Previous studies imply that management philosophy has become an essential ethical foundation for a number of mission-driven organizations in Japan. This study examines how management philosophy might be influential to individuals with a sample of 1019 Japanese employees. The article develops a framework for analyzing the adoption of management philosophy and individual attitudinal and behavioral outcomes. Factor analysis shows that adoption of the management philosophy can be categorized into two dimensions, identification with management philosophy, and sensemaking of that management philosophy. (...) Regression results indicate that while philosophy-oriented practice might affect individual adoption of management philosophy, the adoption of the management philosophy is positively related to both job involvement and organizational citizenship behavior. Furthermore, the results of structural equation analysis indicate that both dimensions of the adoption of the management philosophy might mediate the relationship between organizational practice and individual outcomes. The research not only increases our understandings into the effectiveness of the management philosophy as an essential ethical foundation, but also provides intriguing implication regarding the organizational measures required to enhance the mission-driven culture. (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)

This research aims to fill a major gap in the relevant literature on small businesses in developing countries, specifically concerning the development of models to better explain economic and environmental performance as a result of environmental compliance, thus moving toward an explanation of the sustainable behavior of these businesses. Data from 186 pottery craft businesses located in three Mexican states (Oaxaca, Puebla and Tlaxcala) reveal that environmental compliance significantly influences economic and environmental performance, with the mediating role of environmental innovation, (...) confirming the Porter hypothesis in the context of small businesses in an emerging economy. Environmental compliance is an important factor in improving the economic and environmental performance of small businesses in emerging economies. (shrink)

Media increasingly accuse firms of exploiting suppliers, and these allegations often result in lurid headlines that threaten the reputations and therefore business successes of these firms. Neither has the phenomenon of supplier exploitation been investigated from a rigorous, ethical standpoint, nor have answers been provided regarding why some firms pursue exploitative approaches. By systemically contrasting economic liberalism and just prices as two divergent perspectives on supplier exploitation, we introduce a distinction of common business practice and unethical supplier exploitation. Since supplier (...) exploitation is based on power, we elucidate several levels of power as antecedents and investigate the role of ethical climate as a moderator. This study extends Victor and Cullen’s ethical climate matrix according to a supply chain dimension and is summarized in an integrated, conceptual model of five propositions for future theory testing. Results provide a frame of reference for executives and scholars, who can now delineate unethical exploitation and understand important antecedents of the phenomenon better. (shrink)

We build on limited research concerning the mediation processes associated with the relationship between ethical culture and employee outcomes. A multidimensional measure of ethical culture was examined for its relationship to overall Person-Organization (P–O) fit and employee response, using a sample of 436 employees from social economy and commercial banks in Spain. In line with previous research involving unidimensional measures, ethical culture was found to relate positively to employee job satisfaction, affective commitment, and intention to stay. New to the literature, (...) ethical culture was also found to be associated positively with employee willingness to recommend the organization to others. These effects were observed even when perceptions of P–O fit were controlled. Importantly, ethical culture was also positively related to overall P–O fit, which in turn, partially mediated the relationship between ethical culture and employee outcomes. Our findings add to studies that focus on the importance of the degree of ethical congruence between the individual employee and the organization. They suggest that ethical culture, with its expected impact on virtuousness and emotional well-being, will positively influence outcomes independently of the degree to which there is a match between employee and organizational values. (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)

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)

This paper aims to explore challenges of the Aristotelian friendship (philia) in multicultural society and in the specific industrial and organizational contexts. Data was collected from forty-eight participant interviews with managers and employees of four mining companies in Indonesia with twelve informants from each company, both management and employees. The paper found that the virtue of friendship within the mining companies has several drawbacks when an imbalance of power exists between managers and employees. This paper suggests that to understand virtue (...) of friendship in a multi-ethnic and multicultural context, it is essential to ground the conceptual framework in both Aristotle’s views and specific cultural sensitivities, as only then can the full story be grasped. Thus, this paper contributes to bring insights into an under-explored, complex and, at times, paradoxical context, explaining that Aristotelian virtue ethics encounters cultural aspects and a specific context of human relationships which make challenges for business organizations to be virtuous. More importantly, this paper also paves the path towards further discussions and studies on virtue ethics to set a conceptual framework in both virtue ethics and specific cultural sensitivities for business ethics. Practically, this paper provides a valuable insight for business organizations especially business leaders, human resources (HR) and corporate social responsibility (CSR) practitioners, as it offers practice on how to avoid moral lapses in their day-to-day working relationships inside the organization as well as their relationships with the community. (shrink)

