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)

One of the main objectives of an ethics program is to improve the ethical culture of an organization. To date, empirical research treats at least one of these concepts as a one-dimensional construct. This paper demonstrates that by conceptualizing both constructs as multi-dimensional, a more in-depth understanding of the relationship between the two concepts can be achieved. Through the employment of the Corporate Ethical Virtues Model, eight dimensions of ethical culture are distinguished. Nine components of an ethics program are identified. (...) To assess the relationship between ethics programs and ethical culture, a survey was conducted of 4,056 members of the U. S. working population. The results show that the relationships between the components of an ethics program and the dimensions of ethical culture differ in strength, nature, and significance. Implications for research and practice are discussed. (shrink)

The article deals with the influence of organizational ethics program components on managerial ethical behavior. The main aim was to establish which EP components are perceived as valuable and useful to foster the ethical behavior of managers. Moreover, we also aimed to investigate the role of ethics training in this context and to explore whether it can potentially increase managers’ trust in EP components as effective tools for the promotion of ethical behavior. The article advances the EP theory in several (...) ways. It offers novel insights into both business ethics and EP development in the specific cultural and social circumstances of a former socialist country in the Central and Eastern European region, Slovakia. It shows that codes of ethics and related reporting and control mechanisms are perceived as the most effective EP components to shape managerial ethical behavior. Furthermore, based on empirical evidence, and to some extent contrary to prior theory, the article unveils three EP functions, namely the ‘compliance with group norms,’ the ‘ethics education through collective discussion,’ and the ‘counselling and resolving of ethical issues’ at workplace. In addition, the article shows that ethics trainings can help to boost the trust of managers toward EP components and might be conceptualized as a precursor for an effectively functioning EP. (shrink)

This article describes the theory and process of global business citizenship (GBC) and applies it in an analysis of characteristics of company codes of business conduct. GBC is distinguished from a commonly used term, “corporate citizenship,” which often denotes corporate community involvement and philanthropy. The GBC process requires (1) a set of fundamental values embedded in the corporate code of conduct and in corporate policies that reflect universal ethical standards; (2) implementation throughout the organization with thoughtful awareness of where the (...) code and policies fit well and where they might not fit with stakeholder expectations; (3) analysis and experimentation to deal with problem cases; and (4) systematic learning processes to communicate the results of implementation and experiments internally and externally. We then identify and illustrate the three attributes of a code of conduct that would reflect a GBC approach. The three attributes are orientation, implementation, and accountability. The various components of these attributes are specified and illustrated, using website examples from six global petroleum companies. (shrink)

Using Hofstede's culture theory (1980, 2001 Culture's Consequences: Comparing Values, Behaviours, Institutions, and Organizations Across Nation. Sage, NewYork), the current study incorporates the moral development (e.g. Thorne, 2000; Thorne and Magnan, 2000; Thorne et al., 2003) and multidimensional ethics scale (e.g. Cohen et al., 1993; Cohen et al., 1996b; Cohen et al., 2001; Flory et al., 1992) approaches to compare the ethical reasoning and decisions of Canadian and Mainland Chinese final year undergraduate accounting students. The results indicate that Canadian accounting (...) students' formulation of an intention to act on a particular ethical dilemma (deliberative reasoning) as measured by the moral development approach (Thorne, 2000) was higher than Mainland Chinese accounting students. The current study proposes that the five factors identified by the multidimensional ethics scale (MES), as being relevant to ethical decision making can be placed into the three levels of ethical reasoning identified by Kohlberg's (1958, The Development of Modes of Moral Thinking and Choice in the Years Ten to Sixteen. University of Chicago, Doctoral dissertation) theory of cognitive moral development. Canadian accounting students used post-conventional MES factors (moral equity, contractualism, and utilitarianism) more frequently and made more ethical audit decisions than Chinese accounting students. (shrink)

