Both
stated formal and informal policies are also shown as an organizational
antecedent that can influence ethical decision-making (see for example Hunt
& Vitell, 2006; Bommer et al., 1987 Ferrell & Gresham, 1985) this
policy is usually presented in the form of codes, which sensitizes employees to
the importance of ethical decision-making. Hunt et al. (1989) posit that
organizational values ‘serve to convey a sense of identify to its members,
enhance the stability of its social system, direct managers’ attention to
important issues, and guide subsequent decisions by managers” (p.80).
Using
differential association theory, Ferrell & Gresham (1985) (citing
Sutherland & Cressey, 1970) postulate that ethical/ unethical behavior is
learned in the process of interacting with persons who are part of intimate
personal groups or role set. Thus the extent to which the earning process
results in unethical behaviour will be a function of the ratio of contact with
unethical patterns to organization can influence ethical/ unethical behaviour
of managers, and hence, ethical decision-making.
Several
theories have been used to explain the relationship between organizational
commitment and corporate ethical values. For example, person-organization fit,
social identify cognitive dissonance theory, organizational justice theory
(comprising distributive and procedural justice) etc. Of these, cognitive
dissonance theory is adjusted to be more relevant in achieving the main
objective of this study. Both the cognitive dissonance theory, and another
version of it-balance theory are considered in this study.
According to
cognitive dissonance theory (see Koh &Boo, 2001 for a discussion of this
theory), the individual usually exerts considerable effort to minimize
dissonance in their environment, which put in an organizational context,
implies employees strive and desire congruence between their ethical standards
and that of their organization. Where dissonance or incongruence is perceived,
this will lead to dissatisfaction (Viswesvaran, Deshpande, & Joseph, 1998)
and employees would want to minimize this. The minimization could lead to
withdrawal and resignation from the organization (Jansen & Von Glinow,
1985). Drawing inspiration from Heider’s 91946) balance theory (Note 1), a
version of cognitive dissonance theory, Visesavaran et al (1998) extrapolates
that:
In
a set of three entities-individual and attitude is to have both attitude
positive, then the two entities should be positively related. Since most
individuals strive to ethical (by their own decision rule) and successful, we
have positive relationship between the individual and perceptions of success
and perceptions of support for ethical behaviors. It is likely that top
managers reflect success in most organizations. Now, if there is a perception
that top manages in an organization do not support ethical behavior, a
dissonance results. This dissonance contributes to dissatisfaction with
existing conditions in the work place.