Faced with the disenchantment and disengagement expressed by their employees, business leaders are considering ways of incorporating more benevolence into managerial practices. Nevertheless, ‘benevolence’—care and concern for the well-being of others—has not yet been studied in an organizational profit-focused context. In this paper, we seek to investigate the emergence and practice of benevolence with an eye on profit and performance. We begin by investigating the main ethical approaches to benevolence—virtue ethical, utilitarian, and deontological. Then, based on an empirical study, we (...) identify two distinct types of benevolence. On the one hand, formal benevolence is defined and monitored by the organizational processes and actions of leaders; it is understood by all concerned to be bounded by organizational performance. On the other hand, informal benevolence exists at the margin of these processes, in interpersonal and discretionary relationships. We set out to analyze these two types of benevolence and the complementarity between them. We also discuss to what extent they can be managed, teasing out some implications for managers and some potential avenues for further research. (shrink)

AbstractEnduring unethical behavior in trading has generated much research interest, and scholars disagree on the reasons for this situation. According to MacIntyre (2015), this has to do with the personal traits of traders, whereas Rocchi and Thunder (2019) argue this is due to permissive work environment that can potentially be changed to favoring ethical trading. We contribute to this debate by exploring how interactions between organizational culture and management control systems (MCSs) may affect the enduring unethical behaviors of traders. We (...) conceptualize this with the concepts of organized hypocrisy (Brunsson 1986, 1989, 1993) and decoupling (Meyer and Rowan 1977). An in-depth case study of fraud (Jerome Kerviel at Societe Generale), informs the empirical inquiry. We develop the concept of organized decoupling to characterize how the MCSs are articulated with the organizational culture favoring unethical behavior, while being used as a ‘safety mechanism’ to manage the legal and reputational risk of the bank. The analysis highlights three key features of the organized decoupling of MCS: physical distance, technical distance and social distance. The study contribution lies in showing that decoupling is not only emergent but might be intended and therefore organized. The findings also raise doubts on the role of MCSs in monitoring trading activities as presented by investment banking institutions and regulators, suggesting more organized hypocrisy, and raising significant concerns regarding the creation of tolerable work environment welcoming ethical behaviors in the investment banking sector. (shrink)

This article reports the results of research to develop a survey instrument and its use to validate an ethical business culture construct (CEBC Model). The reported three-stage quantitative study builds on our previous qualitative work, aimed at identifying dimensions of ethical business cultures. The research resulted in a parsimonious construct, covering five dimensions of ethical business cultures, and a ten-question instrument, measuring this construct. In this article, we report results of exploratory and confirmatory factor analyses and convergent construct validity testing, (...) discuss the potential applications of the construct and instrument in assessment and development of ethical business cultures, and provide recommendations for industry practitioners and for further research. (shrink)

This article extends the knowledge on whistleblowing by studying the impact of two individual antecedents and two situational factors (ethical leadership...

We propose a liminality-based analysis of the process of ethical leadership/followership in organizations. A liminal view presents ethical leadership as a process taking place in organizational contexts that are often characterized by high levels of ambiguity, which render the usual rules and preferences dubious or inadequate. In these relational spaces, involving leaders, followers, and their context, old frames may be questioned and new ones introduced in an emergent way, through subtle processes whose evolution and implications may not be easy to (...) grasp even by those participating in them. (shrink)

