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Does Ethical Orientation of HRM Impact on Employee Ethical Attitude and Behavior? Evidence from Sri Lankan Commercial Banks

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  • Viruli A. de Silva
  • H.H.D.N.P. Opatha
  • Aruna S. Gamage

Abstract

Employee ethical behavior (EB) has been recognized as the behavior that organizations pursue to drive performance and success. Despite many positive consequences of EB, corrupt business practices and unethical behavior are common in organizations. How Ethical Orientation of Human Resource Management (EOHRM) or ethical criteria embedded HRM functions directed as a ‘bundle’ could address this problem has not been empirically tested in research. This study examined how EOHRM could influence employee EB in organizations through an identified mediator employee Ethical Attitude (EA). A three-construct integrated model was developed based on literature gaps and tested empirically. The type of investigation was correlational, cross-sectional in the time horizon and unit of analysis was individual. A stratified random sample of 550 senior and middle-level managers was selected from 11 domestic Licensed Commercial Banks (LCBs) in Sri Lanka. A pre-tested structured questionnaire (with 5-point Likert Scale) was used to collect primary data. Using SPSS Version 23.0, correlation and regression analysis were performed on 360 usable responses (65%). EOHRM was positively and significantly related to employee EA (0.432, p

Suggested Citation

  • Viruli A. de Silva & H.H.D.N.P. Opatha & Aruna S. Gamage, 2018. "Does Ethical Orientation of HRM Impact on Employee Ethical Attitude and Behavior? Evidence from Sri Lankan Commercial Banks," International Business Research, Canadian Center of Science and Education, vol. 11(1), pages 217-229, January.
    • Handle: RePEc:ibn:ibrjnl:v:11:y:2018:i:1:p:217-229
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    References listed on IDEAS

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    1. Viruli A. de Silva & H. H. D. N. P. Opatha & Aruna S. Gamage, 2016. "Towards Extending the Ethical Dimension of Human Resource Management," International Business Research, Canadian Center of Science and Education, vol. 9(10), pages 151-161, October.
    2. Jaap Paauwe, 2009. "HRM and Performance: Achievements, Methodological Issues and Prospects," Journal of Management Studies, Wiley Blackwell, vol. 46(1), pages 129-142, January.
    3. Baker, Thomas L. & Hunt, Tammy G. & Andrews, Martha C., 2006. "Promoting ethical behavior and organizational citizenship behaviors: The influence of corporate ethical values," Journal of Business Research, Elsevier, vol. 59(7), pages 849-857, July.
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    1. D. M. Sachinthanee Dissanayake & Ananda K. L. Jayawardana, 2023. "The impact of personal sense of power on unethical decision-making: a moderated mediation model of love of money motive and power distance orientation," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 50(1), pages 19-34, March.

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    More about this item

    Keywords

    ethical orientation of HRM; ethical behavior; ethical attitude; organizations; commercial banks;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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