Ethical Organizational Culture Research Articles

PENGARUH BUDAYA ORGANISASI ETIS TERHADAP ORGANIZA-TIONAL CITIZENSHIP BEHAVIOR (OCB) DENGAN KOMUNIKASI TRANSPARAN SEBAGAI VARIABEL INTERVENING PADA PERUS-AHAAN PERBANKAN DI KABUPATEN GRESIK

Digitalization has affected all aspects of business including the banking business. Digitalization has increased efficiency in work, especially regarding the need for human resources. Digitalization has reduced the quantity of human resources needed thereby increasing the demand for quality employees. One of the required employee characteristics is high organizational citizenship behavior (OCB). This study analyzes the influence of ethical organizational culture on OCB with transparent communication as an intervening variable in banking companies in Gresik district. Data were collected from 160 respondents using a non-probability sampling technique using purposive sampling. SEM-PLS is used in the analysis of research data. The research results obtained are hypotheses 1 and 2 are accepted, while hypotheses 3 and 4 are rejected. The results also show that ethical organizational culture has a positive and significant effect on transparent communication, ethical organizational culture has a positive and significant effect on organizational citizenship behavior, transparent communication has a positive but not significant effect on organizational citizenship behavior, and transparent communication has no mediating effect on organizational culture. ethical on organizational citizenship behavior.

Exploring leadership and organizational culture’s impact on CSR performance through organizational behavior

This paper explores the relationship between organizational behavior, leadership styles, organizational culture, and corporate social responsibility (CSR) outcomes by synthesizing relevant academic literature and real-world case studies. The growing emphasis on CSR in the business environment has led to a greater understanding of the intricate connections between an organization’s internal processes and its capacity to deliver effective CSR initiatives. The primary objectives of this study are to identify key indicators of successful CSR initiatives, examine the role of leadership styles in driving CSR performance, and analyze the impact of organizational culture on CSR outcomes. The findings reveal that employee engagement, ethical organizational culture, and committed leadership significantly influence CSR performance, while the case studies demonstrate how organizations with strong cultures of social responsibility can achieve successful CSR initiatives and create lasting positive impacts on society and the environment. This study explores the relationships between organizational behavior, leadership, culture, and CSR performance (Aguinis & Glavas, 2012; McWilliams & Siegel, 2001), providing insights and recommendations for enhancing CSR initiatives and their societal impact. The research method applied involved a comprehensive literature review, analyzing and synthesizing academic publications and real-world case studies to explore the relationships between organizational behavior, leadership styles, culture, and CSR outcomes. By providing valuable insights and recommendations, this paper aims to guide organizations in enhancing their CSR performance and contributing to a sustainable future for all stakeholders.

Gender, Religiosity and Internal Whistle blowing Intentions in the Nigeria Banking Industry

This research investigated the correlation between gender, religion, and internal whistle blowing intents within the Nigerian banking sector. The study only used primary data obtained via the distribution of a meticulously designed questionnaire. The research was carried out at the headquarters of several banks situated in Lagos. The researchers used a random sample approach to pick the banks for inclusion in the study. Subsequently, the workers of these banks were purposively chosen due to their essential role in the research investigation. The Yamane formula was used in order to ascertain the appropriate sample size, which was determined to be 397 workers. The examination of multiple stepwise regression (MSR) revealed that the coefficient of determination (R2) was 0.024. Additionally, the F-statistic, with degrees of freedom (2, 394), was found to be 4.805, and the associated p-value was less than 0.01. The study revealed that gender had a favourable effect (β1=0.105), but religion demonstrated a negative contribution (β0=-0.130). Therefore, it can be concluded that the enhancement of internal whistleblowing intents within the Nigerian banking business is favourably impacted by gender, whereas religion has a negative effect. The study thus suggests that in order to enhance internal whistleblowing intentions in the Nigerian banking sector, organizations should adopt gender-specific training and awareness programs, customize whistleblowing policies to address gender-related issues, establish communication channels that are inclusive and respectful of religious beliefs, provide cultural competency training, cultivate an ethical organizational culture, and regularly evaluate mechanisms in collaboration with religious leaders. Moreover, doing additional study, particularly longitudinal studies, has the potential to provide more profound understandings of the intricate dynamics between gender, religion, and whistleblowing behaviours. This, in turn, may inform more nuanced suggestions for organizational practices.

