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

The resolution of ethical dilemmas often requires individuals to search for reasonable justifications to support their choices. Occasionally, such justifications must be made explicit to stakeholders inside or outside the organization. Other times, the justification for a decision will be known only by the decision-maker. In either case, the organizational code of conduct that governs the individual can play a vital role in providing guidelines about appropriate and inappropriate justifications. The present paper discusses the connections between organizational codes and employee (...) justifications. (shrink)

This review summarizes and critiques the empirical ethical decision-making literature from 1996–2003. One hundred and seventy-four articles were published in top business journals during this period. Tables are included that summarize the findings by dependent variable – awareness, judgment, intent, and behavior. We compare this review with past reviews in order to draw conclusions regarding trends in the ethical decision-making literature and to surface directions for future research.

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)

Adherence to professional ethics in nursing is fundamental for high-quality ethical care. However, analysis of the use and impact of nurses’ codes of ethics as a part of professional ethics is limited. To fill this gap in knowledge, the aim of our review was to describe the use and impact of the Code of Ethics for Nurses with Interpretive Statements published by the American Nurses Association as an example of one of the earliest and most extensive codes of ethics for (...) nurses with their interpretative statements and constituting a strong basis for the International Council of Nurses’ Code of Ethics for Nurses. We based our review on previous literature using a scoping review method. We included both non-scientific and scientific publications to provide an analysis of codes of ethics which can be utilized in development and revision of other nurses’ codes of ethics. In the searches, we used CINAHL and PubMed databases limiting publications to texts with a connection to the Code of Ethics for Nurses published from January 2001 to November 2022 and written in English. Searches yielded 1739 references, from which 785 non-scientific and 71 scientific publications were included for analysis of the data. Although non-scientific and scientific publications addressed different number of categories, the results indicated that in the both groups the use and impact focused on professional ethics, nursing practice, and work environment and less on education, research, or social health issues. Nurses’ ethical standards were not addressed in non-scientific publications, and clinical issues and leadership were not in focus in scientific publications. To increase evidence-based knowledge of the impact of codes of ethics additional research is needed. Good scientific conduct was followed. (shrink)

Codes of ethics are directly aimed at behavioral control, but they also affect a company’s ethical culture, which in turn concerns compliance and ethical behavior. To positively influence a company’s ethical culture, employees must be familiar with its code of ethics, perceive that top management is committed to the code, and believe that their peers also comply with the code. The evidence on whether a code’s design affects a company’s ethical culture is limited. This study’s factorial survey experiment contributes to (...) this gap in two ways: first, it investigates whether a code’s design affects how easily the code can be learned and, therefore, contributes to code familiarity. Second, it examines how a code can convey expectations regarding top management’s commitment and peers’ behavior, both of which are part of ethical culture. The results indicate that a positive tone increases code familiarity, and a code signed by top managers sends a strong signal of their commitment to the code. Finally, various implications of the results for research and practice are discussed. (shrink)

The topic of fundraising ethics has received remarkably little scholarly attention. In this paper, we review the circumstances that precipitated a major review of fundraising regulation in the UK in 2015 and describe the ethical codes that now underpin the advice and guidance available to fundraisers to guide them in their work. We focus particularly on the Code of Fundraising Practice. We then explore the purpose and rationale of similar codes and the process through which such codes are typically constructed. (...) We highlight potential weaknesses with the current approach adopted in fundraising and conclude by offering a series of normative perspectives on fundraising ethics that could be used to review and revise the current code and potentially improve the quality of future fundraising decision making. (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)

Although scholars have invoked the escalation framework as a means of explaining the occurrence of numerous organizationally undesirable behaviors on the part of decision makers, to date no empirical research on the potential influences of escalating commitment on the likelihood of unethical behavior at the individual level of analysis has been reported in either the escalation or the ethical decision-making literatures. Thus, the main purpose of this project is to provide a theoretical foundation and empirical support for the contention that (...) escalating commitment situations can induce unethical behavior in decision makers. An experimental research design utilizing a computerized investment task was administered to 155 undergraduate business majors as a means of assessing the hypotheses presented here. Results from a hierarchical logistic regression analysis found strong support for the contention that exposure to an escalation situation increases the likelihood of unethical behavior on the part of decision makers. Further, results also supported previous ethical decision-making findings by confirming the effects of locus of control (LOC) on ethical behavior. Specifically, the data indicated that individuals with an external LOC orientation were significantly more likely to select the unethical option than were individuals with an internal LOC orientation. Interestingly, support was not found for the effects of Machiavellianism or gender on ethical decision-making. (shrink)

