The ethical behavior prevalent in an organization often determines business success or failure. Much research in the business context has scrutinized ethical behavior, but there are still few insights into its roots; this study furthers this line of inquiry. In line with identity work theory, we examine how employees’ identification with a family business shapes internal ethical decision-making processes. Because it is individuals who engage in decision-making—be it ethical or not—our research perspective centers on the individual level. We followed an (...) inductive, qualitative approach and conducted interviews with 19 employees in seven family businesses. We found that individuals engage in identity work when they identify as individual family firm employees and when they identify with the perceived characteristics of the family firm. These processes of identification, in turn, influence how employees cope with ethical situations. Our findings contribute to ethics and family business research, as well as to identity theory. (shrink)

The study of ethical behavior in the field of leadership began in the 1990s when Murphy et al. (1992) responded to a call by Randall and Gibson (1990) to develop more rigorous methodologies in empi...

This paper presents a case study of the South African operation of a logistics company, operating in a context of short-termism and under-performance. Frustration with managing in this context, and concern that this environment might erode the customer value proposition, prompted an exploration of the question: “How can the business prioritise its investment in intangibles to support sustainable growth in an environment of short-termism and sub-par business performance?” The study followed an inductive grounded theory approach and began with an exploration (...) of the system of short-termism as it was being experienced by the management team. This evolved in an iterative process to include an exploration of the customer value proposition, the organisation’s capabilities and the system of investment in intangibles. Data were collected over a period of 6 months, across a series of four stages as the management team grappled with the short-term financial objectives imposed on them. The data categories were used to develop 214 propositions across all stages. Through the four stages, four artefacts were developed from the propositions a causal loop diagram of the system of short-termism; a documented value proposition; an assessment of the health of the business’ capitals; and a multi-year intangibles investment programme. The findings indicate that a focus on investment in intangible assets can play a vital role in stimulating sustainable value creation in an environment of historically poor returns on investment and pressure for short-term financial results. It is suggested that investment in intangibles can be introduced as a multi-year capabilities investment plan. The study succeeded in getting investment in intangibles approved and the implication is that long-term decision-making can co-exist in an environment of short-termism and low growth. (shrink)

Ethical conflicts arise when there is no unity between the team members and shared ethical priorities. This study aimed to identify the relationship between ethical value unity, team knowledge hiding, the relationship between the lack of shared ethical priorities and the team knowledge hiding. Workplace friendship was taken as a moderating variable to check its regulating role between the ethical conflicts and the team knowledge hiding. Data of this study were collected from the staff working in different colleges and universities. (...) There are a total of 480 responses collected through convenience sampling technique and analyzed under a five-point Likert scale. The partial least squares-structural equation modeling technique is used in this study. The key reason was that this approach has the fewest requirements for data normality and is a better tool for evaluating exploratory connections empirically. The output of the measurement model assessment confirms that all measurement scales are reliable. The result indicates that there was a significant and positive relationship between ethical value congruence and knowledge hiding. It was also established that there was a relationship between lack of shared ethical priorities and knowledge hiding. Workplace friendship moderated the relationship between ethical conflicts and team knowledge hiding. This study extends the literature on ethical conflict and knowledge hiding behavior. This study highlights that one of the main reasons for knowledge hiding behavior at the team level in the organization is which helps the business practicians for a design of an effective strategy to mitigate the knowledge hiding behavior in the organization. (shrink)

Prior research in behavioral ethics suggests that supervisors may influence employees’ ethical decision-making. However, the extent to which supervisors shape the recurrence of employees’ unethical behaviors remains underexplored. By integrating cognitive dissonance theory with social information processing theory, we provide new insights into how supervisors influence employees’ responses to their past ethical violations. We hypothesize that when supervisors exhibit a high level of perspective taking, employees are less likely to perceive organizational intolerance of unethical behaviors and, in turn, are more (...) likely to repeat these behaviors in the future. To test our hypotheses, we conducted a field investigation using objective data from organizational records and survey responses collected from 276 sales professionals and 108 supervisors in a large firm over a nine-month period. Our results support our predictions. We discuss theoretical and practical implications, limitations, as well as future directions. (shrink)