FACTORS AFFECTING UNETHICAL BEHAVIORS OF EMPLOYEES IN CABATUAN, ISABELA

A Research Proposal

Presented to the Faculty of

CABATUAN NATIONAL HIGH SCHOOL
Senior High School Department
Cabatuan, Isabela

By

Katrina Cassandria Rillera

Kimberly Bernardo

Armie Crisostomo

Rubenson Cabonce

In partial fulfilment to the requirements in

PRACTICAL RESEARCH 2
(Accountancy, Business and Management)
2018
 Dedication

To our family,

To our Friends,

For supporting us to do our best

And achieve our dreams

To God be the Glory

The Researchers
 ACKNOWLEDGMENT

First and foremost, the researchers would like to extend their deepest gratitude to Cabatuan

National High School, the researcher’s alma mater for making the research possible and successful.

The researchers would also like to pay their regards to their Practical Research II adviser, Mrs.

Gliezel Cabaltican- Escalante for assisting and helping them giving valuable comments to finish the study.

The researchers recognized the valuable help provided by their family during the conduct of the

research.

Finally, the researchers would like to express their love to the Almighty God, who never cause in

loving, and for his continued guidance and protection.

The Researchers
 The Problem and Its Background

Background of the Study

Unethical behavior in business research has recently attracted wide attention, reaching beyond the

scientific community (Kullmann 2012).

Over the past decade, news stories about unethical behavior in the workplace have been a regular

feature in TV. The face of theses scandals, researchers have been slowly uncovering the causes of such

behavior. Usually, we think that unethical behavior is the result of poor character: bad people do bad things.

But things attachment may be profoundly inadequate. (Spiegel, 2012)

Zińczuk (2013) highlighted that companies using honesty as their best policy receive broad acclaim

and good reputation. Business ethics, being an important element in the strategy of the organization, is a

great asset for contemporary business and largely determines its success on the market. But the decisive

role in shaping the appropriate ethical attitude is determined by owners and managers, for it is ethics that is

an important foundation of corporate responsibility, as it constitutes the obligation of employers and staff act

according to the principles of legal and social norms.

According to Singh (2015) Unethical behavior of employees in the workplace not only threatens the

reputation of the affected organizations, but also has a devastating effect on these organizations’ ability to

render quality services to its customers and other stakeholders. It undermines and human relations. One of

the greatest challenges facing any organization is therefore the mismanagement of the unethical behavior

of its employees.

Boes (2015) stated that studies on the motivations behind unethical behavior show that the main

Influences are one’s moral compass, the environment one is in, and peer pressure from fellow employees.

This is important because, based on past research, this shows that if companies can change their
environment to promote more long-term goals and reduce peer pressure, there could be less unethical

behavior. With a changed environment promoting thinking in an ethical or long-term frame of mind,

businesses can reduce unethical behavior.

According to Gino (2016) Cheating, deception, organizational misconduct, and many other forms of

unethical behavior are among the greatest challenges in today’s society. As regularly highlighted by the

media, extreme cases and costly scams are common. Yet, even more frequent and pervasive are cases of

‘ordinary’ unethical behavior — unethical actions committed by people who value and care about morality

but behave unethically when faced with an opportunity to cheat.

Newman (2015) highlighted the effects of unethical behavior on business begin to tell with time –

as the line between right and wrong begins to blur. People within the organization that conduct themselves

with high standards feel helpless and annoyed with the dishonest behavior of their co-workers and or

leaders. This frustration is compounded further by the fact that the company does not take action given that

there may not be any legal implications or great financial damage .

The researchers wants to know about the behaviors of the employees in their workplace. This

made the researchers’ interest to study what are the factors affecting unethical behaviors of employees.
Statement of the Problem

This study attempts to assess the Unethical Behaviors of selected employees in Municipality of

Cabatuan, Isabela.

Specifically, the study aims to answer the following research questions:

1. What are the demographic profile of the respondents?

a) Age
b) Gender
c) Marital Status
d) Work Experience
e) Number of years in Working
2. Measures done by the employers to curtail unethical behavior.

