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Part II - Building and Sustaining Ethical Business Cultures

Published online by Cambridge University Press:  19 October 2017

Douglas Jondle
Affiliation:
Bains Jondle & Associates LLC
Alexandre Ardichvili
Affiliation:
University of Minnesota
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Summary

Abstract

Using the Ethical Perceptions Index, this chapter reviews employees’ varying perceptions of ethical business practices across 22 of the world’s largest economies. The chapter addresses two important research questions: Do perceptions of ethical business practices relate to important organizational outcomes? And, How do we create and sustain ethical business practices? In answering these questions, we draw on an extensive, globally representative sample of employees, and show that organizations operating with higher levels of ethics and integrity are more likely to succeed, both with respect to the way employees feel about their work environment as well as multiple indicators of organizational-level business performance. Finally, we explore the main drivers of ethical business cultures, and demonstrate that organizations that build a climate for diversity and inclusion, communicate transparently, codify and regulate important work processes, and hire and advance managers who act with a high degree of interpersonal justice, will score the highest on the Ethical Perceptions Index. We conclude by offering suggestions for leaders who seek to improve their organization’s ethical standing amongst employees.

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Chapter
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Publisher: Cambridge University Press
Print publication year: 2017

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References

Additional Reading

Ardichvili, A., Jondle, D., Kowske, B., Cornachione, E., Li, J., & Thakadipuram, T. (2012). Ethical cultures in large business organizations in Brazil, Russia, India, and China. Journal of Business Ethics, 105(4), 415428.Google Scholar
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