Advertisement

Journal of Business Ethics

, Volume 89, Issue 2, pp 251–260 | Cite as

An Investigation of the Effects of Corporate Ethical Values on Employee Commitment and Performance: Examining the Moderating Role of Perceived Fairness

  • Dheeraj Sharma
  • Shaheen Borna
  • James M. Stearns
Article

Abstract

Corporate ethical values (CEVs) can be viewed outside the realm of organizational training, standard operating procedures, reward and punishment systems, formal statements, and as more representative of the real nature of the organization (Organ, 1988). Past researchers have empirically demonstrated the direct influence of CEVs on job performance. This study argues that employees’ perception of organizational fairness will create perceptual distortion of CEVs. The results of the study indicate that perceived fairness moderates the influence of CEVs on two seminal outcomes, namely, job performance and commitment. The study offers prescriptive and descriptive insights to both academe and industry to understand the influence of CEVs and fairness on the performance outcomes of employees.

Key words

corporate ethical values ethics job performance commitment organizational fairness 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Adam, J. S.:1965, ‘Inequity in social exchange’, Advances in Experimental Social Psychology 2, 267–299.CrossRefGoogle Scholar
  2. Akaah, I. P. and D. Lund: 1994, ‘The influence of personal and organizational values on marketing professionals’ ethical behavior’, Journal of Business Ethics 13(6), 417–430.CrossRefGoogle Scholar
  3. Anderson, J. C. and D. W. Gerbing: 1988, ‘Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach, Psychological Bulletin 103(3), 411–423.CrossRefGoogle Scholar
  4. Armstrong, J. S. and T. S. Overton: 1977, ‘Estimating non Response Bias in Mail Surveys’, Journal of Marketing Research 14(3), 396–402.CrossRefGoogle Scholar
  5. Arrington, R.: 1998, Western Ethics: A Historical Introduction (Wiley-Blackwell, Oxford, UK).Google Scholar
  6. Babin, B. J., J. S. Boles and D. P. Robin: 2000, ‘Representing the Perceived Ethical Work Climate among Marketing Employees’, Journal of the Academy of Marketing Science 28(3), 345–358.CrossRefGoogle Scholar
  7. Bagozzi, R. P. and Y. Yi: 1988, ‘On the Evaluation of Structural Equation Model’, Journal of the Academy of Marketing Science 16(2), 74–94.CrossRefGoogle Scholar
  8. Barney, J. B.: 1986, ‘Strategic factor markets: Expectations, luck, and business strategy’, Management Science 32(10), 1231–1241.CrossRefGoogle Scholar
  9. Baumgardt, D.: 1952, Bentham and the Ethics of Today (Princeton University Press, New York, NY).Google Scholar
  10. Bergeron, D. M.: 2007, ‘The Potential Paradox of Organizational Citizenship Behavior: Good Citizens at What Cost?, The Academy of Management Review 32(4), 1078–1095.CrossRefGoogle Scholar
  11. Blodgett, J. G., D. J. Hill and S. S. Tax: 1997, ‘The effects of distributive, procedural and interactional justice on postcomplaint behavior’, Journal of Retailing 73(2), 185–210.CrossRefGoogle Scholar
  12. Bonoma, T.: 1984, ‘Making Your marketing Strategy Work’, Harvard Business Review 62(2), 69–76.Google Scholar
  13. Brockman, B. K. and R. M. Morgan: 2003, ‘The Role of Existing Knowledge in New Product Innovativeness and Performance’, Decision Sciences 34(2), 385–419.CrossRefGoogle Scholar
  14. Bruce, W.: 1994, ‘Ethical People are Productive People’, Public Productivity & Management Review 18(3), 241–252.CrossRefGoogle Scholar
  15. Buono, A. F., J. L. Bowditch and J. W. Lewis: 1985, ‘When Cultures Collide: The Anatomy of a Merger, Human Relations 38(5), 477–500.CrossRefGoogle Scholar
  16. Byrne, M. B.: 2001, Structural Equation Modeling with AMOS: Basic concepts, Applications, and Programming (Lawrence Erlbaum Associates Inc., NJ).Google Scholar
  17. Chatterjee, S., M. H. Lubatkin, D. M. Schweiger and Y. Weber: 1992, ‘Cultural Differences and Shareholder Value: Explaining the variability in the performance of related mergers, Strategic Management Journal 13(5), 319–334.CrossRefGoogle Scholar
  18. Chonko, L. B. and S. D. Hunt: 1985, ‘Ethics and marketing management: An empirical examination’, Journal of Business Research 13(4), 339–359.CrossRefGoogle Scholar
