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BUSINESS & MANAGEMENT STUDIES:
AN INTERNATIONAL JOURNAL
Published: 2020-09-25

DIMENSIONS AND TYPES OF ETHICAL CLIMATE DETERMINATION OF ETHICAL SUB-CLIMATE AND ITS EFFECTS ON ORGANIZATIONAL COMMITMENT

Asisst. Prof. Dr., Adana Alparslan Türkeş University
Assoc. Prof. Dr., Adana Alparslan Türkeş University
Ethics, Ethical Climate, Ethical Subclimate, Organization Climate, Organizational Commitment

Abstract

1. LITERATURE
1.1. RESEARCH SUBJECT
The problems brought about the centralization of major ethical issues in terms of media, customers, other internal and external environmental issues in the context of organizations (Mayer, Kuenzi & Greenbaum, 2009). While researchers investigated why employees exhibit unethical behaviours at work (Kish-Gephart et al., 2010), Victor and Cullen (1987, 1988) published their pioneering work that demonstrated how the environment of the organization influenced unethical behaviour through the concept of ethical climate. In these studies, it is presented as a descriptive map of ethical decision making and implementation in an organization based on ethical climate, philosophy, and sociology disciplines (Martin & Cullen, 2006). The ethical climate typology of Victor and Cullen has been subject to numerous studies since this date, and its dimensions, determinants and behavioural implications have been discussed. In these studies, it was revealed that more than one ethical climate dimension could be observed in an organization, while the existence of ethical sub-climates in the company was ignored.
1.2. RESEARCH PURPOSE AND IMPORTANCE
The study aims to examine the differentiation of ethical climate typology, developed by Victor and Cullen, in similar organizational structures and to examine the effect of possible clusters on the organizational commitment chosen as a dependent variable.
1.3. CONTRIBUTION of the ARTICLE to the LITERATURE
The study has made an essential contribution to the literature by examining the elements of the ethical climate in the banking sector. Because, In Turkish literature, the number of researches on the subject is minimal.
2.DESIGN AND METHOD
2.1. RESEARCH TYPE
In this research, a quantitative method was adopted. Research is Applied Research.
2.2. RESEARCH PROBLEMS
The main problem of the research is to reveal the relationship between ethical climate behaviour and organizational commitment of white-collar employees in the Banking Sector in Adana.
2.3.DATA COLLECTION METHOD
The universe of this research, which aims to determine the effect of ethical sub-climate types on organizational commitment, is the employees of private banks operating in Adana. The questionnaire forms including the purpose, scope, data collection, analysis, retention, and confidential information and commitments of the study were sent to 340 people working in 82 private capital bank branches in four central districts of Adana in the period of January-March 2018. 168 (49.4%) of the questionnaires were found suitable for the analysis. The multi-directional extreme value was not found in the data set. By examining the normality of the data, we determined the kurtosis in the two variables for the range of + -2, but it was preferred that there was no conversion since the values were not too high from the threshold and there was no excessive deviation from the expected normality in the q-q plots. On the other hand, regression plots for multiple linearities were checked to determine that there was no linearity, and the R matrices determinant showed that there was no special connection for both factor analysis. Finally, the correlation coefficients (<0.8) and VIF values (<2.5) show that there are no multiple links and linearity in the model (Tabachnick & Fidell, 2015).
2.4. QUANTITATIVE ANALYSIS
In the study, the Turkish version of the original ethical climate scale produced by Victor and Cullen (1988) developed by Özyer (2010) was used as a data collection tool to measure the perceptions of the ethical climate of the participants. To evaluate whether ethical climate clusters contribute to behavioural differences, the Turkish version of the organizational commitment scale produced by Allen and Meyer (1991), which is widely used in the literature, was used to measure the participants' organizational commitment. The scale consists of three dimensions: emotional, organizational commitment, binding organizational commitment, and normative organizational commitment. In this study, the cluster analysis method was used for data analysis.
3.FINDINGS AND DISCUSSION
3.1. FINDINGS as a RESULT of ANALYSIS
The sample volume for organizational commitment was sufficient in the context of the variables that were analyzed. Kaiser-Meyer-Olkin Sample Conformity Coefficient (KMO = .751) was recorded. Barlett's Sphericity Test recorded significant results (729.965, p <.001), and it was found that the structure was suitable for principal components analysis. Explaining 58.6% of the total variance, the three-factor structure's core components were emotional attachment, four items (α = .759), normative commitment (four = α747), and continuity commitment with five items (α = .728). The scale was evaluated to be reliable (α = .779). According to the evaluation of the participants, instrumental (M = 3.23) and independent (M = 3.21), climate types recorded higher averages within the ethical climate dimensions. Ethical climate dimensions have an impact on organizational commitment (F = 9.13, p <.001). Rule-procedure, independent, and instrumental climate dimensions explain 19% of the variance on organizational commitment. As a result of the cluster analysis, it is seen that in the "Professional Climate" cluster, the highest component average from the "Pragmatic Climate" which is the second type in terms of rule and procedural dimension is recorded. When the averages of expressions are analyzed, it is seen that although the global climate position is dominant in the professional climate, local principal ethical dimensions are dominant. It can be thought that the combination of laws, rules, and procedures in both the factor structures of the ethical climate and the clusters of the ethical climate resulted from the sample of the study. Professional climate (F = 41.814, p <.001) can predict organizational commitment and explain 33.5 per cent of the variance. On the other hand, the pragmatic climate cluster cannot predict organizational commitment in a statistically significant way.
3.2. DISCUSSING the FINDINGS with the LITERATURE
In this study, the factor structure of the ethical climate has been investigated, and similar dimensions have been reached (rule-method, instrumental, independent, and essential). Unlike the experimental dimensions, the merger of two cells in the rule-procedural dimension can be caused by the fact that the expressions related to them are close in the original scale, as stated by Whimbush, Shepard, and Markham (1997). Secondly, it can be thought that the fact that the banking sector is subject to regulation at a high level and generally in line with international standards may bring the positions of universal and organizational analysis closer to each other in terms of laws, rules, and procedures. In the second stage of the research, the relationships between ethical climate structure and behaviour were examined, and it was revealed that multiple regression analysis positively and significantly predicted organizational commitment. The rules and procedures, instrumental and independent dimensions of the general ethical climate have a positive effect on organizational commitment. The instrumental climate has shown a negative relationship with organizational commitment in previous studies (Cullen et al., 2003; Ruppel and Harrington, 2000; Tsai and Huang, 2008).
4.CONCLUSION, RECOMMENDATION AND LIMITATIONS
4.1. RESULTS of the ARTICLE
In addition to revealing the effect of the general ethical climate on organizational commitment, the research shows that in this structure, the professional sub climate firmly explains organizational commitment and pragmatic climate does not have the power to explain.


4.2. SUGGESTIONS BASED on RESULTS
We state that more knowledge of the managers about the ethical climate will make them more effective at the workplace.
4.3. LIMITATIONS of the ARTICLE
The research has several limitations. First of all, this research was conducted in private bank branches and a single province. The second significant limitation of the study is the determination of the ethical climate based on the typology of Victor and Cullen (1987, 1988). Alternative approaches can be used here.

 

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How to Cite

SEZGİLİ, K., & EFEOĞLU, İbrahim E. (2020). DIMENSIONS AND TYPES OF ETHICAL CLIMATE DETERMINATION OF ETHICAL SUB-CLIMATE AND ITS EFFECTS ON ORGANIZATIONAL COMMITMENT. Business & Management Studies: An International Journal, 8(3), 3615-3639. https://doi.org/10.15295/bmij.v8i3.1502