Journal of Business Research

Employee job response as a function of ethical context and perceived

organization support B

Sean Valentine a,*, Martin M. Greller b, Sandra B. Richtermeyer c

a Department of Management and Marketing, University of Wyoming, P.O. Box 3275, Laramie, Wyoming 82071, United Statesb Milano Graduate School, New School University, United Statesc Department of Accountancy, Xavier University, United States

Received 18 February 2004; accepted 10 June 2005

Abstract

Examination of the corporate support and ethical context literatures provided the basis for this assessment of the relationships among corporate

ethical values, perceived organizational support, job satisfaction, and turnover intention. It was specifically proposed that perceived organization

support would mediate the relationships between an ethical context and the two work responses, and mediated regression analysis using data from

460 accounting and finance professionals was utilized to test these relationships. Results identified partially mediated relationships among the

study variables, which suggested that the effects of corporate ethical values on individual work attitudes operate partly through perceived

organization support. This study makes a contribution to the literature by showing that companies might better manage employee job response

with programs that build support for employees and their ethical development, and the various prospects of achieving ancillary benefits from such

programs are discussed.

D 2006 Elsevier Inc. All rights reserved.

Keywords: Corporate ethics; Employment; Job satisfaction; Organizational behavior; Perceived organizational support; Turnover intention

Because of the proliferation of corporate scandals, recent

years have produced a resolute call for increased business ethics

(e.g., Ford and Richardson, 1994; Sims, 1991; Trevino, 1986;

Trevino and Nelson, 1999). There are compelling reasons to

heed this call, and a common managerial strategy involves

improving the ethical environment (or context) so that internal

socio-cultural dimensions are modified to enhance ethical

conduct (e.g., Ferrell and Gresham, 1985; Hunt and Vitell,

1986; Trevino, 1986; Victor and Cullen, 1988). However, this

contextual approach might also produce a range of other

beneficial outcomes within the organization. The purpose of

this investigation is to explore several such potential conse-

quences, including increased perceived organization support

(POS), high job satisfaction (JS), and reduced turnover intention

(TI). Such inquiry is important because an established link

0148-2963/$ - see front matter D 2006 Elsevier Inc. All rights reserved.

doi:10.1016/j.jbusres.2005.06.004

i An earlier version of this study was presented at the 2003 Academy of

Management meeting in Seattle, Washington and appeared in the Best Papers

Proceedings.

* Corresponding author. Tel.: +1 307 766 5260.

E-mail address: Valentin@uwyo.edu (S. Valentine).

between corporate ethics and employee job response suggests

that a company might better manage other important organiza-

tional issues such as productivity and costs through context.

Addressing these issues raises a series of subordinate

concerns. First, is there any evidence suggesting that an ethical

context consistently impacts employee job response? Consid-

erable effort has been expended to demonstrate ethical values

are associated with positive results (e.g., Hunt et al., 1989;

Valentine et al., 2002; Vitell and Davis, 1990). However, some

studies emphasize macro outcomes such as profitability and

shareholder return (see Ford and Richardson, 1994; Loe et al.,

2000; Tsalikis and Fritzsche, 1989 for reviews of literature).

The impact on employee attitudes and intentions has been less

studied, yet these factors seem likely to affect other important

organizational outcomes. Second, how should we assess a

corporate ethical context? Unlike the ‘‘old time’’ cowboy

movies where only the good guys wore white hats, most

corporations endeavor to present themselves as ethical, whether

they are or not. These efforts to manage external perceptions

can make corporate reputations suspect. Third, if the relation-

ship between ethical context and employee response is to be

59 (2006) 582 – 588

S. Valentine et al. / Journal of Business Research 59 (2006) 582–588 583

managed, the mechanism by which it occurs should be

specified and understood. Research shows that both JS and

TI are related to perceptions of corporate ethics and organiza-

tional support (e.g., Eisenberger et al., 1997; Schwepker, 2001;

Shafer, 2002; Viswesvaran et al., 1998), making these variables

relevant for further examination. However, more clarification is

needed regarding the functional role of POS in the context–

response link in order to extend previous research.

