The effects of organizational mindfulness on ethical behaviour and firm performance: empirical evidence from Vietnam

Abstract

This study examines the relationship between mindfulness and ethical behaviour and its consequent effects on firm performance. We adopt the psychological concept of mindfulness in the context of corporate ethics. We hypothesize that organizational mindfulness has a positive effect on organizational ethical behaviour but that the company’s code of ethics moderates this relationship. We further propose that organizational ethical behaviour affects firm performance with corporate reputation as a mediating construct. We tested the proposed framework using survey data from 653 managers of large firms in Vietnam. The estimated structural equation model provides strong and convincing support for our hypotheses with important theoretical and managerial implications.