The purpose of the study is to empirically examine moral ideology, ethical beliefs, and moral intensity in the context of Pakistan. Jones (Academy of Management Review, 16(2), 366–395, 1991) model and Muncy and Vitell (Journal of Business Research, 24, 297–311, 1992) have extensively been investigated and validated in west for examining ethical decision-making process. This study examines and validates these models in a collectivist cultural settings, i.e., Pakistan. A self-administered online survey technique using convenience sampling technique was used to gather (...) data from a sample of 1000 consumers in Pakistan. Final analysis was carried out on 338 valid responses. Data was analyzed using from descriptive analysis, correlation analysis, confirmatory factor analysis (CFA), exploratory factor analysis (EFA), and model estimation carried out AMOS. Cronbach’s α was used to test the reliability of the instrument. A majority of the consumers were high on idealism and low on relativism. Consumers dejected questionable activities that have harmful outcomes more than ones that have harmless outcomes. Both idealism and relativism are found to significant predict moral intensity. However, no relationship has been found between moral ideology and ethical beliefs. Consumer’s ethical beliefs are found to significantly affect moral intensity and behavioral intention. Social moral intensity is found to mediate the relationship of relativism and harmful ethical beliefs. The study is among the pioneer studies in Pakistan that examines the link of moral ideology, moral intensity, and ethical beliefs. The study provides an Urdu version of scales that can be utilized for further exploration and validation. (shrink)

Corporate ethical values (CEVs) can be viewed outside the realm of organizational training, standard operating procedures, reward and punishment systems, formal statements, and as more representative of the real nature of the organization (Organ, 1988). Past researchers have empirically demonstrated the direct influence of CEVs on job performance. This study argues that employees' perception of organizational fairness will create perceptual distortion of CEVs. The results of the study indicate that perceived fairness moderates the influence of CEVs on two seminal outcomes, (...) namely, job performance and commitment. The study offers prescriptive and descriptive insights to both academe and industry to understand the influence of CEVs and fairness on the performance outcomes of employees. (shrink)

This study provides a comparison of the ethical perceptions of managers and non-managers, including professionals, teachers, sales persons and clerks, as well as technical and plant workers. Data of working individuals were collected in Hong Kong in the form of questionnaires which contain vignettes of questionable ethical issues. Factor analysis was used to identify the major ethical dimensions which were then used as the basis of comparison. Regression analyses were used to study the effect of various variables on ethical perceptions (...) in terms of the identified dimensions. Our study reviews that managers tend to possess deontological views that are more ethical than that found in other occupations. The gap between managers and professionals in perceiving unethical behavior is narrower compared to that between the former and individuals in other occupations. The acceptability of unethical behavior tends to decline with income. Besides, there are indications that people working in non-profit organizations tend to have higher ethical standards. Based on our results, recommendations are made to improve the ethical culture of organizations. (shrink)

This article explores the influence that an organisation's corporate values have on employees' behaviour and values both within and outside the work environment. In particular, it focuses on the impact of these values on the personal buying behaviour of employees. The empirical research was undertaken within a case study organisation that produces wine in Spain and involved interviews with senior management, an analysis of company documentation, as well as group discussions with employees supported by an employee survey. The article argues (...) that an organisation's corporate values influence not only its employees' behaviour within the work environment, but also impacts on their global values system outside of the work environment. In particular, this was evident within the employees' buying behaviour practices in relation to supplier loyalty and environmental concern. This has implications for business ethics as an organisation's value system may go beyond the purely business context. Organisations need to be aware of their impact on employees' behaviour outside of the work environment; this is particularly the case for multinational companies working across many cultures. (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)

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)

We extend prior research of deceitful behavior by studying the reactions of those who are targets of deception and how a specific attribute of communication media, cue multiplicity , influences such reactions. We report on a laboratory experiment involving dyads asked to engage in a stock share purchase exercise. We find that when a broker is perceived to act deceitfully by the buyer, the buyer reacts with negative affect (anger) which provokes subsequent acts of revenge against the broker. Importantly, we (...) find that media with higher cue multiplicity attenuate buyer anger as well as lessen the propensity for the buyer to seek retaliatory acts of revenge. We further find that moral anger mediates the effect of buyers’ perceived deception on revenge. (shrink)