1. Corporate ethical context

Before addressing the question of how organizational ethical

principles can affect employee attitudes, it is necessary to take

a closer look at the meaning of corporate ethical context. An

organization’s ethical context is comprised of the institution-

alized guidelines and values that establish a collective

understanding of business ethics (Hunt et al., 1989; McDonald,

1999; Sims, 1991; Trevino et al., 1998). Such environments

have a well established effect on decision making (e.g., Brass

et al., 1998; Ferrell and Gresham, 1985; Hunt and Vitell, 1986;

Trevino, 1986), and it is widely recognized that an ethical

context can improve employee ethics (Akaah and Lund, 1994;

Nwachukwu and Vitell, 1997; Sims and Keenan, 1998;

Singhapakdi et al., 1999; Trevino et al., 1998). However, the

mere existence of these principles is not enough to enhance

organizations, so managers must actively communicate and

support ethical standards (Fritz et al., 1999; Sims, 1991). More

specifically, company leaders must uphold organizational

ethical values, reward appropriate business conduct, facilitate

the relationship between the organization and its employees,

and punish disreputable acts (Hunt et al., 1989; Trevino, 1986;

Trevino, et al., 1998). This consistency in word and deed has

its effect by shaping the corporate culture/climate and defining

the terms of the employment relationship (e.g., Sims, 1991;

Victor and Cullen, 1988). Furthermore, to understand the

ethical context one must look at company actions (i.e.,

guidelines), employees’ visible adoption of these guidelines,

and managerial support of business ethics (e.g., Hunt et al.,

1989; Sims, 1991; Trevino, 1986; Trevino et al., 1998;

Valentine and Barnett, 2002; Viswesvaran et al., 1998). The

combinatory effects of these three factors synthesize an ethical

environment. Certainly, the results will be conformity to an

ethical standard, but a person’s relationship with the firm is also

likely affected.

2. Ethical context and employee job response

The understanding of how ethical context affects employ-

ment attitudes is underdeveloped, despite the work that

currently exists (e.g., Jackson et al., 1994; Trevino et al.,

1998; Valentine and Barnett, 2002; Viswesvaran and Desh-

pande, 1996). Individuals do seek employment with ethical

companies (Jose and Thibodeaux, 1999; Trevino et al., 1998),

but previous research does not indicate how the presence of an

ethical environment influences those individuals once they are

employed. Yet, such influence seems likely. According to

Viswesvaran, Deshpande, and Joseph (1998, p. 366), ‘‘top

management support for ethical behavior may have organiza-

tional value (e.g., increased job satisfaction, lowered absentee-

ism, increased organizational commitment, and increased job

performance) that ethics researchers have not emphasized

forcefully in the past.’’ Such issues both in objective form

(such as turnover or hours worked) and subjective form (such

as JS and commitment) have been an enduring concern in

organizational behavior. How an ethical context influences

employees’ job and company attitudes remains an open area for

inquiry.

Past work suggests that corporate ethical context affects

employees in a manner that prompts positive response. For

instance, the theory of reasoned action suggests that individual

perceptions impact attitudes, which subsequently affect behav-

ioral intentions (Fishbein and Ajzen, 1975), leading to the

assertion that employees’ perceptions of corporate ethics and

organizational support could impact both JS and TI. Previous

empirical research also provides support for such linkages.

Viswesvaran et al. (1998) using a sample of leaders working in

Indian companies concluded that top management’s ethical

orientation was positively related to individuals’ satisfaction

with supervision. Koh and Boo (2001) also found that a

company’s ethical orientation, top leaders’ support for princi-

pled conduct, and the perceived link between ethical conduct

and occupational advancement were positively related to JS

among supervisors in Singapore. Research also indicates that

ethical company principles are positively related to employees’

organizational commitment (Fritz et al., 1999; Hunt et al.,

1989), which along with JS can reduce employee turnover (see

Hom and Griffeth, 1995). Indeed, Shafer (2002) concluded that

perceived ethical conflicts precipitated by a company’s

unethical orientation reduced management accountants’ satis-

faction and commitment, which ultimately increased their

intentions to leave the organization. Sims and Kroeck (1994)

found that increased congruence between a person’s ethical

principles and company values lessened intentions to leave the

organization, highlighting a potential link between ethical

context and turnover. The limited research available does

suggest a link between ethical context and employee attitudes.

