Ethical Climates and Managerial Success in Russian Organizations

This study investigated employee perceptions of ethical climates in a sample of Russian organizations and the relationship between ethical climate and behaviors believed to characterize successful managers. A survey of managerial employees in Russia (n = 136) indicates that "rules" was the most reported and "independence" was the least reported ethical climate type. Those who perceived a strong link between success and ethical behavior report high levels of a "caring" climate and low levels of an "instrumental" climate. Implications for practitioners and researchers are discussed.     

Ethical Climate and Managerial Success in China

This study examines perceptions of ethical climate and ethical practices of 118 successful Chinese managers among business students and managers in the Zhejiang province of China. The impact of different ethical climate types on perceived ethical practices of successful managers was also investigated. The “rules” was the most reported, and “independence” was the least reported, among the various climate types. A majority of the respondents perceive successful managers as ethical. In addition, those who believed that their organization had a “rules” climate perceived a strong positive link between success and ethical behavior. None of the other climate types had an impact on the link between success and ethical behavior.     

The Current Link Between Management Behavior and Ethical Philosophy

The current linkages between ethical theory and management behavior are investigated. The vignettes used in this investigation represent ethical dilemmas in the areas of coercion and control, conflict of interest, physical environment, and personal integrity. Overall, even with heightened ethical awareness the link between ethical philosophy and management behavior remains similar to that of the early 1990s. Generally, practitioners still rely heavily on the utilitarian ethical philosophy when making business decisions. However, more managers are now likely to select ethically appropriate actions either because it is ethical to do so, or because the consequences or risk of not doing so are too great. This shift could positively impact the ethical climate of business decision-making.     

Managerial and Peer Influence on Ethical Behavioral Intentions in a Personal Selling Context

This article evaluates the relationship between the ethical behavioral intentions of 374 future salespeople and the ethical climate of the firm. The ethical philosophy (high or low) of top management, immediate sales managers, and the peers of potential sales people were examined to see if they influenced: (1) comfort levels with the philosophy of the firm and (2) likelihood of engaging in unethical sales behavior. Ethical behavior measures included 14 situations such as deceptive sales tactics, deceptive pricing, and unethical behavior toward the employer.     

Evaluating International Ethical Climates: A Goal Programming Model

A critical concern for firms pursuing international expansion strategies involves identifying countries that offer a good fit with the firm's overall ethical orientation. Unfortunately, little has been written to aid firms in identifying countries that offer this type of fit. This paper presents a model that combines the concepts of strategic management, cross-cultural management, business ethics, and the management science technique of goal programming. The purpose of the model is to aid managers in identifying countries for international expansion that offer the best fit with the firm's ethical orientation. The paper also extends the existing literature on cross-cultural management and business ethics by applying a computer optimization model to evaluate potential countries for international expansion in a way that has not been done before.     

The Effects of Ethical Climates on Organizational Commitment: A Two-Study Analysis

Although organizational commitment continues to interest researchers because of its positive effects on organizations, we know relatively little about the effects of the ethical context on organizational commitment. As such, we contribute to the organizational commitment field by assessing the effects of ethical climates (Victor and Cullen, 1987, 1988) on organizational commitment. We hypothesized that an ethical climate of benevolence has a positive relationship with organizational commitment while egoistic climate is negatively related to commitment. Results supported our propositions for both a benevolent climate and an egoistic climate. We also hypothesized that a principled climate is positively related to organizational commitment for professional workers but has no relationships for nonprofessional workers. Results supported this hypothesis.     

Managerial Life Without a Wife: Family Structure and Managerial Career Success

The model of the successful manager was based on the 1950's family. Thus career demands assumed the presence of a spouse at home to handle family responsibilities. This study seeks to determine whether women and men in alternate family structures will be able to succeed in managerial careers. Data were analyzed from two MBA alumni cohorts: one older cohort with three waves of data collected over a thirteen-year period and a second younger cohort with data collected in the most recent wave. A typology of family structure was utilized to categorize the managers into one of twelve family structures based on marital status, parental status, and spousal employment status. The post-traditional family where both parents are employed was found to be most prevalent for both men and women. A small percent of the MBAs were in the traditional family where the father is employed and the mother is not employed. Family structure in early career appears to be stable over the thirteen-year study period. Analyses reveal that for men, those in traditional families are most rewarded in their careers in terms of income and salary progression. Women had no family structure that achieved career success comparable to traditional family men. Despite increased acknowledgement of the varied family structures of managers and the adoption of family friendly policies by companies, rewards are not distributed equally. This has implications for managers, organizations, and society.     

