The conception of organizational integrity: A derivation from the individual level using a virtue‐based approach

Abstract

This paper extends previous attempts at understanding the nature of organizational integrity and its increasingly important role for companies which, after all, bear a moral and societal responsibility. Interpretations of organizational integrity in business ethics literature incorporate aspects ranging from the behavior of managers and employees to corporate structures and incentive systems. We argue that virtue ethics builds an indispensable framework for understanding the origin of the concept of integrity and transfer these findings to an organizational level. Hence, we first define organizational integrity, and second operationalize it in a closed three‐step process, consisting of morally sound corporate commitments, their transparent institutionalization within the company, and their implementation into actions. We consider the main goal of organizational integrity to be of a preventative investment nature. Organizational integrity is a company investment that translates into avoiding fines for potential violations of the law or ethical missteps, as well as an investment in the company’s reputation. In turn, organizational integrity can protect a company from disruptions that can threaten its existence. Defining and operationalizing the concept of organizational integrity provides the foundation for future scientific research and the basis for developing practical guidance for organizations and managers.

New Paradigm of Indonesian Islamic Education: Analysis of Changes in the Relations of Islamic Education Institutions with Post-Reform Political Power

“…Etymologically, an institution is the origin of something, a reference that gives shape to another, an agency or organization that aims to carry out scientific research or do something business. From the above understanding, it can be understood that the institution contains two meanings, namely: (1) physical, material, and concrete meaning; (2) non-physical, nonmaterial, and abstract understanding (Fuerst & Luetge, 2021).…”

Toward organizational integrity measurement: Developing a theoretical model of organizational integrity

“…Finally, organizational integrity is in need of desirable moral principles like legal compliance, honesty, and respect. (Fuerst & Luetge, 2021, p. 6)…”

“…Moreover, Fuerst and Luetge (2021) argued that organizational integrity is a basic premise for corporate success. Integrity‐based actions result (among others) in fundamental trust that is essential for a healthy and sustainably profitable company in the long run.…”

“…Integrity‐based actions result (among others) in fundamental trust that is essential for a healthy and sustainably profitable company in the long run. Ethical risks ultimately become economic ones (Fuerst & Luetge, 2021). An obvious question that arises—at least from a board of management perspective in its oversight role—is how organizational integrity can become an integral part of corporate governance.…”

“…An obvious question that arises—at least from a board of management perspective in its oversight role—is how organizational integrity can become an integral part of corporate governance. Recent research approaches show the potential of integrity‐based governance models to reduce corporate risks and to improve business performance (Arjoon, 2017; Cameron et al, 2004; Fuerst & Luetge, 2021; Hajduk & Schank, 2017; Laufer, 2006; Menzel, 2005). Indeed, developments in practice indicate that integrity‐based governance models are becoming a vital part of corporate risk management as related research gains attention (e.g., Arjoon, 2017; Brink, 2017; Calderón et al, 2018).…”