Who cares about ethical practices at workplace? A taxonomy of employees’ unethical conduct from top management perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jatinder Kumar Jha ◽  
Manjari Singh
Keyword(s):  
Digital Media ◽  
Media Coverage ◽  
Top Management ◽  
Negative Consequences ◽  
Bottom Line ◽  
Content Type ◽  
Unethical Conduct ◽  
Unethical Behaviour ◽  
Root Cause ◽  
Unethical Practices

Purpose The purpose of the study is to explore the various kind of prevailing unethical practices at workplace along with identification of factors triggering such unethical practices. Growing incidences of indulgence of employees in unethical acts in various organisation and negative consequences associated with it for the organisation such as erosion of reputation because of advance digital media coverage, shareholder value and others made compulsive to study the root cause of unethical behaviour at the workplace. Design/methodology/approach This study extracts meaning from the experiences of top managers working in nine Indian organisations to understand the challenges faced by individuals at the workplace using the Gioia methodology. A total of 33 top management team (TMT) members were interviewed in detail to capture their experience in regard to various challenges that impose a threat to ethical conduct in the organisation. Findings The authors identified four categories of unethical behaviour, namely, pro-self, lack of autonomy, pro-organisation, systemic and negligence. Further, the authors have developed a taxonomy suggesting strategies to control unethical conduct at the workplace. Besides, the current study unravels the triggers behind different categories of unethical conduct, such as bottom-line mentality, rent-seeking behaviour of government officials, fluid ethical study culture and others. Originality/value Various types of unethical behaviour have been identified and frameworks to address such unethical practices are suggested in the paper. TMTs views have been captured to understand the root cause of unethical practices and strategies for addressing them have been discussed in the paper.

Internal auditor’s compliance to code of ethics

2019 ◽  
Vol 26 (1) ◽  
pp. 179-194 ◽  
Author(s):  
Noor Furzanne Alias ◽  
Anuar Nawawi ◽  
Ahmad Saiful Azlin Puteh Salin
Keyword(s):  
Ethical Issues ◽  
Code Of Ethics ◽  
International Standards ◽  
Internal Auditor ◽  
Content Type ◽  
Unethical Behaviour ◽  
Internal Auditors ◽  
Practice Guide ◽  
Unethical Practices ◽  
High Level

Purpose The purpose of this study was to determine the professional competency levels acquired by internal auditors in detecting unethical behaviour, to evaluate the position of internal auditors on objectivity and integrity in dealing with unethical behaviour and to examine the extent of their awareness on ethical issues in government-linked companies (GLCs). Design/methodology/approach Data were collected via questionnaires that were randomly distributed to the internal auditors of the selected GLS in Malaysia. These questionnaires were constructed from the Certified Internal Auditor (CIA) Examination Paper and The Institute of Internal Auditors (IIA) Competency Framework. Findings This study found that internal auditors of the GLCs had a high level of competency in performing audit engagements and were able to detect unethical practices in the companies. The majority of the internal auditors also had a high level of objectivity and integrity when faced with unethical behaviour during audit engagements. Research limitations/implications This study provided strong evidence that the internal auditors of Malaysian GLCs strongly complied with IIA Code of Ethics. Besides, they were also aware of the unethical behaviour which occurred within their organizations. However, this study is limited to the internal auditors in GLCs, while the questions of the survey instrument are restricted to the elements of integrity, objectivity and professional competencies of internal auditors. Practical implications This study highlights the level of internal-auditor competency and adherence to the IIA’s International Standards for the Professional Practice of Internal Auditing (ISPPIA) and IIA’s Practice Guide to identify unethical behaviour within the Malaysian GLCs. Originality/value This study is original as it focusses on GLCs which did not get much attention from previous researchers, particularly the GLCs that operate in a developing country such as Malaysia.

