The Ethics of Organizations: A Longitudinal Study of the U.S. Working Population (original) (raw)

The challenge of ethical behavior in organizations

Journal of Business Ethics, 1992

This paper is designed to do three things while discussing the challenge of ethical behavior in organization. First, it discusses some reasons why unethical behavior occurs in organization. Secondly, the paper highlights the importance of organizational culture in establishing an ethical climate within an organization. Finally, the paper presents some suggestions for creating and maintaining an ethically-oriented culture.

Understanding unethical behavior by unraveling ethical culture

Human Relations, 2011

Unethical behavior in the workplace is a widespread phenomenon. In this article a model for the ethical culture of organizations that consists of eight dimensions is employed to explain unethical behavior. The sample was composed of 341 triads consisting of a manager and two direct reports. The results show that six dimensions of ethical culture were negatively related to observed unethical behavior: ethical role modeling of management, ethical role modeling of supervisors, capability to behave ethically, commitment to behave ethically, openness to discuss ethical issues, and reinforcement of ethical behavior. Two of the eight dimensions, clarity of ethical standards and visibility of (un)ethical behavior, were not significantly related to unethical behavior. This study demonstrates that multiple dimensions of ethical culture have to be taken into account to reduce unethical behavior. The study opens up avenues for future research about the significance of each dimension in specific settings, the dynamic relationship between these dimensions, and the instruments required to improve each dimension of ethical culture.

The Relationship Between Organizational Ethical Culture And The Ethical Behavior Of Employees: A Study Of Accounting And Finance Professionals In The Insurance Industry Of United States

Journal of Business & Economics Research (JBER), 2011

This study explores the relationship between organizational ethical culture and ethical behavior of accounting/finance professionals working in the insurance industry in the United States. Results of 100 respondents in five different insurance organizations suggest that there is a significant relationship between organizational ethical culture and ethical behavioral intentions given bad debt write off and insider trading ethical vignettes. This was consistent with prior research findings that written (formal) and unwritten (informal) organizational policies significantly affect employees' ethical decision-making (Sims and Keon, 2000 & 1997). Key (1999) also argued that organizational culture sends messages as to sanctioned and unsanctioned behavior. The Relationship between Organizational Ethical Culture and Ethical Behavior ey (1999) argued that ethical behavior by business leaders send messages on sanctioned and unsanctioned behavior. Smith (2003) pointed out that unethical behavior is a dagger in the heart, and lack of integrity have led to the fall of giant corporations such as Enron, MCIWorldcom, Adelphia, and Global Crossing. The goal of this study is to empirically investigate the relationship between organizational ethical culture and ethical behavioral intentions among accounting/finance professionals in the insurance industry in the United States of America. Ampofo et al, (2004), in their article titled "Organizational Ethical Culture: A Significance Determinant of Ethical Behavior," mentioned Schein's (1992, p.12) definition of culture which is a pattern of shared foundational assumptions that a group learns as it solves its problems of external adaptation, and internal integration, that works well enough to be considered valid, and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. Ampofo et al (2004), further used Key's (1999) description of organizational ethical culture defined as the as beliefs about the ethics of an organization, which are shared by its members and may be logically conceptualized on a continuum bounded at one end by unethical companies and at the other, highly ethical companies. Moreover, the concepts of organizational ethical culture and ethical behavior have generated greater interest among researchers, educators, practitioners, and the general public post-Enron, possibly, due to the catastrophic consequences of the corporate failures. Following the Associated Press (2002) report that the Texas State Employees Retirement Fund (TSERF) lost an estimated $63 million in Enron investments, the investing public does not need an analyst to see why business ethics is a "hot" topic in practice and education. Enron's bankruptcy filling has been portrayed as the result of accounting fraud and greed (Culp and Hanke, 2003). Further, the perceived role of accounting firms, such as Arthur Andersen in the corporate K

Behavioral Ethics in Organizations: A Review On behalf of: Southern Management Association

The importance of ethical behavior to an organization has never been more apparent, and in recent years researchers have generated a great deal of knowledge about the management of individual ethical behavior in organizations. We review this literature and attempt to provide a coherent portrait of the current state of the field. We discuss individual, group, and organizational influences and consider gaps in current knowledge and obstacles that limit our understanding. We conclude by offering directions for future research on behavioral ethics in organizations.

