Although case-based training is popular for ethics education, little is known about how specific case content influences training effectiveness. Therefore, the effects of (a) codes of ethical conduct and (b) forecasting content were investigated. Results revealed richer cases, including both codes and forecasting content, led to increased knowledge acquisition, greater sensemaking strategy use, and better decision ethicality. With richer cases, a specific pattern emerged. Specifically, content describing codes alone was more effective when combined with short-term forecasts, whereas content embedding codes (...) within context was more effective when combined with long-term forecasts, leading to greater knowledge acquisition and sensemaking strategy use. (shrink)

Transparency in business and society is one of the challenges raised in the encyclical Caritas in Veritate by Benedict XVI. This paper focuses on the issue by extending the literature on business ethics, corporate social responsibility, and corporate transparency in two dimensions. First, it reviews the understanding and framing of the transparency issue in Caritas in Veritate and in a selection of relevant Catholic Social Teaching (CST) publications. Second, this paper provides normative indications for corporate transparency decisions which reflect four (...) permanent principles of CST, that is, the common good, solidarity, subsidiarity, and respect for the human being. Inasmuch as human beings are worthy of love for their own sakes, the dimension of gift should always be present in relationships among them. This paper also provides insights for further studies on corporate transparency and the impact of religion on business ethics and corporate social responsibility. (shrink)

Codes of conduct have proliferated not only at company level, but also at supra-and suborganisational levels. However, the latter have remained an under-researched area within the CSR literature. Hence, this article examined what range of organisational and sub-organisational codes large companies - here the FTSE100 constituent companies -have developed. The article isolated seven different types of organisational and sub-organisational codes, which together with six supraorganisational ones form a lattice-work of intermeshing documents. Such a division of labour between types of codes (...) has two significant implications for CSR practice and research. In terms of corporate practice, an analysis of the content of the organisational and sub-organisational codes indicates that companies seem to enter into generalised commitments in the more visible documents, whereas other aspects, in particular more coercive aspects of CSR, get buried in the lower levels of the code hierarchy. In terms of research methodology, the differentiation between codes highlights that an analysis of codes of conduct alone is insufficient to establish what the CSR approach of a company is. Rather, it is the entire range of codes at organisational and sub-organisational levels that scholars of codes of conduct should be concerned with. (shrink)

This article examines whether the involvement of stakeholders in the design of corporate codes of conduct leads to a higher implementation likelihood of the code. The empirical focus is on Occupational Safety and Health (OSH). The article compares the inclusion of OSH issues in the codes of conduct of 30 companies involved in International Framework Agreements (IFAs), agreed upon by trade unions and multinational enterprises, with those of a benchmark sample of 38 leading Multinational Enterprises in comparable industries. It is (...) found that codes of the IFA group have a higher implementation likelihood in OSH than the codes of the benchmark group. Further, European firms, culturally more used to stakeholder involvement, score higher than their US and Japanese competitors, and hence are more capable of addressing the safety and health issues in international supply chains. The implementation likelihood of codes seems closely related to the type of corporate CSR approach. (shrink)

Developing countries need to reform legislation to ensure the global supply firms in ready-made garment industry is adequately addressing obligations of social responsibility. Literature typically focuses on strategies for raising responsible standards in global buying firms within the RMG industry, but fails to focus on implementing strategies for suppliers in developing countries. This article addresses this gap by specifically focusing on the RMG industry in Bangladesh, the home of the third largest RMG supplier in the world. It concentrates on analysing (...) how and to what extent the law can assist in developing social responsibility performance of the RMG manufacturing firms in developing countries. It ultimately concludes that a new governance approach in laws can effectively increase the social responsibility practice standards of an industry where global buying firms are profit-driven and governmental agencies are either inadequate or corrupt. (shrink)

