Skip to main content
SpringerLink
Log in

The Influence of Retail Management’s Use of Social Power on Corporate Ethical Values, Employee Commitment, and Performance

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

Abstract

Recent cases in retailing reflect that ethics have a major impact on brands and performance, in turn, demonstrating that brand owners, employees, and consumers focus on ethical values. In this study, we analyze how various sources of social power affect corporate ethical values, retailer’s commitment to the retail organization, and ultimately sales and service quality. Multi-source data based on a sample of 225 retailers indicated a strong link between power, ethics, and commitment and that these affected output performance.

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

Access this article

Log in via an institution

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

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Achrol, R. S., T. Reve, T and L. W.Stern (1983). The Environment of Marketing Channel Dyads: A Framework for Comparative Analysis. Journal of Marketing, 47(Fall), 55-67.

    Article  Google Scholar 

  • Alchian, A. A., and Demsetz, H. (1972). Production, Information Costs, and Economic Organization. American Economic Association, 62(5), 777-795.

    Google Scholar 

  • Anderson, J. C., and Gerbing, D. W. (1988). Structural Equation Modeling in Practice: A Review and Recommended Two- Step Approach. Psychological Bulletin, 103(3), 411-423.

    Article  Google Scholar 

  • Armstrong, J.S. and Overton, T.S. (1977).Estimating Nonresponse Bias in Mail Surveys. Journal of Marketing Research, 14 (August), 396-402.

    Article  Google Scholar 

  • Axelrod, R. (1984). The Evolution of Cooperation. New York, NY: Basic Books.

    Google Scholar 

  • Bagozzi, R. P. and Yi, Y. (1988). On the Evaluation of Structural Equation Models. Journal of the Academy of Marketing Science, 16(1), 74-94.

    Article  Google Scholar 

  • Bagozzi, R. P., Yi, Y., and Phillips, L. W. (1991). Assessing Construct Validity in Organizational Research. Administrative Science Quarterly, 36, 421-458.

    Article  Google Scholar 

  • Barnett, M. L. and R. M. Salomon: 2006, ‘Beyond Dichotomy: the Curvilinear Relationship Between Social Responsibility and Financial Performance’, Strategic Management Journal, 27, 1101–1122.

    Article  Google Scholar 

  • Basker, E. (2007). The Causes and Consequences of Wal-Mart’s Growth. Journal of Economic Perspectives, 21(3), 177-198.

    Article  Google Scholar 

  • Bell, S.J., and Menguc. (2002). The Employee-organization Relationship, Organizational Citizenship Behaviors, and Superior Service Quality. Journal of Retailing. 78, 131-146.

    Article  Google Scholar 

  • Bentler, P. M. (2006). EQS 6 Structural Equations Program Manual (Multivariate Software, Inc, Encino, CA).

    Google Scholar 

  • Berman, S. L., Wicks, A. C., Kotha, S., and Jones, T. M. (1999). Does Stakeholder Orientation Matter? The Relationship between Stakeholder Management Models and Firm Financial Performance. The Academy of Management Journal, 42(5), 488-506.

    Article  Google Scholar 

  • Bommer, M., Gratto, C., Gravander, J., and Tuttle, M. (1987). A Behavioral Model of Ethical and Unethical Decision Making. Journal of Business Ethics, 7, 265-280.

    Article  Google Scholar 

  • Boshoff, C. and Mels, G. (1995). A Causal Model to Evaluate the Relationships Among Supervision, Role Stress, Organizational Commitment, and Internal Service Quality. European Journal of Marketing, 29 (2), 23-42.

    Article  Google Scholar 

  • Brass, D. J., Butterfield, K. D., and Skaggs, B. C. (1998). Relationships and Unethical Behavior: A Social Network Perspective. Academy of Management Review, 23(1), 14-31.

    Article  Google Scholar 

  • Brown, S. P., and Lam, S. K. (2008), A Meta-Analysis of Relationships Linking Employee Satisfaction to Customer Responses. Journal of Retailing. 84 (3), 243-255.

    Article  Google Scholar 

  • Buchanan, L. (1992). Vertical Trade Relationships: The Role of Dependence and Symmetry in Attaining Organizational Goals. Journal of Marketing Research, 29(February), 65-75.

    Article  Google Scholar 

  • Burns, T., and Stalker, G. M. (1961). The Management of innovation. London: Travistock Publications.

    Google Scholar 

  • Chonko, L. B., and Hunt, S. D. (1985). Ethics and Marketing Management: An Empirical Examination. Journal of Business Research, 13, 339-359.

