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• Introduction
Ethics is a branch of philosophy which seeks to address questions about
morality, such as what the fundamental semantic, ontological, and epistemic
nature of ethics or morality is (meta-ethics), how moral values should be
determined (normative ethics), how a moral outcome can be achieved in specific
situations (applied ethics), how moral capacity or moral agency develops and
what its nature is (moral psychology), and what moral values people actually
abide by (descriptive ethics).
Business ethics may be understood as ‘how personal moral norms apply to the
activities and goals of commercial enterprise’ (Nash, 1993: 5). Business and
personal decisions need to be ethical because they affect guests, employees,
suppliers, friends, and families (Peceri, 1997). The goal of any ethics code is to
create an environment conducive to ethical behavior, because it is through
ethical behavior that guests’ needs will be met or exceeded, and the organization
will profit (Hogan, 1992). Creating ethical workplaces requires dealing with the
differences in standards within the workforce (Kapoor, 1991). Ethical people are
concerned for others and live their lives according to the highest level of human
principles (Fisher, 1998). Codes of ethics have been criticized for being too
generic and platitudinous, and without power to reward and punish, they are
often ineffective (Malloy & Fennell, 1998).
Luckily, in the world of business ethics, your employer helps you. In a nutshell,
their values are your values (in the context of work). Your freedom to choose
your own ethical values is somewhat limited. Considering the rash of corporate
scandals these days, the thought of following the corporation's values might not
be too comforting. Problem: Whose or what values can you trust? (Mark S.
Putnam, 2001)
You can have professional ethics, but you seldom hear about professional
morals. Ethics tend to be codified into a formal system or set of rules which are
explicitly adopted by a group of people. Thus you have medical ethics. Ethics are
thus internally defined and adopted, whilst morals tend to be externally imposed
on other people.
Ethics is at the heart of good management (Friedman & Friedman, 1988). Ethical
management is reflected in the way employees are treated and influences how
they perform their jobs (Waddock & Smith, 2000). When organizations operate
ethically, they can develop reputations for being reliable, trustworthy and
conscientious. This reduces transaction cost and increases customer loyalty
(Wong & Snell, 2003). Hospitality managers are personally accountable for the
ethical quality of their decisions as well as those of their subordinates (Van Hoof,
McDonald, Yu, & Vallen, 1996).
Professional organizations will often have codes of ethics for their memberships
to enhance the reputation of the particular industry and to reduce outside
regulation (Weinstein, 1993). Younger employees need particular attention in
terms of their higher tolerance for unethical behaviors, and ethical training is
strongly recommended for all employees (Wong, 1998). According toWiener &
Vardi (1990) culture is defined as a system of shared values which produce
normative pressures on members of organization. Ethical context and
organizational commitment Organizational commitment is commonly defined as
employees' interest in and connection to an organization (Hunt et al., 1989;
Meyer and Allen, 1997; Mowday et al., 1979). Employees who are committed to
their firms "tend to identify with the objectives and goals of their organizations
and want to remain with their organizations" (Hunt et al., 1989, p. 81).
If you want to change the culture, you will have to start by changing the
organization. (Mary Douglas; 1985).Ethical context and organizational
commitment Organizational commitment is commonly defined as employees'
interest in and connection to an organization (Hunt et al., 1989; Meyer and Allen,
1997; Mowday et al., 1979). Employees who are committed to their firms "tend to
identify with the objectives and goals of their organizations and want to remain
with their organizations" (Hunt et al., 1989, p. 81). . According to Schein (1985),
corporate values, as a major dimension of a corporate culture, define the
standards that guide the external adaptation and internal integration of
organizations. Organizations prefer having trustworthy employees–ethical
employees, and because traditional values have become less prevalent, written
codes of ethics may be necessary (Beasley, 1995).
• Literature Review
Previous research concerning the relationship between ethics codes and ethical
behavior in the workplace has yielded mixed results. Little is known about the
process by which an ethics code might influence employees' ethical decisions
(Schwartz, 2001). We suggest that unless ethics codes influence the perceptions
of employees about the ethical values of their organizations, that the codes are
unlikely to positively impact behavior. Employees' beliefs about their employers'
ethical values appear to be just as important, if not more important, than the
"objective reality" of organizations' values, since research indicates that it is
employees' perceptions of the organizational context that influences their ethical
decision-making (Akaah and Lund, 1994; Barnett and Vaicys, 2000; Weaver et
al., 1999). as people becoming more aware of corporate responsibility, fair
dealing, integrity and other higher qualities they will be willing and eager to
involve themselves in mutual business dealings (al-Razi, 1985).