2.1. Mediation

The manner in which the concept of company values has

evolved in the ethics literature suggests that ethical environ-

ments enable individuals to behave with a sense of integrity.

Such contexts support and essentially compel ethical conduct.

Following this rationale, organizations that advance ethical

values and permit employees to act with integrity should be

experienced as more supportive. This need not mean accom-

modating a range of individuals’ idiosyncratic values so much

as being sensitive to ethical issues through the advancement of

organizational ethics (Hunt et al., 1989; Trevino et al., 1998).

Over time, leadership and the emerging ethical context will

further develop values shared by employees.

There is support from the literature already cited that more

ethical organizations are perceived as supportive, and that this

leads to positive employee attitudes. When management

S. Valentine et al. / Journal of Business Research 59 (2006) 582–588584

develops an ethical context through substantive efforts to

improve corporate conduct, employees likely believe that there

is concern for the general well-being of stakeholders. ‘‘Indivi-

duals who perceive that top management in their organizations

support ethical behaviors will also perceive their organization

as being just to its employees,’’ which could perhaps strengthen

individuals’ positive attitudes about their employment and

organization (Viswesvaran et al., 1998, p. 367). Such fairness is

indeed considered a key consideration in the management of a

company’s ethical context (e.g., Trevino and Nelson, 1999),

and studies of justice show how POS might help strengthen the

link between ethical perceptions and job response. For

example, Parker, Baltes, and Christiansen (1997) using a

sample of government agency employees concluded that

support for affirmative action programs was positively related

to individuals’ perceptions that the agency was fair, and that

these beliefs positively influenced JS. Fuller and Hester (2001)

concluded that steelworkers perceived greater support from

their union when justice was apparently enforced in the

workplace. Eisenberger, Stinglhamber, Vandenberghe,

Sucharski, and Rhoades (2002) provided evidence that

perceptions of supervisor and organization support, arguably

reflections of a broader ethical obligation to help stakeholders,

were associated with decreased turnover.

POS is the mechanism expected to mediate the relationship

between an ethical context and individual job response. Such

support is commonly framed as individuals’ ‘‘global beliefs

concerning the extent to which the organization values their

contributions and cares about their well-being,’’ affected by the

‘‘readiness to reward increased work effort and to meet the

needs for praise and approval’’ (Eisenberger et al., 1986, p.

501). Social exchange theory leads one to expect that

organizations elicit a variety of positive results by increasing

employees’ perceptions of support (Eisenberger et al., 1997).

Research shows that an organization’s support for its

employees has a variety of consequences. Eisenberger et al.

(1986), using a sample of employees from different organi-

zations, found that POS was associated with decreased

absenteeism. Eisenberger, Fasolo, and Davis-LaMastro (1990)

concluded that POS was positively related to employee

attendance, commitment, and performance. Other studies

provide strong support for a positive link between POS and

persons’ commitment to a company (Rhodes et al., 2001;

Settoon et al., 1996), while others show that perceived company

support reduces employee turnover (Eisenberger et al., 2002;

Rhodes et al., 2001). Finally, Eisenberger et al. (1997) using a

sample of employees from greatly varied companies concluded

that company assistance is associated with increased JS.

2.2. Models

The existence of an ethical context should be associated

with greater POS, which is in turn associated with greater JS

(Ethical contextYPOSY JS). POS is also expected to mediate

the negative relationship between an ethical context and TI

(Ethical contextYPOSYTI). TI is used because actual

turnover is often subject to labor market perturbations

(Wanous, 1976), and such intentions are known to predict

future job search and turnover (Hom and Griffeth, 1995).

3. Method

3.1. Sample and procedure

This study was part of a larger examination of accounting

and finance professionals’ career development sponsored by

the Institute of Management Accountants (IMA). The IMA is

an association of accounting and financial professionals that

promotes professional development and standards primarily for

members working within corporations and offers both the

Certified Management Accountant and Certified Financial

Manager professional certifications. Approximately 50% of

the members of the IMA have a professional certification that

requires continued education, and awareness of ethical

standards is emphasized in professional development in

conjunction with the IMA ethics code (Ziegenfuss and

Martinson, 2002). The survey was conducted using a stratified

random sample of IMA members.

