Title

Better than ever? Employee reactions to ethical failures in organizations, and the ethical recovery paradox

Authors

Authors

M. Schminke; J. Caldwell; M. L. Ambrose;S. R. McMahon

Comments

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Abbreviated Journal Title

Organ. Behav. Hum. Decis. Process.

Keywords

Behavioral ethics; Ethical failure; Ethical recovery paradox; Service; recovery paradox; Relationship repair; LEADER-MEMBER EXCHANGE; SERVICE RECOVERY; FINANCIAL PERFORMANCE; CUSTOMER SATISFACTION; PERCEIVED JUSTICE; DECISION-MAKING; SOCIAL-EXCHANGE; TRUST REPAIR; SUPPORT; METAANALYSIS; Psychology, Applied; Management; Psychology, Social

Abstract

This research examines organizational attempts to recover internally from ethical failures witnessed by employees. Drawing on research on service failure recovery, relationship repair, and behavioral ethics, we investigate how witnessing unethical acts in an organization impacts employees and their relationship with their organization. In two studies one in the lab and one in the field we examine the extent to which it is possible for organizations to recover fully from these ethical lapses. Results reveal an ethical recovery paradox, in which exemplary organizational efforts to recover internally from ethical failure may enhance employee perceptions of the organization to a more positive level than if no ethical failure had occurred. (C) 2013 Elsevier Inc. All rights reserved.

Journal Title

Organizational Behavior and Human Decision Processes

Volume

123

Issue/Number

2

Publication Date

1-1-2014

Document Type

Editorial Material

Language

English

First Page

206

Last Page

219

WOS Identifier

WOS:000331500400011

ISSN

0749-5978

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