A variety of stakeholders including investors, corporate managers, customers, suppliers, employees, researchers, and government policy makers have long been interested in the relationship between the financial performance of a corporation and its commitment to business ethics. As a subject of research, the relations between business ethics and corporate valuation has yet to be thoroughly quantified and investigated. This article is an effort to amend this inadequacy by demonstrating a statistically significant association between ethical commitment and corporate valuation measures. Consistent with (...) anecdotal evidence, we have found a significant association between the ethical commitment of Korean companies and their valuation on the Korean stock market. However, the result reveals that the association between ethical commitment and financial performance is not significantly supported. (shrink)

The intent of ethics is to establish a set of standards that will provide a framework to modify, regulate, and possibly enhance moral behaviour. Eleven focus groups were conducted with physicians from six culturally distinct countries to explore their perception of formalized, written ethical guidelines (i.e., codes of ethics, credos, value and mission statements) that attempt to direct their ethical practice. Six themes emerged from the data: lack of awareness, no impact, marginal impact, other codes or value statements supersede, personal (...) codes or values dictate, and ethical guidelines are useful. Overall, codes were valued only when they were congruent with existing personal morality. The findings suggest the need to re-evaluate the purpose, content, and delivery of codes for them to improve their function in promoting ethical conduct. (shrink)

Attempting to determine solutions for unethical practices in the field, this research was designed to assess the effectiveness of public relations firms’ ethics statements in decreasing the incidence of malpractice. This study revealed an encouraging finding that practitioners working in firms with ethical parameters were significantly more likely to engage in ethical practices. Moreover, educating public relations practitioners about the content of ethics statement could positively influence their ethical practices. At the same time, this study’s findings suggest further questions for (...) consideration in future scholarship and in the application of ethics statements to practice within the field. (shrink)

Corporate America is institutionalizing ethics through a variety of structures, systems, and processes. This study sought to identify managerial perceptions regarding the institutionalization of ethics in organizations. Eighty-six corporate level marketing and human resource managers of American multi-national corporations responded to a mail survey regarding the various implicit and explicit ways by which corporations institutionalize ethics. The results revealed that managers found ethics to be good for the bottom line of the organizations, they did not perceive the need for additional (...) formalization of ethics, and that they perceived implicit forms of institutionalizing ethics (e.g., leadership, corporate culture, top management support) to be more effective than the explicit forms of institutionalizing ethics (e.g., ethics ombudspeople, ethics committees, ethics newsletters). Implications of the survey and future research directions conclude the paper. (shrink)

Nowadays there is a growing interest in business ethics, both in academia and professionally. However, moral lapses continue to happen in business activities, leading academicians and professionals to rethink what is being done and reinventing new strategies to successfully manage ethics in business organisations. Thus, whereas efforts to promote ethics are basically oriented to using and developing explicit, written formal mechanisms, the literature suggests that other instruments are also useful and necessary to achieve this. Thus, studying the role of the (...) Human Resource Management (hereafter, HRM) in promoting ethics is an emerging research topic due to the heavy influence that HRM practices are thought to have on employees. This paper is aimed at developing a thorough analysis of HRM's role in promoting ethics, and specifically at focusing on one of its practices, training. As an illustrative example of the utility of this practice, an empirical study was conducted on a range of Spanish banking companies in which an impact was found on the employees' ethical behaviour when ethics training was being provided inside the organisation. Finally, the practical implications of these findings and directions for future research are presented. (shrink)

Ethics training is commonly cited as a primary method for increasing employees ethical decision making and conduct. However, little is known about how the presence of ethics training can enhance other components of an organization's ethical environment such as employees perception of company ethical values. Using a national sample of 313 business professionals employed in the United States, the relationship between ethics training and perceived organizational ethics was explored. The results of the analysis provide significant statistical support for the notion (...) that businesspersons employed in organizations that have formalized ethics training programs have more positive perceptions of their companies ethical context than do individuals employed in organizations that do not. The analysis also indicated that job satisfaction was related to employees attitudes about their ethical context. The managerial implications of the results are outlined, along with the limitations of the study and recommendations for future research. (shrink)

Ethics training is commonly cited as a primary method for increasing employees' ethical decision making and conduct. However, little is known about how the presence of ethics training can enhance other components of an organization's ethical environment such as employees' perception of company ethical values. Using a national sample of 313 business professionals employed in the United States, the relationship between ethics training and perceived organizational ethics was explored. The results of the analysis provide significant statistical support for the notion (...) that businesspersons employed in organizations that have formalized ethics training programs have more positive perceptions of their companies' ethical context than do individuals employed in organizations that do not. The analysis also indicated that job satisfaction was related to employees' attitudes about their ethical context. The managerial implications of the results are outlined, along with the limitations of the study and recommendations for future research. (shrink)