In general, the business ethics literature has treated the conceptual domains and outcomes of macro-level, meso-level, and micro-level ethical influence separately. However, this singular treatment ignores the synergies and tensions that can arise across these different types of ethical influence. Using sales as a research context, the current study argues that all three ethical frames of references are important in shaping employee behavior and performance and, as such, should be examined simultaneously. The findings show that industrial ethical climate and salesperson (...) moral equity are positively associated with salesperson customer orientation. In addition, industrial and organizational ethical norms have a stronger joint effect on customer orientation than either ethical climate alone. More specifically, a more ethical organizational climate enhances the positive effects of the industrial ethical climate on customer orientation. Furthermore, whereas salesperson moral equity is significantly associated with salesperson customer orientation, strong moral equity beliefs in situations requiring adaptive selling result in weaker sales outcomes. This study concludes with a set of theoretical and actionable implications, as well as a discussion of future research avenues. (shrink)

Ethics position theory (EPT) maintains that individuals’ personal moral philosophies influence their judgments, actions, and emotions in ethically intense situations. The theory, when describing these moral viewpoints, stresses two dimensions: idealism (concern for benign outcomes) and relativism (skepticism with regards to inviolate moral principles). Variations in idealism and relativism across countries were examined via a meta-analysis of studies that assessed these two aspects of moral thought using the ethics position questionnaire (EPQ; Forsyth, Journal of Personality and Social Psychology39, 175–184, 1980). (...) This review identified 139 samples drawn from 29 different countries, for a total sample of 30,230 respondents, and concluded that (a) levels of idealism and relativism vary across regions of the world in predictable ways; (b) an exceptionist ethic is more common in Western countries, subjectivism and situationism in Eastern countries, and absolutism and situationism in Middle Eastern countries; and (c) a nation’s ethics position predicted that country’s location on previously documented cultural dimensions, such as individualism and avoidance of uncertainty (Hofstede, Culture’s Consequences: International Differences in Work-Related Values, 1980). Limitations in these methods and concerns about the validity of these cross-cultural conclusions are noted, as are suggestions for further research using the EPQ. (shrink)

We build on limited research concerning the mediation processes associated with the relationship between ethical culture and employee outcomes. A multidimensional measure of ethical culture was examined for its relationship to overall Person-Organization (P–O) fit and employee response, using a sample of 436 employees from social economy and commercial banks in Spain. In line with previous research involving unidimensional measures, ethical culture was found to relate positively to employee job satisfaction, affective commitment, and intention to stay. New to the literature, (...) ethical culture was also found to be associated positively with employee willingness to recommend the organization to others. These effects were observed even when perceptions of P–O fit were controlled. Importantly, ethical culture was also positively related to overall P–O fit, which in turn, partially mediated the relationship between ethical culture and employee outcomes. Our findings add to studies that focus on the importance of the degree of ethical congruence between the individual employee and the organization. They suggest that ethical culture, with its expected impact on virtuousness and emotional well-being, will positively influence outcomes independently of the degree to which there is a match between employee and organizational values. (shrink)

This paper presents a study that identifies a stakeholder-defined concept of Corporate Responsibility (CR) in the context of a UK financial service organisation in the immediate pre-credit crunch era. From qualitative analysis of interviews and focus groups with employees and customers, we identify, in a wide-ranging stakeholder-defined concept of CR, six themes that together imply two necessary conditions for a firm to be regarded as responsible—both corporate actions and character must be consonant with CR. This provides both empirical support for (...) a notable, recent theoretical contribution by Godfrey (in Acad Manag Rev 30:777–798, 2005 ) and novel lessons for reputation management practice. (shrink)

Business and Society Review, Volume 127, Issue 1, Page 69-96, Spring 2022.

