Ethical Organizational Culture Research Articles

Sharing Strategic Decisions: CEO Humility, TMT Decentralization, and Ethical Culture

Humility is increasingly recognized as an essential attribute for individuals at top management levels to build successful organizations. However, research on CEO humility has focused on how humble chief executive officers (CEOs) shape collective perceptions through their interactions and behaviors with other organizational members while overlooking CEOs’ critical role in making strategic decisions. We address this unexplored aspect of CEO humility by proposing that humble CEOs influence decision-making decentralization at the top management team (TMT) and subsequently promote an organizational ethical culture. Using a sample of CEOs and TMT members from 120 small- and medium-sized enterprises, we find strong support for our hypotheses. We discuss important implications for research on CEO humility and strategic leadership.

Longitudinal Patterns of Ethical Organisational Culture as a Context for Leaders\u2019 Well-Being: Cumulative Effects Over 6 Years

The aim of this longitudinal study was to investigate the temporal dynamics of ethical organisational culture and how it associates with well-being at work when potential changes in ethical culture are measured over an extended period of 6 years. We used a person-centred study design, which allowed us to detect both typical and atypical patterns of ethical culture stability as well as change among a sample of leaders. Based on latent profile analysis and hierarchical linear modelling we found longitudinal, concurrent relations and cumulative gain and loss cycles between different ethical culture patterns and leaders’ well-being. Leaders in the strongest ethical culture pattern experienced the highest level of work engagement and a decreasing level of ethical dilemmas and stress. Leaders who gave the lowest ratings on ethical culture which also decreased over time reported the highest level of ethical dilemmas, stress, and burnout. They also showed a continuous increase in these negative outcomes over time. Thus, ethical culture has significant cumulative effects on well-being, and these longitudinal effects can be both negative and positive, depending on the experienced strength of the culture’s ethicality.

Measuring Ethical Organizational Culture: Validation of the Spanish Version of the Shortened Corporate Ethical Virtues Model

A key issue in the business ethics field is the design of effective measures for assessing the ethical culture of organizations. The Corporate Ethical Virtues Model (CEV), developed by Kaptein in 2008, is an instrument for measuring ethical culture, and has been applied, adapted and validated in different contexts. In 2013, DeBode, Armenakis, Field and Walker developed the CEV–S, a shortened version of the original scale. Both the CEV and CEV–S assess eight dimensions based on corporate ethical virtues: clarity, congruency of supervisors, congruency of senior management, feasibility, supportability, transparency, discussability and sanctionability. The objective of this study is to present a Spanish version of the CEV–S and its validation process. The scale was applied to two samples of 114 and 193 Colombian employees from two companies operating in the services sector. The confirmatory factor analyses revealed a good fit for the eight-factor structure of the Spanish CEV–S and the statistical tests applied showed good levels of reliability and validity for this scale. The adequate psychometric properties shown by the Spanish CEV–S may support its use in future research to measure organizational ethical culture in Spanish-speaking settings.

Knowledge workers' existential affirmation and innovativeness: a Kierkegaardian redescription of Drucker

PurposeAlthough existing studies demonstrate positive relationships between ethical cultures and innovativeness, their explanations of why an ethical culture leads to innovativeness are limited. This study explores the relationship between ethical organizational culture and knowledge workers' innovativenessDesign/methodology/approachBased on Kierkegaardian existential philosophy, this study proposes a research model that employs knowledge workers' existential affirmation as the link between ethical culture and innovativeness. The main hypothesis proposed in this study is that ethical organizational culture offers knowledge workers the opportunity to find their existential affirmation, which leads them to become more innovative. A structural equation modeling analysis is based on data collected from a survey of 348 knowledge workers from small and medium-sized enterprises (SMEs) in different hi-tech industries.FindingsThe findings suggest that among the four subdimensions of an ethical organizational culture, ethics training and awareness raising had the strongest relationships with knowledge workers' existential affirmation, which, in turn, had a significant relationship with their innovativeness.Originality/valueBased on this philosophical reflection, this study develops a research model that examines knowledge workers' existential affirmation as the factor that links ethical organizational culture and knowledge workers' innovativeness. The authors test ethical organizational culture as an environment that allows knowledge workers to validate their existential affirmation. Further, they test the link between knowledge workers' existential affirmation and their innovativeness.