Explanations of organizational misconduct frequently point to declining firm performance and/or the actions of unethical or suspect leaders. Evidence that high-performing firms act illegally or unethically is an enigma. The purpose of this paper is to address these issues by exploring organizational performance using aspirational rather than absolute measures and examining the effect that suspect leader succession has on the increased probability of organizational misconduct. Our analysis of 128 collegiate football programs competing between 1953 and 2016 reveals an increased likelihood (...) of misconduct among organizations with strong as well as weak performance, most notably in comparison to competitive peer programs. Social- and self-referenced aspirations produced distinct relationships between relative performance and misconduct. The impact of leader succession was conditional. The data revealed an increased likelihood of infraction episodes with the appointment of suspect leaders. In some instances, however, a reduced likelihood of misconduct accompanied succession events involving untainted leaders. (shrink)

We propose a liminality-based analysis of the process of ethical leadership/followership in organizations. A liminal view presents ethical leadership as a process taking place in organizational contexts that are often characterized by high levels of ambiguity, which render the usual rules and preferences dubious or inadequate. In these relational spaces, involving leaders, followers, and their context, old frames may be questioned and new ones introduced in an emergent way, through subtle processes whose evolution and implications may not be easy to (...) grasp even by those participating in them. (shrink)

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)

Humility is increasingly recognized as an essential attribute for individuals at top management levels to build successful organizations. However, research on CEO humility has focused on how humble chief executive officers (CEOs) shape collective perceptions through their interactions and behaviors with other organizational members while overlooking CEOs’ critical role in making strategic decisions. We address this unexplored aspect of CEO humility by proposing that humble CEOs influence decision-making decentralization at the top management team (TMT) and subsequently promote an organizational ethical (...) culture. Using a sample of CEOs and TMT members from 120 small- and medium-sized enterprises, we find strong support for our hypotheses. We discuss important implications for research on CEO humility and strategic leadership. (shrink)

This case study details how and why integrating storytelling, empathy, and inclusive practice shifted QSuper, a large Australian finance organisation, from minimal awareness to moral awareness then moral capability in the delivery of services to Indigenous customers. During the Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry, QSuper were recognised for their exemplary service with Indigenous customers (Hayne, Interim report: Royal commission into misconduct in the banking, superannuation and financial services industry, Volume 1. Commonwealth of Australia, (...) 2018; _Transcript of Proceedings, 13 August_, Commonwealth of Australia, 2018). This position was in stark contrast to the inaccessible service offerings of other financial organisations where some used predatory practices to sell unethical financial products to Indigenous Australians (Hayne, Interim report: Royal commission into misconduct in the banking, superannuation and financial services industry, Volume 1. Commonwealth of Australia, 2018; Hayne, Final report: Royal commission into misconduct in the banking, superannuation and financial services industry, Volume 1. Commonwealth of Australia, 2019a). Storytelling garned from visiting customers in remote communities and other meaningful activities involving inclusive practice to facilitate ethical decision-making in finance is different to standard functionalist finance approaches (Schinckus, Int Rev Financ Anal 40:103–106, 2015). Two empathetic questions asked within QSuper complementing the storytelling, were: “What is the right thing to do by the customer?” and “How would I feel if this were my mother?” Exploration into the lived reality of moral capacity is important based on the Commission finding many of the 490,000 finance staff do not know how to provide ethical services to vulnerable customers, in particular remote Indigenous customers (Australian Bureau of Statistics. Labour force, Australia, detailed. ABS. Retrieved from https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia-detailed /latest-release, 2021; Hayne, Final report: Royal commission into misconduct in the banking, superannuation and financial services industry, Volume 1. Commonwealth of Australia, 2019a). Furthermore, there is minimal literature on the role of Indigenous storytelling to heighten moral awareness in the finance industry which was found to lead to better ethical outcomes. (shrink)

Using a sample of multinational firms in Germany, we develop and empirically examine a model to test the effects of ethical climate and its antecedents on purchasing social responsibility (PSR). Our results show different effects of benevolence dimensions of ethical climate on PSR: employee-focused climate has no effect, but community-focused climate is a significant driver of PSR. The results also show that top management ethical norms and code of conduct implementation impact PSR directly as well as indirectly through ethical climate.

