Codes of ethics, corporate philanthropy, and employee responses

Although ethical management would seem to be a must in today's business climate, research and practical applications in the services industry and in developing economies remain scarce. Hence, the purpose of this study is to investigate the effects of codes of ethics and corporate philanthropy on the Korean services industry. The results demonstrate that, overall, a code of ethics directly affects corporate philanthropy and organizational engagement. Corporate philanthropy, in turn, positively relates to employee engagement and turnover intention. Turnover intention is explained by job and organizational engagement. The strategic importance of ethics management and the following philanthropic activities in the hospitality services are illustrated from the findings of this research.