This study examines the varying roles of power, status, and national culture in unethical decision-making. Most research on unethical behavior in organizations is grounded in Western societies; empirical comparative studies of the antecedents of unethical behavior across nations are rare. The authors conduct this comparative study using scenario studies with four conditions in both China and Canada. The results demonstrate that power is positively related to unethical decision-making in both countries. Status has a positive effect on unethical decision-making and facilitates (...) the unethical decisions of Canadian participants who have high power but not Chinese participants who have high power. To explicate participants’ unethical decision-making rationales, the authors ask participants to justify their unethical decisions; the results reveal that Chinese participants are more likely to cite position differences, whereas Canadian participants are more likely to cite work effort and personal abilities. These findings expand theoretical research on the relationship between social hierarchy and unethical decision-making and provide practical insights on unethical behavior in organizations. (shrink)

Despite the fact that business people and business students often cast doubt on the relevance of universal moral principles in business, the rejection of relativism is a precondition for business ethics to get off the ground. This paper proposes an educational strategy to overcome the philosophical confusions about relativism in which business people and students are often trapped. First, the paper provides some conceptual distinctions and clarifications related to moral relativism, particularism, and virtue ethics. More particularly, it revisits arguments demonstrating (...) that virtues in business are not in contradiction with the relevance of universal principles, despite the fact that virtue ethics is often identified with particular relationships and contexts. It goes on to show how students and managers, but also researchers, often mix up radically different conceptions of moral relativism. It is also argued that this confusion is in part created by the cross-cultural management literature in which the methodological stance of the value-freedom of the social sciences is, in a perplexingly mistaken way, transformed into a rejection of all normative discussion and a plea for relativism. The remainder of the paper presents some tools that may be helpful in steering people toward less simplistic views about moral relativism and virtue ethics. It further argues that it is equally important to spell out that moral universalism can be understood in a humble way, without implying either arrogant ethnocentrism or omniscience, as part of an ongoing debate that progresses gradually. (shrink)

In recent years, the adverse implications of organizational identification (OID) have received significant attention in the field of organizational behavior research, particularly as it is considered a critical factor in unethical pro-organizational behavior (UPB). Nevertheless, the findings of previous studies are inconsistent. To explain these discrepancies, we performed a meta-analysis of 54 independent studies from January 2010 to April 2023, comprising a total of 14,836 samples, to investigate the impact of OID on UPB and the moderating effects of cultural context. (...) The results of our study demonstrated that individualism, power distance, masculinity, uncertainty avoidance, and indulgence play moderating roles in the OID – UPB relationship. This study makes noteworthy theoretical and practical contributions and lays the foundation for future research. (shrink)

Recent incidences of fraud and the growing globalization of business have focused attention on the effect of culture on ethical decision making within organizations. Because fraud can be extremely costly and is more likely to be committed by employees than persons external to the organization, employees willing to report un-ethical acts are an important supplemental control tool. The current study provides evidence of the effects of culture (Canadian and Chinese) and the type of reporting (whistle-blowing and peer reporting) on reporting (...) unethical acts within organizations. Chinese and Canadian participants were asked to respond to scenarios describing unethical acts committed within organizations. Results indicate that Chinese are more likely to report the unethical acts of peers than Canadians. Chinese also appear more likely to report the unethical acts of peers than supervisors. The results also suggest that Graham’s model of principled organizational dissent may not be applicable to Chinese and perhaps other non-Western cultures. (shrink)

Ethical failures are all around. Despite their pervasiveness, we know little how to manage and even survive the aftermath of such failures. In this paper, we develop the argument that as business ethics researchers we need to zoom in more closely on why ethical failures emerge, and how these insights can help us to be effective ethical leaders that can increase moral awareness and manage distrust. To succeed in this scientific enterprise, we advocate the use of a behavioral business ethics (...) approach that relies on insights from psychology. (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)

