This study participates in the discussion of the ethical culture of organizations by deepening the knowledge and understanding of the meaning of organizational ethical virtues in organizational innovativeness. The aim in this study was to explore how an organization’s ethical culture and, more specifically, organization’s ethical virtues support organizational innovativeness. The ethical culture of an organization is defined as the virtuousness of an organization. Organizational innovativeness is conceptualized as an organization’s behavioral propensity to produce innovative products and services. The empirical (...) data consisted of a total of 39 interviews from specialist organizations. Qualitative content analysis was used to analyze the data. The findings indicate that the organizational ethical virtues of feasibility, discussability, supportability, and congruency of management are those that support organizational innovativeness. The findings also show which specific elements of these virtues and related organizational practices are important to innovativeness. In addition, this study showed that the features of organizational innovativeness are not necessarily dichotomous but rather follow the ideas of virtues and are versatile in nature. (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)

Aristotle's doctrine of the mean states that a virtue is the mean state between two vices: a deficient and an excessive one. The Corporate Ethical Virtues Model defines the mean and the corresponding deficient vice for each of its seven virtues. This paper defines for each of these virtues the corresponding excessive vice and explores why organizations characterized by these excessive vices increase the likelihood that their employees will behave unethically. The excessive vices are patronization, pompousness, lavishness, zealotry, overexposure, talkativeness, (...) and oppressiveness. (shrink)

The aim of the present longitudinal study was to quantitatively examine whether an ethical organizational culture predicts turnover among managers. To complement the quantitative results, a further important aim was to examine the self-reported reasons behind manager turnover, and the associations of ethical organizational culture with these reasons. The participants were Finnish managers working in technical and commercial fields. Logistic regression analyses indicated that, of the eight virtues investigated, congruency of supervisors, congruency of senior management, discussability, and sanctionability were negatively (...) related to manager turnover. The results also revealed that the turnover group is not homogeneous, and that there are several different reasons for leaving. The reasons given for turnover were grouped into five different categories: lay-off, career challenges, dissatisfaction with the job or organization, organizational change, and decreased well-being/motivation. ANCOVA analyses showed that those managers who stayed in their organization perceived their ethical culture to be stronger than those in turnover groups, and especially compared to groups 3 and 5. The results acquired through different methods complemented and confirmed each other, showing that by nurturing ethical virtues an organization can decrease job changes and encourage managers and supervisors to want to remain in their organization. (shrink)

The main aim of the present study was to examine whether an ethical organizational culture is associated with sickness absence in a Finnish public sector organization at both the individual and work unit levels. The underlying assumption was that employees working for organizations that are characterized by a strong ethical organizational culture report less sickness absence. The sample consisted of 2192 employees from one public sector city organization that included 246 different work units. Ethical organizational culture was measured with the (...) Corporate Ethical Virtues scale covering eight sub-dimensions. Sickness absence was inquired by asking the participants to report how many days they had been absent from work because of their own sickness over the past year. Multilevel structural equation modelling showed that, at the individual level, perceptions of a strong ethical organizational culture were associated with less sickness absences after controlling for the background factors. This link was not found at the work-unit level. The findings indicate that an ethical organizational culture plays a significant role in enhancing employee well-being measured as sickness absence. It seems that especially supervisor’s ethical role modeling and possibilities to discuss about ethical issues are important factors in preventing sickness absence in the organizations. (shrink)

So far, the field of business ethics lacks validated measures for assessing virtues at the organizational level. The aim of this study is to investigate the measurement invariance of a shortened Corporate Ethical Virtues scale. In this manner, we contribute to validating an instrument that is both psychometrically sound and efficient to use. We conducted two survey studies of two independent groups (managers and school psychologists). Confirmatory factor analysis supported the eight‐factor model of the scale, and we found it to (...) be invariant in two different occupational groups. The managers gave higher appraisals of ethical culture than the psychologists did in seven out of the eight dimensions. We found that despite the contextual differences, the shortened scale measures the eight dimensions of organizational ethical virtues, as intended. Thus, the use of this more compact scale can be recommended for future studies, which will hopefully stimulate more research on ethical culture in various work contexts. (shrink)

The aim of this longitudinal study was to investigate the temporal dynamics of ethical organisational culture and how it associates with well-being at work when potential changes in ethical culture are measured over an extended period of 6 years. We used a person-centred study design, which allowed us to detect both typical and atypical patterns of ethical culture stability as well as change among a sample of leaders. Based on latent profile analysis and hierarchical linear modelling we found longitudinal, concurrent (...) relations and cumulative gain and loss cycles between different ethical culture patterns and leaders’ well-being. Leaders in the strongest ethical culture pattern experienced the highest level of work engagement and a decreasing level of ethical dilemmas and stress. Leaders who gave the lowest ratings on ethical culture which also decreased over time reported the highest level of ethical dilemmas, stress, and burnout. They also showed a continuous increase in these negative outcomes over time. Thus, ethical culture has significant cumulative effects on well-being, and these longitudinal effects can be both negative and positive, depending on the experienced strength of the culture’s ethicality. (shrink)

Examination of the application of virtue ethics to business has only recently started to grapple with the measurement of virtue frameworks in a practical context. This paper furthers this agenda by measuring the impact of virtue at the level of the organisation and examining the extent to which organisational virtue impacts on moral attentiveness and the perceived role of ethics and social responsibility in creating organisational effectiveness. It is argued that people who operate in more virtuous organisational contexts will be (...) expected to be more attentive to ethical issues and in turn perceive a greater role for ethics and social responsibility in business. Analysis of results based on a sample of 137 HR professionals shows that where people report that their organisation provides meaningful work, they are more likely to display reflective MA and the belief that ethics and social responsibility are compatible with business objectives, suggesting that organisations who are interested in promoting an ethical culture should focus on their work structures and practices. More generally, OV is shown to have a more complex relationship with PRESOR than hypothesised pointing towards a more nuanced view of OV. The paper examines the implications of the results for organisations and research. (shrink)

The convergence of India’s rich cultural and religious heritage with its rapidly transforming economy provides a unique opportunity to understand how senior executives navigate the demands of the business environment within the context of their religious convictions. Forty senior executives with varying religious backgrounds and global responsibilities within Indian multinational corporations participated in this study. Drawing from virtue ethics theory and using systematic content analysis, several themes emerged for ethical virtues. The analysis illustrates how these deeply seated ethical virtues helped (...) to form and refine these executives’ ethical mindsets via guiding principles such as an ethical culture, environment, molding, education, commitment and leadership. In turn, these ethical mindsets influenced the executives’ ethical decision-making processes. We find that these executives’ ethical virtues and mindsets are inspired by their religious backgrounds. In summary, a very complex mental tug-of-war appears to take place as these executives rationalize and negotiate unethical circumstances while being cognizant of personal religious beliefs. We contend that in a pluralistic multi-faith society such as India, it is critical for corporations to align the virtues of its senior executives with those of the corporation so that virtues are applied consistently when dealing with various stakeholders. The findings present several theoretical and practical implications, which are discussed. (shrink)