CEO Ethical Leadership, Ethical Climate, Climate Strength, and Collective Organizational Citizenship Behavior

In spite of an increasing number of studies on ethical climate, little is known about the antecedents of ethical climate and the moderators of the relationship between ethical climate and work outcomes. The present study conducted firm-level analyses regarding the relationship between chief executive officer (CEO) ethical leadership and ethical climate, and the moderating effect of climate strength (i.e., agreement in climate perceptions) on the relationship between ethical climate and collective organizational citizenship behavior (OCB). Self-report data were collected from 223 CEOs and 6,021 employees in South Korea. The results supported all study hypotheses. As predicted, CEOs?? self-rated ethical leadership was positively associated with employees?? aggregated perceptions of the ethical climate of the firm. The relationship between ethical climate and firm-level collective OCB was moderated by climate strength. More specifically, the relationships between ethical climate and interpersonally directed collective OCB and between ethical climate and organizationally directed collective OCB were more pronounced when climate strength was high than when it was low. Theoretical and practical implications of these findings are addressed herein.     

The Moderating Effect of Individuals' Perceptions of Ethical Work Climate on Ethical Judgments and Behavioral Intentions

Dimensions of the ethical work climate, as conceptualized by Victor and Cullen (1988), are potentially important influences on individual ethical decision-making in the organizational context. The present study examined the direct and indirect effects of individuals' perceptions of work climate on their ethical judgments and behavioral intentions regarding an ethical dilemma. A national sample of marketers was surveyed in a scenario-based research study. The results indicated that, although perceived climate dimensions did not have a direct effect on behavioral intentions, there were significant moderating effects. Climates perceived as emphasizing social responsibility and rules/codes moderated the individual ethical judgment-behavioral intentions relationship such that individuals were less likely to say that they would engage in a questionable selling practice even when they themselves did not believe the practice to be unethical. Respondents were somewhat more likely to form intentions consistent with their judgment that the questionable practice was morally acceptable when the ethical climate was characterized by an emphasis on team/friendship.     

Ethical work climate,employee commitment and proactive customer service performance: Test of the mediating effects of organizational politics

This study examined the mediating effects of organizational politics on the relationships between ethical work climate and two employee outcomes: affective commitment and proactive customer service performance. Using 200 survey responses collected from six shopping malls, we found that perceived ethical work climate had a direct effect on employee perceptions of organizational politics, affective commitment and proactive customer service performance. Moreover, perceived organizational politics partially mediated the relationship between ethical climate and affective commitment, but not that between ethical climate and proactive customer service behavior. We recommend retailers develop ethical climate to strengthen their competitive advantage.     

Withdrawal Behaviors Syndrome: An Ethical Perspective

This study aimed to elucidate the withdrawal behaviors syndrome (lateness, absence, and intent to leave work) among nurses by examining interrelations between these behaviors and the mediating effect of organizational commitment upon ethical perceptions (caring climate, formal climate, and distributive justice) and withdrawal behaviors. Two-hundred and one nurses from one hospital in northern Israel participated. Data collection was based on questionnaires and hospital records using a two-phase design. The analyses are based on Hierarchical Multiple Regressions and on Structural Equation Modeling with AMOS. Affective commitment was found to mediate the relationship between different dimensions of nurses’ ethical perceptions (caring climate, formal climate, and distributive justice) and their intent to leave work. Lateness was found to be positively related to absence frequency which was found negatively related to intent to leave. Males were late more frequently than females, while seniority was related only to absence frequency. The findings indicated that each withdrawal behavior exhibits unique relationships. The results may help policy makers to focus on improving the ethical environment in order to increase nurses’ commitment and reduce their intent to leave. Improving the ethical environment may be achieved through ethical education for nurses which may promote ethical considerations becoming an integral part of nurses’ work.     

The influence of ethical climate on marketing employees' job attitudes and behaviors

In this study, two data sets were used to test the validity of the Babin, Boles, and Robin (Babin BJ, Boles JS, Robin DP. Representing the perceived ethical work climate among marketing employees. J Acad Mark Sci 2000;28(3):345-358.) measure of ethical work climate and its relationship with role stress, pay satisfaction, supervisor satisfaction, organizational commitment, performance, and turnover. The results indicated that ethical work climate is a multidimensional construct and that its dimensions influence marketing employees' job attitudes and job behaviors. Facets of job satisfaction and organizational commitment mediated the relationship between ethical work climate and turnover intentions and turnover.     