Determinants of Fraud Financial Statements on State Owned Enterprise

The lack of control from internal audits and bad organizational culture will lead to fraud and the habit of cheating behavior. The internal audit process is carried out to get certainty of correct and accurate information in the preparation of financial statements following Indonesian IFRS (PSAK). This study aims to inspect the determinants of financial statement fraud with case studies at state-owned-entreprise PT POS Indonesia Regional II. The population of respondents to this research is employees of PT. Pos Indonesia (Persero) works in the Internal Control Unit section of the Jakarta Regional II working area. Data analysis using the Partial Least Square (PLS) approach using the help of the SmartPLS program. PLS is a model of Structural Equation Modeling (SEM) equations based on components or variants. The outcomes showed that internal audit variable had a significant effect on financial reporting fraud. At the same time, the effectiveness or strength of the organization's internal control system and ethical culture do not affect financial reporting fraud. The after-effect of this study can be used to improve existing internal control procedures and organizational ethical culture.

Determinants of Whistleblowing Within Local Government’s Internal Auditors

The effectiveness of whistleblowing as a part of organization’s internal control depends on the employee’s willingness to become whistleblowers. This research was conducted to examined effect of several individuals and contextual factors of local government’s internal auditors on the whistleblowing intention. Using the theory of planned behavior (TPB), the individual factors in this research were attitudes towards whistleblowing, subjective norms, and perceived whistleblowing control. The prosocial behavior theory was used to explain contextual factors such as independence commitment and public service motivation. Using stratified random sampling, we obtained 201 questionnaires from the population of the local government’s internal auditors in West Kalimantan Province. We used PLS-SEM with higher-order constructs to explain the relationship between components in the model. The research found that only three factors affected whistleblowing intentions: attitudes towards whistleblowing, subjective norms, and perceived whistleblowing control. The conclusion of this research indicates the importance of building an organizational ethical culture, designing definite reporting mechanisms, ensuring the trust of report follow-ups, and guaranteeing protection for whistleblowers.

Moral Potency Profiles in the Context of Ethical Organizational Culture: A Multi-Sample Study

Moral potency is a critical factor for individual’s conation to act based on their moral judgments thus inhibiting or prohibiting ethical behavior. It is a three-dimensional individual psychological state and resource consisting of moral ownership, moral efficacy, and moral courage. However, what remains a black box is how moral potency varies among subgroups (i.e., profiles) in an organization, and how the profiles are linked with individuals’ perceptions regarding the ethicality of their organizational culture. Our data consisted of three individual samples that enabled us to study the focal phenomena in different contexts (Top sports, Leaders, Followers). Individual latent profiles of moral potency were estimated based on the three dimensions. In addition, we used regression analyses to study the relationship between different moral potency profiles and ethical culture. Three moral potency profiles were identified among all three samples: Average, Below average, and Above average. Sample 3 (Followers) also included a fourth moral potency profile: Low. Our findings provide strong support for the relationship between moral potency profiles and ethical organizational culture. We contribute to the discussion on moral potency in different contexts and discuss how contextual factors, namely ethical organizational culture can effect moral potency profiles.

Persepsi pegawai pemerintah mengenai faktor-Faktor yang mempengaruhi fraud di sektor pemerintahan kabupaten sidoarjo

This study aims to examine the effect of Internal Control, Enforcement of Regulations, Compensation Suitability, Organizational Commitment, and Organizational Ethical Culture on Fraud in the government sector of Sidoarjo Regency empirically. This study used quantitative method. This study used primary data that obtained from the distribution of questionnaires. The technique that had taken in this study is the census sampling technique (saturated sampling), so the research sample obtained 161 respondents including government employees who work in finance and procurement of goods/services at the Sidoarjo Regency government agency office. Based on the tests that had been carried out, the results of the study showed that the variables of regulatory enforcement, compensation suitability, and organizational ethical culture have a positive effect on fraud, while the variables of internal control and organizational commitment do not affect fraud.