  19. Chusmir, L. H.: 1982, ‘Job Commitment and the Managerial Woman’, Academy of Management Review 7(4), 595–602.CrossRefGoogle Scholar
  20. Clemmer, E. C.: 1993, ‘An investigation into the relationship of fairness and customer satisfaction with services’, in Justice in the Workplace: Approaching Fairness in Human Resource Management (L. Erlbaum Associates, Hillsdale, NJ), pp. 193–207Google Scholar
  21. Deutsch, M.: 1968, ‘Field theory in social psychology’, in G. Lindzey and E. Aronson (eds.), Handbook of Social Psychology, Addison-Wesley Publishing Company, Reading, MS), pp. 412–487.Google Scholar
  22. Dwyer, S., J. Hill, and W. Martin: 2000, ‘An Empirical Investigation of Critical Success Factors in the Personal Selling Process for Homogenous Goods’, Journal of Personal Selling & Sales Management 20(9), 151–160.Google Scholar
  23. Eisenberger, R., P. Fasolo, and V. Davis-LeMastro: 1990, ‘Perceived Organizational Support and Employee Diligence, Commitment, and Innovation’, Journal of Applied Psychology 75(1), 51–59.CrossRefGoogle Scholar
  24. Eisenberger, R., R. Huntington, S. Hutchinson, and D. Sowa: 1986, ‘Perceived organizational support’, Journal of Applied Psychology 71(3), 500–507.CrossRefGoogle Scholar
  25. Festinger, L.: 1957, A Theory of Cognitive Dissonance (Harper and Row Inc., Evanston, IL).Google Scholar
  26. Gerbing, D. W. and J. C. Anderson: 1988, ‘An Updated Paradigm for Scale Development Incorporating Unidimensionality and Its Assessment’, Journal of Marketing Research 25(2), 186–192.CrossRefGoogle Scholar
  27. Goodwin, C. and I. Ross: 1992, ‘Consumer Responses to Service Failures: Influence of Procedural and Interactional Fairness Perceptions’, Journal of Business Research 25(2), 149–164.CrossRefGoogle Scholar
  28. Hair, J. F., W. C. Black, B. J. Babin, R. E. Anderson and R. L. Tatham: 2006, Multivariate Data Analysis, 6th edition (Prentice-Hall, Upper Saddle River, NJ).Google Scholar
  29. Hall, D. T. and E. E. Lawler: 1970, ‘Job Characteristics and Pressures and the Organizational Integration of Professionals’, Administrative Science Quarterly 15(3), 271–281.CrossRefGoogle Scholar
  30. Hambrick, D. C. and A. A. Cannella: 1993, ‘Relative standing: A framework for understanding departures of acquired executives’, The Academy of Management Journal 36(4), 733–762.CrossRefGoogle Scholar
  31. Heider, F.: 1958, The Psychology of Interpersonal Relations (John Wiley and Sons, Inc, New York, NY).CrossRefGoogle Scholar
  32. Herndon, N. C., J. P. Fraedrich and Q. J. Yeh: 2001, ‘An Investigation of Moral Values and the Ethical Content of the Corporate Culture: Taiwanese Versus U.S. Sales People’, Journal of Business Ethics 30(1), 73–85.CrossRefGoogle Scholar
  33. Hunt, S. D., V. R. Wood and L. B. Chonko: 1989, ‘Corporate ethical values and organizational commitment’, Journal of Marketing 53(3), 79–90.CrossRefGoogle Scholar
  34. Hyman, M. R.: 1990, ‘Ethical Codes Are Not Enough’, Business Horizons 33(2), 15–23.CrossRefGoogle Scholar
  35. Kristof-Brown, A. L.: 1996, ‘Person-organization fit: An integrative review of its conceptualizations, measurement, and implications’, Personnel Psychology 49, 1–49.CrossRefGoogle Scholar
  36. Lubatkin, M., H. Merchant and N. Srinivasan: 1993, ‘Construct validity of some unweighted product-count diversification measures’, Strategic Management Journal 14(6), 433–449.CrossRefGoogle Scholar
  37. Masterson, S. S.: 2001, ‘A trickle-down model of organizational justice: Relating employees’ and customers perceptions of and reactions to fairness’, Journal of Applied Psychology 86(4), 594–604.CrossRefGoogle Scholar
  38. Michelli, J.: 2006, The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary (McGraw-Hill, New York, NY).Google Scholar
  39. Mittal, B. and J. N. Sheth: 2001, ValueSpace: Winning the battle for market leadership: Lessons from the world’s most admired companies (McGraw-Hill, New York, NY).Google Scholar
  40. Moorman, R. H., B. P. Niehoff, and D. W. Organ: 1993, ‘Treating Employees Fairly and Organizational Citizenship Behavior: Sorting the Effects of Jobs Satisfaction, Organizational Commitment, and Procedural Justice’, Employee Responsibilities and Rights Journal 6(3), 209–225.CrossRefGoogle Scholar
