What is the impact of mission on ethical business culture? This question was analyzed through a qualitative case study of a large nonprofit organization in the human services industry with a solid history of ethical business practices and consistent use of a values-based decision-making model. This research explored ethical decision making, ethical business culture, and congruence between enacted and espoused institutional values. Institutional values were identified, and the following pair of research questions was examined: To what extent were incongruent values (...) found between espoused and enacted values? To what extent did incongruent values impact the ethical business culture? Incongruent enacted values were present in the culture, but negative impact was diminished by a larger number of congruent enacted values. Additional findings revealed that an intense commitment to the mission by all employees was the common thread that wound throughout the organization’s ethical business culture and essentially abrogated the undesirable effects of incongruent and negative values. (shrink)

An individual’s accountability to oneself leads to self-regulatory behaviour. A field experiment afforded an opportunity to test this relation, given that external accountability conditions were absent. A single group pre-test/post-test design was used to test the hypothesis. A group of full-time resident management students, n ≈ 550, take four meals during the day in the institute mess. As a part of the experiment, food wastage in the form of leftovers on the plates of subjects was measured. As a pre-test, the (...) measurement occurred at two levels. Subjects could see how much they are adding to the total waste by looking at a weighing scale placed under a waste basket, and they could also see the total waste data for each of the four meals for the day and a day earlier displayed at a prominent place. After 105 days, the weighing scale under the basket was removed, and as a post-test measurement, the total waste data for the four meals were noted down for another 72 days. A manipulation test indicated that the experiment has had the desired effect of invoking self-accountability in subjects during the pre-test phase, and diluting it during the post-test phase. Time series analysis of pre-test and post-test data indicated that the wastage data decreased in the pre-test phase. However, the post-test waste data showed an increase over a period of time. The results indicate that accountability conditions like social norms invoke self-accountability cognition leading to self-regulatory behaviours in individuals. (shrink)

Ethical decision-making descriptive theoretical models often conflict with each other and typically lack comprehensiveness. To address this deficiency, a revised EDM model is proposed that consolidates and attempts to bridge together the varying and sometimes directly conflicting propositions and perspectives that have been advanced. To do so, the paper is organized as follows. First, a review of the various theoretical models of EDM is provided. These models can generally be divided into rationalist-based ; and non-rationalist-based. Second, the proposed model, called (...) ‘Integrated Ethical Decision Making,’ is introduced in order to fill the gaps and bridge the current divide in EDM theory. The individual and situational factors as well as the process of the proposed model are then described. Third, the academic and managerial implications of the proposed model are discussed. Finally, the limitations of the proposed model are presented. (shrink)

This study examines a proposed model whereby ethical leadership positively influences the level of meaning followers experience in their work, which in turn positively impacts followers’ levels of work engagement and organizational identification, as well as reduces their levels of workplace envy. We further hypothesized that cognitive reappraisal strategies for emotional regulation would moderate the ethical leadership–meaningful work relationship. The model was tested in a stratified random field sample of 440 employees and their direct supervisors in the aviation industry in (...) Turkey. Results based on data collected at two points in time showed that ethical leadership has a significant and positive direct effect on engagement and organizational identification, as well as indirect effects on those two outcomes through meaningfulness. Finally, results show that ethical leadership has a significant negative direct effect on workplace envy. Further, results showed that cognitive reappraisal emotion regulation strategy positively moderates, i.e., strengthens, the relationship between ethical leadership and meaningful work. (shrink)

Despite the importance of ethical leadership, the impacts of its different facets on firm-level performance are unclear. Drawing on the resource-based view of the firm and the group engagement model, we propose that ethical leadership consisting of leader humane orientation, leader responsibility and sustainability orientation and leader moderation orientation are beneficial to firm performance, and leader justice orientation plays moderating roles. We empirically tested this theoretical framework employing multi-source survey data collected from 264 Chinese firms. The findings reveal that both (...) leader humane orientation and leader responsibility and sustainability orientation have positive influences on both firm financial and social performance, while leader moderation orientation only has positive influence on firm financial performance. In addition, leader justice orientation positively moderates the relationship between leader humane orientation and leader responsibility and sustainability orientation and financial performance as well as the relationship between leader moderation orientation and social performance. These findings provide theoretical and practical implications for understanding how different facets of ethical leadership jointly function to influence firm performance. (shrink)

The ethics of organizations has received much attention in recent years. This raises the question of whether the ethics of organizations has also improved. In 1999, 2004, and 2008, a survey was conducted of 12,196 U.S. managers and employees. The results show that the ethical culture of organizations improved in the period between 1999 and 2004. Between 2004 and 2008 unethical behavior and its consequences declined and the scope of ethics programs expanded while ethical culture showed no significant improvement during (...) the same period. The article concludes with a discussion of the implications of these findings for future research and practice. (shrink)

Leadership which lacks ethical conduct can be dangerous, destructive, and even toxic. Ethical leadership, though well discussed in the literature, has been tested empirically as a construct in very few studies. An empirical investigation of ethical leadership in Singapore's construction industry is reported. It is found that ethical leadership is positively and significantly associated with transformational leadership, transformational culture of organization, contingent reward dimension of transactional leadership, leader effectiveness, employee willingness to put in extra effort, and employee satisfaction with the (...) leader. However, it is also found that ethical leadership bears no correlations with transactional leadership. Also, it is negatively correlated with laissez-faire leadership and transactional culture of the organization. The findings also reveal that ethical leadership plays a mediating role in the relationship between employee outcomes and organizational culture. Practical implications of these findings are discussed. Directions for future research are also suggested. (shrink)

