Since the introduction of the U.S. Sarbanes-Oxley Act in 2002 and several other national corporate governance codes, whistleblowing policies have been implemented in a growing number of companies. Existing research indicates that this type of governance codes has a limited direct effect on ethical or whistleblowing behaviour whereas whistleblowing policies at the corporate level seem to be more effective. Therefore, evidence on the impact of (inter)national corporate governance codes on the content of corporate whistleblowing policies is important to understand their (...) indirect impact on whistleblowing behaviour. This study analyzes the contents of whistleblowing policies, and parts of corporate codes of conduct and codes of ethics, describing such policies of 56 leading European companies. By classifying the contents in seven categories, an exploratory framework was created. General contents often identified were: applicability to all employees, a group-wide scope and an authoritative tone. The most common general violations to report were breaches of internal policies and external regulations or laws. The more specific violations most frequently mentioned were criminal offences and dangers to health and safety or the environment. Contacts to report to were the direct or indirect supervisors, a compliance officer or a confidential "hotline" facility. A confidentiality guarantee was common and anonymous reporting was often possible, though sometimes discouraged. Protection against retaliation is stated by ensuring that retaliation will not happen, prohibiting it or making it punishable. The requirement of good faith was frequently given. Finally, investigation of the report was often guaranteed. Surprisingly little information is given on the treatment of whistleblowers reporting an unfounded complaint in good faith, or reporting a violation they were involved in. The study's findings are most relevant to companies without a whistleblowing policy or those that intend to benchmark their policies, and to pan-European standard setters. (shrink)

This paper describes and discusses the Enron Corporation debacle. The paper presents the business ethics background and leadership mechanisms affecting Enron''s collapse and eventual bankruptcy. Through a systematic analysis of the organizational culture at Enron (following Schein''s frame of reference) the paper demonstrates how the company''s culture had profound effects on the ethics of its employees.

There is a fundamental tension in business ethics between the apparent need to ensure ethical conduct through hierarchical control, and the encouragement of individuals' potential for autonomous moral judgement. In philosophical terms, these positions are consequentialist and Kantian, respectively. This paper assumes the former to be the dominant position in practice, and probably in theory also, but regards it as a misplaced extension of the more general managerial tendency to seek and maintain control over employees. While the functions of such (...) control are recognized, the arguments in favour of individuals' moral autonomy are pursued from both a Kantian and a social–theoretic perspective. Reference is made to Kohlberg's research on moral development that provides an insight into how individuals, through participation in debate with colleagues, might become more effective moral agents within organizational settings. This is contrasted with a managerial perspective, which pays lip service to individuals' right to such genuine involvement. The paper considers psychological manipulation and the legitimacy of managerial authority on matters of ethics, as opposed to in the purely technical context. The wider societal significance of such hierarchical power in organizations constitutes an important background to the paper. It is concluded that genuine, non‐manipulative, participation by employees (and others) is the way forward for the ethical management of business ethics. (shrink)

There is a fundamental tension in business ethics between the apparent need to ensure ethical conduct through hierarchical control, and the encouragement of individuals' potential for autonomous moral judgement. In philosophical terms, these positions are consequentialist and Kantian, respectively. This paper assumes the former to be the dominant position in practice, and probably in theory also, but regards it as a misplaced extension of the more general managerial tendency to seek and maintain control over employees. While the functions of such (...) control are recognized, the arguments in favour of individuals' moral autonomy are pursued from both a Kantian and a social–theoretic perspective. Reference is made to Kohlberg's research on moral development that provides an insight into how individuals, through participation in debate with colleagues, might become more effective moral agents within organizational settings. This is contrasted with a managerial perspective, which pays lip service to individuals' right to such genuine involvement. The paper considers psychological manipulation and the legitimacy of managerial authority on matters of ethics, as opposed to in the purely technical context. The wider societal significance of such hierarchical power in organizations constitutes an important background to the paper. It is concluded that genuine, non‐manipulative, participation by employees is the way forward for the ethical management of business ethics. (shrink)

This article uses sociological role theory to help understand ethical challenges faced by Norwegian real estate agents. The article begins with an introductory case, and then briefly examines the strengths and limitations of using legal definitions and rules for understanding real estate agency and real estate agent ethics. It goes on to argue that the ethical challenges of real estate agency can be described and understood as a system of conflicting roles with associated rights and duties, in particular sales agent, (...) intermediary and adviser sub-roles. The arguments are developed using exploratory findings from a survey of Norwegian real estate agents and from several focus groups. The article then suggests the use of various intranet tools as a kind of action research aimed at putting ethics on the real estate agents' agenda, working to develop a collective conscience and collective selfcriticism among the agents, and, in doing so, building bridges between academic research and the practical working world of the agents. (shrink)

This paper reports on an investigation of issues surrounding the use of ethical codes/codes of conduct in Irish based companies. Using a comprehensive questionnaire survey, the paper examines the incidence, content and enforcement of codes of conduct among a sample of the top 1000 companies based in Ireland. The main findings indicate that the overall usage of codes of conduct amongst indigenous Irish companies has increased significantly from 1995 to 2000. However, in line with prior research, these codes focus primarily (...) on issues surrounding company and employee protection as opposed to society protection. Almost half of all codes are written by company personnel or provided by head office. Revisions of codes are common but formal ongoing methods of instructing new staff about codes are not prevalent. Less than one-third of companies with codes have formal channels for reporting violations but a high percentage have formal disciplinary procedures in place for breaches of codes. (shrink)