Scholars and executives have expressed concern over the growing frequency of unethical practices in companies'' conduct of competitive analysis — the process by which a firm gathers, analyzes, and interprets data about its rivals. This article reports the results of an exploratory study of 137 senior executives'' perceptions of unethical competitive analysis practices, their causes, and their potential effect on industries, companies and individuals. The article discusses the implications of the results for developing guidelines to safeguard against ethical violations in (...) competitive analysis. (shrink)

A survey was conducted of the perceived correlates of illegal abuses in the electronics industry. Human resource directors of thirty-one firms responded to a questionnaire which assessed their perceptions of the degree to which illegal behavior was caused by (1) deficiencies in the moral character of employees (2) the clarity of expectations and standards describing illegal behavior and (3) the presence of reinforcements and punishments contingent on these behaviors. All three variables were related to the frequency of abuses in three (...) areas of organizational crime (e.g. administrative, labor, environment) and three areas of personal crime (theft, falsifying records kickbacks) as reported by the directors and/or indicated by archival records. The implications of these findings are discussed in terms of how organizations may reduce illegal activity. (shrink)

Blockchain is an open digital ledger technology that has the capability of significantly altering the way that people operations operate in organizations. This research takes a first step in proposing several ways in which the blockchain technology can be used to improve current organizational practices, while also considering the ethical implications. Specifically, the paper examines the role that blockchain technology plays in three primary areas of people operations: entry to the organization, intraorganizational processes, and exit. In each section, the paper (...) reviews the ethical implications from the lenses of virtue ethics, utilitarianism, deontology and contractarianism. The paper concludes that in whole the implementation of blockchain technology in people operations processes can create a more ethical work environment. However, careful implementation is necessary and requires extensive examination of ethical implications in advance. (shrink)

The objective of this paper is to develop and describe a construct of the ethos of the corporate codes of ethics (i.e. an ECCE construct) across three countries, namely Australia, Canada and Sweden. The introduced construct is rather unique as it is based on a cross-cultural sample seldom seen in the literature. While the outcome of statistical analyses indicated a satisfactory factor solution and acceptable estimates of reliability measures, some research limitations have been stressed. They provide a foundation for further (...) research in the field and testing of the ECCE construct in other cultural and corporate settings. We believe that the ECCE construct makes a contribution to theory and practice in the field as it outlines a theoretical construct for the benefit of other researchers. It is also of managerial interest as it provides a grounded framework of areas to be considered in the implementation in organizations of corporate codes of ethics. (shrink)

We define ethical system infrastructure as being composed of three major factors – means, motivation, and opportunity. Means are defined as organizational rules, policies, and procedures. Motivation focuses upon the values and the interests being pursued by the position occupant and the organizational value system, while opportunity is discussed in terms of the environment in which the dilemma occurs, proposing that position in the hierarchy presents its own unique set of ethical dilemmas. Ethical breeches are discussed in terms of the (...) interactional processes among means, motivation, and opportunity. Finally, a sequential process is suggested to use the infrastructural components to institutionalize organizational ethics training and subsequent behavior. (shrink)

A variety of stakeholders have long been interested in the factors that are related to firm valuation. This article investigates why companies with more comprehensive corporate governance (CG) have a value premium over companies with less comprehensive CG. We posit and find that the cost of equity capital (COC) decreases with the strength of CG, suggesting that the value premium stems from the lower COC for more comprehensive CG. We also find that the COC is lower for companies with strong (...) commitment to business ethics (BE) than for those with weak commitment to BE and that the beneficial effect of CG on the COC is more pronounced for companies with weak commitment to BE than for those with strong commitment to BE. Companies with more comprehensive CG tend to exhibit strong commitment to BE, but the beneficial effect of corporate ethical commitment is not completely subsumed by CG. Our results suggest that companies could lower their cost of equity capital and increase firm value by adopting more comprehensive CG practices and committing to higher standards of BE. (shrink)

