read the article) and write a 3-page paper to analyze your article based on the course material, ethical issues of misuse of company time and resources, conflicts of interest, bribery, fraud, lying, and disrespect. Scripture, and your own research. You should only use the book article to support your analysis. the article is attached below
Common Thread: The Impact of Mission on Ethical Business Culture. A Case Study
Jana L. Craft1
Received: 14 September 2015 / Accepted: 18 January 2016 / Published online: 30 January 2016
� Springer Science+Business Media Dordrecht 2016
Abstract What is the impact of mission on ethical busi-
ness culture? This question was analyzed through a quali-
tative case study of a large nonprofit organization in the
human services industry with a solid history of ethical
business practices and consistent use of a values-based
decision-making model. This research explored ethical
decision making, ethical business culture, and congruence
between enacted and espoused institutional values. Insti-
tutional values were identified, and the following pair of
research questions was examined: To what extent were
incongruent values found between espoused and enacted
values? To what extent did incongruent values impact the
ethical business culture? Incongruent enacted values were
present in the culture, but negative impact was diminished
by a larger number of congruent enacted values. Additional
findings revealed that an intense commitment to the mis-
sion by all employees was the common thread that wound
throughout the organization’s ethical business culture and
essentially abrogated the undesirable effects of incongruent
and negative values.
Keywords Ethical business culture � Ethical decision making � Argyris and Schön � Nonprofit � Qualitative research � Case study
What is the impact of mission on ethical business culture?
In a qualitative case study of a large nonprofit organization
in the human services industry with a solid history of
ethical business practices, a common thread was found that
wove throughout the culture: mission. Belief in the mission
by employees at all levels and locations held together the
fabric of the culture in which there existed a shared com-
mitment to ethics and ethical decision making. While much
can be said for a shared dedication to mission, major gaps
existed between espoused and enacted values. Gaps
occurred between two key descriptors: (1) hierarchical
positions, and (2) geographic locations. Thus, the purpose
of this study is twofold. To what extent were incongruent
values found between espoused and enacted values? And,
to what extent did incongruent values impact the ethical
business culture? The organization studied was a large
nonprofit in the human services industry located in the
upper Midwest. In business for nearly 50 years, the orga-
nization consistently demonstrated ethical business prac-
tices and had in place a values-based decision-making
model (VBDMM) for over two decades. This study is
grounded in the examination of three key issues.
First, what were the institutional values of the organi-
zation? Values can be defined as generalized, enduring
beliefs about the personal and social desirability of modes
of conduct or ‘‘end-states’’ of existence (Rokeach 1979;
Schwartz 1992). Values are important when dissecting
decision-making behavior because they exist at all levels of
social analysis: cultural, societal, institutional, organiza-
tional, group, and individual (Kabanoff et al. 1995).
According to Argyris and Schön (1978), values can be both
espoused and enacted. Espoused values signify what
organizations communicate as important and are found in
organizational documents such as annual reports, mission
statements, and strategic plans. Espoused values that are
consistent with the organization’s culture strengthen the
organization’s reputation and external legitimacy. Enacted
values involve a theory-in-use that explains behavior which
& Jana L. Craft
1 Winona State University, 175 W. Mark Street, Winona,
MN 55987, USA
123
J Bus Ethics (2018) 149:127–145
https://doi.org/10.1007/s10551-016-3034-9
neither the institution nor the individuals may understand
(Argyris 1999; Argyris and Schön 1978; Kabanoff and
Daly 2002). Essentially, espoused values communicate
what we say and enacted values reveal what we do. In this
case, the enacted values of the organization were uncov-
ered during the data collection phase.
Second, to what extent did gaps exist between espoused
and enacted values? Congruence was identified when
espoused values corresponded with enacted values. Simply,
when what was said by participants matched the actual
values in use within the organization, regardless of hier-
archical level or geographic location. Incongruence
occurred when inconsistencies emerged between espoused
and enacted values. Specifically, value dissimilarity was
found to exist between hierarchical positions (i.e., man-
agers versus lower-level employees) and geographic loca-
tions (i.e., corporate employees versus satellite employees).
Third, to what extend did incongruent values impact the
ethical business culture? It stands to reason that incon-
gruent values would negatively impact an ethical business
culture. Using the characteristics of ethical business cul-
tures model developed by Ardichvili et al. (2008), the
researcher analyzed the impact of incongruent values on
the five characteristics of an ethical business culture: mis-
sion and vision driven; stakeholder balance; leadership
effectiveness; long-term perspective; and process integrity.
In conjunction with consistent communication of organi-
zation values and a deep commitment to serving their cli-
ents, a fiercely shared dedication to the mission of the
organization was the common thread that mended gaps that
existed between enacted versus espoused values.
The organization under study provided customized ser-
vices for people with disabilities and was chosen because
of its long history using values-based decision making and
consistent ethical business practices. Adopted in 1992, the
values that governed this organization had not changed in
over 20 years. The organization successfully infused ethi-
cal decision making within its culture by creating a tool by
which all decisions were measured; training staff at all
levels on a regular basis; and requiring decisions to be
justified using the four components within the device. At
each of their locations, the model was incorporated into
public spaces, prominent reminders of the importance of
values-based decision making at the firm. As a condition of
research access, confidentiality of the organization and any
identifying factors were masked. The organization will be
referred to as ‘‘Ability, Inc.,’’ a pseudonym.
The researcher examined the supporting literature on the
theoretical frameworks of espoused versus enacted values
(Argyris and Schön 1978), ethical decision-making theory,
and characteristics of ethical business cultures (Ardichvili
et al. 2008). Findings of the case study related to each area
of scholarship are discussed and the main question is
addressed: What is the impact of mission on an ethical
business culture?
Supporting Literature
Institutional Values
An important aspect of this study is the role of organiza-
tional values in everyday decision making. Values can be
defined as generalized, enduring beliefs about the personal
and social desirability of modes of conduct or ‘‘end-states’’
of existence (Rokeach 1979; Schwartz 1992). Values are
important when dissecting decision-making behavior
because they exist at all levels of social analysis: cultural,
societal, institutional, organizational, group, and individual
(Kabanoff et al. 1995).
The value structure of Ability, Inc. included four distinct
elements: ethics, respect, responsiveness, and resourceful-
ness. Decisions should show personal honesty, demonstrate
the mission, and follow the code of ethics (ethical); treat
people with dignity, see people as worthy of having the
best, promote win/win situations (respectful); provide
information and opportunities to make choices, demon-
strate respect for people’s ideas and choices, identify
expectations, and deliver on commitments (responsive);
use resources to support, not replace other resources, and
use resources wisely (resourceful) as shown in Fig. 1. In
addition to the four components of ethical decision making
in the VBDMM, Ability, Inc.’s five core values were
sharing ordinary places, growing in relationships, making
choices, contributing, and being respected. The combina-
tion of these documents represent the espoused values of
the organization.
Espoused Versus Enacted Values
An important aspect of this study was the role organiza-
tional values played in everyday decision making. Argyris
and Schön (1978) separated values into two categories:
espoused and enacted. Espoused values signify what
organizations communicate as important and are found in
organizational documents such as annual reports, mission
statements, and strategic plans. These values denote how
an organization defines itself. Espoused values that are
congruent with an organization’s culture strengthen the
organization’s reputation and external legitimacy. Viola-
tion of espoused values may result in loss of credibility and
relationship disengagement by those who interact with the
organization (Kabanoff and Daly 2002; Siehl and Martin
1990; Sutton and Callahan 1987). Enacted values involve a
theory-in-use that explains behavior which neither the
institution nor the individuals may understand (Argyris
128 J. L. Craft
123
1999; Argyris and Schön 1978; Kabanoff and Daly 2002).
They are congruent with the organization’s culture, and it
is how the organization’s members define it. In essence,
enacted values answer the question, what’s it really like to
work here? and give insight into organizational culture.
Key Terms Defined
Several definitions of key terms should be provided before
a review of the ethical business culture research is under-
taken. The definition of ethics that pertains to this study is
‘‘the study of and philosophy of human conduct, with an
emphasis on determining right and wrong’’ (Ferrell et al.
