The relationship between the ethical corporate culture and the perceived importance of ethics and social responsibility: evidence from Sri Lankan Government Banking sector

Existing literature reveals a gap in the theoretical and empirical knowledge in respect of the influence of the dimensions of ethical corporate culture on the perceived importance of the role of ethics and social responsibility in organizational effectiveness (PRESOR). The present study explores the relationship between eight dimensions of ethical corporate culture and the banking practitioners’ perception towards the importance of the role of ethics and social responsibility in the effectiveness of banking business within the context of Sri Lankan government banks. The study involved 102 banking practitioners from branches of two leading government banks in Sri Lanka. The results show that the dimension of ethical corporate culture: clarity, congruency of supervisors, congruency of management, feasibility, transparency and sanction ability are strong predictors of the PRESOR. However, two dimensions, namely supportability and discuss ability, are found to be poor predictors of the PRESOR. On The whole, dimensions those were recognized as strong predictors accounted almost 63% of variance in the PRESOR. Banking authorities in Sri Lankan government banks could focus their attention to these predictors in their initiatives to improve the ethical conduct in the respective banking organizations.