Extant research indicates a positive and significant relationship between corporate ethical values and employees’ job performance. Furthermore, past studies have empirically demonstrated that perceived fairness moderates the influence of corporate ethical values on employee performance. In other words, high congruity between employees’ and an organization’s ethical values will result in superior employee performance outcome. This research aims to develop a broader perspective on the complex relationship between CEV and employee outcomes. The article will first examine the direct influence of CEV (...) on organizational citizenship behaviors and alienation from work, and then the moderating role of perceived fairness. The researcher found a significant direct effect of CEV on both OCBs and AFW, but that perceived fairness does not moderate these relationships. A key implication of findings of this research is that although perception of fairness may suppress the impact of organizational ethical transgressions on employee performance in the short run, as earlier studies have demonstrated, but in the long term, implications of perceived fairness are multifold. (shrink)

Monetary intelligence theory asserts that individuals apply their money attitude to frame critical concerns in the context and strategically select certain options to achieve financial goals and ultimate happiness. This study explores the dark side of monetary Intelligence and behavioral economics—dishonesty. Dishonesty, a risky prospect, involves cost–benefit analysis of self-interest. We frame good or bad barrels in the environmental context as a proxy of high or low probability of getting caught for dishonesty, respectively. We theorize: The magnitude and intensity of (...) the relationship between love of money and dishonest prospect may reveal how individuals frame dishonesty in the context of two levels of subjective norm—perceived corporate ethical values at the micro-level and Corruption Perceptions Index at the macro-level, collected from multiple sources. Based on 6382 managers in 31 geopolitical entities across six continents, our cross-level three-way interaction effect illustrates: As expected, managers in good barrels, mixed barrels, and bad barrels display low, medium, and high magnitude of dishonesty, respectively. With high CEV, the intensity is the same across cultures. With low CEV, the intensity of dishonesty is the highest in high CPI entities —the Enron Effect, but the lowest in low CPI entities. CPI has a strong impact on the magnitude of dishonesty, whereas CEV has a strong impact on the intensity of dishonesty. We demonstrate dishonesty in light of monetary values and two frames of social norm, revealing critical implications to the field of behavioral economics and business ethics. (shrink)

Ethics has assumed a dominant position in the current economic debate, and this study focuses on ethics as a legitimate underpinning to good business decision making. Using a self-response survey of marketing managers in Spain, the current theory on ethical decision making is extended. Results support the mediating influence of the PRESOR construct (an individual’s perception of the importance of ethics and social responsibility for the effectiveness of the organization) on relativistic and idealistic moral thinking when one is considering the (...) moral intensity of a situation. In addition, the study found support for the relationship between relativism (negative), idealism (positive), corporate ethical values, and job satisfaction, thereby providing additional support for the prior theory. Finally, a thorough review of the extant literature and suggestions for future ethics research in the marketing field are included. (shrink)

Three ethics program components, a code of ethics, ethics training initiatives and ethics-oriented performance appraisal content, were examined for their relationship to ethical intent using a sample of 525 employees from the Spanish financial services industry. As expected, all three components contributed to the prediction of ethical intent. Importantly, clusters of employees who reported experiencing distinct combinations of the program components were identified and compared for their level of ethical intent. Employees who perceived all three components to be strongly implemented (...) reported significantly higher levels of ethical intent relative to those who viewed the components as either all weakly implemented or not present. Combinations including training initiatives plus one other element had a similar impact to the fully implemented approach. Contrary to expectations, ethics-oriented performance appraisal content did not relate more strongly to ethical intent than codes of ethics. (shrink)

We examine the link between the growing emphasis on corporate social responsibility at the organizational level and beliefs about social responsibility at work (SRW) expressed by individuals. Drawing from theories of professionalism and diffusion of innovations (including practices and beliefs), we advance hypotheses about beliefs of managers and non-managers in 11 countries at two time periods, and use a unique international data set to test our hypotheses. Our general prediction that managers would score higher than non-managers on a measure of (...) SRW was not supported. However, further analysis revealed a more complex relationship moderated by the contextual factors of time frame and country inequality level. We discuss implications and extensions for future research. (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)