The Relationship between Ethical Culture and Unethical Behavior in Work Groups: Testing the Corporate Ethical Virtues Model

Erim Report Series Research in Management Erasmus Research Institute of Management, 2008

The Corporate Ethical Virtues Model, which is a model for measuring the ethical culture of organizations, has not been tested on its predictive validity. This study tests the relationship between this model and observed unethical behavior in work groups. The sample consists of 301 triads comprising a manager and two direct reports. The results show that six of the eight virtues are negatively related to observed unethical behavior. An important implication of this finding is that multiple corporate virtues are required to reduce unethical behavior in work groups.

The Challenges in Implementation of Ethics in Organization

International Journal of Academic Research in Business and Social Sciences, 2020

This paper is report of study that looks at the challenges in implementation of ethics in organization. The study reveals that organization become inefficient and ineffective as a result of lack in ethics practices. Leader plays crucial sources as ethical guidance to the employee as well as show the ethical responsibility for a moral development in organization. However, leaders and human resources department did not see ethics as a crucial part in working environment. Besides that, the ethics training program also important platform to provide knowledge and education to employee and leader regarding the ethical issues and solution related with the issues. Based on previous study, this paper also identify several componence for ethics program in the organization. The conclusions drawn that leaders has not yet been professionalized. The paper then discuss what are challenges faced by the organization nowadays in order for them to change and improve in future.

Ethics in organizations: A framework for theory and research

Journal of Business Ethics, 1994

In a climate of increasing interest and activity within the field of business ethics, as yet there exists no coherent conceptual framework for organizational theory and research. From a review of current thinking and previous writings a framework of concepts is suggested to help set an agenda for empirical research. The elements of this are, first, a taxonomy of “ethical domains”: the foci of organizations' and their agents' ethical concerns and conduct. Second, it is considered how “ethical functioning” might be analysed in terms of causal relationships between expressive forms, voluntary action and instituted forms. Third is discussed “ethical process”, the means by which ethical awareness is aroused. Fourth and last, the paper examines how normative evaluations might apply to the “ethical condition” of organizations and their agents, meaning change or stability in reputation and integrity. At each stage of the argument possible objectives for research are developed.

Ethical Behaviour in Organizations: A Literature Review

Quest Journals Journal of Research in Business and Management, 2016

This article review literature on ethical behavior to identify factors and variables which influences ethical behavior. This study is divided into theoretical and empirical studies and its relevance to theory. Identified variables are divided into individual factors, organizational and external factors. Variables under these factors are locus of control, achievement orientation, Machiavellianism as individual variable. Ethics training, code of ethics and rewarding system are organizational variable. Competition, influence of stakeholders and regulation system are external variables. These studies aim to find out the development of trends from seventies to two thousands fifteen in the studies of ethical behavior. This review provides insights to the future researchers who want to research related to ethical behavior. This review also helps professionals to understand ethical behavior in context of their organization to manage ethical aspects in to their organizations in a better way.

Managing organizational ethics: How ethics becomes pervasive within organizations

Business Horizons, 2021

This study analyzes real experiences of culture management to better understand how ethics permeates organizations. In addition to reviewing the literature, we used an action-research methodology and conducted semistructured interviews in Spain and in the U.S. to approach the complexity and challenges of fostering a culture in which ethical considerations are a regular part of business discussions and decision making. The consistency of findings suggests patterns of organizational conditions, cultural elements, and opportunities that influence the management of organizational cultures centered on core ethical values. The ethical competencies of leaders and of the workforce also emerged as key factors. We identify three conditionsda sense of responsibility to society, conditions for ethical deliberation, and respect for moral autonomydcoupled with a diverse set of cultural elements that cause ethics to take root in culture when the opportunity arises. Leaders can use this knowledge of the mechanisms by which organizational factors influence ethical pervasiveness to better manage organizational ethics.