Age and sex were used to stratify the sample. A total of

4000 names were drawn from a membership of 67,000, one

thousand from each of four age groups categorized as ‘‘20–

29,’’ ‘‘30–39,’’ ‘‘40–49,’’ and ‘‘50–70.’’ Within the groups,

30% of the sampled members were women and 70% were men,

and this proportion corresponded to the association’s overall

demographics. Surveys were sent to the selected individuals at

the address used in the IMA records. Of 4000 surveys mailed

only 2 were returned as undeliverable. A cover letter discussed

IMA support for the survey, with a request by the IMA

Professor-In-Residence for participation. A letter from the

researchers explained how the data would be used and ensured

respondent confidentiality. Six weeks after the initial mailing of

survey packets, postcards were mailed to the entire sample

providing a web address from which a replacement question-

naire could be obtained. Questionnaires were accepted for

approximately three weeks following the postcard mailing.

A total of 460 surveys were received for an approximate

response rate of 11.5%. While this percent is small enough to

raise concerns about the representative nature of the sample, it

is the byproduct of a choice that was necessary in this research.

The highest response rates in organizational research are seen

in surveys conducted within a single organization where the

employer provides time to complete the instrument, and

participants might expect to benefit from management action

taken in response to the results. What is not usually

acknowledged is that these are essentially single observation

samples when it comes to organizational variables such as

corporate ethical practices. To obtain differences in the ethical

environment, it was necessary to sample people from different

organizations. In assessing the representative nature of a

sample, simple response rate (questionnaires returned /ques-

tionnaires distributed) can lead to over confidence (Krosnick,

1999), especially when organization variables might play a role

in the analysis. When one does seek a broader sample that

crosses a large number of organizations the response rate is apt

S. Valentine et al. / Journal of Business Research 59 (2006) 582–588 585

to drop substantially. Previous work also indicates that such

‘‘surveys with very low response rates can be more accurate

than surveys with much higher response rates,’’ and that

‘‘having a low response rate does not necessarily mean that a

survey suffers from a large amount of nonresponse error’’

(Krosnick, 1999, p. 540).

Two additional factors help offset concerns about whether a

sample is representative. First, response rate should be viewed

in terms of expected or likely participation. The IMA regularly

surveys its members and typically receives a response rate of

6% to 7%, which means the present study had an above

average rate of return given the sampling frame used. Second,

the 460 respondents were similar in background to the overall

membership of IMA. The percentage of respondents in each of

eleven industries closely corresponded with the proportion of

the overall membership in these industries (r = .85). The

proportion of the sample holding each of eight jobs also

mirrored that of the association as a whole (r =.68), with most

differences occurring in the lowest level job termed ‘‘entry

level accountant,’’ which was underrepresented in the sample.

The original data collection procedures targeted 30% women

(29% were in the final sample) and should have produced an

average age of 40 years (actual average age was 40.1 years).

The final sample was comprised of people with an average of

15.3 years experience in the accounting and finance profession

and an average of 4.4 years in their current jobs.

3.2. Measures

Previously developed measures were utilized in this study.

All measures were rated with a five-point scale anchored by

‘‘1’’ (does not describe at all) and ‘‘5’’ (describes exactly).

3.2.1. Ethical context

Ethical context was measured with a five-item ‘‘corporate

ethical values’’ (CEV) scale (Hunt et al., 1989), and this scale

has been used in previous research to assess generalized

company ethics (e.g., Douglas et al., 2001; Paolillo and Vitell,

2002; Singhapakdi et al., 1999; Valentine and Barnett, 2002),

which includes ‘‘the degree to which organizations take an

interest in ethical issues and act in an ethical manner’’ (Hunt et

al., 1989, p. 82). The five items comprising the measure, the

first two of which are reverse coded, include ‘‘Managers in my

company often engage in behaviors that I consider to be

unethical,’’ ‘‘In order to succeed here it is often necessary to

compromise one’s ethics,’’ ‘‘Top management has let it be

known in no uncertain terms that unethical behavior will not be

tolerated,’’ ‘‘If a manager is discovered to have engaged in

unethical behavior that results primarily in personal gain

(rather than corporate gain), he or she will be promptly

reprimanded,’’ and ‘‘If a manager is discovered to have

engaged in unethical behavior that results primarily in

corporate gain (rather than personal gain), he or she will be

promptly reprimanded.’’ Item scores were averaged so that

higher composite values indicating that a company was

believed to be ethical. The coefficient alpha for the scale in

this study was .86.

