The Effect of Ethical Management on Organizational Performance

The main purpose of this study is to examine the effect of ethical management on job performance. For the study, CEO's will, ethical management system and external ethical activity are selected as subordinate variables of ethical management. Therefore, the concrete purpose of this study are four issues: (1) to examine the effects of CEO’s will on organizational trust, (2) to examine the effect of ethical management system on organizational trust, (3) to examine the effects of external ethical activity on organizational trust, (4) to examine the effects of organizational trust on organizational performance. The sample for this empirical study is collected from 334 employees of 5 different companies executing ethical management. The results of analysis are as follows. First, there is a positive effect of CEO’s will on organizational trust. Second, there is no effect of ethical management system on organizational trust. Third, there is a positive effect of external ethical activity on organizational trust. Last, there is a positive effect of organizational trust on organizational performance. Based on the results of this study, we suggested implications for business strategies and effective alternatives for ethical management. KCI Citation Count: 4