Shafer, Poon, and Tjosvold (Reference Shafer, Poon and Tjosvold2013b) found that benevolent climates positively influenced commitment by enhancing cooperative goals while instrumental climates exerted a negative influence by enhancing competitive goals and reducing cooperative goals. 2020. Query parameters: { In our review we identified a total of fifty-four studies which have adopted the original or the modified version of the ECQ to measure ethical climate. However, there were no significant differences between family and non-family businesses across other climates. Other studies have found that ethical climate strengthens the relationship between diversity climate and turnover intentions (Stewart et al., Reference Stewart, Volpone, Avery and McKay2011), and weakens the relationship between performance and turnover intentions (Fournier, Tanner, Chonko, & Manolis, Reference Fournier, Tanner, Chonko and Manolis2010). At the workgroup-level, Arnaud and Schminke’s (2012) found that an ethical climate based on self-focused reasoning within workgroups negatively predicted ethical behavior, but ethical climate based on other-focused reasoning did not, thus extending behavioral plasticity theory. (Reference Shin, Sung, Choi and Kim2015) found that the ethical leadership of top management fostered a positive ethical climate in their organizations. These findings are divided into three sections: antecedents, outcomes, and finally, moderators and mediators. and Researchers examining the influence of ethical climates on organizational and professional conflict at work found that whereas principle and benevolent climates were negatively related to conflict, egoistic and instrumental climates were positively related to conflict (Shafer, Reference Shafer2009; Shafer et al., Reference Shafer, Poon and Tjosvold2013a). Pietroni, Davide Dante endobj Choi et al. Similarly, Hsieh and Wang (Reference Hsieh and Wang2016) found a strong negative relationship between ethical climate and organizational deviance mediated by job satisfaction, perceived organizational support, and positive affect. A final limitation concerning the measurement of ethical climates is that most studies (70 out of 91 quantitative studies) have measured ethical climates at the individual-level of analysis (i.e. As we highlight later on, given ethical climate was originally conceptualized as a variable which captures employees’ shared perceptions of the organizational climate, future work should examine whether ethical climates meaningfully exist at higher-levels of analysis, and the extent of climate strength across organizational levels of analysis. Pagliaro, Stefano In more recent work, Arnaud (2010: 125) attempted to significantly broaden the definition of ethical climate by defining it as “a molar concept reflecting the content and strength of the prevalent ethical values, norms, attitudes, feelings, and behaviors of the members of a social-system.” In response to criticisms of Victor and Cullen’s (1987, 1988) framework as to whether it “is comprehensive enough to capture the true breadth of the ethical climate construct” (Arnaud, Reference Arnaud2010: 347), Arnaud (Reference Arnaud2006; Reference Arnaud2010) proposed a broader theoretical model of ethical work climate by drawing on the four-component cognitive development model of Rest (Reference Rest1984, Reference Rest1986) which is based on Kohlberg’s work (Kohlberg, Reference Kohlberg1970). Prince 12.5 (www.princexml.com) As highlighted earlier, prior work on ethical climates has predominantly been conducted at the individual level of analysis, with only a small number of studies having aggregated employees’ individual-level perceptions of ethical climate to the departmental or organizational levels of analysis (e.g. Although we might envisage situations under which individuals develop a collective moral identity which encompasses aspects of morality, and jointly recognize how their collective decisions influence others in a way that may conflict with ethical standards, empirical research examining whether collective moral identity and moral awareness exist at the level of the group or organization is limited. Arnaud, A. ethical climate – play a central role in that investigation (Akdogan & Dermitas, 2015). Klyver, Kim <> Such work found that ethical climates varied across industrial sectors and between profit-oriented and non-profit organizations. Another collective moral construct that has been proposed by researchers that shares some overlap with ethical climate is ethical culture, which has been defined as a subset of organizational culture that captures the organization’s systems and practices of behavioral control that promote ethical or unethical behavior (Trevino, Butterfield, & McCabe, Reference Trevino, Butterfield and McCabe1998). For example, Chen, Chen, and Liu (Reference Chen, Chen and Liu2013) found that whilst an instrumental ethical climate strengthened the relationship between negative affect and workplace deviance, a caring ethical climate weakened it. Finally, Pauly, Varcoe, Storch, and Newton’s (2009) study also examined the influence of ethical climate on employees’ perceptions of moral distress. In addition, drawing on social exchange theory, Parboteeah and Kapp (Reference Parboteeah and Kapp2008) found that whereas the existence of principle climates was negatively related to injury incidents and positively related to safety-enhancing behaviors, benevolence climates were only negatively related to injury incidents, and egoism climates were related to neither. As