IOSR Journal Of Humanities And Social Science
(IOSR-JHSS) Volume 24, Issue 4, Ser. 3 (April. 2019) 33-39
e-ISSN: 2279-0837, p-ISSN: 2279-0845.
www.iosrjournals.org
Impact of Work Ethics on QWL, Productivity and Corporate
Image of an Organization
Mrs Puja kumari1, Dr Mili Dutta2
1
(Department of Management ,Research Scholar,Birla Institute of Technology,Mesra,Offcampus Lalpur, India) 2
(Department of Management, Assistant Professor,Birla institute of Technology, Mesra,Offcampus-Lalpur ,India
Corresponding Author:Dr Mili Dutta
Abstract: Ethics is the difference between right and wrong. Work ethics is desirable factor in any organization.
It is a cultural norm that advocates that employees are personally accountable and responsible for the work they
perform. The main purpose of this research paper is to find out the relationship between work ethics and Quality
of work life (QWL), Corporate Image and productivity in the organization. For the purpose of this study the data
were obtained from employees currently working in multinational company (IT company) in Bengaluru. The
paper discussed how work ethics is related to three key variables, QWL, Productivity and Corporate Image. The
study would help business persons and managers to anticipate emerging ethical issues which are related to
employee‟s job performance and to manage their day-to-day life.
Keywords: Work Ethics, Organization, Quality Of work Life, productivity, Corporate Image.
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Date of Submission: 24-03-2019 Date of acceptance: 08-04-2019
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I. INTRODUCTION
A major changes could be seen in today‟s business world is exertion of ethical and spiritual values in
the work place. Now a day, managers acknowledge and accept the importance and need of ethical or spiritual
working environment at work place and also in society for the effective performance (Mehta & Joshi, 2010).
Proper execution of ethics in the society and work place, not only motivates its employees but also have
considerable impact on elements linked with it (Palchoudhary, 2016). Goodwill and positive attitude are required
to the survival of the organization for long time. Unethical practices and wastage of resources has negative
impact on the productivity and its image. That‟s why ethical norms much needed to opt by both employer and
employees for the success of the organization and for own development (Palchoudhary, 2016). In past few years,
India has been witnessed of the ethical failure in all dimension, it could be seen in the form of increasing the
corruption related cases in all level. Transparency International, (2018) publishes its annual Report in every year
in which level of corruption measured by Corruption Perception Index (CPI). The index ranks 180 countries and
territories by their perceived level of public sector corruption in the scale of 0 to 100; where 0 stands for highly
corrupt and 100 is clean or not corrupts. Survey report of 2017 shows that two-third countries score below 50,
India scored 40 and ranked 81 among 180 countries. As compared to year 2016, score was same (40) but ranking
risen from 79 to 80. Reports also draw attention about the remarks given to India and other Asia-Pacific
countries are among the “worst regional offenders” in terms of human right violation and other matters related to
ethical misconduct. It could be seen that, one of the main reasons of corporate fraud or unethical practices is
decision based on the economic consideration in work (Rao, 2014). This is high time for all, individual, business
and government to pay attention to find the solution of this current situation.
Thus, in this study, an attempt is made to understand the impact of work ethics on employee‟s
performance and their outcomes in the organization. Quality of work life, productivity and good corporate image
are essential and fundamental component for the survival and growth of an organization.This study investigated
the impact of work ethics in organisational prevalent variables such as; quality of work life (QWL), productivity
and corporate image.
