Journal of Business Ethics

, Volume 100, Issue 4, pp 581–593 | Cite as

You Support Diversity, But Are You Ethical? Examining the Interactive Effects of Diversity and Ethical Climate Perceptions on Turnover Intentions

  • Robert Stewart
  • Sabrina D. Volpone
  • Derek R. Avery
  • Patrick McKay
Article

Abstract

Efforts to identify antecedents of employee turnover are likely to offer value to organizations through money saved on recruitment and new-hire training. The authors utilized the stakeholder perspective to corporate social responsibility to examine the effects of a perceived climate for ethics on the relationship between diversity climate and voluntary turnover intentions. Specifically, they examined how ethics climate (employees’ perceptions that their organization values and enforces ethically correct behavior) affected the diversity climate–turnover intentions relationship. Results indicated that ethics climate moderated the diversity climate–turnover intentions relationship. Turnover intentions were lowest among workers perceiving both a pro-diversity and highly ethical climate. These results reinforce the need to communicate both diversity values and ethical standards to employees.

Keywords

diversity climate ethical climate turnover intentions corporate social responsibility 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Adams, J. S., A. Tashchian, & T. H. Shore: 2001, ‘Codes of Ethics as Signals for Ethical Behavior’, Journal of Business Ethics 29, 199-211.CrossRefGoogle Scholar
  2. Aiken, L. S. and S. G. West: 1991, Multiple Regression: Testing and Interpreting Interactions (Sage Publications, Thousand Oaks).Google Scholar
  3. Aquino, K., R. W. Griffeth, D. G. Allen and P. W. Hom: 1997, ‘Integrating Justice Constructs into the Turnover Process: A Test of a Referent Cognitions Model’, Academy of Management Journal 40, 1208–1227.CrossRefGoogle Scholar
  4. Arnold, J. and D. K. Mackenzie: 1999, ‘Graduates’ Work Experiences as Predictors of Organizational Commitment, Intention to Leave and Turnover: Which Experience Really Matters?’, Applied Psychology 48 , 211–238.Google Scholar
  5. Avery, D. R. and D. Johnson: 2007, ‘Now You See It, Now You Don’t: Mixed Messages Regarding Workforce Diversity’, in K. Thomas (ed.), Diversity Resistance in Organizations (LEA-Taylor Francis, NYC), pp. 221 248.Google Scholar
  6. Barkman, A., J. E. Sheridan and L. H. Peters: 1992, ‘Survival Models of Professional Staff Retention in Public Accounting Firms’, Journal of Management Issues 4, 339-353.Google Scholar
  7. Bureau of Labor Statistics: 2006, ‘Employment and Earnings, Table 28-Unemployment by Reason for Unemployment, Race, and Hispanic or Latino Ethnicity’, Current Population Survey, http://www.bls.gov/cps/cpsa2005.pdf. Retrieved April 2, 2006.
  8. Carroll, A: 1979, ‘A Three-Dimensional Conceptual Model of Corporate Performance’, The Academy of Management Review 4, 497-505.Google Scholar
  9. Champoux, P. E. and W. S. Peters: 1987, ‘Form, Effect Size and Power in Moderated Regression Analysis’, Journal of Occupational Psychology 60, 243-255.Google Scholar
  10. Chatman, J. A: 1991, ‘Matching People and Organizations: Selection and Socialization in Public Accounting Firms’, Administrative Science Quarterly 36, 459-484.CrossRefGoogle Scholar
  11. Colby, A., L. Kohlberg, J. Gibbs and M. Lieberman: 1983, ‘A Longitudinal Study of Moral Judgement’, Monographs of the Society for Research in Child Development 48, 124.CrossRefGoogle Scholar
  12. Coldwell, D. A., J. Billsberry, N. van Meurs and P. J. G. Marsh: 2008, ‘The Effects of Person Organization Ethical Fit on Employee Attraction and Retention: Towards a Testable Explanatory Model’, Journal of Business Ethics 78, 611-622.CrossRefGoogle Scholar
  13. Cortina, J. M: 1993, ‘Interaction, Nonlinearity, and Multicollinearity: Implications for Multiple-Regression’, Journal of Management 19, 915-922.Google Scholar