Ethics is at the heart of good management (Friedman & Friedman, 1988). Ethical
management is reflected in the way employees are treated and influences how
they perform their jobs (Waddock & Smith, 2000). When organizations operate
ethically, they can develop reputations for being reliable, trustworthy and
conscientious. This reduces transaction cost and increases customer loyalty
(Wong & Snell, 2003).
When employees believe that the organizations for which they work have strong
ethical values, they appear to be more likely to engage in ethical behavior.
Because we believe that ethics codes largely affect behavior through their impact
on employee perceptions of the organizational context, our study was designed
to assess whether the simple existence of ethics codes affected perceptions of
organizations' ethical values. Committed employees generally feel a connection
to company values (Schwepker & Good, 1999). Valentine et al. (2002) revealed a
strong relationship between corporate ethical values and individual employee’s
organizational commitment. An examination of 1246 marketing professionals
(managers and researchers) revealed that corporate ethical values are significant
substantive predictors of organizational commitment (Hunt et al., 1989). Sims
(1991) explained that an ethical context is developed by ‘managin the
psychological contracts between the organization and its employees, reinforcing
the employee’s organizational commitment and encouraging an ethically-oriented
organizational culture’ (Sims, 1991: 495). Also, in their studies, Somers (2001)
and Okpara (2003) suggested that the presence of corporate ethical values were
associated with high levels of organizational commitment.
Future research should attempt to link the existence and content of ethics codes
to employees' beliefs about the ethical climate in their organizations. Although
our study found that the existence of ethics codes positively influenced
perceptions, respondents had to be aware of the existence of their organizations'
ethics codes in order to respond affirmatively to the survey question. Therefore, it
is difficult to separate the "existence" of the ethics code from employee
"awareness" of the existence of the code. Better methods of developing and
communicating ethics codes must be developed. Employees' appreciation for
ethics codes appears to be enhanced by systematically revisiting ethical
business perspectives (Fritz et al., 1999)."For an ethical code to be available to
organizational members for adoption, that code and its implications must be
articulated by the organization in its day-to-day routine activities" (Fritz et al.,
1999, p. 290).
Furthermore, Sims & Keon (1997) indicated that organizational ethics and values
tend to be positively related to employees’ level of satisfaction and negatively
related to their expressed intention to turnover. Similarly, Schwepker (2001) also
showed that the ethical climate was positively associated with job satisfaction
and organizational commitment, and was negatively associated with turn over
intentions.
The review of the literature by Reed, et al. determines that empirical studies are
inconclusive. In the future researchers should recognize the potential importance
of focusing upon "corporate culture as a factor affecting social performance"
(Reed, et al. 1990 p. 36).
Utilizing the Ethical Climate Questionnaire, also developed by Victor and Cullen
(1987, 1988), this research attempts to explain the discovery of multiple
organizational ethical sub climates. Specific ethical decision-making dimensions
and ethical sub climates are hypothesized to be associated with different depart-
ment types due to differences in the departments' tasks and stakeholder
relationships. This research also discusses the behavioral implications
associated with the types of ethical sub climates found in the organization.
Weeks & Nantell (1992) showed that well-communicated codes of ethics led to
increased ethical standards and superior job performance of sales people in the
American context. Singhapakdi et al. (1995) empirically established that
corporate ethical values positively influence a marketer’s perceptions of the
importance of ethics and social responsibility in order to achieve organizational
effectiveness, Thus, corporate business ethics individually or jointly influence
organizational performance (Wu, 2002). Managers at every level of the
organization should regularly discuss the ethical values and what it means to
their division or department (Stevens, 1999), otherwise it will not be accepted
and adopted by employees.
Since the presence of corporate ethical values influences employee’s level of
commitment, an important implication of this finding is for management to
encourage and support the development of written codes of ethics. Ethical
people are concerned for others and live their lives according to the highest level
of human principles (Fisher, 1998). There are examples of managers who stand-
up for their values under fire and are accorded the title of “true professional”
Cook and Emsler (1999) demonstrate, career success, in the form of promotion
is typically decided by superiors, not those who are or will be subordinates. They
suggest that relatively little is known about the perceptions and expectations of
potential subordinates, notwithstanding the informal power that these individuals
may later have in influencing the relative success or otherwise of a manager’s
achievements within any position.
Many different disciplines, institutions, and professions have norms for behavior
that suit their particular aims and goals. These norms also help members of the
discipline to coordinate their actions or activities and to establish the public’s trust
of the discipline. For instance, ethical norms govern conduct in medicine, law,
engineering, and business. Ethical norms also serve the aims or goals of
research and apply to people who conduct scientific research or other scholarly
or creative activities, and there is a specialized discipline, research ethics, which
studies these norms.
The main purpose of the study is to explore critically examine in a descriptive &
analytical manner the relevance of ethical values to organizational image. Ethical
values improve the organizational over all images. Organizational image will be
improved if the inner environment of organization is good enough. Inner
environment can be improved by teaching ethics & values to the employees.
