The Power of One to Make a Difference: How Informal and Formal CEO Power Affect Environmental Sustainability

This study empirically investigated the impact of ethical leadership on employee burnout, deviant behavior and task performance through two psychological mechanisms: (1) developing higher levels of employee trust in leaders and (2) demonstrating lower levels of surface acting toward their leaders. Our theoretical model was tested using data collected from employees of a pharmaceutical retail chain company. Analyses of multisource time-lagged data from 45 team leaders and 247 employees showed that employees’ trust in leaders and surface acting significantly mediated the relationships between ethical leadership and employee burnout, deviant behavior and task performance. We discuss the theoretical and practical implications of our findings for understanding how ethical leaders influence employees’ attitudes and behavior.     

New Insights into Ethical Leadership: A Qualitative Investigation of the Experiences of Executive Ethical Leaders

Ethical leadership has become a thriving research field. However, on reviewing previous research, we argue that several fundamental questions remain unclear and need further investigation. (1) Ethical leaders are defined as behaving ‘normatively appropriate[ly]’ (Brown et al., Organ Behav Hum Decis Process 97(2):117–134, 2005), but it remains unclear what this entails. What specific behaviours does an ethical leader show? (2) To date, ethical leadership has focused primarily on leader behaviour towards employees. Which stakeholders apart from employees are important to the ethical leader, and what kind of ethical behaviour does the ethical leader show towards them? (3) What are further antecedents and consequences of ethical leadership? We addressed these questions by qualitatively analysing interviews with 17, mostly Swiss, executive ethical leaders. The results indicate that executive ethical leaders care not only about employees but also about other stakeholders, such as customers, suppliers, owners of companies, the natural environment and society. Additionally, this study identified a broad range of executive ethical leaders’ behaviours towards these stakeholders, and, therefore, may function as a useful resource for future quantitative studies. Furthermore, we identified several antecedents of executive ethical leadership, for example ethical role models, business strategy and owner’s values, and consequences such as effects on other stakeholders than employees. Finally, our results shed more light on the processes of ethical guidance of employees. Managerial implications and avenues for further research are discussed.     

Factors Impacting Ethical Behavior in a Chinese State-Owned Steel Company

This study examines factors impacting ethical behavior of 208 employees of a Chinese state-owned steel company. Only rules climate had a significant impact on ethical behavior of respondents. Other ethical climate types such as professional, caring, instrumental, independence, and efficiency did not impact ethical behavior of respondents. Ethical behavior of peers, ethical behavior of successful managers, and overclaiming had a significant impact on ethical behavior of subjects.     

Organizational Ethics: Perceptions of Employees by Gender

As more women enter the work force and assume management positions in corporations, increasing attention is being given to employment diversity. In addition, studies suggest that females have more propensity for ethics than males. However, these results may be debatable and limited data are available to substantiate these claims or assess gender differences among employees. Ethics codes can aid in supporting policies and enhancing corporate diversity. To assist one company in the development of an ethics code, a survey of 4005 employees in one U.S. corporation was conducted to ascertain their opinions of the ethical environment of the company. The survey used the Ethics Environment Questionnaire (EEQ), consisting of twenty items on a 5-point Likert-type scale; reliability on Cronbach's alpha was 0.94. Response rate was 50%, with the sample paralleling the population in proportion of males and females. Respondents reported a profile of 3.18 out of the high of 5.0, but with several significant differences between the male and female employees, including differences on education and position. Males were more in agreement than females that the firm had an ethical environment. On some items, however, males and females were in strong agreement. Comparisons to prior studies were drawn, including suggestions for ways corporations could use an ethics survey to tailor in-service training, enhance diversity in the work force, and support the development of an ethics code.     

The Impact of Ethical Behavior and Facets of Job Satisfaction on Organizational Commitment of Chinese Employees

This study examines factors impacting organizational commitment of 214 employees working at a Chinese state-owned steel company. Ethical behavior of peers and ethical behavior of successful managers had a significant impact on organizational commitment. The four facets of job satisfaction (pay, coworker, supervision, and work itself) had a significant impact on organizational commitment. Respondent’s age also significantly impacted organizational commitment. Perceptions of ethical behavior of successful managers, satisfaction with work, and gender were significantly correlated with social desirability bias.     