The economic globalization process has integrated different competitive markets and pushes firms in different countries to improve their managerial and operational efficiencies. Given the recent empirical evidence for the benefits to firms and stakeholders of good corporate governance (CG) practice, it is expected that good CG practice would be a common strategy for firms in different countries to meet the increasingly intense competition; however, this is not the case. This study examines the differences in CG practices in firms across different (...) countries using the concept of ethical sensitivity. Through the regression analysis of 271 firms in 12 countries and regions, it is found that Hofstede’s cultural dimensions can explain the differences in CG practices. Furthermore, the results demonstrate the influence of culture on ethical sensitivity, which eventually determines the CG practices in different regions. (shrink)

This study tests the effects of top management team member collectivistic values and TMT dissatisfaction with the financial situation on the environmental ethics of TMT members. We also examine the moderating effect of collectivistic values on the relationship between financial dissatisfaction and environmental ethics. Analyses of multi-level and source data show that financial dissatisfaction of the TMT negatively affects TMT members’ environmental ethics. However, TMT members’ individual collectivism can increase TMT members’ environmental ethics. Analyses also show that TMT members’ collectivism (...) moderates the relationship between financial dissatisfaction and environmental ethics across individual and team levels. (shrink)

There are three types of solutions to the problems deriving from companies' ethical, social and environmental responsibilities: those based on regulation by an authority or agency; those deigned to create market incentives; and those that rely on self-regulation by companies themselves. In the specific field we are concerned with here, regulation has significant costs and drawbacks that make it particularly desirable that companies should set up their own ethical, social and environmental management systems or programmes. The purpose of this article (...) is twofold. On the one hand, it explains how implementing voluntary ethical, social and environmental management systems or programmes may help to develop and sustain ethical behaviour in organizations, overcoming the conflict between compulsory regulation and occasional ethical practices. On the other hand, it shows that conditions must be met for an ethical management programme to be effective. (shrink)

While support for corporate political activity (CPA) is well echoed in the literature, little has been done to empirically examine its ethicality. Moreover, existing ethical CPA frameworks assume normative and rational leanings that are insufficient to provide a comprehensive account of CPA ethicality. Utilizing the Ghanaian context, adopting a multiple case study design involving 28 Directors from 22 firms, and employing a grounded theory approach, I explore how the ethicality of CPA is determined in weak institutional environments. The findings reveal (...) that business executives evaluate ethics at three levels (i.e. context, organizational and strategy) using three principles (i.e. utilitarianism, justice and institutions). Leveraging this knowledge, I present an eclectic framework that bridges the long-standing gap between normative ethical prescriptions and lived ethical realities. In doing so, I move away from abstraction to give “voice” to the actors involved in CPA. I also present a model that shows how the ethical judgement process is influenced by managerial intuition and interactive personal and organizational experiences. This article has important theoretical and practical implications for ethical business-government relations in developing countries. (shrink)

This paper analyzes the likelihood that recent conventions against corruption signed by the OECD and the OAS will be effective in Latin America. It begins by looking at the cultural context of corruption in Latin America and examines efforts by Latin American signatories to implement both agreements. It then evaluates the extent to which these efforts will prove successful. It concludes with suggestions for the development of culturally sensitive policies that will be effective in the fight against corruption in Latin (...) America. (shrink)

This paper aims to examine the impact of national cultural values on the relation between auditing and reporting standards and ethical behaviours of firms. Based on a regression analysis using data regarding 54 countries between the years 2007 and 2012, we found that the impact of the perceived strength of auditing and reporting standards on the perceived ethical behaviours of firms is accentuated when a society is characterized by low power distance and in-group collectivism, and high institutional collectivism, future orientation (...) and uncertainty avoidance. Empirically, the study addresses a gap in the literature by highlighting the influence of national culture on the effectiveness of legal settings and regulations on ethical behaviours. (shrink)

How do we make good moral decisions? There is a tendency to answer this question by developing methods and procedures of moral decision making. In this paper I will show some limits and pitfalls of this approach. Good moral decisions need to take into account factors which cannot be codified into procedures. I draw attention to how analyzing the type of context is a necessary preamble for a better handling of procedures.