Toward a Better Understanding of the Link Between Ethical Climate and Job Satisfaction: A Multilevel Analysis

Research concerning the relationship between psychological ethical climate and job satisfaction is popular in the literature. However, to date, no study in the literature has simultaneously investigated both the effects of individual-level and organization-level ethical climates on employees’ job satisfaction. On the basis of a multilevel analysis, the present study used a sample of 472 full-time employees from 31 organizations in Taiwan to examine the above two effects. Results from the analyses showed that within the organizations, individual employees’ instrumental climate perceptions were negatively related to job satisfaction, whereas their caring climate perceptions and rules climate perceptions were positively related to job satisfaction. Also, the results indicated that between organizations, organizational instrumental climate was negatively related to job satisfaction, whereas organizational caring, independence, and rules climates were positively related to job satisfaction. Implications for research and managerial practices were derived from these findings.     

The Mediating Effects of Managerial Skills on the Relationship Between Managerial Values,Ethical Leadership,and Organizational Reputation

Drawing on the upper echelons theory, this study examines the mediating effects of managerial skills on the relationship between managerial values, ethical leadership, and organizational reputation. Data were obtained from 209 manufacturing companies in the People’s Republic of China. Regression results reveal that (1) managerial values positively affect ethical leadership and organizational reputation and (2) managerial skills mediate the effects of managerial values on ethical leadership, and on organizational reputation. The study sheds light on the mechanisms through which managerial self-transcendence values but not self-enhancement values affect ethical leadership and organizational reputation.     

The Link Between Organizational Ethics and Job Satisfaction: A Study of Managers in Singapore

Based on a survey of 237 managers in Singapore, three measures of organizational ethics (namely, top management support for ethical behavior, the organization's ethical climate, and the association between ethical behavior and career success) are found to be associated with job satisfaction. The link between organizational ethics and job satisfaction is argued from Viswesvaran et al.'s (1998) organizational justice and cognitive dissonance theories. The findings imply that organizational leaders can favorably influence organizational outcomes by engaging in, supporting and rewarding ethical behavior.     

Ethical Climates and Workplace Safety Behaviors: An Empirical Investigation

In this article, the important but neglected link between workplace safety-enhancing behavior and ethics is explored. Using data from 237 employees from five manufacturing plants in the Midwest, we investigated how specific local ethical climate types are linked to incidences of injuries and two types of safety-enhancing behaviors: safety compliance and safety participation. It was hypothesized that egoist climates are positively related to injuries and negatively related to safety-enhancing behaviors. In contrast, it is proposed that both benevolent and principled climates have negative relationships with injuries and positive relationships with safety-enhancing behaviors. Results provided support only for our principled climate types while benevolence has the desired negative relationship with injuries. Egoism and benevolence are not related to safety-enhancing behaviors. Theoretical and practical implications of findings are discussed. K. Praveen Parboteeah (Ph.D. Washington State University) is an Associate Professor of International Management in the Department of Management, University of Wisconsin – Whitewater. Parboteeah's research interests include international management, ethics, religion and technology and innovation management. He has published articles in numerous acadamic journals including Academy of Management Journal, Organization Science, Decision Sciences, Small Group Research, Journal of World Business, Management International Review, R&D Management and Journal of Engineering and Technology Management. Edward Andrew Kapp is an Assistant Professor in the Department of Occupational and Environmental Safety & Health at the University of Wisconsin-Whitewater. He received his Ph.D. in Industrial Engineering from the University of Wisconsin-Madision. Prior to his position at UW-Whitewater he worked in government, consulting, and private industry. Currently he teaches graduate and undergraduate courses in occupational safety, environmental health & safety management, and environmental and safety law. Dr. Kapp's research is in the area of environmental health & safety management, focusing on the influence of climate and leadership on safety performance.     

The Link Between Management Behavior and Ethical Philosophy in the Wake of the Enron Convictions

The current linkages between ethical theory and management behavior are investigated in the wake of the much-publicized convictions of Enron executives. The vignettes used in this investigation represent ethical dilemmas in the areas of coercion and control, conflict of interest, physical environment, and personal integrity. Since 2003, and after the successful prosecution of Enron executives, the link between ethical philosophy and management behavior has shifted somewhat dramatically. There has been a significant change in the rational basis for managerial decision making. In 2003, even after the Enron scandal was publicized, practitioners still relied heavily on both act and rule utilitarian ethical philosophies when making business decisions. Currently, the majority of respondents are likely to select ethically appropriate actions based on either rule utilitarian or rights rationales. It appears that ethical behavior is now more in line with ethical rhetoric, which may positively impact the ethical climate of business decision making. Apparently, business scandals of the past did not really impact actual ethical behavior much, but the high-profile prosecutions, convictions, and jail sentences may have impressed on managers that now is the time to incorporate ethics into business decisions.     

