In this study, we propose and test a model of the effects of organizational ethical culture and organizational architecture on the perceived unethical behavior of employees towards customers. This study also examines the relationship between organizational ethical culture and moral acceptability judgment, hypothesizing that moral acceptability judgment is an important stage in the ethical decision-making process. Based on a field study in one of the largest financial institutions in Europe, we found that organizational ethical culture was significantly related to the (...) perceived frequency of unethical behavior towards customers and to the moral acceptability judgment of this type of unethical behavior. No support was found for the claim that features of organizational architecture are associated with the perceived frequency of unethical behavior towards customers. This is the first study to document the differential effects of organizational architecture and organizational ethical culture on perceived unethical behavior of employees towards customers, in wholesale banking. Implications for managers and future research are discussed. (shrink)

There is considerable variability across people in their punitive responses to employee offenses in the workplace. We attempt to explain this variability by positing a novel antecedent of punishment: moral recognition. We find consistent evidence that identifying moral considerations and implications for workplace offenses predicts punitive responses toward employees who commit those offenses. Drawing on functional theoretical accounts of morality and punishment, we posit that people are motivated to punish others to the extent that they believe a moral offense has (...) been committed, because much of what it means to commit a moral offense (as opposed to a non-moral offense) is to act in a way that prevents, or inhibits, cooperative behavior to achieve social goals. Punishment can discourage group members from committing those offenses in the future, thereby regulating behavior in a way that facilitates cooperation and social cohesion. We offer correlational and causal evidence that the link between moral recognition and punishment is explained, in part, by participants’ beliefs that committing these offenses prevents cooperative behavior to achieve organization-related goals. (shrink)

We investigated the significance of an economic crisis for organizations’ ethical behavior, employees’ unethical behavior, and association. To capture the effect of the “2008’ World economic crisis,” we compared the behaviors of organizations and employees’ unethical behavior during a crisis with their behavior in more favorable circumstances before and after the crisis. We used structural equation modeling to analyze answers collected from 2024 employees in Slovenian organizations between 2006 and 2016. The results showed significant growth of organizational engagement in ethical (...) behavior, despite the crisis in the middle of the observed period. The employees’ unethical behavior was significantly less acceptable in crisis compared to before the crisis, while after the crisis, its acceptability increased again, despite not significant. The aggregate sample revealed a significantly negative influence of employee’s unethical behavior on organizations’ ethical behavior that was not significantly different across the considered periods. The research suggests the need to manage the organization’s ethical behavior in times of economic downturn, like in the present COVID 19. Additionally, managers need to devote more attention to prevent employees’ unethical behavior and its influence on organizations’ ethical behavior. (shrink)

Research shows that the effects of creative personality on moral disengagement and unethical behaviors are mixed. To reconcile the disparate findings, we draw on interdependence theory to unravel how and when creative personality is related to moral disengagement through countervailing pathways. Specifically, we propose competitive motivation and prosocial motivation as two distinct mechanisms that explain the double-edged effects of creative personality on moral disengagement and subsequent unethical behaviors. Furthermore, we hypothesize a cross-level moderating effect of competitive climate on the relationships (...) between competitive/prosocial motivation and moral disengagement. Results based on three-wave data from 753 employees showed that creative personality increased moral disengagement and subsequent unethical behaviors through competitive motivation but decreased moral disengagement and subsequent unethical behaviors through prosocial motivation. In addition, competitive climate weakened the negative relationship between prosocial motivation and moral disengagement and the negative indirect relationship between creative personality and unethical behaviors via prosocial motivation and moral disengagement. (shrink)

We seek to understand how third-party observers respond to allegations of sexual transgressions, whether their responses vary and if so why, how they determine perpetrator sanctions, who is more forgiving of them, and what is the psychological mechanism underlying this preference. We draw on one dimension of Hofstede's theory of cultural orientations—power distance belief, and one dimension of Haidt's work on moral reasoning—moral decoupling. Results from three studies on recent real-life cases—those pertaining to Harvey Weinstein, Brett Kavanaugh, and Peter Martins—reveal (...) interesting, consistent, and dramatic findings pertaining to these research questions. Specifically, compared to observers who endorse a low power distance belief, high PDB observers selectively suspend judgments of culpability and express higher evaluations of the alleged perpetrators, are significantly more forgiving of them, convey a lower preference for naming and shaming them, and consider the alleged transgressions as less serious. These outcomes are predicated on the psychological mechanism of moral decoupling. Both high and low PDB respondents decouple the perpetrators’ competence and morality. However, high PDB observers gauge the actions of the perpetrators by emphasizing competence, while low PDB observers gauge their actions by emphasizing morality. (shrink)

In this study, we propose and test a model of the effects of organizational ethical culture and organizational architecture on the perceived unethical behavior of employees towards customers. This study also examines the relationship between organizational ethical culture and moral acceptability judgment, hypothesizing that moral acceptability judgment is an important stage in the ethical decision-making process. Based on a field study in one of the largest financial institutions in Europe, we found that organizational ethical culture was significantly related to the (...) perceived frequency of unethical behavior towards customers and to the moral acceptability judgment of this type of unethical behavior. No support was found for the claim that features of organizational architecture are associated with the perceived frequency of unethical behavior towards customers. This is the first study to document the differential effects of organizational architecture and organizational ethical culture on perceived unethical behavior of employees towards customers, in wholesale banking. Implications for managers and future research are discussed. (shrink)