The term “corporate transparency” is frequently used in scholarly discussions of business ethics and corporate social responsibility (CSR); however, it remains a volatile and imprecise term, often defined incompletely as “information disclosure” accomplished through standardized reporting. Based on the results of empirical studies of organizational behaviors, this paper identifies a new set of managerial practices based on the use of information and communication technologies (ICT) and particularly Internet-based tools. These practices are resulting in what can be termed “dynamic transparency.” ICT (...) allows for an informational environment characterized by two-way exchange between corporations and their stakeholders, which fosters a more collaborative marketplace. It is proposed that such dynamic information sharing, conducted by means of ICT, drives organizations to display greater openness and accountability, and more transparent operations, which benefit both the corporations and their constituents. One of the most important outcomes that will accrue to consumers and other individuals is the “right to know,” especially about corporate strategies and activities that might directly affect their quality of life. This paper demonstrates that dynamic transparency is more desirable and more effective than the more common “static transparency” where firms’ information disclosure is one-way, usually in response to government regulation. We present three ethical arguments to justify the implementation by business firms of dynamic transparency and demonstrate that their doing so is related to CSR and to augment and complement stakeholder engagement and dialogue. The paper concludes with a summary of the possible limits to and the problems involved in the implementation of dynamic transparency for corporations, and suggests some strategies to counter them. (shrink)

Business Ethics: A European Review, EarlyView.

In the applied sciences and in engineering there is often a significant overlap between work at universities and in industry. For the individual scholar, this may lead to serious conflicts when working on joint university–industry projects. Differences in goals, such as the university’s aim to disseminate knowledge while industry aims to appropriate knowledge, might lead to complicated situations and conflicts of interest. The detailed cases of two electrical engineers and two architects working at two different universities of technology illustrate the (...) kinds of problems individual scholars face in university–business collaborations. These cases are based on qualitative interviews and additional data and demonstrate that, while value conflicts emerge on the organizational level, it is primarily the individual researcher who must deal with such conflicts. This analysis adds to existing studies in two ways: first, it explicitly addresses normative issues framed in terms of ethical and social values, thereby going beyond the common social-science perspective of university–business collaboration. Secondly, it provides qualitative insights, thereby identifying details and issues not apparent in quantitative studies. In particular, it is evident that university–industry collaborations are prone to value conflicts not only in research but also in education and job training. (shrink)

In recent years, there has been increasing concern about unethical conduct within corporate business, not least because of the scandalous behavior of former chief executives at top blue chip companies such as Enron, Worldcom, Parmalat, and Volkswagen. These scandals have not only threatened the privileged position of senior corporate employees but also the solvency of the companies they manage and lead. The high profile cases of corporate crime and corruption that occurred in the early 2000s together with the 2008 Wall (...) Street bailouts and the growth in criminal prosecutions since have raised the profile of business ethics to an unprecedented level. Greater public sensitivity toward and awareness about the unlawful and immoral conduct of firms in the United States and elsewhere, has created demand for organizations to become more accountable and socially responsible and prompted greater regulatory scrutiny. It has also served to highlight the embryonic and delimited state of research and scholarship on business ethics, where the focus has tended to remain on leadership. A neglected, though important, line of ethical enquiry concerns followership. Corporate wrongdoing would be less formidable and extensive if it was not aided and abetted. Two key questions arise. First, what prompts followers to support rather than oppose bad leaders? Second, what can be done to stem or at least curtail their allegiance to bad leaders? (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)

This study was designed to examine the prevalence of a code of ethics and to analyze its content among public relations agencies in the United States. Of the 1,562 public relations agencies reviewed, 605 (38.7%) provided an ethical statement. Among the ethical statements provided by these public relations agencies, ‹respect to clients,’ ‹service,’ ‹strategic,’ and ‹results’ were the values most frequently emphasized. On the other hand, ‹balance,’ ‹fairness,’ ‹honor,’ ‹social responsibility,’ and ‹independence’ were the least frequently mentioned in the ethical (...) codes. Also, none of the sampled agencies included any sanctions regarding enforcement of their particular codes of ethics. (shrink)

