The Impact of a Corporate Code of Ethics and Organizational Justice on Sales Managers’ Ethical Judgments and Reaction to Unethical Behavior

Abstract

This study used an experimental design to investigate the effect of a code of ethics and employees’ perceived organizational justice on sales managers’ perceptions of and reaction to unethical behavior. The results indicate that sales managers are less-willing to discipline a salesperson for unethical behavior when a code of ethics does not exist and when the employee has experienced organizational injustice in a promotion decision. Implications for sales managers are discussed.