Effect of CEO transformational leadership on organizational ethical culture and firm performance: the moderating effect of competitive intensity

Purpose The purpose of this study is to adopt the upper echelon theory to analyze the effect of chief executive officer (CEO) transformational leadership on organizational ethical culture and its subsequent impact on firm performance. The study also integrates the knowledge from the structure–conduct–performance paradigm to test whether the high degree of competitive intensity that firms experience could weaken the effect of organizational ethical culture on firm performance. Design/methodology/approach Online survey data were obtained from firms in Thailand that were randomly selected from the directory provided by the Department of Business Development (n = 200). Partial least squares structural equation modeling was used to analyze the data. Findings Organizational ethical culture significantly meditates the effect of CEO transformational leadership on firm performance. Moreover, the moderating effect analysis illustrates that the positive effect of organizational ethical culture on firm performance tends to be lower when firms have a high level of competitive intensity in the market. Originality/value Overall, this study adds new knowledge to the literature by showing that, although ethical culture created by transformational leaders can lead to high firm performance, the market environment in terms of competitive intensity could mitigate this benefit.

Haus Liebe brothel: ethical decision-making in a foreign culture

Theoretical basis The authors believe the theoretical foundations for this case study lie in the following two disciplines, primarily, but could be expanded to religion and organizational culture:i. Ethical decision-makingii. Cross-cultural competenceiii. Leadership Research methodology This is an actual case, and the fact pattern and timeline occurred as depicted. The first author is the protagonist, Lieutenant Colonel (LTC) Shawn Browning. The names of case characters have been disguised. The second and third authors are colleagues of the first author. This case was tested in three undergraduate organizational behavior and leadership classes at the United States Military Academy at West Point. Case overview/synopsis This disguised case follows US Army Officer LTC Shawn Browning, leader of a prominent US Army base located in Germany. As the commander of US Army Garrison Schweinfurt, LTC Browning was responsible for the health and welfare of 10,000 residents, including soldiers, family members and civilian employees. A community member lodged a complaint against a brothel named Haus One (a legal establishment under German law) located adjacent to the base and near family housing and the base elementary school. LTC Browning had the authority to render the brothel off-limits to US personnel, and he took the necessary steps prior to rendering a decision, including the appointment of a review board to investigate the situation and provide a recommendation. The board recommended not placing Haus One off-limits. The case focuses on LTC Browning’s values and his desire to ensure the welfare of his community while adhering to local legal and cultural norms. Cross-cultural and ethical issues surface throughout the case, which concludes with LTC Browning’s pondering of how to make a final decision. Complexity academic level The authors believe this is targeted at undergraduate students with some background in ethical decision-making, organizational culture and cross-cultural competence.

Virtuousness in Sports Organizations: Examination of Ethical Organizational Culture and Its Virtues

The purpose of this paper is to examine the ethical organizational culture of top sports organizations in Finland. We were especially interested in how employees of sports organizations evaluate perceptions of ethical organizational culture and perceive specific ethical organizational virtues. We applied a mixed methods approach. We gathered the empirical material through questionnaires and interviews with representatives from Finland’s top sports organizations. The findings show that the questionnaire participants evaluated the perceptions of ethical organizational culture of the Finnish top sports organizations as being quite ethical. The findings also show that the ethical organizational virtues of transparency, discussability, congruency of management, and supportability have a special role in maintaining and developing but also challenging organizational ethics in sports organizations. This study contributes to the discussion on ethical organizational virtues and deepens the understanding of the virtuousness of organizations in the field of sports management research.