PurposeThe purpose of this paper is to examine whether, when teaching professional ethics, the educational interventions have any effect on improving students' moral decisions. One method often used to measure change is the well‐established defining issues test – an American test based on Kohlberg's stage theory.Design/methodology/approachUsing this test, two before‐and‐after studies were carried out on cross‐cultural cohorts of first year computing undergraduates which both received the same lectures, debates and moral‐decision‐making exercises.FindingsOne study showed a significant increase in moral judgment whilst (...) the other showed a decrease. Both studies indicated mean scores far below the American averages.Research limitations/implicationsAs both studies involved relatively small sample sizes, the results are indicative rather than conclusive. However, they bring to light issues associated with the test, in both American and non‐American research, indicating that lower than average mean scores could be due to cross‐cultural and situational variations.Practical implicationsThe paper questions the premise of stage theory as a method for measurement within a cross‐cultural context; and the usefulness of measuring one component of moral development in isolation.Originality/valueThe paper proposes that tests based on more discipline‐specific skills, rather than stage theory, would be of greater use in evaluating student levels of moral development. (shrink)

This article argues that attempting to overcome moral silence in organizations will require management to move beyond a compliance-oriented organizational culture toward a culture based on integrity. Such cultural change is part of good corporate governance that aims to steer an organization to enhance creativity and moral excellence, and thus organizational value. Governance mechanisms can be either formal or informal. Formal codes and other internal formal regulations that emphasize compliance are necessary, although informal mechanisms that are based on relationship-building are (...) more likely to achieve moral excellence. Such a shift can be viewed as a transformative strategy for overcoming the destructive side effects and business risks of the tendency within corporate cultures to remain mute when faced with issues that violate personal or corporate values. Genuine dialogues and appropriate ethical decisionmaking training can deepen the understanding and create a mindful awareness (of ethical values) and induce trust that embrace both complying with rules and regulations, as well as inciting creative "ethical innovation" with respect to human interaction in multinational companies. (shrink)

This paper examines the implementation, communication and benefits of corporate codes of ethics by the top companies operating in Australia, Canada and Sweden. It provides an international comparison across three continents. It is also based on a longitudinal approach where three national surveys were performed in 2001–2002 and replications of the same surveys were performed in 2005–2006. The empirical findings of this research show in all three countries that large organisations indicate a substantial interest in corporate codes of ethics. There (...) are, however, differences in the ways that the companies in each country implement and communicate their corporate codes of ethics and the benefits that they see being derived from them. The longitudinal comparison between 2001–2002 and 2005–2006 indicates changes in the implementation, communication and benefits of corporate codes of ethics in the three countries. (shrink)

Most large companies and many smaller ones have adopted ethics codes, but the evidence is mixed as to whether they have a positive impact on the behavior of employees. We suggest that one way that ethics codes could contribute to ethical behavior is by influencing the perceptions that employees have about the ethical values of organizations. We examine whether a group of sales professionals in organizations with ethics codes perceive that their organizational context is more supportive of ethical behavior than (...) sales professionals in companies without codes. After accounting for the effect of several covariates, our results indicated that sales professionals employed in organizations with codes of ethics perceived their work environments to have more positive ethical values than did other sales professionals. (shrink)

This study presents the results of an empirical analysis of the relationship between managerial thinking style and ethical decision-making. Data from 200 managers across multiple organizations and industries demonstrated that managers predominantly adopt a utilitarian perspective when forming ethical intent across a series of business ethics vignettes. Consistent with expectations, managers utilizing a balanced linear/nonlinear thinking style demonstrated a greater overall willingness to provide ethical decisions across ethics vignettes compared to managers with a predominantly linear thinking style. However, results comparing (...) the ethical decision-making of balanced thinking managers and nonlinear thinking managers were generally inconsistent across the ethics vignettes. Unexpectedly, managers utilizing a balanced linear/nonlinear thinking style were least likely to adopt an act utilitarian rationale for ethical decision-making across the vignettes, suggesting that balanced thinkers may be more likely to produce ethical decisions by considering a wider range of alternatives and ruling out those that are justified solely on the basis of their outcomes. Implications are discussed for future research and practice related to management education and development, and ethical decision-making theory. (shrink)

