The Ethical Climate of Danish Firms: A Discussion and Enhancement of the Ethical-Climate Model

Journal of Business Ethics · 2008 · Volume 80 · Issue 4

Abstract

The initial purpose of this study is to provide an empirical validation of Victor and Cullen’s ethical-climate model (1987, Frederick (ed.),Research in Corporate Social Performance and Policy, Vol. 9, pp. 51–71; 1988,Administrative Science Quarterly33, 101–125; 1990, Frederick and Preston (eds.),Business Ethics: Research Issues and Empirical Studies(JAI Press Inc., Greenwich, Connecticut), pp. 77–97). Testing the model on a sample of Danish firms, this study demonstrates that the empirical model as suggested by Victor and Cullen is much stronger than suggested by previous research. Based on a confirmatory factor model, the results of this study suggest a revised ethical structure. Especially a sixth dimension – own interest – is separated from the original instrumental dimension. Further, this study suggests that the ethical-climate model can be enhanced with the dimension of autonomy deriving from Koys and DeCotiis’ (1991,Human Relations44(3), 265–285.) dimensional psychological climate instrument.

Keywords

autonomy, confirmatory factor analysis, covariance modeling, ethics, ethical climate

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