Skip to main content
Log in

The Impact of Ethical Climate on Project Status Misreporting

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Without complete and accurate status information, a project manager’s ability to monitor progress, allocate resources effectively, and detect and respond to problems is greatly diminished, and this can lead to impaired project performance. Many different factors can contribute to intentional misreporting of status information by project members to the project manager. In this study, the impact of organizational ethical climate was assessed through the analysis of responses from 228 project members drawn from a variety of ongoing information systems projects. Our results revealed that project members who perceived their organization to be one in which rules are followed strictly tended to misreport less, while those operating in an environment dominated by personal self-interest tended to misreport more. Somewhat surprisingly, the existence of a caring, team-spirited environment did not appear to have an impact on misreporting behaviors. Implications for researchers and project managers are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

References

  • Ancona, D.G., & Caldwell, D.F. (1990). Beyond Boundary Spanning: Managing External Dependence in Product Development Teams. The Journal of High Technology Management Research, 1(2), 119–135. doi:10.1016/1047-8310(90)90001-K

    Article  Google Scholar 

  • Attanassiades, J.C. (1973). The Distortion of Upward Communication in Hierarchical Organizations. Academy of Management Journal, 16(2), 207–226. doi:10.2307/255323

    Article  Google Scholar 

  • Banerjee, D., Cronan, T.P., & Jones, T.W. (1998). Modeling IT Ethics: A Study in Situational Ethics. MIS Quarterly, 22, 31–60. doi:10.2307/249677

    Article  Google Scholar 

  • Bavelas, J.B., Black, A., Chovil, N., & Mullett, J.1990, Equivocal Communication (Sage, Newbury Park, CA).

    Google Scholar 

  • Bearden, W.O., Netemeyer, R.G., & Mobley, M.F.1993, Handbook of Marketing Scales. (Sage Publications, Newbury Park, CA).

    Google Scholar 

  • Chin, W.W. 1998, ‘The Partial Least Squares Approach to Structural Equation Modeling,’ in G. A. Marcoulides, ed., Modern Methods for Business Research, (Lawrence Erlbaum Associates, Nahwah, NJ), 295-336.

    Google Scholar 

  • Chin, W.W., & Frye, T.2001, PLS-Graph User’s Guide Version 3.0. (Soft Modeling Inc., Houston, TX).

    Google Scholar 

  • Chin, W.W., & Newsted, P.R.1999, ‘Structural Equation Modeling analysis with Small Samples Using Partial Least Squares,’ in Rick Hoyle, ed., Statistical Strategies for Small Sample Research, (Sage Publications), 307–341.

    Google Scholar 

  • Costigan, J.I., & Schmeidler, M.A.1984, “Exploring Supportive and Defensive Communication Climates” in J.E. Jones and W. Pfeiffer (eds.), Annual Developing Human Resources (University Associates, San Diego, California), 112-119.

    Google Scholar 

  • Cullen, J.B., Victor, B., & Bronson, J.W. (1993). The Ethical Climate Questionnaire: An Assessment of its Development and Validity. Psychological Reports, 73, 667–674.

    Google Scholar 

  • Denison, D.R. (1996). What is the Difference Between Organizational Culture and Organizational Climate? A Native’s Point of View on a Decade of Paradigm War. Academy of Management Review, 21(3), 619–654. doi:10.2307/258997

    Article  Google Scholar 

  • Flannery, B.L., & May, D.R. (2000). Environmental Ethical Decision Making in the U.S. Metal-Finishing Industry. Academy of Management Journal, 43(4), 642–662. doi:10.2307/1556359

    Article  Google Scholar 

  • Fornell, C.A. 1982, A Second Generation of Multivariate Analysis Methods, Vol. 1, (Praeger, New York, NY).

    Google Scholar 

  • Fornell, C., & Bookstein, F.L. (1982). Two Structural Equation Models: LISREL and PLS Applied to Consumer Exit-Voice Theory. JMR, Journal of Marketing Research, 19(4), 440. doi:10.2307/3151718

    Article  Google Scholar 

  • Fornell, C., & Larcker, D.F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. JMR, Journal of Marketing Research, 18(1), 39. doi:10.2307/3151312

    Article  Google Scholar 

  • Fritzsche, D.J. (2000). Ethical Climates and the Ethical Dimension of Decision Making. Journal of Business Ethics, 24(2), 125–140. doi:10.1023/A:1006262914562

    Article  Google Scholar 

  • Fulk, J., & Mani, S.1986, ‘Distortion of Communication In Hierarchical Relationships,’ in M.L. McLaughlin, ed., Communication Yearbook, Vol. 9, (Sage Publications, Beverly Hills), 483-510.

    Google Scholar 

  • Gray, R.J. (2001). Organizational Climate and Project Success. International Journal of Project Management, 19(2), 103–109. doi:10.1016/S0263-7863(99)00060-5

    Article  Google Scholar 

  • Hu, L.T., & Bentler, P.M.1995, ‘Evaluating Model Fit,’ in R. H. Hoyle, ed., Structural Equation Modeling: Concepts, Issues and Applications, (Sage, Newbury Park, CA), 76-99.