This study asked managers with different educational backgrounds and experience from a variety of industries of a variety of sizes representing both genders and various predominant managerial functions at different levels to “describe the skills they think are necessary to perform their jobs effectively”. In particular, they were asked to rank 178 behavioral skills presented under 22 different categories that described different aspects of management. Data were then examined first to determine the importance of ethics or integrity overall in the (...) group of managerial activities and then to explore how specific ethical activities of managers differ across various managerial and organizational characteristics. Findings indicate that ethics is still considered one of the least important skills necessary in managers’ daily work. However, once specific ethical activities are analyzed separately, significant differences are found across characteristics of managers, as well as those of the organizations at which they work. (shrink)

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

The purpose of this study is to determine whether there are cross-cultural differences between Chinese and Canadian business students with respect to their assessment of the ethicality of various business behaviors. Using a sample of 147 business students, the results indicate cultural crossvergence; the Chinese (72 students) and Canadians (75 students) exhibit different ethical attitudes toward questionable business practices at the individual level but not at the corporate level. A social desirability bias (a tendency to deny socially unacceptable actions and (...) to admit to socially desirable ones) is also found to be a cross-cultural phenomenon, with the Canadians demonstrating a greater bias than the Chinese. Finally, this bias causes respondents to increase their assessment of the un-ethicality of questionable business activities. (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)

Salespeople have long been considered unique employees. They tend to work apart from each other and experience little daily contact with supervisors and other organizational employees. Additionally, salespeople interact with customers in an increasingly complex and multifunctional environment. This provides numerous opportunities for unethical behavior which has been chronicled in the popular press as well as academic research. Much of the research in sales ethics has relied on conceptual foundations which focus on individual and organizational influencers on ethical decision making. (...) While significant, contributors to this research suggest that alternative theoretical perspectives and methods of investigation should be utilized and call for more research on the status of professional selling as a whole. We answer this call by exploring an alternative and complementary perspective based on the theory of occupational choice, social learning, and work groups to gain insight on how the sales profession evolves as its own subculture that extends beyond individual and organizational boundaries. First, we discuss the characteristics of the sales profession and empirically examine the relationship between typical individual and organizational factors and sales professionals’ perceptions of ethical behavior. Second, we offer a theoretical explanation that our findings may be due to how salespeople choose and are socialized into the subculture of the sales profession. Third, we examine this theoretical perspective via qualitative in-depth interviews with experienced sales professionals. Results and implications are discussed in terms of a sales profession code of ethics and future research directions. (shrink)

This study elucidates the link and effect of ethical reinforcement in the post‐financial crisis era by taking two congruent directions to demonstrate that ethical reinforcement can be accomplished by either a continuous ethical training or a meticulous code of business ethics—which members of the mutual fund industry claim they adhere to—as both have a positive effect on the funds’ performance, including sizeable gains to investors. Furthermore, evidence divulges that ethical reinforcement moderates the performance of ethical or socially responsible investments (SRI) (...) funds more than nonethical investments, suggesting that a perspective of ethical or SRI classification of a fund alone is not sufficient, but it is necessary to have the institutional ethical environment and/or managers’ continuous ethical training. This result supports the notion of financial market discipline and reveals some factors behind SRI or ethical funds returns, notably during the period following the recent financial crisis. (shrink)

Recent figures reported by KPMG confirm the growing prevalence of corporate codes of ethics globally. Svensson et al. (Bus Ethics 18:389–407, 2009 ) in surveys of the largest corporations in Australia, Canada, and Sweden found a similar trend. The increased prevalence of corporate codes of ethics has been accompanied by heightened research interest in various aspects of these documents, e.g., the contents and focus of the codes. However, there is a paucity of research examining the effectiveness of these documents and (...) the organizational infrastructure that accompany them. This study, based on a survey of Canada’s largest corporations, sought to empirically assess the determinants of the effectiveness of corporate codes of ethics by regressing managers’ perceptions of code effectiveness against various elements of ethics programs. It was found that, in a statistically significant model, eighteen independent variables explain 58.5% of the variance in the perceived effectiveness of corporate codes of ethics. (shrink)