Toward a Diagnostic Tool for Organizational Ethical Culture With Futures Thinking and Scenario Planning

The literature on futures studies scarcely mentions the use of scenario planning in organizational ethics. By gathering and analyzing diverse macro (contextual) and micro (transactional) points of view, here called “partial truths,” this article investigates how scenario planning could be used as a complementary tool to diagnose disruptions that may impact an organization's ethical culture. We conducted futures thinking interviews with 16 managers in a multinational European energy company and its South American subsidiary, and followed up the research with a scenario planning intervention with managers participating in an ethics forum in the Basque Country. Through case studies, the research qualitatively describes the processes by which top management would utilize scenario planning methods to address business ethics in organizational dynamics. The combined study led to a framework of pragmatic ethics and systems thinking that broadens our understanding of the main themes that lead to disruptions that managers believed would impact ethical culture. This analysis gives further insight into the potential use of scenarios to support corporations to engage in ethical deliberation and thereby enable ethical reinterpretation of company policies, strategies, and initiatives. We revealed fundamental biases toward the acceptance of scenario planning methods for business ethics in companies, dependent upon corporate values and goals, ethical concerns, cultural characteristics, and financial and time constraints. The reflections extracted from interviews and ethnographic research resulted in a template showing why some businesses would be open to scenario planning for corporate ethical culture, while others would be reluctant to engage in the activity.

Examining the Impact of Ethical Leadership on Teams Knowledge Sharing


 
 
 
 Purpose: This study aims to explore the relationship between the ethical leadership behavior of project managers working on the China Pakistan Economic Corridor (CPEC) and knowledge sharing in organizations, by relating Kant’s Ethical theory.
 Design/Methodology/Approach: The study was quantitative in nature. Data was collected through survey method from 310 employees working on CPEC projects. Results showed the positive impact of ethical leadership of CPEC project managers on moral motivation, ethical culture, and knowledge sharing in project teams..
 Findings: A very strong effect was observed with both mediators i-e; ethical culture of CPEC organization and moral motivation of project teams. Ethical Leadership of Project Managers working on the CPEC project in Pakistan significantly impact Knowledge Sharing in project teams.
 Implications/Originality/Value: The most significant implication as the authors observed that presence of a mediating effects of the project team’s moral motivation for knowledge sharing and ethical culture of CPEC Organizations in a relationship between the project manager’s ethical leadership and the project team’s knowledge sharing. The highest impact on knowledge sharing is observed when both mediator’s, direct and indirect effects are tested in a relationship between project managers' ethical leadership and the project team’s knowledge sharing.
 
 
 

Faktor yang Berpengaruh Terhadap Kualitas Audit Pada Inspektorat Pemerintah Kabupaten Badung

This study aims to determine the effect of Organizational Ethical Culture, Professionalism, Work Experience, Time Pressure and Locus of Control on Audit Quality at the Government Inspectorate of Badung Regency. The sample in this study were all auditors in the Government Inspectorate of Badung Regency, totaling 50 respondents. Determination of samples using saturated samples. The data analysis technique used was multiple linear regression analysis. The results of this study indicate that the variables of organizational ethical culture, professionalism, work experience have a positive effect on audit quality and time pressure has a negative effect on audit quality, while Locus of Control has no effect on audit quality.

FRAUD ON GOVERNMENT: REVIEWED FROM ORGANIZATIONAL ETHICAL CULTURE, LEADERSHIP STYLE, AND LOVE OF MONEY

Fraud is actions and acts against the law that usually occur in an organization. The purpose of this study was to see how the influence of organizational ethical culture, leadership style, and love of money on fraud in Pekanbaru City Government ASN. The population in this study is the State Civil Apparatus (ASN) at the Pekanbaru City Government, as many as 7417 people. This study uses quantitative methods. The sampling technique used purposive sampling, with the characteristics of ASN who have a position and have work experience in a position of at least 1 year.The data collection technique used a questionnaire by distributing it directly to the Pekanbaru City Government OPD and also sending a questionnaire via google form. There were 207 questionnaires analyzed. The results of data analysis using WarpPLS 7.0 show that organizational ethical culture and leadership style have a negative effect on cheating in Pekanbaru City Government ASN, while love of money has a positive effect on fraud in Pekanbaru City Government ASN. The results of this study have a contribution to the government in efforts to reduce and prevent fraud, especially in the government sector.

