Can an ethical work climate influence payment discipline?

Abstract

Abstract:Purpose: All European companies are faced with the lack of payment discipline, which often affects even their survival. One of the key reasons for the lack of payment discipline is poor business ethics, which is primarily introduced with the subject of ethical climate in the literature.For this reason, we wanted to determine whether a company's ethical climate influences its payment discipline.Design/methodology/approach: In the research, we used Arnaud's measurement instrument (2010) that helped us to identify six dimensions of ethical climate. The data about a company's ethical climate were later compared with the data about its payment discipline, calculated using the Dun & Bradstreet rating agency methodology. We included in the sample 273 Slovenian companies, which represented 9.1% of all companies invited to take part in the survey (2978 Slovenian enterprises with 10 or more employees). Findings:We established that (among the six dimensions of the ethical climate) the dimension "moral sensitivity -the lack of norms of empathetic concern" had statistically significant influence on the average delay of payment, and the more significant for the company the lack of norms of empathetic concern was, the longer the delay of the payment to suppliers would be.Our conclusion is that the appropriate forms of the incorporation of training and education on ethical subjects into business studies may increase the payment discipline of companies.-73-Journal of Industrial Engineering and Management -http://dx

Analysis of Employee Performance in The Department of Education and Culture, Lubuklinggau City

“…According to Salamon and Mesko (2016), discipline is a person's awareness and willingness to obey all organizational rules and prevailing social norms. Discipline must be enforced in an organization, without discipline, it is difficult for organization to achieve their goals.…”

Ethical Climates in Organizations: A Review and Research Agenda

“…For example, Stachowicz-Stanusch and Simha (2013) found that whereas law-and-code climates were negatively related to organizational corruption, caring and instrumental climates were positively related to it. Research has also established that ethical climates exert significant effects on executive directors’ perceptions of statutory accountability demands, ability to identify internal and/or external downward accountability mechanisms in non-profit organizations (Laratta, 2011), payment discipline (Salamon & Mesko, 2016), and reduce managers’ propensity to create budgetary slack in public organizations (Ozer & Yilmaz, 2011).…”

Employee Retention and Enhancement of Performance by Motivation and Work Discipline in the Pharmacy Department in Manembo-nembo Bitung Hospital

“…The goal is to improve someone's ability to follow social rules and standards. Salamon & Mesko (2016) define discipline as an individual's awareness of and willingness to follow all organizational regulations and social norms. Discipline must be enforced in a company; without it, it will be difficult for the company to achieve its objectives.…”