  41. Morrison, D. E.: 1994, ‘Psychological contracts and change”, Human Resource Management, 33(3), 353–372.CrossRefGoogle Scholar
  42. Netemeyer, R. G., J. S. Boles, D. O. McKee, and R. McMurrian: 1997, ‘An investigation into the antecedents of organizational citizenship behaviors in a personal selling context’, Journal of Marketing 61(3), 85–98.CrossRefGoogle Scholar
  43. Nwachukwu, S. L. S. and S. J. Vitell Jr.: 1997, ‘The Influence of Corporate Culture on Managerial Ethical Judgments’, Journal of Business Ethics 16(8), 757–776.CrossRefGoogle Scholar
  44. Oliver, R. L. and J. E. Swan: 1989, ‘Consumer perceptions of interpersonal equity and satisfaction in transactions: A field survey approach’, Journal of Marketing 53(2), 21–35.CrossRefGoogle Scholar
  45. Organ, D.: 1988, Organizational Citizenship Behavior: The Good Soldier Syndrome (Lexington Books, Lexington, MA).Google Scholar
  46. Osgood, C. E. and P. H. Tannenbaum: 1955, ‘The principle of congruity in the prediction of attitude change’, Psychology Review 62(1), 42–55.CrossRefGoogle Scholar
  47. Podsakoff, P. M. and D. W. Organ: 1986, ‘Self-Reports in Organizational Research: Problems and Prospects’, Journal of Management 12(4), 531–544.CrossRefGoogle Scholar
  48. Posner, B. Z. and W. H. Schmidt: 1993, ‘Value congruence and differences between the interplay of personal and organizational value system’, Journal of Business Ethics 12(5), 341–347.CrossRefGoogle Scholar
  49. Rabinowitz, S. and D. T. Hall: 1977, ‘Organizational research on job involvement, The Psychological Bulletin 84(2), 245–258.Google Scholar
  50. Sales, A. L. and P. H. Mirvis: 1984, ‘When cultures collide: Issues in acquisition’, in Kimberly and Quin (eds.), New-futures: The challenge of managing corporate transitions (Dow Jones-Irwin, Homewood, IL), pp. 107–133.Google Scholar
  51. Schwepker, C. H.: 2001, ‘Ethical climate’s relationship to job satisfaction, organizational commitment and turnover intention in the salesforce’, Journal of Business Research 54(1), 39–52.CrossRefGoogle Scholar
  52. Schwepker, C. H.: 2003, ‘An exploratory investigation of the relationship between ethical conflict and salesperson performance’, Journal of Business and Industrial Marketing 18(4–5), 435–446.Google Scholar
  53. Sheehan, T. J., S. D. Husted, D. Candee, C. D. Cook, and M. Bargen: 1980, ‘Moral judgment as a predictor of clinical performance’, Evaluation and the Health Professions 3(4), 392–403.Google Scholar
  54. Sims, R. L. and J. P. Keenan: 1998, ‘Predictors of External Whistle blowing: Organizational and Intrapersonal Variables’, Journal of Business Ethics 17(4), 411–421.CrossRefGoogle Scholar
  55. Treviño, L. K., K. D. Butterfield and D. L. McCabe: 1998, ‘The ethical context in organizations: influences on employee attitudes and behaviors’, Business Ethics Quarterly 8(3), 447–476.CrossRefGoogle Scholar
  56. Treviño, L. K., G. R. Weaver and S. Reynolds: 2006, ‘Behavioral Ethics in Organizations: A Review’, Journal of Management 32(6), 951–990.CrossRefGoogle Scholar
  57. Valentine, S. B., M. M. Greller and S. V. Richtermeyer: 2006, ‘Employee job response as a function of ethical context and perceived organization support’, Journal of Business Research 59(5), 582–588.CrossRefGoogle Scholar
  58. Vitell, S. J. and E. R. Hidalgo: 2006, ‘The impact of corporate ethical values and enforcement of ethical codes on the perceived importance of ethics in business: a comparison of U.S. and Spanish managers’, Journal of Business Ethics 64(1), 31–43.CrossRefGoogle Scholar
  59. Williamson, O. E.: 1993, ‘Transaction Cost Economics Meets Posnerian Law and Economics’, Journal of Institutional and Theoretical Economics 149(1), 99–118.Google Scholar
  60. Wright, T. W., J. W. Walter and T. Grundy: 1996, ‘Cost is a Strategic Issue’, Long Range Planning 29(1), 58–68.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media B.V. 2009

Authors and Affiliations

  • Dheeraj Sharma
    • 1
  • Shaheen Borna
    • 2
  • James M. Stearns
    • 3
  1. 1.Athabasca UniversityAthabascaCanada
  2. 2.Ball State UniversityMuncieU.S.A.
  3. 3.Miami UniversityOxfordU.S.A.

Personalised recommendations