El'fred Boo

The Link Between Organizational Ethics and Job Satisfaction: A Study of Managers in Singapore

Based on a survey of 237 managers in Singapore, three measures of organizational ethics (namely, top management support for ethical behavior, the organizations ethical climate, and the association between ethical behavior and career success) are found to be associated with job satisfaction. The link between organizational ethics and job satisfaction is argued from Viswesvaran et al.s (1998) organizational justice and cognitive dissonance theories. The findings imply that organizational leaders can favorably influence organizational outcomes by engaging in, supporting and rewarding ethical behavior.

Organisational ethics and employee satisfaction and commitment

This study examines the relationship between organisational ethics and organisational outcomes based on the justice theory and cognitive dissonance theory. The sample data are derived from a questionnaire survey of 237 managers in Singapore. Results obtained from decision trees indicate significant and positive links between ethical culture constructs (i.e. top management support for ethical behaviour and the association between ethical behaviour and career success within the organisation) and job satisfaction. Further, there is a significant and positive link between job satisfaction and organisational commitment. Also, for different levels of job satisfaction, particular aspects of organisational ethics are associated with organisational commitment. The results suggest that organisational leaders can use organisational ethics as a means to generate favourable organisational outcomes.

THE INFLUENCE OF ORGANIZATIONAL AND CODE-SUPPORTING VARIABLES ON THE EFFECTIVENESS OF A CODE OF ETHICS

Prior findings on the effectiveness of the codeof ethics in promoting ethical behavior aremixed. Perhaps more is required to promoteethical behavior than the mere existence of thecode within the organization. The presentstudy proposes, first, that the extent to whichthe organization communicates, enforces andencourages reference to the code is importantto achieving the desired results. Second,organizational ethics variables (namely, topmanagement support for ethical behavior, theassociation between ethical behavior and careersuccess, and organizational ethical climate)can have a significant influence on ethicalbehavior of organizations over and above theimpact of the implementation and use of thecode. Both propositions are supported based onregression analyses of data from a survey of237 managers, the majority of whom hold middleand top level positions within organizations.

The impact of non‐mandatory corporate governance on auditors’ client acceptance, risk and planning judgments

Abstract We examine the effect of non‐mandatory corporate governance practices on a comprehensive set of audit judgments.1 We provide initial evidence on how auditors respond to corporate governance in an institutional environment where corporate governance is not mandated by law. Based on the agency and resource dependence theories, we hypothesise associations between corporate governance and auditors’ judgments relating to client acceptance, risk assessments, and the extent and timing of substantive testing. Sixty Big 4 audit managers from Singapore are randomly assigned to one of three experimental conditions comprising weak, moderate and strong corporate governance. Our results show auditors make more favourable client acceptance judgments when corporate governance is stronger. Clients with stronger corporate governance are assessed as having lower control environment risk. After controlling for control environment risk, we find that stronger corporate governance increases auditors’ reliance on the clients internal controls and reduces the extent of substantive tests. When corporate governance is stronger, we observe that auditors conduct more substantive testing during the interim period compared to the year‐end. Our findings suggest that audit strategies are responsive to the strength of a clients corporate governance.