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Good Barrels Yield Healthy Apples: Organizational Ethics as a Mechanism for Mitigating Work-Related Stress and Promoting Employee Well-Being

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Abstract

Little is known about how ethical organizational contexts influence employees’ perceived stress levels and well-being. This study used two theoretical lenses, ethical impact theory (Promislo et al. in Handbook of Unethical Work Behavior, M.E. Sharpe, Armonk, 2013) and ethical decision-making theory (Schwartz in J Bus Ethics 139(4): 755–776, 2016), to investigate the relationships among perceived organizational ethics (comprised of ethical climate, leader/manager ethics, and corporate social responsibility), work-related stress, and employee well-being (comprised of vitality, life satisfaction, personal growth initiative, flourishing, positive mental health, and self-actualization). Findings across two studies indicated that organizational ethics was negatively related to work-related stress, and that work-related stress was negatively related to employee well-being. Perceived organizational ethics is positively related to employee well-being, with post hoc mediation tests indicating that work-related stress partially mediates this relationship. Our findings suggest that organizations should be proactive in improving their ethical climate, such as choosing ethical leaders, developing a robust and well-communicated code of ethics, and actively practicing CSR. These measures should reduce excessive work-related stress and improve employee well-being.

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Authors and Affiliations

  1. Randall and Kelly Harbert Marketing Professor, Marketing Program, Division of Business Strategy, Harmon College of Business & Professional Studies, University of Central Missouri, Warrensburg, MO, 64093, USA

    Charles H. Schwepker Jr.

  2. Chester Fritz Distinguished Professor, Robert Page Endowed Professor of Leadership and Ethics, Department of Management, College of Business and Public Administration, University of North Dakota, Grand Fork, ND, 58202, USA

    Sean R. Valentine

  3. The Raymond and Eleanor Smiley Chair in Business Ethics, Department of Management, Marketing and Supply Chain, Boler College of Business, John Carroll University, University Heights, OH, 44118, USA

    Robert A. Giacalone

  4. Department of Management, College of Business Administration, Rider University, Lawrenceville, NJ, 08648, USA

    Mark Promislo

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Correspondence to Charles H. Schwepker Jr..

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Schwepker, C.H., Valentine, S.R., Giacalone, R.A. et al. Good Barrels Yield Healthy Apples: Organizational Ethics as a Mechanism for Mitigating Work-Related Stress and Promoting Employee Well-Being. J Bus Ethics 174, 143–159 (2021). https://doi.org/10.1007/s10551-020-04562-w

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