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Level of Coherence Among Ethics Program Components and Its Impact on Ethical Intent

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Abstract

Three ethics program components, a code of ethics, ethics training initiatives and ethics-oriented performance appraisal content, were examined for their relationship to ethical intent using a sample of 525 employees from the Spanish financial services industry. As expected, all three components contributed to the prediction of ethical intent. Importantly, clusters of employees who reported experiencing distinct combinations of the program components were identified and compared for their level of ethical intent. Employees who perceived all three components to be strongly implemented reported significantly higher levels of ethical intent relative to those who viewed the components as either all weakly implemented or not present. Combinations including training initiatives plus one other element had a similar impact to the fully implemented approach. Contrary to expectations, ethics-oriented performance appraisal content did not relate more strongly to ethical intent than codes of ethics.

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Authors and Affiliations

  1. Department of Business Administration, Faculty of Social Sciences, University of Castilla-La Mancha, Avenida de los Alfares 44, 16071, Cuenca, Spain

    Pablo Ruiz, Ricardo Martinez & Job Rodrigo

  2. Department of Business Administration, Faculty of Economics and Business Administration, University of Castilla-La Mancha, Plaza de la Universidad 1, 02071, Albacete, Spain

    Cristina Diaz

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An earlier version of this article was presented at the 2012 EBEN Annual Conference held in Barcelona, Spain, September 20–22, 2012.

Appendix: Ethical Intent Measure

Appendix: Ethical Intent Measure

Vignette 1. Misusing company resources (cf. Peterson 2004; Treviño and Weaver 2001)

Ramiro sees himself as a hardworking employee and dedicated to the firm. That’s why he considers it acceptable to regularly use the photocopier and other company property (e.g., pens, paper, telephone, car, etc.) for personal business.

Action: Ramiro frequently uses firm resources for personal business.

Vignette 2. Lying to customers (cf. Peterson 2004)

As a recently hired sales representative, Ramiro is anxious to make a good impression on his superiors. That’s why, in order to maximize his sales volume, Ramiro sometimes exaggerates the value of the firm’s products to persuade customers to make a purchase.

Action: Ramiro exaggerates the value of the firm’s products.

Vignette 3. Stealing from the company (cf. Peterson 2004)

Ramiro and his coworkers are regularly asked to make out-of-town business trips. Management expects the employees to provide accurate reports concerning their trip expenses. However, Ramiro feels that he is always assigned to the most undesirable destinations, so he pads his expenses by 10 %.

Action: Ramiro pads his expense accounts by 10 %.

Vignette 4. Deceiving customers (cf. Peterson 2004)

As a salesman, customers typically ask Ramiro to provide specific recommendations concerning products that would best meet their needs. Regardless of actual customer needs, Ramiro always recommends the most expensive products to maximize sales commission.

Action: Ramiro recommends the most expensive products to maximize his commission.

Vignette 5. Making dishonest defamation (cf. Fritzsche 2000)

Ramiro is one of two candidates for an internal promotion. He came across some unfavorable personal information concerning his rival’s past. Even though the information has nothing to do with job performance, Ramiro discloses the information and gets the promotion.

Action: Ramiro disclosures damaging information about a rival to get a promotion.

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Ruiz, P., Martinez, R., Rodrigo, J. et al. Level of Coherence Among Ethics Program Components and Its Impact on Ethical Intent. J Bus Ethics 128, 725–742 (2015). https://doi.org/10.1007/s10551-014-2064-4

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