Corporate ethical values (CEVs) can be viewed outside the realm of organizational training, standard operating procedures, reward and punishment systems, formal statements, and as more representative of the real nature of the organization (Organ, 1988). Past researchers have empirically demonstrated the direct influence of CEVs on job performance. This study argues that employees' perception of organizational fairness will create perceptual distortion of CEVs. The results of the study indicate that perceived fairness moderates the influence of CEVs on two seminal outcomes, (...) namely, job performance and commitment. The study offers prescriptive and descriptive insights to both academe and industry to understand the influence of CEVs and fairness on the performance outcomes of employees. (shrink)

Companies offer ethics codes and training to increase employees' ethical conduct. These programs can also enhance individual work attitudes because ethical organizations are typically valued. Socially responsible companies are likely viewed as ethical organizations and should therefore prompt similar employee job responses. Using survey information collected from 313 business professionals, this exploratory study proposed that perceived corporate social responsibility would mediate the positive relationships between ethics codes/training and job satisfaction. Results indicated that corporate social responsibility fully or partially mediated the (...) positive associations between four ethics program variables and individual job satisfaction, suggesting that companies might better manage employees' ethical perceptions and work attitudes with multiple policies, an approach endorsed in the ethics literature. (shrink)

Moral imagination is a process that involves a thorough consideration of the ethical elements of a decision. We sought to explore what might distinguish moral imagination from other ethical approaches within a complex business simulation. Using a three-component model of moral imagination, we sought to discover whether organization cultures with a salient ethics theme activate moral imagination. Finding an effect, we sought an answer to whether some individuals were more prone to being influenced in this way by ethical cultures. We (...) found that employees with strong moral identities are less influenced by such cultures than employees whose sense of self is not defined in moral terms. (shrink)

This paper draws from the fields of history, sociology, psychology, moral philosophy, and organizational theory to establish a theoretical connection between a social/organizational influence (ethical work climate) and an individual cognitive element of moral behavior (moral awareness). The research was designed to help to fill a gap in the existing literature by providing empirical evidence of the connection between organizational influences and individual moral awareness and subsequent ethical choices, which has heretofore largely been merely assumed. Results of the study provide (...) evidence that ethical work climate (EWC) is a primary predictor of individual moral awareness, and that the influence of social factors often overrides the effects of individual differences in a work group setting. Implications for future research are provided. (shrink)

This paper develops a typology of moral problems in business. The cross-classification of two fundamental dimensions of ethical conduct: judgment and motivation, is employed to distinguish four types of moral problems: genuine dilemmas, compliance problems, moral laxity, and no-problem problems. Actual cases are brought to illustrate each type of problem, and corresponding coping strategies are presented. The paper highlights the need to design a dynamic strategy that will take into account the relationships among different types of ethical problems. In its (...) capacities as both an analytical tool for identifying and clarifying an ethical problem and a strategic tool for handling it, the typology has direct implications for developing ethical awareness, assigning accountability, and unfolding typical rationalizations in business activity. (shrink)

We understand responsible leadership as a social-relational and ethical phenomenon, which occurs in social processes of interaction. While the prevailing leadership literature has for the most part focussed on the relationship between leaders and followers in the organization and defined followers as subordinates, we show in this article that leadership takes place in interaction with a multitude of followers as stakeholders inside and outside the corporation. Using an ethical lens, we discuss leadership responsibilities in a stakeholder society, thereby following Bass (...) and Steidelmeier’s suggestion to discuss “leadership in the context of contemporary stakeholder theory” (1999: 200). Moreover, from a relational and stakeholder perspective we approach the questions: What is responsible leadership? What makes a responsible leader? What qualities are needed? Finally, we propose a so-called “roles model” of responsible leadership, which gives a gestalt to a responsible leader and describes the different roles he or she takes in leading stakeholders and business in society. (shrink)

This review summarizes and critiques the empirical ethical decision-making literature from 1996–2003. One hundred and seventy-four articles were published in top business journals during this period. Tables are included that summarize the findings by dependent variable – awareness, judgment, intent, and behavior. We compare this review with past reviews in order to draw conclusions regarding trends in the ethical decision-making literature and to surface directions for future research.

This article argues that while ethical leadership in mainstream theorising is assumed to be a cognitive exercise, leaders’ bodies in fact play a significant role in the social construction of ethical leadership. Their bodies become particularly potent when leaders are depicted via the interplay between visual and verbal modes in the media. In order to extend current understandings of ethical leadership, this study employs a discourse analytic approach to examine how visual and verbal devices convey ethical leadership for two of (...) Australia’s major bank chief executive officers—John Stewart and Ralph Norris—before and during the global financial crisis. Based on the analysis, this article demonstrates that ethical leadership is constructed through the confluence of elite and working class masculinities that is multimodally embodied and disembodied. The article suggests that what it means to be an ethical leader is invariably informed by class-based patriarchal norms that can serve to reinforce the masculinisation of ethics. (shrink)

