

Northern Mean

0.002 1.84 1.91 9.65 2.29 2.932.91 0.131 15.59 0.000 2.09 2.01 4.02 foul 1.13 0.288 4.08

Consumer their Southern

Ethics

in the European fact While on are not have cultural taken. A suitable in fact of that

Union

127

the reflect counterparts, might context of the fact that the (i.e. specific situation) role in the activity may play a more important evaluation of the situation. countries evaluation If one have assumes that "less developed" then the ethical tion would know a higher context, situa of the specific

CES were

the reliability of the four factors of the have been expected. lower than might the U.S.A. the CES has been used outside that these into the items cross as one would to be under to the students sample are a

several

it might be occasions, as globally generalisable and more research hoped validity second of the scale needs relates that limitation for consumer

on the specific circumstances, depend "harmed" the individuals such as whether being the individual activities inappropriate questionable and could require of the parties involved because a more of evaluation contextual (i.e. situational) consumer are ethical situations. more are retailers also most For substantially which countries, example in Southern likely firms EU there EU to be (Dawson, be may 1997). Some

used. While sample

it is deemed a narrow

studies,

they may

represent the population. that students tend and between as

segment demographic In fact, it is often suggested across to be more similar there might be more and/or

countries variation from Future

such different

sub-samples attempt across

smaller (See Table VII). Thus,

consumers associate harming sumers may perceive faceless corporations.

Southern EU
with con

the wider

may harming Northern individuals. Whereas harming If this with occurrence firms is the of

population. research could

to have more each region, of overall

as harming case, devel could assist intentional

representative in terms both

sub-samples of ages and

in terms

oping relationships in minimising the

harm.

individuals

(i.e. a stratified population issue is that the respondents were regional sub-samples location in each

sample). A related within each of the collected at one

and while students do country differences within travel, any regional frequently countries may have been underestimated. Not all and future research Northern future EU from countries were included to and thus sub and which researchers try might all existing member members proposed the Southern include countries as well,

Limitations As with tions

of limita any study there are a number to be highlighted. is the that need Firstly,

samples

from possibly would also broaden future research

TABLE VII
Retail outlets per 1000 inhabitants

Country

Retailers REGION/ (outlets) per thousand inhabitants

sample. Finally, of consider the impact might between the other factors such as the relationship consumer to identify whether and the firm, this ethical behaviour. impacts on consumers'

SOUTH
Greece0 12.3

Conclusions The which main differences EU consumers between relates Northern and

Italyd 25.3 12.5 Portugal0 11.2 Spaina

Southern

NORTH
Denmarkd 7.8 6.5 5.4 on Retailing 5.0 Germanyd The Netherlandsd Scotland (UK.)b

they perceive actively and questionable activities. Any differences illegal in consumers' "unethical" proactive undertaking would have substantial as they would

to the way in from benefiting

behaviour

organisations, differential monitoring preclude the two ferences these

for implications to establish need

Figures based on Corporate Intelligence 1988,a 1992,b 1994,c 1995.d figures

to systems and procedures activities in proactive occurring the small dif regions. However, given in terms of consumers' this might views,

128 Michael mechanisms suggest that differing monitoring not in Northern needed and Southern even Therefore, though to be "less" countries appear developed, not exhibit the ethical characteristics countries. oping (Priem countries et al., as

Jay Polonsky are EU Almeida uting Stanton versions

et al. for assisting and collecting who of us with the distrib as John earlier

translating, survey, as well feedback to

Southern they do of devel

provided the paper.

in the literature suggested van Luijk, 1998; 1997; Wood, in consumers are sufficient

Notes 1 2 This
made

1995).
While attitudes there are some differences it is unclear if these

occurs
to

even
items.

after cultural

adjustments

have

been

to warrant broad based segmentation in enough or either on the part of business action, legisla tors trying to regulate ethical It behaviours. a union appears that the EU is broadly at least in terms of the of consumers markets, context as well as a union of this study, of therefore economic within markets. there Europe consumer would views, which are view that consumer (1983) suggest might is some "standardization" support This that of

does not mean that less developed Southern have not developed business ethics or that Business ethics is a 20th century "discovery", for some "not so developed" Southern EU countries had well concepts of business ethics for extensive developed This countries
periods.

The

Italian university

was

based

in south

central

Italy.

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University