Studies on the ethical culture of organizations have mainly focused on ethical culture at the organizational level. This study explores ethical culture at the team level because this can add a more detailed understanding of the ethics of an organization, which is necessary for more customized and effective management interventions. To find out whether various teams within an organization can have different ethical cultures, we employ the differentiation perspective and conduct a survey of 180 teams from one organization. The results (...) show that there are significant differences between the ethical cultures of teams. These differences are relevant given the different relationships that were established between high and low clusters of team ethical culture and two outcome variables. The results also show that the dimensions of ethical cultures among teams have different patterns, which indicates the usefulness of using a multidimensional scale for capturing further differences among team ethical cultures. (shrink)

This paper presents a review of 100 empirical papers studying corporate codes of ethics in business organizations from the time period mid-2005 until mid-2016, following approximately an 11-year time period after the previous review of the literature. The reviewed papers are broadly categorized as content-oriented, output-oriented, or transformation-oriented. The review sheds light on empirical focus, context, questions addressed, methods, findings and theory. The findings are discussed in terms of the three categories as well as the aggregate, stock of empirical CCE (...) studies in comparison with previous reviews, answering the question “where are we now?” Content and output studies still stand for the majority of the studies, whereas the transformation studies are fewer. Within these areas, two new trends are found to have emerged: discursive analyses and a focus on labor conditions. The review finds that the content of CCEs is still predominantly self-defensive, that CCEs are insufficient in themselves in terms of protecting workers’ rights, that CCEs are likely to encounter tensions when implemented across national and organizational boundaries, and that while perception of CCEs is generally positive, CCEs may lead to both positive and negative outcomes. Based on these findings, potential areas for further exploration in the area of CCE research are suggested. (shrink)

Drawing on the Agency-Stewardship approach, which suggests that manager profile may range from the agent model to the steward model, this article aims to examine how important CEOs are to corporate social responsibility (CSR). Specifically, this exploratory study proposes the existence of a relationship between manager profile and CSR practices and that this relation is mediated by the perceived role of ethics and social responsibility. After applying a mediated regression analysis using survey information collected from 149 CEOs in Spain, results (...) show that those closer to the steward model are more inclined to attach great importance to ethics and social responsibility, and to implement CSR practices in their companies. Results also provide support for the suggested mediating effect. Thus, this article extends research in understanding top managers as drivers for CSR and suggests new ways to deal with this issue empirically. (shrink)

We examine the link between the growing emphasis on corporate social responsibility at the organizational level and beliefs about social responsibility at work (SRW) expressed by individuals. Drawing from theories of professionalism and diffusion of innovations (including practices and beliefs), we advance hypotheses about beliefs of managers and non‐managers in 11 countries at two time periods, and use a unique international data set to test our hypotheses. Our general prediction that managers would score higher than non‐managers on a measure of (...) SRW was not supported. However, further analysis revealed a more complex relationship moderated by the contextual factors of time frame and country inequality level. We discuss implications and extensions for future research. (shrink)

The concept of corporate social responsibility is becoming integral to effective corporate brand management. This study adopts a multidimensional and cross-country perspective of the concept and analyses consumer perceptions of behaviour of four leading consumer products manufacturers. Data was collected from consumers in two countries – Spain and the UK. The study analyses consumers’ degree of interest in corporate responsibility and its impact on their perception about the company. The findings here suggest a weak impact of company-specific communication on consumers’ (...) perception. The implications of this study are relevant to companies for strengthening their social responsibility associations with the consumers. (shrink)

A study of 612 CPAs employed in four separate regions of the People’s Republic of China shows that they exhibit ethical orientations that are not significantly different from one another and that they do not, as a group identify with the Subjectivist description provided in the Forsyth et al. (Journal of Business Ethics 8(83):813–833, 2008) meta-analytic international study involving the Ethical Position Questionnaire. Confirmatory factor analysis did however establish the validity of the instrument as a measure of idealistic and relativistic (...) tendencies. It was established that the ethical tone within local accounting firms plays a significant role in forming ethical positions and that these variables together work to influence ethical judgement making with respect to issues involving independence and objectivity. The constructs of relativism and idealism act as reliable predictors of moral choice, but need to be carefully interpreted in the context of field research. The study highlights concerns about the ethicality of a fledgling group of professionals having to cope with the exigencies associated with the world’s fastest developing economy. (shrink)