This study investigates the association of a broad set of variables with the ethical decision making of management accountants in Libya. Adopting a cross-sectional methodology, a questionnaire including four different ethical scenarios was used to gather data from 229 participants. For each scenario, ethical decision making was examined in terms of the recognition, judgment and intention stages of Rest’s model. A significant relationship was found between ethical recognition and ethical judgment and also between ethical judgment and ethical intention, but ethical (...) recognition did not significantly predict ethical intention—thus providing support for Rest’s model. Organizational variables, age and educational level yielded few significant results. The lack of significance for codes of ethics might reflect their relative lack of development in Libya, in which case Libyan companies should pay attention to their content and how they are supported, especially in the light of the under-development of the accounting profession in Libya. Few significant results were also found for gender, but where they were found, males showed more ethical characteristics than females. This unusual result reinforces the dangers of gender stereotyping in business. Personal moral philosophy and moral intensity dimensions were generally found to be significant predictors of the three stages of ethical decision making studied. One implication of this is to give more attention to ethics in accounting education, making the connections between accounting practice and Islam. Overall, this study not only adds to the available empirical evidence on factors affecting ethical decision making, notably examining three stages of Rest’s model, but also offers rare insights into the ethical views of practising management accountants and provides a benchmark for future studies of ethical decision making in Muslim majority countries and other parts of the developing world. (shrink)

Ethics training—an important means to foster ethical decision-making in organisations—is carried out formally as well as informally. There are mixed findings as regards the effectiveness of formal versus informal ethics training. This study is one of its first kinds in which we have investigated the effectiveness of ethics training as it is carried out in the Indian IT sector. We have collected the views of Indian IT industry professionals concerning ethics training, and employed positivist and interpretive research. We first have (...) argued that the importance of the perception towards ethics has bearings not only on the individual ideologies but also on the organisational ethical values. In doing so, first we have conceptualised a theoretical framework: Perception of Ethics Training in Employees and Organisations. Second, we have studied the correlations between various components of this model. Third, we, under the rubric of PETINEO, examined the effectiveness of ethics training programmes for the Indian IT companies. Fourth, we have elaborated upon the results of our study. Our results suggest that the combination of both formal and informal means to undertake ethics training has superior impact on ethical decision-making in the Indian IT industry as compared to the use of any one of them in isolation. (shrink)

This study examines a mediated model of ethical leadership on ethical climate, turnover intention, and affective commitment. It is suggested that managers are role models in their organizations. Specifically, through ethical leadership behavior, managers can influence perceptions of ethical climate, which in turn will positively influence organizational members’ turnover intention, and affective commitment. The results indicate that ethical leadership has both direct and indirect effect on affective commitment and turnover intention. The indirect effect of ethical leadership involves shaping perceptions of (...) ethical climate, which in turn, engenders greater affective organizational commitment and less turnover intention. (shrink)

Existing research on the formation of employee ethical climate perceptions focuses mainly on organization characteristics as antecedents, and although other constructs have been considered, these constructs have typically been studied in isolation. Thus, our understanding of the context in which ethical climate perceptions develop is incomplete. To address this limitation, we build upon the work of Rupp to develop and test a multi-experience model of ethical climate which links aspects of the corporate social responsibility, ethics, justice, and trust literatures and (...) helps to explain how employees’ ethical climate perceptions form. We argue that in forming ethical climate perceptions, employees consider the actions or characteristics of a complex web of actors. Specifically, we propose that employees look outward at how communities are impacted by their organization’s actions, upward to make inferences about the ethicality of leaders in their organizations, and inward at their own propensity to trust others as they form their perceptions. Using a multiple-wave field study conducted at a privately held US corporation, we find substantial evidence in support of our model. (shrink)

A growing body of research suggests that follower perceptions of ethical leadership are associated with beneficial follower outcomes. However, some empirical researchers have found contradictory results. In this study, we use social learning and social exchange theories to test the relationship between ethical leadership and follower work outcomes. Our results suggest that ethical leadership is related positively to numerous follower outcomes such as perceptions of leader interactional fairness and follower ethical behavior. Furthermore, we explore how ethical leadership relates to and (...) is different from other leadership styles such as transformational and transactional leadership. Results suggest that ethical leadership is positively associated with transformational leadership and the contingent reward dimension of transactional leadership. With respect to the moderators, our results show mixed evidence for publication bias. Finally, geographical locations of study samples moderated some of the relationships between ethical leadership and follower outcomes, and employee samples from public sector organizations showed stronger mean corrected correlations for ethical leadership–follower outcome relationships. (shrink)

The literature on ethical decision-making is rooted in a cognitive perspective that emphasizes the role of moral judgment. Recent research in interpersonal dynamics, however, has suggested that ethics revolves around an individual’s perceptions and views of others. We draw from both literatures to propose and empirically examine a contingent model. We theorize that whether the individual relies on cognitions about the ethical issue or perceptions of others depends on the level of social consensus surrounding the issue. We test our hypotheses (...) in three studies. Results suggest that not only does social consensus determine whether an individual relies on ethical cognitions about the issue or perceptions of others, but also that an individual’s view of self is an important moderator in these relationships. We conclude by considering implications of this research for theory and practice. (shrink)

