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The Behavior of Organization in Economic Crisis: Integration, Interpretation, and Research Development.

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Title: The Behavior of Organization in Economic Crisis: Integration, Interpretation, and Research Development.
Authors: Potocan, Vojko1 (AUTHOR) vojko.potocan@um.si, Nedelko, Zlatko1 (AUTHOR)
Source: Journal of Business Ethics. Dec2021, Vol. 174 Issue 4, p805-823. 19p. 8 Charts.
Subject Terms: Organizational behavior, Structural equation modeling, Organizational growth, Recessions, COVID-19
Abstract: We investigated the significance of an economic crisis for organizations' ethical behavior, employees' unethical behavior, and association. To capture the effect of the "2008' World economic crisis," we compared the behaviors of organizations and employees' unethical behavior during a crisis with their behavior in more favorable circumstances before and after the crisis. We used structural equation modeling to analyze answers collected from 2024 employees in Slovenian organizations between 2006 and 2016. The results showed significant growth of organizational engagement in ethical behavior, despite the crisis in the middle of the observed period. The employees' unethical behavior was significantly less acceptable in crisis compared to before the crisis, while after the crisis, its acceptability increased again, despite not significant. The aggregate sample revealed a significantly negative influence of employee's unethical behavior on organizations' ethical behavior that was not significantly different across the considered periods. The research suggests the need to manage the organization's ethical behavior in times of economic downturn, like in the present COVID 19. Additionally, managers need to devote more attention to prevent employees' unethical behavior and its influence on organizations' ethical behavior. [ABSTRACT FROM AUTHOR]
Copyright of Journal of Business Ethics is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Education Research Complete
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  Data: The Behavior of Organization in Economic Crisis: Integration, Interpretation, and Research Development.
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  Data: <searchLink fieldCode="AR" term="%22Potocan%2C+Vojko%22">Potocan, Vojko</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> vojko.potocan@um.si</i><br /><searchLink fieldCode="AR" term="%22Nedelko%2C+Zlatko%22">Nedelko, Zlatko</searchLink><relatesTo>1</relatesTo> (AUTHOR)
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  Data: <searchLink fieldCode="JN" term="%22Journal+of+Business+Ethics%22">Journal of Business Ethics</searchLink>. Dec2021, Vol. 174 Issue 4, p805-823. 19p. 8 Charts.
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  Data: <searchLink fieldCode="DE" term="%22Organizational+behavior%22">Organizational behavior</searchLink><br /><searchLink fieldCode="DE" term="%22Structural+equation+modeling%22">Structural equation modeling</searchLink><br /><searchLink fieldCode="DE" term="%22Organizational+growth%22">Organizational growth</searchLink><br /><searchLink fieldCode="DE" term="%22Recessions%22">Recessions</searchLink><br /><searchLink fieldCode="DE" term="%22COVID-19%22">COVID-19</searchLink>
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  Label: Abstract
  Group: Ab
  Data: We investigated the significance of an economic crisis for organizations' ethical behavior, employees' unethical behavior, and association. To capture the effect of the "2008' World economic crisis," we compared the behaviors of organizations and employees' unethical behavior during a crisis with their behavior in more favorable circumstances before and after the crisis. We used structural equation modeling to analyze answers collected from 2024 employees in Slovenian organizations between 2006 and 2016. The results showed significant growth of organizational engagement in ethical behavior, despite the crisis in the middle of the observed period. The employees' unethical behavior was significantly less acceptable in crisis compared to before the crisis, while after the crisis, its acceptability increased again, despite not significant. The aggregate sample revealed a significantly negative influence of employee's unethical behavior on organizations' ethical behavior that was not significantly different across the considered periods. The research suggests the need to manage the organization's ethical behavior in times of economic downturn, like in the present COVID 19. Additionally, managers need to devote more attention to prevent employees' unethical behavior and its influence on organizations' ethical behavior. [ABSTRACT FROM AUTHOR]
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  Data: <i>Copyright of Journal of Business Ethics is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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        Text: English
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      – SubjectFull: Structural equation modeling
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      – SubjectFull: Organizational growth
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      – SubjectFull: Recessions
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              Text: Dec2021
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