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This paper sets out to investigate the effect of organizational culture on corporate social responsibility (CSR) in service companies in Estonia. CSR is defined here as a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.

In order to develop hypotheses, studies that relate culture at the organizational and societal level and social responsibility were analyzed, leading the authors to the hypotheses that the more extensively an organization engaged in CSR activities, the less likely would task‐orientation exceed relationship‐orientation in this organization, and second, organizational culture in general would be stronger. An empirical study was conducted in 17 service organizations operating in Estonia. It used task‐ and relationship‐orientation as characteristics of organizational culture. These data were obtained from an Organizational Culture Questionnaire completed by the randomly selected employees of respective organizations. Organizational culture data were supplemented by data on CSR, provided by top managers or appropriate persons in all organizations as a response to a questionnaire.

Results could not statistically confirm the hypothesis that strong organizational culture characterizes higher CSR performers, but results are inconclusive in this respect. On the other hand, there was no evidence that organizations with higher CSR are more relationship‐ than task‐oriented; however, relationship orientation was more strongly correlated with most CSR elements. The specific nature of services in the light of this result is discussed.

The current paper is the first attempt to systematically relate organizational culture with its CSR behavior. Based on literature review, the main contribution to the existing literature is the outlining of possible relationships between the two phenomena.

The aim of this paper is to evaluate how Estonian enterprises understand their position in the value chain, and to explore what kind of behaviour patterns correspond to the different positions. It also aims to focus on the question of whether and how Estonian enterprises see the need to improve their position in the value chain.

The approach is based on an empirical study in the course of which original interviews were conducted on the basis of a common plan (primary sources), and expert opinions were gathered on the basis of earlier studies. Two kinds of sources were analyzed to obtain an overview of the situation in Estonian companies in respect to strategy, and more specifically how companies evaluate their position in the value chain and what their aspirations for future are. First, the figureheads from the enterprises were interviewed in 14 enterprises. Second, expert assessments were drawn up about 25 enterprises. Those compiling the expert opinions possessed prior direct contacts with the enterprises under focus.

First, it was discovered that Estonian enterprises presented three types of behaviour patterns along with their interest in and/or potential for changing their position in the value chain. Second, several behavioural patterns were indicated by what the figureheads had to say about the current economic situation. Third, the main problems in Estonian enterprises were identified.

The study has limitations due to the number of companies that were investigated, and therefore the authors also admit a certain degree of subjectivity in the defining of the behaviour patterns. Nevertheless, this study highlights various issues that Estonian enterprises consider in respect to strategy.

The main value of the paper is its contribution to our understanding of which factors impact the development of Estonian enterprises. This knowledge allows us to analyze how organizations from former Soviet bloc countries can better manage their position in the value chain.

The aim of the study is to explore the relationship between organizational leadership capability and organizational performance in the context of market orientation in Estonian financial services organizations.

A total of eight organizations from the Estonian financial services sector participated in this study: the five largest banks (∼95 per cent of the market), the largest leasing organization (∼50 per cent of the market) and the two largest insurance companies (∼50 per cent of the market). The data used includes: aggregated and non‐aggregated evaluations by customers, and aggregated financial data. The methodology combines two approaches for testing the hypotheses: a quantitative OLS regression analysis of the evaluations from 555 customers, and ranking mean values of the aggregated assessments from customers and financial data in quartiles for all eight organizations.

The results of the study reveal a relationship between specific organizational leadership capabilities and organizational performance.

The study suggests that the positive relationship between leadership and organizational performance at the organizational level explains how an organization manages in the context of its external environment. However, the results of the authors’ investigation are only valid in the Estonian financial services context, and the influence of organizational leadership capability on organizational performance in organizations in other service sectors could differ from these results.

This paper demonstrates that organizational leadership capability, expressed as the interaction between the main behavioural principles of an organization marked as organizational orientation and adaptation, has a clear relationship with organizational performance.

Estonian companies have been in a continuous state of change for the past 15 years, and there is still a lot to be done to achieve welfare levels comparable with developed countries in the European Union. The crucial question is how to achieve employee commitment to organisational change. The aim of this research is to highlight employee attitudes toward organisational change and how organisational culture can influence these attitudes in a rapidly changing environment.

