Data-based ethical decision making, lateral relations, and organizational commitment. Building positive workplace connections through ethical operations
| Date | 01 October 2018 |
| Pages | 946-963 |
| Published date | 01 October 2018 |
| DOI | https://doi.org/10.1108/ER-10-2017-0240 |
| Author | Sean Robert Valentine,David Hollingworth,Patrick Schultz |
| Subject Matter | HR & organizational behaviour,Industrial/labour relations,Employment law |
Data-based ethical decision
making, lateral relations, and
organizational commitment
Building positive workplace connections
through ethical operations
Sean Robert Valentine, David Hollingworth and Patrick Schultz
Department of Management, University of North Dakota, Grand Forks,
North Dakota, USA
Abstract
Purpose –Focusing on ethical issues when making organizational decisions should encourage a variety of
positive outcomes for companies and their employees. The purpose of this paper is to determine the degree to
which data-based ethical decision making, lateral relations and organizational commitment are interrelated
in organizations.
Design/methodology/approach –Data were collected from business professionals employed at multiple
locations of a financial services firm operating in the USA. Mediation analysis (based on structural equation
modeling) was used to test the proposed relationships.
Findings –Results indicated that employees’perceptions of data-based ethical decision making were
positively related to perceived lateral relations, and that perceived lateral relations were positively related to
organizational commitment.
Research limitations/implications –Given that information was collected using only a self-report
questionnaire, common method bias could be an issue. In addition, the study’s cross-sectional design limits
conclusions about causality. Another limitation involves the study’s homogenous sample, which decreases
the generalizability of the findings. Finally, variable responses could have been impacted by individual
frames of reference and other perceptual differences.
Practical implications –Results suggest that information flow enhancements should support or be
consistent with horizontal information flow enhancements, and that together these factors should increase
employee commitment.
Originality/value –Given the dearth of existing research, this interdisciplinary investigation is important
because it fills gaps in the management literature. This study is also important because the results could
inform decisions regarding the use of data analysis in ethical decisions and lateral forms of organizational
structuring to improve work attitudes.
Keywords Decision making, Employee attitudes, Employee relations, Business ethics
Paper type Research paper
Introduction
Organizations utilize a variety of approaches to develop and maintain a work context that
promotes ethics and other desirable employee characteristics. For example, considerable
effort can be dedicated to developing a set of ethical values that highlight important
behavioral guidelines (e.g. Herndon et al., 2001; Hunt et al., 1989; Trevino and Nelson, 2011).
Additionally, employees can be recruited, selected and socialized in a manner so that they
understand the importance of these cultural principles (Fritz et al., 1999; Hunt et al., 1989;
Sims, 1991; Valentine et al., 2014). Another mechanism for improving organizational ethics
includes managers’adherence to and promotion of ethics through their actions and
reinforcement processes (i.e. decisions about rewards and punishments) (Fritz et al., 1999;
Hunt et al., 1989; Koh and Boo, 2001; Koonmee et al., 2010; Schwepker, 2001; Trevino et al.,
1998; Trevino and Nelson, 2011). The creation of programs such as codes of conduct and
ethical training can also support ethics in companies (Koonmee et al., 2010; Ruiz-Palomino
et al., 2013; Schwepker, 2001; Trevino and Nelson, 2011).
Employee Relations
Vol. 40 No. 6, 2018
pp. 946-963
© Emerald PublishingLimited
0142-5455
DOI 10.1108/ER-10-2017-0240
Received 10 October 2017
Revised 26 March 2018
Accepted 27 March 2018
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0142-5455.htm
946
ER
40,6
Despite these effects, the process of ethical decision making often requires access to and
evaluation of cognitively complex information, including assessments of individual,
situational, organizational factors (Ferrell and Gresham, 1985; Hunt and Vitell, 1986;
Jones, 1991; Rest, 1986; Trevino, 1986). Attention directed toward augmented ethical
reasoning also increases the complexity of the decision making that occurs in organizations
due to the diversity and quantity of information related to the issues addressed. Individual
and organizational responses to these information requirements may include enhancements
to formal/informal organizational structures and systems for identifying, accessing and
evaluating appropriate data for ethical decision making (Rottig et al., 2011). However,
changes to structures can dramatically affect (for better or for worse) information
processing requirements and capabilities (Eppler and Mengis, 2004). While enhanced
information access/flow may be useful for ethical decisions, information overload may lead
employees to exercise poor judgment and disengage (Eppler and Mengis, 2004).
One response to increased information needs is the application of information gathering
and processing techniques/technologies to facilitate ethical decision making (Brans and
Gallo, 2007; Le Menestrel and Van Wassenhove, 2004; Singer and Singer, 1997). Increased
information processing capability could contribute to enhanced organizational ethics, which
is generally linked to favorable employee attitudes and other positive consequences
(e.g. Hunt et al., 1989; Schwepker, 2001; Singhapakdi and Vitell, 2007; Trevino et al., 1998;
Viswesvaran et al., 1998). However, some scholars have warned that the use of data-based
(or data-driven) decision-making methods and technologies for sifting, sorting, summarizing
and facilitating decisions may adversely affect ethical reasoning by obscuring certain
issues for decision makers (Brans and Gallo, 2007; Hollingworth, 2014; Le Menestrel and
Van Wassenhove, 2004; Singer and Singer, 1997; Trevino and Nelson, 2011; Valentine and
Hollingworth, 2012). These conditions may cause ethical conflict among employees as they
observe ethical issues that are not effectively recognized and addressed by the organization.
Such conflict, if unresolved, may contribute to role stress, decreases in desirable employee
attitudes (including job satisfaction and organizational commitment), and increases in
turnover (Schwepker, 1999; Schwepker et al., 1997; Valentine et al., 2014). Consequently,
data-based decision making in organizations should focus on ethical issues and concerns in
order to avoid such conflict.
Employee’s perceptions of organizational ethics, organizational structures and accessible
information are likely to vary substantially within and across firms. Furthermore, employee
responses (i.e. work attitudes and behaviors) to the ethical context of an organization may
vary significantly from one employee to the next (Hollingworth and Valentine, 2015;
Sutherland and Cressey, 1970). This study, therefore, considers the proposed relationships
among individual, micro-level perceptions of data-based ethical decision making and lateral
(i.e. positive and interactional) organizational structures in conjunction with employees’
organizational commitment. This study focuses on two primary questions. First, how do
employee perceptions of data-based ethical decision making affect their organizational
commitment? Second, do employee perceptions of lateral relations in organizational
structure (Galbraith, 1974) operate to mediate the effect of data-based ethical decision
making on employee attitudes?[1]
While prior research has examined rather extensively the connections between
organizational ethics and employee attitudes, data-based ethical decision making, a
proposed componentof corporate ethics, has receivedlittle attention. In addition,it is not clear
whether data-based ethical decision making has a positive or negative effect on firms and
employees, particularly given that data-driven considerations in companies can sometimes
substantially limit assessments of the ethical criteria that are used in decision making
(e.g. Hollingworth, 2014; Trevino and Nelson, 2011). Ideally, data-based ethical decision
making in organizations would lead to the development of positive and interactional
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Data-based
ethical decision
making
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