The Relationship between Ethical Climate and Ethical Problems within Human Resource Management

The study examines the relationship between the strength of an organizationÕs ethical climate and ethical problems involving human resource management. Data were collected through a survey of 1078 human resource managers. The results indicate a statistically significant negative relationship between the strength of an organization'ss ethical climate and the seriousness of ethical violations and a statistically significant positive relationship between an organization'ss ethical climate and success in responding to ethical issues. Thus, interventions that strengthen an organization'ss ethical climate may help manage ethical behavior within organizations.     

Perceptions of the Ethical Climate in the Korean Tourism Industry

This study investigates the ethical climate types presented in the Korean tourism industry, the differences in the perceptions of these ethical climate types based on individual/organizational characteristics, and the influence of ethical climate types based on job satisfaction/organizational commitment. Empirical findings of this study identify six ethical climate types and demonstrate significant difference and significant influence of the proposed relationships. This research contributes to the existing body of academic work by using empirical data collected from 820 respondents across 14 companies within the Korean tourism industry, to demonstrate the relationship between actual ethical climate types and ethical climate related factors. The findings of this study identify the new factor ‹moral caring,’ which describes an environment characterized by decisions that maximize collective interest, but based on an individual employee’s personal values and ethics. Such a factor has important implications for the service industry, where face-to-face encounters typify the relationship between employee and consumer.     

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.     

Business Ethics: A Study of the Moral Reasoning of Selected Business Managers and the Influence of Organizational Ethical Climate

Since manager's decisions impact organizational goals and organizational ethical behavior, this researcher investigated the degree to which there are differences in the moral reasoning ability of business managers of selected industries and whether there are significant differences between top, middle, and first-line management levels. To determine the relationship between managers' locus of control and their moral reasoning ability, this study considered three independent variables: reported organizational ethical climate, locus of control, and selected demographic and institutional variables. For a foundation, this researcher relied on Kohlberg's theory of moral development, Victor and Cullen's ethical work climate theory, and Rotter's theory of internal—external locus of control (which evolved from Carl Jung). The short form of Rest's DIT instrument measured the moral reasoning abilities of the participants. The selected demographic and institutional variables (age, work tenure, education, gender, management level and industry category) provided the useful information to investigate these relationships of moral reasoning ability of individual managers. A survey questionnaire was sent to 400 managerial and executive level employees at a random sample of Fortune 500 firms throughout the United States: Dun and Bradstreet provided the researcher with a proportional stratified random sample of these 400 managerial and executive level employees at a variety of organizations. Interestingly, women in this study exhibited slightly higher (more external) mean I—E scores and (more principled) higher mean “P” score than men. While both of these results were anticipated, neither was significant. However, one major finding of this study was the statistically significant relationship between age and perceived organizational ethical climate types (Caring, Law and Code, Rule, Instrument, and Independence). Another major finding revealed a statistically significant relationship between management levels and organizational ethical climate.     

The effects of ethical climate on organizational identification, supervisory trust, and turnover among salespeople

This study examined how an ethical work climate influences salespersons' organizational identification, supervisory trust, organizational commitment, turnover intentions, and turnover. Using a sample of 393 salespeople, the results found that facets of an ethical work climate are related directly to supervisory trust and organizational identification. One aspect of an ethical work climate, ethical norms, was related directly to turnover. These results indicate that an ethical work climate can directly affect salespersons' job attitudes and outcomes. The results indicate the importance of measuring ethical work climate from a multi-dimensional perspective.     

Exploring the unintended negative impact of an ethical climate in competitive environments

To attain short-term performance, sales managers must motivate their salesforce to close deals (often through use of intra-firm competition). At the same time, to maintain long-term relationships, they must promote a highly ethical selling environment (which may be incongruent with use of intra-firm competition). The present study examines the interactive relationship between competitive psychological climate and ethical psychological climate in predicting salespeople’s ethical intentions and behaviors toward customers. A unique dyadic data set is used to predict salesperson ethical intentions and actual salesperson ethical behaviors reported by customers. For ethical intentions, an “executive control” perspective predicts improved ethical intentions toward customers. However, a “depletion” perspective predicts reduced ethical behavior during actual customer interactions. This result is provocative as fostering an ethical climate in conjunction with a competitive climate is found to reduce ethical behaviors in the eyes of customers, a finding clearly counter to what managers intend.     

