Organizational ethics education and training: a review of best practices and their application

Insuring that ethical action remains a vibrant aspect of an organization's climate and culture is an ongoing challenge for those responsible for training and development. To better understand what best practices are being utilized today, eight organizations in the Silicon Valley region of the United States were studied. Findings suggest that ethics training is particularly intensive when an employee is first hired, when rules, regulations and corporate values are shared during the indoctrination period. Training continues, but is often limited to online activities. Face‐to‐face interaction, necessary for learning and development, is usually reserved for specialized functions and senior level managers. Most firms emphasize a compliance‐based approach, with little attention directed toward developing moral competencies over time. In addition, assessment tools to measure ethical competencies are rarely used as performance criteria. Findings from this study reveal specific trends, which can inform, guide and improve practitioners' efforts to further develop ethical decision‐making and action within their organizations.     

The Discourse of Control

I challenge the appropriateness of the discourse of managerial control of employees in four ways. First, I question arguments which suggest that employees are always subject to organizational control. Second, I contrast workplace conditions which support employee self-determination and autonomy with conditions which permit control of employees. Third, I provide an ethical assessment of the normative use of control talk and fourth, I suggest an alternative discourse, a discourse of accountability which appropriately highlights the reciprocity necessary to build ethical organizations.     

Innovative ethics officers as drivers of effective ethics programs: An empirical study in the Netherlands

Ethical misconduct and violations seriously harm individuals and organizations and lead to massive fines or the dismissal of employees and CEOs. Many firms have implemented ethics programs to prevent unethical behavior but these are often ineffective and take a traditional approach. Ethics officers are often responsible for running and developing ethics programs, in collaboration with other departments. They can, therefore, play a key role in improving ethics program effectiveness. We postulate that ethics officers need to adopt a more innovative approach in order to achieve ethical behavior among employees and managers, and that such an innovative approach requires certain personality traits. This study investigates how ethics officers’ personality traits and innovative work behaviors relate to the effectiveness of ethics programs and normative ethical behavior through an online questionnaire conducted among 110 ethics officers in large Dutch organizations. Structural equations modeling showed that innovative work behavior mediated the relationship between ethics officers’ openness to experience and ethics program effectiveness which, in turn, is related to more normative ethical behavior. Future research must examine the (partial) mediation effects, including other characteristics of ethics officers in relation to ethics program effectiveness and ethical behaviors at work, and replicate the study multi‐nationally.     

Excellence in Canada: Healthy Organizations – Achieve Results by Acting Responsibly

There is much public focus in North America today on issues of corporate governance and ethics due mainly to the malpractice of several high profile corporate leaders and the negative impact of this on their corporation's stakeholders, employees and communities. This has caused a crisis of trust in the public and lead to much discussion on ways to prevent such unethical behavior by adopting new approaches through legislation and the structure of corporations. This article is not about introducing a new approach to corporate ethics and governance as there is much change already taking place. The National Quality Institute (NQI) in Canada offers a demonstrated and proven way, through the application of the Excellence Frameworks, of providing for good corporate guidance and ethical leadership practices. Organizations, which adopt a strategic focus on Excellence, attain great results and become healthy organizations, as their leaders understand the dynamic relationship and the balance that exists between employees, customers, and stakeholders. These organizations build trust by acting responsibly. NQI works with many organizations in Canada that have a strategic leadership focus on organizational excellence utilizing the criteria in the NQI Canadian Excellence Frameworks for Quality and for Healthy Workplace. Organizations that take an integrated approach to Excellence also perform well in such areas as corporate social responsibility, employee health and customer satisfaction. This article has specific references to three organizations that have achieved Canada's prime recognition the Canada Awards for Excellence (CAE).     

