BUSI 472 Research Paper 2017.pdf

Running head: EMPLOYEE VIEWS OF BUSINESS ETHICS 1

Employee Views of Business Ethics

Liberty University

December 22, 2017

EMPLOYEE VIEWS OF BUSINESS ETHICS 2

Ethics and employees must remain at the center and focus of any organization. Drawing

on the natural-resource based view (NRBV), we propose that employee stakeholder integration is

linked to environmental performance through firms’ proactive environmental strategies, and that

this link is contingent on shared vision (Alt, E., Díez-de-castro, E. P., & Lloréns-montes, F. J.,

2015). The activities a firm does within an organization structurally, more specifically

corporate fraud cases in large US companies between 1996 and 2004 were detected and brought

forward by employees (Kaptein, M. 2011).

Employees are the heart of the organization. They are what make an organization.

Organizational commitment is commonly defined as the degree of the employers’ identification

and involvement with the organizations. Thus, an employee who is committed to the

organization identifies with it, accepts it goals and values, and it wiling to devote effort on its

behalf (Beeri, I., Dayan, R., Vigoda-Gadot, E., & Werner, S. B. 2013). This stands true with its

ethics and value system as well. Without employees a firm would simply not exist. Colossians

4:1 states, “And as you wish that others would do to you, do so to them.” Managers and

executive leadership must value and treat their employees fairly. Feedback from employees also

EMPLOYEE VIEWS OF BUSINESS ETHICS 3

experiences and attitudes towards ethics at work are vital in gauging to what extent ethics is

embedded in business, so that it becomes “business as usual”-‘just the way we do things around

here’ (2016, January 12, Ethics at Work). A 2015 study conducted found that a number of key

metrics related to the experience of ethics in the workplace have fallen. Continental European

employees are now:

the past year, and

through any other mechanism (2016, January 12 Ethics at Work).

Organizations must ensure they not only provide a code of ethics, but also review them

with potential employees, ensure that the employees understands it, signs it and will adhere to

them during the length of employment. Employees do in fact measure and assess environmental

performance. Therefore an effective, consistent, impactful ethics system is necessary. How

employees view that system is critical in how it will be applied.

In a study conducted, during the initial stages of the interviews, the interviewees were

questioned about their views on the nature of business ethics and ethical business behavior, the

EMPLOYEE VIEWS OF BUSINESS ETHICS 4

There is no such thing as a wrong decision. There’s no such thing as right decision. It’s always a

quick decision and fast decision. Nobody knows it’s right or wrong. What is more important

there must be a decision made. Without decision, work cannot move on.

Unethical managers are not aware about corporate social responsibility and ethics, about the

presented? One human resources director simply stated, “You need to shape morals not in

universities, not in school, but at home. The Americans lost it a long time ago. We call it west

toxification. It comes from the west and it’s toxic. They have lost it in the 50’s; the parents can’t

talk to their children” (Rees, C., Jamil, R., & Rowlands, K. 2015). If employees and even human

resources managers believe ethics are or should be taught at home, is there a lack thereof in

which is instilled in the workplace?

Adams suggest a theory known as the social exchange theory which maintains that a

system of social and economic exchange exists between the employee and organization, where

EMPLOYEE VIEWS OF BUSINESS ETHICS 5

fairly, they will in turn produce good results for their employer. Colossians 4:1, “masters, treat

your slaves justly and fairly, knowing that you also have a Master in heaven.” In today’s

terminology, that can be translated to employees. Considering the ethical resources in this

translation, when an organization fosters a culture that adheres to and adapts to a system of

strong ethics it enhances a culture of openness, employee participation, involvement, encourages,

Supervisors and managers also play a key role in how employees view business ethics

and morals within an organization. A study using 264 supervisor-subordinate dyadic data from

Taiwanese organizations, investigated the relationships among supervisor business moral values,

subordinate business moral values, subordinate organizational commitment, job performance,

and attendance. The results indicated that supervisor business moral values were positively

associated with subordinate business moral values, and that the latter mediated the relationship

between the former and subordinate outcomes (Jiang, D., Lin, Y., & Lin, L. 2011) When a

positive relationship exists between the two groups, the more effective and efficient the two can

work together. As Hosmer states, reciprocity is the most logical reason for morality. But the

world is filled with people who are not logical in the sense of recognizing reciprocity and the

need to be consistent (Hosmer, 2011). The Bible teaches that true leadership requires discipline,

instruction, courage, strength to do the right thing; many do not have what it takes to be a good

EMPLOYEE VIEWS OF BUSINESS ETHICS 6

leader and make the right decision; much less lead a team. Galatians 6:9, “Let us not grow weary

in doing good, for at the proper time we will reap a harvest if we do not give up.” Managers and

supervisors have a strong influence on their subordinates and employees in shaping their views

on business ethics and their corporate culture.

