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The Impact of Organizational Ethical Climate on Reporting Behaviors in Information Systems Projects

Without accurate status information, a project manager’s ability to monitor progress, allocate resources effectively, and detect and respond to problems in a prompt fashion is greatly diminished, and this can lead to impaired project performance. Several factors can contribute to intentional misreporting of status information by project members to the project manager. In this study, the impact of organizational ethical climate was assessed through the analysis of responses from 228 project members drawn from a variety of on-going information systems (IS) projects. Our results revealed that project members who perceived themselves to be in an organization where rules are followed strictly tended to misreport less, while those operating in an environment dominated by personal self-interest tended to misreport more. Somewhat surprisingly, the existence of a team-spirited environment did not appear to have an impact on misreporting behaviors. Implications for researchers and IS project managers are discussed.