Recent years, ethical management and corporate social responsibility are not the options of the firms which their companies sales exceed their expected income but they are necessary conditions for their sustainability. Ethical issues that happens in t...
Recent years, ethical management and corporate social responsibility are not the options of the firms which their companies sales exceed their expected income but they are necessary conditions for their sustainability. Ethical issues that happens in the business situations have a lot of influence on business activity which conflicts with stakeholder such as stockholders, customers, staff, competitors or with public sentiment without legal flaw and on the survival of the firm.
However despite social requirement, irregularities, corruption and irrationality become more systematic and intelligent, immoral behavior by organization members don't tend to be diminished. Although individual can make a moral judgement, there's discrepancy between what organization members decide is 'right' to in a given situation and what they actually do and on occasion it is a common affair to make an opposite decision to a moral judgement. Consequently, to make ethical management realize, the firms have to ensure morality of organization members and to grasp individual factors and business factors which influence on ethical decision making process.
For this purpose, this study analyzed a few previous papers and strives to grasp relative influence of individual ethics and business ethics which have effect on ethical decision-making and response behavior to dissatisfaction(EVLN) and to examine the constitutive concept of moral approbation which becomes the second level of decision making process(moral judgement) and third level of decision making process(ethical intent) as moderate factors.
For the goal of the study, investigating model is set up and individual ethics which is composed of moral judgement, business ethics which are composed of business ethical values, business ethics management system, ethical leadership are set up as independent variables and ethical intent and response behavior to dissatisfaction(EVLN) of organizational members are fixed as dependent variables and moral approbation is fixed moderate variables and their relation were examined.
Moral judgement is the degree to which he or she considers the issue or behavior morally significant. Ethical intent is the subjective probabilities individuals assign to the likelihood that a given behavioral alternative will be chosen. Moral approbation is defined as the desire for moral approval from oneself or others.
Business ethical values are the composite of the individual ethical values of managers and both the formal and informal policies on ethics of the organization. Business ethics management system is defined as a institutionalized formal system and operational system for realizing ethical management which remind employee or corporate of standards. Ethical leadership is defined as the demonstration of normatively appropriate conduct through personal actions, and interpersonal relationships, and the promotion of such conducts to followers through two-way communication, reinforcement, and decision-making.
Response behavior to job dissatisfaction(EVLN) is defined as activities and behaviors that organization members engage in as responses to these dissatisfaction. EVLN is composed of Exit, Voice, Loyalty, and Neglect. Exit is equivalent to voluntary separation or turnover from the job. Voice is political response that involves appeals to authorities either inside or outside of the managerial hierarchy. Loyalty is response that sticks with the firm for a period of time before reaction to the problem and suffer in silence, confidence that things will soon get better. Neglect is lax and disregardful behavior.
The main objectives of this study are as follows;
First, to investigate the impact of individual ethics and business ethics on ethical decision making and response behavior to dissatisfaction.
Second, to investigate the moderating effects that moral approbation have on their relationship between individual ethics-business ethics and ethical decision making, response behavior to dissatisfaction.
Third, to investigate the comparative influence on individual ethics and business ethics on ethical decision making and response behavior to dissatisfaction.
To examine this, a survey has been made as follows; The sample for study consist of 1,000 organizational members of 776 firms and statistical computation was done on the SPSS18.0. The research was substantiated through statistical analysis of simple frequency analysis, Chi-square test, credibility and validity, correlation, variance, and moderated regression analysis.
The result of this survey are summarized as follows;
Firstly, it shows that moral judgement has effect on ethical intent and response behavior to dissatisfaction(EVLN). On ethical judgement, on the basis of ethical ideology, moral equity indicates positive effect on ethical intent, relativism indicates negative effect and contractualism did not indicate significance on ethical decision making. Furthermore, moral judgement also has influence on EVLN of organization members. Contractualism indicates positive effect on exit behavior and moral equity and relativism indicate negative effect on voice behavior and loyalty behavior and moral equity indicate negative effect on neglect behavior, and relativism and contractualism indicate positive effect on neglect behavior.
Secondly, business ethics which consists of business ethical values, business ethics management system, ethical leadership of supervisors indicates positive effect on ethical intent of organizational members. In precedent studies by other researchers, ethical leadership of supervisors was referred to a leading cause which determines ethical intent of subordinates but this thesis shows that the ethical leadership of supervisors doesn't have an effect on his own ethical intent but it has a positive effect on supervisor's or colleague's ethical intent. It implies that fundamental attribution error which respondent find internalized attribution about his own behavior intent and find externalized attribution about other's behavior is operated at this point. Consequently, it can be predicted that the ethical leadership of supervisor plays a main role in ethical decision making in practice.
Thirdly, it shows that business ethics has positive or negative effect on response behavior to dissatisfaction(EVLN) of organizational members. Business ethical values and business ethics management system have negative effect on exit and neglect behavior. Moreover the ethical leadership of supervisors shows it diminishes exit behavior and increases voice and loyalty behavior, business ethics has a direct effect both on ethical decision making of organizational members and on response behavior to dissatisfaction(EVLN) of staff.
Lastly, this study examined desire for moral approbation which consists of desire for moral approbation-others praise, and desire for avoiding moral approbation-others blame and it is operated as explaining variables discrepancy between moral judgement and ethical intent. It revealed this study supports Jones & Ryan model(1997). Respondents who have higher moral equity and strong moral approbation-self expose more ethical decision making and it plays a main role as independent variables rather than moderate effect, and it is operated as a independent variable which affect on EVLN of organizational members as well as ethical intent.
Desire for moral approbation-others praise as an ethical person has negative effect on voice and loyalty behavior and desire for avoiding moral approbation-others blame has positive effect on exit, loyalty, neglect behavior, moral approbation-self which is crucial for moral approbation of the self has positive effect on exit, voice, loyalty and neglect behavior. In other words, desired moral approbation from moral referent group turns out to be a leading variable which has direct and indirect influence on ethical intent and response behavior to dissatisfaction.