This paper investigates qualitatively the significance of different dimensions of ethical organisation culture for the exercise of middle managers’ moral agency in ethical problems. The research draws on the social cognitive theory of morality and on the corporate ethical virtues model. This study broadens understanding of the factors which enable or constrain managers’ potential for moral agency in organisations, and shows that an insufficient ethical organisational culture may contribute to indifference towards ethical issues, the experiencing of moral conflicts, lack of (...) self-efficacy and morally disengaged reasoning. In contrast, a healthy ethical culture can contribute to motivation to tackle ethical problems, an increased capacity for self-regulation and ultimately ethical behaviour. (shrink)

In this article, we examine the relationship between ethical organisational culture and organisational innovativeness. A quantitative empirical analysis is based on a survey of a total of 719 respondents from all levels of three Finnish organisations, both general staff and managers. The organisations belong to both the private and public sectors. The results of this study show that organisations’ ethical culture is associated with their organisational innovativeness, and that different dimensions of ethical culture are associated with different dimensions of organisational (...) innovativeness. The ethical culture of the organisation had a specific role in process and behavioural innovativeness. It was found that congruency of management was the single dimension with the highest effect on organisational innovativeness overall and specifically on process and behavioural innovativeness. These findings suggest that when organisations are aiming for specific outcomes, such as organisational innovativeness, they need to be aware of what dimensions of ethical culture are particularly relevant. (shrink)

A key issue in the business ethics field is the design of effective measures for assessing the ethical culture of organizations. The Corporate Ethical Virtues Model (CEV), developed by Kaptein in 2008, is an instrument for measuring ethical culture, and has been applied, adapted and validated in different contexts. In 2013, DeBode, Armenakis, Field and Walker developed the CEV–S, a shortened version of the original scale. Both the CEV and CEV–S assess eight dimensions based on corporate ethical virtues: clarity, congruency (...) of supervisors, congruency of senior management, feasibility, supportability, transparency, discussability and sanctionability. The objective of this study is to present a Spanish version of the CEV–S and its validation process. The scale was applied to two samples of 114 and 193 Colombian employees from two companies operating in the services sector. The confirmatory factor analyses revealed a good fit for the eight-factor structure of the Spanish CEV–S and the statistical tests applied showed good levels of reliability and validity for this scale. The adequate psychometric properties shown by the Spanish CEV–S may support its use in future research to measure organizational ethical culture in Spanish-speaking settings. (shrink)

Ethics are of interest to business scholars because they influence decisions, behaviors, and outcomes. While scholars have increasingly shown interest in business ethics as a research topic, there are a mounting number of studies that examine ethical issues at the organizational level of analysis. This manuscript reports the results of a systematic review of empirical research on organizational ethics published in a broad sample of business journals over a 33-year period. A total of 184 articles are analyzed to reveal gaps (...) in the literature and, subsequently, lead to suggestions for future research; this is done in an effort to stimulate and perpetuate high quality research that more broadly impacts business scholars and practitioners. (shrink)

The aim of this longitudinal study was to investigate the temporal dynamics of ethical organisational culture and how it associates with well-being at work when potential changes in ethical culture are measured over an extended period of 6 years. We used a person-centred study design, which allowed us to detect both typical and atypical patterns of ethical culture stability as well as change among a sample of leaders. Based on latent profile analysis and hierarchical linear modelling we found longitudinal, concurrent (...) relations and cumulative gain and loss cycles between different ethical culture patterns and leaders’ well-being. Leaders in the strongest ethical culture pattern experienced the highest level of work engagement and a decreasing level of ethical dilemmas and stress. Leaders who gave the lowest ratings on ethical culture which also decreased over time reported the highest level of ethical dilemmas, stress, and burnout. They also showed a continuous increase in these negative outcomes over time. Thus, ethical culture has significant cumulative effects on well-being, and these longitudinal effects can be both negative and positive, depending on the experienced strength of the culture’s ethicality. (shrink)

Studies on the ethical culture of organizations have mainly focused on ethical culture at the organizational level. This study explores ethical culture at the team level because this can add a more detailed understanding of the ethics of an organization, which is necessary for more customized and effective management interventions. To find out whether various teams within an organization can have different ethical cultures, we employ the differentiation perspective and conduct a survey of 180 teams from one organization. The results (...) show that there are significant differences between the ethical cultures of teams. These differences are relevant given the different relationships that were established between high and low clusters of team ethical culture and two outcome variables. The results also show that the dimensions of ethical cultures among teams have different patterns, which indicates the usefulness of using a multidimensional scale for capturing further differences among team ethical cultures. (shrink)