3. What are the factors affecting unethical behavior of selected employees?

Significance of the Study

The study aims to assess the Unethical Behaviors of selected Employees in Municipality of

Cabatuan, Isabela. The result of the study will be useful for the following.

Employee. The result of the study could help the selected employees in Cabatuan, Isabela to know the

different unethical behaviors and to have a better understanding with respect to the ideas inside the

workplace.

Business Owners. The result of the study could help the business owners for them to know what to do or

the best thing to do in the workplace. It will benefits for them to know the different factors that can affect the

behaviors of the employees inside the workplace.

Students. This will shed light in their young minds when it comes on business industries and other working

environment. Also, this will help them to be prepared and equipped with the characteristics of a good

employee.

Future Researchers. This research can be used as a basis or guide for students who wants to study with

the same variable with the study conducted.

Scope and Limitations of the Study

This study focus on the Unethical Behavior among selected Employees in Municipality of

Cabatuan, Province of Isabela. The profile of the respondents that are used in the study are limited only to

their age, sex, marital status, work experience and number of years in working. All the data will be gathered

through structured questionnaire and interview with regards to their unethical behavior.

Definition of Terms

Unethical Behavior. Unethical behavior in the workplace can be defined as any action that does

not conform to the standards of conduct established by the organization. According to Labor Code Art. 34

unethical behavior is an unlawful for any individual, entity, license or holder of authority.

Employee. A person employed for wages or salary, especially at nonexecutive level. Employee is

an individual who has hired by an employer to do a specific job.

Curtail. Reduce in extent or quantity; impose a restriction on.

Literature Review
 Organizational culture is now a prevalent topic among managers, among consultants and among

academics. As a mean of distinguishes the members of one group from others, enterprise culture offers

characters to associations, gathering and people.

Spring (2015) stated in their study that there are three levels of employees’ behavior. The first level

is individual behavior, second is the group behavior and the third is organizational system level. The

individual behavior includes the ability and attitude etc. of an employee. The group behavior includes

communication, trust and leadership. The organizational system level involves organizational culture.

Fishbein and Ajzen (2010 as cited by Janssen (2015) highlighted that a person beliefs about the

positive or negative consequences they might experience when they perform behavior. These considered

behavioral beliefs, are assumed to determine peoples attitude toward performing the behavior. This is,

when their positive or negative evaluation of themselves performing the behavior is perceived to result in a

more positive than negative outcome, the attitude towards that behavior will be favorable.

According to Zheng in their study entitled the ”Influential Factors of Employees’ innovative Behavior

and the Management Advices” they highlighted that the representatives imaginative practices are rely upon

not just in the intellectual style, natural inspiration, mental capital, yet in addition the powerful incitement

from the outside condition, particularly the initiative and inspiration.

Organizational behavior is an applied discipline, students are not “trained in organizational

behavior. Rather, they are educated in organizational behavior and are a co-producer in learning. The study

of organizational behavior requires a rudimentary understanding of psychology, anthropology, sociology,

philosophy, and axiology. (Kaifi and Noori 2011)

Wicaksono (2016) in their study entitled “Factors Influencing Employees to Commit Fraud in

workplace Empirical Study in Indonesian Hospitals” asserted that the understand level of employees
commitment and the pride be a part of the organization. The findings of the previous research showed the

love of money has negatively influence to pay satisfaction. It means the low of the love of money has a high

pay satisfaction. Employees with high pay satisfaction has less to commit fraud or unethical behavior in

organizations.

Jayarathna (2014) indicates in their study that the employees with positive attitudes toward the job

tended to maintain to their positive attitudes while the employees with negative attitudes tended to remain

negative. Even those who changed job or occupations tended to maintain their prior job attitudes. Thus,

attitudes tend to be consistent over time and cross related situations. Attitudes are translated into behavior

via behavioral intentions.

Ridhima (2014) defined in her study that Business ethics are a form of applied ethics or

professional ethics that examines ethical principles and moral or ethical problems that arise in a business

environment. It applies to all aspects of business conduct and is relevant to the conduct of the organization.

Business ethics have both normative and descriptive dimensions.

