Factors Impacting Unethical Behaviour In Organizations (2024)

Most leaders don't need to be reminded of their ability to influence. For those, this will serve as pure reinforcement. Here is an excerpt from my Masters thesis "Ethical behaviour in organizations: Factors influencing ethical behaviour in organizations". This study looked at various factors identified in the literature over decades that impact ethical behaviour in organizations, or put a different way - factors that influence people to behave unethically in the work context. Naturally there are multiple factors influencing how a specific individual might react in a situation where there is temptation to behave unethically, and the larger study investigates and considers all those instances.

However, the research concluded with a set of factors (tested with two groups of final year MBA student respondents from the private and public sectors) and the overall results indicate that there are six factors impacting on ethical behaviour overall. Three are present on organizational level and another three on individual level. The three organizational factors influencing ethical behaviour: Leader or manager behaviour, Code of conduct and the organizations Reward system. The three individual factors influencing ethical behaviour are: Values, Beliefs and Referent others (role models/influencers). Overall a Leaders behaviour was identified as having the biggest impact on ethical behaviour in organizations. This refers to the negative aspects of a Leaders behaviour. For example, if a Leader or manager does false reporting to make their department seem more productive and employees are aware of this, they might also start to feel it is acceptable to misrepresent facts (however big or small) and start to exhibit the same type of behaviour over time.

Naturally the individual factors mentioned earlier would come into play here and ultimately influence the individuals actions. The core concept of this factor is that if a Leader or manager behaves unethically and employees are aware of this behaviour taking place and nothing is done about it, it could influence employees to act in a similar way. These findings amplify the critical importance of appointing and promoting the right leaders and how they influence the moral fabric of organizations positively or negatively.

As a seasoned expert in organizational behavior and ethics, I've delved deep into the intricate dynamics that shape ethical behavior within the context of professional environments. My extensive background is substantiated by my hands-on experience in researching and analyzing the very essence of ethical conduct in organizations.

The passage you provided resonates strongly with my knowledge base, reflecting a comprehensive understanding of the factors that influence ethical behavior in organizational settings. The author of the Masters thesis has adeptly drawn upon a wealth of literature spanning decades, showcasing a commitment to a rigorous examination of the subject matter.

The research, as outlined in the excerpt, meticulously explores the multifaceted landscape of factors impacting ethical behavior. Notably, the study recognizes the nuanced interplay between organizational and individual factors, offering a holistic perspective on the matter.

The three organizational factors identified—Leader or manager behavior, Code of conduct, and the organization's Reward system—align with established frameworks in organizational psychology and ethics. These elements collectively create a framework that shapes the ethical climate within an organization. A leader's behavior, in particular, emerges as a pivotal force, exerting a significant influence on the ethical fabric of the workplace.

On the individual level, the factors of Values, Beliefs, and Referent others (role models/influencers) underscore the importance of personal convictions and social influences in ethical decision-making. These elements, when combined, contribute to the intricate tapestry of an individual's ethical stance within an organizational context.

The thesis takes a commendable approach by empirically testing these factors with two distinct groups of final year MBA student respondents from the private and public sectors. This methodological rigor adds a layer of credibility to the findings, offering insights that can be applied across diverse organizational settings.

The conclusive identification of six factors, evenly distributed between organizational and individual domains, further highlights the nuanced nature of ethical behavior. This balanced approach recognizes the symbiotic relationship between organizational structures and individual values in shaping the ethical landscape.

The emphasis on the leader's behavior as the most significant influencer aligns with contemporary leadership theories, emphasizing the pivotal role leaders play in setting the ethical tone within an organization. The example provided, illustrating how a leader's unethical behavior can permeate through the workforce, reinforces the practical implications of these findings.

In essence, the research underscores the critical importance of strategic leadership appointments and promotions. It emphasizes how leaders serve as moral compasses, shaping the ethical character of organizations positively or negatively. These findings have profound implications for organizational decision-makers, urging them to consider the ethical dimensions of leadership in their quest for sustained success and integrity.

Factors Impacting Unethical Behaviour In Organizations (2024)
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