3.2.2. Perceived organizational support

POS was measured using 6 items reported by Eisenberg,

Armeli, Rexwinklel, Lynch, and Rhodes (2001). Participants

were asked to indicate how well each of the six items portrays

‘‘the organization in which you work.’’ The items were ‘‘It

takes pride in my accomplishments,’’ ‘‘It shows little concern

for me’’ (reverse coded), ‘‘It really cares about my well-being,’’

‘‘Values my contribution to its well-being,’’ ‘‘It strongly

considers my goals and values,’’ and ‘‘It would help me if I

needed a special favor.’’ Item scores were combined and

divided by the total number of items so that higher composite

scores indicated greater POS. The coefficient alpha for the

measure was .87.

3.2.3. Job satisfaction

Seashore, Lawler, Mirvis, and Cammann (1982) developed

a measure of overall satisfaction that was used in this study.

This consists of four items that included ‘‘In general, I don’t like

my job’’ (reverse coded), ‘‘I like working where I do,’’ ‘‘I am

comfortable in my job,’’ and ‘‘I am satisfied with my job.’’ Item

scores were averaged so that higher overall values indicated

increased JS. The measure had a coefficient alpha of .85.

3.2.4. Intention to exit

TI is sometimes assessed with a single item (e.g., Hassel-

horn et al., 2004; Shalley et al., 2000), which anchors the

concept at one point in time and provides no test of reliability.

An alternate measure was presented by Meyer, Allen, and

Smith (1993) combining likelihood and thoughts of leaving

with expected job search behavior. The inclusiveness of this

approach is helpful in detecting a reaction– i.e., if the

individual expects to commence a job search but has not

expectation of landing a job–but might confound the two

activities. Our purpose was to focus on the expectation of

leaving while still allowing variance in response. We also

expected that the timeframe for exit might be longer for the

mid-career professionals in our sample. Three items adapted

from various turnover intention measures (e.g., Cammann et

al., 1979; Seashore et al., 1982) were used, including ‘‘I think

about moving to another company,’’ ‘‘I will leave the company

in the next few years,’’ and ‘‘I expect to be with another

company soon,’’ and higher averaged values indicated

increased TI. The scale had a coefficient alpha of .90.

3.2.5. Job tenure

An employee’s job tenure could affect their perceptions of

ethical context and POS, as well as their responses to work.

Consequently, the variable was included in the analysis as a

control. Respondents were asked on the survey to indicate their

job tenure in years.

3.3. Analysis

Mediated regression procedures developed by Baron and

Kenny (1986) were used to test the models, which involved the

specification of several regression equations to identify

mediation among variables. The impact of one or more

S. Valentine et al. / Journal of Business Research 59 (2006) 582–588586

independent variables on a suggested mediator variable is first

explored in this procedure. In the next step, the impact of one

or more independent variables on a dependent variable is

investigated. The final step requires examining the impact of

the mediator and independent variables on the dependent

variable. Baron and Kenny (1986) stated that statistically

significant associations must be determined among the focal

variables in the first two regression models and between the

mediator variable and dependent variable in the third regres-

sion model to identify mediation. The effect of the one or more

specified independent variables on the dependent variable in

the third model must also be weaker than the effect identified in

the second model, which indicates partial mediation. If the

effect of the one or more independent variables on the

dependent variable in the third model is not significant, then

full mediation is present.