  14. Cox Jr., T. H: 1994, Cultural diversity in organizations: Theory, research, & practice (Berrett-Koehler, San Francisco).Google Scholar
  15. Cox Jr., T. H: 2001, Creating the multicultural organization (Jossey-Bass, San Francisco).Google Scholar
  16. Crossley, C. D., E. Grauer, L. F. Lin and J. M. Stanton: 2002, ‘Assessing the Content Validity of Intention to Quit Scales’, Paper Presented at the Annual Meeting of the Society for Industrial and Organizational Psychology, Toronto, ON, Canada.Google Scholar
  17. Elvira, M. M., and L. E. Cohen: 2001, ‘Location Matters: A Cross-Level Analysis of the Effects of Organizational Sex Composition on Turnover’, Academy of Management Journal 44 , 591-605.CrossRefGoogle Scholar
  18. Evans, M. G: 1985, ‘A Monte Carlo Study of the Effects of Correlated Method Variance in Moderated Multiple Regression Analysis’, Organizational Behavior and Human Decision Processes 36, 305–323.CrossRefGoogle Scholar
  19. Griffeth, R. W., P. W. Hom and S. Gaertner: 2000, ‘A Meta-Analysis of Antecedents and Correlates of Employee Turnover: Update, Moderator Tests, and Research Implications for the Next Millennium’, Journal of Management 26, 463-488.CrossRefGoogle Scholar
  20. Hicks-Clarke, D and P. Iles: 2000, ‘Climate for Diversity and its Effects on Career and Organizational Attitudes and Perceptions’, Personnel Review 29, 324-346.CrossRefGoogle Scholar
  21. Holtom, B. C., T. R. Mitchell, T. W. Lee and E. J. Inderrieden: 2005, ‘Shocks as Causes of Turnover: What They Are and How Organizations Can Manage Them’, Human Resource Management 44, 337–352.CrossRefGoogle Scholar
  22. Hom, P. W., F. Caranikas-Walker, G. E. Prussia and R. W. Griffeth: 1992, ‘A Meta-Analytical Structural Equations Analysis of a Model of Employee Turnover’, Journal of Applied Psychology 77, 890-909.CrossRefGoogle Scholar
  23. Hom, P.W and R. W. Griffeth: 1995, Employee turnover (South-Western, Cincinnati, OH).Google Scholar
  24. Hurtado, S., J. F. Milem, A. R. Clayton-Pedersen and W. R. Allen: 1998, ‘Enhancing Campus Climates for Racial/Ethnic Diversity Through Educational Policy and Practice’, The Review of Higher Education 21, 279-302.Google Scholar
  25. Hyde, C. A., and K. Hopkins: 2004, ‘Diversity Climates in Human Service Agencies: An Exploratory Assessment’, Journal of Ethnic and Cultural Diversity in Social Work 13, 25-43.CrossRefGoogle Scholar
  26. Iglehart, A: 2000, ‘Managing for Diversity and Empowerment in Social Services’, in R. Patti (ed.), The handbook of social welfare administration (Sage, Thousand Oaks), pp. 425-444.Google Scholar
  27. Jamali, D: 2008, ‘A Stakeholder Approach to Corporate Social Responsibility: A Fresh Perspective into Theory and Practice’, Journal of Business Ethics 82, 213-231.CrossRefGoogle Scholar
  28. James, L. R.: 1982, `Aggregation Bias in Estimates of Perceptual Agreement', Journal of Applied Psychology 67, 219–229Google Scholar
  29. James, L. R., L. A. James and D. K. Ashe: 1990, ‘The Meaning of Organizations: The Role of Cognition and Values’. In: B. Schneider (ed.), Organizational Climate and Culture. Jossey-Bass, San Francisco, pp. 40–84.Google Scholar
  30. Jaramillo, F., J. P. Mulki, and P. Solomon: 2006, ‘The Role of Ethical Climate on Salesperson’s Role Stress, Job Attitudes, Turnover Intention, and Job Performance’, Journal of Personal Selling & Sales Management 26, 271-282.CrossRefGoogle Scholar
  31. Koh, H. C. and H. Y. Boo: 2001, ‘The Link between Organizational Ethics and Job Satisfaction: A Study of Managers in Singapore’, Journal of Business Ethics 29, 309–324.CrossRefGoogle Scholar
  32. Kohlberg, L: 1969, ‘Moral Stages and Moral Moralization: The cognitive-developmental approach’. In Lickona T (ed.), Moral Development and Behavior: Theory, Research, and Social Issues. Holt, Rinehart, & Winston, New York, pp. 34-35.Google Scholar
  33. Kopelman, R. E., A. P. Brief and R. A. Guzzo: 1990, ‘The Role of Climate and Culture in Productivity’, in Schneider B. (ed.), Organizational Climate and Culture (Jossey-Bass, San Francisco), pp. 282–318.Google Scholar