As a result of recent corporate scandals, several rules have focused on the role played by Boards of Directors on the planning and monitoring of corporate codes of ethics. In theory, outside directors are in a better position than insiders to protect and further the interests of all stakeholders because of their experience and their sense of moral and legal obligations. Female directors also tend to be more sensitive to ethics according to several past studies which explain this affirmation by (...) early gender socialization, the fact that women are thought to place a greater emphasis on harmonious relations and the fact that men and women use different ethical frameworks in their judgments. The goal of this paper is to determine the influence of these characteristics of the Board in terms of promoting and hindering the creation of a code of ethics. Our findings show that a greater number of female directors does not necessarily lead to more ethical companies. Moreover, within Europe as a continent, board ownership leads to an entrenchment of upper-level management, generating a divergence between the ethical interests of owners and managers. In light of this situation, the presence of independent directors is necessary to reduce such conflicts. (shrink)

Research about codes of corporate ethics has hitherto taken a hypothetical, correct meaning of codes for granted. The article problematises the dichotomous categories intrinsic and subjective meanings of codes. I address the question if professionals in finance accept codes of business. The particular mentality of stockbrokers and traders constructs the way they judge restrictions such as company codes of ethics. While neglecting dimensions of ethics beyond known rules, brokers and traders distrust good ethics as a possible end in itself. Many (...) professionals in the financial market perceive efforts to integrate ethical reasoning in work as only means for maximising business opportunities. (shrink)

In this empirical study, we present two new models that are corporate ethics based. The first model numerically quantifies the corporate value index (CV-Index) based on a set of predefined parameters and the second model estimates the market-to-book values of equity in relation to the CV-Index as well as other parameters. These models were applied to Canadian companies listed on the Toronto Stock Exchange (TSX). Through our analysis, we found statistically significant evidence that corporate values (CV-Index) positively correlated with firm (...) performance. The results are even more significant for firms with low market-to-book values. Our empirical findings suggest that corporate ethics is vital for management, employees, shareholders, stakeholders, and the community at large. In addition, we have tested and confirmed five hypotheses that are used to illustrate corporate ethics behavior and performance. (shrink)

This article explains problems and opportunities created by standardized ethics initiatives (e.g., the UN Global Compact, the Global Reporting Initiative, and SA 8000) from the perspective of stakeholder theory. First, we outline differences and commonalities among currently existing initiatives and thus generate a common ground for our discussion. Second, based on these remarks, we critically evaluate standardized ethics initiatives by drawing on descriptive, instrumental, and normative stakeholder theory. In doing so, we explain why these standards are helpful tools when it (...) comes to ‘managing’ stakeholder relations but also face considerable limitations that can eventually hamper their successful expansion. We suspect that this discussion is necessary to conduct meaningful empirical research in the future and also to provide managers with a more clear-cut picture about a successful application of such initiatives. Third, we outline possible ways to cope with the identified problems and thus demonstrate how standard-setting institutions can improve the initiatives they offer. (shrink)

This paper reviews studies of corporate ethical codes published since 2000 and concludes that codes be can effective instruments for shaping ethical behavior and guiding employee decision-making. Culture and effective communication are key components to a code’s success. If codes are embedded in the culture and embraced by the leaders, they are likely to be successful. Communicating the code’s precepts in an effective way is crucial to its success. Discussion between employees and management is a key component of successful ethical (...) codes. (shrink)

Despite increased academic and practitioner interest in codes of conduct, there has been little research into the actual compliance of suppliers in developing countries with the codes of conduct of multinational corporations. This paper addresses this lack by analysing Chinese suppliers' level of compliance with Swedish toy retailers' codes of conduct. Based on unannounced and unofficial interviews with employees of Chinese suppliers, the study shows that all of the nine studied suppliers breached some of the standards in the toy retailers' (...) codes, with over two-thirds of the suppliers not complying with the majority of the studied standards. While there are different explanations of this lack of compliance, the main explanation seems to be that Chinese suppliers successfully deceive toy retailers' monitoring organisations by decoupling the formal monitored part of their organisation from the actual operational part of their organisation. The paper concludes with a discussion of how to increase compliance with MNCs' codes of conduct. (shrink)

