Enterprise ethical climate changes over life cycle stages

Abstract

PurposeLife cycle stages may see, result from, and/or cause, changes in culture and climate as the right‐brain attributes of both managers and their co‐workers. A four‐stage model is used to perceive these possible changes. Findings are tested in Slovenian enterprises. Differences per stages may be crucial and should therefore be known to managers/owners. Based on the case study research, this paper aims to suggest that enterprise awareness of importance of ethical climate can be of essential meaning for its long‐term success. The purpose of this paper is to discover differences in enterprise ethical climate in different enterprise life cycle stages and to identify their importance for active ethical climate care by the enterprises.Design/methodology/approachIn this paper, the qualitative research is applied. The research cognitions on ethical climate are discussed in application of the dialectical systems theory.FindingsThe paper finds that there are some differences in enterprise ethical climate for enterprise life cycle stages and indicates a significant presence of the “rule”, “law and code” and “instrumental” ethical climates. Movement towards a more bureaucratic method of enterprise functioning, as an enterprise moves from the pioneer stage towards the stage of turn‐over, was also found.Practical implicationsThis paper gives us some insights in the state of ethical climate in Slovenian enterprises. In a frame of practical implications, a further research should be done to show which measures of such ethical climate implementation should be used to stimulate the enterprises' innovative behaviour in accordance with the state of enterprise's life cycle stage.Originality/valueThe available literature does not provide for a similar research of linkage between the ethical climate and enterprises' life cycle.