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Simões, E., Duarte, A.P. & Dias, R. (2023). The relationship between organization’s internal ethical context and subjective well-being – the role of socially responsible HRM and ethical leadership. EAWOP - 21st European Association of Work and Organizational Psychology.

J. E. Silva et al.,  "The relationship between organization’s internal ethical context and subjective well-being – the role of socially responsible HRM and ethical leadership", in EAWOP - 21st European Association of Work and Organizational Psychology, Katowice, 2023

@misc{silva2023_1716028594673,
	author = "Simões, E. and Duarte, A.P. and Dias, R.",
	title = "The relationship between organization’s internal ethical context and subjective well-being – the role of socially responsible HRM and ethical leadership",
	year = "2023",
	url = "https://eawop2023.org/"
}

TY  - CPAPER
TI  - The relationship between organization’s internal ethical context and subjective well-being – the role of socially responsible HRM and ethical leadership
T2  - EAWOP - 21st European Association of Work and Organizational Psychology
AU  - Simões, E.
AU  - Duarte, A.P.
AU  - Dias, R.
PY  - 2023
CY  - Katowice
UR  - https://eawop2023.org/
AB  - Research goals and why the work was worth doing: This study sought to understand how
organizations’ internal ethical context (IEC) relates to employees’ subjective well-being (SWB) and
satisfaction with life (Diener, 2012). Two potential mediating variables were examined, namely
socially responsible HRM (SRHRM) and ethical leadership. The study contributes to increase current
understanding of the effects of IEC on employees’ SWB, a neglected research topic (Schwepker et al.,
2021). Theoretical background : Organizations’ IEC is part of the “ethical infrastructure” (Tenbrunsel et al.,
2003) which includes formal and informal ethical systems (Kish-Gephart et al., 2010; Treviño &
Weaver, 2001). One way to communicate formal norms is having an ethical program that presents
the expected conduct, reward, and sanctioning system.
Ethics programs’ dynamics are extremely important in impacting individual ethical awareness and,
consequently, their ethical behavior (Kaptein, 2015). Previous research suggests that organizations’
IEC is relevant to employees’ well-being, being associated to diminishing levels of distress
(Schwepker et al., 2021). Organizations with strong IEC strive to treat employees with justice (Vitell
& Singhapakdi, 2007), which influences their job satisfaction (Valentine &
Fleischman,2007) and quality of life (Kim et al.,2017). Satisfaction with work is an important
consequent of ethical context as well as an important predictor of employees’ happiness with life in
general (Lee et al., 2015). So, the first hypothesis (H1) is that organization’s IEC will be positively
related to employees’ levels of SWB.
IEC’s impact on SWB might be explained by how organizations manage their members. Specifically, it
is proposed that a stronger IEC is associated with a firmer adoption of SRHRM practices, i.e., HRM
guidelines involving concerns for corporate social responsibility practices focused in promoting
employees’ quality of life (Sancho et al., 2018). The investment in such practices increases
employees’ SWB (Zhang et al., 2021). Accordingly, we posit that SRHRM mediates the relationship
between IEC and employees’ SWB (H2).
Ethical leadership might also help explaining how IEC promotes employees’ SWB. Leaders can
translate organization’s ethical concerns into workers’ daily lives, serving as role models, by giving
salience to ethical issues, rewarding and sanctioning (un)ethical behaviors. Since ethical leaders
contribute to higher job satisfaction (e.g., Sarwar et al., 2020), we predicted that ethical leadership
mediates the relationship between IEC and SWB (H3).The existence of a strong SRHRM system can enhance stronger ethical leadership. As SRHRM
improves employees’ behaviors and adherence to ethical practices (Podgorodnichenko et al., 2021),
it is also expected to foster ethicality of leaders’ behaviors. Leaders might serve as ambassadors of
ethical and socially responsible practices in the workplace, communicating and promoting those
practices (Brown & Treviño, 2006). Therefore, we propose that SRHRM and ethical leadership
sequentially mediate the relationship between IEC and SWB (H4).
Design/Methodology/Approach/Intervention : A quantitative correlational, survey-based study was
developed with 315 workers. It included instruments selected from the relevant literature (e.g.,
Brown et al., 2005; Diener et al., 1985; Kaptein, 2015; Sancho et al., 2018). The data were analyzed
using multiple regression analysis using PROCESS macro.
Results obtained or expected : Three mediation models were examined, one for each SWB
indicator. The results indicated significant total effects of IEC (measured by the scope of the ethics
program) on positive and negative affects but not satisfaction with life, partially supporting H1.
Furthermore, SRHRM mediates the relationship between IEC and the three indicators of SWB,
supporting H2. H3 did not received support as ethical leadership does not mediates any of the
relationships. Finally, findings provide support to H4, with the sequential mediation being significant
for all SWB indicators.
Limitations : The convenience sample limits the results’ generalizability. Common method bias is a
potential threat given the study’s cross-sectional, single source use.
Conclusions : Literature had previously confirmed the effect of IEC in the reduction of unethical
behaviors. This study has look to the IEC with a different lens, examining its effect on employees’
SWB and satisfaction with life. The findings indicate that a stronger IEC, promotes employees’ SWB
both directly and indirectly by fostering SRHRM, and, subsequentially, enhancing ethical leadership.
Relevance to the Congress Theme : Promoting people’s well-being inside and outside work is a key
challenge of today’s organizations. This study shows how organizations’ IEC can contribute for this
endeavor by fostering SRHRM and ethical leadership.
ER  -