4. Results

4.1. Variable descriptive statistics and correlations

Examination of the mean values associated with the variable

composite scores indicated that subjects believed that their

organization was relatively ethical, and that their employer

supported their work efforts and general well being. Mean

scores also showed that subjects were reasonably satisfied with

their employment and had somewhat low intentions to leave

their jobs. The correlations indicated that the CEV construct

was positively related to POS (r= .48, p <.001) and JS (r =.43,

p <.001) and negatively related to TI (r =� .37, p <.001). POSwas associated with increased JS (r = .63, p < .001) and

decreased TI (r =� .52, p <.001). Finally, JS was negatively

related to TI (r=� .64, p< .001).

4.2. Mediated regression analysis

The results of the mediated regression analysis are presented

in Table 1. Equations 1a through 3a tested the relationship

Table 1

Results of mediated regression analysis

Equation Dependent variable Independent variable

(1a) Perceived organization support Corporate ethical values

Job tenure (years)

(2a) Job satisfaction Corporate ethical values

Job tenure (years)

(3a) Job satisfaction Corporate ethical values

Perceived organization support

Job tenure (years)

(1b) Perceived organization support Corporate ethical values

Job tenure (years)

(2b) Turnover intention Corporate ethical values

Job tenure (years)

(3b) Turnover intention Corporate ethical values

Perceived organization support

Job tenure (years)

Sample sizes ranged from N =439 to N =444 because of missing data.

* p <.05.

*** p <.001.

between CEV and JS as mediated by POS. Equation 1a

indicated that CEV was positively related to POS, while

Equation 2a showed that CEV was negatively related to JS.

Equation 3a showed that both CEVand POS were related to JS,

but that the relationship between ethical values and satisfaction

was weakened between the second and third regression models.

Using a modified version of the Sobel (1982) test that evaluates

relevant parameter estimates and standard errors (Baron and

Kenny, 1986; Kenny et al., 1998), the total reduction in

parameter effect was .25 due to POS, which was statistically

significant (Z =8.44, p <.001), indicating that POS partially

mediated the link between CEV and JS.

Equations 1b through 3b tested the relationship between

CEV and TI as mediated by POS. Equation 1b indicated that

CEV was associated with increased POS while Equation 2b

showed that CEV was associated with decreased TI. Equation

3b indicated that both CEVand POS were related to TI, but that

the relationship between ethical values and turnover was

weakened between the second and third regression models.

POS caused a total reduction in parameter effect of � .29,which was statistically significant (Z =�7.16, p <.001), show-

ing that POS partially mediated the relationship between CEV

and TI.

5. Discussion

The study’s findings point to the potential gains in employee

relations that might be achieved in concert with an effort to

enhance an ethical context. In particular, the analysis showed

that POS links an ethical context to work responses,

specifically JS and TI. By advancing ethical values, companies

might enhance a range of specific attitudes favorable to

employment. Employees might be more connected to a

company that cares for its stakeholders.

The results have both practical and theoretical implications.

The literature suggests that POS, job attitudes, and turnover are

highly related (e.g., Eisenberger et al., 2002; Rhodes and

Eisenberger, 2002; Rhodes et al., 2001), and the strength of

b S.E. b t value Adjusted R2 F value

.44 .04 .47 11.13*** .22 62.29***

.01 .01 .03 .78

.41 .04 .42 9.90*** .18 51.14***

.01 .01 .09 1.99*

.17 .04 .17 4.16*** .41 103.67***

.55 .04 .54 13.02***

.01 .01 .07 1.93

.44 .04 .47 11.13*** .22 62.29***

.01 .01 .03 .78

� .52 .06 � .36 �8.10*** .13 33.21***

� .01 .01 � .04 � .80� .23 .07 � .16 �3.50*** .27 56.08***

� .66 .07 � .43 �9.39***.00 .01 � .02 � .44

S. Valentine et al. / Journal of Business Research 59 (2006) 582–588 587

these relationships likely contributed to the mediation found in

this study. POS partially mediated the effect of ethical values

on both JS and TI, suggesting that such principles influence job

responses partly through POS.