Ethical guidelines for psychologists are meant to stimulate and help psychologists to act appropriately with respect to clients, colleagues, and other individuals involved in their professional relations. This paper focuses on the similarity of codes of ethics of psychologists in European countries in general, and on specific ethical dilemmas in the area of work and organizations in particular. First, an overview is given of the development of ethical guidelines in Europe and the USA. Second, the results are presented of a (...) survey by E-mail amongst members of the European Federation of Psychologists’ Associations (EFPA) to identify the differences and similarities between ethical guidelines of the affiliate members. Third, the potential dilemmas of stakeholders in work and organizational assessment are addressed. Finally, the results of a survey among Dutch selection psychologists are presented. The purpose of this study was to examine a possible tension between normative behavior and attitudes about normal behavior. It was concluded that ethical guidelines of European countries cover comparable (sub-)principles and that there are indications that individual psychologists agree with the written principles. In addition, suggestions for future research are given. (shrink)

This paper investigates how specific notions of gender and ethnicity are integrated into diversity discourses presented on 241 top European company websites. Large European companies increasingly disclose equality and diversity policies in statements on websites. Such statements may be used to promote an ethical image of the company in terms of how well it manages diversity and guards against discrimination. In this paper, we argue that diversity statement discourses are important as they play a key part in socially constructing how (...) diversity should be regarded in the company by minority and majority groups, as well as indicating corporate values to external stakeholders. Sometimes, the notions of gender or ethnic diversity are positioned as a liability in need of protection, whilst in others, as a source of competitive advantage. We find evidence of use of discursive tools such as problematisation, rationalisation, fixation, reframing and naturalisation of the notions of gender and ethnic diversity, reinforced by use of symbols, such as statistics, photographs, membership badges and awards. Few statements directly associate gender and ethnic diversity with enhanced corporate performance. We found that diversity statements sometimes appear to reinforce existing business stereotypes of women and people from ethnic minorities, and in a few discourses, create new ones, particularly evident in photographs illustrating the diversity web pages. (shrink)

This paper compares the findings of content analyses of the corporate codes of ethics of Canada's largest corporations in 1992 and 2003. For both years, a modified version of a technique used in several other studies was used to determine and categorize the contents of the codes. It was found, inter alia, that, in 2003, as in 1992, more of the codes were concerned with conduct against the firm than with conduct on behalf of the firm. Among the changes from (...) 1992 to 2003 were a significant increase in the frequency of mention of environmental affairs, legal responsibility as the basis of codes and enforcement/compliance procedures. (shrink)

How can one establish if a corporate code of ethics is ethical in terms of its content? One important first step might be the establishment of core universal moral values by which corporate codes of ethics can be ethically constructed and evaluated. Following a review of normative research on corporate codes of ethics, a set of universal moral values is generated by considering three sources: (1) corporate codes of ethics; (2) global codes of ethics; and (3) the business ethics literature. (...) Based on the convergence of the three sources of standards, six universal moral values for corporate codes of ethics are proposed including: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. Relying on the proposed set of universal moral values, implications are discussed as to what the content of corporate codes of ethics should consist of. The paper concludes with its limitations. (shrink)

The study examines employee, managerial, and ethics officer perceptions regarding their companies codes of ethics. The study moves beyond examining the mere existence of a code of ethics to consider the role that code content and code process (i.e. creation, implementation, and administration) might play with respect to the effectiveness of codes in influencing behavior. Fifty-seven in-depth, semi-structured interviews of employees, managers, and ethics officers were conducted at four large Canadian companies. The factors viewed by respondents to be important with (...) respect to code effectiveness include: provisions of examples; readability; tone; relevance; realism; senior management support; training; reinforcement; living up to standards; reporting requirement; anonymous phone line; communicating violations; and enforcement. The factors found to be potentially important include: justification for provisions; employee involvement; and sign-off requirements. Factors found not to be important include: objectives for the code; prior distribution; testing; and relating ones performance review to compliance with the code. (shrink)

