This study examines the impact of a social desirability response bias as a personality characteristic (self-deception and impression management) and as an item characteristic (perceived desirability of the behavior) on self-reported ethical conduct. Findings from a sample of college students revealed that self-reported ethical conduct is associated with both personality and item characteristics, with perceived desirability of behavior having the greatest influence on self-reported conduct. Implications for research in business ethics are drawn, and suggestions are offered for reducing the effects (...) of a socially desirable response bias. (shrink)

Using traditional meta-analytic techniques, we compile relevant research to enhance conceptual appreciation of ethical climate theory (ECT) as it has been studied in the descriptive and applied ethics literature. We explore the various treatments of ethical climate to understand how the theoretical framework has developed. Furthermore, we provide a comprehensive picture of how the theory has been extended by describing the individual-level work climate outcomes commonly studied in this theoretical context. Meta-analysis allows us to resolve inconsistencies in previous findings as (...) well as confirm the central tenets of the overall ethical climate framework. In addition, we consider the ethical climate relationships in the larger context of the␣theoretical framework, using path analysis to test the structural relationships. Overall, our results provide evidence of the relationships between ethical climate perceptions and individual-level work outcomes. Based on our analyses, we offer future research directions important for further development of ECT. (shrink)

This experimental study evaluated the influence of stated organizational concern for ethical conduct upon managerial behavior. Using an in-basket to house the manipulation, a sample of 113 MBA students with some managerial experience reacted to scenarios suggesting illegal conduct and others suggesting only unethical behavior. Stated organizational concern for ethical conduct was varied from none (control group) to several other situations which included a high treatment consisting of a Code of Ethics, an endorsement letter by the CEO and specific sanctions (...) for managerial misconduct. Only in the case of suggested illegal behavior tempered by high organizational concern were managers influenced by organizational policy to modify the morality of their actions. However, the responses to the illegal scenarios were significantly more ethical than the reactions given to the unethical (but not illegal) situations. The implications of these findings are then discussed. (shrink)

This study examined the relationship between unethical employee behavior and the dimensions of the Ethical Climate Questionnaire (ECQ). In order to explore the relationship between the dimensions of the ECQ and unethical behavior, the factor structure of five previously identified empirical models and the hypothesized nine-dimension model for the ECQ was tested with a confirmatory factor analysis. The analysis revealed that the hypothesized nine-dimension model provided as good or even better fit to the data than the five empirically derived models. (...) Therefore, the nine-dimensional model was used to examine the criterion-related validity of the ECQ. The results demonstrated that the nine ethical climate dimensions were correlated with some of the unethical behaviors examined in this study, but not others. However, the results clearly demonstrated that most of the ethical climate dimensions were significantly related to an aggregate measure of unethical behavior. It was suggested that these results might account for the differences in previous studies on the criterion-related validity of the ECQ. The results also replicated a previous report that the association between unethical behavior and ethical climate is stronger in organizations that do not have a code of ethics. Finally, a difference was observed in the ethical climates for organizations with a code of ethics and organizations without a code of ethics. (shrink)

Victor and Cullen (1987, 1988) developed a typology of ethical climates based upon the level of moral development of the work group (egoism, benevolence and principled a la Kohlberg, 1981) and the locus of analysis utilized in reaching decisions (individual, local, cosmopolitan). Building on this typology, data were obtained from a high technology company for the purpose of empirically extending the examination of the number of ethical climates that exist and portraying the relationship between ethical climates and the ethical dimension (...) of decisions.When faced with decisions posing various types of ethical dilemmas, most respondents indicated they would take the ethical path. The one exception involved bribery where respondents were about equally likely to make or withhold payment. One climate guided by laws/professional codes accounted for over half of the respondents. Several climates accounted for less than ten percent of the respondents. (shrink)

Victor and Cullen (1988) identified several dimensions of ethical climate that exist in organizations and organizational subunits. We tested the relationship between these dimensions of ethical climate and ethical behavior at different levels of analysis. Using Within and Between Analysis (WABA) (cf. Dansereau, Alutto and Yammarino, 1984), partial support was found for a relationship between dimensions of ethical climate and ethical behavior.