II. CONCEPT OF ETHICS AND WORK ETHICS:
According to Institute of Business Ethics (2005), “Ethics start where law ends” further adds, ethics is
not about the right and wrong, but what is acceptable behavior based on the core values of society in general and
an organization in particular (Webley & Dryden, 2005, pp.12). Ethics is a branch of Philosophy that involves
with defining „morality‟ (Halis, Akova & Tagraf, 2007) by guiding what is right and wrong, or set a standard of
DOI: 10.9790/0837-2404033339 www.iosrjournals.org 33 |Page
Impact of Work Ethics on QWL, Productivity and Corporate Image of an Organization
behavior which should be followed by the people ( Kovacs, 1987). Manuel G. Velasqueez defined that, "The
discipline that examine one's moral standard of a society to evaluate their reasonableness and their implications
for one's life is referred as ethics ". The term work ethics considered as an area of „Applied Ethics‟ (Mayowa,
Samuel,Taiwo & Kayode, 2015). Work ethics is a commitment to the value and importance of hard work among
potential employee and it is related with positive work attitude having moral values and norms (Brauchle &
Azam, 2004). Organization or work ethics also provides general guideline of the set of rules and regulation based
on some standard for effective decision making process (Mayowa et al., 2015). It is not only focused into
development and success of individuals but also on the collective mindset of a nation or society which is looking
towards the grasping new opportunity (Ali, 2014). Considerably, work ethics is a cultural norm that states in
favor of being personally accountable and responsible for the work that one does and based on a belief that work
has intrinsic value to the individual and followed by the each level of the employee working in the organization
(Brauchle & Azam, 2004).
III. ETHICAL CODES AND ETHICAL TRAINING:
Ethical codes play a significant role in developing ethical environment at work place. In recent
definition, ethical codes are written document, consists of policies which is based on ethically driven standards,
formulated to guide the behaviors of the employee and the organization as a whole. In addition to, basic driven
forces to develop the ethical codes are external environment of the business, public authority, people and
customers to act in accordance with an awareness of responsibility (Halis et al., 2007). A study conducted by
Valentine & Barnette (2003) highlights the importance of awareness of ethical codes in the organization which
generate corporate ethical values among the employees. Many studies also state that ethical values among
employees leads them to organization commitment (Salahudin, Alwi, Baharuddin & Halimat, 2016). Many
organizations provide guidelines to their employees, defining expected behavior and decision making process
should perform at the work place considering ethical concern. That is known as „Code of conduct‟ or „Code of
ethics‟; it is obligatory to everyone (IBE, 2005, pp.12). Ethical training and awareness program might be a
technique to convey the members of the organization about ethical code of conduct. Remarkably, organization
must ensure that ethical code of conduct must be fairly implemented and equally followed by all employees in
the organization (Palchoudhary, 2016).
III. Objective of the study:
1. To find out the relationship between Work ethics and quality of work life (QWL) for employee. 2.
. To study
To understand the relationship between work Ethics and the productivity of an organisation. 3
the role of Ethics in creation of positive corporate image.
IV. LITERATURE REVIEW
Relation between Work Ethics and QWL
Quality of work life can be defined as, “QWL as employee satisfaction with a variety of needs through
resources, activities, and outcomes stemming from participation in the workplace” (Sirgy, Efraty, Siegel, & Lee,
2001). Many researches emphasize that QWL comes from the job satisfaction, work commitment, job
performance and lower attrition rate of the employee at work place (Kanten & Sadullah, 2012). Noor &
Abdullah, (2011) in their study said, quality of work life can be recognized where employees are satisfied
towards their performance, which is responsible factor for employee retention and their turnover. Job satisfaction
is as the „indicator‟ for quality of work life (Sirgy et al., 2001). As per the study performed by Marta,
Singhapakdi, Lee, Sirgy, Koonmee, Virakul, 2013), Quality of work life has positive impact on organization,
society and as well as in the employee‟s personal life. A satisfied employee will definitely feel positive towards
their work and family. Quality of work life is achieved in the organization when its employees are able to satisfy
their personal needs while achieving organizational objectives (Aswathappa, 2008). QWL and employee
satisfaction level are related with Maslow‟s need of hierarchy at different stages (Marta et al., 2011). Study
shows that interrelation between Institutionalization of ethics and quality of work life plays significant role in the
development of attributes such as job satisfaction, work commitment and creating strong team spirit among
employees working in the organization (Torlak, Tiltay, Ozkara &Dogan, 2013). Here, institutionalization of
ethics refers to involvement of work ethics in decision making process whether it is involved directly or
indirectly. The quality of work life related to employees as positive perception towards their work and
fulfillment of employee‟s meaningful desire by the organization comprises the quality of work life (Torlak, et.
al., 2013). Work ethics and quality of work life interrelated to each other in which ethics works as influential
factor for QWL and QWL is responsible for enhancing the employee‟s job performance (Shaw, 2005).