2013, p. 7). Behavior that is ethical is often deemed correct
by the society in which the behavior exists. In contrast,
moral behavior can be considered more of an individual
choice between right and wrong. While a technical dis-
tinction exists, the two terms are often used interchange-
ably within the literature review among various authors. In
the analysis and findings within this study, the term ethics
will be used because the study involves organizational and
ethical business culture and ethical decision making, not
necessarily individual, moral behavior. For the purposes of
this article, business ethics ‘‘comprises the principles,
values, and standards that guide behavior in the world of
business’’ and values are ‘‘used to develop norms that are
socially enforced’’ (Ferrell et al. 2013, p. 7) such as
integrity, accountability, and trust.
Ethical Business Culture
Components of ethical business cultures can be categorized
into two distinct types: formal and informal. Formal rep-
resentations of ethical business cultures include mission
statements, codes of conduct, indoctrination and orienta-
tion rituals, decision-making processes, rules, and regula-
tions, and so forth. Informal symbols of ethical business
cultures include less obvious components of culture such as
Fig. 1 Ability, Inc.’s Values-
based decision-making model
Common Thread: The Impact of Mission on Ethical Business Culture, A Case Study 129
123
norms, values, and behavior. Organizational values are
‘‘basic determinants of human behavior and social atti-
tudes’’ that express what is acceptable to individuals and
society (Dion 1996, p. 333). Sims and Brinkmann (2003)
argued that ethical business culture matters more than
codes of ethics; they use the catchphrase, ‘‘Enron Ethics,’’
which asserts that ‘‘business ethics is a question of orga-
nizational ‘deep’ culture rather than of cultural artifacts
like ethics codes, ethics officers and the like’’ (p. 243).
Sims and Brinkmann use Schein’s (1985) five mechanisms
for influence regarding an organization’s culture to illus-
trate the impact of leadership on ethical business cultures.
The five mechanisms are: attention, reaction to crisis, role
modeling, allocation of reward, and criteria for selection
and dismissal. Sims and Brinkmann illustrated these
mechanisms through use of the Enron case, highlighting
that the organization used the mechanisms ‘‘to reinforce a
culture that was morally flexible, opening the door to ethics
degeneration, lying, cheating and stealing’’ (p. 247). Small
(2006) investigated ethical culture at four distinct Aus-
tralian organizations in order to better understand how
ethical culture can be developed, encouraged, and main-
tained. Small’s study substantiated Gilmartin’s (2003)
conditions in developing an ethical business culture:
(1) The top leaders must set the right tone;
(2) the organization must offer formal training in ethics
and standards of conduct;
(3) and the organization must provide formal mecha-
nisms, both internally and externally to the organi-
zational structure, for reporting wrongdoing.
Small’s study concluded that ‘‘organizational theory and
ethical theory are complimentary and that the combination
of the two areas can facilitate understanding in developing
an ethical corporate culture’’ (p. 599).
Ardichvili et al. (2008) conducted a grounded theory
study that elicited five clusters and statements about the
characteristics of ethical business cultures (Fig. 2): they are
mission and vision driven; seek stakeholder balance; strive
for leadership effectiveness and process integrity, and
adopt a long-term perspective.
Based on their findings, the significant characteristic of
ethical business cultures is described as the ‘‘lifeblood of
the organization’’ (p. 449), the mission and vision. For an
organization to survive, and ultimately thrive, it needs to
connect its mission and vision to its long-term strategic
goals and objectives. The alignment of mission and vision
is vital in developing organizational norms that result in
codes of conduct and ethics, which is why mission and
vision are in the center of the model. The second charac-
teristic found by Ardichvili et al. (2008) was stakeholder
balance. This characteristic was in contrast with
Friedman’s (1970) popular theory that making a profit for
stockholders is the sole goal of the organization. Rather,
respondents believed in balancing customer value and
profit, keeping in mind competing needs of stakeholders
(i.e., customers, employees, owners, and community) and
respecting and fairly compensating employees. Echoing
Small (2006), Gilmartin (2003) and Ardichvili et al. (2008)
also found the ethical ‘‘tone at the top’’ or the example set
by leadership, to be the third characteristic of ethical
business cultures. Respondents indicated the decisions and
actions of senior management to be an important trait as
well as consistency between words and actions. Congru-
ence between words and actions results in increased, long-
term effectiveness. The fourth characteristic of an ethical
business culture was process integrity, indicated by the
statements describing a dedication to quality and fairness,
investments in ongoing ethics training, outstanding cor-
porate governance processes, and transparent decision
making. Lastly, ethical organizational cultures must also
elicit long-term perspective by ‘‘placing mission above
profit and long-term over short-term; acting in the best
interests of customers, over the longer term; connecting
environmental sustainability with corporate social respon-
sibility and profit’’ (Ardichvili et al. 2008, p. 448); and the
CEO taking a long-term approach to building the
organization.
Ethical Decision Making
Numerous studies supported a connection between ethical
business culture and ethical decision making. In a review
of the ethical decision-making literature from 1996 to
2003, O’Fallon and Butterfield (2005) reported sixteen
findings on ethical climate or ethical culture that influenced
Fig. 2 Five clusters of characteristics of ethical business cultures
(Ardichvili et al. 2008)
130 J. L. Craft
123
the ethical decision-making process. Of the sixteen, twelve
findings reported that at least one dimension of ethical
climate or culture positively influenced ethical decision
making (see Singhapakdi et al. 2001; Trevino et al. 1998;
VanSandt and Neck 2003; Weber and Seger 2002). Loe
et al. (2000) earlier review of ethical decision-making lit-
erature revealed support for the connection between ethical
culture or climate and ethical decision making, albeit with
fewer studies published (see Ferrell and Skinner 1988;
Jones and Hiltebeitel 1995; Verbeke et al. 1996). More
recently, Craft (2013) reported ten findings related to eth-
ical culture in the areas of awareness, judgment, and intent.
Studies showed ethical decision making was significantly
impacted by workplace ethics, standards, and practices
(Elango et al. 2010); age and perceived ethical climate
types (Forte 2004); management’s efforts to encourage
ethical decision making and the tone at the top (Sweeney
et al. 2010); and ethical norms and incentives (Shafer and
Simmons 2011). Zhang et al. (2009) found a positive
correlation between employee perception of an ethical
culture and their whistleblowing judgment.
Several important theories buttress the ethical decision-
making literature. The two most prevalent models are
Rest’s (1986) four-component model for individual ethical
decision making and Jones’ (1991) Issue-Contingent
Model. Rest’s (1986) model reduces ethical decision
making to four key components: awareness, judgment,
intent, and behavior. Building on Rest, Jones (1991) coined
the term moral intensity, which is comprised of six
elements:
(1) magnitude of consequences: the sum of the harm/
benefits of the moral act to those involved
(2) social consensus: the degree of social agreement that
a proposed act is good or bad
(3) probability of effect: the probably the act will
actually take place and will harm/benefit those
involved
(4) temporal immediacy: length of time between the
present and the act
(5) proximity: the feeling of immediacy to those
involved
(6) concentration of effect: strength of consequences for
those involved
As of the writing of this article, over 2800 articles cited
Jones (1991), including numerous articles that tested at
least one example of the model (e.g., Carlson et al. 2002;
Davis et al. 1998; Harrington 1997; May and Pauli 2002;
Paolillo and Vitell 2002; Singhapakdi et al. 1996) or
revising the model itself (e.g., Kelley and Elm 2003;
McMahon and Harvey 2007). Recent research in ethical
decision making using Jones (1991) included a study by
Hopkins et al. (2008) that concluded female managers were
more inconsistent than male managers in their ethical
decision making and in their responses to items on the
discrimination scale. They related this to the proximity
component of Jones’ model and suggested that decisions
made by females with regard to ethics and discrimination
may affect them personally and have a more immediate
impact on an individual’s personal life, thus being in close
proximity. Hayibor and Wasieleski (2009) found the
availability of consequences associated with an act was
positively related to Jones’ perceptions of the magnitude of
consequences of the act. Karacaer et al. (2009) found the
perceptions of moral intensity influenced both ethical
judgments and behavioral intentions (Jones 1991; Rest
1986) in their study of Pakistani and Turkish auditors.
McMahon and Harvey (2007) found mixed results for the
effect of perceived moral intensity on ethical decision
making. Further, both probable magnitude of consequences
and social consensus had a significant effect on ethical
decisions, whereas proximity did not. Finally, ethical
judgment was found to be a stronger predictor than per-
ceived moral intensity in one of their studies. Leitsch
(2006) found that two dimensions of moral intensity, per-
ceived corporate concern and perceived involvement
effect, when combined, significantly predicted accounting
students’ moral intentions.