    Article  Google Scholar 

  • Churchill, G. A. J. (1979). A Paradigm for Better Measures of Marketing Constructs. Journal of Marketing Research 15(February), 64-73.

    Article  Google Scholar 

  • Deery, S. J., and Iverson, R. D. (2005). Labor-Management Cooperation: Antecedents and Impact of Organizational Performance. Industrial and Labor Relations Review, 58(July), 588-609.

    Google Scholar 

  • Demuijnck, G. (2009). From Implicit Christian Corporate Culture to a Structured Conception for Corporate Ethical Responsibility in a Retail Company: A Case-Study in Hermeneutic Ethics. Journal of Business Ethics. 84 (), 387-404.

    Article  Google Scholar 

  • De Pelsmacker, P., L. Driesen and G. Rayp: 2005, ‘Do Consumers Care about Ethics? Willingness to Pay for Fair-Trade Coffee’, The Journal of Consumer Affairs 39(2), 363–385

    Google Scholar 

  • Deshpande′, R., Farley, J. U., Deshpande′, R., Farley, J. U., & Webster, F. E. (1993). Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms - a Quadrad Analysis. Journal of Marketing, 57(1), 23-37.

    Article  Google Scholar 

  • Dess, G. D., and Robinson, R. B. (1984). Measuring organizational performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit. Strategic Management Journal, 5(3), 265-273.

    Article  Google Scholar 

  • Dubinsky, A. J., and Jolson, M. A. (1991). A Cross-National Investigation of Industrial Salespeople’s Ethical Perceptions. Journal of International Business Studies, 22(4), 651-670.

    Article  Google Scholar 

  • Dunfee, T. W., Smith, N. C., and Ross Jr. W. T. (1999). Social Contracts and Marketing Ethics. Journal of Marketing, 63 (July), 14-32.

    Article  Google Scholar 

  • El-Ansary, A. L., and Stern, L. W. (1972). Power Measurement in the Distribution Channel. Journal of Marketing Research, 9(1), 47-52.

    Article  Google Scholar 

  • Etgar, M. (1976). Channel Domination and Countervailing Power in Distribution Channels. Journal of Marketing Research, 13(August), 254-262.

    Article  Google Scholar 

  • Etgar, M. (1977). ‘Comments on the Nature and Scope of Marketing,’ Journal of Marketing 41(October), 14, 16, 146.

    Google Scholar 

  • Evan, W., and Freeman, R. E. (2004). A Stakeholder Theory of the Modern Corporation. In T. Beauchamp and N. Bowie (Eds.), Ethical Theory and Business (7 ed.). Englewood Cliffs, NJ: Prentice-Hall.

    Google Scholar 

  • Ferrell, O.C., and Skinner, S.J. (1988). Ethical Behavior and Bureaucratic Structure in Marketing Research Organizations. Journal of Marketing Research. 25 (February), 103-109.

    Article  Google Scholar 

  • Fornell, C., and Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research. 18(February), 39-50.

    Article  Google Scholar 

  • Fraedrich, J. P. (1993). The Ethical Behavior of Managers. Journal of Business Ethics. 12, 207-218.

    Article  Google Scholar 

  • Freeman, R. E. (1984). Strategic Management: a Stakeholder Approach. London: Pitman.

    Google Scholar 

  • Freeman, R. E. (1994). The Politics of Stakeholder Theory: Some Future Directions. Business Ethics Quarterly, 4, 409-422.

    Article  Google Scholar 

  • French, J. R. P. J., and Raven, B. (1959). The Bases of Social Power. In D. Cartwright (Ed.), Studies in Social Power. Ann Arbor: University of Michigan Press.

    Google Scholar 

  • Fritz, J. M. H., Arnett, R. C., and Conkel, M. (1999). Organizational Ethical Standards and Organizational Commitment. Journal of Business Ethics, 20(4), 289-299.

    Article  Google Scholar 

  • Frooman, J. (1999). Stakeholder Influence Strategies. Academy of Management Review, 24(2), 191-205.

    Article  Google Scholar 

  • Gaski, J. F. (1984). The Theory of Power and Conflict in Channels of Distribution. Journal of Marketing, 48(Summer), 9-29.

    Article  Google Scholar 

  • Grisaffe, D. B and Jaramillo, F. (2007). Toward Higher Levels of Ethics: Preliminary Effects of Positive Outcomes. Journal of Personal Selling and Sales Management. 27 (4), 355-371.

