Abstract

Whilst previous studies indicate perceived company ethicality as a driver of job seekers’ job-pursuit intentions, it is poorly understood how and why ethical market signals actually affect their application decisions. Perceptions of company ethicality result from market signals that are either within the control of the company and from market signals that are beyond the company’s control. Building on communication and information processing theories, this study therefore considers both types of ethical market signals, and examines the psychological mechanisms through which they affect job seekers’ intention to apply for a job. The results from a controlled online experiment show that both types of ethical market signals increase job seekers’ job-pursuit intentions. These relationships are mediated by applicants’ attitude towards the job advertisement, their perceptions of corporate employment image and self-referencing. Consequently, the present study alerts practitioners to consider the effects of company-controlled and non-company-controlled ethical market signals, particularly when aiming to recruit highly-qualified millennial candidates.