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Good Barrels Yield Healthy Apples: Organizational Ethics as a Mechanism for Mitigating Work-Related Stress and Promoting Employee Well-Being

Author

Listed:
  • Charles H. Schwepker

    (University of Central Missouri)

  • Sean R. Valentine

    (University of North Dakota)

  • Robert A. Giacalone

    (John Carroll University)

  • Mark Promislo

    (Rider University)

Abstract

Little is known about how ethical organizational contexts influence employees’ perceived stress levels and well-being. This study used two theoretical lenses, ethical impact theory (Promislo et al. in Handbook of Unethical Work Behavior, M.E. Sharpe, Armonk, 2013) and ethical decision-making theory (Schwartz in J Bus Ethics 139(4): 755–776, 2016), to investigate the relationships among perceived organizational ethics (comprised of ethical climate, leader/manager ethics, and corporate social responsibility), work-related stress, and employee well-being (comprised of vitality, life satisfaction, personal growth initiative, flourishing, positive mental health, and self-actualization). Findings across two studies indicated that organizational ethics was negatively related to work-related stress, and that work-related stress was negatively related to employee well-being. Perceived organizational ethics is positively related to employee well-being, with post hoc mediation tests indicating that work-related stress partially mediates this relationship. Our findings suggest that organizations should be proactive in improving their ethical climate, such as choosing ethical leaders, developing a robust and well-communicated code of ethics, and actively practicing CSR. These measures should reduce excessive work-related stress and improve employee well-being.

Suggested Citation

  • Charles H. Schwepker & Sean R. Valentine & Robert A. Giacalone & Mark Promislo, 2021. "Good Barrels Yield Healthy Apples: Organizational Ethics as a Mechanism for Mitigating Work-Related Stress and Promoting Employee Well-Being," Journal of Business Ethics, Springer, vol. 174(1), pages 143-159, November.
    • Handle: RePEc:kap:jbuset:v:174:y:2021:i:1:d:10.1007_s10551-020-04562-w
    DOI: 10.1007/s10551-020-04562-w
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    References listed on IDEAS

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