    Google Scholar 

  • Keenan, J. P.: 1988, Communication Climate, Whistle-Blowing, and the First-Level Manager: A Preliminary Study. Academy of Management Best Paper Proceedings, pp. 247–251

  • Keil, M., & Robey, D. (2001). Blowing the Whistle on Troubled Software Projects. Communications of the ACM, 44(4), 87–93. doi:10.1145/367211.367274

    Article  Google Scholar 

  • O’Reilly, C.A., III. (1978). The Intentional Distortion of Information in Organizational Communication: A Laboratory and Field Approach. Human Relations, 31, 173–193. doi:10.1177/001872677803100205

    Article  Google Scholar 

  • Podsakoff, P.M., & Organ, D.W. (1986). Self-Reports in Organizational Research: Problems and Prospects. Journal of Management, 12(4), 531–544. doi:10.1177/014920638601200408

    Article  Google Scholar 

  • Renzetti, C.M., & Lee, R.M.1992, Researching Sensitive Topics. (Sage Publications, Thousand Oaks, CA).

    Google Scholar 

  • Roberts, K.H., & O’Reilly, C.A., III. (1974). Failures In Upward Communications In Organizations: Three Possible Culprits. Academy of Management Journal, 17(2), 205–215. doi:10.2307/254974

    Article  Google Scholar 

  • Ruppel, C.P., & Harrington, S.J. (2000). The Relationship of Communication, Ethical Work Climate, and Trust to Commitment and Innovation. Journal of Business Ethics, 25, 313–328. doi:10.1023/A:1006290432594

    Article  Google Scholar 

  • Smith, H. J. and M. Keil: 2003, ‘The Reluctance to Report Bad News on Troubled Software Projects: A Theoretical Model. Information Systems Journal 13(1) 69–95.

    Article  Google Scholar 

  • Smith, H. J., M. Keil and G. Depledge: 2001, ‘Keeping Mum as the Project Goes Under: Towards an Explanatory Model’. Journal of Management Information Systems 18(2) 189–227.

    Google Scholar 

  • Snow, A.P., & Keil, M. (2002). The Challenge of Accurate Software Project Status Reporting: A Two-Stage Model Incorporating Status Errors and Reporting Bias. IEEE Transactions on Engineering Management, 49(4), 491–504. doi:10.1109/TEM.2002.807290

    Article  Google Scholar 

  • Tagiuri, R., & Litgwin, G.1968 Organizational Climate: Explorations of a Concept (Harvard Business School Press, Cambridge, Massachusetts).

    Google Scholar 

  • Thompson, R. L., Smith, H. J., and C. L. Iacovou: 2007, ‘The Linkage Between Reporting Quality and Performance in Information Systems Projects,’. Information &Management 44(2) 196–205.

    Article  Google Scholar 

  • Vaicys, C., Barnett, T., & Brown, G. (1996). An Analysis of the Factor Structure of the Ethical Climate Questionnaire. Psychological Reports, 79, 115–120.

    Google Scholar 

  • Vardi, Y. (2001). The Effects of Organizational and Ethical Climates on Misconduct at Work. Journal of Business Ethics, 29, 325–337. doi:10.1023/A:1010710022834

    Article  Google Scholar 

  • Victor, B., & Cullen, J.B. (1987). A Theory and Measure of Ethical Climate in Organizations. Research in Corporate Social Performance and Policy, 9, 51–71.

    Google Scholar 

  • Victor, B., & Cullen, J.B. (1988). The Organizational Bases Of Ethical Work Climates. Administrative Science Quarterly, 33(1), 101–125. doi:10.2307/2392857

    Article  Google Scholar 

  • Wimbush, J.C., & Shepard, J.M. (1994). Toward an Understanding of Ethical Climate: Its Relationship to Ethical Behavior and Supervisory Influence. Journal of Business Ethics, 13, 637–647. doi:10.1007/BF00871811

    Article  Google Scholar 

  • Wimbush, J.C., Shepard, J.M., & Markham, S.E. (1997a). An Empirical Examination of the Multi-Dimensionality of Ethical Climate in Organizations. Journal of Business Ethics, 16(1), 67–78. doi:10.1023/A:1017962229330

    Article  Google Scholar 

  • Wimbush, J.C., Shepard, J.M., & Markham, S.E. (1997b). An Empirical Examination of the Relationship between Ethical Climate and Ethical Behavior from Multiple Levels of Analysis. Journal of Business Ethics, 16(16), 1705–1717. doi:10.1023/A:1017952221572

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to H. Jeff Smith.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Smith, H.J., Thompson, R. & Iacovou, C. The Impact of Ethical Climate on Project Status Misreporting. J Bus Ethics 90, 577–591 (2009). https://doi.org/10.1007/s10551-009-0062-8

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-009-0062-8

Keywords

Navigation