Culture follows design: Code design as an antecedent of the ethical culture

Codes of ethics are directly aimed at behavioral control, but they also affect a company’s ethical culture, which in turn concerns compliance and ethical behavior. To positively influence a company’s ethical culture, employees must be familiar with its code of ethics, perceive that top management is committed to the code, and believe that their peers also comply with the code. The evidence on whether a code’s design affects a company’s ethical culture is limited. This study’s factorial survey experiment contributes to this gap in two ways: first, it investigates whether a code’s design affects how easily the code can be learned and, therefore, contributes to code familiarity. Second, it examines how a code can convey expectations regarding top management’s commitment and peers’ behavior, both of which are part of ethical culture. The results indicate that a positive tone increases code familiarity, and a code signed by top managers sends a strong signal of their commitment to the code. Finally, various implications of the results for research and practice are discussed.     

Managing organizational culture in a Japanese organization in Hong Kong

The issue of how MNCs manage the organizational culture in their overseas subsidiaries is one of the central questions for managing overseas employees. The study explores how a Japanese MNC in Hong Kong manages its organizational culture across cultures. The results imply that a company will not be effective if it uses artifacts only, such as ceremonies to convey the desired culture to the local employees. The more important mechanism is the human resource management system which is considered as the statement of the company's values, beliefs and assumptions. Since the case company uses a dual human resource management system and a dual control practice for the Japanese and local employees, these practices send out mixed messages and signals to the local employees who cannot project the desired state culture. Furthermore, because local employees bring along with them their values derived from national culture, they tend to adhere to these values rather than those of the company.     

How CSR serves as a preventive mechanism for coping with dysfunctional customer behavior

Service Business - Based on empirical results involving 237 frontline service employees (FSEs) of a South Korean insurance company, this study reveals how FSEs’ views of their company’s...     

Financialization and the Employee Suicide Crisis at France Telecom

The privatization of France Telecom (FT) in 1997 led to the implementation of a profit-oriented financialization strategy. An unforgiving work environment was developed, which has unsettled many employees. Between February 2008 and October 2011, 69 employees took their own life. Many left notes blaming management for having privileged the interests of shareholders over those of employees. Through interviews with employees and professional practitioners associated with FT, we reveal that employees strongly resented the company’s use of financialization policies to maximize shareholder value. Pursuit of such policies led to the de-institutionalization of socially prescribed norms that were applied commonly in Continental European workplaces. Feelings of anomie, disgrace, futility and isolation ensued among employees. This case highlights an important effect of a modern corporation’s adoption of financialization policies. It points to the need to improve workplace sensitivities and the ethical dispositions of companies and their managers.     

Optimal monetary and fiscal policy in a currency union

We lay out a tractable model for the analysis of optimal monetary and fiscal policy in a currency union. The monetary authority sets a common interest rate for the union, whereas fiscal policy is implemented at the country level, through the choice of government spending. In the presence of country-specific shocks and nominal rigidities, the policy mix that is optimal from the viewpoint of the union as a whole requires that inflation be stabilized at the union level by the common central bank, whereas fiscal policy has a country-specific stabilization role, one beyond the efficient provision of public goods.     

Determinants of employees’ attitudes toward union membership in India

Drawing on data from a survey of 252 unionized full-time employees from large Indian organizations, this study examined whether individual level job related variables and individual cultural value dimensions of individualism–collectivism (I–C) were predictive of employees’ attitudes toward union membership. Using regression analysis, the author found that over and above the effects of demographic and job-related variables, work situation dissatisfaction and perceived work stress were able to predict union attitudes significantly and positively for the sample. The relationship of union attitude was highly significant and negative with a consultative managerial style. Collectivism was able to predict the union attitudes positively, whereas individualism was negatively related to the union attitudes. The interaction between employees’ perceived work stress and work situation dissatisfaction are found to have a positive influence on their union attitudes. The results and implications of findings are discussed in the paper with reference to the literature on role of cultural dimensions (I–C) and job related factors in relation to organizational outcomes like union membership.     

Managing Corporate Portal Usage with Recommender Systems

Corporate portals are supposed to support a company’s business model and to increase productivity of the employees. However, the productivity gain that can be achieved by corporate portals is often undermined because the users of the portal are not sufficiently informed about the portal’s capabilities. This is of particular concern for large corporate portals whose service portfolio is constantly evolving and to which new users are added frequently. In the article, we propose a recommender system for corporate portals in order to increase service awareness and usage. Following the design science methodology, a suitable recommender concept is developed and several implementation options are evaluated in a field experiment at one of Germany’s largest companies. It is found that the recommender system increases the number of newly visited services as well as the number of newly used services in the corporate portal by about 20 %.     

Transparency to Reduce Corruption?

