SummaryBased on four interlocking empirical studies, this paper initially validates and refines the Corporate Ethical Virtues Model which formulates normative criteria for the ethical culture of organizations. The findings of an exploratory factor analysis provide support for the existence of eight unidimensional subscales: clarity, congruency of supervisors, congruency of management, feasibility, supportability, transparency, discussability, and sanctionability. The findings of a confirmatory factor analysis show that the overall fit of the model is quite high. Evidence of convergent and discriminant validity is also found. The resulting 58-item self-reporting questionnaire is a useful tool that can be used in future research and by managers in assessing the ethical culture of their organization.

ABSTRACT. Business codes are a widely used management instrument. Research into the effectiveness of business codes has, however, produced conflicting results. The main reasons for the divergent findings are: varying definitions of key terms; deficiencies in the empirical data and methodologies used; and a lack of theory. In this paper, we propose an integrated research model and suggest directions for future research.

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Unethical behavior in the workplace is a widespread phenomenon. In this article a model for the ethical culture of organizations that consists of eight dimensions is employed to explain unethical behavior. The sample was composed of 341 triads consisting of a manager and two direct reports. The results show that six dimensions of ethical culture were negatively related to observed unethical behavior: ethical role modeling of management, ethical role modeling of supervisors, capability to behave ethically, commitment to behave ethically, openness to discuss ethical issues, and reinforcement of ethical behavior. Two of the eight dimensions, clarity of ethical standards and visibility of (un)ethical behavior, were not significantly related to unethical behavior. This study demonstrates that multiple dimensions of ethical culture have to be taken into account to reduce unethical behavior. The study opens up avenues for future research about the significance of each dimension in specific settings, the dynamic relationship between these dimensions, and the instruments required to improve each dimension of ethical culture.