In the midst of greed, corruption, the economic crash and the general disillusionment of business, current conceptions of leadership, organizational values, and authenticity are being questioned. In this article, we fill a prior research gap by directly exploring the intersection of these three concepts. We begin by delving into the relationship between individual values and organizational values. This analysis reveals that the “value fit” approach to creating authenticity is limited, and also indicates that a deeper exploration of the nature of (...) values and the role of leadership is necessary. More specifically, we propose that organizational values should be viewed as an opportunity for ongoing conversations about who we are and how we connect. Through this type of dialogue which we define as “value through conversation”, we can create what we call poetic organizations. A typology of four interconnected values each of which forms a foundation for the critical questioning and inquiry that might be found in poetic organizations is developed. We suggest that this conceptualization offers a new and dynamic approach for thinking about the relationships between leadership, values, and authenticity and has important implications for both research and practice. (shrink)

This study focuses on comparison of perceptions of ethical business cultures in large business organizations from four largest emerging economies, commonly referred to as the BRICs (Brazil, Russia, India, and China), and from the US. The data were collected from more than 13,000 managers and employees of business organizations in five countries. The study found significant differences among BRIC countries, with respondents from India and Brazil providing more favorable assessments of ethical cultures of their organizations than respondents from China and (...) Russia. Overall, highest mean scores were provided by respondents from India, the US, and Brazil. There were significant similarities in ratings between the US and Brazil. (shrink)

A qualitative study was conducted to examine the philosophy of technology of K-12 technology leaders, and explore the influence of their thinking on technology decision making. The research design aligned with CORBIN and STRAUSS grounded theory methods, and I proceeded from a research paradigm of critical realism. The subjects were school technology directors and instructional technology specialists, and data collection consisted of interviews and a written questionnaire. Data analysis involved the use of grounded theory methods including memo writing, open and (...) axial coding, constant comparison, the use of purposive and theoretical sampling, and theoretical saturation of categories. Three broad philosophy of technology views were widely held by participants: an instrumental view of technology, technological optimism, and a technological determinist perspective that saw technological change as inevitable. Technology leaders were guided by two main approaches to technology decision making, represented by the categories Educational goals and curriculum should drive technology, and Keep up with Technology (or be left behind). The core category and central phenomenon that emerged was that technology leaders approached technology leadership by placing greater emphasis on keeping up with technology, being influenced by an ideological orientation to technological change, and being concerned about preparing students for a technological future. (shrink)

Scholars have emphasized that decisions about technology can be influenced by philosophy of technology assumptions, and have argued for research that critically questions technological determinist assumptions. Empirical studies of technology management in fields other than K-12 education provided evidence that philosophy of technology assumptions, including technological determinism, can influence the practice of technology leadership. A qualitative study was conducted to a) examine what philosophy of technology assumptions are present in the thinking of K-12 technology leaders, b) investigate how the assumptions (...) may influence technology decision making, and c) explore whether technological determinist assumptions are present. The research design aligned with Corbin and Strauss qualitative data analysis, and employed constant comparative analysis, theoretical sampling, and theoretical saturation of categories. Subjects involved 31 technology directors and instructional technology specialists from Virginia school districts, and data collection involved interviews following a semi-structured protocol, and a written questionnaire with open-ended questions. The study found that three broad philosophy of technology views were widely held by participants, including an instrumental view of technology, technological optimism, and a technological determinist perspective that sees technological change as inevitable. The core category and central phenomenon that emerged was that technology leaders approach technology leadership through a practice of Keep up with technology (or be left behind). The core category had two main properties that are in conflict with each other, pressure to keep up with technology, and the resistance to technological change they encounter in schools. The study found that technology leaders are guided by two main approaches to technology decision making, represented by the categories Educational goals and curriculum should drive technology, and Keep up with Technology (or be left behind). As leaders deal with their perceived experience of the inevitability of technological change, and their concern for preparing students for a technological future, the core category Keep up with technology (or be left behind) is given the greater weight in technology decision making. The researcher recommends that similar qualitative studies be conducted involving technology leaders outside Virginia, and with other types of educators. It is also recommended that data from this or other qualitative studies be used to help develop and validate a quantitative instrument to measure philosophy of technology assumptions, for use in quantitative studies. (shrink)