Aristotle's doctrine of the mean states that a virtue is the mean state between two vices: a deficient and an excessive one. The Corporate Ethical Virtues Model defines the mean and the corresponding deficient vice for each of its seven virtues. This paper defines for each of these virtues the corresponding excessive vice and explores why organizations characterized by these excessive vices increase the likelihood that their employees will behave unethically. The excessive vices are patronization, pompousness, lavishness, zealotry, overexposure, talkativeness, (...) and oppressiveness. (shrink)

The main aim of the present study was to examine whether an ethical organizational culture is associated with sickness absence in a Finnish public sector organization at both the individual and work unit levels. The underlying assumption was that employees working for organizations that are characterized by a strong ethical organizational culture report less sickness absence. The sample consisted of 2192 employees from one public sector city organization that included 246 different work units. Ethical organizational culture was measured with the (...) Corporate Ethical Virtues scale covering eight sub-dimensions. Sickness absence was inquired by asking the participants to report how many days they had been absent from work because of their own sickness over the past year. Multilevel structural equation modelling showed that, at the individual level, perceptions of a strong ethical organizational culture were associated with less sickness absences after controlling for the background factors. This link was not found at the work-unit level. The findings indicate that an ethical organizational culture plays a significant role in enhancing employee well-being measured as sickness absence. It seems that especially supervisor’s ethical role modeling and possibilities to discuss about ethical issues are important factors in preventing sickness absence in the organizations. (shrink)

This study investigated the factorial validity of the 58-item Corporate Ethical Virtues scale :923–947, 2008). The major aim was to test the invariance of the factor structure across different organizational samples. The CEV scale was designed to measure eight corporate virtues: clarity, congruency of supervisors, congruency of senior management, feasibility, supportability, transparency, discussability, and sanctionability. The data consisted of four organizational samples that are operated in the private and public sector. The results of confirmatory factor analyses supported the hypothesized eight-factor (...) structure, as well as its alternative second-order factor structure, where high correlations between the first-order factors were explained by a general CEV factor. These factor structures remained the same across samples, lending strong support for the group invariance assumption of the scale. Thus, the 58-item CEV scale was found to be a valid tool for measuring the aspect of ethical organizational culture in different organizations, and its use can be recommended for future research. (shrink)

Moral distress (MD), the suffering experienced by professionals due to their restricted moral agency, has become a popular subject of study in the fields of social work and health care. Many of the existing measures of MD are targeted at certain professionals, such as health care workers, and are thus restricted to such contexts. This has challenged the conceptual development and empirical examination of MD as a phenomenon occurring across diverse professional groups in different work settings. This study introduces a (...) general measure of MD, the Moral Distress Instrument (MDI). It is not bound to specific professional contexts, and it aims to enable comparative and cross-disciplinary analyses of MD. The MDI consists of seven items that capture different forms of constrained moral agency and follow-up items measuring the level of distress related to these experiences. The reliability and validity of the MDI is investigated, and its distinctiveness from and associations with burnout are studied among a sample of Finnish social workers (n = 367). The MDI was shown to be a reliable and valid measure among the sample. The measures of MD and burnout were shown to tap separate constructs, although these experiences were strongly associated with each other. (shrink)

This study participates in the discussion of the ethical culture of organizations by deepening the knowledge and understanding of the meaning of organizational ethical virtues in organizational innovativeness. The aim in this study was to explore how an organization’s ethical culture and, more specifically, organization’s ethical virtues support organizational innovativeness. The ethical culture of an organization is defined as the virtuousness of an organization. Organizational innovativeness is conceptualized as an organization’s behavioral propensity to produce innovative products and services. The empirical (...) data consisted of a total of 39 interviews from specialist organizations. Qualitative content analysis was used to analyze the data. The findings indicate that the organizational ethical virtues of feasibility, discussability, supportability, and congruency of management are those that support organizational innovativeness. The findings also show which specific elements of these virtues and related organizational practices are important to innovativeness. In addition, this study showed that the features of organizational innovativeness are not necessarily dichotomous but rather follow the ideas of virtues and are versatile in nature. (shrink)

In this research, we argue that managers have various strategies for handling complex ethical problems and that these strategies are formed according to the logic of appropriateness. First, we will show through a qualitative empirical study the different strategies that are used for handling ethical problems. Five types of strategies are identified in this study: mediating, principled, isolation, teaching and bystanding. Secondly, we will investigate the types of ethical approaches which managers reveal when handling ethical problems. Thirdly, we will discuss (...) which strategies seem to contribute to the overall ethicality of organisations. To conclude, we suggest that the decisions and actions of managers like the middle managers in this study are influenced by their interpretation of what is appropriate behaviour in the particular situation. (shrink)