Enhancing frontline employee support during a product-harm crisis: Evidence and strategic managerial implications for firms

Product-harm crises can negatively affect a firm's corporate image, reputation, and credibility. This research investigates antecedents and factors that can impact the extent to which frontline employees will be supportive of their organization when the firm faces such a crisis. Leveraging social exchange theory and its focus on reciprocal exchanges, we theorize and test processes using regression models, which shed light on how managers can solicit employee support during crises situations by providing the frontline employees with ethical and supportive working conditions. To offer convergent validity across multiple methodologies, we also test the influence of experimental effects of the relative severity of a crisis and whether a firm was quick or slow in its response on frontline employee support. Furthermore, our research demonstrates that the firm's strengths in corporate social responsibility, the employees' organizational citizenship behavior, and employee organizational identification serially mediate the supportive relationship, which provides a unique contribution to the marketing literature. Finally, we provide managerial implications to further enhance frontline employee support.     

Organizational characteristics and HRM policies on rights: Exploring the patterns of connections

The protection of employee rights in the workplace is one of the fundamental ethical questions facing organizations today. Organizations differ in the extent to which they protect the rights of both employees and themselves as employers, yet little research has examined the types of organizations that have rights protection policies. Instead of the classic normative approach to ethical issues, this study took a contextual approach to the management of rights in the workplace through human resource policies. Associations were found between the organizational characteristics of size, industry, unionization, business condition, and the existence of employee and employer rights policies. Additional analyses revealed underlying dimensions in right policies and the relationship of organizational characteristics to these aspects of rights management were examined. The results are discussed in terms of understanding human resource rights management within an organizational context.Catherine E. Schwoerer is an Assistant Professor in the School of Business at the University of Kansas. Her research interests include work place rights and responsibilities, training and development, self-efficacy, and aging and work.Douglas R. May is an Assistant Professor in the Department of Management at the University of Nebraska. His research interests include social issues management and the impact of the physical environment on employees' attitudes and health.Benson Rosen is Hanes Professor of Management and Chairman of Management Area at the Kenan-Flagler Business School, The University of North Carolina. He is a Fellow of the American Psychological Association and a member of the Academy of Management.     

You Support Diversity,But Are You Ethical? Examining the Interactive Effects of Diversity and Ethical Climate Perceptions on Turnover Intentions

Efforts to identify antecedents of employee turnover are likely to offer value to organizations through money saved on recruitment and new-hire training. The authors utilized the stakeholder perspective to corporate social responsibility to examine the effects of a perceived climate for ethics on the relationship between diversity climate and voluntary turnover intentions. Specifically, they examined how ethics climate (employees’ perceptions that their organization values and enforces ethically correct behavior) affected the diversity climate–turnover intentions relationship. Results indicated that ethics climate moderated the diversity climate–turnover intentions relationship. Turnover intentions were lowest among workers perceiving both a pro-diversity and highly ethical climate. These results reinforce the need to communicate both diversity values and ethical standards to employees.     

You Support Diversity,But Are You Ethical? Examining the Interactive Effects of Diversity and Ethical Climate Perceptions on Turnover Intentions

Efforts to identify antecedents of employee turnover are likely to offer value to organizations through money saved on recruitment and new-hire training. The authors utilized the stakeholder perspective to corporate social responsibility to examine the effects of a perceived climate for ethics on the relationship between diversity climate and voluntary turnover intentions. Specifically, they examined how ethics climate (employees’ perceptions that their organization values and enforces ethically correct behavior) affected the diversity climate–turnover intentions relationship. Results indicated that ethics climate moderated the diversity climate–turnover intentions relationship. Turnover intentions were lowest among workers perceiving both a pro-diversity and highly ethical climate. These results reinforce the need to communicate both diversity values and ethical standards to employees.     

Exploring the Process of Ethical Leadership: The Mediating Role of Employee Voice and Psychological Ownership

The study of ethical leadership has emerged as an important topic for understanding the effects of leadership in organizations. In a study with 845 working adults across multiple organizations, the relationships between ethical leadership with positive employee outcomes were examined. Results suggest that ethical leadership is related to both psychological well-being and job satisfaction in employees, but the processes are different. Employee voice mediated the relationship between ethical leadership and psychological well-being. Feelings of psychological ownership mediated the relationship between ethical leadership and job satisfaction. A discussion of theoretical and practical implications concludes the article.     