Ethics in Financial Service Industry as Panacea for Organizational Performance in Osogbo and Iree Metropolis, Osun State, Nigeria

The study investigates the argument and counterargument within the scientific discussion on ethics as the panacea to organizational performance in the financial service industry using ethical leadership, organizational ethical culture and public perception on ethics to measure organizational performance. The objective of this study is to examine the relationship between ethical leadership and organizational performance in Osogbo and Iree United Bank of Africa. Secondly, this study aimed at determining the relationship between organizational ethical culture and organizational performance in Osogbo and Iree United Bank of Africa. Thirdly, the study intends to establish the relationship between public perception of organizational ethics and organizational performance in Osogbo and Iree United Bank of Africa. The research questions formulated to guide this study are: What is the effect of ethical leadership on organizational performance in Osogbo and Iree United Bank of Africa; How does organizational ethical culture impacts organizational performance in Osogbo and Iree United Bank of Africa? What is the relationship between public perception of organizational ethics and organizational performance in Osogbo and Iree United Bank of Africa? This study adopted the survey research design and obtained its data from primary sources. The primary data were obtained through a questionnaire administered on 100 respondents of United Bank for Africa Plc, Iree and Osogbo branches. A simple random sampling technique was also used to conduct a personal interview on 50 customers of the bank. Regression analysis was used to test the hypotheses at a 0.05 level of significance. The study showed a positive and significant relationship between ethical leadership and organizational performance, organizational ethical culture and organizational performance, and public perception of ethics and organizational performance. The study, therefore, recommends that management should not only communicate organizational ethical values to employees in words but also in action; they should lead by example, proper attention should be placed on organization’s culture to ensure that it is ethical as employees are willing to do more in an organization with ethical culture and also, service industries in Nigeria must ensure that their organizations are managed in a way that will enhance a positive public perception.

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

The aim of this study is to understand impact of ethical culture of information technology (IT) organisation on employee job satisfaction. In this study, we have identified the constructs of ethical culture of IT organisations on the basis of review of literature and proposed a model indicating the relationship between the identified constructs and job satisfaction. The study is done especially for employees of IT organisations in Pune, India, based on a survey of 124 employees working in IT firms. We have analysed the impact of organisations' ethical culture constructs namely equal opportunity, fairness in promotion process, impartiality in grievance handling, ethical leadership, and ethical policy on employee job satisfaction. Results of the analysis revealed that ethical policy, impartiality in grievance handling, and fairness in promotion process have significant impact on job satisfaction of the employees, whereas equal opportunity and ethical leadership has no significant impact on job satisfaction of employees.

Ethical management and consumer choice: Lessons from the milk boycott

We study the impact of a boycott on one of the largest Korean dairy producers, triggered by the exposure of the firm's unethical management practices, on its product sales and prices. We find empirical evidence that the boycott had substantial and long lasting consequences. First, consumer utility from the boycotted products decreased significantly, reflecting consumers' strong willingness to take part in the collective action. In addition, consumers with lower income or larger family size participated in the boycott more actively. Second, our discrete choice demand model, which addresses both heterogenous effects of the boycott and price endogeneity, estimates that sales of the two boycotted products decreased by 7.9 million liters in total during the 10-month post-boycott period, whereas sales of competing non-boycotted products increased by 3 million liters in the same period. Third, the decrease in sales and revenue was less severe for the product for which the boycotted firm sharply cut the price; our counterfactual analysis predicts that the firm's post-boycott revenue loss would have been higher by 75.8 percent had the price cut not been made. Our findings emphasize top-level managers' role in fostering an ethical organizational culture within the firm as well as taking proper and timely countermeasures to curb losses incurred by a boycott.

