Institutionalization of ethics and its consequences: a survey of marketing professionals

Abstract

Because of increasing ethical problems in business, organizations have tried to control these problems by institutionalizing ethics, such as by creating new ethics positions and formulating codes of ethics. In this study, the authors develop a scale for measuring the institutionalization of ethics in organizations and assess it for dimensionality, reliability and validity. Two separate studies are conducted, both using samples drawn from an American Marketing Association practitioner population. In Study 1, using a sample of 126 marketing practitioners, we performed exploratory factor analysis on 44 institutionalization items resulting in two separate dimensions of the institutionalization of ethics construct: implicit and explicit institutionalization. Using a national sample of 306 marketing practitioners in Study 2, we performed confirmatory factor analysis on these two dimensions and investigated the effects of these dimensions on perceived importance of ethics, job satisfaction, esprit de corps and organizational commitment. Implicit institutionalization had a significant direct affect on all four of these constructs. On the other hand, explicit institutionalization significantly influenced only the perceived importance of ethics.