Perceptions of ethical work climate and person-organization fit among retail employees in Japan and the US: A cross-cultural scale validation

International retailers can only be successful if they understand similarities and differences between cultures. This study compares retail employees' perceptions of ethical work climate and person-organization fit in the U.S. with those of the same employee type in Japan. The results can help retailers understand employee perceptions of their relationship with the firm. An important aspect of this research involves testing the cross-cultural validity of the ethical work climate (EWC) and person-organization fit (POF) scales. Findings suggest that these scales are valid in both different national contexts and can also be used to compare differences between the cultures. Significant differences were noted in the EWC and POF between retail employees in Japan and the U.S. The relationship between EWC and POF varies significantly for employees in Japan and the U.S.     

The Link Between Ethical Climates and Managerial Success: A Study in a Polish Context

This study examines perceptions of ethical climate and ethical practices in a sample of Polish organizations and the relationship between ethical climate and behaviors believed to be associated with successful managers. A survey of Polish managerial employees (N = 200) indicated that “efficiency” was the most reported, and “professionalism” was the least reported ethical climate type. A majority of the respondents (61.5 %) perceived successful managers as being ethical, and in particular, those that believed that their organization had a “professionalism” and “independence” climate perceived a strong positive link between success and ethical behavior. Implications of these findings are then discussed.     

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.     

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.     

Perceptions of Organizational Ethics as Predictors of Work Absence: A Test of Alternative Absence Measures

The study examined the distinction between two traditional work absence measures: frequency, reflecting voluntary absence, and duration, reflecting non-voluntary absence. The two measures were compared in a test of the relationship between work absence and employees’ perceptions of organizational ethics. Questionnaires and archive data were collected from 1,016 teachers in Israel. Organizational ethics was represented by three variables: ethical climate (caring and formal), organizational justice (distributive and procedural), and teacher’s tendency to misbehave. Results showed that four ethical constructs (caring climate, formal climate, tendency to misbehave, and procedural justice) were related to absence frequency, while only one (caring climate) was related to absence duration. The findings add to previous research on the distinction between voluntary and involuntary absence measures, and the superior sensitivity of frequency over duration as a measure of voluntary absence. In practice, the results may encourage principals and managers to create ethical workplaces to minimize absence frequency.     

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.     

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.     

An Empirical Examination of the Relationship Between Ethical Climate and Ethical Behavior from Multiple Levels of Analysis

Victor and Cullen (1988) identified several dimensions of ethical climate that exist in organizations and organizational subunits. We tested the relationship between these dimensions of ethical climate and ethical behavior at different levels of analysis. Using Within and Between Analysis (WABA) (cf. Dansereau, Alutto and Yammarino, 1984), partial support was found for a relationship between dimensions of ethical climate and ethical behavior.     

Cross-Domain Effects of Ethical Leadership on Employee Family and Life Satisfaction: the Moderating Role of Family-Supportive Supervisor Behaviors

Drawing on the work–family enrichment theory, the present study investigates the cross-domain effects of ethical leadership on employees’ family and life satisfaction. Moreover, it focuses on the mediating role of work–family enrichment (WFE) and the moderated mediation process of family-supportive supervisor behaviors (FSSB) underlying the relationship between ethical leadership and employees’ family and life satisfaction. Using a sample of 371 employees and their immediate supervisors in China, we found that WFE mediated the relationship between ethical leadership and employee-rated and supervisor-rated family and life satisfaction. Moreover, FSSB positively moderated the relationship between ethical leadership and WFE, such that the relationship was strengthened when FSSB were higher. Furthermore, the mediations of WFE between ethical leadership and employee-rated and supervisor-rated family and life satisfaction were also positively moderated by FSSB, such that the indirect effects were stronger when FSSB were higher. The theoretical and managerial implications of our findings are further discussed.