So far, the field of business ethics lacks validated measures for assessing virtues at the organizational level. The aim of this study is to investigate the measurement invariance of a shortened Corporate Ethical Virtues scale. In this manner, we contribute to validating an instrument that is both psychometrically sound and efficient to use. We conducted two survey studies of two independent groups (managers and school psychologists). Confirmatory factor analysis supported the eight‐factor model of the scale, and we found it to (...) be invariant in two different occupational groups. The managers gave higher appraisals of ethical culture than the psychologists did in seven out of the eight dimensions. We found that despite the contextual differences, the shortened scale measures the eight dimensions of organizational ethical virtues, as intended. Thus, the use of this more compact scale can be recommended for future studies, which will hopefully stimulate more research on ethical culture in various work contexts. (shrink)

The aims of this study were to investigate what kinds of personal work goals managers have and whether ethical organisational culture is related to these goals. The sample consisted of 811 Finnish managers from different organisations, in middle and upper management levels, aged 25–68 years. Eight work-related goal content categories were found based on the managers self-reported goals: (1) organisational goals (35.4 %), (2) competence goals (26.1 %), (3) well-being goals (12.1 %), (4) career-ending goals (7.3 %), (5) progression goals (...) (6.8 %), (6) prestige/influence goals (4.2 %), (7) job change goals (4.2 %) and (8) employment contract goals (3.9 %). Ethical organisational culture operated as a context for personal goal setting: Those managers who evaluated their organisational culture as more ethical were more likely to report organisational goals (e.g. goals toward the success or performance of the organisation). However, if managers gave lower ratings regarding ethical culture, then they named job change and career-ending goals in more cases. Therefore, investing into ethical virtues of the organisational culture can promote managers’ personal work goals, which also benefit the organisation. (shrink)

Business Ethics: A European Review, EarlyView.

Examination of the application of virtue ethics to business has only recently started to grapple with the measurement of virtue frameworks in a practical context. This paper furthers this agenda by measuring the impact of virtue at the level of the organisation and examining the extent to which organisational virtue impacts on moral attentiveness and the perceived role of ethics and social responsibility in creating organisational effectiveness. It is argued that people who operate in more virtuous organisational contexts will be (...) expected to be more attentive to ethical issues and in turn perceive a greater role for ethics and social responsibility in business. Analysis of results based on a sample of 137 HR professionals shows that where people report that their organisation provides meaningful work, they are more likely to display reflective MA and the belief that ethics and social responsibility are compatible with business objectives, suggesting that organisations who are interested in promoting an ethical culture should focus on their work structures and practices. More generally, OV is shown to have a more complex relationship with PRESOR than hypothesised pointing towards a more nuanced view of OV. The paper examines the implications of the results for organisations and research. (shrink)

Moral injury has primarily been studied from a clinical perspective to assess, diagnose and treat the outcomes of morally injurious experiences in healthcare and military settings. Little is known about the lived experiences of those who have had their moral values transgressed in business settings. Public scandals such as Enron suggest that moral injury may also occur in for-profit business settings. In this qualitative study, we examine the lived experiences of 16 employees in for-profit business organisations who identified as having (...) suffered moral injury. Using semi-structured narrative interviews, our findings offer insights into the values that employees feel are transgressed and the pathways between morally injurious experiences and the long-term outcomes. Based on our findings, we propose a conceptual pathway to moral injury, which suggests that experiencing moral transgressions has a profound impact on employees as they feel a threat to their “good-me” identity, however, employees employ various coping strategies to minimise the impact during the event. Employees exited the organisation and often changed career paths to protect themselves from further injury and to make up for moral failure. This study advances our understanding of the experience of moral injury in business settings and the pathway explaining how and why people react differently to moral transgressions. (shrink)

The aim of the present longitudinal study was to quantitatively examine whether an ethical organizational culture predicts turnover among managers. To complement the quantitative results, a further important aim was to examine the self-reported reasons behind manager turnover, and the associations of ethical organizational culture with these reasons. The participants were Finnish managers working in technical and commercial fields. Logistic regression analyses indicated that, of the eight virtues investigated, congruency of supervisors, congruency of senior management, discussability, and sanctionability were negatively (...) related to manager turnover. The results also revealed that the turnover group is not homogeneous, and that there are several different reasons for leaving. The reasons given for turnover were grouped into five different categories: lay-off, career challenges, dissatisfaction with the job or organization, organizational change, and decreased well-being/motivation. ANCOVA analyses showed that those managers who stayed in their organization perceived their ethical culture to be stronger than those in turnover groups, and especially compared to groups 3 and 5. The results acquired through different methods complemented and confirmed each other, showing that by nurturing ethical virtues an organization can decrease job changes and encourage managers and supervisors to want to remain in their organization. (shrink)