The Role of Corporate Value Clusters in Ethics, Social Responsibility, and Performance: A Study of Financial Professionals and Implications for the Financial Meltdown
- 1.8k Downloads
This article delves into a potential mindset that may be responsible for the recent financial meltdown. Research relating to this mindset from different perspectives is reviewed. The findings from this literature review are used to create a conceptual framework for the empirical, ethical, and corporate social responsibility study of financial professionals. Data were collected from a survey of the professional membership of a large national association of financial professionals. This article reports the results of the analysis of data relative to the relationships among the four constructs—financial professionals’ perceived organizational value clusters, ethics, corporate social responsibility, and corporate performance. The findings indicate that organizational core values significantly affect corporate ethics, social responsibility, and financial performance. We propose that organizations in the financial industry can move toward being more ethical and socially responsible by adopting organic core values (e.g., democratic, open, trusting, enterprising, creative, stimulating) and moving away from mechanistic values (e.g., structured, regulated, procedural, authoritarian, closed, callous). We also found the adaptation of organic core values does not require the organization to suffer a loss in financial performance.
KeywordsEthical mind-set Moral, social, and cultural model Financial meltdown Corporate core value clusters Corporate ethics/social responsibility/performance Corporate governance
- Beyer, J. M., & Trice, H. M. (1981). ‘Managerial Ideologies and the Use of Discipline’ Proceedings of the Annual Meeting of the Academy of Management. August 2–5. San Diego, CA.Google Scholar
- Byus, K., Deis, D., & Ouyang, B. (2010). Doing well by doing good: Corporate social responsibility and profitability. SAM Advanced Management Journal, 75(1), 44–55.Google Scholar
- Checkland, P., & Scholes, J. (1999). Soft systems methodology in action. Chichester: Wiley.Google Scholar
- Chow, W. (2010). Banks and governance: Will the U.S. financial reform act restore trust in wall street? Retrieved from http://www.ethicalcorp.com/communications-reporting/banks-and-governance-will-us-financial-reform-act-restore-trust-wall-street. Accessed 2 Oct 2010.
- Financial Crisis Inquiry Commission. (2010). The hearing on “the role of derivatives in the financial crisis”. Washington, DC.Google Scholar
- Forcht, K. A. (1987). Survey of college students concerning computer ethics: Practitioner’s views’ survey instrument. Harrisonburg: James Madison University.Google Scholar
- Gill, A. (2008). Corporate governance as social responsibility: A research agenda. Berkeley Journal of International Law, 26(2), 452–478.Google Scholar
- Harrison, R. (1988). Diagnosing organizational ideology. Study instrument. Wiltshire: Development Research Associates.Google Scholar
- Hudson, M. (2010). The monster: How a gang of predatory lenders and Wall Street bankers fleeced America—And spawned a global crisis. New York: Times Books.Google Scholar
- Jackson, K. T. (2010). The scandal beneath the financial crisis: Getting a view from a moral–Cultural mental model. Harvard Journal of Law & Public Policy, 33(2), 735–778.Google Scholar
- Jin, K. G., & Drozdenko, R. (2003). Managers, organizational values and ethical attitudes in the direct marketing industry. Business & Professional Ethics Journal, 22(4), 43–66.Google Scholar
- Jin, K. G., & Drozdenko, R. (2010). Relationships among perceived organizational core values, corporate social responsibility ethics, and organizational performance outcomes: An empirical study of information technology professionals. Journal of Business Ethics, 92(3), 341–359.CrossRefGoogle Scholar
- Keohane, J. (2010). How facts backfire: Researcher discover a surprising threat to democracy: our brains. Retrieved July 11, 2010, from http://www.boston.com.
- Lewis, M. (1989). Liar’s poker. New York: W.W. Norton & Company.Google Scholar
- Lewis, M. (2010). The big short: Inside the doomsday machine. New York: W.W. Norton & Company.Google Scholar
- Sorkin, A. R. (2010). Too big to fail: The inside story of how Wall Street and Washington fought to save the financial system—And themselves. New York: Penguin Books.Google Scholar
- Swamy, M. R. K. (2009). Financial management calls for ethical-based financial statement and analysis. Journal of Financial Management and Analysis, 22(2), 70–84.Google Scholar
- Vickers, G. (1965). The art of judgment. London: Chapman & Hall.Google Scholar