The Role of Ethical Climate in Fraud

Author(s):  
Pamela R. Murphy ◽  
Clinton Wallace Free ◽  
Carmel Branston
Keyword(s):  
2018 ◽  
Vol 20 (3) ◽  
pp. 99-110
Author(s):  
Na Zhang ◽  
Jingjing Li ◽  
Xing Bu ◽  
Zhenxing Gong ◽  
Gilal Faheem Gul

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Teresa Almeida ◽  
Francisca Abreu ◽  
Nelson C. Ramalho

PurposeLeadership is a time-dependent process and a recent leadership research trend posits a central role of time-based variables. The dyadic tenure plays a keystone role in understanding leader–follower dynamics, especially as regards leader ethics. In line with this, from a social learning theory perspective, the authors propose a model that explains how and when ethical leaders' behaviors influence subordinates' moral disengagement.Design/methodology/approachWith a sample of 220 employees, the present study tests the conditional indirect effect of ethical leadership on followers' moral disengagement via instrumental ethical climate (IEC), using dyadic tenure as the moderator variable. The analyses were conducted with Hayes PROCESS macro.FindingsResults suggested that IEC fully mediates the relationship between ethical leadership and moral disengagement. Thus, when followers perceive low levels of ethical leadership, they notice higher levels of IEC, which is positively related to moral disengagement. However, IEC perception only influences moral disengagement when dyadic tenure approaches the third year.Originality/valueThis paper answers calls to include time-based variables in leadership studies. Hence, using dyadic tenure, this study gives support to previous propositions that were still awaiting empirical test.


2018 ◽  
Vol 47 (5) ◽  
pp. 1062-1076 ◽  
Author(s):  
Sheng-Wuu Joe ◽  
Wei-Ting Hung ◽  
Chou-Kang Chiu ◽  
Chieh-Peng Lin ◽  
Ya-Chu Hsu

Purpose To deepen our understanding about the development of turnover intention, the purpose of this paper is to develop a model that explains how ethical climate influences turnover intention based on the ethical climate theory and social identity theory. Design/methodology/approach The hypotheses of this study were statistically tested using a survey of working professionals from Taiwan’s high-tech industry. Of the 400 questionnaires distributed to the working professionals from five large high-tech firms in a well-known science park in Northern Taiwan, 352 usable questionnaires were returned for a questionnaire response rate of 88 percent. Findings The test results of this study first show that all three dimensions of ethical climate (i.e. instrumental, benevolent, and principled) are indirectly related to turnover intention via the mediation of firm attractiveness. Moreover, instrumental and benevolent climate directly relate to turnover intention, whereas benevolent climate negatively moderates the relationship between principled climate and firm attractiveness. Originality/value This study finds that benevolent climate plays a dual role as an antecedent and a moderator in the formation of turnover intention, complementing prior studies that merely concentrate on the single role of benevolent climate as either an antecedent or a moderator. The effect of principled climate on organizational identification complements the theoretical discussion by Victor and Cullen (1987) about deontology in which an ethical workplace climate (such as legitimacy) drives employees to invest in identity attachments to the organization and influences their future career decision (e.g. turnover).


Author(s):  
Kijpokin Kasemsap

This chapter reveals the role of ethical leadership in ethical organizations, thus illustrating the theoretical and practical overviews of ethical leadership, organizational ethical culture, and organizational ethical climate; the significance of organizational ethical climate in organizational performance; and the significance of ethical leadership and organizational ethical culture in ethical organizations. The utilization of ethical leadership is crucial for ethical organizations that seek to serve suppliers and customers, increase business performance, strengthen competitiveness, and achieve continuous success in global business. Therefore, it is essential for ethical organizations to explore their ethical leadership applications, promote a strategic plan to systematically evaluate their practical advancements, and urgently respond to the ethical leadership needs of organizational members in ethical organizations. Applying ethical leadership in ethical organizations will greatly improve organizational performance and reach business goals in the social media age.


2020 ◽  
pp. 009102602094454
Author(s):  
Wisanupong Potipiroon ◽  
Achakorn Wongpreedee

Local governments in several developing countries are plagued with corruption. This study draws attention to the role of organizational ethical climate in promoting whistleblowing intentions among local government employees and asks whether public service motivation (PSM) and perceptions of psychological safety mediate this relationship. Based on survey data of 365 employees in 40 local governments in Thailand, our multilevel analysis confirms that the relationships between ethical climate and internal and external whistleblowing intentions were indirect. In particular, psychological safety was found to play a mediating role at both the individual and organizational levels of analysis, whereas the mediating role of PSM was observed only at the individual level. The findings also revealed the presence of “collective PSM” at the organizational level, which in turn helped to facilitate external whistleblowing intentions. This research unveils the importance of individual- and organization-level factors in the whistleblowing decision-making process.


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