Current Ethical Issues in Polish HRM

Contemporary HRM was introduced into Poland by the arrival of international corporations with their professional systems of Human Resource Management, which emphasizes ethical personnel management. This research is based on data collected from a questionnaire and interview of 40 women and men professional graduates of the 2004 Weekend MBA Program at Poznan University of Economics eliciting their perceptions of ethical issues in Polish HRM. The present Polish economic situation, with 19% unemployment, precipitates many ethical challenges. The questionnaire and interviews resulted in 217 observations and specific examples of ethical HRM issues. Examples fall in two broad categories and five specific Human Resource areas. The broad external categories are: (1) History and cultural attitudes and (2) Exploitation of the current unemployment situation. Historical and cultural attitudes influence attitudes toward work; company discipline; property and ownership; law and social expectations at work. The history of personnel departments in Socialistic Poland explains many of these attitudes. The five specific categories are: (1) Ethical issues in recruitment; (2) Ethical issues in hiring (Discrimination issues); (3) Ethical issues in performance appraisals and promotions; (4) Abuse of authority (including sexual harassment), and (5) “Mobbing”. Ethical issues in these categories include correlation with appropriate Polish Labor and Penal Laws. This research reveals some HRM ethical challenges unique to Polish HRM. The research emphasizes professional HRM and ethical expectations, which are now being recognized and accepted as a strategic component of Polish management Brother Leo V. Ryan, CSV is Professor of Management – Emeritus and former Dean, College of Commerce, De Paul University. He is a Fellow, St. Edmund’s College, Cambridge, holds honorary degrees from Seton Hall University and Illinois Benedictine University and was a Fulbright Professor in Poland (1993–1995). He is past president, Society for Business Ethics. He is co-author or co-editor of Human Action in Business (1996); Etyka Biznesu (1997); From Autarcy to Market – Polish Economics and Politics (1998); Students Focus on Ethics (2000); Praxiology and Pragmatism (2002) and Poland: A Transformational Analysis (2003). He has been an annual Visiting Professor, Poznan University of Economics, Poznan, Poland since November 1999.     

The Ethical Dimensions of Decision Processes of Employees

The influence of stakeholders, organisational commitment, personal values, goals of the organisation and socio-demographic characteristics of individuals on the ethical dimension of behavioural intentions of employees in various organisations are investigated. The research results show that employees working for the public sector or in educational institutions take more ethical aspects into account than employees working in the "private" sector. The influence of stakeholders and organisational commitment do not significantly affect the ethical behaviour of employees, and only some personal values and goals of the organisation have a significant influence on ethical behaviour. The most significant explanatory factor of ethical decision making seems to be what may be called "stage in the career of the employee": "ethical" employees can be described as young, with a relatively low income, limited work experience and a low level of responsibility in the company.     

Differences in moral values between corporations

This research compares the importance of moral values for corporations' managements, as reported by 97 knowledgeable employees in eight corporations. Does an employee consensus emerge within corporations and does it differ between corporations? To answer this question, an analysis of covariance technique was used to compare the importance of moral values between corporations versus within corporations. Results corroborate the hypothesis that closely matched corporations do differ significantly from one another in the importance of prevailing moral values. Evidence also suggests that the importance of prevailing moral values may be inversely related with company size. Implications for future research and for the practice of management are delineated.     

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.     

Ethical decision–making: a multidimensional construct

Poor ethical decision–making costs industry billions of dollars a year and damages the images of corporations. Thus, by answering the question ‘Why do individuals behave as they do when confronted with ethical issues?’ ethical theory can provide businesses with a means to create a more ethical climate and a more successful operation. This study tested the Ethical Decision–Making Model with accountability (Beu & Buckley 2001), which uses theory that suggests that ethical behavior is influenced by the individual, the issue, social relationships (accountability), and the organization in which the employee is embedded (Brass, Butterfield & Skaggs 1988; Frink & Klimoski 1998). The results showed that individuals’ thought processes (cognitive moral development), personalities (locus of control, hostility and aggression, Machiavellianism), and gender influence how they respond to ethical dilemmas, as well as the salience of the moral issue (moral intensity) and the environmental context (work/school).     