Despite the prevailing discourses on the importance of top management ethical leadership, related theoretical and empirical developments are lacking. Drawing on institutional theory, we propose that top management ethical leadership contributes to organizational outcomes by promoting firm-level ethical and procedural justice climates. This theoretical framework was empirically tested using multi-source data obtained from 4,468 employees of 147 Korean companies from various industries. The firm-level analysis shows that top management ethical leadership significantly predicts ethical climate, which then results in procedural justice (...) climate that fully mediates the effects of top management ethical leadership on two organizational outcomes, namely, firm-level organizational citizenship behavior and firm financial performance. The present study provides a plausible theoretical account and empirical validation of a mechanism through which top management ethical leadership enhances organizational performance. (shrink)

Current organizations are underpinned by utilitarian ethics of Modernity. Pure economic motive driven organizations detach themselves from larger societal interest. Rising number of corporate scandals and intraorganizational income inequalities are breeding similar trends in society at large. Current organizations base their competitive advantage on resources and capabilities which boils down to economic supremacy at all cost whether it is named I/o or RBV of the firm. This theoretical article posits Ethics-based Trust as the main competency and capability for attaining sustained (...) competitive advantage. It in no way condemns utility view of the firms but treats it as a natural yet secondary outcome of genuine ethicality of the firm. Cultivating an ethical culture in the firm through identifying antecedents, organizational practices, and the outcomes where profitability is an automatic but secondary outcome under the supremacy of ethics is detailed in the multilevel model presented in this article. The main call of this article is to posit ethics and morality over and above short-term profits so that organizations fulfill their trustee role for society through enacting socio-humanistic theories within organizations. A brief analysis of the proposed ethical theory of firm is undertaken in light of the “schooling” notion in the contemporary organization theory literature. (shrink)

This study empirically examined the effects of ethical leadership and ethical climate on employee ethical behavior in the international port context using survey data collected from 128 respondents who worked in Taiwan International Ports Corporation in Taiwan. Research hypotheses were formulated from the previous literature and tested using structural equation modeling. Results indicated that ethical leadership had a significant impact on ethical climate and the ethical behavior of TIPC employees. Ethical climate was found to be positively associated with employee ethical (...) behavior. The theoretical and practical implications of the research findings are discussed. (shrink)

A multidimensional measure of ethical culture was examined for its relationship to person–organization fit, ethical intent and organizational citizenship behavior, using a sample of 525 employees from the financial industry in Spain. As hypothesized, relative to studies using unidimensional assessments, our measure of EC was more strongly related to ethical intent and organizational citizenship. Also, significant differences were found in the degree to which each the EC dimensions related to both ethical intent and OCB. Finally, in a first for the (...) literature, we demonstrated the important role of overall P–O fit in connection with EC, ethical intent, and organizational citizenship. Specifically, as hypothesized, P–O fit moderated positively the association between EC and ethical intent, but mediated the EC–OCB relationship. (shrink)

Although theory refers to organizational culture as an important variable in corrupt organizations, only little empirical research has addressed the characteristics of a corrupt organizational culture. Besides some characteristics that go hand in hand with unethical behavior and other features of corrupt organizations, we are still not able to describe a corrupt organizational culture in terms of its underlying assumptions, values, and norms. With a qualitative approach, we studied similarities of organizational culture across different corrupt organizations. In this study, we (...) performed content analysis on interviews of 14 independent experts about their experience with corrupt organizations. With this approach, we gained insights about different corrupt organizations spanning different branches (e.g., government, foreign trade, pharmacy, sports, building industry). We found that corrupt organizations perceive themselves to fight in a war, which leads to their taken-for-granted assumption that “the end justifies the means”. This assumption inspires many values and norms of the organizational culture. An important value in a corrupt organization is “security”, and an important norm is punishment of deviant (i.e., non-corrupt) behavior. Furthermore, managers and employees differ in their perception of organizational culture. While the management endorses values, such as success, results, and performance, and implements these values in their norms of goal setting, employees make use of rationalization strategies and endorse values of security and team spirit. (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)

Research by academics, professional organizations, and businesses on ethics in the workplace often relies on surveys that ask employees to report how frequently they have observed others engaging in unethical behavior. But what do these frequencies in observer-reports say about the frequencies of committed unethical behavior? This paper is the first to address this question by empirically exploring the relationship between observer- and self-reports. Our survey research among the Swiss working population shows that for all 37 different forms of unethical (...) behavior investigated, observer-reports show higher frequencies than self-reports. Ratios of observer- to self-reports vary substantially among these forms, ranging from 1.46 for improperly gathering competitor’s confidential information to 6.4 for engaging in (sexual) harassment or creating a hostile work environment. The results indicate that researchers should not assume that the frequency in self-reports can generally be approximated by the frequency in observer-reports. Four possible explanations are presented for the differences in ratios, with recommendations for future research. (shrink)

In addition to a person's character and training, the organization's ethical work climate (EWC) can assess how the organization influences an individual's ethical decision-making process by examining the individuals' perception of "what is the right thing to do" in a particular organizational environment. Relatively little research has explored which EWCs dominate military units and the impact of organizational role and environmental uncertainty on individuals in the military and their ethical decision making. In this study, we examined the predominant EWCs among (...) military units and found that certain organizational influences are associated with the specific EWCs. Based on these discoveries, we discuss the implications of EWC studies and the influence of organizational role and environmental uncertainty for researchers, as well as military leaders. (shrink)