More and more companies are publicly taking a stand on social and political issues such as gay marriage legislation. This paper argues that this type of engagement, which can be called “corporate political advocacy,” raises new conceptual and normative challenges especially for theories of corporate responsibility. Furthermore, it poses practical challenges for managers who are confronted with it. This paper addresses all three challenges: first, it defines and conceptualizes corporate political advocacy and distinguishes it from other forms of corporate political (...) involvement. Second, it makes normative sense of corporate advocacy as an element of corporate responsibility. Third, it reflects on the practical implications for managers dealing with this issue. (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)

This paper examines the extent to which the voluntary adoption of codes of conduct by multinational corporations rendersMNCs accountable for the performance of actions specified in a code of conduct. In particular, the paper examines the ways in which codes of conduct coordinate the expectations of relevant parties with regard to the provision of assistance by MNCs on grounds of rescue or justice. The paper argues that this coordinative role of codes of conduct renders MNCs more accountable for the performance (...) of actions specified in a code of conduct than they would be without a code of conduct. This interpretation of the significance of codes of conduct is contrasted with the view that codes of conduct render MNCs accountable for performing actions specified in a code of conduct by grounding contractual obligations for the performance of such actions. (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)

Corporate codes of conduct are a practical corporate social responsibility (CSR) instrument commonly used to govern employee behavior and establish a socially responsible organizational culture. The effectiveness of these codes has been widely discussed on theoretical grounds and empirically tested in numerous previous reports that directly compare companies with and without codes of conduct. Empirical research has yielded inconsistent results that may be explained by multiple ancillary factors, including the quality of code content and implementation, which are excluded from analyses (...) based solely on the presence or absence of codes.This study investigated the importance of code content in determining code effectiveness by examining the relationship between code of conduct quality and ethical performance. Companies maintaining high quality codes of conduct were significantly more represented among top CSR ranking systems for corporate citizenship, sustainability, ethical behavior, and public perception. Further, a significant relationship was observed between code quality and CSR performance, across a full range of ethical rankings. These findings suggest code quality may play a crucial role in the effectiveness of codes of conduct and their ability to transform organizational cultures.Future research efforts should transcend traditional comparisons based on the presence or absence of ethical codes and begin to examine the essential factors leading to the effective establishment of CSR policies and sustainable business practices in corporate culture. (shrink)

Whether the nation of Israel has become a “light unto the nations” in terms of ethical behavior among its business community remains in doubt. To examine the current state of business ethics in Israel, the study examines the following: (1) the extent of business ethics education in Israel; (2) the existence of formal corporate ethics program elements based on an annual survey of over 50 large Israeli corporations conducted over 5 years (2006–2010); and (3) perceptions of the state of business (...) ethics based on interviews conducted with 22 senior Israeli corporate executives. In general, and particularly as a young country, Israel might be considered to have made great improvements in the state of business ethics over the years. In terms of business ethics education, the vast majority of universities and colleges offer at least an elective course in business ethics. In terms of formal business ethics program elements, many large companies now have a code of ethics, and over time continue to add additional elements. Most respondents believed they worked in ethical firms. Despite these developments, however, there appears to be significant room for improvement, particularly in terms of issues like: nepotism/favoritism; discrimination; confidentiality; treatment of customers; advertising; competitive intelligence; whistle-blowing; worker health and safety; and the protection of the environment. When compared with the U.S. or Europe, most believed that Israeli firms and their agents were not as ethical in business. A number of reasons were suggested that might be affecting the state of business ethics in Israel. A series of recommendations were also provided on how firms can better encourage an ethical corporate culture. The paper concludes with its limitations. (shrink)

This paper reports the results of a study of the top 500 private sector organizations and the top 100 public sector organizations in Sweden. It is a replication of the study by Svensson et al . (2004) . The aim of the study was to describe and compare the business ethics commitment of organizations across the two sectors. The empirical findings indicate that the processes involved in business ethics commitment have begun to be recognized and acted upon at an organizational (...) level in Sweden. Some support is provided to show that codes of ethics are developing in some of Sweden's largest private and public sector organizations – although this is happening to a lesser extent in the public sector. It is noted that an effect of a code of ethics on the bottom line of the business was acknowledged by respondents in both private and public sector organizations. We believe that the supporting measures of business ethics commitment appear to be underutilized in both private and public sector organizations in Sweden (among those that possess codes of ethics), thus indicating that the commitment to business ethics in Swedish organizations has potential for future development. (shrink)