    Article  Google Scholar 

  • Gundlach, G. T., and Cadotte, E. R. (1994). Exchange Interdependence and Interfirm Interaction - Research in a Simulated Channel Setting. Journal of Marketing Research, 31(4), 516-532.

    Article  Google Scholar 

  • Gundlach, G. T., and Murphy, P. E. (1993). Ethical and Legal Foundations of Relational Marketing Exchanges. Journal of Marketing, 57(October), 35-46.

    Article  Google Scholar 

  • Hegarty, W. H., and H. P. Sims. (1987). Some Determinants of Unethical Decision Behavior: An Experiment. Journal of Applied Psychology, 63(4), 451-457.

    Article  Google Scholar 

  • Heide, J. B. (1994). Interorganizational Governance in Marketing Channels. Journal of Marketing, 58(1), 71-85.

    Article  Google Scholar 

  • Hiley, D. R. (1987). Power and Values in Corporate Life. Journal of Business Ethics, 6(5), 343-353.

    Article  Google Scholar 

  • Hines, C. and Ames, A. (2000). Ethical Consumerism. A Research Study Conducted for the Co-operative Bank by MORI. London: MORI.

    Google Scholar 

  • Hosmer, L. T. (1994). Strategic Planning as if Ethics Mattered. Strategic Management Journal, 15(Summer), 17-34.

    Google Scholar 

  • Hosmer, L. T. (1995). Trust: The Connecting Link Between Organizational Theory and Philosophical Ethics. Academy of Management Review, 20, 379-403.

    Article  Google Scholar 

  • Hunt, S. D., Chonko, L. B., and Wood, V. R. (1985). Organizational Commitment and Marketing. Journal of Marketing, 49(1), 112-126.

    Article  Google Scholar 

  • Hunt, S. D., and Vasquez-Parraga, A. (1993). Organizational consequences, marketing ethics and salesforce supervision. Journal of Marketing Research, 30(February), 78-90.

    Article  Google Scholar 

  • Hunt, S. D., and Vitell, S. M. (1986). A general theory of marketing ethics. Journal of Macromarketing, 6(Spring), 5-15.

    Article  Google Scholar 

  • Hunt, S. D., and Vitell, S. J. (2006). The General Theory of Marketing Ethics: A Revision and Three Questions. Journal of Macromarketing, 26(2), 143-153.

    Article  Google Scholar 

  • Hunt, S. D., Wood, V. R., and Chonko, L. B. (1989). Corporate Ethical Values and Organizational Commitment in Marketing. Journal of Marketing, 53(3), 79-90.

    Article  Google Scholar 

  • Ingram, T. N., LaForge, R. W., and Schwepker Jr., C. H. (2007). Salesperson Ethical Decision Making. The Impact of Sales Leadership and Sales Management Control Strategy. Journal of Personal Selling and Sales Management. 27 (4), 301-315.

    Article  Google Scholar 

  • Janis, I. (1972). Victims of Groupthink. Boston: Houghton-Mifflin.

    Google Scholar 

  • Jaworski, B. J., and Kohli, A. K. (1993). Market Orientation - Antecedents and Consequences. Journal of Marketing, 57(3), 53-70.

    Article  Google Scholar 

  • John, G. (1984). An Empirical Investigation of Some Antecedents of Opportunism in a Marketing Channel. Journal of Marketing Research, 21(August), 278-289.

    Article  Google Scholar 

  • Jones, T. M. (1995). Instrumental Stakeholder Theory: A Synthesis of Ethics and Economics. Academy of Management Review, 20(2), 404-437.

    Article  Google Scholar 

  • Kennedy, E. J., and Lawton, L. (1993). Ethics and Service Marketing. Journal of Business Ethics, 12(10), 785-795.

    Article  Google Scholar 

  • Kidwell, R. E., Nygaard, A., and Silkoset, R. (2007). Antecedents and Effects of Free Riding in the Franchisor-Franchisee Relationship. Journal of Business Venturing, 22, 522-544.

    Article  Google Scholar 

  • Kohli, A. K. (1989). Effects of Supervisory Behavior - the Role of Individual-Differences Among Salespeople. Journal of Marketing, 53(4), 40-50.

    Article  Google Scholar 

  • Kumar, N., Stern, N. L. and Anderson, J.C. (1993). Conducting Interorganizational Research Using Key Informants. The Academy of Management Journal. 36, (6), 1633-1651.