Adeyeye (2015) asserted in their study that the results obtained from the study showed that

integrity and discipline have negative impact I the improved productivity level of organization, which could

be attributed to the nature of these virtues being abstract and both hypothesized. Others hypotheses

should be rejected having obtained that these variables like work attitude, commitment and the teamwork

are strong predictors of organizational. Work attitude has also been found to be vital in organization

productivity.

Turkey (2015) defined in their study that business ethics is identified as right and wrong behaviors

in business life. Corporation ethics is a sub-branch of ethics which investigates honesty, keeping promise,
and respect to environment, to be fair in business world; also deals with submitting the equal employment

opportunity, paying fair fee to wage earners and to reflect the truth to the consumers.

Adeyeye (2015) asserted in their study that the results obtained from the study showed that

integrity and discipline have negative impact I the improved productivity level of organization, which could

be attributed to the nature of these virtues being abstract and both hypothesized. Others hypotheses

should be rejected having obtained that these variables like work attitude, commitment and the teamwork

are strong predictors of organizational. Work attitude has also been found to be vital in organization

productivity.

Chan (2016) that business morals explore yield is firmly connected to the missions of the

organizations driven by their qualities or religious conviction. An extra examination of the efficiency of each

much positioned foundation recommends that business morals inquire about is profoundly packed in a set

number of famous researchers inside every establishment.

Zińczuk (2013) stated that unethical behavior of employees exerts negative influence upon

immediate and distant surroundings. Human factor plays a considerable role and its significance is crucial

for the understanding of employees’ objectionable behavior.

Aguilera and Vadera (2008) stated in their study that corruption is considered as one of the most

serious unethical conduct. Corruption is the crime that is committed by the use of authority within the

organizations for personal gain. It is also seen as an action that violates company values and standards, as

it harms the well-being of the company and its members, or individuals outside of the organizations.

According to Wuttaphan in their study they have found many ways people behave unethically like

sexual harassment, discrimination, theft, and falsification of expense claims, covering misbehavior,
industrial espionage, and many others. These behavior can be found in large, medium-sized and small

organizations across the world

Another factor that obscures the ability to notice the unethical behavior of others is whether the

misconduct happens slowly rather than abruptly. According to a phenomenon known as the slippery slope

effect, implicit biases prevent individuals from seeing gradual changes in their environment, including the

gradual deterioration of ethical behavior. (Sezer 2015)

Cultural background also positively correlated with unethical behaviors. This was asserted by

Armstrong & Sweeny (1994). As an implication of this finding, organizations should investigate and become

smarter with other culturally based practices. They should educate themselves about certain cultures and

try as much as possible to engender, promote, and fully support an ethical culture within the organization.

Sezer 2015 in their study they discussed the main sources of unintentional unethical behavior

identified by recent work and they suggested that researchers should strengthen their efforts to uncover

techniques for improving ethical decision making while carefully considering the boundary conditions of

their recommendations.

The reality is that people make unethical choices either because it is convenient, or because they

want to win or because they rationalize their choices with relativism. The review of literature makes a strong

case for ethics to be taught in corporates, since ethical behavior depends not only on one’s moral compass

but also on the ability to recognize the ethical dilemmas that are likely to arise in corporate jobs. (D'Souza

2012).

Rewarding ethical behavior and punishing unethical behavior can also be an influencers. Ball

(1994) as cited by Roman and Munuera 2005) stated that, if employees are not punished for wrong

behavior or not punished when they commit unethical actions, such actions are seen as acceptable and
desirable. Also, absence or rewards or recognition for ethical behavior reduces people’s willingness to

behave ethically and may even promote the possibility of people committing unethical acts.

Aguilera and Vadera (2008) stated in their study that corruption is considered as one of the most

serious unethical conduct. Corruption is the crime that is committed by the use of authority within the

organizations for personal gain. It is also seen as an action that violates company values and standards, as

it harms the well-being of the company and its members, or individuals outside of the organizations.

Ferrell, Fraedrich and Ferell (2011) highlighted that individual factors that influence ethical or

unethical behavior are gender and the male are more tend unethical than women. The people with higher

education are more likely to behave unethically, nationality because they have a different interpret and in

age the adults are more ethical than young people.

