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)

FAQs

Factors Impacting Unethical Behaviour In Organizations? ›

Some issues are more likely to lead to unethical choices. Employees are more likely to act unethically when they don't see their action clearly causing harm — for example, when the victim is far away or the damage is delayed. Unethical choices also occur when an employee feels that peers will not condemn their actions.

What factors contribute to unethical behaviour in the Organisation? ›

Why Do Employees Make Unethical Decisions?
  • Pressure to Succeed. Employees may choose to act unethically based on unrealistic expectations to succeed. ...
  • Employees Are Afraid to Speak Up. ...
  • Lack of Training. ...
  • There's No Policy for Reporting. ...
  • Managers Setting Bad Examples.

What are 5 factors that influence ethical or unethical behavior? ›

Factors that influence legal and ethical behavior include behavior, principles, obedience to the law, social responsibility, honesty, trust, compliance, and commitment 1.

What are the factors affecting ethical behavior in a company? ›

Individual factors, such as knowledge, values, personal goals, morals and personality. Social factors, such as cultural norms, the Internet and friends and family. Situational opportunities can provide an unethical employee with the freedom of choice that can lead to bad decisions.

What are the causes of unethical behavior in business? ›

Many people engage in unethical behaviors due to unrealistic expectations to succeed, lack of necessary training, and lack of a reporting policy. Many employees fall into unethical behavior to make more money and retain a job.

What are the major influences of unethical behavior? ›

Some issues are more likely to lead to unethical choices. Employees are more likely to act unethically when they don't see their action clearly causing harm — for example, when the victim is far away or the damage is delayed. Unethical choices also occur when an employee feels that peers will not condemn their actions.

What is the primary factor contributing to unethical behavior in organizations? ›

Factors like work intensification, job insecurity, and an unethical company-profit climate can stimulate unethical organizational behavior, leading to feelings of guilt, emotional exhaustion, and a decline in customer-oriented citizenship behavior.

What are the three 3 factors influencing ethical behavior? ›

  • 1.0 RELATIONS WITH COLLEAGUES, CLIENTS, EMPLOYERS, EMPLOYEES & SOCIETY IN GENERAL.
  • 2.0 ENVIRONMENTAL & SOCIAL OBLIGATIONS. ...
  • 3.0 MAINTENANCE & DEVELOPMENT OF PROFESSIONAL CONDUCT AND STANDARDS.

Which factor affects ethical and unethical behaviour? ›

"These are the variables that influence ethical and unethical behaviour." Ethical behaviour respects the qualification, diversity and rights of individuals and groups of people. Factors that affects ethical behaviour : Individual factors - knowledge, values, personal goals, morals and personality.

What factors determine whether behavior in organizations is ethical or unethical? ›

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.

What determines ethical behavior in an organization? ›

In the workplace, there might be a standard for ethics set throughout the company. Many organizations create a code of ethics, which might include generic guidelines for ethical behavior about doing the right thing or remaining fair. It could also mention specific protocol within the business.

What are the five factors that influence business ethics? ›

Some key factors that influence business ethics include leadership, corporate culture, strategy and performance, environmental factors, and individual characteristics. There are also different types of ethics considered in business such as transactional ethics, participatory ethics, and recognition ethics.

What are the three main drivers of unethical business behaviors? ›

Apart from the “business of business is business, not ethics” kind of thinking, three other factors contribute to unethical business behavior: (1) faulty oversight that enables the unscrupulous pursuit of personal gain, (2) heavy pressures on company managers to meet or beat short-term earnings targets, and (3) a ...

What are the roots of unethical behavior in an organization? ›

Unethical behavior comes from different elements such as poor personal ethics, a failure to incorporate ethical issues into strategic and operational decision-making, a dysfunctional culture, and the failure of leaders to act ethically.

What leads organizations to develop unethical practices? ›

  • One of the leading factors that contributes to the unethical practice.
  • among employees is the pressure they receive from the management to.
  • attain unrealistic objectives and deadline. ...
  • business ethics showed that employees are under a lot of pressure to.
  • perform and this prompts them to act unethically.

What are the factors which might contribute to unethical communication in an organization? ›

Institutional communication is communication between organizations. The six types of unethical communication are coercion, destructiveness, deceptiveness, intrusiveness, secretiveness, and manipulation. Using any of these types of communication is considered unethical and can get the individual into real trouble.

What factors might cause employees to act unethically? ›

  • One of the leading factors that contributes to the unethical practice.
  • among employees is the pressure they receive from the management to.
  • attain unrealistic objectives and deadline. ...
  • business ethics showed that employees are under a lot of pressure to.
  • perform and this prompts them to act unethically.

What are some examples of unethical behavior within an organization? ›

Deliberate Dishonesty in the Workplace

Asking for recognition for someone else's job, calling in sick to go to the hill station, sabotaging someone else's work, and, in sales, falsifying the product or service to fulfill the target are all examples of unethical behavior in the workplace.

What are the factors contributing to executive unethical behaviour? ›

They argued that the social or organisational environment in which executives operate, including traditional conventions, moral norms and institutional orientation, is a major factor contributing to executives' unethical behaviour.

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