Skip to main content

Advertisement

Log in

Investigating the Impacts of Organizational Factors on Employees’ Unethical Behavior Within Organization in the Context of Chinese Firms

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Unethical behavior is under-examined in the workplace. To date, few studies have attempted to explore the antecedents of an employee’s ethical decisions, particularly with respect to unethical behavior and its effects. To capture an employee’s psychological perception of unethical behavior in the workplace, this paper integrates organizational factors (codes of conduct, likelihood of detection, and performance pressure) into the Theory of Reasoned Action. By conducting an empirical study in a Chinese firm, we found that codes of conduct and performance pressure have a significant influence on an employee’s attitude toward and social beliefs about unethical behavior. We also demonstrated that employees’ unethical behaviors affect the firm performance of an entrepreneurial venture. The insights gleaned from the findings on this Chinese company have a number of important implications for both research and practice.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2

Similar content being viewed by others

References

  • Aarts, H., & Dijksterhuis, A. (2003). The silence of the library: Environment, situational norm, and social behavior. Journal of Personality and Social Psychology, 84(1), 18.

    Article  Google Scholar 

  • Ackoff, R. L. (1987). Business ethics and the entrepreneur. Journal of Business Venturing, 2(3), 91–185.

    Article  Google Scholar 

  • Adams, J. S., Tashchian, A., & Shore, T. H. (2001). Codes of ethics as signals for ethical behavior. Journal of Business Ethics, 29(3), 199–211.

    Article  Google Scholar 

  • Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behaviour. Englewood Cliffs, NJ: Prentice-Hall.

    Google Scholar 

  • Aquino, K., & Reed, A, I. I. (2002). The self-importance of moral identity. Journal of Personality and Social Psychology, 83(6), 1423.

    Article  Google Scholar 

  • Arrow, K. J. (1973). Social responsibility and economic efficiency. Public Policy, 21(3), 17–303.

    Google Scholar 

  • Barnett, M. L., & Salomon, R. M. (2006). Beyond dichotomy: The curvilinear relationship between social responsibility and financial performance. Strategic Management Journal, 27(11), 22–1101.

    Article  Google Scholar 

  • Barraquier, A. (2011). Ethical behaviour in practice: Decision outcomes and strategic implications. British Journal of Management, 22(s1), S28–S46.

    Article  Google Scholar 

  • Baucus, M. S., & Baucus, D. A. (1997). Paying the piper: An empirical examination of longer-term financial consequences of illegal corporate behavior. Academy of Management Journal, 40(1), 51–129.

    Google Scholar 

  • Baumeister, R. F. (1984). Choking under pressure: Self-consciousness and paradoxical effects of incentives on skillful performance. Journal of Personality and Social Psychology, 46(3), 610.

    Article  Google Scholar 

  • Bazerman, M. H., & Banaji, M. R. (2004). The social psychology of ordinary ethical failures. Social Justice Research, 17(2), 15–111.

    Article  Google Scholar 

  • Benson, G. C. (1989). Codes of ethics. Journal of Business Ethics, 8(5), 19–305.

    Article  Google Scholar 

  • Bobek, D. D., Hageman, A. M., & Kelliher, C. F. (2013). Analyzing the role of social norms in tax compliance behavior. Journal of Business Ethics, 115(3), 68–451.

    Article  Google Scholar 

  • Bobek, D. D., Roberts, R. W., & Sweeney, J. T. (2007). The social norms of tax compliance: Evidence from Australia, Singapore, and the United States. Journal of Business Ethics, 74(1), 49–64.

    Article  Google Scholar 

  • Bommer, M., Gratto, C., Gravander, J., & Tuttle, M. (1987). A behavioral model of ethical and unethical decision making. Journal of Business Ethics, 6(4), 80–265.

    Article  Google Scholar 

  • Bucar, B., & Hisrich, R. D. (2001). Ethics of business managers vs. entrepreneurs. Journal of Developmental Entrepreneurship, 6(1), 59.

    Google Scholar 

  • Buchan, H. F. (2005). Ethical decision making in the public accounting profession: An extension of Ajzen’s theory of planned behavior. Journal of Business Ethics, 61(2), 81–165.