PENGARUH BUDAYA ETIS ORGANISASI DAN INTEGRITAS TERHADAP KUALITAS AUDIT DENGAN SENSITIVITAS ETIKA AUDITOR SEBAGAI VARIABEL MODERASI PADA KANTOR AKUNTAN PUBLIK DI DENPASAR

The purpose of this study is to study and obtain evidence about the culture and organization associated with quality that is moderated by the ethical sensitivity of auditors at the Public Accounting Firm in Denpasar. Location of the study was conducted at the Public Accountant Office in Denpasar. The sampling technique used was purposive sampling, namely the determination of sampling with a specific purpose. Methods of data collection using questionnaires, interviews, observation and document recording. Testing the validity and reliability of the variables shows that the instrument variables are fully valid and reliable. The classic assumption test on the regression model shows that the data is normally distributed, does not contain heteroscedasticity and does not contain any multicollinearity.The results of the regression analysis show that the independent variables influence the variation of the variable preparation of financial statements (dependent). Hypothesis testing using the statistical test of t shows that the organizational ethical culture variable on audit quality shows the significance value of the t test of 0.020 which is smaller than α (real level) = 0.05, so it can be concluded that the organizational ethical culture is positive towards audit quality. Integrity variable on audit quality shows the significance value of t test of 0.019 which is smaller than α (real level) = 0.05, it can be concluded that the integration is positive for audit quality. The role of the auditor's ethical sensitivity in moderating the relationship of an organization's ethical culture to audit quality is approved by a significance value of 0.003 which concluded that the auditor's ethical sensitivity can strengthen the organizational ethical culture's relationship to audit quality. The role of the auditor's ethical sensitivity in moderating the relationship of integrity to audit quality is considered by a significance value of 0.038 which added to the ethical sensitivity of the auditor can increase the integrity competence of audit quality.

A NEW CONCEPTUAL MODEL: Integrating Ethical Leadership into the Assess, Challenge and Support (ACS) Model of Leader Development

Our paper discusses the need for continued focus on ethical leadership and the importance and benefits of ethical leadership development. We propose integrating ethical leadership development, that uses cognitive development theory, into the Center for Creative Leadership’s Assess, Challenge, and Support (ACS) leader development model to help address the continued failures of ethical leader development. Our extended framework includes values and morals as a component of the model, and ethical organizational culture as its backdrop, thereby incorporating an examination of ethical leadership into each component of the ACS model. We conclude with practical implications and suggestions for future research.

Building an Ethical Organizational Culture.

The success of a health care institution-as defined by delivering high-quality, high-value care, positive patient outcomes, and financial solvency-is inextricably tied to the culture within that organization. The ability to achieve and sustain alignment between its mission, values, and everyday practices defines a positive organizational culture. An institution that has a diminished organizational culture, reflected in the failure to consistently align management and clinical decisions and practices with its mission and values, will struggle. The presence of misalignment or of ethics gaps affects the quality of care being delivered, the morale of the staff, and the organization's image in the community. Transforming an organizational culture will provide a foundation for success and a framework for daily ethics-grounded operations in any organization. However, building an ethics-grounded organization is a challenging process requiring strong organization leadership and planning. Using a case study, the authors provide a multiyear, continuous step-by-step strategy consisting of identifying ethics culture gaps, establishing an ethics taskforce, clarifying and prioritizing the problems, developing strategy for change, implementing the strategy, and evaluating outcomes. This process will assist organizations in aligning its actions with its mission and values, to find success on all fronts.

THE CONCEPT OF EMPLOYEE'S HAPPINESS IN HUMAN RESOURCES MANAGEMENT: A SYSTEMATIC LITERATURE REVIEW

This study was carried out to reveal the importance of employee happiness in terms of Human Resources Management (HRM), to identify organizational concepts and job attitudes related to employee happiness, to accelerate studies on this issue, to guide future researchers and other interested people and to be useful in the literature. In this context, 48 articles published between 1995 and 2020 in the journal "Human Resource Management Review", which was scanned in the Science Citation Index (SCI), were examined through systematic literature review. In the light of the obtained findings, it has been observed that the concept of employee happiness is significantly related to the job attitude, the meaning of the job, the pleasure of work, entertainment at work, safe relationships, perceived justice, attachment styles, emotional loyalty, employee moods, employee cynicism, employee status, employee social skills, employee voice, employee loyalty, employee well-being, work experience, work stress, social relationships, health emotion, passion, high performance and loving job, ethical organizational culture, promotion-oriented self-control system, HR practices according to Miller's "Utilitarian Theory", Pro-Social Rule Breaking (PSRB) and Sustainable HRM strategies. Also, in the conclusion part of the study, suggestions developed for organizational concepts determined to be related to employee happiness in the literature are included.

