Determinants of ethical behavior: A study of autosalespeople

This study proposes a model that explains the ethical behavior of automobil e salespeople in terms of their ethical perception, legal perception, metho d of compensation (commission-based or salary- based), age, and education. The model is estimated by using five scenarios that involve ethical issues commonly found in the automobile industry and responses from 184 automobile salespeople in a mid-Atlantic metropolitan area. The findings suggest that ethical perception is the most important determinant of ethical behavior. Also, method of compensation is a major determinant in four of five scenari os, and legal perception in two out of five scenarios. However, age and edu cation are not significantly related to ethical behavior. A discussion of t he results, limitations, and implications is presented for managers.