    Article  Google Scholar 

  • Campbell, J. L. (2007). Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of Management Review, 32(3), 67–946.

    Article  Google Scholar 

  • Chen, Y.-J., & Tang, T. L.-P. (2006). Attitude toward and propensity to engage in unethical behavior: Measurement invariance across major among university students. Journal of Business Ethics, 69(1), 77–93.

    Article  Google Scholar 

  • Chin, W. W. (1998). Commentary: Issues and opinion on structural equation modeling. MIS Quarterly, 22(1), 1–2.

    Article  Google Scholar 

  • Chun, J. S., Shin, Y., Choi, J. N., & Kim, M. S. (2013). How does corporate ethics contribute to firm financial performance? The mediating role of collective organizational commitment and organizational citizenship behavior. Journal of Management, 39(4), 853–877.

    Article  Google Scholar 

  • Cialdini, R. B., Kallgren, C. A., & Reno, R. R. (1991). A focus theory of normative conduct: A theoretical refinement and reevaluation of the role of norms in human behavior. Advances in Experimental Social Psychology, 24(20), 1–243.

    Google Scholar 

  • Cialdini, R. B., Reno, R. R., & Kallgren, C. A. (1990). A focus theory of normative conduct: Recycling the concept of norms to reduce littering in public places. Journal of Personality and Social Psychology, 58(6), 1015.

    Article  Google Scholar 

  • De Bakker, F. G., Groenewegen, P., & Den Hond, F. (2005). A bibliometric analysis of 30 years of research and theory on corporate social responsibility and corporate social performance. Business and Society, 44(3), 283–317.

    Article  Google Scholar 

  • Deng, X. (2013). Factors influencing ethical purchase intentions of consumers in China. Social Behavior and Personality, 41(10), 1693–1703.

    Article  Google Scholar 

  • Eisenberger, R., & Aselage, J. (2009). Incremental effects of reward on experienced performance pressure: Positive outcomes for intrinsic interest and creativity. Journal of Organizational Behavior, 30(1), 95–117.

    Article  Google Scholar 

  • Fassin, Y., Van Rossem, A., & Buelens, M. (2011). Small-business owner-managers’ perceptions of business ethics and CSR-related concepts. Journal of Business Ethics, 98(3), 425–453.

    Article  Google Scholar 

  • Ferrell, O., & Gresham, L. G. (1985). A contingency framework for understanding ethical decision making in marketing. The Journal of Marketing, 49, 87–96.

    Article  Google Scholar 

  • Fishbein, M. (1963). An investigation of the relationship between beliefs about an object and the attitude toward that object. Human relations, 16(3), 233–239.

    Article  Google Scholar 

  • Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention and behavior: An introduction to theory and research. Reading, MA: Addison-Wesley.

    Google Scholar 

  • Fombrun, C. J., Gardberg, N. A., & Barnett, M. L. (2000). Opportunity platforms and safety nets: Corporate citizenship and reputational risk. Business and Society Review, 105(1), 85–106.

    Article  Google Scholar 

  • Fombrun, C., & Shanley, M. (1990). What’s in a name? Reputation building and corporate strategy. Academy of Management Journal, 33(2), 233–258.

    Google Scholar 

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39–50.

    Article  Google Scholar 

  • Fritzsche, D., & Oz, E. (2007). Personal values’ influence on the ethical dimension of decision making. Journal of Business Ethics, 75(4), 335–343.

    Article  Google Scholar 

  • Garcia-Feijoo, L., Jorgensen, R., & Palanisamy, K. (2005). Does (un) ethical behavior affect corporate performance? Journal of Accounting and Finance Research, 13(1), 61–76.

    Google Scholar 

  • Gardner, H. K. (2012). Performance pressure as a double-edged sword enhancing team motivation but undermining the use of team knowledge. Administrative Science Quarterly, 57(1), 1–46.

    Article  Google Scholar 

  • Gino, F., & Margolis, J. D. (2011). Bringing ethics into focus: How regulatory focus and risk preferences influence (un) ethical behavior. Organizational Behavior and Human Decision Processes, 115(2), 145–156.