This paper examines the status of Corporate Ethical Policies (CEP) in large companies in Argentina, Brazil and Spain, with a special emphasis on Corporate Ethics Statements (CES), documents that define the firms’ philosophy, values and norms of conduct. It is based on a survey of the 500 largest companies in these nations. The findings reveal many similarities between these countries. Among other things, it emerges that most companies give consideration to ethics in business and have adopted some kind of formal (...) or informal ethical policies. Regardless of whether or not they have a CES, companies agree that ethical conduct must be taken into account when selecting, appraising and promoting personnel as an important ethical policy. There is a growing tendency to draw up formal corporate ethics documents. These documents are perceived, first and foremost, as supporting the development of corporate culture. Most respondents believe that primary responsibility for ethical issues in the company rests with the CEO. Finally, the findings indicate that most companies that devote more resources to communicating and implementing CESs have two or more formal ethics documents. The main differences between the countries included in the study concern the emphasis given to specific aspects, such as avoiding misconduct or taking ethical criteria into account when selecting personnel. The emphasis is greatest in countries where corruption seems most prevalent. (shrink)

The objective of this study is to test the embeddedness of codes of ethics (ECE) in organizations on aggregated data from three countries, namely Australia, Canada and the United States. The properties of four constructs of ECE are described and tested, including surveillance/training, internal communication, external communication and guidance. The data analysis shows that the model has satisfactory fit, validity and reliability. Furthermore, the results are fairly consistent when tested on each of the three samples (i.e. cross‐national validation). This cross‐national (...) study makes a contribution beyond previous descriptive or exploratory studies by using confirmatory factor analysis and structural equation modeling. Nevertheless, a number of limitations are raised, all of which provide opportunities for further research in refining, extending and testing the proposed ECE model in other cultural and corporate settings. (shrink)

Codes of ethics exist in many, if not the majority, of all large U.S. companies today. But how the impact of these written codes affect managerial attitudes and behavior is still not clearly documented or explained. This study takes a step in that direction by proposing that attention should shift from the codes themselves as the sources of ethical behavior to the persons whose behavior is the focus of these codes. In particular, this study investigates the role of code familiarity (...) as a factor impacting the influence of an ethics code on manager behavior. Data collected from 286 executives from companies in the direct selling industry are used to test hypotheses (1) that the perceived usefulness of ethics codes is positively related to the degree of familiarity with the code, and (2) that ethical climate as assessed by managers is positively related to the code''s perceived usefulness. Both hypotheses are supported, and their implications and further research directions are discussed. (shrink)

A business code of ethics is widely regarded as an important instrument to curb unethical behavior in the workplace. However, little is empirically known about the factors that determine the impact of a code on unethical behavior. Besides the existence of a code, this article studies five determining factors: the content of the code, the frequency of communication activities surrounding the code, the quality of the communication activities, and the embedment of the code in the organization by senior management as (...) well as local management. The full model explains 32% of observed unethical behavior while the explanatory value of a code alone is very modest. The study shows when codes are effective, and even when they become counter effective. (shrink)

This study attempts to help explain the ethical decision making of individual employees by determining how the perceived organizational environment is related to that decision. A self- administered questionnaire design was used for gathering data in this study with a sample size of 245 full-time employees. Perceived supervisor expectation, formal policies, and informal policies were used to assess the expressed ethical decision of the respondents. The findings indicate that the perceived organizational environment is significantly related to the ethical decision of (...) the respondent. (shrink)

This paper acknowledges the paucity of attention regarding the development of ethics programs within an academic environment and describes in a case study how the Duquesne University schools of business attempted to introduce, integrate and promote its own ethics program. The paper traces the business school’s attention to mission statements, curriculum development, ethics policy, program oversight and outcome assessment. Lessons learned are offered as suggestions for others seeking to develop and implement an ethics program in their school.

Drawing on conceptual works by Murphy (1999) and Solomon (1999), we develop a virtue ethics scale. Other ethics scales, which are grounded in deontological and teleological principles, may be used to classify people according to their beliefs about (1) the criteria they use to make ethical decisions, or (2) the ethicality of those decisions. We suggest augmenting these scales with our virtue ethics scale, which may be used to classify people according to their beliefs about the virtuous qualities of businesspeople.

This paper investigates the regulation of ethical behavior of professionals. Ethical perceptions of South African professionals operating in the business community (specifically accountants, lawyers and engineers) concerning their need for and awareness of professional codes, and the frequency and acceptability of peer contravention of such codes were sought. The existence of conflict between corporate codes and professional codes was also investigated. Results, based on 217 replies, indicated that the professionals believe that codes are necessary and are relatively aware of the (...) contents of such codes. Despite these ethical tendencies, respondents (particularly lawyers) believe that their peers contravene their professional codes relatively often. No significant differences in ethical tendencies between professionals consulting to and those working in business were found. Many respondents were regulated by more than one code of ethics, but few experienced conflict between such codes. In the events of conflict occurring professionals chose to adhere to their professional code above others. (shrink)