well as examining the moderating effects of ethical climate strength on the ethical climate/work outcomes relationship, future research might also draw on SST to examine whether through providing clarity over what behaviors are expected at work (reducing situational ambiguity), strong ethical climates may neutralize the tendency for individuals with certain personality traits to engage in negative forms of behavior. Researchers have generally drawn upon social learning theory to explain the process by which leaders influence ethical climates in the organization through role-modelling expected behaviors to employees (Demirtas & Akdogan, Reference Demirtas and Akdogan2015; Mayer et al., Reference Mayer, Kuenzi and Greenbaum2010; Shin, Reference Shin2012; Shin, Sung, Choi, & Kim, Reference Shin, Sung, Choi and Kim2015). In addition, only one study has examined the boundary conditions of the relationship between ethical climate and its antecedents, finding that there was a stronger relationship between paternalistic leadership and social responsibility/friendship climate when trust in leader was high (Otken & Cenkci, Reference Otken and Cenkci2012). For example, Mayer et al. Baer, Michael Wellman, Ned Arnaud A., Schminke M., 2012, The Ethical Climate and Context of Organizations: A Comprehensive Model,“Organization Science” 23(6) Similarly, examining the effects of ethical climates on the relationship between ethical dispositions and personal justice norms, Lau and Wong (Reference Lau and Wong2009), found that a benevolent ethical climate weakened the relationship between equity sensitivity and the distributive justice norm, and principle ethical climate weakened the relationship between the need for structure and procedural justice norm. This article offers a comprehensive review of literature examining the antecedents and outcomes of ethical climates over the last decade, as well as moderators of the relationship between ethical climates and other variables. What is Ethical Climate? Figure 1: Categorization of Existing Research. [Reference Shin, Sung, Choi and Kim2015] for two notable exceptions). May indicate the strength of the influence of ethical climates on employees. Executive Overview Ethical climate theory was first proposed by Victor and Cullen (1987, 1988). Jønsson, Thomas Legitimacy, in this context, is considered to be the general perception that an entity is acting in a way that is desirable and appropriate within the socially constructed institutional frameworks (Suchman, Reference Suchman1995). Tariq, Jasim "peerReview": true, Business and Society, 49(2): 345-358. Over the last decade, researchers have begun to examine the moderating effects of ethical climates by drawing on person-situation interactionist perspectives such as trait-activation theory. Yet unfairly, most developing countries, which have contributed less to anthropogenic climate change, are more at risk from its impacts and less able to adapt. A summary of the various definitions (and measures) of ethical climate is provided in the Appendix. When examining the existence of ethical climates at higher levels of analysis, researchers should seek to identify whether the ethical climates highlighted in Victor and Cullen’s (1987, 1988) framework might be better captured at the team or department level (e.g. Constandt, Bram 2. Husted, Bryan W. Building on the work prior to 2006, recent work has begun to extend our knowledge by examining how ethical climates predict different facets of organizational commitment or job satisfaction. SIPT intimates that individuals use the social information obtained from their work environment to adapt their behaviors to the social context they find themselves within. A new theory and measure of ethical work climate: The psychological process model (PPM) and the ethical climate index (ECI). <> and In addition, whilst we might expect rules and law-and-code ethical climates to foster innovation within an organization through indicating to employees that there are policies and regulations in place to guide their behavior in the workplace, at too high levels such climates may constrain innovation if employees feel overburdened having to abide by such policies and regulations. This study uses the Ethical Climate Questionnaire (ECQ) of Victor and Cullen (1987) to, first, identify the ethical climate dimensions relevant to 255 public sector HR practitioners, and, second, identify the different types of ethical environment within which these HR practitioners operate. endobj The ethical criteria, derived from theories of moral philosophy, include egoism, benevolence, and principle. Ethical climate, as conceptualized by Victor and Cullen (Reference Victor, Cullen and Frederick1987, Reference Victor and Cullen1988), differs from other moral constructs such as moral identity and moral awareness in that it looks at how the social context in organizations influences ethical behavior of employees through fostering their collective moral reasoning. Finally, Weber and Gerde (2011) found that the organizational context influenced the ethical climates of military units. Although climate researchers have generally argued that organizational climates such as ethical climate provide the behavioral evidence for the culture within an organization through influencing the behavior of individuals, i.e. Ghosh (Reference Ghosh2015), found a positive link between an ethical climate that stresses adherence to law and codes and ethical standards and caring for employees, is positively related to the exhibition of organizational citizenship behaviors by members of the organization. Finally, Vardaman, Gondo, and Allen (2014) argued that certain ethical climates are likely to promote pro-social rule-breaking whilst others are likely to constrain pro-social rule-breaking. For example, based on SIPT we may expect a strong law-and-code climate to influence employees’ ethical conduct through providing cues to employees that it is important to abide by the law and ethical codes. 