The Influence of the Founder's Ethical Legacy on Organizational Climate: Empirical Evidence from South Korea

Abstract

We investigated the relationship between the ethical leadership of the founder of a company and that company's ethical climate as perceived by 4 groups of employees. Surveys were administered to current and former employees of a large Fortune Global 200 steel manufacturer in South Korea. The total sample (N = 728) consisted of 4 subsamples: 2 comprising retirees and 2 comprising current employees. We found that the ethical leadership of the founder was associated with the company's ethical climate, and that relationship was significant for the 4 subsamples. Theoretical and managerial implications are discussed.