The objective of this study is to test the embeddedness of codes of ethics (ECE) in organizations on aggregated data from three countries, namely Australia, Canada and the United States. The properties of four constructs of ECE are described and tested, including surveillance/training, internal communication, external communication and guidance. The data analysis shows that the model has satisfactory fit, validity and reliability. Furthermore, the results are fairly consistent when tested on each of the three samples (i.e. cross-national validation). This cross-national (...) study makes a contribution beyond previous descriptive or exploratory studies by using confirmatory factor analysis and structural equation modeling. Nevertheless, a number of limitations are raised, all of which provide opportunities for further research in refining, extending and testing the proposed ECE model in other cultural and corporate settings. (shrink)

Management information system (MIS) professionals have a central role in technology development, determining how technology is used in organizations, and the effects it has on clients and society. MIS stakeholders have expressed concern regarding MIS professional's role in computer crime, and security of electronically stored information. It is recognized that MIS professionals must make decisions based on their professional ethics. The Association for Computing Machinery (ACM) and the Data Processing Management Association (DPMA) have developed codes of ethics to help guide (...) practitioners with ethical professional decision making. In this study, a model was developed from the combined ACM and DPMA codes of ethics and used in the construction of a survey instrument. The survey was conducted using public sector MIS professionals, and findings relative to the influences that codes of ethics, ethical enforcement systems, and membership in professional organizations has on ethical perception were studied. In addition, the influence that ethical obligation to particular constituencies had on respondents' ethical attitudes was also investigated. The study indicated that ethical obligation of public sector MIS professionals is stronger for management and employers than for peers, society, or clients. (shrink)

Research in the field of management has increasingly focused on strategies and tools related to corporate sustainability. Of the tools examined, codes of ethics have been found to play a primary role. Many studies have investigated the content of such codes, as well as their capacity to condition the behaviour of people within organizations. However, few studies have considered the intrinsic quality of codes of ethics. This study aims to investigate the impact that specific factors—firm size, degree of internationalization and (...) industry effect—can have on the quality of codes of ethics. Based on a sample of 248 listed Italian companies, the results of the empirical analysis show that the quality standard is particularly high in larger companies and in those firms operating in industries in which relationships established with critical stakeholders—and disclosure to those stakeholders—play a crucial role. These results have interesting implications for both researchers and practitioners. (shrink)

The purpose of this present research is to expand upon the foundation that codes of ethics are more useful guides to managers in their behavior and decision-making when managers are more familiar with code content and intentions. We explore whether the impact of code familiarity on code usefulness differs: (a) under varying conditions of turbulence and (b) between persons with relativist versus idealist personal values. Data have been collected from a sample of 1700 executives in member companies of the U.S. (...) Direct Selling Association, and responses were received from 286 (16.8% returned). Perceptions of ethics code familiarity and usefulness decline as business turbulence increases. The decline in familiarity/usefulness was more pronounced for managers with a relativistic ethical orientation. (shrink)

Ethics in public administration has been a subject of growing interest for both researchers and practitioners interested in the future of governance. This study examined the relationship between ethics and performance in local governance. We tested the effects over time of an ethics program on employees' perceptions (awareness of the code of ethics, ethical leadership, inclusion of employees in ethical decision making [EDM], ethical climate [EC], organizational commitment, and quality of work life [QWL]) and behavior (organizational citizenship behavior) in one (...) Israeli regional council. We conducted a longitudinal study of 108 employees, using data from a two-phase survey (before implementation of the ethics program and a year after) and objective assessments of employees' behavior through managers' evaluations. The main findings show that the ethics program was very effective, resulting in greater awareness of the code of ethics, increased inclusion of employees in EDM, and an improved EC. Furthermore, ethical leadership was positively related to employees' awareness of the code of ethics, increased inclusion of employees in EDM, an improvement in the EC, greater organizational commitment, and higher QWL. Implications and suggestions for future studies are discussed. (shrink)

This study examines the impact of various ethical climate types, dependency factors, and ethical training on ethical optimism of purchasing professionals (n = 151) in India. Instrumental and independence climate types had a significant negative impact on ethical optimism. Other climate types (professional, caring, rules, and efficiency) had no significant impact on ethical optimism. Among the dependency factors, while task uncertainty had a significant positive impact, monitoring had a significant negative impact on ethical optimism. None of the other factors significantly (...) impacted ethical optimism. (shrink)