Corruption within the private sector has often not been dealt with in Brazil. Organizations may find corrupt acts in its operations or practices, but specific concepts and programs to avoid them are neither concrete nor clear. Some Brazilian stockholders have become aware of the risks involved in unethical procedures and are adopting the Best Practices of Corporate Governance initiative. International agencies have intensively supported organizations and governments in an effort to define policies that inhibit illegal or corrupt cultural habits throughout the world, but Brazilian practitioners show insufficient response. Skepticism may indicate a lack of understanding about how an ethical leadership can guide employees, setting high standards for the organizational culture and climate, clearly defining limits of correct behavior, and creating appropriate codes of ethics. Transparency still has to be discovered as a significant tool to encourage professionalism in performance and reporting of data in Brazilian companies. In this article, we analyze the ethical behavior of the purchasing department of a multinational company in its host country, Brazil. It focuses specifically on the supplier–buyer relationship. The results indicate that despite the negative reputation Brazilians have in business ethics, a company can still develop a positive and ethical relationship with its stakeholders. Communication, transparency, compliance with the company’s code of conduct as well as the supplier’s awareness of the buyer’s code of conduct are the factors which influence the supplier–buyer relationship. Transparency can be used as a tool to reduce corruption, thereby increasing ethical behavior and company image. Good ethical behavior can help to build up a company’s image.     

Store Manager–Store Performance Relationship: A Research Note

Despite the critical role that store managers play in linking top management teams and service/retail employees, as well as in fulfilling corporate strategy within chain store environments, service management research infrequently addresses the factors that may promote store managers’ effective exchange relationships within the firm and subsequent effects on store operations and profitability. This study focuses on how store managers’ performance orientation, trust of a regional manager’s capabilities, and organizational commitment affect a manager’s relationships relative to regional managers and frontline employees. The direct effect of store managers’ relationship capacity on store performance is also examined. The results, based on survey data from managers of stores of a retail and service chain and company financial reports, generally support the suggested hypotheses. Specifically, a store manager’s relationship with his/her supervisor has a strong influence on how the manager views the supervisor’s leadership support and leadership style, which ultimately influence store performance (primary goods/service sales and store profits).     

Employee representation plans at the Minnequa Steelworks,Pueblo, Colorado, 1915–1942

There has been revival of interest in employment representation plans as an alternative way of giving employees a ‘voice’ in a period of declining trade union density. J.D. Rockefeller Jr. played a crucial role in establishing the movement for employee representation plans in the United States before the Second World War, which at one stage may have covered more workers than unions. He established his employee representation plan at the Colorado Fuel & Iron Company (CFI) in the wake of the Ludlow massacre of 1914 and it served as a model for other employers. This article examines his Plan at the CFI's Pueblo steelworks, which survived for 26 years. It examines to what degree the Plan gave voice to the steelworks employees and to what extent the Plan was a union avoidance strategy. It also highlights union efforts to destroy the Plan in the 1919 Steel Strike and the impact of resistance from supervisors, who resented the undermining of their authority by the Plan.     

Supporting the Career Development of Older Employees: an HRD Study in a Dutch Company

Many organisations are confronted with an ageing workforce. Older employees are often seen as less flexible and open to HRD activities than their younger colleagues, yet rapid developments taking place within society and organisations require a flexible and responsive workforce. The necessary knowledge and skills demanded here can be taught through HRD activities. In 1995 a quantitative exploratory survey into the conditions considered important for the career development or mobility of older workers was carried out within a Dutch multinational chemical company. From a training and development viewpoint, these conditions are defined as demands made on corporate HRD policy, HRD activities and employees’ willingness to learn, as well as stimulating factors that promote the career development of older workers. Results show that while the company operated an age-awareness personnel policy, this still focused on younger employees so that participants in the career development process were insufficiently stimulated in their roles and traditional formal HRD activities had little effect on older workers’ careers. This article describes the survey, highlighting its major results, and offers recommendations.     

Transformational Leadership and Follower’s Unethical Behavior for the Benefit of the Company: A Two-Study Investigation

Although the ethical dimension of transformational leadership has frequently been discussed over the last years, there is little empirical research on employees’ ethical behavior as an outcome of transformational leadership. This two-study investigation examined the relationship between transformational leadership and unethical yet pro-organizational follower behavior (UPB). Moreover, mediating and moderating processes were addressed. Our research yielded a positive relationship between transformational leadership and employees’ willingness to engage in UPB. Furthermore, both studies showed employees’ organizational identification to function as a mediating mechanism and employees’ personal disposition toward ethical/unethical behavior to moderate the relationship between organizational identification and willingness to engage in UPB. Altogether, results indicate transformational leadership to entail a certain risk of encouraging followers to contribute to their company’s success in ways that are generally considered to be unethical. Implications regarding the ethical dimension of transformational leadership are discussed.     

Is the Perception of ‘Goodness’ Good Enough? Exploring the Relationship Between Perceived Corporate Social Responsibility and Employee Organizational Identification

Drawing on social identity theory and organizational identification theory, we develop a model of the impact of perceived corporate social responsibility on employees’ organizational identification. We argue that employees’ perceptions of their company’s social responsibility behaviors are more important than organizational reality in determining organizational identification. After defining perceived corporate social responsibility (PCSR), we postulate how PCSR affects organizational identification when perception and reality are aligned or misaligned. Implications for organizational practice and further research are discussed.     

