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

    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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