This is by no means a complete discussion of the
instruments and theories involved in ethical decision-
making research. Rather, it should serve as context for the
larger framework of ethical decision-making research.
Mission-Driven
Ability, Inc., a large, not-for-profit organization in the
human services industry, had a well-documented history of
being mission driven. Founded over 40 years ago by
families of children with special needs, at the time of the
study Ability, Inc. operated eight program locations in a
large Midwestern metropolitan area. In 2012, Ability, Inc.
earned over $54 million in revenue and projected 4.5
percent annual revenue growth in subsequent years. With
nearly 500 volunteers and over 4300 clients and staff,
Ability, Inc. was a major player in the human services
industry.
A nonprofit organization is driven by its mission and
uses profit to improve services rather than pay dividends to
investors as in for-profit businesses. The reason an orga-
nization seeks nonprofit status is not only to encourage
donations through tax incentives, but ultimately to benefit
the general public. Each nonprofit organization states its
purpose and how it will benefit the public through the
declaration of a mission statement. Brinckerhoff (2009)
discussed the role of mission in nonprofits as ‘‘what the
organization does [emphasis original]’’ (p. 39). This
Common Thread: The Impact of Mission on Ethical Business Culture, A Case Study 131
123
statement can be amended with the words ‘‘and strives to
be’’ because organizations are more than just what they do
but also what they are striving to become.
In 1992, Ability, Inc. created a VBDMM (Fig. 1) that
put its mission into context in order to make decisions
based on the mission and values. Often revisited by the
board of directors and executive leadership, the values
were the driving force behind the organization’s mission.
What motivated the researcher to seek out an opportunity
to work with this organization was her prior experience
with Ability, Inc. clients, client supervisors, and volunteers
at various employers. Further, while on a tour of the
company headquarters in early 2002, the VBDMM was on
display throughout the building. This sparked an interest in
the researcher in the way the organization communicated
its values and provided a tool for making values-based
decisions. When interviewed about this phenomenon, an
Ability, Inc. employee stated she and her colleagues used
the tool to make and justify decisions. Simply, if the
decision maker could justify the decision as ethical,
respectful, responsible, and resourceful, it was often made.
The researcher found the idea of creating an ethical deci-
sion-making tool to, in essence, build a culture of ethical
decision makers, a unique and noteworthy idea to be
explored.
Research in ethical business cultures indicated that
organizational values should be consistently communicated
and acted upon by all members of an organization. Given
the long history of ethical decision making and consistent
use of values-based decision making within Ability, Inc.,
did gaps exist between enacted and espoused values? If this
was a strong ethical business culture, were values consis-
tent through the entire organization? If no, how were
satellite locations experiencing an ethical business culture?
Thus, two research questions were explored:
RQ 1: To what extent were gaps found between
espoused and enacted values?
RQ 2: To what extent did incongruent values impact the
ethical business culture?
Methodology
A single-case descriptive qualitative study (Merriam 1998;
Smith 1978; Yin 2009) of the ethical business culture of a
large nonprofit organization was conducted. Three sources
of evidence were used to collect data on values-based
decision making within the organization: documentation
(Fraenkel et al. 2012; Hodder 1994; Jones 1996; Miller
1997), focus groups (Krueger and Casey 2009) and existing
survey data. These sources were chosen because they
represented multiple layers of information gathering that
overlapped to provide a variety of data for generating
appropriate findings. Patton (2002) stated that the combi-
nation of document analysis and interviewing (in a group
or individually) was valuable. He further suggested four
types of triangulation be utilized in data evaluation. Yin
(2009) described triangulation as the convergence of evi-
dence within a single study as the types of data evaluation
adding to a set of facts that are derived from the data. This
study replicated the convergence of evidence through the
triangulation of data as information will be collected from
multiple sources (documents, focus groups, and existing
survey data) that corroborate the same fact or phenomenon.
Data analysis was conducted in accordance with Miles
and Huberman’s (1994) suggestions for data reduction:
creating a data display matrix, drawing conclusions, and
verifying data. Themes obtained from the analysis were put
into a matrix to allow for theoretical clarity in emergent
findings. Data were archived, coded, and analyzed using
Dedoose, an online qualitative software program, and
reflexively verified with participants to safeguard meaning
congruence. A total of thirty-four documents were
reviewed. Public documents reviewed consisted of annual
reports, balanced scorecards, newsletters, marketing
materials, and surveys published by the organization on
their website. Non-public documents reviewed, with per-
mission, included training materials, new employee infor-
mation, and other internally circulated written
communiqué.
A total of seven focus groups were held during a four-
month period: four at the corporate location and three at
remote satellite centers. These satellite centers were chosen
because they provided a good mix of size, program offer-
ings, and people. A total of thirty-eight employees partic-
ipated in seven focus group sessions representing all levels
of the organization. All focus groups were audio recorded
and transcribed by the researcher. Responses from a 2011
Employee Satisfaction Survey, conducted by a professional
research firm in which 173 responses were received, were
used. The response rate for this survey was 84 percent. All
locations and hierarchical levels were represented in the
survey results. Informed consent forms were signed and
retained by the researcher, and the whole work was
approved by a university Human Subjects Committee.
In exchange for their support, the organization was
given a report that focused on several key areas of the
study. First, the report addressed the consistency between
the stated and actual values of the organization and applied
the identified values to the four components of the
VBDMM using Argyris and Schön’s (1978) theory of
espoused versus actual values. Second, the report encap-
sulated how the VBDMM was used by its employees when
making ethical decisions and how the values translated
within the organization culture. Finally, based on research
132 J. L. Craft
123
findings, numerous practices were recommended to address
the gap that existed between espoused and enacted values
and strengthen the ethical business culture.
Findings
RQ 1: To what extent were gaps found
between espoused and enacted values?
More congruent values were found than incongruent values.
In essence, the majority of what was said (espoused) was
practiced within the organization (enacted) and subscribed
to by both hierarchical levels and differing locations. Con-
gruent values, both negative and positive, were found.
Positive congruent values contributed to the strong sense of
commitment and dedication to the organization expressed
throughout the study, which positively impacted the ethical
business culture. Negative congruent values threatened to
undermine the existing ethical business culture.
Congruent Values
Seventeen consistent themes emerged that indicated con-
sistency between espoused and enacted values, meaning no
gap was present. In contrast to inconsistent themes, both
corporate and satellite employees reliably voiced issues as
positive and negative. No demarcation existed between
hierarchical levels, or proximity to corporate office. Sim-
ply, all employees in the research pool agreed on these
values and, as such, these findings were the most important
to the executive leadership. Because of the large number
(17), similar themes are grouped together in the following
analysis. Twelve themes were positive, four totally nega-
tive, and one a combination of both (see Tables 1, 2).
Negative Congruent Values
Corporate and satellite employees agreed that there was a
large disconnection between satellite centers and head-
quarters. Timely communication about changes and
employee input was lacking. This lead to a centralized
management structure which conflicted with the
autonomous culture that had been cultivated at many off-
site locations, as reflected in these quotes from a rural
location:
Corporate wants us to be just like them, but we are a
small community. We can’t be just like them. We
don’t want to be.
Instead of trying to turn us into corporate, maybe
corporate should come and see what we are doing.
Corporate employees recognized this ‘‘sanitization’’ of
corporate culture and called it centralization. While
satellite locations saw it as negative, corporate saw it as
positive—a rebranding effort. This theme was the only
value that was both consistent but positive and negative
depending on the source. The fast-paced environment
created by the need to cut costs while delivering high
quality and innovative programs led employees to wax
poetically about the ‘‘good ‘ol days’’ when Ability, Inc.
had a smaller, more familial environment. When asked to
describe the culture back then, one long-term employee
said, ‘‘it was like ma pa.’’ Meaning, it was like a family
where everyone knew everyone else, and all employees
were important. Long-term employees felt they had more
say in decisions when the organization was smaller.