    Article  Google Scholar 

  • Goldstein, N. J., Cialdini, R. B., & Griskevicius, V. (2008). A room with a viewpoint: Using social norms to motivate environmental conservation in hotels. Journal of consumer Research, 35(3), 472–482.

    Article  Google Scholar 

  • Grant, R. M., & Visconti, M. (2006). The strategic background to corporate accounting scandals. Long Range Planning, 39(4), 361–383.

    Article  Google Scholar 

  • Hair, J. F., Tatham, R. L., Anderson, R. E., & Black, W. (2006). Multivariate data analysis. Upper Saddle River, NJ: Pearson Prentice Hall.

    Google Scholar 

  • Jones, T. M. (1991). Ethical decision making by individuals in organizations: An issue-contingent model. Academy of Management Review, 16(2), 366–395.

    Article  Google Scholar 

  • Jones, T. M. (1995). Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of Management Review, 20(2), 404–437.

    Article  Google Scholar 

  • Kaptein, M. (2008). Developing and testing a measure for the ethical culture of organizations: The corporate ethical virtues model. Journal of Organizational Behavior, 29(7), 923–947.

    Article  Google Scholar 

  • Kaptein, M. (2011). Toward effective codes: Testing the relationship with unethical behavior. Journal of Business Ethics, 99(2), 233–251.

    Article  Google Scholar 

  • Kaptein, M., & Schwartz, M. S. (2008). The effectiveness of business codes: A critical examination of existing studies and the development of an integrated research model. Journal of Business Ethics, 77(2), 111–127.

    Article  Google Scholar 

  • Kurland, N. B. (1995). Ethical Intentions and the theories of reasoned action and planned behavior. Journal of Applied Social Psychology, 25(4), 297–313.

    Article  Google Scholar 

  • Lewis, P. V. (1985). Defining ‘business ethics’: Like nailing jello to a wall. Journal of Business Ethics, 4(5), 377–383.

    Article  Google Scholar 

  • Lindell, M. K., & Whitney, D. J. (2001). Accounting for common method variance in cross-sectional research designs. Journal of Applied Psychology, 86(1), 114.

    Article  Google Scholar 

  • Locke, E. A., & Latham, G. P. (1990). A theory of goal setting and task performance. Englewood Cliffs, NJ: Prentice-Hall.

    Google Scholar 

  • Locke, E. A., & Latham, G. P. (2002). Building a practically useful theory of goal setting and task motivation: A 35-year odyssey. American Psychologist, 57(9), 705.

    Article  Google Scholar 

  • Morris, M. H., Schindehutte, M., Walton, J., & Allen, J. (2002). The ethical context of entrepreneurship: Proposing and testing a developmental framework. Journal of Business Ethics, 40(4), 331–361.

    Article  Google Scholar 

  • Murphy, P. E. (1995). Corporate ethics statements: Current status and future prospects. Journal of Business Ethics, 14(9), 727–740.

    Article  Google Scholar 

  • Odiorne, G. S. (1965). Management by objectives: A system of managerial leadership. New York: Pitman.

    Google Scholar 

  • Palanski, M. E., Kahai, S. S., & Yammarino, F. J. (2011). Team virtues and performance: An examination of transparency, behavioral integrity, and trust. Journal of Business Ethics, 99(2), 201–216.

    Article  Google Scholar 

  • Payne, D., & Joyner, B. E. (2006). Successful US entrepreneurs: Identifying ethical decision-making and social responsibility behaviors. Journal of Business Ethics, 65(3), 203–217.

    Article  Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879.

    Article  Google Scholar 

  • Randall, D. M. (1989). Taking stock: Can the theory of reasoned action explain unethical conduct? Journal of Business Ethics, 8(11), 873–882.

    Article  Google Scholar 

  • Reno, R. R., Cialdini, R. B., & Kallgren, C. A. (1993). The transsituational influence of social norms. Journal of Personality and Social Psychology, 64(1), 104.

    Article  Google Scholar 

  • Schwartz, M. S. (2004). Effective corporate codes of ethics: Perceptions of code users. Journal of Business Ethics, 55(4), 321–341.

    Article  Google Scholar 

  • Selvarajan, R., & Cloninger, P. A. (2009). The influence of job performance outcomes on ethical assessments. Personnel Review, 38(4), 398–412.

