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. (shrink)

Authoritarian leadership is of great significance to eastern countries, including China. Meanwhile, unethical employee behavior also exists in all types of social organizations. The relationship between authoritarian leadership and unethical employee behavior is worth studying. Senior leaders often do not have a direct influence on employees except for through their immediate supervisors. The leadership style of senior leaders also influences the leadership style of their subordinates. This paper studies how authoritarian manager leadership trickles down to unethical employee behavior through authoritarian (...) supervisor leadership and discusses the moderating effect of leader member exchange and an ethical climate. Through a questionnaire survey of 406 pairs of leaders, supervisors, and employees, the research results of the multilevel model show that authoritarian supervisor leadership is positively related to unethical employee behavior, authoritarian supervisor leadership mediates the relationship between authoritarian manager leadership and unethical employee behavior, LMX positively moderates the relationship between authoritarian manager leadership and authoritarian supervisor leadership and moderates the mediating effect of authoritarian supervisor leadership, and, that an ethical climate negatively moderates the relationship between authoritarian supervisor leadership and unethical employee behavior and moderates the mediating effect of authoritarian supervisor leadership. (shrink)

We review and synthesize over two decades of research on ethical culture in organizations, examining eighty-nine relevant scholarly works. Our article discusses the conceptualization of ethical culture in a cross-disciplinary space and its critical role in ethical decision-making. With a view to advancing future research, we analyze the antecedents, outcomes, and mediator and moderator roles of ethical culture. To do so, we identify measures and theories used in past studies and make recommendations. We propose, inter alia, the use of validated (...) measures, application of a wider range of theories, adoption of longitudinal studies, and study of group-level data in organizations. We explore research possibilities in new and emergent forms of organizations, ways of organizing work, and technology in ethical decision-making, such as the role of artificial intelligence. We also recommend the study of a broad range of leadership styles and their influence in shaping ethical cultures in organizations. (shrink)

Promoting ethical practice within an organization has been a continuous challenge in the business ethics community. To enrich organizational practices for promoting business ethics across an organization, this paper aims to introduce the voices of practitioners working in organizations that offer exemplary practices. Based on semi-structured interviews with 21 engineers working in the health products industry, we identified 12 pervasive ethical values that we grouped to four categories: fiduciary, economic, engineering, and process values. As ethics has been embraced as a (...) core element of the ethical practice of our study participants regardless of their rankings and roles in their organizations, we investigated organizational strategies for promoting ethical practice. We identified four categories of organizational strategies: symbols, memberships, practices, and systems. Each strategy affected the 12 ethical values in different ways. Lastly, we identified three characteristics of the industry contexts that appeared to influence ethical values: customer impact, economic norms, and highly regulated industry. We discuss how the findings from this paper can potentially promote new discussions and practices in the business ethics community. (shrink)

Organisational culture is assumed to be a key factor in large-scale and avoidable institutional failures. Whilst models such as “ethical culture” and “safety culture” have been used to explain such failures, minimal research has investigated their ability to do so, and a single and unified model of the role of culture in institutional failures is lacking. To address this, we systematically identified case study articles investigating the relationship between culture and institutional failures relating to ethics and risk management. A content (...) analysis of the cultural factors leading to failures found 23 common factors and a common sequential pattern. First, culture is described as causing practices that develop into institutional failure. Second, and usually sequentially related to causal culture, culture is also used to describe the problems of correction: how people, in most cases, had the opportunity to correct a problem and avert failure, but did not take appropriate action. It was established that most of the cultural factors identified in the case studies were consistent with survey-based models of safety culture and ethical culture. Failures of safety and ethics also largely involve the same causal and corrective factors of culture, although some aspects of culture more frequently precede certain outcome types. We propose that the distinction between causal and corrective culture can form the basis of a unified and generalisable model of organisational failure. (shrink)

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. 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. (shrink)

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. 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. (shrink)

Over the last decade, scandals within the UK Financial Service sector have impacted their legitimacy and raised questions whether a compliance culture exists or not. Several institutional changes at the regulatory and normative levels have targeted stakeholders’ concerns regarding compliance culture and led to changes in the legitimation process. This paper attempts to address a gap in the literature by asking the following question: How is the UK financial institutions’ compliance culture shaped by the institutional environment and changing legitimacy claims? (...) Towards achieving this objective, the paper draws on the institutional theory and pays attention to the various configurations of the legitimacy notion :451–478; 2017). The paper utilises a longitudinal interpretive design and undertakes a qualitative content analysis of fines issued by the UK regulator and the communicated response of violating firms as well as non-sanctioned firms. Our findings indicate that there is a cyclical ‘evolutionary compliance’ rather than the more widely recognised state of ‘compliance culture’. This culture is fuelled by interchangeable isomorphic forces where the majority of violating firms are seen to issue similar responses to the regulators sanction to maintain their reputation and legitimacy in the market. Notably, legitimacy is now defined within an interactive process between the regulator and firms rather than being static and achieved by ticking the box. (shrink)

This article considers financial risk management practice using a virtue ethics lens, in response to ongoing critiques of risk management from within business ethics. Risk management should be seen as embedded within a complex system of cultures, organizations and regulations that are underpinned by a quantitatively reductive or ‘mechanistic’ economic paradigm, where dominant logics of self-interest, profit maximization and short-termism prevail. Building on recent work applying virtue ethics in finance, an alternative to the values, normative expectations and priorities in financial (...) risk management is presented in the form of a refined ‘taxonomy’ of the virtues that can be applied to individuals and organizations engaged in financial risk management. This article aims to contribute to and extend debate on the ethical aspects of risk management and presents an alternative to more technically based critiques which do not engage with the underlying socially constructed foundations of risk management practice. It thereby provides a basis to critique the mechanistic and narrow approach used in the current regulation of the sector. (shrink)

We examine the effects of leader–member exchange differentiation on team members’ outcomes by using team moral disengagement as a psychological mechanism mediating this relationship and LMX differentiation bases moderating the relationship. Analysis of multilevel data collected from 289 frontline employees organized into 76 finance-related customer service teams shows that LMX differentiation significantly reduced team moral disengagement only when the performance basis was high, and that the negative relationship between LMX differentiation and team moral disengagement was significant only when the personal (...) liking basis was low. Furthermore, we found that the LMX bases moderated the indirect effect of LMX differentiation on team members’ outcomes through team moral disengagement. The findings advance team moral disengagement as a novel mechanism for cross-level relationship between LMX differentiation and team members’ outcomes at the individual level, and project differentiation bases as a condition under which LMX differentiation unpacks the reasons for team members’ favorable or unfavorable responses. They reveal LMX differentiation as a complex and multifaceted phenomenon, whose essence can only be understood if examined from multiple levels. We also contribute to the literature by revealing the cognitive pathway through which LMX differentiation may be associated with team members outcomes. (shrink)