Instilling ethical behavior in organizations: A survey of Canadian companies

An organization's management control system can play an important role in influencing ethical behavior among employees. In this paper a theoretical framework of control is developed by linking various ethics related control mechanisms reported in the literature to the primary components of a management control system. In addition, the findings of a survey of the Financial Post's Top 1 000 Canadian industrial and service companies are reported. The survey investigated organizations' use of ethical codes of conduct, whistleblowing systems, ethics committees, judiciary boards, employee training in ethics, and ethics focused corporate governance and reward systems. The findings indicate that ethics related control mechanisms, particularly codes of conduct, are being used by a good number of organizations. However, closer analysis of the data suggests that many companies may only be paying lip service to the importance of promoting ethical behavior.R. Murray Lindsay is Professor of Accounting, Linda M. Lindsay is Assistant Professor of Accounting, and V. Bruce Irvine is Professor of Accounting at the College of Commerce, University of Saskatchewan. The authors share a teaching and research interest which focuses on examining the behavioral effects of management accounting and control systems on employee behaviour.     

Matching Ethical Work Climate to In-role and Extra-role Behaviors in a Collectivist Work Setting

This paper studies the relationship between organizational ethical climate and the forms of organizational citizenship behavior (OCB), including in-role and extra-role behaviors, and examines the mediating effect of employee loyalty. A sample of employees from a traditional Hong Kong-based company was used as a study group. The purpose of this study was to examine the causes and implications of how various ethical work climates affect employee performance. Based on a model proposed by Victor and Cullen, ethical climate is arranged from lower levels to higher levels. The results suggest that lower levels of ethical climate (instrumentality and independence), characterizing a weak relational contract between employee and employer, are associated with negative extra-role behavior. In contrast, higher levels of ethical climate (caring and law-and-code), symbolic of a strong relational contract at work, are associated with positive extra-role behavior. Moreover, normative commitment mediated a positive relationship between caring and identification with the company, whereas attitudinal loyalty mediated the negative relationship between independence and altruism. Implications for future research and practice are discussed. Dr. Alicia Leung is an Associate Professor of Management at the Hong Kong Baptist University. She received her Ph.D. degree in Management Learning from the University of Lancaster, U.K. She is active in researching and writing materials about Asian organizations and management issues. Her research interests include gender issues and feminist methodology, business ethics, corporate governance, and strategic management in the Asian context.     

The Employee as ‘Dish of the Day’: The Ethics of the Consuming/Consumed Self in Human Resource Management

This article examines the ethical implications of the growing integration of consumption into the heart of the employment relationship. Human resource management (HRM) practices increasingly draw upon the values and practices of consumption, constructing employees as the ??consumers?? of ??cafeteria-style?? benefits and development opportunities. However, at the same time employees are expected to market themselves as items to be consumed on a corporate menu. In relation to this simultaneous position of consumer/consumed, the employee is expected to actively engage in the commodification of themselves, performing an appropriate organizational identity as a necessary part of being a successful employee. This article argues that the relationship between HRM and the simultaneously consuming/consumed employee affects the conditions of possibility for ethical relations within organizational life. It is argued that the underlying ??ethos?? for the integration of consumption values into HRM practices encourages a self-reflecting, self-absorbed subject, drawing upon a narrow view of individualised autonomy and choice. Referring to Levinas?? perspective that the primary ethical relation is that of responsibility and openness to the Other, it is concluded that these HRM practices affect the possibility for ethical being.     

An analysis of corporate ethical code studies: “Where do we go from here?”