Factors Impacting Ethical Behavior in Hospitals

This study examines factors impacting ethical behavior of 203 hospital employees in Midwestern and Northwestern United States. Ethical behavior of peers had the most significant impact on ethical behavior. Ethical behavior of successful managers, professional education in ethics and sex of the respondents also significantly impacted ethical behavior. Nurses were significantly more ethical than other employees. Race of the respondent did not impact ethical behavior. Overclaiming scales indicated that social desirability bias did not significantly impact the results of our study. Implications of this study for researchers and practitioners are discussed.     

Corporate institutionalization of ethics in the United States and Great Britain

This paper compares the results of large-scale U.S. and U.K. surveys designed to identify managers' major ethical concerns and to investigate how firms are formulating and communicating ethics policies responsive to these concerns.Our findings indicate some important differences between U.S. and U.K. firms in perceptions of what are important ethical issues, in the means used to communicate ethics policies, and in the issues addressed in ethics policies and employee training. U.K. companies tend to be more likely to communicate ethics policies through senior executives, whereas U.S. companies tend to rely more on their Human Resources and Legal Departments. U.S. firms consider most ethical issues to be more important than do their U.K. counterparts, and are especially concerned with employee behavior which may harm the firm. In contrast, the issues which U.K. managers consider more important tend to be concerned with external corporate stakeholders rather than employees.Diana C. Robertson is an Assistant Professor in the Legal Studies Department of The Wharton School University of Pennsylvania. Dr. Robertson has been a Visiting Assistant Professor at The London Business School and she has received The University of Pennsylvania Provost's Award for Distinguished Teaching. Her research interests include the impact of corporate policy and strategy on employees' ethical behavior, and the diffusion of ethical practices among corporations. Dr. Robertson has published articles in theSloan Management Review, theJournal of Business Ethics, andOrganization Science.Bodo B. Schlegelmilch holds the British Rail Chair of Marketing. Dr. Schlegelmilch was formerly a Visiting Assistant Professor at the University of California, Berkeley, and a Lecturer in Marketing and International Business at the University of Edinburgh. His research interests include international and strategic marketing. Dr. Schlegelmilch has published articles in theJournal of International Business, theEuropean Journal of Marketing, andIndustrial Marketing Management.     

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.     

How Perceived Corporate Social Responsibility Affects Employee Cynicism: The Mediating Role of Organizational Trust

This study examines to what extent perceived corporate social responsibility (CSR) reduces employee cynicism, and whether trust plays a mediating role in the relationship between CSR and employee cynicism. Three distinct contributions beyond the existing literature are offered. First, the relationship between perceived CSR and employee cynicism is explored in greater detail than has previously been the case. Second, trust in the company leaders is positioned as a mediator of the relationship between CSR and employee cynicism. Third, we disaggregate the measure of CSR and explore the links between this and with employee cynicism. Our findings illustrate that the four distinct dimensions of CSR of Carroll (economic, legal, ethical, and discretionary) are indirectly linked to employee cynicism via organizational trust. In general terms, our findings will help company leaders to understand employees’ counterproductive reactions to an organization, the importance of CSR for internal stakeholders, and the need to engage in trust recovery.     

Designing Ethical Organizations: Avoiding the Long-Term Negative Effects of Rewards and Punishments

Ethics researchers advise managers of organizations to link rewards and punishments to ethical and unethical behavior, respectively. We build on prior research maintaining that organizations operate at Kohlbergs stages of moral reasoning, and explain how the over-reliance on rewards and punishments encourages employees to operate at Kohlbergs lowest stages of moral reasoning. We advocate designing organizations as ethical communities and relying on different assumptions about employees in order to foster ethical reasoning at higher levels. Characteristics associated with ethical communities are identified and AES Corporation and Semco S/A serve as examples of corporations exhibiting the design characteristics and assumptions of ethical organizations.     