Positive Congruent Values
Conversely, there were many more positive, consistent
themes than negative and inconsistent. Positive change—
change that was necessary to respond to evolution in the
industry and recoup diminishing state funding—was agreed
upon and welcomed, at least in theory. As an example, it is
needed, but when put into practice, the change became
(a) negative when applied to program cuts, and (b) misun-
derstood by those not in power. However, the idea of
positive change was lauded and led to employees at all
levels and locations feeling hopeful about the future. When
in an optimistic frame of mind, employees spoke of their
work environment as fun and being team-centered. When
working together, teams were able to provide innovative
programming on a small budget—something of which they
were very proud. Employees spoke of enjoying a level of
independence within their job and benefitted from an
Table 1 Negative congruent
values applied to the four
components of the VBDMM
Values[ themes Ethics Respect Responsiveness Resourcefulness
Disconnection There is a clear disconnect between satellite and corporate employees
Communication Lack of timely communication about changes
Centralization Corporate makes decisions about satellite operations
Fast-paced Employees are burnt out, efficiency is hurting effectiveness
Nostalgia Employees used to be more involved, seen and heard
Common Thread: The Impact of Mission on Ethical Business Culture, A Case Study 133
123
environment generally free from micromanaging
supervisors.
The next set of consistent, positive themes elicited a
strong emotional response from employees at all levels and
locations. The emergence of these positive themes were the
first indication of the common thread that ran throughout
the organization. Employees stated that Ability, Inc. pro-
vided high-quality programs, in spite of cost cuts and staff
reductions. While trust had been negatively impacted
between lower level employees and executive leadership,
one thing remained clear, as evidenced by this quote, ‘‘I
trust that the leaders of this company have the best of
intentions.’’ The difference between trusting someone and
trusting their intentions should be clarified. While it’s
possible to not trust individuals or their poorly communi-
cated strategic changes, taken together as a whole, the
intentions of the leadership team were seen as honorable,
their jobs difficult, and that they were trying their best.
Leaders were often described as good people with hard
jobs. In the words of one employee, ‘‘I wouldn’t pay a
million bucks to be in their shoes, neither.’’
Even though budgets were tight and patience was
wearing thin under a heavy workload, employees at all
levels and locations consistently mentioned how dedicated
they were to their jobs. They believed in the mission of
Ability, Inc.; were committed to their clients and the cli-
ents’ families; stayed late to finish tasks often clocked out;
and stated they were not there for the money. Because they
were dedicated, the job was also rewarding. Love for their
vulnerable adult client population was palpable at all levels
and locations, even from employees who did not work
directly with clients (i.e., accounting, marketing, and call
center). Consider these quotes:
[The best part of my job is] working with clients,
being a meaningful part of their life and helping them
make decisions.
I love my job. I don’t love the paperwork, but I love
the clients I work with. You can’t work in this busi-
ness for the money.
I look at our staff of dedicated people and I hear
upper management talking. Well, are they doing this?
Are they doing that? I want to say, hey man, they’re
doing that plus more and back off! They are working
hard! I have this to say about a lot of our staff. My
gosh, the work they put in, the dedication and the
integrity that they have… they really care about what
they’re doing for these people.
One such encounter that elicited heavy emotion was
between the researcher and staffing manager. Consider this
vignette from one of the last focus groups.
Organizational changes and pressure were beginning to
take their toll on everyone. The staffing manager looked
tired as she sighed and sat down in the conference chair an
hour before the start of the focus group interview. ‘‘How’s
it going?’’ she said. ‘‘How’s it going with you?’’ I replied.
‘‘Ok’’ she said, with fatigue in her voice. At this point I felt
everyone at the executive and managerial levels were
Table 2 Congruent positive values applied to the four components of the VBDMM
Values[ themes Ethics Respect Responsiveness Resourcefulness
Change Change is necessary to demonstrate mission, promote win/win for clients, respond to industry and government funding and
doing more with less
Hope We are hopeful that changes will sustain the company in the long-run
Fun/team I have respect for my co-workers; our team
is fun
Innovative We have creative, flexible and customized client
programs
Independent I like the freedom I have in my job to serve my clients or perform job duties
Quality I want the best for my clients. We do the best we can with what we have
Intentions I trust the people making decisions have the best of intentions. The leaders are doing their best; they are good people
Dedication I believe in our mission. I’m committed to my clients and their families. We get the job done even if we have to stay late.
We’re not here for the money
Rewarding The best part of my day is working with clients. Love for clients is evident at all levels and locations. I’m proud of what I do.
My job is rewarding
Personal Values Personal and organizational values are the same. Dignity and respect are part of ethics and part of my personal values. I do
my best because it’s what I believe. I try to save money for the company because I save money myself
Ethical Company Ethics is clearly identified in our culture. Our ethical culture includes respect for people, fulfilling expectations, being
responsive to needs and use resources wisely
134 J. L. Craft
123
somewhat nervous about what I may have been hearing
from their employees over this four-month change period. I
said, ‘‘Would you like a preview of what I’ve found?’’ Yes;
she was curious but hesitant. At this point I was certain
about two themes:
(1) Ability, Inc. clients are cherished.
(2) I had never seen a more dedicated group of
individuals in any organization.
At this point, she started to cry and said, ‘‘It’s so good to
hear you say that,’’ while she dug tissues out of her purse. I
knew I was on to a big theme. I think people just wanted to
hear that what they felt was what everyone else felt:
• I don’t want these changes to impact clients any more
than they have to.
• Please let me maintain the relationships I have built
with my clients and their families.
• I don’t want to be forced to look for another job.
• I want this company to stay in business for the future.
The reason for the dedication to the job, in spite of all
the negative themes found, boiled down to the last two
themes. The vast majority of participants, when asked if
their personal values meshed with organizational values,
agreed unequivocally and without hesitation. Regardless of
their skepticism about changes for the future, not feeling
supported or valued, having a heavy workload, and feeling
disconnected from corporate, one thing remained constant:
person-organization value alignment. Statements such as,
‘‘I already live this way’’ and ‘‘I save money at home, so of
course I try to save money at work’’ were heard during
each focus group.
The follow up question was then asked regarding if
Ability, Inc. was an ethical company and if it had an ethical
business culture. After those terms were defined by the
researcher, every participant agreed that it was ethical and,
in turn, had an ethical business culture. Reasons cited were
many. Ethics was clearly identified in the culture. Ethical
cultures include respect for people. Ethical cultures include
fulfilling expectations and being responsive to people’s
needs. Ethical cultures aim to use resources wisely. These
statements directly influenced the components of the
VBDMM. Many said that this kind of organization could
not be successful unless ethics was paramount in the cul-
ture at every level. Hiring people with personal values in
place that matched organizational values was a key aspect
of the hiring process. Ethics was infused through the
training, use, and communication of the VBDMM and
reinforced regularly by supervisors and managers. Walls
were painted with murals depicting organizational values,
and the VBDMM was reproduced in miniature, hung in
every bathroom and cubicle.
Incongruent Values
This study found several differences between espoused and
enacted values. When an organization is operating with sig-
nificant gaps within critical functions, operations are not as
efficient, and turnover is frequent. Thus, it is in a company’s
best interest to minimize inconsistencies and maximize
communication. Major gaps between espoused and enacted
values existed in five main themes: person-centeredness,
proximity impact, sustainability and growth, trust in strategic
changes, and employees feeling supported and valued. All
incongruent values were expressed as negative by satellite
employees or lower-level workers and positive by corporate
employees or satellite management. In essence, the values
weren’t themselves negative, just the applied perspective.
The framework for espoused values was based on the
organizations’ long-standing (VBDMM) which described
four criteria that should be used in making ethical organi-
zational decisions: ethics, respect, responsiveness, and
resourcefulness. Document analysis revealed a strong
emphasis on being responsive to clients, employers, and
families, and resourceful with funds, growth, and sustain-
ability for the future. As expected, internal training docu-
ments such as the employee resource manual and decision-
making training manual explicitly instructed employees on
the use of the VBDMM. Strategic planning documents and
annual reports, as expected, concentrated on long term
goals in fundraising, sustainability and growth.
In addition to document analysis, espoused values were
evident in the language used by executives. An email to the
organization from the CEO during the four-month focus
group research period addressed major changes that were
about to occur. With the help of a consulting team and in
response to the fluctuating government funding and chan-
ges in the human services industry, nonprofits were being
asked to do more with less; in other words, to be more
efficient. Espoused values present in the remainder of the
email included: provide excellent service with reduced
costs; process improvement; being responsive to client and
family needs; employee roles; sustainability; and the
company’s stated values.