A model showing the connections between organisational culture and employee attitudes in the organisational change process has been developed as the theoretical conceptual frame for the study. The empirical study was conducted by the authors in 26 Estonian organisations with 412 respondents. A tool for measuring employee attitudes in the process of organisational change and a questionnaire for measuring organisational culture were developed by the authors.

Under the conditions of economic transition, employees with higher job satisfaction are more willing to participate in an organisational change process than employees with a lower level of job satisfaction. Employees who evaluated their organisational culture as being stronger were more willing to participate in implementing organisational changes and were more satisfied with their jobs and managers. The attitudes of those managers who were younger than 45 were more strongly related to a positive organisational culture than to a strong organisational culture.

The most significant finding was that in a transition economy a strong organisational culture influences attitudes to change in a positive way. This is different from countries with more stable economies, where a strong organisational culture is considered to promote stability.

The purpose of this paper is to explore understanding about impact of work‐related values on attitudes toward changes and organizational learning in Chinese organizations.

Research was conducted with 1,303 respondents from 29 Chinese companies in 2005‐2006. The companies were from two areas: Peking and Jinan. The respondents filled out three questionnaires: a questionnaire about work‐related values, a questionnaire about attitudes toward changes and a questionnaire about organizational learning. A principal component analysis and factor analyses using varimax rotation was completed for all three questionnaires.

This study emphasises the importance of knowing the work‐related values of employees in shaping attitudes toward changes and learning, which are key success factors during organizational changes. Based on connections between work‐related values, organizational learning and attitudes toward changes, the authors developed a model of the impact of work‐related values on organizational learning and attitudes toward changes in Chinese companies.

From the findings, the authors have developed some implications for managers of Chinese organizations and also for foreign managers in multinational corporations in China.

The concept of organisational culture (also referred to later as OC) is one of the approaches in modern organisational analysis exploring the values, attitudes and beliefs behind human behaviour in the workplace. OC as a social phenomenon is considered to be important for the sustainability of every organisation. In the service sector, OC may affect the nature and quality of the services provided. The aim of this paper is twofold: on the one hand, to highlight the patterns of OC in a hospital; and, on the other hand, to outline relationships between OC and patient satisfaction. The study was conducted in Tartu University Hospital, one of the most influential health care organisations in Estonia. This paper has original value by presenting an insight into organisational culture in the Estonian health care sector, and the findings of the study will expand knowledge of OC in the health care sector in general.

The OC instrument applied in a quantitative cross‐sectional study was earlier developed according to the Competing Values Framework (CVF). Data from 456 medical and non‐medical professionals were analysed using non‐parametric tests of descriptive statistics. A factor analysis was performed to assess the instrument's compatibility for analysing the OC pattern in the health care sector.

The dominant culture type in all the groups investigated was the Internal Processes type, mainly followed by the Rational Goal type, while different cultural patterns were observed in professional groups. The factor analysis yielded a three‐subscale solution. Clinics with high patient satisfaction did not score more than clinics with low patient satisfaction in terms of the Human Relations type.

In future studies a random sample design and a multidisciplinary approach to OC research should be followed in order to further explore OC patterns in hospitals and their consequences for different aspects of hospital performance.

Purpose — (Dis)honesty as a quality of our actions can be assessed at different levels. Often these levels have not been differentiated. Semantically we cannot talk about a dishonest society or dishonest organizations — dishonesty can only be attributed to individual actions. We can approach a dishonest act through its essence (deontology), consequences (utilitarianism), and also through the person committing the act (virtue ethics), but most often organizational spheres are too complex objects of study to face ethical dilemmas without the influences that their context can bring. Therefore, the purpose of the chapter is to look at dishonesty as an unethical act through the lenses of behavioral ethics, since behavioral ethics is able to grasp the framing effects of ethical situations while combining the main elements of the previously mentioned traditional ethical theories.Design/methodology/approach — In the current chapter it will be differentiated between traditional ethical theories and acknowledged that depending on the level of analysis (individual, organization, or the society level) with their distinctly different ontological backgrounds, we will have different groundings for making any kind of axiological statements about the dishonesty of an action.Findings — In order to give ethical statements about (dis)honesty in organizations, we cannot neglect the influences brought by context. Organizations with endless social interactions both locally and globally usually have no universal basis for making axiological statements.Originality/value — The originality of this chapter is twofold: firstly to cover the importance of making sense of what ethical approaches we take as a grounding when we make ethical judgments in organizational context, and secondly to analyze whether and how the question of dishonesty differs when we switch between the most traditional ethical approaches. The chapter proposes a new framework how ethical decision-making should be assessed depending on the level of social interactions and how dishonesty is associated with gaining social approval.