The high turnover of nurses has become a global problem. Several studies have proposed that nurses’ perceptions of the ethical climate of their organization are related to higher job satisfaction and organizational commitment and thus lead to higher organizational citizenship behaviors. This study uses hierarchical regression to understand which types of ethical climate, facets of job satisfaction, and the three components of organizational commitment influence different dimensions of organizational citizenship behaviors. Questionnaires were distributed to 450 nurses, and 352 usable questionnaires (...) were returned. The findings of the article suggest that hospitals can increase organizational citizenship behaviors by influencing an organization’s ethical climate, job satisfaction, and organizational commitment. Hospital administrators can foster within organizations, the climate types of caring, law and code and rules climate, satisfaction with coworkers, and affective commitment and normative commitment that increase organizational citizenship behavior, while preventing organizations from developing the type of instrumental climate and continuance commitment that decreases it. (shrink)

Drawing on social identity theory and organizational identification theory, we develop a model of the impact of perceived corporate social responsibility on employees’ organizational identification. We argue that employees’ perceptions of their company’s social responsibility behaviors are more important than organizational reality in determining organizational identification. After defining perceived corporate social responsibility (PCSR), we postulate how PCSR affects organizational identification when perception and reality are aligned or misaligned. Implications for organizational practice and further research are discussed.

Theories of ethical decision making assume it is a process that is special, or different in some regard, from typical individual decision making. Empirical results of the most widely known theories in the field of business ethics contain numerous inconsistencies and contradictions. In an attempt to assess why we continue to lack understanding of how individuals make ethical decisions at work, an inductive study of ethical decision making was conducted. The results of this preliminary study suggest that ethical decision making (...) might not be meaningfully “special” or different from other decision making processes. The implications of this research are potentially significant in that they challenge the fundamental assumption of existing ethical decision making research. This research could serve as an impetus for further examination of whether ethical decision making is meaningfully different from other decision making processes. Such studies could create new directions for the field of business ethics. (shrink)

Family firm leaders acting as stewards of a close-knit enterprise may attempt to build a positive atmosphere of trust, clarity, and cohesiveness in the firm’s operation. Yet, conditions unique to family firms may lead some family members to develop a heightened sense of entitlement and weaker bonds to the organization. This creates conditions for a Fredo effect, where a family member’s incompetence, opportunistic behaviors, and/or ethically dubious actions can impede the firm’s success, potentially resulting in a scandal that could lead (...) to the firm’s demise and negative economic impact on employees, customers, and other stakeholders. Surveying 147 family-firm members, we examine the role that linkages among perceptions of family harmony norms, distributive fairness, role ambiguity, and relationship conflict play in the emergence of a family member who acts as an impediment to the firm, which can be manifested in damaging unethical behaviors. As hypothesized, family harmony norms and fairness perceptions are negatively related to family impediment, while role ambiguity is positively related to family impediment. However, relationship conflict mediates these connections, underscoring the potential damage this type of conflict can create in a family firm, even if leaders of the firm attempt to establish conditions that reflect a stewardship approach to firm governance. We discuss how these findings impact the development of an ethical climate in the family firm and the implications for family business survival or scandal. (shrink)

Previous research indicates that ethical ideologies, issue-contingencies, and social context can impact ethical reasoning in different business situations. However, the manner in which these constructs work together to shape different steps of the ethical decision-making process is not always clear. The purpose of this study was to address these issues by exploring the influence of idealism and relativism, perceived moral intensity in a decision-making situation, and social context on the recognition of an ethical issue and ethical intention. Utilizing a sales-based (...) scenario and multiple ethics measures included on a self-report questionnaire, data were collected from a regional sample of business students, most of whom had modest work experience. The results indicated that perceived moral intensity was associated with increased ethical issue recognition and ethical intention. Idealism was also associated with increased ethical issue recognition, and relativism was associated with decreased ethical intention. Social consensus was positively related to ethical issue recognition and intention, while competitive context was inversely related to ethical intention. Finally, ethical issue recognition was associated with increased ethical intention. Idealism, moral intensity, social consensus, and work experience worked together as predictors of ethical issue recognition, whereas recognition of an ethical issue, relativism, moral intensity, social consensus, and competitive context worked together to predict ethical intention. (shrink)

Abstract:Previous research has identified multiple approaches to the design and implementation of corporate ethics programs (Paine, 1994; Weaver, Treviño, and Cochran, in press b; Treviño, Weaver, Gibson, and Toffler, in press). This field survey in a large financial services company investigated the relationships of the values and compliance orientations in an ethics program to a diverse set of outcomes. Employees’ perceptions that the company ethics program is oriented toward affirming ethical values were associated with seven outcomes. Perceptions of a compliance (...) orientation were associated with four of these outcomes. The interaction of values and compliance orientations was associated with employees’ willingness to report misconduct. In general, a values orientation makes a greater unique contribution to the measured outcomes when compared to a compliance orientation. (shrink)

ABSTRACT:Despite sustained attention to ethical leadership in organizations, scholarship remains largely descriptive. This study employs an empirical approach to examine the consequences of ethical leadership on leader promotability. From a sample of ninety-six managers from two independent organizations, we found that ethical leaders were increasingly likely to be rated by their superior as exhibiting potential to reach senior leadership positions. However, leaders who displayed increased ethical leadership were no more likely to be viewed as promotable in the near-term compared to (...) those who displayed less ethical leadership. Our findings also show ethical culture and pressure to achieve results are important contextual factors that moderate the relationships between ethical leadership and leader promotability to senior leadership roles. (shrink)