From a practical vantage, these results indicate that organiza-

tions under increased pressure to adopt ethics initiatives might

hope to accomplish a social good and meet stakeholders’

expectations about ethics, while achieving other salutary

organization outcomes. In this regard, both JS and reduced TI

can be viewed as favorable outcomes. However, to achieve these

favorable consequences, the results of the current study suggest

efforts to develop a corporate ethical culture should do so in a

manner that also fosters POS among its employees. Organiza-

tions can build employees’ positive perceptions of the workplace

by emphasizing ethical practices that support the welfare of

stakeholders and that increase congruence between personal and

organizational values. The findings altogether suggest that

companies need to expand their view of what needs to be done

when developing an ethical context to include building employ-

ees’ recognition of the organization’s concern for individual

well-being. Indeed, such perceptions were associated with JS

and TI in this study. Themanner in which organizations go about

supporting ethical principles might well determine whether POS

is developed through corporate processes. Rhodes and Eisen-

berger (2002) suggest that the process should be transparent so

employees comprehend the logic underlying a company’s

actions. Even though the environment might be a factor in

decisions about ethical culture, it is important that the

environment not be seen to compel the decisions made, if these

decisions are to lead to POS.

The prospect of obtaining incidental benefit of the sort

considered here encourages review and extension of the

literature examining the methods of developing CEV. We

already know that ethical codes, ethics training, and institu-

tionalized beliefs at the company level can enhance employee

ethics (Adams et al., 2001; Singhapakdi et al., 1999; Sims,

1991; Trevino, 1986; Valentine and Barnett, 2002), and these

programs might also promote favorable job attitudes and

reduce intentions to leave the company (Koh and Boo, 2001;

Shafer, 2002; Valentine et al., 2002; Viswesvaran et al., 1998).

However, viewing ethical context in terms of POS suggests a

new way of looking at interventions into a company’s ethical

culture. The conceptual framework on which POS is built is

one wherein the organization is perceived as ready to maintain

and reward the individual in exchange for contributions to the

organization. In this regard, organizational ethics might provide

clarity in terms of work expectations, foster consistencies

between individual values and behavior, and strengthen the

attachments between employees and organizations (Valentine

et al., 2002). This calls for future research to examine the

process by which corporate ethics programs are managed, and

how they affect POS in various areas of the organization.

The effort to bridge the literatures on ethical context and POS

may have implications for the study of other workplace

interventions. Institutionalizing CEV is but one process under-

taken by organizations that affects the activities of employees.

Similar to these other interventions, the effort to build ethical

context are approached with apprehensions that include com-

pliance concerns, decreased commitment and morale, and

diminished loyalty. The mechanism of POS provides a basis

for integrating thought on organization level interventions that

affect large numbers of people within companies. POS can be

monitored to help better understand the impact of organizational

programs. It may also provide a productive avenue for

hypotheses on ways in which organizational interventions might

have the most favorable effects.

The study has several limitations. The use of accounting and

financial professionals constitutes a restriction to the general-

ization of the study’s results. While accountants are often

sampled in studies of business ethics (e.g., Douglas et al.,

2001; Fleischman and Valentine, 2003; Shafer, 2002), their

involvement in the integrity of information and their unique

professional ethical cannons might affect their responses to

questions on the topic of ethics. As was discussed previously,

the data came from a survey with a modest response rate,

creating the possibility of nonresponse bias. Because the

information was collected solely with a self-report survey,

common method bias is another concern. Furthermore, the data

utilized in this investigation prevents any definitive conclu-

sions about causality among the study variables.

Further research should address the study’s limitations by

gathering information from other populations utilizing a variety

of data collection methods, ethical context scales, and more

objective measures of organizational ethics. Following the

progress of various organizational interventions over time would

also be useful. There is also the likelihood that POS moderates

some of the relationships identified in this study, and future

research should explore these possibilities. Organizational

justice should also be explored within the study’s framework

to determine whether these perceptions could moderate or

mediate the positive relationship between CEV and POS. The

potential relationships between other ethics programs such as

ethics codes/training and POS should also be examined to

determine whether seeming similarities in ethical culture

translate equally in terms of POS.

Acknowledgments

The authors appreciate the funding provided by the IMA

(Institute of Management Accountants) that supported their

collection of data, as well as the suggestions provided by Philip

Varca and John Jackson of the University of Wyoming.

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