DOI: 10.9790/0837-2404033339 www.iosrjournals.org 34 |Page
Impact of Work Ethics on QWL, Productivity and Corporate Image of an Organization
Relation Between Ethics and productivity:
Many business researches and studies are conducted to find out the key variables to increase the
productivity in an organization (Mayowa et al., 2015). Employee‟s perceived outcomes such as performance
satisfaction, job commitment and overall performance comes when organisation have proper ethical environment
(Kim & Miller, 2008). Most of the organization has their written ethical policy, which provides general guideline
for the employee to perform task, based on moral values. Ethical practices performed by individual and company
have great impact on the productivity of the organisation (Palchoudhary, 2016). Human factor considered as
above all the factors such as machine, material, methods etc. because utilization of all resources depends upon
the decision making capability of human being (Sharifi, 2002). Meanwhile, the ultimate goal of any organisation
is to attain maximum productivity. Now, the companies are more responsible for creating the ethical
environment. Researches prove that those companies which follow fair code of conduct and fulfil all the
responsibilities towards the society as well as for their employee producing highest quality of workforce. Ethical
environment not only motivates the employee but also leads to organisation and individual to achieve the
maximum productivity. It has been seen that motivated employees have greater level of job satisfaction and
commitment (Palchoudhary, 2016). Organisational ethics comprised of set of rules and regulations which can be
used by top level authority to develop effective decision making ability (Mayowa et al, 2015). Mayowa et al., in
their study in Nigerian University finds the relationship between work ethics and employee level productivity. It
was observed that, there was no significant role played by the Organizational Ethics towards enhancing the
productivity. But it is suggested that, proper supervision and reward for their ethical attitudes at workplace by the
management could generate employee‟s inclination towards the work ethics. Equal and fair treatment of
employee no discrimination on the basis of any criteria of employees by the management, creates great level of
satisfaction among them. A satisfied or happy employee further turns to be a productive employee for the
organization (Palchoudhary, 2016).
Relation Between Corporate Image and Work Ethics:
Company‟s identity recognized by its business strategy, moral value, organization culture and its
structure. The actual identity of a corporation is described as current attributes as shaped by corporate ownership,
leadership and performance. „Identity‟ is made by the perception of other people depending upon how
corporation act or conduct towards other. It can be defined as “Corporate Identity as the signature that runs
through the core of all a corporation does and communicates” (Fukukawa, Balmer & Gray, 2007). It can be used
as a tool to gain competitive advantage in which customer make purchase and investment decisions concerning
with corporate image (Melewar, Karosmanglu & Paterson, 2005). It seems to be overall representation of the
organization in front of different stakeholders (Kleyn, Abratt, Chipp, Goldman, 2012). Ethical dimension
integrates with corporate identity form the concept of „corporate ethical identity‟. Corporate ethical identity
(CEI) can be defined as „„the set of behaviors, communications, and stances that are representative of an
organizations ethical attitudes and beliefs‟‟
The main purpose behind the image construction of the organization is to attract potential stakeholders
or clients. Company‟s identity could be understand and distinguished by different business strategies followed
by the organization, embracement of ethical values, culture and philosophy. In 2001, Gray and Balmer
introduced the term “Ethical Identity” by arguing the area related to business ethics and corporate social
responsibility. Ethical image is not viewed only for the marketing dimension of the organisation, its implication
is also needed in managerial level function or in major corporate level activities. Strong corporate ethical identity
leads to generate satisfaction among different stakeholders linked with the organization. Stakeholder‟s
perception towards organization positive image results stakeholders satisfaction and sound financial strength of
the company (Berrone, Surroca, Tribo, 2005). It is proved that maintaining ethical corporate identity is beneficial
for company and their business significantly (Mare, 2017).
