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The influence of organizational climate on the ethical decision-making of individuals in an organization

Yamada, Toshiyuki
Fukunaga, Akihiko
Nakano, Chiaki
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Yamada, Toshiyuki
Fukunaga, Akihiko
Nakano, Chiaki
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Abstract
When unethical behavior in a business organization is made public, two popular explanations are often put forward to account for such misbehavior. One attributes the misconduct to the ethical incompetence of the individuals involved. The other explains it as a ‘symptom of the organization’. Future studies must also consider the relationship between each of the organizational climate factors and their effects on moral judgment and moral action. The data from this study suggest that there is correlation between all organizational climate factors, and that there are strong correlations between factors that affect competitiveness and ethical behavior. This suggests that the relationship between factors that affect competitiveness and ethical behavior is not antonymous. Interestingly, a climate of ‘rejecting overemphasis on sales and profits’ does not have a negative correlation with other factors (in fact it shows a weak positive correlation with other factors). This suggests that an organizational climate that overemphasizes sales and profits, while neglecting ethics and humanity, might end up with poor business results. Further examination is required to verify these findings.
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