RELATIONSHIP BETWEEN EMOTIONAL INTELLIGENCE AND ETHICAL COMPETENCE: AN EMPIRICAL STUDY

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International Journal of Management, IT & Engineering Vol. 7 Issue 12, December 2017, ISSN: 2249-0558 Impact Factor: 7.119 Journal Homepage: Double-Blind Peer Reviewed Refereed Open Access International Journal - Included in the International Serial Directories Indexed & Listed at: Ulrich's Periodicals Directory, U.S.A., Open J-Gage as well as in Cabell s Directories of Publishing Opportunities, U.S.A RELATIONSHIP BETWEEN EMOTIONAL INTELLIGENCE AND ETHICAL COMPETENCE: AN EMPIRICAL STUDY Jianguanglung Dangmei * Prof. Amarendra Pratap Singh ** Abstract Researchers have stated that the attitudes and behaviors of future organizations leaders depend on the current university students. Students need to have a proper understanding of ethical behavior that will provide them the ability to consider the impact of their conducts and actions in the business organizations and towards the society. Studies indicate that factors of emotional intelligence can generate self-regulation and control disruptive actions by understanding the feelings and emotions of others. Therefore, the purpose of the study is to analyze whether business students with emotional intelligence would be able to manage their emotions and react less aggressively to the behaviors of others asserting to more ethicality. The findings revealed that emotional intelligence is a good predictor of ethical competence. Keywords: Emotional Intelligence, Ethical Competence, Emotions, Ethics, Business. * Research Scholar, Department of Business Management, Indira Gandhi National Tribal University (IGNTU), Amarkantak (M.P) ** Head, Department of Business Management, Indira Gandhi National Tribal University (IGNTU), Amarkantak (M.P) 236 International journal of Management, IT and Engineering

1. INTRODUCTION Professionals, academics and governing bodies have stressed the need to pay attention on the ethical behavior in business students (Thomas, 2004), since students need to have a proper understanding of ethics, social responsibility and cultural diversity that will provide them the ability to consider the impact of their conducts and actions in the organizations and towards the society. Researchers have stated that the attitudes and behaviors of future organizations leaders depend on the current university business students (Reiss and Mitra, 1998, p. 1581). According to Jaffe and Tsimerman (2005), the ethical attitudes of current business students can predict the future moral climate of business and will render into behaviors that will inculcate in the business world. Moreover, the EI has been recognized as one of the most successful factors in the workplace (Kirch, Tucker and Kirch 2001; Rozell, Pettijohn and Parker 2002) but despite that fact that researchers have recognized the importance of EI in the organizations, few empirical studies has been conducted in the relationship between EI and morals or ethics (Jensen, S., et al., 2007). Therefore, this paper attempts to link the concept of emotional intelligence and ethical competence. 2. REVIEW OF LITERATURE 2.1 Emotional Intelligence: It is the ability to identify, produce and understand emotions that reflectively regulate one s emotions so as to gain emotional and intellectual growth (Mayer and Salovey, 1997 p. 10). It is the competency to perceive and express emotions precisely to facilitate thought to understand and manage emotions (Brackett, Mayer & Warner, 2004, p. 1389). According to Goleman, D. (1998), there are five components of emotional intelligence identified as (i) self-awareness, (ii) self-regulation, (iii) motivation, (iv) empathy and (vi) social skill. (i) Self-awareness: It is the ability to understand one s feelings with a high degree of self awareness how it affects oneself, other people and performance at workplace. (ii) Self-regulation: It is the ability to manage one s emotional or controls disruptive impulses and moods in the presence of others and in different situations. (iii) Motivation: It is the personal drive to achieve goal and a passion to work for internal reasons that go beyond money and status. 237 International journal of Management, IT and Engineering

(iv) Empathy: It is the ability to understand the needs and feelings of others and being able to treat people according to their emotional reactions. (v) Social Skill: It is the ability to build and manage relationship with other people and find common ground for meaningful relationships. 2.2 Ethical Competence: It is the ability of a person to exercise a suitable decision making when making a moral problem and a suitable process or mechanisms in handling relevant moral issues (Kavathatzopoulos, I. (2012). It is also the capability and willingness to exercise tasks based on a reasonable appraisal of the relevant facts (Karsing, P.40). According to Rest (1986), there are four components of ethical competence. They are (i) moral awareness being aware of ethical problems and situations, (ii) moral judgment ability to judge which behavior is morally right, (iii) moral motivation being passionate and driven to do what is morally right and (iv) moral character being strong enough and prepared to exercise the morally right behavior. 2.3 Emotional Intelligence and Ethical Competence: Ethical competence is the important tool for handling moral problems in business ethics and emotions are considered as essential contributions to ethical decision making in the organizations (Holian, 2006, Kavathatzopoulos, I., 2012). The two components of Emotional Intelligence i.e, the cognitive component that accesses accurate perceptions of other s emotions and the empathy component that contributes to the understanding of origins of these emotions can lessen negative attribution about others (Hoffman, 1984). Individuals with high emotional intelligence are more skillful at reasoning emotions of their own and behavior of others will use this information to guide thinking and action (Mayer & Salovey, 1990). So, they may be more likely to guide themselves towards ethical thought and actions through emotional intelligence. This ability would contribute to individuals in order to recognize ethical behaviors and another person s ethicality. Therefore, individuals with high emotional intelligence would be able to manage their emotions and react less aggressively to the behaviors of others asserting to more ethicality. 238 International journal of Management, IT and Engineering