How to use lean Six Sigma methodology to improve service process in higher education

2019 ◽  
Vol 10 (4) ◽  
pp. 883-908
Author(s):  
Na Li ◽  
Chad Matthew Laux ◽  
Jiju Antony
Keyword(s):  
Higher Education ◽  
Literature Review ◽  
Six Sigma ◽  
Lean Six Sigma ◽  
Service Process ◽  
Bottom Line ◽  
Content Type ◽  
Root Cause ◽  
Lessons Learnt

Purpose The purpose of this paper is to use a practical case study approach to demonstrate the power to use lean Six Sigma (LSS) to improve service process in a higher education institution (HEI). The paper also illustrated the barriers and challenges met and lessons learnt for the LSS adoption in this HEI. Design/methodology/approach Prior to the study, extensive literature review was conducted to understand various aspects of LSS in HE industry. The authors use a single descriptive case study as methodology to explain how DMAIC was applied within a HEI environment. Findings In this LSS case study, the team found HEI service process contains a large human behavior component, which dramatically increases the unpredictability of the entire service delivery process and increases the complexity of the process and the ability of the improvement team to identify the root cause. This case study demonstrates the numerous challenges will occur in working with the intangible factors that are both hard to recognize, quantify and rarely tracked by organization. Practical implications During the research, the pre-award service process was studied, data were recorded and various statistical tool and techniques were used to discover and resolve the root cause. The lessons learnt of the LSS adoption in this service process in HEI and the problems encountered were all recorded in this study, which will be helpful for future research in HEI industry. Originality/value From the literature review, LSS has been widely adopted in manufacturing industry, increased adoption in service, but there has been limited academic research about the implementation in nonprofit, service sectors, particular to higher education industry. The major benefit of implementation LSS in both manufacturing and service is considerable improvement to the bottom line. However, in this HEI case study, it has opened up the direction to implement LSS to better serve your customer as ultimate mission instead of financial gains.

Application of Six Sigma DMAIC methodology to reduce the defects in a telecommunication cabinet door manufacturing process

2019 ◽  
Vol 36 (9) ◽  
pp. 1540-1555 ◽  
Author(s):  
Abhilash C.R. ◽  
Jitesh J. Thakkar
Keyword(s):  
Sheet Metal ◽  
Six Sigma ◽  
Design Methodology ◽  
Main Part ◽  
Total Quality ◽  
Bottom Line ◽  
Content Type ◽  
Root Cause ◽  
Dmaic Method ◽  
Practical Implications

Purpose The purpose of this paper is to apply the Six Sigma DMAIC methodology in order to reduce the rejections experienced in the manufacturing of the doors belonging to a telecommunication cabinet. Design/methodology/approach The process involved joining of sheet metal and hinge using welding operations with the help of a fixture. The methodology used is the structured DMAIC method in order to identify the root cause for the rejections and solve it. Findings The paper provides insights about the identification of the root cause for the defects and the solution to overcome it, and also the benefits that were obtained as a result of the application of the solution. Research limitations/implications This methodology has been applied to the variation observed in the dimensions of a particular component to be welded with a main part. This approach can be used to find such dimensional variations. Practical implications This study has been successfully carried out in a medium-scale industry which has total quality management in practice. Originality/value Six Sigma DMAIC was necessary for the identification and reduction of the defects which arose in the sheet metal and welding operations, and had to be resolved in order to increase the bottom-line.

Inherent criminogenesis in business organisations

2019 ◽  
Vol 26 (2) ◽  
pp. 432-446
Author(s):  
Alexander Glebovskiy
Keyword(s):  
Corporate Crime ◽  
Relevant Literature ◽  
Criminal Activity ◽  
Corporate Misconduct ◽  
Content Type ◽  
Unethical Conduct ◽  
Unethical Behaviour ◽  
Moral Standards ◽  
Conceptual Paper ◽  
Illegal Activities

