Ethical Climate: Analyzing the Moderation Effect on Cardinal Virtues and Employees’ Cyber Security Ethical Behavior Intention in Ugandan Commercial Banks.

Abstract

Purpose: Ethics is the last issue that organizations ponder about when planning cyber security strategies. Yet Ethical behaviors have a big impact on the interactions with software and technology. The lack of employees’ cyber security ethical behavior and a weak ethical climate have encouraged security violations in the banks. Employees organize over 90% cyber security breaches and even cooperate with external attackers to cause havoc. This research aimed at understanding the moderation effect of Ethical Climate on the influence of the ethical virtues and cyber security ethical behavior in the central Ugandan commercial banks. Methodology: Ethical climate theory provided the conceptual framework for this study. The quantitative survey method utilizing an online questionnaire was used. Data was obtained from a sample of 240 commercial banks’ employees drawn from Centenary and ABSA banks’ branches in central Uganda. Partial Least Squares Structural Equation Modeling was used to test for casual relations between the study’s constructs. The data was analyzed and the hypothesis tested using Mod graphs. Findings: The results reveal that ethical climate effect on temperance, courage, prudence and justice was positive but insignificant. All the lines of the mod graphs were parallel meaning that the slope and the influence of cardinal virtues on cyber security ethical behavior intention is the same at all levels of the ethical climate. Inferring that Ethical climate does not moderate the influence of cardinal virtues and cyber security ethical behavior. Ethical Climate on the other hand had a positive and significant influence on cyber security ethical behavior. An increase in ethical climate positively influences an increase in cyber security ethical behavior. Contribution to theory and Practice: This research makes a theoretical contribution in promoting ethical climate as a theory that has a positive effect on employees’ cyber security ethical behavior. The research further provides a significant understanding to Ugandan banks administrators, policy makers and cyber security policy implementation committees of the substantial positive influence of Ethical Climate on connection between Virtue ethics and employees’ cyber security ethical behavior. Recommendation: The study recommends that the banks need to establish strong ethical climate to allow employees to continue observing cyber security ethical conduct. When the ethical climate is strong, employees experience a lesser amount of force to breach the banks’ cyber security.