Much has been written in the ethical literature regarding the ethics of managers’ decisions and the development of corporate moral approaches (Reidenbach & Robin 1991; Fritzsche 1988). Research in this area has expanded from exploratory and descriptive studies to improvement of measurement with the development of a comprehensive scale for evaluation of business ethics (Cohen et al. 1993, Reidenbach & Robin 1988, 1990, 1993). The empirical research has confronted managers with ethical dilemmas (Barnett & Karson 1989, Harris 1990, Henthorne et al. 1992) and studied their responses in accordance with different ethical philosophies (Fritzsche & Becker 1984, Forsyth 1992). Most of the research has concentrated on the ethical behavior of managers with respect to business decisions or in relation to various stakeholders outside the organization (e.g., customers, suppliers). While managing people ethically should be a desired goal for human resource (HR) practices in organizations, attention to this area of research, empirically and descriptively, has not been ample (Buono & Bowditch 1990, Nyaw & Ng 1994, Wiley 1998, Foote 2001), even from the perspective of the ethical role and obligations of HR professionals (Payne & Wayland 1999). Furthermore, the study of employees’ moral perceptions is relatively scarce and is usually limited either to evaluations of their own moral behavior, or to the evaluation of HR practices from a narrow ethical perspective that concentrates primarily on justice indicators alone (Barrett 1999, Winstanley & Woodall 2000). Only recently have researchers in the area of human resource management (HRM) begun looking at the issue of ethical questions in HRM. However, they have limited their investigations to normative evaluations of different practices (e.g., Cavanagh et al. 1981, Buono & Bowditch 1990, Clayson & Doyle 1996, Trevino & Weaver 1998), to studying managers’ perceptions of these practices (Wiley 1998), or to studying the extent to which HRM is or can be ethical (Legge 1998), leaving questions and issues unanswered (Winstanley & Woodall 2000). When employees’ perceptions are involved, their evaluation of management HR practices is tested mainly according to principles of justice (Winstanley & Woodall 2000). Examples of such discussions include issues such as selection practices (Arvey & Renz 1992, Singer 1993, Polyhart & Ryan 1997, Elkins & Phillips 2000), performance appraisal (Bartol et al. 2001, Huffman & Cain 2001, Leung et al. 2001), downsizing (Martin et al. 1995, Armstrong-Stassen 1998, Watson et al. 1999, Wiesenfeld et al. 2000) and Respectively, at Netanya Academic College and Academic College of Judea and Samaria in Ariel, Israel. Both authors contributed equally to the paper.
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