THE EFFECTIVENESS OF ETHICS-TRAINING PROGRAMS IN THE BANKING SECTOR
The mediation effects of ethical culture, supervision, and enforcement
Academic and professional interest in organizational ethics-training is on the rise as advances in technology and global reach create increasing opportunities for violations of moral standards. To mitigate risks associated with moral hazard, organizations strive to create an ethical culture by offering formal ethics-training programs. Notably, the literature is rich with studies that confirm a positive effect of ethics-training programs on employee ethical behavior. However, such programs may become mere cosmetics in the presence of a weak ethical culture, a non-ethics oriented supervisor, and lack of policy enforcement. This study investigates the roles played by the afore-mentioned factors on the relationship between formal ethics-training and employee ethical intentions. The quantitative approach is used and data are analyzed using structural equation modeling with IBM’s Amos. Important findings are reported and relevant implications suggested.
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