The Voice Link: A Moderated Mediation Model of How Ethical Leadership Affects Individual Task Performance

This study empirically examines the proposition that ethical leadership may affect individuals’ task performance through enhancing employees’ promotive voice. Our theoretical model was tested using data collected from employees and supervisors in a high-tech company located in South China. Analyses of multisource three-wave data from 37 team supervisors and 176 employees showed that ethical leadership could significantly affect individuals’ task performance through promotive voice. Further, it was found that the relationship between ethical leadership and promotive voice was moderated by leader–leader exchange. Specifically, ethical leadership may significantly enhance employees’ promotive voice when leader–leader exchange is low. The theoretical and practical implications of these findings are discussed.     

“Organised irresponsibility”? The Siemens corruption scandal of the 1990s and 2000s

Abstract

Siemens is one of the world’s leading electrical engineering corporations. In 2006, a massive corruption scandal erupted, concluded in 2008 with a record fine. For Siemens the largest risk was being barred from government contracts. As a consequence, it replaced virtually its entire managing board, an unprecedented procedure in the history of the company. This article looks at the background of the scandal. Why did Siemens employees engage in corruption and dubious payments on such a grand scale? What does this case tell us about the compliance revolution that took place in the 2000s?     

Investigating the Impacts of Organizational Factors on Employees’ Unethical Behavior Within Organization in the Context of Chinese Firms

Unethical behavior is under-examined in the workplace. To date, few studies have attempted to explore the antecedents of an employee’s ethical decisions, particularly with respect to unethical behavior and its effects. To capture an employee’s psychological perception of unethical behavior in the workplace, this paper integrates organizational factors (codes of conduct, likelihood of detection, and performance pressure) into the Theory of Reasoned Action. By conducting an empirical study in a Chinese firm, we found that codes of conduct and performance pressure have a significant influence on an employee’s attitude toward and social beliefs about unethical behavior. We also demonstrated that employees’ unethical behaviors affect the firm performance of an entrepreneurial venture. The insights gleaned from the findings on this Chinese company have a number of important implications for both research and practice.     

Apprenticeships and ‘future work’: are we ready?

The paper evaluates the readiness of apprenticeship systems to cope with five major developments affecting the future of work. The institution of apprenticeship has evolved over time in all countries, gradually adapting to changes in industrial processes, the economy, the labour market and education systems. This paper suggests, however, that recent changes in the economy and the labour market, and their concomitant effects on the likely future of work, have the potential to disrupt apprenticeship systems quite radically worldwide, and/or to make them less relevant in the 21st century. The paper draws on data from recent Australian and international research projects undertaken by the author, as well as the author’s engagement in Australian government exercises to discuss the future of apprenticeships. The research found that adaptations of systems and processes were being undertaken at company level and by stakeholders such as trade union or employer peak bodies. They were less frequently apparent, however, in government policy. The paper analyses the data to produce a framework of readiness for ‘future work’, but also queries whether adaptation of apprenticeship systems is necessarily desirable in all instances. Although the presence of multiple stakeholders in the system has previously been viewed as a strength of the system, it can also make even minor changes difficult to implement. This could prove to be a major impediment to apprenticeship’s future or could be a means of preserving its essential features.     

Business curriculum redesign: Integrating data analytics

Data analytics is an integral part of planning and decision making in business. Priorities have shifted to hiring skilled employees to support a company’s analytics requirements. The authors discuss the background of big data and data analytics, demand for trained professionals, and information on the development of a data analytics curriculum. Curriculum design models are explored and emphasis placed on university curriculum redesign. This is a perspective piece that also addresses interdisciplinary collaboration, accreditation, and related challenges.     

The Weizhi Group of Xian: A Chinese Virtuous Corporation

Since China opened herself up to the world in the late 70s, privately-owned companies of different trades began to emerge along side with the state-owned enterprises. Among these successful private enterprises, a few have distinguished themselves from the rest by their distinct corporate cultures. Despite an increasing number of research on private enterprises in China, little has been done to unveil the ethical aspects of their corporate cultures. This paper attempts to fill the gap. This paper focuses on one company named the Weizhi Group in Xian. The Weizhi culture is indeed the basis of a company which I refer to as "virtuous corporation". An empirical survey on the values and perceptions of the employees of Weizhi Group was conducted to probe the values and perceptions of business ethics of its employees.     

A systems perspective on offshoring strategy and motivational drivers amongst onshore and offshore employees

Extant research tends to view firm level offshoring strategies and micro level motivational drivers as self-contained units of analysis. By contrast, this paper draws on an inductive study of two global service firms to demonstrate how the implementation and success of an advanced task offshoring strategy depends on certain systemic interdependencies between (a) the strategy, (b) onshore employees’ motivation to transfer advanced tasks and (c) offshore employees’ motivation to spend effort on their tasks and stay with the firm. We analyse how these three elements interact and produce feedback loops to create an ‘offshoring system’. Extrapolating from our findings, we propose how the offshoring system is likely to develop within the external constraints set by the attainable expertise of offshore employees and by client demands.