The Effects of Ethical Climates on Bullying Behaviour in the Workplace

Various aspects of the relationship between ethical climate types and organizational commitment have been examined, although a relationship with the concept of bullying, which may be very detrimental to an organization, has not attracted significant attention. This study contributes to the existing research by taking the effects of bullying behaviour into consideration. The aim of this study is to explore the effects of bullying behaviour upon the relationship between ethical climate types and organizational commitment. It will be noted that work-related bullying behaviour significantly mediated the relationship between instrumentality climate and two of the dimensions of organizational commitment. Significant relationships between ethical climate dimensions and organizational commitment can also be detected. By emphasizing a required ethical climate dimension for organizations this study therefore presents in outline a partial strategy to reduce bullying behaviour and to increase organizational commitment.     

The Effects of Organizational and Ethical Climates on Misconduct at Work

Questionnaire data obtained from 97 supervisory and nonsupervisory employees representing the Production, Production Services, Marketing, and Administration departments of an Israeli metal production plant were used to test the relationship between selected personal and organizational attributes and work related misbehavior. Following Vardi and Wiener's (1996) framework, Organizational Misbehavior (OMB) was defined as intentional acts that violate formal core organizational rules. We found that there was a significant negative relationship between Organizational Climate and OMB, and between the Organizational Climate dimensions (Warmth and Support, and Reward), and OMB. Also, the activities of misbehavior reported by both managers and employees were negatively related to the Rules, Instrumental and Caring dimensions of Ethical Climates as defined by Victor and Cullen (1988).     

Direct and Multiplicative Effects of Ethical Dispositions and Ethical Climates on Personal Justice Norms: A Virtue Ethics Perspective

From virtue ethics and interactionist perspectives, we hypothesized that personal justice norms (distributive and procedural justice norms) were shaped directly and multiplicatively by ethical dispositions (equity sensitivity and need for structure) and ethical climates (egoistic, benevolent, and principle climates). We collected multisource data from 123 companies in Hong Kong, with personal factors assessed by participants’ self-reports and contextual factors by aggregations of their peers. In general, LISREL analyses with latent product variables supported the direct and multiplicative relationships. Our findings could lay the groundwork for justice research from a morality perspective in future.     

A Study of The Link Between a Corporation's Financial Performance and Its Commitment to Ethics

A number of studies have tested the relationship between a corporation's social and ethical performance and its financial performance. In contrast, this is the first study to demonstrate a link between overall financial performance and an emphasis on ethics as an aspect of corporate governance. It identifies the 26.8 percent of the 500 largest U.S. public corporations that, in their annual report to shareholders, commit to ethical behavior toward their stakeholders or emphasize compliance with their code of conduct. The financial performance of these corporations ranks higher than that of those who do not at a significance level of p = < 0.005, using the 1997 Business Week ranking which averages eight publicly-reported measures of historical financial performance. These findings should motivate more corporations to utilize the principles of Social and Ethical Accounting, Auditing and Reporting (SEAAR).     

The Moderating Role of Context in Determining Unethical Managerial Behavior: A Case Survey

Prior negative performance and wrongdoing are difficult for applicants to overcome during their job search. The result has often been that they resort to lies and deception in order to obtain employment. The present study examines “stealing thunder” as a trust repair tactic that might be useful for overcoming prior indiscretions when it is used by applicants during the selection interview process. Stealing thunder refers to the self-disclosure of negative information that preempts allegations of wrongdoing by third parties such as hiring managers. Data were collected (n = 184) using a scenario-based 2 (accept responsibility; blame others) X 2 (low, high likelihood of discovery) experimental design in which perceptions of integrity, trust, and employability were measured. Results indicated that a stealing thunder strategy that involved accepting responsibility under a low likelihood of transgression discovery led to higher ratings of trust than blaming others when discovery of wrongdoing was imminent. The stealing thunder strategy was somewhat more effective than when a traditional, post-allegation apology was used. But stealing thunder did not lead to higher levels of an overall willingness to hire the applicant.     

Cultural and Ethical Effects on Managerial Decisions: Examined in a Throughput Model

Financial and cost accounting information is processed by decision-makers guided by their particular need to support decisions. Recent technological advances impacting on information as well as organizations such as the European Community mandating financial reporting requirements for many countries is rapidly changing the landscape for decision making using accounting information. Hence, the importance of individuals' decision making is more important than it was previously. These decisions are also influenced by individuals' ethical beliefs. The Throughput Modeling approach to cultural and ethical concerns provides a way of dealing with accounting information processed through various pathways by decision-makers. This modeling approach captures different philosophical perspectives from which to understand what is involved in "thinking scientifically." In the Throughput Modeling approach, pathways highlight the importance of how different philosophical perspectives may be used by individuals in arriving at a decision. This paper highlights key concepts involved in rethinking the basis of moral decision making in terms of an underlying process, rather than focusing on the application of principles or the development of a virtuous character. Examples are provided from both English and Spanish settings to help emphasize the importance of modeling ethical decision making globally.