This study explores the impact of both individual ethics (IE) and organizational ethics (OE) on ethical intention (EI). Ethical intention, or the individual's intention to engage in ethical behavior, is useful as a dependent variable because it relates to behavior which can be an expression of values, but also is influenced by organizational and societal variables. The focus is on EI in international business decision-making, since the international context provides great latitude in making ethical decisions. Results demonstrate that both IE (...) and OE influence EL Ethical congruence is also discussed as a positive influence. Younger managers are more influenced by OE than older managers. The findings call for creating governance mechanisms to enhance ethical congruence, thereby increasing the likelihood of managers making ethical choices in organizational decision-making. (shrink)

In this conceptual article, we look at the impact of culture on ethical decision making from a Douglasian Cultural Theory (CT) perspective. We aim to show how CT can be used to explain the diversity and dynamicity of ethical beliefs and behaviours found in every social system, be it a corporation, a nation or even an individual. We introduce CT in the context of ethical decision making and then use it to discuss examples of business ethics in the Indian business (...) context. We argue that the use of CT allows for a theoretically more sophisticated treatment of culture in ethical decision making and thus the avoidance of some common problems with existing cross-cultural studies of business ethics. In our discussion, we raise questions about the compatibility between management systems and processes created in one context and ethical behaviours in another. (shrink)

Globalization has changed the nature of business in the twenty-first century :481–502, 2010). With the increased internationalization of multinational corporations, the need to address international marketing ethics arises :481–493, 2005). Given the diversity of environments and cultures, ethical issues are numerous and complicated :3–24, 2001). The understanding of international marketing ethics is critical to academics as well as practitioners. This paper is a literature review of the study of ethics in international marketing. In order to develop a comprehensive review of (...) articles, we review topics such as ethical problems, moral philosophies, and culture and ethics. We also discuss the methodological procedures that are used in international marketing ethics. Researchers and practitioners alike can use this research on international marketing ethics to discuss the phenomena and subsequently lead to future work research. (shrink)

Corporate sustainability can be defined as organizations’ commitment to profitability, environment, and social well-being. This study uses a transactional culture analysis of CS reporting practices to explain why some Indian organizations conform to voluntary CS reporting guidelines and others do not. The literature contains two different perspectives on culture, defined broadly as a set of values that guide people’s behavior at a given time. Most past studies typically use national culture to explain differences in CS practices across nations. This concept (...) embeds corporate cultures within the larger national culture, neglecting intranation diversity. Conversely, according to the transactional culture approach used in this study, cultures are plural and independent of geoethnic boundaries, and emerge through social transactions. TCA encourages multilevel explorations of complex social phenomena. Since CS reporting preferences are the outcome of ongoing transactions among organizational stakeholders across different levels, TCA is more appropriate for this study. Since this application requires an understanding of social accountability, the authors use Mary Douglas’s Cultural Framework, a transactional framework of social accountability. A qualitative exploration of six Indian organizations using DCF reveals different dominant forms of social accountability in these organizations: either alone or as paired hybrids. Consequently, each organization prioritizes different stakeholders and reacts differently to voluntary CS reporting guidelines. Identifying the dominant form or forms of social accountability in their organizations and understanding their underlying reasons for resisting voluntary CS guidelines enables managers to secure better collaboration for their CS initiatives. (shrink)

Not much has been written about how the ethics of U.S. business executives are perceived by the American public, yet the perception of integrity is important to both businesses and their investors. This study examines the U.S. public’s perceptions of the ethics of American business executives using Gallup Poll data for the past thirty years. Organizations with unethical executives have trouble attracting investors, customers, and new managerial talent. They suffer lawsuits, market share deterioration, and often prison time for the once-revered (...) leaders. This study also looked at the U.S.’s relative standing on the Corruption Perceptions Index and the Edelman Trust Barometer. Confidence in the ethics of the U.S. business executive remains fairly low on the Gallup Poll surveys and the U.S. has declined on the CPI and Edelman Trust Barometer. (shrink)