Innovation and misconduct in the pharmaceutical industry

The relationships between innovation and firm misconduct have received little attention. We contribute to advancing understanding of misconduct in several ways. First, we find support for previous research on firm misconduct that finds that strain can contribute to unethical firm behavior. Theoretically, our contribution provides evidence in support of the novel idea that strain that results from innovation deficits promotes misconduct. We also contribute to the growing literature on ethical organizational cultures by providing evidence linking weak ethical cultures in the pharmaceutical industry with increased harm to patients. A large body of non-quantitative literature argues that many pharmaceutical firms engage in misconduct in order to promote sales and overcome innovation deficits. We find support for the conclusion that misconduct constitutes a substitute for all measurable categories of drug innovation.

(Un)ethical behaviors of police officers in South Korea: a structural equation analysis

PurposeThis study aims examine to what extent four variable categories of individual ethical ideology, organizational ethical culture, superior's ethical quality and job satisfaction (JS) are causally linked to personal (un)ethical behaviors among South Korean police officers.Design/methodology/approachWith a stratified sampling technique, 687 surveys were collected from 16 major local police headquarters across the nation. The reliability and validity of the variables were checked. The structural equation modeling (SEM) is used to test the hypotheses.FindingsIdealism, principlism, utilitarianism and JS have a negative influence on unethical behaviors, whereas superior's unethical standards are positively associated with unethical behaviors.Practical implicationsThe findings can be applied as a reference to improve ethical framework to promote behaviors by enriching the higher level of personal ethical ideology, superior's ethical quality and principlism and utilitarianism by adding an ethics training course to the continuing education program for all officers and developing further education programs for police leadership to raise ethical awareness and quality.Originality/valueTo the authors' knowledge, the study is among the first studies with four comprehensive categories of relevant variables and adds understanding to (un)ethical behaviors of police officers.

Adaptation and evidence of validity of the corporate ethical virtues scale in Brazil: A measure of ethical culture in organisations

Introduction: Ethical culture stands out as an important variable in comprehending ethical norms and ethical behaviour at work. The Corporate Ethical Virtues (CEV) Scale is a widely used measure of ethical culture in organisations. This study aimed to adapt and validate the CEV Scale to a Brazilian context. Method. In Study 1 (n = 1.219), the CEV Scale was trans-lated and adapted, the reliability and the internal structure were tested and the discriminant validity of ethical climate measures was demonstrated. In Study 2 (n = 635), measurement invariance in two groups was demonstrated, and there was evidence of validity based on the relationships with related constructs. Results. The results indicated that the Brazilian ver-sion of the CEV Scale showed reasonable psychometric properties and provided evidence of convergent and discriminant validity. Conclusion. This measure can be used by managers and consultants to diagnose ethical organisational culture.

Role of ethical organisational culture on employee job satisfaction: an empirical study

Role of ethical organisational culture on employee job satisfaction: an empirical study

Culture and internal communication in Chile: Linking ethical organizational culture, transparent communication, and employee advocacy

The current study examines how an ethical organizational culture relates with employee advocacy behaviors through the mediating role of transparent communication and perceived relationship investment. Through a quantitative survey with 350 employees who work for a variety of organizations, the study’s results indicated that an ethical organizational culture plays a critical role in nurturing transparent communication and perceived relationship investment, which in turn, cultivate employee advocacy behaviors. Additionally, the impact of transparent communication on employee advocacy is partially mediated by perceived relationship investment. Relevant theoretical and practical implications are discussed.

T he E ffect of Organizational Ethical Culture as A Moderating Variable in Ethical Decision Making o n Tax Consultants

This study aims to analyze the effect of experience on ethical decisions and the influence of organizational ethical culture in moderating the relationship between experience and ethical decisions in tax consultants in the Sumatran Region including Lampung, Bangka Belitung, Palembang and Jambi consisting of 139 respondents. The analysis technique uses SEM WarpPLS with the help of the WarpPLS 7.0 application. The findings in this study, indicate that there is no significant effect between experience and ethical decisions and in an indirect relationship between experience and ethical decisions with organizational ethical culture as a moderating variable showing the results, organizational ethical culture can moderate the relationship with a significant influence. The research has met the requirements of the SEM-WarpPLS fit model.