Omolewu in their study “Strategies for Improving Ethical Behaviors in Organizations” assessing

that he causes of these unethical behaviors in organizations are weak levels of supervision and

accountability, inadequate administrative structure, lack of awareness of the public and employees, and

unmonitored declaration of employee assets. Strategies to reduce the unethical behaviors include

establishments of codes of business conduct and a whistle-blowing mechanism and a commitment by

management to annual business ethics training for employees.

According to Trevino (2006) as cited by Kaptein (2008) he defined unethical behavior as violation

of rules, norms, and morals and implies actions that are morally unacceptable to the larger community.

Unethical behavior in the organization can be described as misbehavior of an employee, rule breaking,

committing criminal damage, and noncompliance, such as corruption, within the workplace. It is seen as a

threat to human relations and the organization, causing harm in both financial and non- financial terms and

can result in bankruptcy, reputation damage, and emotional costs.

 According to Chan and Chiu (2003) while asserting the greedy individuals tend to commit unethical

behavior. As an implication of this finding, organizations should provide enough training programs to

employees on how professionally they should conduct themselves in the workplace. This conduction can

be achieved by adopting better personality traits. Organizations can always promote and support such

professional conduct throughout the entire organization.

The type of education had a positive correlation with unethical behavior. This was supported by

Sankaran & Bui (2003). As an implication of this finding, organizations should provide adequate knowledge

to their employees about ethics and organizational ethical culture, especially for employees who lack

proper ethical educational background.

Trevino (2006) highlighted that the people that acts unethically without their own awareness and

fail to native. The people act in ways that they would condemn and consider unethical upon further

reflection or awareness. Our ethically is sometimes bounded when we ourselves face ethical choices. In

addition to situational factors, social forces have been identified as antecedents to unethical behavior. A

person’s moral behavior can be affected by the moral actions of just one other person. They found that

when an in group member behaves unethically and the behavior is visible to others, people follow suit: they

behave unethically themselves.

According to Eleswed (2017) he stated that the correlations analysis revealed a positive

relationship between unethical behaviors and some individual factors namely, risk taking, personality,

cultural background, and type of education. Furthermore, the result of a hierarchiral regression analysis

used in this study revealed the the unethical behaviors can be predicted by one individual factor which risk

taking.
 In order to reduce the number of unethical behavior in organizations. Meyer, Kuenzi and

Greenbaum (2010) conducted a study examine the relationship between ethical leadership, ethical climate

and misconduct. The results in their findings indicate that the ethical climate leadership is positively related

to the ethical behavior and the ethical climate has a negatively associated with misconduct.

Zheng suggested that the organizations should pay more attention on whether personal

characteristics and the organizational traits are matching when recruiting. Characteristic is a long-term

behavior model and organizations have to spend a lot of human, material resources when they want to

make them change.

According to Zinczuk (2013) in their research study indicated that majority of respondents

understand the concept of ethics in business 60% of respondents were unable to state their opinion

explicitly. Taking into account the fact that 40% of respondents do not understand the concept of ethics in,

business or cannot give an explicit answer may indicate the existence of an information gap resulting from

being unfamiliar with the issue.

Wuttaphan (2012) concluded in their study that whatever the size of the organization or whatever

the purpose for which it exists .unethical behaviors are always possible. There are some gray areas and

overlapping areas as to whether a particular conduct is considered ethical or unethical. People tend to stick

with their own values and perspectives prior to confronting actions that are ambiguous. For example. They

might end up doing something unethically in terms of a deontology perspective. However, they may decide

that. In a particular situation, some other action would be more ethical. Their judgement depends on the

values and standards of each organization.

Sezer 2015 in their study they discussed the main sources of unintentional unethical behavior

identified by recent work and they suggested that researchers should strengthen their efforts to uncover
techniques for improving ethical decision making while carefully considering the boundary conditions of

their recommendations.

The reality is that people make unethical choices either because it is convenient, or because they

want to win or because they rationalize their choices with relativism. The review of literature makes a strong

case for ethics to be taught in corporates, since ethical behavior depends not only on one’s moral compass

but also on the ability to recognize the ethical dilemmas that are likely to arise in corporate jobs. (D'Souza

2012).

