Mohammad Reza Behmanesh, Mahboubeh Fatemi
Attar Institute of Higher Education, Mashhad, Iran
Cite: Behmanesh, M.R., Fatemi M. Investigating the Effect of Ethical Climate on Financial Performance Through the Mediating Variable of Ethical Behavior. J. Digit. Art Humanit., 3(1), 19-28. https://doi.org/10.33847/2712-8148.3.1_3
Abstract. In the current competitive environment, financial performance plays a vital role in evaluating an entity, and ethical climate and ethical behavior are important variables that affect financial performance. Therefore, the present study aimed to explore the effect of ethical climate on financial performance mediated by ethical behavior. The present applied research is descriptive in type. The statistical population included 234 financial managers of Toos Industrial town in Mashhad-Iran, and 116 subjects were selected for the study using a random sampling method. To collect the required data, standard questionnaires of ethical climate, ethical behavior and financial performance were used and to analyze the findings, structural equation modeling (SEM) was used. The SEM results showed that the ethical climate has a positive and significant effect on financial performance and the strength of this effect is increased when mediated by ethical behavior.
Keywords: Ethical Climate, Ethical Behavior, Financial Performance.
The present authors thank all the financial managers of the companies operating in Toos Mashhad Industrial Town and the esteemed training management of Mashhad Industrial Towns Company who contributed greatly to this research.
- Aminifard MR, Taheri Roozbehani M, Mohammadi Naeini M. (2015). Investigating the Impact of Organizational Ethics atmosphere on Financial Performance Considering the Mediating Role of Perceived Organizational Innovation (Case Study of Arak National Banks), Fifth International Conference on New Research in Accounting, Management and Economics, St. Petersburg, Russia.
- Sabzei AR, Hosseini A, Ghasemi AR. (2014). Investigating the ethical behavior of managers on the performance of employees of Qom Agricultural Bank, the third national conference on accounting and management.
- Rahimnia F, Nikkhah Azad Z. (2011). The effect of organizational ethics climate on organizational identity and the tendency to leave the service of salespeople, Ethics in Behavioral Sciences, 6 (4): 1-11.
- Abbaszadeh MR, Salehi M, Behmanesh MR. (2015). The effect of the mediating variable of ethical climate on the relationship between ethical leadership and innovation and ethical behavior of Bank Melli Mashhad employees, Ethical Research, 6 (2): 27-47.
- Rahimi H, Baharloui F. (2018). The effect of ethical atmosphere on trust in teamwork with the mediating role of ethical behavior, Organizational Behavior Studies, 7(2): 129-158.
- Zandi A, Faghani Makrani K. (2018). Investigating the Impact of Social, Environmental and Ethical Performance on the Financial Performance of Companies Listed in the Stock Exchange, Management Accounting and Auditing Knowledge, 7 (26): 145-158.
- Wang YD. (2012). Organizational ethical climate, perceived organizational support, and employee silence: A cross-level investigation. Human Relations, : 1-20.
- Yalcin N, Bayrakderaglu A, Kahraman C. (2012). Application of fuzzy multi-criteria decision making methods for financial performance evaluation of Turkish manufacturing industries. Expert Systems with Applications, 39: 350-364.
- Zhang Z. (2011). On moral hazard of construction project visual organization. Procedia Engie, 12: 156-162.
Published online 29.06.2022