V. RESEARCH HYPOTHESES
H1: There is a positive relation between work ethics and quality of work life (QWL).
H2: Work ethics have significant effect on the productivity of an organization.
H3: Work ethics helps in creating positive corporate image.
VI. METHODOLOGY
The principal focus of the research was to analyse the relationship between work ethics and three key
variables, Quality of Work life, Productivity and Corporate Image. A descriptive and empirical study was
undertaken to understand the various aspects of organisational stress. Survey method using questionnaire was
adopted to collect the opinion of employees working in IT sector. Survey questionnaire was designed to provide
details about their organization culture and values, including acceptance of ethical values and its impact on the
organizations activities, in which respondents could chose multiple categories. The category ranges from Never
DOI: 10.9790/0837-2404033339 www.iosrjournals.org 35 |Page
Impact of Work Ethics on QWL, Productivity and Corporate Image of an Organization
to Every time; all items are rated on a five-point Likert-type scale (1=never to 5= Every time). The population of
the study consists of randomly selected full-time employees working in IT sector in Bengaluru (India). The
statistical analysis has been done using SPSS 20.0. Mean, standard deviations, Pearson correlation and one-way
ANOVA (two tailed) test were used to analyse the response.
VII. FINDINGS AND ANALYSIS:
The sample size of employees was 85, with a mean age of 31.54 (S.D. = 4.6536) and a minimum and
maximum age of 24 and 45 years respectively. The sample had a gender distribution of 74.1% male and 25.9%
of female.
Table 1: Characteristics of respondents by Gender:
Number Gender Frequency Mean S.D.
1. Male 63
2. Female 22
Total 85 1.2599 0.44059
Table 2: Characteristics of respondents by Age:
Number Ages Frequency Mean S.D. 1. below 25 02
2. 25-30 30
3. 30-35 38
4. 35-40 07
5. 40 or over 08
Total 85 31.5412 4.65360
Table 3: Characteristics of respondents by Work Experience
SL. No. Work Experience Frequency Mean Standard Deviation 1. 5 or under 22
2. 5-10 39
3. 10-15 17
4. 15 or above 07
Total 85 4.6530 31.5412
Table 4: characteristics of respondents by Designation
SL. No. Designation Frequency Percentage
1. 2. 3. Sr. Lead staff 06 32 47 55.30%
Sr. Staff /Manager Engineer 07.06% 37.64%
Total 85 100%
Hypotheses Testing:
Hypothesis 1: There is a positive relation between Quality of work life and work ethics.
H0 : There is no relationship between quality of work life (QWL) and work ethics. HA :
A relationship between quality of work life (QWL) and work ethics.
Kind of test Variable 1 Variable 2 Sample size The Pearson Test Quality of work life
correlation coefficient Work ethics 85 0.416 0.002
The
significance level
Based on the above table, since significance level of the correlation test is less than 0.05, therefore, null
hypotheses is rejected and alternate hypothesis is accepted. Thus, there is a significant relation between two
variables i.e., work ethics and quality of work life (QWL).
Hypothesis 2: Work ethics have significant effect on the productivity of an organization.
H0: There is no significant effect of work ethics on the productivity of an organization.
DOI: 10.9790/0837-2404033339 www.iosrjournals.org 36 |Page
Impact of Work Ethics on QWL, Productivity and Corporate Image of an Organization
correlation coefficient
H : work ethics have significant effect on the The significance level
A
productivity of an organization.