Our biggest advantage is you, our employees. You
know us well and you are analyzing how we can do
our work better. We all want our changes to be in line
with our Values-Based Decision Making process
ensuring that all changes are ethical, respectful,
responsive, and a match to our resources. Our
challenge for the future is to continue to provide
excellent quality care with lower costs. –CEO
Of the thirty-four documents reviewed, nearly half were
marketing materials or public communication to staff, such
Common Thread: The Impact of Mission on Ethical Business Culture, A Case Study 135
123
as this email from the CEO. With the exception of one
story about a new sales director, this email contained one
of the few direct mentions of employees and their value to
the organization. This sentiment, ‘‘our biggest advantage is
you, our employees,’’ was not represented in other public
documents available on the website. Espoused values
demonstrated by corporate leadership focused on being
resourceful and responsive to employers, clients, and
families. The following two values, ethical and respectful,
were somewhat represented. However, there was a large
gap in the responsive and respectful categories with regard
to employees and their value in the organization.
Person-Centeredness
A common sentiment was repeated: ‘‘We are person-cen-
tered.’’ Meaning, the organization is focused on serving the
needs of their vulnerable adult clientele, and as one
employee stated, ‘‘Looking at each person as an individual
and what’s most important to them.’’ While laudable, the
definition of being person-centered was enacted within the
culture as ‘‘client-centered.’’ This was a perfect example of
a gap between espoused (what we say) and enacted (what
we do). Descriptive language about this theme, pervasive at
the upper levels of corporate staff, was jargon-laden and
industry specific. As a result, the corporate employees were
asked to clarify the meaning of person-centeredness in their
culture. Corporate employees included verbiage such as
ethical culture, quality, staff, and doing the best for people
as person-centeredness. One corporate employee took it a
step further and said Ability, Inc. was ‘‘human-service
focused’’ and then simplified to ‘‘human-focused.’’
Unfortunately, employees were being left out of the
‘‘human-focused’’ equation at Ability, Inc.. Employee
recognition programs were nonexistent in both theory and
practice. Document analysis scarcely revealed a hint of
employee recognition, and the organization failed to rec-
ognize even one employee at its annual fundraising fête.
I do think we would say we’re also employee cen-
tered. If you take care of Ability, Inc., Ability, Inc.
will take care of you. So, I do believe people feel that
as part of our culture. –Corporate Employee
I think the focus is primarily client focused, but we as
staff provide the services [and are] also very impor-
tant. –Satellite Employee
As evidenced by these quotes, espoused values of per-
son-centeredness at the corporate level were not enacted at
the satellite. As such, a gap existed between hierarchical
levels and was heightened by geographic distance.
Proximity Impact
It was quickly apparent after early focus groups and con-
firmed at every subsequent one that there would be a gap in
issues related to proximity: between employees based at
the corporate office and employees based at satellite offi-
ces. The 2011 employee survey found significant variation
in responses across job types and locations in many areas.
Specifically, gaps were present in employees’ ability to use
the VBDMM and recognize the importance of the tool after
orientation. Simply, the further away an employee was
from corporate headquarters, the more out of touch they
were with espoused values. Thus, enacted values differed
from espoused which led to incongruity.
During a satellite focus group, the researcher asked how
often executive staff members visited satellite offices. A
member of the corporate office said, ‘‘October is Disability
Awareness Month. The executive staff goes out every
October and does what they call a Road Show.’’ The eight-
person executive team traveled to all seven satellite loca-
tions and met with the staff after hours. When asked how
the road show fit into the company culture, satellite
employees responded:
When the executives come down during October, they
kind of look around and we feel we’re being snubbed
a little bit.
[Referring to the executive road show] Well, they take
a tour and it’s like, make sure everything looks nice
because the executive team is coming!
All of a sudden, when they come down, we have 20
million little things that work for us that we have to
change.
The executive team’s road show contributed to the gap
by creating more work and providing little value. The visits
widened the gap between corporate and satellite members
because they were rare and special instead of often and
typical. Further, the road show visits occurred after clients
had departed for the day. Satellite employees viewed this
as executives not wanting to see ‘‘what really goes on’’
with clients. Executives viewed this timing as respecting
employees, being able to spend time with center-based staff
without distraction, and not wanting to upset the daily
routine of clients. Satellite employees often mentioned that
a good lesson for executives would be for them to do our
job for one day or I’d like to see them spend a day in my
shoes. There was a misperception that executives had not
been working in this industry before Ability, Inc., when
only two of eight executives had come from a non-human
service background. All of the program managers had
136 J. L. Craft
123
worked their way up from lower level positions in the
company as well. The CEO was a 36-year veteran of the
organization, the vice president of human resources, over
20 years. Misperception on both sides was rampant and
contributed to a large gap in respect and resourcefulness of
employees. A satellite employee, fed up with miscommu-
nication and constant budget cuts, bluntly declared, ‘‘We
bring in the money. We should decide where it goes.’’
Sustainability and Growth
A demarcation was clear on the subject of sustainability
and growth between corporate and satellite employees.
Corporate employees were overwhelmingly positive about
growth through change and sustaining Ability, Inc. for the
future. They saw the need for short term pain to obtain long
term gains or big wins. However, there was trepidation on
the part of corporate employees; they were unsure of the
direction of the organization, and how it would affect them
in the long run, but they were aware of the necessity and
importance of change to sustain and grow for the future. An
understanding of the big picture was easily seen by cor-
porate employees.
Conversely, satellite employees saw how the changes
promoting growth and sustainability were directly
impacting their clients in the areas of decreasing quality
programming; increasing employee-to-client ratios;
increasing the number of programs but not increasing staff;
organization of services; and communication with clients
and families. The most striking quote came from a satellite
employee in reference to the effects of growth at Ability,
Inc.. Simply, ‘‘We seem to have lost our heart.’’ Intrigued, I
asked the participant to explain the heart of Ability, Inc.
and how and when it was lost. The participant could not
say, only that it had diminished. No one else in that focus
group offered an opinion, so I introduced it in all of the
other focus group interviews. The conversation progressed
in one group in this way:
Employee: Moving into a new facility, a nicer facil-
ity… it was great. We were really excited. Then it
was like just more clients coming in, more and more
coming in. Bigger caseloads [are now the norm].
When I started as a facilitator I had eight people and
now I have 16 or 17.
Researcher: So, doing more with less? Aren’t all
businesses struggling with this?
Employee: I think that’s the state that every single
company is in, that we are being stretched to the max
and being asked to do as much as we can with the
same resources without any additional [support]. It is
basically like we are bringing in these new people
and it’s started to feel like they weren’t people they
were just revenue and we are just packing them in.
Researcher: You mean, like walking revenue?
Employee: Yeah, I think that was the biggest thing
that I struggled with. I understand we need to make
money. I understand we need to be sustainable. But,
at what point is that devaluing the services we pro-
vide to the people?
Researcher: So, which is most important: staying in
business or serving people? There’s no mission
without money.
Employee: We no longer work with people, we work
with revenue and that’s how people are being seen. I
don’t think it’s intentional. I think we get in between
a rock and a hard place. We need to survive as a
company, but we also need to serve people. Which
one’s got to give a little bit?
The gap between corporate and satellite employees was
evident in this area. Perhaps the recent changes had
changed employees’ views on the future direction of the
organization. In 2011, 74 percent of employees reported
they were confident in the future direction of Ability, Inc..
Corporate employees saw the changes and the need for
sustainability and growth as a utilitarian venture; Ability,
Inc. needed to survive for the next generation in order to do
the greatest good for the greatest number of people.
Satellite employees made individual sacrifices that affected
day-to-day lives of clients and families. Essentially they
were operating from a deontological perspective; it was
their duty to serve clients to the best of their ability. This
gap in philosophical perspectives will be explored in a
forthcoming publication.
Trust in Strategic Changes
Corporate employees tended to trust leadership and the
strategic changes they were initiating, perhaps because they
were closer to the action. Satellite employees mentioned
their distrust and fear of the changes but did not doubt that
intentions of those in leadership were good. This was an
important distinction. Can mistrust and good intentions co-
exist without negatively impacting the corporate culture?
Would better and more frequent communication of changes
remedy this mistrust? Satellite employees also raised the
issue that they did not know who to trust to share their
concerns.
It seems as though satellite employees wanted to believe
everything would be all right, but could not see it at this
point. The respect that had built up over time by leadership
essentially caused employees to fear, but continue to hold
on. This was especially evident in multiple quotes from
Common Thread: The Impact of Mission on Ethical Business Culture, A Case Study 137
123
corporate employees who cited their trust in the CEO. This
trust in the CEO was not evident from satellite employees,
perhaps because they were physically removed from her
daily presence, unlike at the corporate office:
After talking with [the CEO] I always feel like it is an
ethical place. I get that feeling from her.