53 0 obj Cullen, J., Victor, J.B. and Bronson, J.W. ECT may give clues as to how ethical climates behave and … The purpose of this research is to provide a richer lens on the ethical organizational environment by examining the relationship between ethical leadership and unit‐level unethical behavior through ethical organizational climate (EOC), with collective moral identity as a boundary condition. Shacklock, Manning, and Hort (Reference Shacklock, Manning and Hort2011) found that whilst working in an instrumental climate led human resource practitioners to have lower levels of perceived capacity to act and self-efficacy when faced with ethical dilemmas, working in caring and law and rules climates led human resource practitioners to have higher levels of perceived capacity to act and self-efficacy. For example, Duh, Belak, and Milfelner (Reference Duh, Belak and Milfelner2010) found stronger caring climates and law-and-code climates in family as opposed to non-family businesses. Researchers have begun to examine the influence of ethical climate on other ethical outcomes such as employees’ moral awareness and justice norms. 31 0 obj In their meta-analytical study Martin and Cullen (Reference Martin and Cullen2006) highlighted how early empirical work examined organizational context as a key predictor of ethical climates. Bufalino, Giambattista For example, Olson (Reference Olson1994) proposed a more general definition of ethical climate by diluting the focus on organizational influence. Radtke, Robin Whereas ethical intentions refer to how individuals intend to deal with ethical issues they face, ethical behavior refers to whether individuals are acting in ways consistent with what others in society believe is morally appropriate. The ECQ was developed by Victor and Cullen (Reference Victor, Cullen and Frederick1987) based on a “climate approach” to research (Schneider, Reference Schneider, Feimer and Geller1983: 111) and written to capture the nine ethical climate types determined by theory. As Kaptein (Reference Kaptein2011) points out, whilst ethical climate refers to employees’ perceptions about what is the right thing to do in the organization, ethical culture is procedural in that it relates to whether employees’ believe the conditions are in place in the organization to influence ethical behavior and, therefore, we argue, provides a basis from which the ethical climate develops. VanSandt, Shepard, and Zappe (2006) found that while benevolent or principle climates positively predicted moral awareness, egoistic climates negatively predicted moral awareness. Since then, researchers have examined the differences in ethical climates between family and non-family businesses, between non-profits and government departments, between public and private sector organizations, and between enterprises at different stages of development. Organizational ethical climate refers to the moral atmosphere of the work environment and the level of ethics practiced within a company. Wei, Wu Multi-level research into ethical climate which allows for the aggregation of perceptions at different levels will not only produce a more accurate measure of ethical climate consistent with its conceptualization as a higher level construct, but will also allow for comparisons between areas and levels of the business. Scholars have provided a number of definitions of ethical climate, with the most widely used being Victor and Cullen’s (1987) definition. Empirical work has also begun to examine the influence of cultural context on ethical climates. In contrast, individuals who rank highly on openness to experience may respond less positively to rules and law-and-code ethical climates as the lower levels of ambiguity reduce the opportunity for new experiences that such individuals crave. Finally, drawing on behavioral plasticity theory and social cognitive theory Arnaud and Schminke (Reference Arnaud and Schminke2012) found that collective moral emotion and collective moral efficacy strengthened the influence of ethical climate on ethical behavior. 23 0 obj The first step in establishing an ethical climate is for mangers, especially top managers, to act ethically themselves. This data will be updated every 24 hours. 2010. Barattucci, Massimiliano "openAccess": "0", For example, we might expect that in cultures high in power distance, as opposed to those low in power distance, there will be a greater prevalence of rules and law-and-code ethical climates in organizations, as such cultures stress the need to maintain control through organizational hierarchies. De Waegeneer, Els For example, drawing from the organizational climate literature (Schneider, Ehrhart, & Macey, Reference Schneider, Ehrhart and Macey2013) research on ethical climates may be extended to incorporate antecedents such as cultural values, gender, and ethnicity at the individual level, and also consider unit-level antecedents such as unit size, level of social interaction, and communication network density (as indicated in Figure 3). Similarly, Lu and Lin (Reference Lu and Lin2014) found that an ethical climate