This study examines employee perceptions on the effective adoption of artificial intelligence principles in their organizations. 49 interviews were conducted with employees of 24 organizations across 11 countries. Participants worked directly with AI across a range of positions, from junior data scientist to Chief Analytics Officer. The study found that there are eleven components that could impact the effective adoption of AI principles in organizations: communication, management support, training, an ethics office, a reporting mechanism, enforcement, measurement, accompanying technical processes, a (...) sufficient technical infrastructure, organizational structure, and an interdisciplinary approach. The components are discussed in the context of business code adoption theory. The findings offer a first step in understanding potential methods for the effective adoption of AI principles in organizations. (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)

This paper examines the extent to which the voluntary adoption of codes of conduct by multinational corporations (MNCs) renders MNCs accountable for the performance of actions specified in a code of conduct. In particular, the paper examines the ways in which codes of conduct coordinate the expectations of relevant parties with regard to the provision of assistance by MNCs on grounds of rescue or justice. The paper argues that this coordinative role of codes of conduct renders MNCs more accountable for (...) the performance of actions specified in a code of conduct than they would be without a code of conduct. This interpretation of the significance of codes of conduct is contrasted with the view that codes of conduct render MNCs accountable for performing actions specified in a code of conduct by grounding contractual obligations for the performance of such actions. (shrink)

Globalization theories posit organizational convergence, suggesting that Codes of Ethics will become commonplace and include greater consideration of global issues. This study explores the degree to which the Codes of Ethics of 157 corporations on the Global 500 and/or Fortune 500 lists include the "third generation" of corporate social responsibility. Unlike first generation ethics, which focus on the legal context of corporate behavior, and second generation ethics, which locate responsibility to groups directly associated with the corporation, third generation ethics transcend (...) both the profit motive and the immediate corporate environment. Third generation ethics are grounded in responsibilities to the larger interconnected environment. The results of the study suggest convergence, insofar as Codes of Ethics are becoming standard communication features of corporations across region and industrial sector but still manifest a primary concern with profits and those behaviors which are mandated by law. Only corporations headquartered in the European Union demonstrate a significant degree of global consciousness and reflexivity. However, there is some evidence that third generation ethics and thinking are becoming part of the corporate landscape. More then three quarters of the corporations made at least some reference to third generation ethics. (shrink)

The goals of this research were to (1) explore the direct effects of and interactions between magnitude of consequences and various types of proximity - social, psychological, and physical - on the ethical decision-making process and (2) investigate the influence of empathy on the ethical decision-making process. A carpal tunnel syndrome vignette and questionnaire were administered to a sample of human resource management professionals to test the hypothesized relationships. Significant relationships were found for the main effects between magnitude of consequences (...) and principle-based evaluation, cognitive empathy and principle-based evaluation, and empathy and moral intention. Physical proximity moderated the relationships between magnitude of consequences and utilitarian evaluation as well as magnitude of consequences and moral intention. Cognitive empathy moderated the relationships between magnitude of consequences and principle-based evaluation and physical proximity and utilitarian evaluation. Affective empathy marginally moderated the relationship between physical proximity and principle-based evaluation. Future research directions, management implications, and strengths and weaknesses of the research are discussed. (shrink)

The focus of this paper is to further a discussion of codes of ethics as institutionalized organizational structures that extend some form of legitimacy to organizations. The particular form of legitimacy is of critical importance to our analysis. After reviewing various theories of legitimacy, we analyze the literature on how legitimacy is derived from codes of ethics to discover which specific form of legitimacy is gained from their presence in organizations. We content analyze a sample of codes to consider the (...) question of whether a strategic, self-interested rationale lies behind the adoption of a code of ethics. We propose that the process of employing codes of ethics in this strategic manner has become, through isomorphism, an institutionalized practice that itself confers a cognitive form of legitimacy to the organization and further distances the codes from their moral foundation. (shrink)