    Article  Google Scholar 

  • McLaren, N. (2000). Ethics in Selling and Sales Management: A Review of the Literature Focusing on Empirical Findings and Conceptual Foundations. Journal of Business Ethics. 27 (), 285-303.

    Article  Google Scholar 

  • McWilliams, A. and Siegel D (2001). Corporate Social Responsibility: A Theory of the Firm Perspective. The Academy of Management Review, 26 (1), 117-127.

    Article  Google Scholar 

  • Mishra, D. P., Heide, J. B., and Cort, S. G. (1998). Information Asymmetry and Levels of Agency Relationships. Journal of Marketing Research, 35(August), 277-295.

    Article  Google Scholar 

  • Mitchell, R. K., Agle, B. R., and Wood, D. J. (1997). Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts. Academy of Management Review, 22(4), 853-886.

    Article  Google Scholar 

  • Morgan, R. M., and Hunt, S. D. (1994). The Commitment -Trust Theory of Relationship Marketing. Journal of Marketing, 58(July), 20-38.

    Article  Google Scholar 

  • Nantel, J., and Weeks, W. A. (1996). Marketing Ethics: is there More to it Than the Utilitarian Approach? European Journal of Marketing, 30(5), 9-15.

    Article  Google Scholar 

  • Nunnally, J. (1978). Psychometric Theory. New York: McGraw-Hill.

    Google Scholar 

  • Ouchi, W. G. (1979). A Conceptual Framework for the Design of Organizational Control Mechanisms. Management Science, 25(September), 833-848.

    Article  Google Scholar 

  • Ouchi, W. G. (1980). Markets, Bureaucracies, and Clans. Administrative Science Quarterly, 25(March), 129-141.

    Article  Google Scholar 

  • Palazzo, G., and Basu, K. (2007). The Ethical Backlash of Corporate Branding. Journal of Business Ethics, 73(4), 333-346.

    Article  Google Scholar 

  • Peccei, R., Bewley, H., Gospel, H., and Willman, P. (2005). Is it Good to Talk? Information Disclosure and Organizational Performance in the UK. British Journal of Industrial Relations, 43(1), 11-39.

    Article  Google Scholar 

  • Pfeffer, J., and Salancik, G. R. (1978). The External Control of Organizations. New York, NY: Harper and Row.

    Google Scholar 

  • Pitt, L. F., Foreman, S. K., and Bromfield, D. (1995). Organizational Commitment and Service Delivery: Evidence from an Industrial Setting in the UK. The International Journal of Human Resource Management, 6(February), 369-389.

    Google Scholar 

  • Podolny, J. M. (1994). Market Uncertainty and the Social Character of Economic Exchange. Administrative Science Quarterly, 39(3), 458-83.

    Article  Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y, and Podsakoff, N. P. (2003). Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies. Journal of Applied Psychology, 88(5), 879-903.

    Article  Google Scholar 

  • Preble, J. F. and Hoffman, R. C (1999). The Nature of Ethic Codes in Franchise Associations Around the Globe. Journal of Business Ethics. 18 (), 239-253.

    Article  Google Scholar 

  • Randall, D. M. (1987). Commitment and the Organization: The Organization Man Revisited. The Academy of Management Review, 12(3), 460-471.

    Article  Google Scholar 

  • Robertson, C. J., and Crittenden, W. F. (2003). Mapping Moral Philosophies: Strategic Implications for Multinational Firms. Strategic Management Journal, 24, 385-392.

    Article  Google Scholar 

  • Robin, D. P., and Reidenbach, R. E. (1987). Social Responsibility, Ethics, and Marketing Strategy: Closing the Gap Between Concept and Application. Journal of Marketing, 51(January), 44-58.

    Article  Google Scholar 

  • Roca-Puig, V., Beltrán-Martín, I., Escrig-Tana, A. B., and Bou-Llusar, J. C. (2005). Strategic Flexibility as a Moderator of the Relationship Between Commitment to Employees and Performance in Service Firms. The International Journal of Human Resource Management, 16(November), 2075-2093.

    Article  Google Scholar 

  • Ruekert, R. W., Walker, O. C. J. (1990). Shared Marketing Programs and the Performance of Different Business Strategies. In V. Zeithaml (Ed.), Review of Marketing, Vol. 4. American Marketing Association, Chicago

    Google Scholar 

  • Sørensen, J. B. (2002). The Strength of Corporate Culture and the Reliability of Firm Performance. Administrative Science Quarterly. 47 (), 70-91.