which emphasized rules, policies, independence, caring, professional standards, and law and codes was positively related to levels of ethical behavior amongst employees. The years since the publication of Simha and Cullen (2012) have witnessed a growth in work on ethical climate, including studies that have examined the antecedents of ethical climate and treated ethical climate as a mediator or moderator, thereby calling for a fresh review. Although the antecedents of ethical climates have received less attention than their outcomes, we have witnessed growing empirical work on the antecedents of ethical climates in the decade since Martin and Cullen’s (2006) meta-analytical work. Researchers have also established that ethical climates predict leader-member exchange (LMX), team identification, and acquiescent as well as defensive silence. For example, we might expect that organizational change that involves significant staff restructuring and/or downsizing will have a negative influence on caring ethical climates and a positive influence on instrumental climates, as individuals put their own interests first. Arnaud & Schminke, Reference Arnaud and Schminke2012; Mayer et al., Reference Mayer, Kuenzi and Greenbaum2010). For example, researchers could study whether, within an organization, climate dilutes or changes across hierarchy, business functions, or regions. and An ethical climate refers to shared perceptions between members of an organization or part of an organization as to “what constitutes right behavior” and arises when “members believe that certain forms of ethical reasoning or behavior are expected standards or norms for decision making within the firm” (Martin & Cullen, Reference Martin and Cullen 2006: 177). Underpinning institutional theory is the assumption that in order to survive and thrive, organizations need social acceptability and creditability (Scott, Reference Scott2001). statistics for interrater agreement, and ICC(1) and ICC(2) statistics for interrater reliability (LeBreton & Senter, Reference LeBreton and Senter2008). In the last three decades since Victor and Cullen (Reference Victor, Cullen and Frederick1987, Reference Victor and Cullen1988) introduced the ethical climate framework, we have witnessed burgeoning research on ethical climates in the management literature. More specifically, they determined that the higher the levels of risk and environmental uncertainty, and greater the task interdependence in units, the higher the prevalence of caring and instrumental climates. Cheng and Wang (Reference Cheng and Wang2015) examined the effects of ethical climates on team identification finding that whilst benevolent and principle climates were positively related to team identification, egoism climates were negatively related. "lang": "en" We suggest that future research may consider the extent to which certain prevailing factors in the overarching context influence the formation of ethical climates within organizations operating in this environment. Climate ethics is an area of research that focuses on the ethical dimensions of climate change (also known as global warming), and concepts such as climate justice.. Human-induced climate change raises many profound ethical questions, yet many [who?] 2019. endobj Farh, Jiing-Lih Despite growing work in this area, there has been comparatively less research on the relationship between ethical climates and psychological states than other outcome variables. Ethical climates and safety-enhancing behaviors: An empirical test, Ethnic diversity, corruption and ethical climates in sub-Saharan Africa: Recognizing the significance of human resource management, Registered nurses’ perceptions of moral distress and ethical climate, The too-much-of-a-good-thing effect in management, A general multilevel SEM framework for assessing multilevel mediation, The relationships between ethical climates, ethical ideologies and organisational commitment within Indonesian higher education institutions, Organizational climate and decision framing: An integrated approach to analyzing industrial buying decisions, Hospital ethical climate and teamwork in acute care: The moderating role of leaders, Moral awareness and ethical predispositions: Investigating the role of individual differences in the recognition of moral issues, The Dark Triad of personality and unethical behavior at different times of day, Ethical climates and contextual predictors of whistle-blowing, Ethical climate theory, whistle-blowing, and the code of silence in police agencies in the state of Georgia, Strategic risk taking propensity: The role of ethical climate and marketing output control. 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Huang2008 ) looked at the mechanisms linking ethical climates are affected by organizational.!, researchers can use the SIPT theory to explain the differential effects ethical... School districts to assess the new theory of EWCs Barattucci, Massimiliano Lo Presti, Alessandro Bufalino, Giambattista,... Climate as a background Massimiliano Lo Presti, Alessandro Bufalino, Giambattista Jønsson, Thomas Weber! Normative commitment higher level of education and Validity might expect a curvilinear relationship between ethical climate Index the! Since then a growing number of methodological concerns with prior research for legitimacy leads to isomorphism within organizational (! December 2020 promotion and overall job satisfaction: an Assessment of its development and of. 10 Americans are very ( 7 % ) or somewhat ( 33 % ) satisfied libraries is a of!