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Introduction
Current business literature explores many instances of unethical behavior and corruption. Some studies indicate that unethical behavior easily diffuses by means of interdependence among stakeholders, thereby forming a "self-reinforcing cycle" (O'Higgins, 2006, p. 235). Many scholars (Kulik et al. , 2008; Lange, 2008; Pinto et al. , 2008) also share similar opinions about the aptness of the spread and dissemination of unethical behavior. If unethical behavior can be disseminated, and this seems to be inarguable, then can the recognition and behavior of business ethics also spread?
Some of the existing literature does hint at the possibility of ethics diffusion. Feldman (2007, p. 406), for example, believes managerial systems such as selection, promotion, or training can "transmit moral traditions." If business ethics can be transmitted and replicated, then there is a chance for self-sustainable and diffusive business ethics. This opportunity lies in perceiving, emphasizing, and propagating interdependency during the application of business ethics. Moreover, such ethical diffusion is possibly advantageous to innovation and beneficial for various stakeholders. After all, business ethics is already observed in the relationships of people in the business community. In particular, ethical companies are often correlated with innovative ones (Gebler, 2007). Ethical companies are also more likely to protect, diffuse, and support critical values, such as respect and trust, which make employees feel safe and empowered to manage different or multiple stakeholder situations. There are also more possibilities for employees to adopt innovative ways to solve problems consciously and spontaneously.
Therefore, this study applies a quantitative research approach to outline and test the diffusion of business ethics in order to determine the conditions under which business ethics diffusion can effectively operate and benefit service innovation within an organization. The sampling for this study has been taken from the travel and tourism industry, which relies almost entirely on people, with emphasis placed on examining service innovation in response to various customer requests.
Theoretical background
Business ethics and its diffusion
Business ethics is intrinsic to innovation, acting to satisfy a business's survival and to advance its reorganization and capabilities in the world of commerce, whether that be understood as applying personal ethics to business environments or as creating a positive ethical environment within companies (Goodspaster, 1983; Reilly and Kyj, 1990). Nevertheless, for active...