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Investigating the Impacts of Organizational Factors on Employees’ Unethical Behavior Within Organization in the Context of Chinese Firms

Author

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  • Xiaolin Lin

    (University at Buffalo, The State University of New York)

  • Paul F. Clay

    (Fort Lewis College)

  • Nick Hajli

    (Newcastle University Business School)

  • Majid Dadgar

    (Washington State University)

Abstract

Unethical behavior is under-examined in the workplace. To date, few studies have attempted to explore the antecedents of an employee’s ethical decisions, particularly with respect to unethical behavior and its effects. To capture an employee’s psychological perception of unethical behavior in the workplace, this paper integrates organizational factors (codes of conduct, likelihood of detection, and performance pressure) into the Theory of Reasoned Action. By conducting an empirical study in a Chinese firm, we found that codes of conduct and performance pressure have a significant influence on an employee’s attitude toward and social beliefs about unethical behavior. We also demonstrated that employees’ unethical behaviors affect the firm performance of an entrepreneurial venture. The insights gleaned from the findings on this Chinese company have a number of important implications for both research and practice.

Suggested Citation

  • Xiaolin Lin & Paul F. Clay & Nick Hajli & Majid Dadgar, 2018. "Investigating the Impacts of Organizational Factors on Employees’ Unethical Behavior Within Organization in the Context of Chinese Firms," Journal of Business Ethics, Springer, vol. 150(3), pages 779-791, July.
    • Handle: RePEc:kap:jbuset:v:150:y:2018:i:3:d:10.1007_s10551-016-3209-4
    DOI: 10.1007/s10551-016-3209-4
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    References listed on IDEAS

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    2. Deqiang Deng & Chenchen Ye & Fan Wu & Yijing Guo & Hao Li & Changsheng Wang, 2023. "Effect of organizational ethical self-interest climate on unethical accounting behaviour with two different motivations in China: the moderating effect of Confucian ShiZhong Thinking," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    3. Taslima Jannat & Syed Shah Alam & Yi-Hui Ho & Nor Asiah Omar & Chieh-Yu Lin, 2022. "Can Corporate Ethics Programs Reduce Unethical Behavior? Threat Appraisal or Coping Appraisal," Journal of Business Ethics, Springer, vol. 176(1), pages 37-53, February.
    4. Kausar Fiaz Khawaja & Muddassar Sarfraz & Mahmoona Khalil, 2023. "Doing good for organization but feeling bad: when and how narcissistic employees get prone to shame and guilt," Future Business Journal, Springer, vol. 9(1), pages 1-16, December.
    5. Venkatesh, V.G. & Zhang, Abraham & Deakins, Eric & Mani, Venkatesh, 2021. "Antecedents of social sustainability noncompliance in the Indian apparel sector," International Journal of Production Economics, Elsevier, vol. 234(C).

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