This study examines the influence of ethics instruction, religiosity, and intelligence on cheating behavior. A sample of 230 upper level, undergraduate business students had the opportunity to increase their chances of winning money in an experimental situation by falsely reporting their task performance. In general, the results indicate that students who attended worship services more frequently were less likely to cheat than those who attended worship services less frequently, but that students who had taken a course in business ethics were (...) no less likely to cheat than students who had not taken such a course. However, the results do indicate that the extent to which taking a business ethics course influenced cheating behavior was moderated by the religiosity and intelligence of the individual student. In particular, while students who were highly religious were unlikely to cheat whether or not they had taken a business ethics course, students who were not highly religious demonstrated less cheating if they had taken a business ethics course. In addition, the extent of cheating among highly intelligent students was significantly reduced if such students had taken a course in business ethics. Likewise, individuals who were highly intelligent displayed significantly less cheating if they were also highly religious. The implications of these findings are discussed. (shrink)

In this article, we focus on the cross-cultural aspects of the implementation of an American company's code of ethics into its Swedish subsidiary. We identify the cross-cultural stories that the receivers in the subsidiary use when trying to explain the parent's code and conceptualize these stories as part of an emerging narrative of national belonging and differences. The receivers resisted the code by amplifying the importance of national identity. Rather than stimulating a discussion on ethics that might have strengthened the (...) ties between the parent and the subsidiary, the outcome of the code implementation had the opposite effect. The article concludes by stressing the process of implementing codes across cultures rather than code content. (shrink)

Our research’s aim is to assess the effect of cultural factors on business ethical decision-making process in a Western cultural context and in a non-Western cultural context. Specifically, this study investigates ethical perceptions, religiosity, personal moral philosophies, corporate ethical values, gender, and ethical intentions of U.S. and Moroccan business managers. The findings demonstrate that significant differences do exist between the two countries in idealism and relativism. Moroccan managers tend to be more idealistic than the U.S. managers. There is a strong (...) positive relationship between religiosity and idealism. There were mixed findings in examining the correlates of religiosity and various components of ethical intentions. Moroccan managers were more homogenous in their corporate ethical values than were the U.S. managers. The results demonstrate that (in general) idealism is a good predictor of ethical intentions and behaviors. Additionally, managers from the two countries differed in the degree of relationship between perceptions and intentions in three of the four scenarios. This study’s results confirm other research findings that, in general, female business managers have higher ethical sensitivity in terms of their ethical judgment than their male counterparts. Managerial implications are also discussed. (shrink)

In recent years there have been evergrowing concerns regarding environmental decline, causing some companies to focus on the implementation of environmentally friendly supply, production and distribution systems. Such concern may stem either from the set of beliefs and values of the company's management or from certain pressure exerted by the market - consumers and institutions - in the belief that an environmentally respectful management policy will contribute to the transmission of a positive image of the company and its products. Sometimes, (...) however, ethics and market rules are not enough to deal with this situation and specific laws must be considered. This is the case when companies base their activity on the 'ethics of self-interest' concentrating their efforts on projecting an adequate image - e.g. environmental respect - rather than fundamentally behaving in environmentally respectful ways. This article, taking as reference the SME context, discusses the reasons for implementing environmentally friendly systems. Both ethics and business seem to be relevant and, therefore, a certain balance between market and interventionism seems to be necessary. (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)

In 2004, the United States Sentencing Commission amended the Federal Sentencing Guidelines to allow firms that create “effective compliance and ethics programs” to receive better treatment if prosecuted for fraud. Effective compliance and ethics, however, appear to be limited to activities focused on complying with the firms’ internal legal and ethical standards. We explored a potential connection between the firms’ external corporate social responsibility (CSR) behaviors and internal compliance: Is there an organizationally valid relationship between these two firm activities? That (...) is, when organizations demonstrate CSR with behaviors external to the firm, such as employee volunteerism, are their employees more likely to demonstrate uncompromised legal and ethical compliance behavior internally? We collected data from 164 working professionals enrolled in a top-tier MBA program in the southeastern United States regarding their employer-sponsored volunteer activities and their intentions to comply in various organizational compliance vignettes. We found that employer-sponsored volunteerism is associated with uncompromised compliance choices in one of the three vignettes. This finding indicates preliminary support for further inquiry into the relationship within the firm between external CSR behaviors and policies regarding organizational compliance. Post hoc analyses suggest that employer-sponsored volunteerism is strongly associated with a positive organizational identity, but organizational identity is not associated with the significant compliance vignette. This evidence suggests that the underlying mechanism that connects external CSR behaviors and internal compliance intentions is complex and requires future study. (shrink)

