The relationship between corporate ethical culture and employees’ ethical sensitivity: a study of mortgage brokerage firms

Purpose The purpose of this study is to provide empirical evidence of the relationship between corporate actions and the employees’ ethical sensitivity. Studies conducted so far yield conflicting results. Design/methodology/approach The study conducted simultaneously examined the ethical culture of company and ethical sensitivity of their employees. Ethical culture was examined using an adapted Corporate Ethical Virtues Model and ethical sensitivity was determined based on the Defining Issues Test. The survey was conducted among employees of the largest mortgage brokerage firms operating in Poland. The results were subjected to a range of statistical analyses. Findings Ethical sensitivity is positively correlated with ethical culture at the individual level. However, between-firm differentiation in both ethical culture and ethical sensitivity was limited. The specific nature of the profession under study may play a significant role in understanding such results. Practical implications Ethical culture may play a smaller role in the process of shaping proper attitudes if employees’ work involves high autonomy and commissions that depend on the quality of the relationships formed with customers. A good understanding of the specific nature of a given profession can be key for managers in the process of creating ethical principles within the company and the employee team. Originality/value To the best of the authors’ knowledge, this is the first study to obtain primary data regarding both the ethical culture of companies and the ethical sensitivity of their employees, providing a new perspective on assessing the relationship between company actions and ethical decision-making by employees.