Purpose — The main aim of the paper is to study the occurrence and connections of different pre-insolvency violations of law on the example of Estonian firms.Design/methodology/approach — The study is based on the whole population financial data of Estonian bankrupt firms and all publicly available court judgments about firm insolvencies from the period 2002–2009. Three types of violations have been considered: non-submission of annual reports, violations of net asset requirement and elements of criminal offence.Findings — The paper shows that non-submission of annual reports is common for insolvent firms but its occurrence varies through insolvency years and types. A similar finding can be attributed to net asset requirement violations. Elements of criminal offence are also frequent, but their occurrence is not different through insolvency years, industries and firm size groups. Elements of criminal offence and net asset requirement violations are not likely to exist together. Although medians of several pre-insolvency financial variables are significantly different in case of firms where criminal offence elements were found, they are not useful for offence prediction.Research limitations/implications — Statistical analysis limitations of the current study are mainly associated with the content of the data, because the dataset itself covers the whole population of publicly available information. The application of some results in different countries might be limited because of differences in legislation and its implementation. The study outlines novel information about and connections of different pre-insolvency violations which could be applied for relevant theory-building or more elaborate empirical research in the future.Practical implications — The study can be used by managers, owners, creditors and other stakeholders of firms to improve detection of possible pre-insolvency violations.Social implications — Regulators and regulation implementers can make use of the study when considering a change in legal framework or in its practice.Originality/value — The paper shows the presence of selected pre-insolvency violations on an extensive dataset. Previous studies have mainly been theoretical, qualitative or using small datasets.

Purpose — Analyze and assess the actions taken by the government of Iceland prior to a banking crisis that resulted in the collapse of Iceland’s largest banks in October 2008. Was the government’s behavior prior to the crisis dishonest in the sense that it deliberately tried to fake reality or was the government honest but incompetent in the sense that it did not see the problem coming, and was therefore not trustworthy?Design/methodology/approach — Review of the existing literature, analysis, and assessment of this literature. Case study of Iceland.Findings — The government showed negligence and made mistakes by not taking credible actions to manage risks following a rapid cross-border expansion of Iceland’s largest banks. This had severe consequences and resulted in the collapse of the largest banks in October 2008. Instead of addressing the problems in the economy the government launched a PR campaign and the analysis of various scholars may have helped to justify inaction. According to the Special Investigation Commission (SIC),¹ the government did not address an obvious problem and could perhaps on that basis be charged with dishonesty, including faking reality with PR campaigns. As some scholars put it, the authorities gambled for resurrection, and failed. The analysis carried out by a number of other scholars who downplayed the problem may have confused the government and it may have been honest in its inaction. In that situation one can argue that the government was honest but incompetent and not trustworthy, as according to the SIC and several international scholars the problem was obvious.Research limitations/implications — This is a case study. The study does not present results that can be evaluated on the basis of statistical significance and generalized. Some of the lessons, however, can have a wider relevance than for Iceland only. This is especially true for small countries with a large banking sector, using its own currency, and with limited fiscal space to support the banks during a crisis.Practical implications — The combination of a risk seeking behavior of businesses, in this case in the banking sector, and inactive or negligent governments can result in the collapse of a country’s economy. The Icelandic government should encourage and enforce more risk mitigation via regulations, monitoring, and supervision of the private sector’s cross-border activities. This does not only apply to the banking sector but also to other sectors such as the energy sector.Social implications — Less risk seeking behavior and more risk mitigating actions can stabilize Iceland´s economic growth in the medium and long term, and reduce the risk of an economic collapse that typically has severe social consequences.Originality/value — The so-called Viking spirit of Icelandic business people accompanied with aggressive risk taking and bold business behavior can be very detrimental for a small economy especially when global economic and financial crisis hit.