Matten and Moon studied cross-national variations in corporate social responsibility (CSR) forms using an explicit-implicit framework. This article proposes a development and refinement of the explicit-implicit framework to account for, first, intranational variations of CSR, and, second, the role of individual managers in the actual process of developing CSR constructs within a given country. The specific national, institutional context, such as Norway, within which managers construct personal meaning for CSR, is ambiguous and possesses both different and potentially conflicting institutional logics (...) of the role and responsibility of business in a given society. The author suggests that explicit and implicit models of CSR differ in two key respects. One difference concerns whether corporate or collective responsibility mechanisms should be used to address social issues. The other difference concerns whether the scope of issues to which the corporate entity is expected to attend should be broad or narrow. The author proposes four institutional models of CSR that combine the explicit-implicit distinction with these two differences: Explicit Expansionist CSR, Implicit Contractive CSR, Implicit Expansionist CSR, and Explicit Contractive CSR. Focus group interviews with Norwegian managers empirically illuminate these models and the micro-level individual construction of variable meanings for CSR within a national, institutional context. (shrink)

The business environment has increasingly expanded outside single nations or regions of the world to encompass many differing countries. Along with this expansion come business opportunities and challenges when facing business practices and attitudes not so similar to our own. In studying how these national cultural differences affect ethical decision making, managers and employees alike gain an understanding and respect for those differing business practices. This study considers the national cultural dimension of collectivism versus individualism. Survey data were gathered from (...) 252 full-time employees working in the collective country of Taiwan and the individualist country of the United States of America. Results indicate that employees from the collective culture of Taiwan are more likely to indicate they would make an unethical decision that benefits the organization and less likely to openly question an unethical practice by their organization. Implications of these findings are discussed. (shrink)

Research regarding ethics programs represents an important segment of business ethics literature. In the last thirty years, scientific discourse on ethics programs has flourished. Numerous studies examined their functions, composition, application in organizational practice, and impact on employee ethical behavior and many other organizational variables. However, so far there has been no study that would comprehensively map this particular field. Given that, this paper aims to examine discourse on ethics programs in its complexity within business and management literature. Based on (...) a sophistically composed search protocol in the Scopus database, and after multiple rounds of checks, we extracted a final sample of 287 documents that matched the selection criteria. The sample was thoroughly analyzed by means of advanced bibliometric analytics tools. The results show the quantitative impact of ethics program literature via publication and citation metrics, a network of co-occurring themes and clusters of scientific inquiry, and the evolution of respective discourse over time. This detailed analysis results in a set of conclusions provided in the last part of the paper summarizing the quantitative performance and thematic scope of literature on ethics programs. (shrink)

Globalization has increased the need for managers (and future managers) to predict the potential for country corruption. This study examines the relationship between Hofstede''s cultural dimensions and how country corruption is perceived. Power distance, individualism and masculinity were found to explain a significant portion of the variance in perceived corruption. A significant portion of country''s risk, trade flow with U.S.A., foreign investment, and per capita income was explained by perceived corruption.

We examine the use of Confucian relational morality as an alternative reference point to that of modernist morality in judging workplace ethical conduct. A semi-structured interview based study involving 46 ethnic Chinese managers and 30 non-Chinese expatriate managers in Singapore, provided evidence of the use of traditional guanxi-linked morality as a moral resource by some of the former group in judging workplace ethical dilemmas. While such morality played only a minor role in moral reasoning, and was largely overshadowed by modernist (...) morality, the research nonetheless demonstrates that moral reasoning reflects wider cultural heritage, and is not merely a function of corporate culture and individual moral development. (shrink)