You run into the president of the company in the
bathroom and she asks how your kids are and tells
some funny joke, and then it’s ok.
I asked employees, with the exception of the executive
staff, if they thought the change would turn out all right.
One employee summed up her feelings as skeptical, but not
cynical. People were nervous, but there was an underlying
trust in the leadership. It was a skeptical trust, nonetheless.
People wanted to believe the impending changes would
improve the company. It seems as though they forced
themselves to trust leadership even though they did not like
the lack of communication and uncertain future. Impactful
statements in this area revealed that most employees
thought leadership staff had the best of intentions.
Employee frustration was not personal:
I know [executives] are trying and I trust them
completely. I know they have the best of intentions.
I’m still up in the air if this is the right direction. I
really feel like the people up in the office really have
the best of the intentions. I really do. I feel this
company really cares about people.
Employee’s recognized that it was difficult to make
decisions that impacted the strategic health of an organi-
zation. It was a difficult job, one that many employees were
happy to not have to be responsible for. One front-line
satellite employee stated this in response to being part of
the decision-making executive staff, ‘‘I wouldn’t pay a
million bucks to be in their shoes, neither.’’ The 2011
employee survey showed a 70 percent favorable rating for
managers’ demonstration of employees’ importance and
confidence in management’s direction for the future of
Ability, Inc.. However, just two years later, the trust gap
widened between hierarchical levels and geographic
locations.
Employees Feeling Supported and Valued
A large gap existed between corporate and satellite
employees in the area of feeling supported and valued. In
general, corporate employees felt supported, valued and
heard. No excerpts from the corporate office existed that
discussed the opposite. Overall, satellite employees
expressed that over time they felt ignored, dismissed, and
invisible. No excerpts from satellite offices existed that
discussed feeling valued, recognized or heard. When asked
in 2011 about resources and support received, employees
rated this category as 75 percent favorable.
As part of the project, the researcher attended the
Annual Celebration. With over 900 people in attendance,
the Annual Celebration was a glitzy fundraiser for costly
equipment such as handicap accessible vans, which can
cost upward of $100,000. The awards, stories, and
fundraising auction were fun and inspiring. The audience
clapped when money was raised and cheered for award
recipients. Clients (people receiving services), volunteers,
employers (locations at which clients are employed), and
advocates (people who raise money for the organization
and advocate for state support) were recognized for their
achievements and service to the organization.
Tonight we recognize the talents, strength of char-
acter, and the desire the people we serve have to
succeed. We also want to showcase our commitment
to providing excellent, innovative, and quality ser-
vices to the community. –excerpt from CEO opening
remarks at Annual Celebration
Clients attended the event with either family or resi-
dential assistants. Many of the Ability, Inc. employees
worked second jobs at residential facilities and were in
attendance in this capacity. It was a work day for many
employees, not a celebration. Shockingly, not one
employee was recognized at the event. Little recognition
existed beyond a supervisor pat on the back and the
intrinsic rewards gained from helping clients. This was a
major shortcoming that was brought up repeatedly at each
satellite location and was echoed in the 2011 employee
survey wherein only 62 percent of employees felt recog-
nized by the organization. An exploration of the implica-
tions of nonexistent employee recognition and the changes
made by the organization is planned for a future article.
Table 3 plots themes and values in a matrix format, as
recommended by Miles and Humberman (1994). The gap
in the consistent definition of person-centeredness nega-
tively impacted both ethics and respect. Corporate
employees and those in management espoused person-
centeredness but enacted client-centeredness. This gap
violated the ethics and respected values by dishonoring the
importance of employees and damaging the integrity of
leadership. The gap in proximity impact to headquarters
related to all four values. This gap opposed the ethics value
by violating the mission; the respect value by not pro-
moting win/win situations for employees; the responsive-
ness value by showing disrespect for satellite employees’
ideas and choices; and resourcefulness value by asking
employees to overextend themselves in the name of
increased efficiency. The gap in sustainability and growth
also touched all four values. This gap violated the ethics
value in that it contradicted the mission of serving clients
138 J. L. Craft
123
well; respect in that employees felt left out of the changes;
responsiveness in that delivering on commitments of
quality seemed compromised due to a focus on efficiency
rather than effectiveness, a key component of resource-
fulness. The gap illustrated in the trust theme mainly
impacted the respect value in that mistrust of executives
eroded the respect employees had for them both personally
and professionally. In turn, the employees became cynical
of changes and resorted to language, doubtful at best and
defamatory at worst, within the focus groups. Perhaps this
disparaging viewpoint was related to the final theme of
employees not feeling supported and valued. Budget cuts
forced everyone to find ways to cut costs, but the satellite
locations seemed especially affected. Empowering lan-
guage was not backed up with supportive measures
(unethical, disrespectful); employees were burnt out for
long periods of time (unresponsive); and cost-cutting was
making work unmanageable (not resourceful).
Employees as Stakeholders
In the ethical business cultures model (Fig. 2), Ardichvili
et al. (2008) found the ethical ‘‘tone at the top’’ or the
example set by leadership to be the third characteristic of
ethical business cultures: leadership effectiveness.
Respondents in their study indicated the decisions and
actions of senior management to be an important trait as
well as consistency between words and actions. Further,
Argyris and Schön (1978) contended that congruence
between words (espoused values) and actions (enacted
values) results in increased, long-term effectiveness. The
espoused values of person-centeredness as the heart of the
organization did not translate to an enacted value for
employees. Yes, clients were at the center of the organi-
zation, but person referred to all persons, not just clients.
The exclusion of employees was not recognized, or at least
voiced, at the higher levels of corporate oversight.
Differences in proximity—employees who worked at
satellite versus corporate—impacted the perception of
leadership effectiveness. Activities such as the Executive
Road Show were negative at satellite offices and positive at
corporate. Strategic changes were positive at corporate and
misunderstood at satellite offices. Gaps in the appreciation
of sustainability and growth measures, including cost cut-
ting and process improvements, were highly visible
between hierarchical levels and locations and led to
decreased trust in leadership’s view of the future.
Employees did not feel supported or valued, and manage-
ment did not recognize this large gap in espoused versus
enacted values. Taken together, these findings negatively
impacted the leadership effectiveness characteristic of the
ethical business cultures model (Ardichvili et al. 2008) and,
as such, weakened the ethical business culture.
RQ 2: To what extent did incongruent values impact
the ethical business culture?
Incongruent values negatively impacted individual morale
and location-specific motivation more than the overall
ethical business culture. In this section, findings are applied
to the five components of the ethical business cultures
model in order to understand how the values impacted each
area. The four components of the VBDMM are graphed
visually to illustrate which component was enacted and
activated most, but to also show the prevalence of the four
components in the culture, which would show support for a
healthy ethical business culture. Four key findings within
the ethical business culture are discussed: personal values,
reputation as an industry leader, evidence of a strong cul-
ture and mission as heart.
Mission as ‘‘Lifeblood’’
The five characteristics of ethical business cultures, as
developed by Ardichvili et al. (2008) were evident at
Ability, Inc. (Fig. 2). The significant characteristic of the
ethical business cultures, the ‘‘lifeblood of the organiza-
tion,’’ (p. 449) was the mission. The mission of Ability,
Table 3 Incongruent values applied to the four components of the VBDMM
Values[ themes Ethics Respect Responsiveness Resourcefulness
Person-centeredness Espoused: we are person-centered enacted: we are client-
centered
Proximity Impact Espoused: all employees are important. All jobs are valued
Enacted: corporate employees are important. Corporate jobs are valued
Sustainability/growth Espoused: growth is necessary for the future. Efficiency is key to sustainability. Enacted: growth disregards
the mission of serving clients well. Effectiveness suffers
Trust in strategic changes Espoused: trust enacted: skepticism
Employees feeing support/valued Espoused: employees are empowered, valued, and supported.
Enacted: employees are ‘‘stretched thin,’’ undervalued, and unsupported
Common Thread: The Impact of Mission on Ethical Business Culture, A Case Study 139
123
Inc., to serve people with disabilities, drove the culture.
