RELATIONSHIP BETWEEN ORGANIZATIONAL COMMITMENT AND CORPORATE ETHICAL VALUES

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.