We examine the moderating role of the situational and organizational contexts in determining unethical managerial behavior, applying the case-survey methodology. On the basis of a holistic, multiple-antecedent perspective, we hypothesize that two key constructs, moral intensity and situational strength, help explain contextual moderating effects on relationships between managers’ individual characteristics and unethical behavior. Based on a quantitative analysis of 52 case studies describing occurrences of real-life unethical conduct, we find empirical support for the hypothesized contextual moderating effects of moral intensity (...) and situational strength. By examining these complex contextual moderators, we aim to contribute to organizational ethics research as we shed light on the critical role that context may play in influencing unethical managerial behavior. (shrink)

Organizations differ in the extent to which they emphasize the importance of status, yet most extant research on the role of status at work has utilized a limited view of status as merely a matter of a person’s status rank. In contrast, we examine people’s perceptions of the extent to which having status matters in their work context and explore the behavioral implications of such perceptions. We offer a new construct, perceived status importance, defined as employees’ subjective assessment of the (...) degree to which people within their organization are preoccupied with status. Relying on social comparison theory, we propose that higher perceived status importance triggers envy, which leads to interpersonal deviance. Across three studies, using multiwave survey and experimental designs, we find support for these relationships. We also find support for the mitigating influence of core self-evaluations on the perceived status importance—envy relationship. Implications are discussed. (shrink)

We review and synthesize over two decades of research on ethical culture in organizations, examining eighty-nine relevant scholarly works. Our article discusses the conceptualization of ethical culture in a cross-disciplinary space and its critical role in ethical decision-making. With a view to advancing future research, we analyze the antecedents, outcomes, and mediator and moderator roles of ethical culture. To do so, we identify measures and theories used in past studies and make recommendations. We propose, inter alia, the use of validated (...) measures, application of a wider range of theories, adoption of longitudinal studies, and study of group-level data in organizations. We explore research possibilities in new and emergent forms of organizations, ways of organizing work, and technology in ethical decision-making, such as the role of artificial intelligence. We also recommend the study of a broad range of leadership styles and their influence in shaping ethical cultures in organizations. (shrink)

Drawing on theories of social exchange and social information processing, we examined whether the influence of psychological contract breach on in-role performance and organization-directed citizenship behavior (OCBO) depends work group climate levels, specifically procedural justice climate and power distance climate. The findings supported our hypothesis that psychological contract breach exhibits a stronger influence on in-role performance and OCBO among members of units with favorable procedural justice climates. Support for a hypothesized moderating role of power distance climate was less conclusive. We (...) discuss the implications of our model and findings for theories of employee-organization relationships and practice. (shrink)

Purpose – With the growing demand for ethical standards in the prevailing business environment, ethical leadership has been under increasingly more focus. Based on the social exchange theory and social learning theory, this study scrutinized the impact of ethical leadership on the presentation of ethical conduct by employees through the ethical climate. Notably, this study scrutinized the moderating function of the person organization fit (P-O fit) in relation to ethical climate and the ethical conduct of employees. -/- Design/methodology/approach – To (...) evaluate the research hypotheses, two-wave data were collected from 295 individuals who are currently employed in various Iraqi organizations (i.e. manufacturing, medical, and insurance industries). -/- Findings – In line with the hypotheses, the outcomes from a sample of 295 workers working in different Iraqi entities exhibited a positive relationship between the ethical behavior of leaders and the ethical conduct of employees in the ethical climate. Moreover, it was observed that the P-O fit of employees moderated the relationship between ethical climate and the ethical conduct of employees such that the relationship was more robust for those with a high P-O fit in comparison to those with a low P-O fit. -/- Research limitations/implications – The primary limitation of this study is in the data, which was obtained from a single source. Although the study conducted two surveys and utilized a mediation and moderation variables model that was less likely to be influenced by common method bias (CMB) (Podsakoff et al., 2012), one cannot completely rule out CMB. Apart from the potential effects of the CMB, the consistency of the empirical findings could have also been compromised since self-reported data were utilized in measuring ethical behavior, which can be a very complex and sensitive issue. For this reason, the social desirability response bias cannot be ruled out completely. When possible, future studies must gather data from multiple sources. Furthermore, supervisors must evaluate the ethical behavior of employees. Another limitation was that the findings of this study were based on a sample in a Middle Eastern cultural context such as in Iraq. Perhaps, the particular cultural features of this context, which encompassed, among other things, strong adherence to religious values (Moaddel, 2010), could have influenced the findings of this study. It is true that the effects of differences (P–O fit) are highly likely to replicate across cultural contexts (Triandis et al., 1988). However, it can be seen that further studies are needed to evaluate the context-sensitivity of these findings (Whetten, 2009) by analyzing other cultures, where the importance of religiosity is on the decline (i.e. in Western countries, Ribberink et al., 2018) or where the cultural features are very much different from those that apply to Iraq. Lastly, other external factors were not taken into account by this study as it tried to explain ethical behavior. Ethics is a highly complex subject and is influenced by numerous variables at the organizational, individual, and external environment levels. Thus, caution must be observed when making inferences from the present study which, to a certain degree, offered a simplified version of ethical behavior by concentrating on a few variables such as the Arab culture’s traditional ideology, which dominates even science (Abu Khalil, 1992). In addition, there are political conflicts in the Middle Eastern cultural context such as what is happening in Iraq (Harff, 2018). Thus, it is important to include such aspects in future researches. -/- Practical implications – In terms of management, the findings send a clear signal to those in the upper echelon that, without ignoring the issue of ethics in organizations, employees are a critical aspect to be taken into account to encourage ethical behavior at the workplace. This study has important practical implications. First, this study determined that ethical leadership (here, of the supervisors) positively influences the behavior of subordinates (refers to the supervisors here); this, in turn, further improves the ethical behavior of employees. It is vital that managers or supervisors are motivated to practice ethical leadership because they directly influence the employees. It has been suggested that top managers, especially chief executive officers, have the ability to shape the ethical climate, which also influences the ethical behavior of employees further. This study offered several feasible ways that managers can apply to achieve that. In particular, top managers may utilize the ethical climate as a way of communicating the ethical values that they have to their subordinates, thereby serving as a motivation for the subordinates to adopt ethical behavior. It was also suggested by this study that ethical climate and the P–O fit may, to some degree, substitute each other as they influence the ethical behavior of employees. Therefore, firms that were identified to have a low level of ethical standards, practices, and policies, at least from the employees’ perspective, are better poised to conduct ethical issues in order to construct the ethical behavior of their subordinates. More importantly, it is highly essential that the value congruence between an organization and its followers be considered. -/- Social implications – This study highlighted the notion of ethics and how it’s essential for society. Ethics refers to the norms, standards, and values that direct the behavior of an individual. Ethical behavior is vital in society because we need to be treated with respect as human beings. -/- Originality/value – This study responds to recent calls for more research to identify factors that may strengthen or mitigate the influence of ethical behavior in the workplace such as ethical leadership, ethical climate, and Person–Organization. (shrink)