    Article  Google Scholar 

  • Sénéchal, S., Georges, L., & Pernin, J. L. (2014). Alliances between corporate and fair trade brands: Examining the antecedents of overall evaluation of the co-branded product. Journal of Business Ethics, 124(3), 365–381.

    Article  Google Scholar 

  • Shaw, W. H., Barry, V. E., & Panagiotou, S. (2010). Moral issues in business. Boston: Wadsworth Cengage Learning.

    Google Scholar 

  • Singh, J. B. (2006). A comparison of the contents of the codes of ethics of Canada’s largest corporations in 1992 and 2003. Journal of Business Ethics, 64(1), 17–29.

    Article  Google Scholar 

  • Singh, J. B. (2011). Determinants of the effectiveness of corporate codes of ethics: An empirical study. Journal of Business Ethics, 101(3), 385–395.

    Article  Google Scholar 

  • Somers, M. J. (2001). Ethical codes of conduct and organizational context: A study of the relationship between codes of conduct, employee behavior and organizational values. Journal of Business Ethics, 30(2), 185–195.

    Article  Google Scholar 

  • Taylor, S., & Todd, P. A. (1995). Understanding information technology usage: A test of competing models. Information Systems Research, 6(2), 144–176.

    Article  Google Scholar 

  • Tenbrunsel, A. E. (1998). Misrepresentation and expectations of misrepresentation in an ethical dilemma: The role of incentives and temptation. Academy of Management Journal, 41(3), 330–339.

    Google Scholar 

  • Trevino, L. K. (1986). Ethical decision making in organizations: A person-situation interactionist model. Academy of Management Review, 11(3), 601–617.

    Article  Google Scholar 

  • Trevino, L. K., & Nelson, K. A. (2010). Managing business ethics. Hoboken, NJ: Wiley.

    Google Scholar 

  • Turban, D. B., & Greening, D. W. (1997). Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal, 40(3), 658–672.

    Google Scholar 

  • Verschoor, C. C. (1998). A study of the link between a corporation’s financial performance and its commitment to ethics. Journal of Business Ethics, 17(13), 1509–1516.

    Article  Google Scholar 

  • Vitell, S. J., & Davis, D. L. (1990). Ethical beliefs of MIS professionals: The frequency and opportunity for unethical behavior. Journal of Business Ethics, 9(1), 63–70.

    Article  Google Scholar 

  • Wang, D., Tsui, A. S., Zhang, Y., & Ma, L. (2003). Employment relationships and firm performance: Evidence from an emerging economy. Journal of Organizational Behavior, 24(5), 511–535.

    Article  Google Scholar 

  • Weaver, G. R. (1995). Does ethics code design matter? Effects of ethics code rationales and sanctions on recipients’ justice perceptions and content recall. Journal of Business Ethics, 14(5), 367–385.

    Article  Google Scholar 

  • Webley, S., & More, E. (2003). Does business ethics pay. Ethics and Financial. London: Institute of Business Ethics.

    Google Scholar 

  • Wempe, J. (2005). Ethical entrepreneurship and fair trade. Journal of Business Ethics, 60(3), 211–220.

    Article  Google Scholar 

  • Wood, G., & Rimmer, M. (2003). Codes of ethics: What are they really and what should they be? International Journal of Value-Based Management, 16(2), 181–195.

    Article  Google Scholar 

  • Wotruba, T. R., Chonko, L. B., & Loe, T. W. (2001). The impact of ethics code familiarity on manager behavior. Journal of Business Ethics, 33(1), 59–69.

    Article  Google Scholar 

  • Zimbardo, P. G., & Leippe, M. R. (1991). The psychology of attitude change and social influence. New York: Mcgraw-Hill Book.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Xiaolin Lin.

Appendix

Appendix

See Table 5.

Table 5 Correlation among scales

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Lin, X., Clay, P.F., Hajli, N. et al. Investigating the Impacts of Organizational Factors on Employees’ Unethical Behavior Within Organization in the Context of Chinese Firms. J Bus Ethics 150, 779–791 (2018). https://doi.org/10.1007/s10551-016-3209-4

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-016-3209-4

Keywords

Navigation