Purpose This paper aims to discuss criminogenic elements and processes inherently presented in business organisations that affect the emergence of crime committed in or by business organisations. Design/methodology/approach This conceptual paper, based on relevant literature regarding a range of crime-coercive and crime-facilitative elements and forces that promote corporate crime, considers business organisations as a cogent unit of analysis to discuss the causation and origin of corporate crime. Findings Business organisations are, per se, criminogenic, i.e. companies are latently prone to committing crime, but are not necessarily criminal. By seeking to achieve commercial goals, companies can unintentionally create an atmosphere that invites crimes and unethical conduct. Organisational criminality is not primarily influenced by deviance in individual behaviour, but is a product of the organisation’s criminogenic settings and environment. Criminal activity arises from contact with criminogenic systems and employees’ adaption to organisational behaviours that do not meet the highest ethical and moral standards. Research limitations/implications This is a theoretical analysis, lacking empirical research. Practical implications This study can help anti-fraud and compliance practitioners to develop anti-fraud strategies to prevent corporate crime at its source and further discussion on the causes of corporate misconduct and progresses the debate on the sources of illegal and unethical behaviour displayed in, and by, business organisations. Originality/value This paper highlights intrinsic features of business organisations that influence companies and employees to engage in illegal activities, malpractice and unethical behaviour and provides a conceptual framework and insights into the realm of inherent criminogenesis within business organisations and how this is shaped by organisations themselves.

Effects of financial restatements on top management team dismissal

2020 ◽  
Vol 20 (3) ◽  
pp. 485-502
Author(s):  
Stefano Azzali ◽  
Tatiana Mazza
Keyword(s):  
Top Management Team ◽  
Management Team ◽  
Financial Statement ◽  
Top Management ◽  
Net Income ◽  
Negative Consequences ◽  
Content Type ◽  
Operating Income ◽  
Ceo Dismissal ◽  
Financial Restatements

Purpose The purpose of this paper is to analyze the effects of financial restatements (FRs) on the likelihood of the top management team (TMT) dismissal. It investigates the effects of types of FRs [corrective note and reissuance of financial statement (RFS)], of FR severity and of FR related to international financial reporting standards (IFRSs) easy or difficult-to-estimate. Design/methodology/approach The authors hand-collect: data about 96 FRs from the Italian public oversight board documents; chief executive officer (CEO) name, chairman name, year of the financial statement under investigation, total assets and operating income, from their financial statement. The authors use multivariate regression to test the effects of FRs on the probability of TMT dismissal. Findings The authors find that the RFS leads to a higher likelihood of chairman dismissal. A greater magnitude of misrepresentation on income statements, and FRs, which decrease net income, increase the likelihood of CEO dismissal. Difficult-to-estimate IFRSs increases the likelihood of CEO dismissal. Originality/value FRs are significant determinants of the CEO/chairman dismissal. The authors show that FRs directly involving shareholders (RFS) have negative consequences on the chairman of the board of directors, while the CEO is more affected by FRs that involve technical factors (FR severity or financial statement associated with difficult-to-estimate IFRSs).

scholarly journals The mixed blessing of supervisor bottom-line mentality: examining the moderating role of gender

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yun Zhang ◽  
Qihai Huang ◽  
Hanjing Chen ◽  
Jun Xie
Keyword(s):  
Work Performance ◽  
Negative Impact ◽  
Negative Consequences ◽  
Bottom Line ◽  
Content Type ◽  
Work Related ◽  
Mixed Blessing ◽  
Knowledge Hiding ◽  
Moderating Role

PurposeThe purpose of this paper is to investigate the double-edged effects of supervisor bottom-line mentality (BLM) on subordinates' work-related behaviors (work performance and knowledge hiding) and the moderating role of subordinate gender.Design/methodology/approachThe theoretical model was tested using a sample of 218 three-wave multi-source data collected from employees of five firms in southern China.FindingsThe results revealed that supervisor BLM is positively associated with subordinate BLM. Although subordinate BLM can enhance their work performance, it can also lead to knowledge hiding toward coworkers. Furthermore, these indirect effects are moderated by subordinate gender.Practical implicationsManagers should pay more attention to the potential positive and negative consequences of supervisor BLM and intervene to mitigate the negative impact of BLM.Originality/valueThis study is among the first to examine how supervisor BLM can be a mixed blessing and elicit both positive and negative behaviors from their subordinates. Moreover, by illuminating how subordinate gender moderates the relationship between supervisor BLM and subordinates' work-related behaviors, we enrich and extend the BLM literature.