The article reports the findings of a study conducted among 387 consumers regarding their perceptions of the unethicality of business practices of firms and how these affect their response behavior, in terms of trust, satisfaction, and loyalty. The study confirmed that high levels of perceived corporate unethicality decrease consumer trust. This in turn reduces consumer satisfaction, which ultimately has negative effects on customer loyalty. It was also revealed that, although both consumer gender and urbanity have a moderating effect on the (...) link between perceived unethicality and trust, the age group and level of education of the consumer did not exhibit such an effect. With regard to consumer cultural characteristics, both high uncertainty avoidance and low individualism were found to increase the negative impact of business unethicality on trust, as opposed to power distance and masculinity that did not have any moderating effect on this relationship. Implications for managers are extracted from the study findings, as well as directions for future research. (shrink)

As more and more multi-national companies expand their operations globally, their responsibilities extend beyond not only the economic motive of profitability but also other social and environmental factors. The objective of this article is to examine the impact of national culture and geographic environment on firms’ corporate social performance (CSP). Empirical tests are based on a global CSP database of companies from 49 countries. Results show that the Hofstede’s cultural dimensions are significantly associated with CSP. In addition, European companies are (...) found to out-perform other regions and countries in CSP. (shrink)

To ensure ethical employee behavior, companies often utilize several forms of mostly one-way communication such as codes of conduct. The extent to which these efforts, in addition to informing about the company stance on ethics, are able to positively influence behavior is disputed. In contrast, research on business ethics communication and behavior indicates a relatively clear, positive link between open workplace dialogue about ethical issues and ethical conduct. In this article, I therefore address the question: What influences employee attitudes to (...) talking openly about ethical issues? Answers are proposed on the basis of focus group interviews with staff at the Denmark and Brazil affiliates of the global healthcare company Novo Nordisk. It was found that interest in discussing ethical issues was influenced by two main factors: employee conceptualizations of business ethics and the level of inter-collegial trust, credibility, and confidence. In this article, by examining these phenomena, I aim at providing insight that can both inform scholars in these fields as well as help managers in their attempts to promote open workplace dialogue about ethical issues. (shrink)

In this research, we review the current level of ethics education prior to college and the emphasis of the Association to Advance Collegiate Schools of Business (AACSB) on business ethics education in college using an ‘across the curriculum’ approach. We suggest that business schools and accounting practitioners can forge a more meaningful partnership than what currently exists through the traditional business advisory council prevalent at most schools of business. Ethical conduct is inherent in the practice of public accounting and a (...) hallmark of the accounting profession. Accounting practitioners can play a significant and positive role in helping business schools to reexamine their obligations to society and their students by actively engaging in the exchange of views by academics on the necessity for ethics education as well as those of professional accounting bodies.1. (shrink)

This study examines the effects of culture, gender, and function on orientation toward corporate social responsibility (CSR) among 416 employees of an international financial service organization. The main objective of the study is to investigate the variation of corporate social responsibility orientation (CSRO) across national cultures. The authors draw on a theory of cultural value orientations to identify three culturally distinct transnational clusters: West Europe, the English speaking countries, and South Asia. These clusters coincide with the business units (BUs) and (...) markets of the organization under investigation. By employing a framework of CSRO, the study reveals substantial differences across clusters within one single internationally operating organization. The English-speaking and the South Asia clusters were found to be most concerned with legal regulations and economic performance. In contrast, the West Europe continental cluster was found to be more concerned about business conforming to ethical norms than achieving high levels of economic performance or conforming to legal regulations. Furthermore, the study reveals gender differences in CSRO and differences among random employees and employees who are professionally active in the area of CSR. This article concludes by discussing implications of these findings for internationally operating organizations in the light of the recent global financial crisis. (shrink)

In today''s business environment, the knowledge-based society, globalisation, and information and communication technologies (ICT) have increased the role of "intangible" values of assets and resources for all industries. As a result there is an increased role for knowledge intermediaries; one of these, advertising, plays an important role in affecting consumer choice and knowledge. Ethical issues which arise for traditional purveyors of intangibility – cultural industries such as art, music, or film, spread to advertising. Building on our perspective of the measurement (...) of intangibles we propose a new categorisation of types of goods or services, and a framework for identifying some future ethical challenges in today''s global knowledge based society. (shrink)