PENGARUH PENEGAKAN PERATURAN, BUDAYA ETIS ORGANISASI DAN KOMITMEN ORGANISASI TERHADAP KECENDERUNGAN KECURANGAN

This study aims to examine the effect of enforcement regulations, organizationalethical culture, organizatioal commitment to the tendency of fraud based on fraudtriangle theory in Yogyakarta City Goverment . The data used is primary. Multipleregression analysis is the analytical method used. The sampling technique usedin this study was the purpose sampling method and obtained 83 data samples.The regression test results show that organizational commitment negatively affectthe tendency of fraud in the public sector. Whereas enforcement regulations,organizational ethical culture have on effect the tendency of fraud.

Current Status of Clinical Ethics and Creation of Ethical Organizational Culture

When an ethical problem arises in clinical practice, the process of discussion aimed towards a solution is important. The decision should be made by a multidisciplinary team rather than by an individual clinician. In clinical practice, highly feasible solutions are required. Clinical ethics consultation is useful as a service that supports the decision-making process. A future issue is to foster an organizational culture of openness that enables professionals to solve the problem in practice.

Determinants of Fraud Tendency in the Management of Village Funds

This study aimed to determine the effect of internal control system, rationalization and information asymmetry on fraud tendency in the management of village funds with the organizational ethical culture as a moderating variable. The population in this study was 61 village officials in Kejajar Sub-district, all members of the population were sampled. Data collection technique used a questionnaire. The data analysis method used descriptive analysis and moderation regression analysis with test of absolute difference value. The results showed that the internal control system had a significant negative effect and rationalization had a positive and significant effect, while the information asymmetry did not affect the fraud tendency in the management of village funds. The organizational ethical culture failed to moderate the relationship between the internal control system and the rationalization of the fraud tendency in the management of village funds, but was able to weaken the relationship of information asymmetry on the fraud tendency in the management of village funds. Suggestions in this study are for village officials / PPKD to minimize fraud by improving internal control systems through the implementation of SOPs, good management, developing ‘village partner’ applications, and not justifying any form of fraud.

Organizational Ethical Culture, Moral Reasoning: Pengaruhnya terhadap Ethical Decision Making dan whistleblowing intention

This study aims to investigate the factors that can encourage individuals to do whistleblowing. Factors that are predicted to affect whistleblowing intention are organizational Ethical Culture and Moral intensity and Ethical Decision Making. The sample in this study were 63 respondents. Total questionnaires distributed were 78 questionnaires, but as many as 65 questionnaires were returned, there were 2 questionnaires that were not filled out completely, so were excluded from testing. Data analysis techniques in this study used SEM-PLS. The results of this study found a positive effect of organizational ethical culture on whistleblowing intention. This shows that organizations that have a high ethical culture tend to have high whistleblowing intentions. The next finding is that moral intensity has a positive effect on ethical decission making and whistleblowing intention. This shows that individuals who have high moral intensity decisions that are made tend to be more ethical. The final finding in this research is ethical decision making which has a positive effect on whistleblowing intention. the higher the Ethical Decision Making, the higher the Whistleblowing Intention. When someone is able to make decisions ethically, it will go hand in hand with the whistleblowing intention
 

القيادة التوزيعية لدى قادة المدارس الابتدائية بمدينة بريدة وعلاقتها بالرضا الوظيفي للمعلمين

