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

Charles H. Schwepker (), Sean R. Valentine (), Robert A. Giacalone () and Mark Promislo ()
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Charles H. Schwepker: University of Central Missouri
Sean R. Valentine: University of North Dakota
Robert A. Giacalone: John Carroll University
Mark Promislo: Rider University

Journal of Business Ethics, 2021, vol. 174, issue 1, No 9, 143-159

Abstract: 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.

Keywords: Organizational ethics; Work stress; Employee well-being (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10551-020-04562-w

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