This paper reviews a publication entitled ‘Ethics Matters. Managing Ethical Issues in Higher Education’, which was distributed to all UK universities and equivalent in October 2005. The publication proposed that HEIs should put in place an institution‐wide ethical policy framework, well beyond the customary focus on research ethics, together with the mechanisms necessary to ensure its implementation. Having summarised the processes that led to the publication and the publication itself, the paper then considers whether following the now commonplace corporate practice (...) of implementing a code of ethics is appropriate for such institutions. Drawing on both the empirical evidence in relation to codes in the business ethics literature and a consideration of the nature of the university as an institution, the paper offers an alternative suggestion for how ethical issues in higher education might be managed. (shrink)

There are major concerns about the level of personal borrowing, particularly sourced from credit cards. This paper charts the progress of an initiative to create a Responsible Lending Index (RLI) for the credit industry. The RLI proposed to voluntarily benchmark lending standards and promote best practice within the credit industry by involving suppliers of credit, customer representatives and regulators. However, despite initial support from some banks, consumer bodies and the Chair of the Treasury Select Committee, it failed to gain sufficient (...) support from financial institutions in its original format. The primary reasons for this were related to the complexity of building such a robust index and the banks trade body’s fear of exposing its members to public scrutiny. A revised alternative, the Responsible Lending Initiative, was proposed which took into account these concerns. However, the Association of Payment Clearing Service (APACS), the trade body of the credit industry, then effectively destroyed the proposal. This article describes an attempt to address the challenges in the credit card industry with the initiation of the RLI, reflected in stakeholder discourse and in the context of a wider concern expressed by the involved stakeholders in terms of the need for greater responsibility in the banking industry’s lending practices. (shrink)

This research investigates various firm motives for practicing corporate social responsibility (CSR). More precisely, it examines whether a firm's primary motive for undertaking CSR is related to the type of actions performed. Such exploratory research is overdue following more than 40 years of scholarly contention on the financial rewards of doing (and looking) good. By uncovering and measuring specific aspects of CSR, I offer an initial understanding of interactions within firm CSR operations. Theory on types of CSR have surfaced, yet (...) empirical studies are few. In this research, I address this disparity by using original quantitative measures of both motive and type. The outcomes of this investigation challenge certain extant notions of CSR, while introducing a measure of objectivity in some long‐standing debates among scholars and corporate stakeholders. (shrink)

Since the introduction of the U.S. Sarbanes-Oxley Act in 2002 and several other national corporate governance codes, whistleblowing policies have been implemented in a growing number of companies. Existing research indicates that this type of governance codes has a limited direct effect on ethical or whistleblowing behaviour whereas whistleblowing policies at the corporate level seem to be more effective. Therefore, evidence on the impact of (inter)national corporate governance codes on the content of corporate whistleblowing policies is important to understand their (...) indirect impact on whistleblowing behaviour. This study analyzes the contents of whistleblowing policies, and parts of corporate codes of conduct and codes of ethics, describing such policies of 56 leading European companies. By classifying the contents in seven categories, an exploratory framework was created. General contents often identified were: applicability to all employees, a group-wide scope and an authoritative tone. The most common general violations to report were breaches of internal policies and external regulations or laws. The more specific violations most frequently mentioned were criminal offences and dangers to health and safety or the environment. Contacts to report to were the direct or indirect supervisors, a compliance officer or a confidential “hotline” facility. A confidentiality guarantee was common and anonymous reporting was often possible, though sometimes discouraged. Protection against retaliation is stated by ensuring that retaliation will not happen, prohibiting it or making it punishable. The requirement of good faith was frequently given. Finally, investigation of the report was often guaranteed. Surprisingly little information is given on the treatment of whistleblowers reporting an unfounded complaint in good faith, or reporting a violation they were involved in. The study’s findings are most relevant to companies without a whistleblowing policy or those that intend to benchmark their policies, and to pan-European standard setters. (shrink)

Background: An ethical climate has been described as a working climate embracing shared perceptions about morally correct behaviour concerning ethical issues. Various ethical climate questionnaires have been developed and validated for different contexts, but no questionnaire has been found concerning the ethical climate from an inter-professional perspective in a healthcare context. The Swedish Ethical Climate Questionnaire, based on Habermas’ four requirements for a democratic dialogue, attempts to assess and measure the ethical climate at various inter-professional workplaces. This study aimed to (...) present the construction of and to test the psychometric properties of the Swedish Ethical Climate Questionnaire. Method: An expert group of six researchers, skilled in ethics, evaluated the content validity. The questionnaire was tested among 355 healthcare workers at three hospitals in Sweden. A parallel analysis (PA), an exploratory factor analysis and confirmatory factor analysis were performed. Ethical considerations: The participants included in the psychometric analysis were informed about the study, asked to participate in person and informed that they could withdraw at any time without giving any reason. They were also assured of confidentiality in the reporting of the results. Findings: The parallel analysis (PA) recommended one factor as a solution. The initial exploratory factor analysis with a four-factor solution showed low concordance with a four-factor model. Cronbach’s alpha varied from 0.75 to 0.82; however, since two factors only consisted of one item, alpha could not be reported. Cronbach’s alpha for the entire scale showed good homogeneity (α = 0.86). A confirmatory factory analysis was carried out based on the four requirements and showed a goodness-of-fit after deleting two items. After deletion of these items, Cronbach’s alpha was 0.82. Discussion: Based on the exploratory factor analysis, we suggest that the scale should be treated as a one-factor model. The result indicates that the instrument is unidimensional and assesses ethical climate as a whole. Conclusion: After testing the Swedish Ethical Climate Questionnaire, we found support for the validity and reliability of the instrument. We found the 10-item version of Swedish Ethical Climate Questionnaire satisfactory. However, we found no support for measuring different dimensions and, therefore, this instrument should be seen as assessing ethical climate as of whole. (shrink)