ETHICAL CLIMATE AND RULE BENDING: HOW ORGANIZATIONAL NORMS CONTRIBUTE TO UNINTENDED RULE CONSEQUENCES

Abstract Rules help ensure consistent employee behaviour, yet rule bending occurs in public organizations every day. Previous research indicates that rule bending is influenced by organizational structure and personal characteristics (DeHart‐Davis 2007). This present study considers the influence of organizational norms on rule bending by exploring the impact of ethical climate, which signals to employees the best course of action when faced with situations that are ethical in nature (Victor and Cullen 1987, 1988). To investigate this relationship, survey data from employees of a large American local government are analysed. Results from a structural equation model show that three ethical climates – ‘organization interest’, ‘team interest’, and ‘rules/ SOP ’ – significantly influence rule bending. Findings suggest that organizational norms play a critical role for employee behaviour and public managers can consider rule bending and ethical climate as impetuses for organizational change.