Alignment of mission was vital in developing organiza-
tional norms. This was seen in the alignment of personal
values and organizational values, agreement that Ability,
Inc. was an ethical organization, and shared dedication to
innovation and quality. In the findings, ethics was referred
to as lived and breathed, which was a metaphor for the
‘‘lifeblood’’ referred to by Ardichvili et al. (2008). How-
ever, it was also stated that Ability, Inc. had ‘‘lost its
heart.’’ If the mission was the lifeblood, what was the
heart? Perhaps employees were the heart, which was why
they could not identify it—they were enmeshed in the
situation, and their perspective was skewed. Along these
lines, alignment of mission was unclear due to inconsis-
tencies in sustainability and growth values. Stakeholder
balance was weakened because of the lack of attention
placed on employee welfare and satisfaction. However,
multiple surveys revealed that these categories of stake-
holders were consistently pleased with the value received
for services. Findings indicated process integrity in the
areas of dedication to quality and investments in values-
based and ethics training. These areas were clear and
consistent. Corporate governance processes were outside
the scope of the research, and decision-making was not
transparent overall. Leadership effectiveness received
mixed results in that leaders were praised for their good
intentions, innovation, quality, hope, and ethics. Yet,
leadership effectiveness was hindered by mistrust, lack of
support, and a desire to rebrand and centralize. Finally,
long-term perspective was evident in the placement of
mission above profit and long-term gain over short-term
benefits. Changes at Ability, Inc. were occurring in order to
prepare for the future in anticipation of reduced govern-
ment funding. In short, a long-term perspective had been
adopted even though some gaps were widening in at
present.
Values-Based Decision Making Model Components
Ethical values were consistent in both corporate and
satellite locations and played a significant role in the cul-
ture. Overall, employees believed Ability, Inc. was an
ethical company, regardless of the impact of change in the
current timeframe. Respect was shown to be a consistent
value in application to coworker and client relationships.
Resourcefulness was seen as balancing efficiency with
effectiveness and doing more with less while keeping
quality programs intact. In addition, remaining responsive
to client needs and maintaining the dedication to serving
them were paramount in the research.
Figure 3 depicts the use of the terms ethical, respectful,
responsive and resourceful in the language. Enacted doc-
uments (focus group transcripts) showed a greater number
of terms used than espoused (i.e., employee handbook,
decision-making training, newsletters, and strategic plans).
Rather than focusing on the numerical difference in fre-
quency between espoused and enacted values, the more
important takeaway from this chart is that the four com-
ponents were truly active in the culture.
Personal Values
A clear link was found between personal and corporate
values. A strong enacted value without a gap between
corporate and satellite locations, personal values, spoke
strongly about ethical decision making and maintaining an
ethical business culture. When the question was asked, do
you hire ethics or develop them? invariably, respondents
thought people who were hired could be screened for ethics
that matched the organizations. However, in speaking with
the staffing manager, she did not concur. In her view,
people who were hired were trained by their peers and
coworkers in the area of ethical decision making. Meaning,
this is how it’s done here, gets translated across the hier-
archy and from immediate supervisors rather than existing
organically within individual employees.
This disjunction contrasted with the respondent view. It
seemed as though people with a caring, serving character
were naturally attracted to the field of human services.
Perhaps participants were used to their lives mirroring the
four components and could not distinguish if they came
into the organization with these values, if they were
developed, or enhanced. Further, it may have been possible
that Ability, Inc. gave employees the language of personal
values that mirrored their own, and employees were able to
better articulate the values now than they did at their point
of hire. Regardless, personal values played a large part in
ethical decision making and influenced ethical business
culture. Three excerpts from varying locations illustrate
this finding:
Our clients are treated very ethically just because of
who we are and the people in this field. The people
23
45
8 5
74
49
19
45
0
10
20
30
40
50
60
70
80
ETHICAL RESPECTFUL RESPONSIVE RESOURCEFUL
ESPOUSED
ENACTED
Fig. 3 VBDMM components represented in the language
140 J. L. Craft
123
working here wouldn’t be here if they didn’t have that
value.
People I know and myself, I live it in my own life too.
The [VBDMM] is used in Ability, Inc. because people
believe in, agree with and relate to those ethics. It is
aligned with their personal ethics.
I don’t need [the VBDMM] in front of me, it’s how I
live
Industry Leader
Ability, Inc. was considered an industry leader by the
employees with a reputation of being ethical and playing
by the rules. According to the most recent employee sat-
isfaction survey, 78 % of employees agreed that the
organization showed a commitment to ethical business
decisions. One manager stated that some social workers
purposely did not refer clients to Ability, Inc. because they
know we won’t bend the rules. Employees in multiple
locations told stories of self-reporting mistakes to vendors,
families or government, which illustrated the responsibility
of the organization for maintaining their ethical reputation.
Employees told stories about working for competitors or
residential care facilities in which they saw unethical
practices abound. One manager stated that the best lesson
he received in the importance of ethics occurred when he
worked for multiple competitors before coming to Ability,
Inc. Only after he started working for this firm did he see
the difference in ethical business culture.
When I came, I firmly thought we were light-years
ahead in terms of professionalism. But since being
here and going through process improvement and
some tough leadership changes, it’s gotten even
better to the point where we are recognized at a level
we’ve never been before. The business community, as
well as with our peers and other industries similar to
ours, so that just makes me so much more proud to
work here – being part of that.
Executives used the four components in strategic plan-
ning and long-range forecasting which they believed gave
them a competitive advantage in the industry. There were
high expectations to maintain their industry leader status,
grow, improve, and excel. There are also high expectations
of employees to remain ethical, serve clients, work hard, and
do their best. Strategic changes may have impacted short
term attitudes and the faith employees had in leadership, but
research showed, specifically in consistent values such as
intentions, dedication, innovation and hope, that the direc-
tion the leadershipwas taking the companywas the right one.
There are high expectations but it doesn’t feel bur-
densome, it feels freeing. Nobody is saying, ‘Did you
get that done? Get that done?’ No one’s
micromanaging.
Strong Culture
Beyond the four individual components, a strong culture
existed in general. Respondents identified with Ability, Inc.
in various ways, including purchasing popular logo wear,
joking about common occurrences, and realizing ethics was
also important in ‘‘sticky situations.’’ During the executive
focus group interview, I learned that Ability, Inc. created
logo wear with the VBDMM emblazoned on clothing
(Fig. 4). That was my first indication that a strong culture
surrounding the VBDMM and ethics existed. When
describing the logo wear, two executives had this exchange
about color:
Executive 1: [The shirt] was light blue
Executive 2: No, [the shirt] was our blue
Saying the shirts were ‘‘our blue,’’ indicated a strong
identification with color in addition to employees feeling
enough connection to don clothing that showed the
VBDMM. Employees also felt comfortable enough to joke
about ethics as if it were just another part of the work day.
In the administrative focus group interview, an employee
joked about ethics in this way, illustrating that ethics had
become part of the daily routine:
It’s like when you’re on hold in your office and you’re
just looking around and you think ‘‘this is not ethical,
I’m on hold!’’
[shared laughter]
Topics that can be mutually joked about become a part
of the culture because a shared joke is powerful. A
Fig. 4 The values-based decision-making model on clothing
Common Thread: The Impact of Mission on Ethical Business Culture, A Case Study 141
123
common viewpoint shared seriously was that ethics was
most visible in times of trouble.
I think ethics is really used when we make mistakes.
Ethics was present even when it caused the company to
admit mistakes, which supports the earlier point about
remaining an ethical leader and protecting the company’s
ethical reputation. In earlier examples, ethics was used in
correcting billing issues, vendor bids, and state reporting.
Building on these examples, ethics was described as being
‘‘lived and breathed.’’
Mission as Heart
The mission of Ability, Inc. is to serve our community
and people with disabilities as we live and work
together.
Ability, Inc. is a nonprofit organization that helps
people with disabilities live fuller lives that are
integrated into the flow of community experience.
Through employment at area businesses, social
enrichment opportunities, and customized support
services, Ability, Inc. provides the tools clients need
to build the lives they want to live.
The excerpts above are from documents published by
the organization and are often seen on the website, and in
annual reports and newsletters. Overall, Ability, Inc. is
committed to its mission. The employees referenced mis-
sion-driven decisions and improving client services fre-
quently, as seen in the consistent enacted values categories
of dedication, quality, rewarding and innovation. Taken
together, the mission was the heart of the organization.