تشکل القيادة التربوية المرتکز الأساسي لنجاح أي نظام تربوي، والوسيلة الفاعلة لجعل التعليم أکثر استعدادا لتلبية احتياجات خطط التنمية التربوية والاقتصادية والاجتماعية، وقد تزايد الاهتمام في الآونة الأخيرة بمفهوم القيادة التوزيعية کنمط قيادي يساعد قادة المدارس على تحقيق الرضا الوظيفي لدى المعلمين، الذي يعتبر مسألة مهمة للفرد والمجتمع، فرضا المعلم عن عمله يعتبر الأساس الأول لتحقيق توافقه النفسي والاجتماعي وزيادة ولائه للمؤسسة التعليمية، ومن هنا تظهر أهمية ومشکلة الدراسة في کونها تهدف إلى التعرف على العلاقة بين القيادة التوزيعية لدى قادة المدارس الابتدائية بمدينة بريدة وبين الرضا الوظيفي للمعلمين، واستخدمت الباحثة المنهج الوصفى (أسلوب الدراسات المسحية) بخطواته وإجراءاته؛ وذلک لمناسبته لتحقيق أهداف الدراسة، وتمثل مجتمع الدراسة في معلمي المرحلة الابتدائية الحکومية للبنين، وقد قامت الباحثة باختيار عينة الدراسة بالطريقة الطبقية العشوائية البالغ قوامها (556) معلما بنسبة (24%) من مجتمع الدراسة، کما طورت الباحثة لجمع بيانات الدراسة استبانة القيادة التوزيعية لقادة المدارس الابتدائية من وجهة نظر معلميها، واستبانة الرضا الوظيفي لمعلمي المدارس الابتدائية، وقامت الباحثة بحساب المعاملات العلمية للاستبانة، مثل صدق المحتوى، والاتساق الداخلي، ومعاملات الثبات باستخدام معامل ألفا لکرونباخ، وقد تميزت أدوات البحث بخصائص مناسبة، وقد أشارت النتائج إلى توفر مناخ عمل مناسب وثقافة تنظيمية جيدة، والاتجاهات القيادية التي يمارسها القادة تجاه المعلمين بدرجة متوسطة، کما أشارت إلى تدني تحقق أبعاد تفويض القادة لبعض من صلاحياتهم للمعلمين، الأبعاد الأساسية للقيادة التوزيعية للقادة لتطوير منظومة العمل المدرسي، وآليات التعاون المشترک بين القادة والمعلمين في التخطيط لسياسة المدرسة، وفيما يتعلق بالرضا الوظيفي للمعلمين بالمدارس الابتدائية بمدينة بريدة، فقد تحقق بدرجة متوسطة، کما توجد علاقة ارتباطية موجبة دالة إحصائيا بين القيادة التوزيعية لقادة المدارس الابتدائية بمدينة بريدة والرضا الوظيفي للمعلمين، وقد أوصت الباحثة بتنظيم دورات تدريبية لقادة المدارس وتوضيح أهمية تطبيق القيادة التوزيعية داخل العمل المدرسي، والاستعانة بالخبراء والمتخصصين في ابتکار أساليب إدارية حديثة من شأنها أن تمکن من توزيع مهام القيادة والعمل بروح الفريق وتحسين مستوى أداء الخدمة التعليمية بالمدارس لتحقيق الرضا الوظيفي لدى المعلمين. Distributive Leadership for Primary School Leaders in Buraidah and Their Relationship with The Job Satisfaction of Teachers Abstract Educational leadership is the necessary foundation for the success of any educational system. It is an effective means to make education more prepared to meet the needs of educational, economic, and social development plans. More attention has been given todistributive leadershipas a modern leadership style that helps leaders to achieve high performance in their institutions. Distributive leadership can help to increase job satisfaction for teachers, assuming that the teacher is considered the fundamental basis for making his psychological and social compatibility and increasing his loyalty to the educational institution. This study aims to identify the relationship between the distributive leadership of primary school leaders in Buraidah and the job satisfaction of teachers. The researcher used the descriptive approach (the survey method) because its steps and procedures are appropriate to achieve the goals of the study. The study population is the governmental primary stage teachers for boys; the researcher selected the study sample using a random sampling method of 556 teachers (24%of the study population). The researcher also developed two questionnaires to collect study data, the first one fordistributive leadership of primary school leadersfrom its teachers' point of view. The second was to check out the job satisfaction of primary school teachers. The researcher checked out the sociometric characteristics of the two questionnaires, such as content validity, internal consistency, and reliability coefficients using the Alpha Cronbach test. The research tools were valid and reliable. The results indicated the availability of a suitable working climate, an ethical organizational culture, and leadership trends practiced by leaders towards teachers with an average degree. It also pointed out that the dimensions ofdelegating some of the powers to teachers,basic dimensions of distributive leadership for leaders to develop the school work system,andmechanisms for cooperation between leaders and teachers in planning school policyhave not been achieved. Concerning job satisfaction for primary school teachers in Buraydah, it was achieved to a moderate degree. There is also a statistically significant positive correlation between the distributive leadership of primary school leaders in Buraidah and the job satisfaction of teachers. The researcher recommended organizing training courses for the leaders and explaining the importance of applying distributive leadership within the schoolwork to reach the job satisfaction of teachers.