The dramatic increase in the number of corporate ethical codes over the past 20 years has been attributed to the Watergate scandal and the Foreign Corrupt Practices Act. Ethical codes differ somewhat from profesional codes and mission statements; yet the terms are frequently interchanged and often confused in the literature. Ethical code studies are reviewed in terms of how codes are communicated to employees and whether implications for violating codes are discussed. Most studies use content analysis to determine subjects in codes. Little information is available about how codes are communicated, whether they are accepted and used by employees, and whether they affect employee/corporate behavior. More research on ethical codes is needed to answer some of these questions.Betsy Stevens is a lecturer at the University of Michigan School of Business Administration. She received her Ph.D. in 1992 in organizational communication. Her research interests are corporate ethical codes and human resource issues such as employment-at-will.     

Corporate social responsibility and employee attitudes: The moderating role of employee age

This study examines the role of corporate social responsibility (CSR) on employee engagement and job satisfaction. Using 322 responses from employees of selected companies in Ghana, and employing hierarchical regression analysis, the study examines the direct impact of economic, legal, ethical and discretionary CSR practices on employee satisfaction and engagement in organisations. The study further explores the moderating role of employee age on the relationship between CSR and employee engagement and satisfaction. The results provide evidence that economic, legal, ethical and discretionary CSR practices influence higher employee engagement and satisfaction levels at work. However, the study finds no evidence of employee age moderating the association between each of the four CSR dimensions and employee job attitudes (engagement and satisfaction). These findings are insightful and provide a response to calls for research on these issues. The study contributes to the literature by demonstrating that ethical CSR practices strongly influence employees' satisfaction and engagement levels; legal and discretionary CSR activities also have an influence, though to a lesser extent; and the economic dimension of CSR activities has the least impact. The managerial, practical and further research implications of these findings are discussed.     

Corporate Entrepreneurs or Rogue Middle Managers? A Framework for Ethical Corporate Entrepreneurship

Corporate entrepreneurs -- described in the academic literature as those managers or employees who do not follow the status quo of their co-workers -- are depicted as visionaries who dream of taking the company in new directions. As a result, though, in overcoming internal obstacles to reaching their professional goals they can often walk a fine line between clever resourcefulness and outright rule breaking. A framework is presented as a guideline for middle managers and organizations seeking to impede unethical behaviors in the pursuit of entrepreneurial activity. This paper examines the barriers middle managers face in trying to be entrepreneurial in less supportive environments, the ethical consequences that can result, and a suggested assessment and training program for averting such dilemmas. We advise companies that embrace corporate entrepreneurship: (1) establish the needed flexibility, innovation, and employee initiative and risk-taking; (2) remove the barriers that the entrepreneurial middle manager may face to more closely align personal and organizational initiatives and reduce the need to behave unethically; and (3) include an ethical component to corporate training which will provide guidelines for instituting compliance and values components into the state-of-the-art corporate entrepreneurship programs.     

The United Nations Global Compact: Engaging Implicit and Explicit CSR for Global Governance

In the past few decades, a growth in ethical consumerism has led brands to increasingly develop conscientiousness and depict ethical image at a corporate level. However, most of the research studying business ethics in the field of corporate brand management is either conceptual or has been empirically conducted in relation to goods/products contexts. This is surprising because corporate brands are more relevant in services contexts, because of the distinct nature of services (i.e., intangible, heterogeneous, and inseparable) and the key role that employees have in the services sector (i.e., they can build or break the brand when interacting with customers). Accordingly, this article aims at empirically examining the effects of customer perceived ethicality in the context of corporate services brands. Based on data collected for eight service categories using a panel of 2179 customers, the hypothesized structural model is tested using path analysis. The results show that, in addition to a direct effect, customer perceived ethicality has a positive and indirect effect on customer loyalty, through the mediators of customer affective commitment and customer perceived quality. Further, employee empathy positively influences the impact of customer perceived ethicality on customer affective commitment, and customer loyalty positively impacts customer positive word-of-mouth. The first implication of these results is that corporate brand strategy needs to be aligned with human resources policies and practices if brands want to turn ethical strategies into employee behavior. Second, corporate brands should build more authentic communications grounded in their ethical beliefs and supported by evidence from actual employees.     