The importance of value-based leadership such as authentic, ethical, and servant leadership is inconspicuous. However, the benefits of these leadership approaches are often only explained through the behaviors of their followers. As such, limited research has communicated the leader’s motivation for pursuing such leadership behavior, resulting in such discourse to escape theorizing. We draw upon role theory and paid attention to the role of higher-level management (leadership) through the trickle-down model to underline their importance in the organization. We then expand (...) this role theory framework by synthesizing research to explain the emergence of value-based leadership behavior at the frontline of management. In doing so, we aim to provide a stronger explanation of the emergence of value-based leadership in organizations. We conclude this analysis by guiding future research in the form of propositions to investigate the psychological process and organizational factors to empirically examine the proposed role framework. (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)

Ethically questionable leader conduct continues to garner headlines. It has prompted the leadership field to renew their focus on research regarding the ethical dimensions of leadership. Empirical emphases have focused on understanding negative leader behaviour, with the typical leadership study reliant upon positivist approaches. I critique these studies as not having produced meaningful, practicable or wholly relevant insights regarding the challenges and support mechanisms required to lead ethically. Few studies have in fact examined leadership in not-for-profit organisations where decisions might (...) reasonably be expected to possess elevated moral capital. To test this, my study interviewed leaders from professional sectors in both the USA and the UK, to offer a more holistic interpretation of what underpins and directs leader moral disposition. As corollary, this research explicates issues of practicability and how other sectors might learn from leaders who perpetually practise their ethicality. To gain insights that develop the field of leadership research, my thesis centres on the experiences of ten high-level, elite and specialised leaders. Although not selected as ethical, they were found to be principled, ethical decision-makers. A specific type of in-depth, qualitative interviewing was conducted and justified to more readily reflect the status of the leaders. Elite and specialised interviewing has not been widely used as a data collection tool, but it offered a unique opportunity to garner specialised data, once access issues had been overcome. The findings reveal unique insights into the underexplored ethical leader mindset and highlight the complex processes of leader decision-making in situ by demonstrating what underpins leaders’ behaviour, with reference to how they understand experiences for themselves. This study uncovers the symbiotic and interconnected nature of the variety of ideological frameworks at play, positing theological concepts alongside sociological and philosophical counterparts. Ethical awareness, the notions of trust and responsibility are shown as bedrock and explicit. This research presents a new ethical leadership, a typology that shows how ethical leaders are created through experience, sustained and developed over time, and nourished by awareness beyond the self. Current conceptions have done little to inform ethical leadership development, whereas I offer a more practical and holistic way to use the unexpected, traumatic, and intense crucibles of leadership experience to explicate and consolidate ethical foundations. This thesis presents a vision of a welfare driven leadership originating from the self, in the service of others, and for society; an ethical leadership for all. (shrink)

While numerous studies have examined the impact that powerful CEOs have on their compensation and overall firm decisions, relatively little is known about how powerful CFOs influence their compensation and important firm financial reporting and operational outcomes. This is somewhat surprising given the critical role CFOs play in the financial reporting process of a firm. Using managerial power theory and the theory of power and self-focus :635–658, 2013), we predict that powerful CFOs employ a two-part strategy to camouflage excessive incentive (...) compensation above what efficient contracting would dictate. First, powerful CFOs use their power and influence to negotiate shorter incentive pay duration to maximize the present value of their performance—based compensation. Second, when their incentive equity compensation vests, we suggest that CFOs manage earnings to further enhance their personal income. Consistent with our theoretical expectations, we find higher levels of income-increasing accrual-based earnings management and real transactions management, a potentially unethical practice, in firms with powerful CFOs who have short pay durations. We discuss the implications of our analysis in the context of mitigating CFO power and managing the ethical environment “tone at the top.”. (shrink)