The same person can make different moral judgments about the same activity in their professional role and in their personal life. For example, people may follow a different moral code when making purchases at work compared with in their private lives. This potential difference has largely remained unexamined. This study explores differences in felt moral responsibility in workplace and private purchasing settings, regarding the impacts of purchasing decisions on supply chain workers, and explores the influence of personal values and ethical (...) work climate. The case of a high-profile university in the United Kingdom is studied, which has made strong commitments to socially responsible public procurement. Based on a survey of 318 university staff who make purchases at work, stronger moral values related to harm/care are associated with higher felt responsibility in personal purchasing than in workplace purchasing, whereas less strong harm/care values are associated with higher felt responsibility in workplace purchasing than personal purchasing. In relation to ethical work climate, detailed awareness of organizational ethical procurement commitments is found to be associated with higher felt responsibility in workplace purchasing and is also found to increase the discrepancy between workplace and personal felt responsibility, increasing felt responsibility in the workplace but not in personal purchasing. These findings demonstrate the influence of individual and contextual factors on felt responsibility across different roles. Recommendations are made for further empirical research on felt responsibility across roles and additional internal communication on social responsibility for devolved public procurement contexts. (shrink)

Prisoner's dilemmas can lead rational people to interact in ways that lead to persistent inefficiencies. These dilemmas create a problem for institutional designers to solve: devise institutions that realign individual incentives to achieve collectively rational outcomes. I will argue that we do not always want to eliminate misalignments between individual incentives and efficient outcomes. Sometimes we want to preserve prisoner's dilemmas, even when we know that they systematically will lead to inefficiencies. No doubt, prisoner's dilemmas can create problems, but they (...) also create opportunities to practice the cooperative norms that make market institutions possible in the first place. An ethical market culture, I argue, benefits from the presence of prisoner's dilemmas. I first consider standard approaches for solving prisoner's dilemmas. I then argue for the value of prisoner's dilemmas. Finally, I show the significance of this argument for advocating codes of business ethics. (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)

A review of extent business ethics research uncovered well over 200 published articles that investigated the role of job functions within a business organization as an explanatory factor of ethical or unethical behavior. While an important body of work, ethical breaches are often found to cut across job functions and involve multiple disciplines embedded in a business organization. This research seeks to explore a crossfunctional explanation for ethical reasoning by using an instrument new to business ethics research, the Wason selection (...) task, but well-grounded and validated in cognitive research and evolutionary psychology, to assess an individual's ability to detect rule-based social contract violations. A sample of 276 full-time business practitioners, enrolled in part-time M.B.A. programs, from the accounting, finance, information technology, marketing, supply chain, and human resource management job functions were compared on their ability to detect rule violators across a series of production scenarios in the Wason selection task. Rates of cheater detection were calculated to determine if substantive differences existed across job functions. This was followed by a series of pairwise comparisons of percentages of cheater detection across the job functions using z-tests for assessing statistical significance. The data analysis showed differences in cheater detection, with most of the variance due to the marketing job function group. Insights from this study for scholars, educators, and practitioners in the business ethics field are discussed. (shrink)

This research aimed to assess the potential of alternatives to extrinsic pecuniary rewards for cultivating employees’ commitment in denominational higher education institutions in Indonesia. Two ethics-related variables, namely ethical climates and ethical ideologies, were chosen as possible predictors. A model delineating the nexus between ethical climates types, ethical ideologies, and various forms of organisational commitment was developed and tested. A two-step structural equation modelling procedure was used as the primary means in testing the hypothesised relationships. The research involved staff of (...) nine Catholic higher education institutions in Indonesia and comprised 642 respondents. Results of the research revealed a negative relationship between egoistic climates and affective commitment. Benevolence climate was shown to have potential for generating not only affective, but also continuance commitment. However, our results suggested those climates that cultivate continuance commitment needed further examination. Principle-based climates were found to positively influence staff’s affective commitment through their positive impacts on staff’s idealistic ethical ideology. As expected, the principle-cosmopolitan was shown to have a negative influence on relativism. A number of managerial and scholarly implications are discussed. (shrink)

