Organizational Virtue: An Empirical Study of Customers and Employees

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Table of Contents

Introduction
Initial Analysis: Employee Data Correlation
Initial Analysis: Customer Data Correlations
Discussion of the Main Findings: Satisfaction
Discussion of the Main Findings: Identification and Distinctiveness
Conclusion
Reference

Introduction

The universal ethical dimension of human practice is deeply embedded in the principles of morality and core human virtues. Within the business environment of the particular organization, the concept of virtues implies the organizational structure based on a strong moral compass, a compelling mission, culture, and leadership. The research conducted by Chun (2017) represents the leading empirical study regarding organizational virtue from the perspective of internal and external stakeholders. Moreover, the study examines the linkage between such moralities and organizational outcomes in terms of “identification, satisfaction, and distinctiveness” (Chun, 2017, p. 869). The main results promoted a discussion regarding the ways the companies might establish encouraging and supportive stakeholder perceptions of pivotal dimensions of organizational virtue, focused on shaping their “identification and differentiation in the marketplace” (Chun, 2017, p. 871).

Initial Analysis: Employee Data Correlation

The initial results of the study were based on the examination of the relationships between the main organizational virtues and other variables through correlation analysis. The core virtues applied in the research comprised empathy, warmth, integrity, conscientiousness, courage, zeal, distinctiveness, satisfaction, and identification. According to the results, all the dimensions of organizational virtue are considerably linked to each of the three dependent variables for both employee and customer data. To be more specific, employee satisfaction is strongly connected with integrity and conscientiousness. Employee identification is most vividly associated with integrity. Moreover, employee distinctiveness was led by three determining factors, such as zeal, conscientiousness, and integrity. However, the most important virtue for employees is integrity, as it guides all three strategic variables.

Initial Analysis: Customer Data Correlations

Customer data correlations were examined with the same fundamental organizational virtues. With this said, customer satisfaction and distinctiveness are strongly linked to integrity, followed by empathy. At the same time, these organizational virtues are the least closely associated with courage. In addition, customer identification demonstrated the most pivotal correlation with empathy and the least close tie with conscientiousness. Another virtue, empathy, revealed a fundamental role within all three variables, particularly for customer identification. More specifically, integrity was proved as the most defining and influential virtue for employee identification.

Discussion of the Main Findings: Satisfaction

The study conducted by Chun (2017) examined the concept of organizational virtue, which helped clarify the variation in satisfaction, identification, and distinctiveness concerning the views of two critical stakeholder groups, including customers and employees. Managers are primarily responsible for facilitating a differentiated organizational outlook by promoting corporate social responsibility (CSR). However, Chun’s (2017) research argues that organizational virtue enhances the level of satisfaction among employees and customers, which, in turn, promotes distinctiveness. Moreover, the most important findings regarding the satisfaction variable imply that organizational virtue can be applied strategically as a distinguishing variable within a marketplace only when it leads to stakeholder satisfaction.

Discussion of the Main Findings: Identification and Distinctiveness

Based on the model testing, there is a causal relationship shaping the ways of linking the identification, such as virtuous character → identification and identification → satisfaction. These are the strongest links around identification. To be more specific, by positively impacting the employee’s and customer’s emotional attachment to the organization, it is possible to create a pivotal aspect that will promote satisfaction and ultimately differentiate the company from other competitors. The research results seem disturbing for the organizations implementing professional conduct grounded in ethical ethos. The findings state that the best way to achieve differentiation is an indirect approach through organizational virtue when it facilitates customers’ and employees’ satisfaction. As such, the satisfaction variable is led by emotional attachment to the firm.

Conclusion

To conclude, the creation of the organization’s distinctiveness, including the unique identity and distinctive personality of the firm, tends to lead the organization towards a competitive advantage. It can be attained by advancing two central virtuous characteristics, such as integrity and empathy. Integrity stimulates employees’ identification with the company, while empathy encourages a similar sense of identification in customers. Subsequently, this will considerably impact satisfaction and, thus, will ultimately differentiate the organization. Furthermore, the implication of the study’s main findings establishes its critical contribution to future research. The research results illustrate that the examined organizational virtues need to be aligned with the internal and external stakeholders’ satisfaction in order to be perceived as a strategic differentiator in the market. The empirical findings serve as a warning sign to the global organizations concentrating on building a differentiated image based on CSR aiming for increased satisfaction. With this said, the study results pose a substantial effect on virtue ethics and their significant interconnection with firm strategy.

Reference

Chun, R. (2017). Organizational Virtue and Performance: An Empirical Study of Customers and Employees. Journal of Business Ethics, 146(4), 869–881. doi:10.2307/45022355

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