3. PURPOSE OF THE STUDY Holian (2006) suggested that future study should investigate whether skills associated with emotional intelligence has an impact on ethical decisions. Therefore, this present study examines the relationship between emotional intelligence and ethical competence. It is aligned more closely with the future needs of organizational fairness in the business world. It also seeks the students whether individuals with high emotional intelligence could understand the challenges and expectations of ethical dilemma in the real life. 4. OBJECTIVES OF THE STUDY 1. To ascertain the relationship between emotional intelligence and ethical competence. 2. To analyze the impact of emotional intelligence on ethical competence. 5. HYPOTHESES OF THE STUDY (i) H 01 : There is no significant relationship between Emotional Intelligence and Ethical Competence. (ii) H 02 : There is no significant effect of Emotional Intelligence on Ethical Competence. 6. RESEARCH METHODOLOGY The study is empirical in nature and used the survey as a data collection tool. Convenience sampling technique which is non-probability sampling technique was used in this study where students are selected because of their convenient accessibility to the researchers. A total of 73 respondents were collected from the BBA and MBA students in the Department of Business Management, Indira Gandhi National Tribal University. With regard to sample demographic distribution, 43.8 percent were male and 56.2 percent were female. According to the research objectives, emotional intelligence is considered as an independent variable and ethical competence as the dependent variable. The 15 items used to measure emotional intelligence were adopted from The Quick Emotional Intelligence Self-Assessment by Paul Mohapel, San Diego City College to represent emotional awareness, self-regulation, motivation and social skill. A total of 15 items were used to measure ethical competence, 5 items each were drawn from Ethical Sensitivity of Finnish Lutheran 7th - 9th Grade Students by Kirsi Tirri, Petri Nokelainen and Kristiina Holm, to represent ethical awareness, A taxonomy of ethical 239 International journal of Management, IT and Engineering

ideologies by Forsyth, D. R. (1980) to represent ethical judgment, Ethical behavior, Leadership, and Decision Making by Emery, E. (2016) to represent moral motivation and The Ethical Leadership Scale by Institute for Ethical Leadership (2016) representing moral character. The five-point Likert scale is used where the scale range from 1(strongly disagree) to 5 (strongly agree). Pearson Correlation, Regression analysis and Cronbach alpha were used to analyze the data. All analysis was performed using SPSS 23.0 version. 7. FINDINGS 7.1 Reliability It is the test to assess the degree of consistency between multiple measurements of a variable using Cronbach alpha coefficient. Reliability estimates (coefficient alphas) of emotional intelligence is 0.760 and ethical competence is 0.724. Since, all the alpha coefficients were above the required level of 0.7 as suggested by Malhotra et al. (1999), the results of reliability test showed that the items are reliable. 7.2 Correlation Analysis Using Pearson correlation, the relationship between emotional intelligence and ethical competence was analyzed. The result of correlation analysis is shown in the Table 1. Table 1: Correlations Emotional Intelligence Ethical Competence Emotional Intelligence Pearson Correlation 1.545 ** Sig. (2-tailed).000 N 73 73 Ethical Competence Pearson Correlation.545 ** 1 Sig. (2-tailed).000 N 73 73 **. Correlation is significant at the 0.01 level (2-tailed). 240 International journal of Management, IT and Engineering

Since, the p-value is below 0.05, the null hypothesis is rejected. It shows that there is a positive significant relationship between emotional intelligence and ethical competence. 7.3 Regression Analysis The simple regression analysis was conducted to analyze the impact of emotional intelligence on ethical competence. Table 2, 3 and 4 show the results of the regression analysis. Table 2: Model Summary Model R R Square Adjusted R Square Std. Error Change Statistics of the R Square F Estimate Change Change df1 df2 Sig. Change 1.545 a.297.287 5.576.297 29.969 1 71.000 a. Predictors: (Constant), Emotional Intelligence F Table 3: ANOVA a Sum of Model Squares Df Mean Square F Sig. 1 Regression 931.706 1 931.706 29.969.000 b Residual 2207.308 71 31.089 Total 3139.014 72 a. Dependent Variable: Ethical Competence b. Predictors: (Constant), Emotional Intelligence Table 4: Coefficients a Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta T Sig. 1 (Constant) 9.907 8.378 1.183.241 Emotional Intelligence.841.154.545 5.474.000 a. Dependent Variable: Ethical Competence 241 International journal of Management, IT and Engineering

