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Organizational Trust Ethics

Ethics are an important aspect of corporate work. For all concerned. The concept has been taken on board in many manufacturing organizations, but not everywhere and it is often absent in those organizations whose role, market ranking and business sector would make them prime candidates for showing many others how it should be done. Yet there is a growing awareness that corporate work ethics also pay a financial price, so it’s important to take a look at the links between organization, ethics and corporate work. The studies undertaken by Christie Hough, Kenneth Green and Gerald Plumlee (Southern Arkansas University, USA) are eye-openers in this respect.

“Impact of ethics environment and organizational trust on employee engagement”, published in Volume 18, Number 3, 2016 of the Journal of Legal, Ethical and Regulatory Issues, is a complex investigation that analyses the relationship between enterprise, management and employees, starting from the premise that making a stronger commitment from an ethical standpoint will also reap benefits in terms of better employee performance. Starting with a good theoretical premise, the research then seeks to put together the results of the various corporate work indices under empirical observation from the Ethical Environment (EE) perspective. Under the microscope came the links between Organizational Trust and Human Resources Management (OT-HRM) policies, Organizational Trust and Business Communication (OT-C), Organizational Trust and Values and Moral Principles (OT-VM), prevalent within the company and perceived by the outside world.

Researchers explain that they are studying the impact of trust as a mediator between the need for an ethical environment and employee engagement in production sites. The University of Arkansas research team was then able to prove that there is a significant link between the perception of what is and is not ethical in the minds of management and employees, and their trust in or mistrust of the organization where they work.

Trust and mistrust, moreover, are closely tied to the level of engagement or lack thereof in production and therefore in corporate growth.

The results of the Hough-Green-Plumlee studies are a hefty step forward in the progress towards awareness of the strong ties (in terms of profits also) between organizational ethics, corporate culture and daily practices in a manufacturing organization.

Impact of ethics environment and organizational trust on employee engagement 

Christie Hough, Kenneth Green, Gerald Plumlee (Southern Arkansas University)

Journal of Legal, Ethical and Regulatory Issues, Volume 18, Number 3, 2016