Role of Human Resources in Building Ethical Organisational Culture

Business ethics has always been a primary determinant of organisational identity. With increasing instances of corporate wrongdoing and unethical behaviour, organisations do try to invest in corrective actions, but their emphasis tends to be on the ‘letter’, i.e. the legalities of operating a business within the law. However, there is a very strong influencer element that lies in the ‘spirit’, i.e. the values, thought and the practice embedded within the organisation culture that makes things right. This article deep dives into the enhanced role that the human resources (HR) function needs to play to nurture and develop an ethical organisation. This article is based on an interview with Dr Mukund Rajan, the Tata veteran who has held the office of the Chief Ethics Officer of the Tata Group. His views are supplemented with research findings on organisation practices supporting ethical culture.

The determinant of the financial fraud of the village fund management

We examine the relationship between compensation, morality, organizational ethical culture, and financial fraud. The respondents were fifty-two village officials in Weru Subdistrict, Central Java Sukoharjo District who were directly responsible for managing village funds. They were selected using a purposive sampling method. Data was collected by means of the questionnaire was distributed and then, the data were analyzed using Path analysis with WarpPLS software. We found that morality had a positive and significant effect on compensation and organizational ethical culture, as well as a negative and significant effect on financial fraud. Organizational ethical culture proved to have a negative and significant effect on financial fraud. Compensation does not have a significant effect on the ethical culture of the organization and financial fraud. The other result shows that the organizational ethical culture had proven to be a mediator of the relationship between morality and financial fraud. Meanwhile, there is no proven significant relationship between the suitability of compensation for financial fraud through the ethical culture of the organization. Also, the study confirmed that the morality and ethical culture of the organization are factors that can reduce the occurrence of financial fraud. Hence, the village government is expected to have better organizational morality and ethical culture. JEL Classification: G28, H83, M41 How to Cite: Fachrurrozie, Wahyudin, A., Nurkhin, A., Mukhibad, H., Kardiyem, Saputri,F. M. (2020). The determinant of the financial fraud of the village fund management. Jurnal Keuangan dan Perbankan, 24 (1), 95-105. DOI : https://doi.org/10.26905/jkdp.v24i1.3576

DAMPAK MEDIASI MORAL REASONING PADA PENGARUH ORGANIZATIONAL ETHICAL CULTURE TERHADAP KECENDERUNGAN KECURANGAN AKUNTANSI

The purpose of this study is to investigate the mediating effect of moral reasoning on the influence of organizational ethical culture on the tendency of accounting fraud. This research was conducted at manufacturing companies listed in the guide book PT. SEER. The sample in this study is the financial manager or accounting manager. The number of samples in this study were 63 respondents. Total questionnaires distributed were 78 questionnaires, but as many as 65 questionnaires were returned, there were 2 questionnaires that were not filled out completely, so were excluded from testing. The hypothesis in this study was tested using Structural Equation Modeling (SEM) with an alternative method of Partial Least Square (PLS) using WarpPLS 5.0 software. The results of this study indicate that organizational ethical culture has a positive effect on moral reasoning and the tendency of accounting fraud. The next finding is moral reasoning has a positive effect on the tendency of accounting fraud.

Team Ethical Cultures Within an Organization: A Differentiation Perspective on Their Existence and Relevance

Studies on the ethical culture of organizations have mainly focused on ethical culture at the organizational level. This study explores ethical culture at the team level because this can add a more detailed understanding of the ethics of an organization, which is necessary for more customized and effective management interventions. To find out whether various teams within an organization can have different ethical cultures, we employ the differentiation perspective and conduct a survey of 180 teams from one organization. The results show that there are significant differences between the ethical cultures of teams. These differences are relevant given the different relationships that were established between high and low clusters of team ethical culture and two outcome variables (i.e., the frequency of unethical behavior and employee responses to unethical behavior). The results also show that the dimensions of ethical cultures among teams have different patterns, which indicates the usefulness of using a multidimensional scale for capturing further differences among team ethical cultures.