Ethics qualities in an organization are highly concentrated to avoid unhealthy behavior and to inspire superior reasoning, performance, innovation, teamwork, and process breakthroughs that results in sustainable competitive advantages. Given the importance of organizational ethical quality and its effects on organizational outcomes (such as organizational commitment, job satisfaction and employee performance), it is currently one of the hottest business topics in both academic research and the popular business press. Today's business leaders are confronted with frequent unpredictable challenges, which require high degree of flexibility on their part. Recent organizational crises have emphasized the need for leadership and personal commitment from organizational decision makers which, then, become more critical for organization success. Those at the top of an enterprise regularly spent time developing their organizational and functional strategic plans, their growth strategy, possibly even their brand strategy, but ethics and regulatory compliance was merely an issue for the finance department, legal counsel, and possibly human resources.
To date, many empirical studies have been conducted to investigate the determinants of ethical behavior in organizations. This includes determinants such as leadership (Mulki, Jaramillo and Locander, 2008; Stanley, 2008), Human Resource’s role (William, 2008), code of ethics (Jaramillo, Mulki and Solomon, 2007), peer pressure (Keith, Pettijohn and Burnett, 2003), personal attributes and emotions (Rajeev, 2007), moral development (Ambrose, Arnaud and Schminke, 2006) and others. Much of the researches are focused on independent relationships, such as culture performance, or commitment and performance (Rashid et al., 2003). Only a handful looked into identifying precise relationships between organization ethics... [continues]
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