This paper reports on an investigation of issues surrounding the use of ethical codes/codes of conduct in Irish based companies. Using a comprehensive questionnaire survey, the paper examines the incidence, content and enforcement of codes of conduct among a sample of the top 1000 companies based in Ireland. The main findings indicate that the overall usage of codes of conduct amongst indigenous Irish companies has increased significantly from 1995 to 2000. However, in line with prior research, these codes focus primarily (...) on issues surrounding company and employee protection as opposed to society protection. Almost half of all codes are written by company personnel or provided by head office. Revisions of codes are common but formal ongoing methods of instructing new staff about codes are not prevalent. Less than one-third of companies with codes have formal channels for reporting violations but a high percentage have formal disciplinary procedures in place for breaches of codes. (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.

Stakeholder management devices (SMDs) are the mechanisms through which organizations respond to stakeholder concerns. Given that SMDs serve as organizational control systems for employees and managers, this research investigates the internal rather than the external effects of a firm's SMDs. Unlike most previous research, I examined the effects of these formal structures, processes, and procedures in the aggregate, rather than focusing attention on a single type of device. The study investigates the effects of a firm's stakeholder management devices, in the (...) aggregate, on three factors that influence individual behavior in organizations: expectations, attitudes, and perceived organizational climates. Respondents were managers in 112 for-profit businesses located throughout the United States. Results suggest that a firm's stakeholder management devices affect the perceived moral climates in the firm, and affect managers' expectations about the consequences of good corporate social performance, but do not affect organization members' attitudes about corporate social responsibility. (shrink)

This article examines multinational banks’ approaches to corporate social responsibility in developing countries’ subsidiaries, particularly in Latin America. Building on in-depth case studies of two MNBs that are based in Europe and market leaders in Latin America, we analyze their CSR motivations and outcomes in host countries. We examine institutional environments by applying the national business system framework, and we suggest missing categories in its financial and educational dimensions. We theorize how institutional necessity determines MNBs' CSR in developing countries. Finally, (...) we examine the CSR outcomes in Latin America, where banks’ responsible conduct has led to major improvements in educational levels and financial inclusion. These improvements alleviate poverty and enhance both country's social wellbeing and MNBs’ legitimacy, leading to mutual prosperity. (shrink)

An important factor that leads governments to engage in public service contracts with nonprofit organizations is the belief that they share similar ethical and value orientations that will allow governments to reduce monitoring costs. However the notion of the existence of similarities in ethical climate has not been systematically examined. The purpose of this paper is to investigate the ethical climate in government and nonprofit sectors and to determine the extent to which similarities (and differences) exist in ethical climate dimensions. (...) Using survey data and structural equation modeling technique, the factor structure equivalence and measurement invariance of the ethical climate in the two sectors are tested. Results indicate that while there is a significant overlap in shared perception of ethical climate dimensions, there are also key differences between the two sectors. The outcome of this research provides important preliminary insights for public policy makers in government to better understand the implications of using the nonprofit sector for service delivery. (shrink)

This article offers an in-depth case study of a global high tech manufacturer that aligned its ethics and compliance, corporate social responsibility, and sustainability practices. Few large companies organize their responsible business practices this way, despite conceptual relevance and calls to manage them comprehensively. A communities of practice theoretical lens suggests that intentional effort would be needed to bridge meaning between the relevant managers and practices in order to achieve alignment. The findings call attention to the important role played by (...) employees who broker understanding between managers and practices, and the boundary objects used to create shared meaning and engagement. They also highlight that an organizing logic is necessary but not sufficient to align practices. This study describes the dynamics of alignment and provides a practical road map for scholars and managers interested in understanding how responsible business practices may be collectively organized. (shrink)

Prior research on corporate misconduct pays extensive attention to single misconduct behaviors. However, little research has addressed recidivism – the repeated behaviors of corporate misconduct. Based on institutional theory and using the context of emerging economies where recidivism plays a considerable role, we propose the path dependency of corporate recidivism and suggest that three influential factors exist: internal preconditioning, inter-organizational imitation, and the prevailing external evaluation. Our event history analysis of 1,036 listed companies in China over the period 2001–2008 statistically (...) confirms our hypotheses. We conclude the paper by outlining the implications for both theory and practice. (shrink)

