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Ethical behaviours in organizations: Directed by the formal or informal systems?

Loren Falkenberg, Irene Herremans

Journal of Business Ethics · 1995 · Volume 14 · Issue 2

DOI: 10.1007/BF00872018

Abstract

Past research has focused on individual culpability with the assumption that individuals will further their own self interest over that of the organization, given an appropriate opportunity. In contrast, this research shifts the focus from individual motivation to the influence of the formal and informal control systems of organizations on ethical behaviours. An open-ended interview approach was used to collect data. It was found that pressures within the informal system were the dominant influence in the resolution of ethical issues. The dominance of the informal system, however, varies according to the economic position of the organization.

Keywords

Control System, Economic Growth, Ethical Issue, Past Research, Ethical Behaviour

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