Previous work suggests that gender attitudes are associated with different individual and organizational factors. At the same time, ethics research suggests that many of these same variables can influence ethical reasoning in companies. In this study, we sought to combine these streams of research to investigate whether individual skepticism of women's employment is related to ethical reasoning in a gender-based ethical situation. The results of the hierarchical regression analysis indicated that skepticism of women's employment was negatively related to the recognition (...) that the gender-based dilemma involved an ethical problem, and that skepticism was also negatively related to judgments that the situation was unethical. These findings imply that companies should advance policies that increase tolerance for women's employment, such as diversity training codes of conduct, and ethics training. (shrink)

Business ethics is one of the most significant demands made by institutional and individual investors, who usually require the participation of the board of directors in the planning and implementation of ethical behaviour in corporations. This is done by drawing up an ethics code and then monitoring its fulfilment. This study has a dual objective: first, to analyse the role played by the composition of the board of directors, and by that we mean its independence and the diversity of its (...) members, on the implementation and scope of an EC, and, second, to detect whether the corporate governance system moderates the level of involvement of the board in ethical issues. The findings obtained from a data panel sample made up of 760 listed companies from 12 countries for the years 2003–2009 show that the largest companies with large-sized and diverse boards implement the most developed ECs. Nevertheless, the extent of involvement of the independent directors is conditioned by the level of shareholder orientation characteristic of the system of CG in the corporation’s country of origin. (shrink)

Applied Business Ethics is a core module for business undergraduate students in an internationalised university business degree programme from the United Kingdom taught at a Private Higher Education Institution in Singapore. Students, who are working adults undertaking this part-time degree, are assessed purely on the application of theoretical knowledge through essays that show evidence of their ability to apply theory in workplace ethical dilemmas. This pilot study explores the utility of the module in terms of use and exchange value. It (...) was conducted in two phases as an empirical qualitative research. First, an email survey was sent to students, who had already graduated, to gather impressions of the module using open-ended questions. Based on the responses, semi-structured interviews of a purposive sample of four students were carried out to unearth insights on use and exchange value of the module through their stories. The study suggests that a key determinant of use value is workplace utility of the knowledge that has been gained. Over time, consistent derivation of use value translates to exchange value as long-term behaviour changes in the individual create positive workplace outcomes. The study also recognised the powerful influence of organisational culture in determining whether ethical thinking translates into ethical action, which also has a direct bearing on perceptions of use and exchange value. The findings of this study provide an insight to the understanding of the motivations of working adults attending the Applied Business Ethics module on a part-time basis. Having this understanding, it will be possible to further structure the module, in terms of positioning, delivery and assessment, to enable these students to become better managers when dealing with real-world workplace ethical issues. (shrink)

Though codes of ethics exist in many businesses, employees still view less than truthful behaviors to be a significant ethical problem. The current study examines the related and somewhat counterintuitive issue of less than truthful behaviors intended to further organizational priorities. Such behaviors risk violating one organizational priority (e. g., adhering to a code of ethics) to achieve another. Data indicated four unique though non-mutually exclusive motivations: (1) to avoid confrontation or conflict; (2) to ensure quality in the delivery of (...) a product or service; (3) to buy time for an organization's strategy to play out; and (4) for self-protection or self-enhancement. The evidence further suggests that enhanced managerial training, particularly in handling confrontation and conflicts, could reduce the contradiction between stated codes of ethics and actual behaviors. (shrink)

Over the last decade, the increased use of work teams within organizations has been one of the most influential and far-reaching trends to shape the business world. At the same time, corporations have continued to struggle with increased unethical employee behavior. Very little research has been conducted that specifically examines the developmental aspects of employee ethical decision-making in a team environment. This study examines the impact of a team leader’s perceived integrity on his or her subordinates’ behavior. The results, which (...) came from a survey of 245 MBA students functioning for 2 years in a work team environment, indicate an interaction between leader integrity and team member ethical intentions. (shrink)

This paper examines the implementation, communication and benefits of corporate codes of ethics by the top companies operating in Australia, Canada and Sweden. It provides an international comparison across three continents. It is also based on a longitudinal approach where three national surveys were performed in 2001–2002 and replications of the same surveys were performed in 2005–2006. The empirical findings of this research show in all three countries that large organisations indicate a substantial interest in corporate codes of ethics. There (...) are, however, differences in the ways that the companies in each country implement and communicate their corporate codes of ethics and the benefits that they see being derived from them. The longitudinal comparison between 2001–2002 and 2005–2006 indicates changes in the implementation, communication and benefits of corporate codes of ethics in the three countries. (shrink)

