The third and final level is called the principled level in which individuals make a clear effort to define moral principles apart from the authority of the groups to which they belong or society in general. Research on the stages of moral development shows that people proceed through the six stages in an orderly fashion. Also, there is no guarantee of continued development. The majority of adults are at Stage 4. The higher the stage a manager reaches, the more likely he or she will behave ethically.
Individual characteristics are another factor that influence ethical behavior.
Our values are our basic convictions about what is right and wrong. Our ego strength is a personality characteristic that measures the strength of a person's convictions. Finally, locus of control refers to a personality attribute that measures the degree to which people believe they are masters of their own fate. The third factor that influences managerial ethics is structural variables. The existence of formal rules and regulations, job descriptions, written codes of ethics, performance appraisal systems, and reward systems can strongly influence ethical behavior.