From an Implicit Christian Corporate Culture to a Structured Conception of Corporate Ethical Responsibility in a Retail Company: A Case-Study in Hermeneutic Ethics

This research investigates the impact of various factors on ethical behavior of 180 not-for-profit hospital employees. Ethical behavior of peers, ethical behavior of successful managers, and emotional intelligence had a significant positive impact on ethical behavior of respondents. Physicians and hospital employees with political connections within the organization were significantly less ethical than other employees. The results have many implications for researchers and healthcare practitioners.     

Ethical aspects of “Japanese leadership style”

This article describes three characteristics of the Japanese Leadership Style (JLS): self-realization, appreciation of diverse abilities, and trust in others, which have both positive and negative ethical implications. In addition to illustrating how JLS allows Japanese corporations to avoid some of the ethical problems plaguing U.S. corporations, the authors will explain how these characteristics engender the loyalty and initiative of Japanese employees which promote incremental innovation and competitive advantages. Implicit in this discussion is the premise that both the American and Japanese business communities, by analyzing their own ethical issues and leadership styles, can learn from each other.Iwao Taka is a Visiting Research Fellow in the Department of Legal Studies at The Wharton School. He is an Assistant Professor in the International School of Economics and Business Administration, Reitaku University in Japan. His publications include Business Ethics: A Japanese View, Intuitive Decision-Making and Creative Destruction, and Japanese Entrepreneurship after World War II.Wanda D. Foglia, Esquire, is a Teaching Fellow in the Department of Legal Studies at The Wharton School where she is pursuing a Ph.D. in Criminology. A former Assistant District Attorney, her research focuses on approaches for promoting the individual's commitment to ethical and law-abiding behavior. She has recently coordinated a Project to Integrate Ethics Into the Wharton Undergraduate Curriculum.     

Ethical, Legal and Economic Aspects of Employer Monitoring of Employee Electronic Mail

This paper examines ethical, legal and economic dimensions of the decision facing employers regarding whether it is appropriate to monitor the electronic mail (e-mail) communications of its employees. We review the question of whether such monitoring is lawful. Recent e-mail monitoring cases are viewed as a progression from cases involving more established technologies (i.e., phone calls, internal memoranda, faxes and voice mail).The central focus of the paper is on the extent to which employer monitoring of employee e-mail presents a structure of costs and benefits to the employer which are unlikely to make such a practice profitable or practical to the employer. The practice of employer monitoring to detect illicit employee behavior (e.g., fraud, harassment of fellow employees, industrial espionage) is considered.It is argued that not only does such monitoring behavior fall short of the standard imposed by Kant's categorical imperative for ethical behavior, monitoring also fails to meet Aristotle's ethical standard of practical wisdom. Other ethical aspects of employer monitoring are considered.     

Individual Moral Development and Ethical Climate: The Influence of Person–Organization Fit on Job Attitudes

This research examines how the fit between employees moral development and the ethical work climate of their organization affects employee attitudes. Person–organization fit was assessed by matching individuals' level of cognitive moral development with the ethical climate of their organization. The influence of P–O fit on employee attitudes was assessed using a sample of 304 individuals from 73 organizations. In general, the findings support our predictions that fit between personal and organizational ethics is related to higher levels of commitment and job satisfaction and lower levels of turnover intent. Ethical P–O fit was related to higher levels of affective commitment across all three ethical climate types. Job satisfaction was only associated with ethical P–O fit for one of the three P–O fit variables and turnover intentions were significantly associated with two of the ethical P–O fit variables. The most consistent effect was found for the Conventional – Caring fit variable, which was significantly related to all three attitudes assessed. The weakest effect was found for the Preconventional – Instrumental fit variable, which was only predictive of affective commitment. The pattern of findings and implications for practice and future research are discussed.