  34. Kossek, E. E., and S. C. Zonia: 1993, ‘Assessing Diversity Climate: A Field Study of Reactions to Employer Efforts to Promote Diversity’, Journal of Organizational Behavior 14, 61-81.CrossRefGoogle Scholar
  35. Kristof-Brown, A., K. Jansen and A. Colbert: 2002, ‘A Policy-Capturing Study of the Simultaneous Effects of Fit With Jobs, Groups, and Organizations’, Journal of Applied Psychology 87, 985-993.CrossRefGoogle Scholar
  36. Lee, T. W., T. R. Mitchell, L. Wise and S. Fireman: 1996, ‘An Unfolding Model of Voluntary Employee Turnover’, Academy of Management Journal 39, 5–36.CrossRefGoogle Scholar
  37. Longo, M., M. Mura and A. Bonoli: 2005, ‘Corporate Social Responsibility and Corporate Performance: The Case of Italian SMEs’, Corporate Governance 5, 28-42.CrossRefGoogle Scholar
  38. Luchak, A. A. and I. R. Gellatly: 2007, ‘A Comparison of Linear and Nonlinear Relations Between Organizational Commitment and Work Outcomes’,Journal of Applied Psychology 92, 786-793.CrossRefGoogle Scholar
  39. Martin, K. D. and J. B. Cullen: 2006, ‘Continuities and Extensions of Ethical Climate Theory: A Meta-Analytic Review’, Journal of Business Ethics 69, 175–194.CrossRefGoogle Scholar
  40. Martin, A. J., E. S. Jones and V. J. Callan: 2005, ‘The Role of Psychological Climate in Facilitating Employee Adjustment During Organizational Change’, European Journal of Work and Organizational Psychology 14, 263- 328.Google Scholar
  41. Mayhew, M., H. Grunwald and E. Dey: 2006, ‘Breaking the Silence: Achieving a Positive Campus Climate for Diversity From the Staff Perspective’, Research in Higher Education 47, 63-88.CrossRefGoogle Scholar
  42. McKay, P. F. and D. R. Avery: 2005, `Warning! Diversity Recruitment Could Backfire', Journal of Management Inquiry 14, 330–336Google Scholar
  43. Mckay, P. F., D. R. Avery and M. A. Morris: 2008, ‘Mean Racial-Ethnic Differences in Employee Sales Performance: The Moderating Role of Diversity Climate’, Personnel Psychology 61, 349-374.CrossRefGoogle Scholar
  44. McKay, P. F., D. R. Avery and M. A. Morris: 2009, `A Tale of Two Climates: Diversity Climate from Subordinates' and Managers' Perspectives and their Role in Store Unit Sales Performance', Personnel Psychology 62, 767–791Google Scholar
  45. McKay, P. F., D. R. Avery, S. Tonidandel, M. A. Morris, M. Hernandez and M. R. Hebl: 2007, ‘Racial Differences in Employee Retention: Are Diversity Climate Perceptions the Key?’, Personnel Psychology 60 , 35-62.CrossRefGoogle Scholar
  46. Mulki, J., J. Jaramillo and W. Locander: 2008, ‘Effect of Ethical Climate on Turnover Intention: Linking Attitudinal- and Stress Theory’, Journal of Business Ethics 78, 559-574.CrossRefGoogle Scholar
  47. Norton, J and R. Fox: 1997, The Change Equation: Capitalizing on Diversity for Effective Organizational Change (American Psychological Association,Washington, DC).CrossRefGoogle Scholar
  48. O’Reilly III, C. A., J. Chatman and D. F. Caldwell: 1991, ‘People and Organizational Culture: A Profile Comparison Approach to Assessing Person-Organization Fit’, Academy of Management Journal 34, 487-516.CrossRefGoogle Scholar
  49. Ostroff, C., A. J. Kinicki and M. M. Tamkins: 2003, ‘Organizational Climate and Culture’, in W. C. Borman, D. R. Ilgen, and R. J. Klimoski (eds.), Comprehensive handbook of psychology, Volume 12: Industrial and organizational psychology (Erlbaum, Mahwah, NJ), pp. 365–402.Google Scholar
  50. Papasolomou-Doukakis, I., M. Krambia-Kapardis and M. Katsioloudes: 2005, ‘Corporate Social Responsibility: The Way Forward? Maybe Not!’, European Business Review 17, 263-279.CrossRefGoogle Scholar
  51. Parker, C. P., B. B. Baltes, S. A. Young, J. W. Huff, R. A. Altmann, H. A. Lacost, H. A. and J. E. Roberts: 2003, ‘Relationships Between Psychological Climate Perceptions and Work Outcomes: A Meta-Analytic Review’, Journal of Organizational Behavior 24, 389 – 416.CrossRefGoogle Scholar
