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Effects of Ethical Management on Job Satisfaction and Turnover in the South Korean Service Industry

  • Kim, Jong-Jin (Distribution Economics, Dream Big Institute of Industrial Economics) ;
  • Eom, Tae-Kyung (Major in Health Industry Distribution, School of Medical Industry, Eulji University) ;
  • Kim, Sun-Woong (Dept. of IT & Marketing, Graduate of Eulji University) ;
  • Youn, Myoung-Kil (College of Health Industry, Eulji University)
  • Received : 2014.03.12
  • Accepted : 2015.03.14
  • Published : 2015.03.30

Abstract

Purpose - Ethical management connects corporate management outcomes and emphasizes organizational cooperation. It also links human resource management, auditing, and financial management to increase employee job satisfaction. A survey of American enterprises showed that employees with high ethical consciousness had greater job satisfaction and lower turnover. Research design, data, and methodology - Hypotheses and models based on previous studies were used to investigate the effects of ethical management on employee job satisfaction and turnover intentions. To examine hypotheses empirically, a questionnaire survey based on previous studies was administered to service business workers in Seoul. Results - The study investigated the effects of ethical management practices in relation to factors such as top management's willingness to put them into practice, their appropriateness and implementation within operations, and their influence on job satisfaction, and also examined the effects of job satisfaction on turnover intentions. Conclusions - Ethical management greatly influences job satisfaction and turnover intentions, providing organizational members with alternatives regarding ethical considerations, and to place a strong emphasis on management willingness and enterprise regulations and policies.

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