Tournament-like promotion systems are the default in audit firms, which are generally internally owned professional partnerships. While awarding promotions in a contest-like fashion stimulates contestants’ motivation and productivity, it may also upset an organizations’ ethical climate and trigger ethically adverse behaviors. Since nearly all research on promotion tournaments in management has been conducted in public firms, little is known about how these incentive systems operate in professional partnerships. In this study, we analyze how the perception of the two controllable design (...) parameters of promotion tournaments—the relative pay spread between winners and losers and tournament breadth in terms of the number of contestants that compete for a prize—affects audit firm behavior. Survey results provide evidence that the tournament’s perceived breadth prompts adverse behavior, as it does in public firms. Contrary to conventional wisdom, however, the perceived pay spread has no significant effect on adverse behavior, but triggers desirable behaviors instead. Our study suggests that promotion tournaments indeed provide powerful incentives, but also that understanding the unintended consequences of these incentives on organizational ethical climates and behavior requires tournament theory to be contextualized when it is applied in new settings like internally owned professional partnerships. (shrink)

This paper integrates the inclusion and organizational ethics literatures to examine the relationship between employees’ perceptions of an organizational integration and learning approach to diversity and two employee outcomes: organizational citizenship behavior toward the organization and interpersonal workplace deviance. Findings across two field studies from the USA and Germany show that employees’ perceptions of an organizational integration and learning approach to diversity are positively related to perceived organizational ethical virtue. Perceived organizational ethical virtue further transmits the effect of employees’ perceptions (...) of an organizational integration and learning approach to diversity on both organizational citizenship behavior toward the organization and interpersonal workplace deviance. In addition, we find support for a moderated indirect effect model whereby the indirect effect of the perceived integration and learning approach to diversity on the dependent variables through perceived organizational ethical virtue is stronger when employees have high personal value for diversity rather than low personal value for diversity. These results underscore the importance of having a fit between employees’ perceptions of an organization’s approach to diversity and employees’ personal value for diversity in order for inclusion to result in positive employee behaviors. Results emphasize the ethical responsibility of organizations in terms of how they approach diversity. (shrink)

Background: The performance of nurses has become vital in hospitals. Some studies have suggested that nurses’ perceptions of the ethical climate in their hospitals are related to higher job satisfaction and organizational commitment and in turn lessen the issue of nursing shortage. Hypothesis: (1) The ethical climate types “caring,” “independent,” “law and code,” and “rules” have a significant positive impact on overall job satisfaction. (2) The ethical climate types and overall job satisfaction have significant positive influences on normative and affective (...) and significant negative influences on continuance commitment. Research design: The study uses path analysis to understand which types of ethical climate impact overall job satisfaction. It also tries to find the effect of different types of ethical climate and overall job satisfaction on the components of organizational commitment. The relationships between variables were evaluated using factor analysis, reliability, descriptive statistics, correlations, and regression in this study. Participants and research context: A total of 171 useful questionnaires were collected from nurses working in public and private hospitals in Bosnia and Herzegovina. Ethical considerations: Formal research approval was obtained from the administration of each study hospital. Questionnaires with a cover letter were mailed to the hospitals that agreed to participate in the study. In the cover letter, the researchers explained the study purpose, encouraged nurses’ voluntary participation, and guaranteed the anonymity of participants. Findings: In the first path analyses, “rules” and “caring” climates significantly and positively affected overall job satisfaction. In the second one, while overall job satisfaction and “rules” climate significantly influenced normative commitment, “caring” climate and overall job satisfaction significantly affected affective commitment. Discussion: The findings of the study have been convenient with the literature. Conclusion: Public and private hospitals can enhance overall job satisfaction and organizational commitment by altering the ethical climate of organizations. Hospital administrations should nurture caring and rule types of ethical climate which influence overall satisfaction. By this way, they could reduce nursing shortage. (shrink)

In this chapter it is pointed out that leaders who make decisions normally rely on both their intuition and their analytical thinking. Modern research shows that intuitive thinking has the potential to support the analytical, if used properly. Leaders must therefore be aware of the possibilities and limitations of intuition. Fresh thinking and innovation are key elements in leadership analysis, thus creative problem-solving is an important complement to traditional leadership thinking. Creative leaders work extensively with both intuition and logic. They (...) also often work with metaphors, analogies, images and imagination to create dynamism in the analysis of a problem. Many leaders come in daily contact with problems that are not necessarily self-generated. It is therefore important that they have the opportunity to take an outside perspective on the situation. They must be able to define the problems which are of strategic importance for the activity. Leaders should not allow themselves to be stressed too much by various everyday problems, but be aware that they usually cannot just ignore them. After delineating a problem a leader should think through what trials ought to be conducted to test a given hypothesis about reality. This can be done by showing how different problems are related to each other. When analyzing various problems it is useful to clarify what kinds of decisions theyrelate to. Some decisions must be made directly, while others canbe postponed. Some decisions are reversible in nature while others are irrevocable -/- . (shrink)