This paper capitalizes on an institutional perspective to analyze corporate social responsibility (CSR) orientations in the Lebanese context. Specifically, the paper compiles a new theoretical framework drawing on a multi-level model of institutional flows by Scott (Institutions and organizations: ideas and interests, 2008 ) and the explicit/implicit CSR model by Matten and Moon (Acad Manag Rev 33(2):404–424, 2008 ). This new theoretical framework is then used to explore the CSR convergence versus divergence question in a developing country context. The findings (...) highlight the usefulness of the compiled multi-layered institutional framework and the varied nuances and profound insights it offers in analyzing CSR in context. They also suggest that a cosmetic level of global convergence in explicit CSR may materialize in light of mimetic isomorphic pressures, but that the path dependence hypothesis is indeed salient in light of national history trajectories and socio-politico configurations. The findings correspond most closely to patterns of CSR crossvergence, combining elements of both convergence and divergence, and reflecting in complex hybridized CSR expressions. The findings and their implications are presented and assessed. (shrink)

A business code of ethics is widely regarded as an important instrument to curb unethical behavior in the workplace. However, little is empirically known about the factors that determine the impact of a code on unethical behavior. Besides the existence of a code, this article studies five determining factors: the content of the code, the frequency of communication activities surrounding the code, the quality of the communication activities, and the embedment of the code in the organization by senior management as (...) well as local management. The full model explains 32% of observed unethical behavior while the explanatory value of a code alone is very modest. The study shows when codes are effective, and even when they become counter effective. (shrink)

Corporate codes of conduct are a practical corporate social responsibility (CSR) instrument commonly used to govern employee behavior and establish a socially responsible organizational culture. The effectiveness of these codes has been widely discussed on theoretical grounds and empirically tested in numerous previous reports that directly compare companies with and without codes of conduct. Empirical research has yielded inconsistent results that may be explained by multiple ancillary factors, including the quality of code content and implementation, which are excluded from analyses (...) based solely on the presence or absence of codes.This study investigated the importance of code content in determining code effectiveness by examining the relationship between code of conduct quality and ethical performance. Companies maintaining high quality codes of conduct were significantly more represented among top CSR ranking systems for corporate citizenship, sustainability, ethical behavior, and public perception. Further, a significant relationship was observed between code quality and CSR performance, across a full range of ethical rankings. These findings suggest code quality may play a crucial role in the effectiveness of codes of conduct and their ability to transform organizational cultures.Future research efforts should transcend traditional comparisons based on the presence or absence of ethical codes and begin to examine the essential factors leading to the effective establishment of CSR policies and sustainable business practices in corporate culture. (shrink)

This paper is an attempt to address the limited amount of research in the realm of organizational ethical climate in the not-for-profit sector. The paper draws from Victor and Cullen's (1988) theoretical framework which, combines the constructs of cognitive moral development, ethical theory, and locus of analysis. However, as a point of departure from Victor and Cullen's work, the authors propose an alternative methodology to extract ethical climate dimensions based on theoretical considerations. Using the Ethical Climate Questionnaire (ECQ), an exploratory (...) factor analysis is conducted followed by a confirmatory factor analysis using LISREL. The resulting five dimensions are labelled as: individual caring, machiavellianism, independence, social caring, and law and code. Findings provide a somewhat disparate perspective of the ethical climates in a not-for-profit context. First, there is a more discriminating perception of benevolent climate than its for-profit counterpart. Second, the dimensions are polarized between the individual and the cosmopolitan loci of analysis. These findings are then discussed with implications and direction for future research. (shrink)

International government and corporate corruption is increasingly under siege. Although various groups of researchers have quantified and documented world-wide corruption, apparently no one has validated the measures. This study finds a very strong significant correlation of three measures of corruption with each other, thereby indicating validity. One measure was of Black Market activity, another was of overabundance of regulation or unnecessary restriction of business activity. The third measure was an index based on interview perceptions of corruption (Corruption Perceptions Index or (...) CPI) in that nation. Validity of the three measures was further established by finding a highly significant correlation with real gross domestic product per capita (RGDP/Cap). The CPI had by far the strongest correlation with RGDP/Cap, explaining over three fourths of the variance.Corruption is increasingly argued to be a barrier to development and economic growth. Business students often do not see ethics courses as being as relevant as other value-free disciplines or core courses. The data in this study suggests otherwise. Sustainable economic development appears very dependent on a constant, virtuous cycle that includes corruption fighting, and the maintenance of trust and innovation, all reinforcing each other. (shrink)