Sigh (2015) suggested that the sustainability of an organization can be threatened by reported

cases of poor administration, weak management of human and non-human resources, and inappropriate

job behavior and performance of its employees. A key finding is that organizations should not leave

managers and their employees to solely rely on their moral intuition and good judgement, but to create a

culture with the aid of a performance management system in which there is a clear distinction between

ethical and unethical behavior.

Rewarding ethical behavior and punishing unethical behavior can also be an influencers. Ball

(1994) as cited by Roman and Munuera 2005) stated that, if employees are not punished for wrong

behavior or not punished when they commit unethical actions, such actions are seen as acceptable and

desirable. Also, absence or rewards or recognition for ethical behavior reduces people’s willingness to

behave ethically and may even promote the possibility of people committing unethical acts.

Omolewu recommend in their study that in order to restore and maintain a culture that upholds

honest and ethical behaviors, the organizational leaders must verbally promote ethical environment and

relentlessly “walk the talk,” by making ethical behavior part of the organization’s agenda. They need to
establish codes of business conduct to guide employees’ behaviors. There should be the establishment of

annual business ethics training for the employees and a good whistle blowing mechanism.

Trevino and Brown (2014) suggested that leaders influence ethical and unethical conduct through

modeling processes, and we offer a social exchange perspective to suggest that subordinates are likely to

reciprocate with positive behavior when they and their leaders are involved in relationships that are based

on admiration and trust.

Adeyeye (2015) established in their study that the ethical consideration in labor management

relationship is a concomitant for organizational development. For high productivity, it is important that all the

stakeholders observe ethical conducts in their dealings with one another. This must be openly displayed

through positive attitudes, committed teamwork, and high integrity and self-disciplined.

Kaifi and Noori (2011), suggested that it is important to understand how and why teamwork affects

people’s success in the work place. Practically, it is important for managers to know whether teamwork

affects performance because it proxies cohesiveness and synergy. The study presented in this article

clearly suggests that affects people careers and workplace interaction and therefore is worthy of continued

scholarly investigation.

.Trevino and Brown (2014) they concluded that the leaders must receive much of the credit for

success and also shoulder most of the blame for ethical failures in organizations. Given their visible

positions of authority, responsibility for shaping formal organizational policies, ongoing interactions with

employees, and control over important rewards and punishments, leaders should play an important role in

influencing employees’ ethical and unethical conduct.

Theoretical Framework
 Social bond theory, Hirschi (1969) suggested that people will behave in good or bad ways, ethically

or unethically, based on the level of their commitment to the organization. When employees feel that they

are treated unfairly or are mistrusted, they tend to behave unethically (Boy & Jones 1997; Greenberg 1997;

Skarlicki, Folger & Tesluk 1999). Further, employees are more likely to behave unethically when their

supervisor commands them to do so based on his or her power.

In this sense, employees engage in unethical conduct because of insufficient power to reject a

supervisor’s direction, even though they do not agree with the unethical behavior (Sabini, Siepmann, &

Stein 2001).

Therefore, the study of unethical behavior among employees provides further insight into the need

for organizations to develop effective management strategies in order to prevent, detect, and respond

forcefully to stamp out unethical behavior of its employees. Sigh (2015)

Methodology
Research Design

This study used a qualitative research method. The study aimed to assess the unethical behaviors

of employees in Public market of Municipality of Cabatuan, Isabela

Respondents of the Study

In order to gather data, the researchers chose the employees who are working in public market in

Municipality of Cabatuan, Isabela that will serve as their respondents of the study. Purposive sampling will

be performed to attain the respondents who are knowledgeable enough to answer the questions that the

researchers asked that will give information that the researchers needed.

Research Instrument

The researchers used an open-ended questionnaire as a research instrument that will serve as the

primary tool of data collection together with structured interviews.

Date Gathering Procedure

The data collection will take place during the employee’s free time. Open ended-questionnaire

were distributed among the respondents in Public Market of Cabatuan Isabela, this served as the primary

source of data. The researchers make sure to assist the respondents of the study to answer the

questionnaire. The answers of the respondents were recorded through phone for documentation in

collection of valid and reliable data.

Analysis of Data
 Using the research instruments and the following gathering procedures the information was

transcribed for analysis. The researchers used coding relevant themes to interpret the data