Examination of the application of virtue ethics to business has only recently started to grapple with the measurement of virtue frameworks in a practical context. This paper furthers this agenda by measuring the impact of virtue at the level of the organisation and examining the extent to which organisational virtue impacts on moral attentiveness and the perceived role of ethics and social responsibility in creating organisational effectiveness. It is argued that people who operate in more virtuous organisational contexts will be (...) expected to be more attentive to ethical issues and in turn perceive a greater role for ethics and social responsibility in business. Analysis of results based on a sample of 137 HR professionals shows that where people report that their organisation provides meaningful work, they are more likely to display reflective MA and the belief that ethics and social responsibility are compatible with business objectives, suggesting that organisations who are interested in promoting an ethical culture should focus on their work structures and practices. More generally, OV is shown to have a more complex relationship with PRESOR than hypothesised pointing towards a more nuanced view of OV. The paper examines the implications of the results for organisations and research. (shrink)

Corporate social reporting, while not mandatory in most countries, has been adopted by many large companies around the world and there are now a variety of competing global standards for non-financial reporting, such as the Global Reporting Initiative and the UN Global Compact. However, while some companies (e. g., Henkel, BHP, Johnson and Johnson) have a long standing tradition in reporting non-financial information, other companies provide only limited information, or in some cases, no information at all. Previous studies have suggested (...) that there are, country and industry-specific, differences in the extent of CSR reports (e. g., Kolk et al.: 2001, Business Strategy and the Environment 10, 15-28; Kolk: 2005, Management International Review 45, 145-166; Maignan and Ralston: 2002, Journal of International Business Studies 33(3), 497-514). However, findings are inconclusive or contradictory and it is often difficult to compare previous studies owing to the idiosyncratic methods used in each study (Graafland et al.: 2004, Journal of Business Ethics 53, 137-152). Furthermore, previous studies have relied mainly on simple measures, such as word counts and page counts of reports, to compare the extent of reporting that may not capture significant differences in the content of the reports. In this article, we seek to overcome some of these deficiencies by using textual analysis software and a more robust statistical method to more objectively and reliably compare the CSR reports of firms in different industries and countries. We examine a sample of leading companies in four countries (US, UK, Australia, and Germany) and test whether or not membership of the Global Compact makes a difference to CSR reporting and is overcoming industry and country specific factors that limit standardization. We conclude that GlobalCompact membership is having an effect only in certain areas of CSR reporting, related to the environment and workers, and that businesses from different countries vary significantly in the extent to which they promote CSR and the CSR issues that they choose to emphasize in their reports. These country differences are argued to be related to the different institutional arrangements in each country. (shrink)

This paper argues that Shanahan and Hyman’s Virtue Ethics Scale should be abandoned and that work should begin to develop better-grounded measures for identifying individual business virtue in context. It comes to this conclusion despite the VES being the only existing measure of individuals’ virtues that focuses on business people in general, rather than those who hold specific leadership or audit roles. The paper presents a study that, in attempting to validate the VES, raises significant concerns about its construction. In (...) particular, investigation of the VES items leads to adjustments in the language used and examines participants’ understanding of the virtue terms and their descriptors. Confirmatory factor analysis of data collected from a sample of 137 HR practitioners establishes that the 6-factor solution identified by Shanahan and Hyman is not appropriate for the sample under examination. Rather, exploratory factor analysis results in three dimensions based in 13 items focusing on the individuals’ reliability, resourcefulness, and leadership. Finally, multiple regression establishes that these dimensions do not on the whole show associations with MA or PRESOR, two measures through which it would be expected to establish convergent and divergent validity. The paper concludes by suggesting guidelines for the development of future measures of IBV. (shrink)