  52. Pettijohn, C., L. Pettijohn and A. Taylor,: 2008, ‘Salesperson Perceptions of Ethical Behaviors: Their Influence on Job Satisfaction and Turnover Intentions’,Journal of Business Ethics 78, 547-557.CrossRefGoogle Scholar
  53. Rousseau, D: 1995, Psychological Contracts in Organizations: Understanding Written and Unwritten Agreements (Sage Publications, Inc, Thousand Oaks, CA).Google Scholar
  54. Sagie, A., A. Birati and A. Tziner: 2002, ‘Assessing the Costs of Behavioral and Psychological Withdrawal: A New Model and an Empirical Illustration’, Applied Psychology: An International Review 51, 67-90.CrossRefGoogle Scholar
  55. Saini, A. and K. Martin: 2009, ‘Strategic Risk-Taking Propensity: The Role of Ethical Climate and Marketing Output Control’, Journal of Business Ethics 90, 593-606.CrossRefGoogle Scholar
  56. Schwartz, M. S., and A. B. Carroll: 2003,’ Corporate Social Responsibility: A Three-Domain Approach’, Business Ethics Quarterly 13, 503-530.Google Scholar
  57. Schwepker, C. H. J: 2001, ‘Ethical Climate’s Relationship to Job Satisfaction, Organizational Commitment and Turnover in the Sales Force’, Journal of Business Research 54, 39-52.CrossRefGoogle Scholar
  58. Simmons, J: 2004, ‘Managing in the Post-Managerialist Era: Towards Socially Responsible Corporate Governance’, Management Decision 32, 601-611.CrossRefGoogle Scholar
  59. Spector, P. E: 2006, ‘Method Variance in Organizational Research: Truth or Urban Legend?’, Organizational Research Methods 9, 221 - 232.CrossRefGoogle Scholar
  60. Steel, R. P., R. W. Griffeth, and P. W. Hom: 2002, ‘Practical Retention Strategy for the Practical Manager’, Academy of Management Executive 16, 149–162.CrossRefGoogle Scholar
  61. Tett, R.P. and J. P. Meyer: 1993, ‘Job Satisfaction, Organizational Commitment, Turnover Intention, and Turnover: Path Analysis Based on Meta-Analytic Findings’, Personnel Psychology 46, 259-293.CrossRefGoogle Scholar
  62. Tsai, M. T., and C. C. Huang: 2008, ‘The Relationship Among Ethical Climate Types, Facets of Job Satisfaction, and the Three Components of Organizational Commitment: A Study of Nurses in Taiwan’, Journal of Business Ethics 80 , 565-581.CrossRefGoogle Scholar
  63. Tziner, A. and A. Birati: 1996, ‘Assessing Employee Turnover Costs: A Revised Approach’, Human Resource Management Review 6, 113-123.CrossRefGoogle Scholar
  64. Victor, B. and J. B. Cullen: 1988, ‘The Organisational Bases of Ethical Work Climates’, Administrative Science Quarterly 33, 101–125.CrossRefGoogle Scholar
  65. Volpone, S. D. and D. R. Avery: 2010, ‘Stakeholders’ Perspectives on LGBT Policies’, Industrial and Organizational Psychology: Perspectives on Science and Practice 3, 90–92.Google Scholar
  66. Weeks, W. A., T. W. Loe, L. B. Chonko, C. R. Martinez, and K. Wakefield: 2006, ‘Cognitive Moral Development and the Impact of Perceived Organizational Ethical Climate on the Search for Sales Force Excellence: A Cross-Cultural Study’, Journal of Personal Selling & Sales Management 26, 205-217.CrossRefGoogle Scholar
  67. Xiao-Ping C., J. Chun, and D. J. Sego: 1998, ‘The Role of Organizational Citizenship Behavior in Turnover: Conceptualization and Preliminary Tests of Key Hypotheses’, Journal of Applied Psychology 83, 922-931.CrossRefGoogle Scholar
  68. Yang, J: 2008, ‘Effect of Newcomer Socialisation on Organizational Commitment, Job Satisfaction, and Turnover Intention in the Hotel Industry’, Service Industries Journal 28, 429-443.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media B.V. 2010

Authors and Affiliations

  • Robert Stewart
    • 1
  • Sabrina D. Volpone
    • 2
  • Derek R. Avery
    • 3
  • Patrick McKay
    • 4
  1. 1.Department of PsychologyUniversity of HoustonHoustonU.S.A.
  2. 2.Business and Management, Fox School of BusinessTemple UniversityPhiladelphiaU.S.A.
  3. 3.Human Resource ManagementFox School of Business, Temple UniversityPhiladelphiaU.S.A.
  4. 4.School of Management and Labor RelationsPiscatawayU.S.A.

Personalised recommendations