Creating an Ethical Organizational Environment in Banking Svenja Nitsche Walden University
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Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2017 Creating an Ethical Organizational Environment in Banking Svenja Nitsche Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Business Administration, Management, and Operations Commons, Finance and Financial Management Commons, and the Management Sciences and Quantitative Methods Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral study by Svenja Nitsche has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Karin Mae, Committee Chairperson, Doctor of Business Administration Faculty Dr. Richard Johnson, Committee Member, Doctor of Business Administration Faculty Dr. Roger Mayer, University Reviewer, Doctor of Business Administration Faculty Chief Academic Officer Eric Riedel, Ph.D. Walden University 2017 Abstract Creating an Ethical Organizational Environment in Banking by Svenja Nitsche MA, Leeds Metropolitan University, 2012 BCom(Hons), Nelson Mandela Metropolitan University, 2010 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University April 2017 Abstract An ethical organizational environment ensures a trustworthy organization. This case study explored strategies that banking managers in the United Arab Emirates used to create an ethical organizational environment, one that emphasized the inclusion of ethical values, moral principles, and commitment to society. The target population included senior managers who created and implemented strategies to ensure employees adopted the ethical values in pursuit of an ethical environment. Ethical climate theory provided the conceptual framework for this study. Interviews with 5 managers and company documentation contributed the data for this research. Data were analyzed following inductive investigation and case description. Connecting corporate values with measurable indicators emerged as the most prominent strategy among these 5 managers. Translating “soft” value statements into “hard” performance factors allowed for the creation of an ethical environment that signaled consistent messages about appropriate behavior. Employee engagement was another prominent finding. Providing opportunities for informal interaction allowed employees to establish relationships and facilitated cross-functional collaboration. Other important strategies were related to maintaining transparency and leadership role-modeling. Implications for positive social change include the potential to regain trust in banking by providing banking managers with a guideline to create an ethical organizational environment. Creating an Ethical Organizational Environment in Banking by Svenja Nitsche MA, Leeds Metropolitan University, 2012 BCom(Hons), Nelson Mandela Metropolitan University, 2010 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University April 2017 Dedication I dedicate this doctoral study to my husband. This journey would not have been possible without your encouragement and support. Acknowledgments I thank my children for their unconditional love. You helped me to put this doctoral journey into perspective and remember the most important things in life. I thank my chair, Dr. Karin Mae, for her guidance and mentorship. I have been privileged to have you as my mentor and to be part of your team. Your support for your students is truly outstanding. I thank my second committee member, Dr. Richard Johnson, for his constructive comments. Your suggestions helped to improve the quality of my doctoral study. I thank my University Research Reviewer, Dr. Roger Mayer. Your foresight made me change the design of my doctoral study and make it feasible. I thank Dr. Judith Blando, for her suggestions and support. Table of Contents List of Tables ..................................................................................................................... iv Section 1: Foundation of the Study ......................................................................................1 Background of the Problem ...........................................................................................1 Problem Statement .........................................................................................................2 Purpose Statement ..........................................................................................................3 Nature of the Study ........................................................................................................3 Research Question .........................................................................................................5 Interview Questions .......................................................................................................5 Conceptual Framework ..................................................................................................6 Operational Definitions ..................................................................................................6 Assumptions, Limitations, and Delimitations ................................................................7 Assumptions ............................................................................................................ 7 Limitations .............................................................................................................. 8 Delimitations ........................................................................................................... 8 Significance of the Study ...............................................................................................8 Contribution to Business Practice ........................................................................... 9 Implications for Social Change ............................................................................... 9 A Review of the Professional and Academic Literature ..............................................10 Research on Corporate Sustainability ................................................................... 10 Research on Ethical Climates ............................................................................... 19 Research on Ethical Behavior ............................................................................... 27 i Research on Organizational Trust ......................................................................... 37 Transition .....................................................................................................................44 Section 2: The Project ........................................................................................................46 Purpose Statement ........................................................................................................46 Role of the Researcher .................................................................................................46 Participants ...................................................................................................................48 Research Method and Design ......................................................................................49 Research Method .................................................................................................. 49 Research Design.................................................................................................... 50 Population and Sampling .............................................................................................52 Ethical Research...........................................................................................................54 Data Collection Instruments ........................................................................................55 Data Collection Technique ..........................................................................................56 Data Organization Technique ......................................................................................58 Data Analysis ...............................................................................................................59 Reliability and Validity ................................................................................................61 Transition and Summary ..............................................................................................62 Section 3: Application to Professional Practice and Implications for Change ..................64 Introduction ..................................................................................................................64 Presentation of the Findings.........................................................................................64 Theme 1: Connecting Values with Measurable Indicators ................................... 66 Theme 2: Employee Engagement ......................................................................... 68 ii Theme 3: Transparency........................................................................................