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Switch to: Citations
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In this paper I examine how the constituent elements of a firm's organizational structure affect the ethical behavior of workers. The formal features of organizations I examine are the compensation practices, performance and evaluation systems, and decision-making assignments. I argue that the formal organizational structure, which is distinguished from corporate culture, is necessary, though not sufficient, in solving ethical problems within firms. At best the formal structure should not undermine the ethical actions of workers. When combined with a strong culture, (...) |
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In this paper, we investigate a large-scale financial statement fraud to better understand the process by which individuals are recruited to participate in financial statement fraud schemes. The case reveals that perpetrators often use power to recruit others to participate in fraudulent acts. To illustrate how power is used, we propose a model, based upon the classical French and Raven taxonomy of power, that explains how one individual influences another individual to participate in financial statement fraud. We also provide propositions (...) |
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Although much theoretical and empirical research has examined organizational power, virtually none has addressed the hierarchical abuse of power in organizations. Managers' incentives and discretion and subordinates' dependencies define the abuse of power as an important organizational issue. This paper offers a conceptualization and process model to help further theoretical and applied understanding, and it considers the ethical nature of power abuse. Two dimensions, disrespect for individual dignity and interference with job performance or deserved rewards, conceptualize the interpersonal abuse of (...) |
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Abstract:This field survey focused on two constructs that have been developed to represent the ethical context in organizations: ethical climate and ethical culture. We first examined issues of convergence and divergence between these constructs through factor analysis and correlational analysis. Results suggested that the two constructs are measuring somewhat different, but strongly related dimensions of the ethical context. We then investigated the relationships between the emergent ethical context factors and an ethics-related attitude (organizational commitment) and behavior (observed unethical conduct) for (...) |
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Servant leadership has been theorized as a model where the moral virtue of humility co-exists with action-driven behavior. This article provides an empirical study that tests how these two apparently paradoxical aspects of servant leadership interact in generating follower engagement, while considering the hierarchical power of the leader as a contingency variable. Through a three-way moderation model, a study was conducted based on a sample of 232 people working in a diverse range of companies. The first finding is that humble (...) |
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Followers’ perceptions of their leaders’ ethics have the potential to impact the way they react to the influence of these leaders. The present study of 365 U.S. Air Force Academy Cadets examined how followers’ perceptions of their leaders’ ethics moderated the relationships found between the leaders’ use of power, as conceptualized by French and Raven, and the followers’ contextual performance. Our results indicated that leaders’ use of expert, referent, and reward power was associated with higher levels of organizational citizenship behaviors (...) |
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This study focuses on CEO hubris and its detrimental effect on corporate financial performance along with an examination of critical corporate governance contingencies that may moderate the negative effect. From 654 observations of 164 Korean firms over the years 2001–2008, we found that CEO power exacerbated the negative effect of CEO hubris on corporate financial performance, whereas board vigilance mitigated it. This study provides empirical evidence that entrenchment problems arising from CEO hubris would be exacerbated as CEOs become more powerful, (...) |
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