Construct Validity of Unobtrusive Measures of Organizational Ethical Climates

Abstract

Prior studies have examined the relationship between organizational ethical climates and an array of work-related attitudes and behaviors. However, current research is hampered by the lack of knowledge on how ethical climates relate to organizational outcomes. To advance research on this topic, we developed three unobtrusive measures of organizational ethical climates based on words used in annual letters to shareholders of Fortune 500 companies and examine how organizational ethical climates relate to corporate reputation and a readability index. Results reveal that our measures of organizational ethical climates align with well-known reputation measures as well as the overall readability of letters to shareholders. Our theory and evidence open a novel path for both researchers and practitioners to benefit from an initial validation of measures of organizational ethical climates in studying corporate reputation. © Springer Nature Limited 2020