Employee fraud and misconduct: empirical evidence from a telecommunication company

2018 ◽  
Vol 26 (1) ◽  
pp. 129-144 ◽  
Author(s):  
Anuar Nawawi ◽  
Ahmad Saiful Azlin Puteh Salin
Keyword(s):  
Internal Control ◽  
Standard Operating Procedures ◽  
Fraud Triangle ◽  
Bottom Line ◽  
Content Type ◽  
Unethical Practices ◽  
Policies And Procedures ◽  
Standard Operating ◽  
Telecommunication Company ◽  
Triangle Theory

Purpose The purpose of this study is to examine whether policies and procedures, one of the fundamental elements in the internal control environment, are adequate and effective in preventing fraud and unethical practices committed by employees of a company. In addition, this study attempts to assess the awareness and understanding of employees on the existence of relevant company policies and standard operating procedures for internal fraud and misconduct deterrence. Design/methodology/approach Five cases from one Malaysian telecommunication company were randomly selected as a case study. Content analyses were conducted on actual cases of internal fraud and wrongdoings that were investigated and the enforcement that was discharged by the company. Findings This study found that the company has sufficient policies and standard operating procedures to curb internal fraud and wrongdoing. However, they are ineffective and malfunction when responsible personnel violate or override the policies and procedures, irrespective of whether this is caused by carelessness, poor knowledge or clear intention to act dishonestly. Research limitations implications This study was conducted on only one company with a limited number of investigated fraud cases. Access to higher number of fraud cases, particularly those that involved large amount of losses and considered as high-profile cases, were denied because of confidentiality. Practical implications The study found that weak compliance to internal controls provides opportunities for fraud to occur, consistent with the fraud triangle theory. Fraud, committed both outside and inside an organization, can be considered as a worrying problem in the organization because of its severe impact on the reputation and bottom line figures of the company. The study provides important information to management to strengthen their compliance with the internal control system generally and policies and procedures particularly. Originality/value This study is original, as it focuses on the actual fraud cases that occur in the telecommunication industry, which is under-researched in fraud literature, particularly in developing markets such as Malaysia. Prior empirical research on fraud and unethical practices has concentrated on factors that contribute to fraud and the financial and non-financial impacts of fraud in an organization.

An exploratory empirical study of whistleblowing and whistleblowers

2020 ◽  
Vol 27 (3) ◽  
pp. 755-770
Author(s):  
Maria Krambia-Kapardis
Keyword(s):  
Statistical Analysis ◽  
Design Methodology ◽  
Research Topic ◽  
Due Date ◽  
Content Type ◽  
Unethical Behaviour ◽  
Eu Member States ◽  
European Directive ◽  
Original Survey ◽  
Practical Implications

Purpose The purpose of this study is to develop a profile of whistleblowers and to determine whether whistleblowing legislation would encourage those individuals to bring to light some illegal or unethical behaviour that otherwise would remain in the shadows. Design/methodology/approach Having identified whistleblowing correlation, a survey was carried out in Cyprus of actual whistleblowers and could-have-been whistleblowers. Findings Males between 46 and55 years of age, regardless of whether they have dependents or hold senior positions in organizations are significantly more likely to blow the whistle. However, could-have-been whistleblowers did not go ahead because they felt that the authorities would not act on their information. Research limitations/implications Because of the sensitive nature of the research topic and the fact that only whistleblowers or intended whistleblowers could participate in the study, the sample size is limited as a result. This, in turn, limits both the number of respondents in each category (actual and intended) as well as constrains the statistical analysis that could be carried out on the data. Practical implications It remains to be seen whether EU Member States shall implement the European Directive 2019/1937 on the protection of persons who report breaches of Union Law, in its entirety by the due date, namely December 2021. Originality/value This study provides a literature review of whistleblowing and reports an original survey against the backdrop of the European Directive.