Some studies have been able to prove that many employees are attracted and retained by

value system to positively reflect that of the organizations. This can be a positive attribute as an

employee perhaps came in with a weaker or less than attractive set of ethics. As an employee

grows and deepens their own personal ethics, this can become attractive to other potential

employees who may be contemplating the employer as a potential opportunity. One source

defines investing into their employees personal ethics as, “a business firm’s obligation, beyond

that required by the law and economics to pursue long-term goals that are good for society,”

expanding this definition, “social responsibility is management’s acceptance of the obligation to

consider profit, consumer satisfaction and societal wellbeing of equal value in evaluating the

firm’s performance” (Coldwell, D. A., Billsberry, J., Meurs, N. v., & Philip J. G. Marsh 2008). A

study conducted found that corporate social performance contributes up to 55% of the reputation

quotient score in specific instances. Such evidence suggests that there is a clear relationship

between corporate social performance and corporate reputation. In particular, it suggests that the

EMPLOYEE VIEWS OF BUSINESS ETHICS 7

ethical and discretionary elements manifested in a company’s corporate social performance have

a significant effect on its corporate reputation and suggests, therefore, that ethically oriented

individuals are attracted to particular organizations by virtue of this aspect of their reputations

(Coldwell, D. A., Billsberry, J., Meurs, N. v., & Philip J. G. Marsh 2008). These findings indicate

that an organizations ethical value structure is appealing to potential candidates and employees.

mortgage-backed securities operations. Unethical behavior is not limited to the financial

securities industry. Johnson & Johnson, often regarded as a company with a strong ethical

reputation, agreed to pay at least $2.5 billion to resolve thousands of patients’ lawsuits who

claimed they were injured by the company’s artificial hips (Weber, J. 2015). Unethical behavior

in organizations stems not only from the lack of ethics within, but possibly the lack of training,

and the attraction of employees to the specific organization. A survey conducted by

Transparency International of 114,000 people in 107 countries in 2013 revealed that 27% paid a

bribe in the past 12 months (Weber, J. 2015). As ethical issues continued to become such an

issue, government officials and regulatory agencies stepped in to mandate an increase in

organizational ethical training programs. Some organizations such as Lockheed Martin

voluntarily took steps to deter unethical behavior by their employees. These actions ranged from

developing ethics policies to codify expected behavior to establishing a high-ranking ethics

EMPLOYEE VIEWS OF BUSINESS ETHICS 8

officer to develop and coordinate a comprehensive ethics program (Weber, J. 2015). Investing

into a stronger training program focusing on the ethics of the organization has proven effective

for many firms and businesses. The appeal of a stronger ethics training program addresses many

different subjects such as the avoidance of costly litigation, the rewards for acting ethically, the

personal development and growth that comes along with adapting stronger personal ethics and

regular basis. Any employee who is looking at a potential employer who has the possibility to

gain something of value, more than just a pay check, becomes more appealing than the other

potential option. In looking back to the comparison of the “social contract,” in the olden days,

the employees ability to earn a living wage was easy if he simply met the minimum of his

obligations to the employer, now the employee is expected to work for what organizations term

a competitive wage, which is the wage at which the employer and employers in their area have

set as the wage for a particular job (Karnes, R. 2009). As employers invest more into their

employees, even so on a personal level such as ethics and morals, it in turn adds value to the

organization and corporate culture.

The Bible instructs us in Matthew 7:12, “In everything, therefore, treat people the same

way you want them to treat you, for this is the Law and the Prophets.” Ethics and morals isn’t

EMPLOYEE VIEWS OF BUSINESS ETHICS 9

just a recommendation or an option, it is required by God to us as His people and should be

strived for in everything that we do.

References

S. (2016, January 12). Ethics at Work: The Views of Employees. Retrieved December 19, 2017,

from http://complianceandethics.org/ethics-at-work-the-views-of-employees/

Rees, C., Jamil, R., & Rowlands, K. (2015). Blame the parents! attitudes towards business ethics

with reference to MBA programs in malaysia. Industrial and Commercial Training,

47(5), 221-227. doi:10.1108/ICT-03-2015-0021

Kaptein, M. (2011). From inaction to external whistleblowing: The influence of the ethical

culture of organizations on employee responses to observed wrongdoing. Journal of

Business Ethics, 98(3), 513-530. doi:10.1007/s10551-010-0591-1

Beeri, I., Dayan, R., Vigoda-Gadot, E., & Werner, S. B. (2013). Advancing ethics in public

organizations: The impact of an ethics program on employees' perceptions and behaviors