Early in the focus group research, a supervisor tenta-
tively whispered, ‘‘it seems like we’ve lost our heart.’’ The
room went silent. After a pause, the remaining participants
agreed. The researcher probed, ‘‘what’s the heart?’’ No
consensus was reached. In focus groups that followed, the
same question was asked to try to identify the heart of
Ability, Inc.. Varying explanations were given including
the mission, core values, clients, and employees. Consider
these excerpts:
I would agree that there is always a mission out
there. There are always goals, but at least when I
started, it felt more like the goals were very profes-
sional; more process oriented. But it’s more… the
heart is still there. (?)
I remember there just being this overwhelming sense
that everybody was committed to the mission. (?)
Ability, Inc. is still Ability, Inc. Internally, so many
changes have happened. Changes are here to make
sure things work out. The core values are still there.
(?)
There have been changes in turnover, but it’s really a
culture of dedication to the mission. That’s the one
overriding thing in this workplace. (?)
There is a common thread towards the mission, how
people generally provide services, more or less how
people interact with the clients. (?)
To me, that’s part of losing our heart because the
service is not personalized. (-)
They used to say that the employees were the back-
bone, the whole heart of Ability, Inc. It used to be our
decision to hire someone or not. It’s not participatory
any more. (-)
What is interesting about this spread of opinion about
the heart of Ability, Inc. is that all positive comments (?)
were from corporate staff and all negative comments (-)
were from satellite employees. Every level and location
within the company is represented by these excerpts.
Examining these comments and taking into consideration
the remaining research, the researcher concluded the heart
of Ability, Inc. to be the mission, serving clients. The
concerns with losing our heart centered on two main
aspects: clients and employees (i.e., not serving clients in
the best way possible and failing to properly recognize
employees). Support for this statement is seen in nearly all
of the incongruent values.
Conclusion
This case study explored the impact of values and mission
on ethical business culture. First, the researcher investi-
gated the consistency between the stated and actual values
in the organization and applied the values identified to the
four components of the VBDMM: ethics, respect, respon-
siveness, and resourcefulness. Espoused values that are
consistent within the organizational culture strengthen an
organization’s reputation and provide external legitimacy
(Argyris and Schön 1978; Kabanoff and Daly 2002; Siehl
and Martin 1990; Sutton and Callahan 1987). The organi-
zation’s reputation as a leader in ethical behavior in its
industry was found to be prevalent in the espoused values
of the employees. In addition, external legitimacy was
strengthened by the organization’s well-known commit-
ment to ethics. Doing business ethically was evident in the
research and consistent in espoused values, which
strengthened its external legitimacy. Positive congruent
values also existed in the necessity for change; alignment
of organization and personal values; respect for coworkers;
enjoying a fun work environment; committing to innova-
tive and flexible programming; empowering the work
environment; providing hope for the future; and dedicating
to quality and customer service. Together, congruent
142 J. L. Craft
123
enacted values illustrated a strong, positive corporate
culture.
Negative congruent values were found to exist as rep-
resented by a shared perception of disconnection between
the corporate and satellite offices; a longing for a more
familial work culture; an admitted lack of timely commu-
nication regarding strategic changes; dissatisfaction with
centralized decision-making; and the shared burden of a
frenetic pace. Argyris and Schön (1974) cautioned that
such behaviors would eventually lead to organizational
entropy, the unavoidable and steady decline of a system or
culture.
Incongruent values, those that differed between either
hierarchical levels or organizational locations, illustrated
the need for intervention in several areas. Differences in
these areas further elucidated variation in perceptions in
regard to support and value within the organization; level
of trust in leadership; standardization and corporate
branding; sustainability and growth for the future; the
definition of person-centeredness; and an understanding of
how changes affect workload burnout rates. If left unad-
dressed, all of these areas may eventually corrupt an
otherwise positive, strong, ethical culture.
Consistent themes present in the culture and reflected in
the use of the VBDMM. A clear link was evident between
personal and corporate values. Bowen (2004) asserted that
a high degree of consistency between personal and orga-
nization values supported an ethical decision-making cul-
ture; this study supported Bowen’s assertion. Employees
frequently stated that ethical decision making was a natural
consequence of their own personal values and instinctively
carried through to their corporate decision making. Evi-
dence was found for a shared identification as an ethical
industry leader with a strong culture of shared ethics. One
example of this strong culture was the creation of clothing
that depicted the VBDMM components and the description
of the color as ‘‘our blue.’’
Perhaps most important was the value placed on the
mission. Brinckerhoff’s (2009) statement that nonprofits
pursue their mission rather than chasing profits and Roth-
schild and Milofsky’s (2006) assertion that nonprofits exist
to convey a ‘‘public statement of what their members see as
a better, more caring or more just world’’ (p. 136) rever-
berated throughout the findings in this area. The mission
was described as the ‘‘heart’’ of the organization that was
both ‘‘lived and breathed.’’ Dedication to the mission and a
commitment to supporting the core values were vital within
the culture. Even though employees spoke of ‘‘losing our
heart,’’ but could not come to consensus on the heart of
Ability, Inc., the findings were clear to the researcher, an
unbiased outsider: the heart of Ability, Inc. was the mis-
sion. The mission was the common thread that wove itself
within each employee, nurturing compassion for their
vulnerable adult clients and cultivating relationships with
their families. The common thread of mission was present
at each location and at every level of the organization in
words and actions. Helping clients make meaningful con-
tributions to society and, in turn, receiving their thanks and
gratitude motivated underpaid and over-worked staff
members to press on and hope for better. A workforce
grounded in ethics that consisted of employees who pos-
sessed a strong commitment to the organization’s mission
overcame the negative impact of incongruent values on the
ethical business culture.
Limitations and Suggestion for Future Research
This study consists of three data-collection tools: document
analysis, focus group interviews, and existing survey data.
Limitations within each collection method, as well as in
qualitative research in general, are common. Focus group
data limitations include distorted responses due to personal
bias, anger, anxiety, politics, and simple lack of awareness.
Emotional states could have had a significant impact on the
interviewee. Interview data are also subject to recall error,
reactivity of the interviewee to the interviewer and self-
serving responses. Document and record review limitations
included the possibility of inaccuracy or incompleteness
and variability of quality or detail. Focus group limitations
included the impact of thoughts, opinions, or feelings of
individuals by others in the group, inaccurate statements,
dominant individuals, and researcher bias in interpreting
nonverbal data. A further limitation exists because the
study elicits data from a single source within one industry.
As with any qualitative research design, findings were
exploratory and not generalizable. Care should be taken
when viewing the study results in context of another
organization or industry with decision-making methods,
codes of ethics or ethical cultures that differ from the
organization in this case study.
This study could also be replicated at other types of
organizations such as smaller nonprofits, government
entities or for-profit companies. An interesting comparison
would be to reproduce this study at a similarly sized for-
profit organization and compare the results to assess the
differences in ethical decision making between the two
types of institutions. In addition, a study investigating other
organizations that use VBDMMs and how the models
influence ethical decision making may be valuable.
These findings were part of a larger study. Two articles
are planned for publication. The first article will report the
impact of competing philosophical paradigms on ethical
business culture and decision making. The second will
explore the role of human resource development in reme-
dying the scarcity of employee recognition, both formal
and informal. In addition, initiatives the organization
Common Thread: The Impact of Mission on Ethical Business Culture, A Case Study 143
123
undertook as a result of this case study and its recom-
mendations will be included in the forthcoming article.
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Common Thread: The Impact of Mission on Ethical Business Culture, A Case Study 145
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Journal of Business Ethics is a copyright of Springer, 2018. All Rights Reserved.
- Common Thread: The Impact of Mission on Ethical Business Culture. A Case Study
- Abstract
- Supporting Literature
- Institutional Values
- Espoused Versus Enacted Values
- Key Terms Defined
- Ethical Business Culture
- Ethical Decision Making
- Mission-Driven
- Methodology
- Findings
- RQ 1: To what extent were gaps found between espoused and enacted values?
- Congruent Values
- Negative Congruent Values
- Positive Congruent Values
- Incongruent Values
- Person-Centeredness
- Proximity Impact
- Sustainability and Growth
- Trust in Strategic Changes
- Employees Feeling Supported and Valued
- Employees as Stakeholders
- RQ 2: To what extent did incongruent values impact the ethical business culture?
- Mission as ‘‘Lifeblood’’
- Values-Based Decision Making Model Components
- Personal Values
- Industry Leader
- Strong Culture
- Mission as Heart
- Conclusion
- Limitations and Suggestion for Future Research
- References

