Business and Professional Ethics Journal

Volume 42, Issue 2, Summer 2023

Monika Ardelt, Bhavna Sharma
Pages 171-204

The Benefits of Wise Organizations for Employee Well-Being

Similar to personal wisdom, which is believed to be beneficial for individuals, others, and the larger community, wise organizations are likely to have a positive impact on employee well-being if their ultimate goal is to promote the common good. To test this hypothesis and create a wise organization index, the cognitive, reflective, and compassionate dimensions of the Three-Dimensional Wisdom Model were integrated with the psychological needs for competence, autonomy, and relatedness of Self-Determination Theory. The wise organization index consisted of the average ratings of ten scales by forty-seven to 1,930 employees in twenty-four organizations. Analyses of two-level hierarchical linear models showed that the positive association between the wisdom scores of twenty-four organizations and the well-being scores of 9130 employees was mediated by supervisor support and job fulfillment. The study suggests that employees who are treated well, feel well and fulfilled at work, which likely benefits the organization’s long-term success.