Industrial and Organizational Psychology

Industrial/Organizational Psychology

Current trends in industrial/organizational psychology center on the evolution of companies from being profit-oriented to becoming socially responsible and ethical business organizations. Inherent in this evolution is the need to develop a more ethical work practices within the company and a more socially responsible approach to marketing strategies towards the consumers. The following discussion highlights findings from three (3) articles focusing on the themes of social responsibility and ethical work behavior in business organizations. To make these themes more relevant, each article's main thesis and argument will be applied in the context of the multinational company (MNC), Procter & Gamble (P&G).

Pastorizo et. al.'s (2009) study centered on the role that ethical work behavior plays in 'generating' social capital for business firms and companies. The authors promoted this theme through the concept of the Organizational Social Capital (OSC), defined as "a resource reflecting the character of social relations within the firm, realized through members' level of associability and shared trust" (Leana and Van Buren, as cited in Pastorizo et. al., 2009, 478). According to the authors, an "ethical work context" contributes to OSC because it allows managers of business organizations to look at their roles as more than implementers of business operations and systems, but also as leaders who "create a moral factor that inspires people's faith" (ibid.). Ultimately, an ethical work context in the company contributes to OSC, in effect "humanizing" and "personalizing" the employee-employer relationship and organizational culture of the company, and positively influecing employees' satisfaction and motivation to perform in the company (479, 482).

Indeed, the concept of 'ethical work context' has increasingly penetrated the core of major companies and business organizations in this age of technological advancement. Hartlieb and Jones' (2009) analysis of "ethical labeling" in companies extends Pastorizo et. al.'s discussion on companies' practice of ethical work behavior in business management. In Hartlieb and Jones' study, a company's ethical practices in the workplace are projected onto its products/services, making the products "ethical," resulting to the concept of ethical labeling (583).

Further into the 'trend' of promoting ethical work practices in the company, companies are also promoting their corporate image and improving their relevance to their communities by developing corporate social responsibility (CSR) programs. Secchi (2009) explored the 'cognitive side' of CSRs, and argued that CSR programs act as a "reinforcement mechanism…that, when exercised…works as a social tie between user (communities, recipients) and provider (companies)" (578).