    Article  Google Scholar 

  • Steers, R. M. (1977). Antecedents and Outcomes of Organizational Commitment. Administrative Science Quarterly, 22(1), 46-56.

    Article  Google Scholar 

  • Stevens, J.M., Steensma, K. H Harrison, D. H and Cochran, P. L. (2005). Symbolic or Substanstive Document? The Influence of Ethics Codes on Financial Executives Decisions. Strategic Management Journal. 26 (), 181-195.

    Article  Google Scholar 

  • Still, L. V. (1983). Part-Time Versus Full-Time Salespeople: Individual Attributes, Organizational Commitment, and Work Attitudes. Journal of Retailing, 59(Summer), 55-79.

    Google Scholar 

  • Swailes, S. (2002). Organizational Commitment: A Critique of the Construct and Measures. International Journal of Management Reviews, 4(2), 155-178.

    Article  Google Scholar 

  • Swasy, J. L. (1979). Measuring the Bases of Social Power. Advances in Consumer Research, 6, 340-346.

    Google Scholar 

  • Talaulicar, T. (2009). Global Retailers and their Corporate Codes of Ethics: The Case of Wal-Mart in Germany. The Service Industries Journal. 29 (1), 47-58.

    Article  Google Scholar 

  • Tenbrunsel, A. E. (1998). Misrepresentation and Expectations of Misrepresentation in an Ethical Dilemma: The Role of Incentives and Temptation. Academy of Management Journal, 41(3), 330-339.

    Article  Google Scholar 

  • The Economist: 2006a, ‘A Picture of People Power’, The Economist, The World.

  • The Economist: 2006b, ‘Voting With Your Trolley,’ The Economist.

  • Trevino, L. K. (1986). Ethical Decision Making in Organizations: A Person- Situation Interactionist Model. Academy of Management Review, 11(3), 601-617.

    Article  Google Scholar 

  • Trevino, L. K., C. D. Sutton and R. Woodman: (1985). Effects of Reinforcement Contingencies and Cognitive Moral Development on Ethical Decision-making Behavior. Paper Presented at the Annual Meeting of the Academy of Management.

  • Valentine, S. (2009). Ethics Training, Ethical Context, and Sales and Marketing Professionals’ Satisfaction with Supervisors and Coworkers. Journal of Personal Selling and Sales Management. 29 (3), 227-242.

    Article  Google Scholar 

  • Valentine, S., and Barnett, T. (2003). Ethics Code Awareness, Perceived Ethical Values, and Organizational Commitment. Journal of Personal Selling and Sales Management, 23(4), 359-367.

    Google Scholar 

  • Vermillion, L. J., Lassar, W. M., and Winsor, R. D. (2002). The Hunt-Vitell General Theory of Marketing Ethics: Can it Enhance our Understanding of Principal-Agent Relationships in Channels of Distribution? Journal of Business Ethics, 41(3), 267-285.

    Article  Google Scholar 

  • Weaver, G. R., Trevino, L. K., and Coccran, P. H. (1999a). Corporate Ethics Programs as Control Systems: Influence of Executive Commitment and Environmental Factors. Academy of Management Journal. 42 (1), 41-57.

    Article  Google Scholar 

  • Weaver, G. R., Trevino, L. K., and Coccran, P. H. (1999b). Integrated and Decoupled Corporate Social Performance: Management Commitments, External Pressures, and Corporate Ethics Practice. Academy of Management Journal. 42 (5), 539-552.

    Article  Google Scholar 

  • Woolridge, B., and Floyd, S. W. (1990). The Strategy Process, Middle Management Involvement, and Organizational Performance. Strategic Management Journal, 11, 231-241.

    Article  Google Scholar 

  • Yoon, M. H., and Suh, J. (2003). Organizational Citizenship Behaviors and Service Quality as External Effectiveness of Contact Employees. Journal of Business Research, 56 (8), 597-611.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Marketing, BI Norwegian School of Management, Oslo, Norway

    Harald Biong, Arne Nygaard & Ragnhild Silkoset

Authors
  1. Harald Biong
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Arne Nygaard
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Ragnhild Silkoset
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Harald Biong.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Biong, H., Nygaard, A. & Silkoset, R. The Influence of Retail Management’s Use of Social Power on Corporate Ethical Values, Employee Commitment, and Performance. J Bus Ethics 97, 341–363 (2010). https://doi.org/10.1007/s10551-010-0523-0

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-010-0523-0

Keywords

Search

Navigation