Examining the impetus for internal CSR Practices with digitalization strategy in the service industry during COVID-19 pandemic

The year 2020 began with a glimpse into the darkness with the onset of the worldwide COVID-19 pandemic. An invisible, threatening virus has forced many countries to practice restricted movement and impose lockdowns for the sake of their citizens’ safety and well-being. In response, many business organizations have implemented various remote-work arrangements. These arrangements have spurred the use of digitalization strategies and have landed many employees in the vulnerable virtual workplace. With employees facing all these uncertainties and vulnerabilities, their commitment to their workplace could come into question. At the same time, organizations facing tremendous challenges are searching for committed employees to navigate through this turbulent time. From a strategic management perspective, organizations could revisit their internal core competencies to prevail through internal corporate social responsibility (CSR) practices. Meanwhile, the rapidly growing pace of digitalization could further augment organizations’ survival and resilience. This research paper showcases the empirical outcomes of the promising match between internal CSR practices and digitalization strategy; and employees’ organizational commitment during times of crisis. The results reveal that internal CSR practices positively stimulate employees’ organizational commitment, while digitalization strategy intercedes in the nexus between internal CSR practices and affective commitment. The empirical outcomes shed light on business organizations and their ability to take a frugal approach in turbulent times.     

Ethical Leadership Evaluations After Moral Transgression: Social Distance Makes the Difference

In light of continuing corporate scandals, the study of ethical leadership remains an important area of research which helps to understand the antecedents and consequences of ethical behavior in organizations. The present study investigates how social distance influences ethical leadership evaluations, and how in turn ethical leadership evaluations affect leader–member exchange (LMX) after a leader’s moral transgression. Based on construal level theory, we propose that higher social distance will lead to more severe evaluations of immoral behavior and therefore entail lower ethical leadership ratings. More- over, we hypothesize that ethical leadership will positively affect LMX. Participants read a scenario describing a moral situation in which a leader, who was presented in either high or low social distance, behaves unethically toward an employee. We tested our predictions using a structural equation modeling approach. As expected, participants in the high social distance condition judged leaders more harshly (i.e., they gave lower ethical leadership ratings) than in the low social distance condition. Thus, social distance moderated the extent to which leaders are perceived as ethical leaders after moral transgression. Moreover, in accordance with our proposition, ethical leadership ratings had a positive influence on LMX.     

The Effects of Ethical Leadership and Ethical Climate on Employee Ethical Behavior in the International Port Context

This study empirically examined the effects of ethical leadership and ethical climate on employee ethical behavior in the international port context using survey data collected from 128 respondents who worked in Taiwan International Ports Corporation (TIPC) in Taiwan. Research hypotheses were formulated from the previous literature and tested using structural equation modeling. Results indicated that ethical leadership had a significant impact on ethical climate and the ethical behavior of TIPC employees. Ethical climate was found to be positively associated with employee ethical behavior. The theoretical and practical implications of the research findings are discussed.     

Corporate Ethical Values,Group Creativity,Job Satisfaction and Turnover Intention: The Impact of Work Context on Work Response

A corporate culture strengthened by ethical values and other positive business practices likely yields more favorable employee work responses. Thus, the purpose of this study was to assess the degree to which perceived corporate ethical values work in concert with group creativity to influence both job satisfaction and turnover intention. Using a self-report questionnaire, information was collected from 781 healthcare and administrative employees working at a multi-campus education-based healthcare organization. Additional survey data was collected from a comparative convenience sample of 127 sales and marketing employees working for a variety of firms operating in the south-central United States. The results indicated that group creativity and corporate ethical values were positively related, and that both variables were associated with increased job satisfaction. Conversely, corporate ethical values and job satisfaction were associated with decreased turnover intention. Sales managers should create work cultures that precipitate increased ethical values and group creativity, and suggestions about how they may institutionalize these factors are provided.