These ethics includes responsibility, trust, quality, team work, leadership etc. If
these ethical values are present & applied in the organization then employees
get to know that what their boundaries are. They also get to know that they
should work but keep these boundaries in mind. If employees will work using
ethical values, there performance will increase because they know well about
their responsibilities. So Ethical values have relevance with organizational image
& ethical values help the management to improve the image of organization.
To examine Islamic Ethical values & their impact on organizational image &
employees performance in Pakistan.
• Contribution
The study will help to understand the issues related to organizational image &
employees performance & how it can be improved by using ethical values in the
organization.
This study will provide a strong base & encourage the management in the
organizations to introduce Islamic ethical values, norms & ethical decision
making. As a result employee’s performance will increase. Managers &
employees will more concentrate on the quality management. Relationship with
the customers increases, & it will effect on the organizational image. This study
will help managers in improving the decision making process for future purposes.
• Problem Statement
If we talk about Ethical values & organizational image, We get to know that
ethical values increase the quality management & it will improve the
organizational image. In SME sector we develop a problem statement that. “If we
increase the quality of goods, & provide the goods according to needs & wants of
customers, it will improve the organizational image.
• Research Design
In research design we take two variables. These variables include dependant
variable and independent variable. On the basis of which we will make the
hypothesis.
The independent variable includes ethical values & dependent variable includes
organizational image. Trust, teamwork, employee’s performance, quality
management, these are some components of Ethical values. If we increase or
decrease them, it will affect organizational image. Luckily, in the world of
business ethics, your employer helps you. In a nutshell, their values are your
values (Mark S. Putnam: 2001). Considering the rash of corporate scandals
these days, the thought of following the corporation's values might not be too
comforting. Problem: Whose or what values can you trust? (Mark S. Putnam,
2001).
• Hypothesis
H1: Ethical values will be positively associated with the organizational
image.
• Methodology
Measurements
Corporate ethical values were tapped by a five-item scale developed by Hunt et
al. (1989). This construct was measured in order to capture three broad-based
perceptions:
(i) The extent to which employees perceive their managers acting ethically in
their organizations;
(ii) The extent to which employees perceive their managers concerned about
ethical issues in the organization; and
(iii) The extent to which employees perceive that ethical (unethical) behaviors are
rewarded (or punished) in their organizations. A three-item scale, developed by
Schwepker (2001), is used to measure job satisfaction. Turnover intention was
measured by the instrument developed by Mobley et al. (1979).
• Data Analysis
After data collection and coding, the appropriate data analytic techniques
including descriptive and multivariate analyses will be carried out keeping in view
the objective of the study by using latest available version of SPSS.
• Conclusion
In this study, an integrative framework for quality culture, corporate ethical
values, organizational commitment, job performance, job satisfaction and
turnover intentions was developed and tested with a series of statistical methods.
The model used the data collected from Turkish manufacturing companies.
Based on the findings, a number of guidelines can be offered regarding the role
of each exploratory variable in employees’ work-related attitudes and job
performance.
A main contribution of this study is that a significant effect of quality culture on
work-related employee attitudes is found, which confirms the results of previous
research that consider quality culture as an important component in fostering
organizational commitment, job satisfaction and job performance (Parncharoen
et al., 2003; Cimete et al., 2003; Wilkins & Ouchi, 1983). Corporate ethical values
(CEV) are also found to be positively related to organizational commitment and
negatively related to turnover intentions, confirming the recent research (Okpara,
2003; Somers, 2001; Valentine et al., 2002; Hunt et al., 1989). However, contrary
to some previous research (Sims & Keon, 1997; Weeks & Nantell, 1992; Wu,
2002), no significant effect of CEV on job satisfaction and job performance was
revealed, although there is a positive correlation between CEV, job satisfaction
and job performance. In other words, CEV was not associated with job-related
attitudes and performance.
Therefore, employees reported higher levels of commitment, satisfaction and
performance when there was an organization-wide quality culture dedicated to
outstanding quality in service, products and employees’ work life. Our findings
further yielded that turnover intentions would be lowered with high levels of
commitment and wider agreement of corporate ethical values.
Moreover, the mediating effect of organizational image was also examined. It
was revealed that organizational image partially mediated the relationships
between quality culture–job performance, quality culture–job satisfaction and
corporate ethical values turnover intentions. In addition, it was shown that
organizational image fully mediated the relationship between quality culture and
turnover intentions. That is, quality culture affects job performance and job
satisfaction both directly and through organizational image, whereas quality
culture affects turnover intentions only through organizational image. Similarly,
corporate ethical values affect turnover intentions both directly and through
organizational image.
• Bibliography
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