Family-supportive organizational environment and turnover intention

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatemeh Taheri
Keyword(s):  
Job Satisfaction ◽  
Turnover Intention ◽  
Work Life ◽  
Organizational Environment ◽  
Staff Retention ◽  
Negative Consequences ◽  
Content Type ◽  
Work Family ◽  
Work Family Enrichment ◽  
Family Enrichment

PurposeThe purpose of this paper is to test a model in which family-supportive organizational environment is associated with lower levels of turnover intention through higher levels of work-family enrichment and job satisfaction.Design/methodology/approachBased on a sample of 300 employees, the bootstrap procedure for estimating indirect correlations in multiple mediator models was used to test the research hypotheses.FindingsThe results suggest that employees experiencing high levels of family-supportive organizational environment are likely to report lower intention to leave their profession by virtue of their higher levels of job satisfaction and work-life enrichment.Research limitations/implicationsThe study is limited to public organization and sample size. Further research is needed to make comparison between large/state-owned and small/private organizations.Practical implicationsIn the Iran context, work-family enrichment and job satisfaction are effective in reducing the employees' turnover intention. Organizations should show concerns for the employees' work-life enrichment and job satisfaction to reduce their turnover intention.Social implicationsTurnover is one of the problems of organizations in many countries throughout the world including Iran, which has negative consequences through increasing the cost of organizations. The results of this study suggest ways in which staff retention could be improved.Originality/valueThe present study contributes to supportive organizational environment literature by addressing the relationship between family-supportive organizational environment and employee-related outcomes. Given some commonalities between Iran and other developing countries, the findings might be of potential interest in comparative studies dealing with the employees' turnover issue.

Examining the pull, the push, and their simultaneous effects on managerial turnover

2020 ◽  
Vol 58 (12) ◽  
pp. 2639-2654 ◽  
Author(s):  
Yoonhee Choi ◽  
Namgyoo K. Park
Keyword(s):  
Top Management Team ◽  
The United States ◽  
Management Team ◽  
Top Management ◽  
Content Type ◽  
Economic Mechanism ◽  
Positive Effects ◽  
Psychological Mechanisms ◽  
Managerial Turnover ◽  
Psychological Mechanism

PurposeThis paper aims to examine the economic and psychological mechanisms in turnover at the managerial level. The paper investigates how (1) the ease of moving posed by alternative jobs (i.e. the economic mechanism) and (2) the desire to move due to low job satisfaction (i.e. the psychological mechanism) simultaneously influence top management team (TMT) turnover and these managers' subsequent job position and pay.Design/methodology/approachUsing 25 years of panel data on more than 2,000 top managers in the United States, the paper utilizes fixed-effects logistic regressions and the ordinary least squares model to test the hypotheses.FindingsThe authors find that CEO awards (an economic mechanism) and low compensation (a psychological mechanism) independently have positive effects on turnover. Turnover due to the economic mechanism leads to a higher position and pay, whereas turnover due to the psychological mechanism does not guarantee the same outcome. Further, when examining how pay dissatisfaction influences turnover simultaneously with CEO awards, the authors find that managers with the highest pay leave their firm, and not those with the lowest pay.Originality/valueThe paper employs the pull-and-push theory in the employee turnover literature and applies it to the top management team literature. By doing so, this paper contributes original insights to how economic and psychological mechanisms simultaneously affect managerial turnover and its subsequent outcomes.

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