Kind of test Variable 1 Variable 2 Sample size The
Pearson Test Productivity Work ethics 85 0.104 o.468
Based on the above table, since significance level of the correlation test is greater than 0.05, therefore, a
null hypothesis is accepted and alternate hypothesis is rejected. It can be said that there is a no significant effect
of work ethics on the productivity of the organization.
Hypothesis 3: work ethics helps in creation of positive corporate image.
H0: Work ethics does not help in creation of positive corporate image.
HA: Work ethics helps in creation of positive corporate image.
Kind of test Variable 1 Variable 2 Sample size The Pearson Test Corporate image
correlation coefficient Work ethics 85 0.481 0.000
The significance level
Based on the above table, since significance level of the correlation test is less than 0.05, therefore, null
hypotheses is rejected and alternate hypothesis is accepted. It can be said that there is a significant relation
between two variables i.e., work ethics and corporate image.
In the study we found that 27.1% respondent said there organization has no ethical policy, 41.2% said
they are not aware about organization ethical policy whereas 31.8% said „yes‟. The study reveals that most of
the employees working in this organization are not aware about written ethical policy. 61.2% of the respondents
feel that they don‟t require ethical training in the org. however, 38.8% do feel the need for ethical training.
52.9% respondent personally follow ethical practices which shows that people want to follow ethics in their
regular assignments. 54.1% of the respondents said other employees working in the organization follow ethical
norms occasionally. 44.7% do agree that ethical behavior in the organization is being appreciated by
management. When the employees are being asked regarding unbiased behavior, most of them agree to the fact
that the management is unbiased towards its employees. The employees are free to report regarding any
unethical behavior to the management. 47.1% of the respondents agree that almost every time the organization
takes appropriate measures to curb unethical practices in the organization. Most of the employees agree that
ethical norms have a great contribution in creating a better work environment which is a desirable factor towards
quality of work life. There is a significant contribution of ethical practices towards enhancing the level of
motivation among the employees, 85% of the respondents agrees that there is a significant relationship between
ethical practices being observed in organization and the level of motivation to work. 61.2% of the respondent
feels that fair ethical practice helps in creation of a positive corporate image. 62.4% of the respondent feels that
work ethics helps in rational decision making. 71.8% of the respondent does find that a positive ethical work
environment helps them to perform well in the organization.
VIII. CONCLUSION
The study brings to us the influence of work ethics on enhancing the quality of work life, increasing the
productivity and building the corporate image. The result based on the correlation data analysis and hypothesis
testing, it was found that there is a positive and significant relationship of work ethics on quality of work life
(QWL) and corporate image. But it was also found that there is no positive impact of work ethics on increasing
the productivity of an organization. Considering the fact that major components of quality of work life such as
equal and fair treatment of employee, protection of individual right and better working environment are
positively related with the organizational ethics. Key factors related to creating good corporate image are
unbiased management towards the employees, free reporting and proper punishment against any kind of
misconduct in the organization. This study help us to find that that ethical practices in the workplace plays a
significant role in establishing a strong relationship with quality of work life and portraying ethical corporate
image. Work ethics is pre-requisite for every organization, towards creating a healthy work environment. By
Proper implementation of ethical practices in workplace and also in their personal life employees can be
motivated towards performance and productivity. Work ethics is thus very important in every organization as it
has positive impact on quality of work life and creation of good corporate image.
DOI: 10.9790/0837-2404033339 www.iosrjournals.org 37 |Page
Impact of Work Ethics on QWL, Productivity and Corporate Image of an Organization
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IOSR Journal Of Humanities And Social Science (IOSR-JHSS) is UGC approved Journal with
Sl. No. 5070, Journal no. 49323.
Dr Mili Dutta " Impact of Work Ethics on QWL, Productivity and Corporate Image of an
Organization." IOSR Journal of Humanities and Social Science (IOSR-JHSS). vol. 24 no. 04,
2019, pp. 33-39.
DOI: 10.9790/0837-2404033339 www.iosrjournals.org 39 |Page
