Do Ethics Matter? Investigating Donor Responses to Primary and Tertiary Ethical Violations

Abstract

This study examines how frequently committed ethical misconduct regarding values closely aligned to an organizational mission affects stakeholders’ pro-organizational responses to an offending nonprofit. Using a 2 × 2 experimental survey, findings showed that ethical misconduct in primary values resulted in significantly decreased positive attitudes toward and donation intentions to the organization. Also, the patterns of unethical behaviors significantly increased stakeholders’ negative attitudes toward the organization and willingness to assign the organization responsibility for unethical behavior. Perceived organizational responsibility for ethical misconduct and deteriorating organization–public relationships (OPRs) were significant mediators for the effects of primary ethical violations.