This paper takes its point of departure in an article by Stevens [Stevens, B.: 1994, Journal of Business Ethics 54, 163–171], in which she identified a lack of knowledge regarding how corporate codes of ethics are communicated and affect behavior in organizations. Taking heed of this suggested gap, we review studies on corporate codes of ethics with an empirical content, published since 1994. The conclusion of the review is that we still lack knowledge on how codes work, how they are (...) communicated and how they are transformed inside organizations. Stevens’ plea could even be extended, arguing that the knowledge gap might be of even more significance than in the mid-1990s. Some directions for how this situation can be approached in future studies are outlined in the paper. (shrink)

This article analyzes the issue of organizational transparency through the lens of Thomas Aquinas’ ethics. It provides moral justification for current claims about corporate transparency and sheds light on the ethical values and virtues affecting information disclosure decisions. Transparency is conceptualized as an informational mechanism necessary for performing the virtues of truthfulness, justice, and prudence. This article extends the organizational transparency and corporate social responsibility literatures by providing an alternative moral justification grounded in virtue-based theory, which extends our understanding of (...) the information disclosure decisions made by management. (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)

The literature states that both situational and individual factors contribute to corrupt behavior. This study investigates the influence of rarely empirically investigated situational factors - the size of the bribe, time pressure, and the degree of abstractness of the business code - on the Model of Corrupt Action that describes the subjective decision making process of corrupt actors. To test the effects, I used an experimental simulation design. Only few effects were found. Thus, my results show a certain robustness of (...) corrupt behavior against the examined situational influences. Based on these results, I discuss implications for the prevention of corruption in organizations. (shrink)

This article reports on empirical research that establishes strong, positive, and significant correlations between the ethical issues of bullying and unfair supervision in the workplace and the presence of Corporate Psychopaths. The main measure for bullying is identified as being the witnessing of the unfavorable treatment of others at work. Unfair supervision was measured by perceptions that an employee's supervisor was unfair and showed little interest in the feelings of subordinates. This article discusses the theoretical links between psychopathy and bullying (...) and notes that little empirical evidence confirms the connection in management research. The sample of 346 Australian senior white collar workers used in the research is described as is the measure of behavior for identifying psychopaths. The findings are then presented and discussed showing that when Corporate Psychopaths are present in a work environment, the level of bullying is significantly greater than when they are not present. Further, that when Corporate Psychopaths are present, supervisors are strongly perceived as being unfair to employees and disinterested in their feelings. This article concludes that around 26% of bullying is accounted for by 1% of the employee population, those who are Corporate Psychopaths. (shrink)

In contrast to the recent rise to economic importance of offshore finance centres (OFCs), the topic of taxation has so far created little interest among scholars of corporate social responsibility (CSR). This paper makes two contributions to addressing this lacuna. Applying a range of influential normative theories of ethics, it first offers an ethical evaluation of tax havens. Second, the paper examines what use large firms that are headquartered in two OFCs—Bermuda and the Cayman Islands—make of formal CSR tools. The (...) emerging duplicity in tax havenbased companies professing social responsibility highlights once more the political nature of CSR, where at least some firms and/or industries can successfully limit government power to enact regulation as well as shape the discourse around CSR. The study of CSR in OFC-based firms thus calls into question the usefulness of the often quoted definition of CSR as going beyond the law. (shrink)

This article reviews the concept of moral responsibility in business ethics and examines the seven previous articles using several types of responsibility in business as the overriding construct to gain a fuller understanding of the ethical impact of these articles. The types of responsibility that are used in this analysis are: legal, corporate, managerial, social, stakeholder, and societal. Observations about how normative ethical principles might also be applied to these articles are also advanced. This article concludes with a call for (...) more conceptual and empirical research into the notion of responsibility in business. (shrink)

Most professional societies, scientific associations, and the like that undertake to write a code of ethics do so using other codes as models but without much (practical) guidance about how to do the work. The existing literature on codes is much more concerned with content than procedure. This paper adds to guidance already in the literature what I learned from participating in the writing of an important code of ethics. The guidance is given in the form of “rules” each of (...) which is explained and (insofar as possible) justified. The emphasis is on procedure. (shrink)