Above tables revealed that the emotional intelligence explained 29.7% of the variance of ethical competence of the students. Since p-value is less than 0.05, the null hypothesis is rejected. Thus, these results provided evidence that emotional intelligence has effect on ethical competence. 8. Limitations First, the sample size is small and further research with larger national samples would be necessary to confirm these findings. Second, the generalizations of the findings of the study to other business students and students from other streams are limited. 9. Conclusions and Implications The present study contributes to an understanding of the association and impact of emotional intelligence on ethical competence. Drawing from theories related to motivation and ethical competence, the study results indicated that there is positive role of emotional intelligence on ethical competence within the business students. In conclusions, emotional intelligence has been found to be a good predictor of ethical competence in the business students. Thus, organizations need to consider how emotional intelligence can be aligned with ethical competence and provide helpful insights into the area of growing concern for the society, researchers and educators. It is recommended that further study should be carried out on other external factors impacting ethical competence of business students. REFERENCES: 1. Brackett, M. A., Mayer, J. D., & Warner, R. M. (2004). Emotional intelligence and its relsation to everyday behaviour. Personality and Individual Differences, 36, 1387-1402. 2. Emery Sr, E. (2016). Ethical Behavior, Leadership, and Decision Making (Doctoral dissertation, Walden University). 3. Institute for Ethical Leadership. (2016). The Ethical Leadership Scale. Accessed on 15 June, 2017 at http://www.ethicalleadership.com/ethicalleadershipscales.html 4. Forsyth, D. R. (1980). A taxonomy of ethical ideologies. Journal of Personality and Social psychology, 39(1), 175. 5. Goleman, D. (1998) Working with Emotional Intelligence. New York, Bantam Books. 242 International journal of Management, IT and Engineering

6. Hoffman, M. L. (1984). Empathy, its limitations, and its role in a comprehensive moral theory. In J. Gewirtz & W. Kurtines (Eds.), Morality, moral development, and moral behavior, pp. 283-302. New York: Wiley. 7. Jaffe, E. D., & Tsimerman, A. (2005). Business ethics in a transition economy: Will the next Russian generation be any better? Journal of Business Ethics, 62(1), 87-97. 8. Jensen, S., Kohn, C., Rilea, S., Hannon, R., & Howells, G. (2007). Emotional intelligence: A literature review. University of the Pacific Department of Psychology. 9. Kirch, D. P., M. L. Tucker and Kirch, C.E. (2001). "The benefits of emotional intelligence in accounting firms." The CPA Journal 71(8): 60-61. 10. Holian, R. (2006). Management decision making, ethical issues and emotional intelligence. Management Decision, 44(8), 1122 1138. 11. Kavathatzopoulos, I. (2012). Assessing and acquiring ethical leadership competence. In Leadership through the Classics (pp. 389-400). Springer Berlin Heidelberg. 12. Kirch, D. P., M. L. Tucker and Kirch, C.E. (2001). "The benefits of emotional intelligence in accounting firms." The CPA Journal 71(8): 60-61. 13. Mayer, J. D., & Salovey, P. (1993). The intelligence of emotional intelligence. Intelligence, 17(4), 433-442. 14. Paul Mohapel. (n.d). The Quick Emotional Intelligence Self Assessment. Accessed on 14 June, 2017 http://www.sdcity.edu/portals/0/cms_editors/mesa/pdfs/emotionalintelligence.pdf. 15. Reiss, M.C., and K. Mitra (1998). The effects of individual difference factors on the acceptability of ethical and unethical workplace behaviors, Journal of Business Ethics 17, 1581-1593. 16. Rest, J.R. (1986). Moral Development: Advance in Theory and Research. New York: Praeger. 17. Rozell, E. J., Pettijohn, C.E. and Parker, R. (2002). "An empirical evaluation of emotional intelligence: The impact on management development." Journal of Management Development 21(3/4): 272-289. 18. Salovey, P., & Mayer, J. D. (1990). Emotional intelligence. Imagination, cognition and personality, 9(3), 185-211. 243 International journal of Management, IT and Engineering

19. Thomas, C. (2004). An inventory of support materials for teaching ethics in the Post- Enron era. Issues in Accounting Education, 19(1), 27-52. 20. Tirri, K., Nokelainen, P., & Holm, K. (2008). Ethical Sensitivity of Finnish Lutheran 7 th-9 th Grade Students. Getting involved: Global citizenship development and sources of moral values, 327-341. 244 International journal of Management, IT and Engineering