Exploring organizational characteristics connected with ethics institutionalization

Purpose This study aims to identify organizational characteristics associated with different levels of ethics institutionalization and to understand how they contribute to the development of robust ethical frameworks. By examining these characteristics in an integrated manner, the research offers deeper insights into the organizational factors that support the establishment of strong ethical practices. Design/methodology/approach The study identifies key attributes connected with ethics institutionalization using a complex of diverse background variables such as organizational size, regional location, industry, ownership type, legal form, organizational age, profitability and professional association membership. A two-step cluster analysis and Chi-square tests were conducted on a representative sample of 1,295 Slovak organizations, stratified by company size and region. Findings In the subset of micro/small organizations, high ethics institutionalization is linked with private foreign ownership, the construction industry and company location in Western Slovakia. For medium/large companies, ethics institutionalization is connected with foreign ownership, presence in the capital city region, joint stock structure, association membership and profitability. Research limitations/implications This study was limited to organizations operating within Slovakia, which may impact the generalizability of findings to other regions. In addition, the study focused on a defined set of organizational characteristics, potentially overlooking other factors that could influence ethics institutionalization. Practical implications This research highlights which segments of businesses may benefit most from targeted ethical policies, offering managers a foundation for more effective decision-making in organizational ethics. The study’s findings can help policymakers identify specific business segments or company types needing additional regulatory guidance or support. Social implications As businesses implement more robust ethical frameworks, they contribute to raising standards across the market, promoting fair practices and reducing the occurrence of unethical behavior in business, which can have broad societal benefits. Originality/value This research advances theoretical and practical understanding of organizational ethics by examining a range of organizational characteristics, rarely explored in conjunction, with respect to ethics institutionalization. The uniqueness of this study also lies in its focus on one of the Central and Eastern European countries, a context that remains understudied in business ethics, providing valuable perspectives on a posttransformation business environment.