Relationships with one's employees, co-workers, or superiors create ethical dilemmas. Employees' judgments and ethical perceptions have been extensively studied in Western cultures, but not in developing countries. The purpose of this investigation is to examine employees' self-reported work-related ethics and compare them to their perceptions of co-workers' and top managements' along various morally challenging situations in three developing countries' organizations. Saudi Arabia, Kuwait, and Oman, known as the Gulf countries, were selected as the research setting - and provided the sampling (...) frame - for this study. The results suggest that respondents perceived all ethically challenging situations as unethical and had significant differences among themselves regarding the ethical perceptions of self, as compared to perceptions of peers', and top managements'. Discussion of the results and implications are provided. (shrink)

Based on the 'Partnership Model of Corporate Ethics' (Wood, 2002), this study examines the ethical structures and processes that are put in place by organizations to enhance the ethical business behavior of staff. The study examines the use of these structures and processes amongst the top companies in the three countries of Australia, Canada, and Sweden over two time periods (2001–2002 and 2005–2006). Subsequendy, a combined comparative and longitudinal approach is applied in the study, which we contend is a unique (...) approach in the area of business ethics. The findings of the study indicate that corporations operating in Sweden have utilized ethical structures and processes differently than their Canadian and/or Australian counterparts, and that in each culture the way that companies fashion their approach to business ethics appears congruent with their national cultural values. There does, however, appear to be a convergence of views within the organizations of each culture, as the Swedish companies appear to have been more influenced in 2005–2006 by an Anglo-Saxon business paradigm than they have been in the past. (shrink)

The objective of this paper is to develop and describe a construct of the ethos of the corporate codes of ethics (i.e. an ECCE construct) across three countries, namely Australia, Canada and Sweden. The introduced construct is rather unique as it is based on a cross‐cultural sample seldom seen in the literature. While the outcome of statistical analyses indicated a satisfactory factor solution and acceptable estimates of reliability measures, some research limitations have been stressed. They provide a foundation for further (...) research in the field and testing of the ECCE construct in other cultural and corporate settings. We believe that the ECCE construct makes a contribution to theory and practice in the field as it outlines a theoretical construct for the benefit of other researchers. It is also of managerial interest as it provides a grounded framework of areas to be considered in the implementation in organizations of corporate codes of ethics. (shrink)

The implementation of tools and techniques of the management of ethics in the academic environment has its own peculiarities arising from the nature of the expert, scientific, pedagogical, but also administrative work of university staff, requiring a considerable degree of autonomy and freedom. The aim of this case study is to present the views of university teachers and PhD students from a selected faculty of a public university in Slovakia on the implementation of tools and techniques for the management of (...) ethics and to identify specific risks associated with the nature of the code of ethics and its introduction into practice. Qualitative research was conducted using focus groups during the implementation of the code of ethics, while quantitative research was subsequently conducted by an anonymous electronic questionnaire shortly after the introduction of the code into practice. (shrink)

To help academic associations in management develop, refine, and implement a code of ethics, we conducted a survey of management educators’ perception of the ethicality of 142 specific behaviors in teaching, research, and service. The results of the survey could be used to inform ethics committees of these associations regarding the level of acceptability of such conduct. The potential value of our study for the Academy of Management or similar management associations lie in our (1) systematically involving the members in (...) building support for the code of ethics, (2) assessing members’ ethical judgments on both cross-sectional and longitudinal bases so as to identify areas needing particular attention in ethical training, (3) providing an extensive list of specific examples of questionable and potentially unethical behaviors so as to make it easier to implement the code, and (4) providing a template survey document for potential use in involving more stakeholder groups in the development of codes of ethics. (shrink)

The objective of this paper is to examine the ‘Code of Ethics Quality’ (CEQ) in the largest companies of Australia, Canada and the United States. For this purpose, a proposed CEQ construct has been applied. It appears from the empirical findings that while Australia, Canada and the United States are extremely similar in their economic and social development, there may well be distinct cultural mores and issues that are forming their business ethics practices. A research implication derived from the performed (...) research is that the construct provides a selection of observable and measurable elements in the context of CEQ. The construct of CEQ consists of nine measures divided into two dimensions (i.e. staff support and regulation). They should not be seen as a complete list. On the contrary, it is encouraged that others propose and elaborate revisions and extensions. A practical implication of this paper is a structure of what and how to examine the CEQ in a managerial setting. It may assist companies in their efforts to establish, maintain and improve their ethical culture, norms and beliefs within the organization and supporting them in their ethical business practices with different stakeholders in the marketplace and society. The dimensions and measures of the construct may be used as a frame of reference for further research. They may be useful and applicable across contexts and over time using similar samples when it comes to large companies, as small‐ or medium‐sized ones may not have considered all areas nor have the elements in place. This is a research limitation, but it provides an opportunity for further research. (shrink)