The paper offers a solution to the problem of specifying computational systems that behave in accordance with a given set of ethical principles. The proposed solution is based on the concepts of ethical requirements and ethical protocols. A new conceptual tool, called the Control Closure of an operation, is defined and used to translate ethical principles into ethical requirements and protocols. The concept of Generalised Informational Privacy (GIP) is used as a paradigmatic example of an ethical principle. GIP is defined (...) in such a way as to (i) discriminate specific cases in which an individual’s GIP can be infringed without accessing the individual’s data; (ii) separate unauthorised accesses to data that do not respect the right to GIP from access that do; and (iii) distinguish different degrees of GIP. Finally a camera phone is used to illustrate the proposed solution. (shrink)

The frequency of discriminatory language in job advertisements placed by U. S. multinational corporations operating in Mexico was compared with that of Mexican companies using content analysis. A sample of 300 ads placed by companies from each culture was analyzed and coded by two groups of coders to calculate the frequency of discriminatory language in the job ads with respect to age, gender, physical appearance and marital status. Results of a chi square analysis revealed that U. S. multinationals firms in (...) Mexico utilize discriminatory language in job ads less frequently in the categories of age, gender and marital status. This result suggests that the legal and cultural framework of the country of origin of U. S. enterprises in Mexico may be influencing their actual recruitment practice in Mexico, and in turn, help them in setting a positive example of non-discrimination in recruitment among their Mexican counterparts. (shrink)

Business codes are a widely used management instrument. Research into the effectiveness of business codes has, however, produced conflicting results. The main reasons for the divergent findings are: varying definitions of key terms; deficiencies in the empirical data and methodologies used; and a lack of theory. In this paper, we propose an integrated research model and suggest directions for future research.

Following the offshoring of production to developing countries by transnational corporations, unions and non-governmental organisations have criticised working conditions at TNCs' offshore factories. This has led to the emergence of two different approaches to operationalising TNC responsibilities for workers' rights in developing countries: codes of conduct and global agreements. Despite the importance of this development, few studies have systematically compared the effects of these two different ways of dealing with workers' rights. This article addresses this gap by analysing how codes (...) of conduct and global agreements both independently and interactively affect workers' rights. We do this based on a qualitative study of the Sri Lankan operations of a Swedish TNC in Sri Lanka, and on interviews with union and NGO representatives actively involved in codes of conduct and global agreements. Our results indicate that global agreements independently address all the aspects included in codes of conduct, while also addressing additional, more process-oriented aspects of workers' rights. Hence, on their own, global agreements seem to comprise the superior approach to promoting workers' rights. Furthermore, our results indicate that promoting codes of conduct has negative interactive effects on global agreements. Based on these results, we argue that the current focus on codes of conduct is counterproductive for the promotion of workers' rights. (shrink)

We analyze ethical policies of firms in industrialized countries and try to find out whether culture is a factor that plays a significant role in explaining country differences. We look into the firm’s human rights policy, its governance of bribery and corruption, and the comprehensiveness, implementation and communication of its codes of ethics. We use a dataset on ethical policies of almost 2,700 firms in 24 countries. We find that there are significant differences among ethical policies of firms headquartered in (...) different countries. When we associate these ethical policies with Hofstede’s cultural indicators, we find that individualism and uncertainty avoidance are positively associated with a firm’s ethical policies, whereas masculinity and power distance are negatively related to these policies. (shrink)

Multinational corporations dominate the global business arena, but new expectations for MNC boards call to question how they might effectively manage global stakeholder relationships in this new era of accountability. Uniting political behavior theory, which describes a board’s international political orientation, and global operating governance systems outlining a set of board behaviors, we develop a typology of four types of boards. We then provide recommendations for the development of an integrative governance structure, taking into account the mechanisms, structure, endorsements, and (...) codes of conduct that MNCs can use to promote ethical behavior across MNC horizons. (shrink)