Multi-level marketing companies such as Amway, Herbalife, or Tupperware differ from most other companies. They market their products and services by means of self-employed distributors who typically work from home, sell products to end consumers, and recruit, motivate, and educate new distributors to do the same. Although the industry’s growth seems to illustrate the attractiveness of MLMs, the industry has been facing several legal and ethical problems. In this paper, we focus on these problems and argue that an extended MLM (...) model may help us to understand why such problems continue to occur, despite the countermeasures that have been implemented. By explicating how problems relate to a specific but often overlooked characteristic of MLMs, i.e., the so-called distributor network, we provide an extended understanding of MLMs’ mode of operation, the sources of their legal and ethical problems, and the reason that currently implemented and suggested countermeasures may not suffice. Moreover, based on our extended understanding of MLMs and their problems, we propose additional countermeasures. (shrink)

In this article, our aim is to examine the difference between the corporate social responsibility (CSR) practice of the multinational companies (MNCs) and of the domestic companies operating in Serbia, as well as the influence of internal self-regulations such as statements of corporate values and codes of conduct, and external self-regulations such as the implementation of the ISO 9001 and ISO 14001 standards on CSR practice. The CSR practice is observed in five CSR areas: employee relations, customer relations, environmental practice, (...) community and social involvement, and transparency in business activity. The findings indicate that the CSR practice of the MNCs is significantly different in comparison to domestic companies only in the area of employee relations. Furthermore, the overall results suggest that internal self-regulations have more influence on CSR practice than the implementation of generic management system standards. However, the existence of transparent corporate values, codes of conduct and implemented management systems according to ISO 9001 and ISO 14001 standards does not prove to be strong predictors of CSR performance. (shrink)

This paper documents the development and implementation of an ethically valid code of ethics in a newly formed national professional organization. It describes the experience and challenges faced by the National Association of Senior Move Managers (NASMM) and its leaders as they worked to establish ethics as an organizing framework early in its evolution. Designed by the investigators and supported by the NASMM Board, the process took place over a 2 year period and more than 130 people participated. It provides (...) a model for code development that is both practical and grounded in theory. Although the content of a code of ethics (the "product") provides guidance to organizational members in the conduct of everyday business, especially when they face ethically challenging situations, how the code is developed (the "process") influences its ethical validity. Few published cases document an organization's experience developing a code, and this is the first case, to our knowledge, that provides a first-hand longitudinal account of an effective code development process. (shrink)

The purpose of this study was to determine the degree to which the review of corporate ethics codes is associated with individuals’ perceptions of the importance of virtue ethics, or more specifically, employee incorruptibility. A convenience sample of individuals working for a university or one of several business organizations located in the Mountain West region of the United States was compiled with a self-report questionnaire. A usable sample of 143 persons representing both the public and private industries was secured for (...) use in this study. The results of an analysis of covariance showed that reviewing ethics codes during employee orientation was positively related to individuals’ beliefs that incorruptibility is an important individual virtue. The managerial implications of the findings are discussed along with suggestions for future research. (shrink)

When investigating the impact of organizational ethical context on individual ethical decision-making, past work has reported mixed results, with some studies indicating that a strong ethical work environment is associated with increased ethical reasoning, and other studies indicating that such an environment has little to no influence on the way ethical issues are addressed. Given these contradictory findings, we utilize multiple theoretical perspectives to assess the degree to which employees’ perceptions of ethical values, ethical culture, and corporate social responsibility moderate (...) the relationship between their ethical issue recognition and ethical judgments. Data obtained from employees of a financial services firm located primarily in the Midwestern United States supported the research hypothesis, with organizational ethical context weakening the recognition–judgment linkage. Results are compared to prior studies, and the managerial and research implications of the findings are discussed, along with the study’s limitations and suggestions for future inquiry. (shrink)

Using a sample of multinational firms in Germany, we develop and empirically examine a model to test the effects of ethical climate and its antecedents on purchasing social responsibility (PSR). Our results show different effects of benevolence dimensions of ethical climate on PSR: employee-focused climate has no effect, but community-focused climate is a significant driver of PSR. The results also show that top management ethical norms and code of conduct implementation impact PSR directly as well as indirectly through ethical climate.

Unethical behavior is under-examined in the workplace. To date, few studies have attempted to explore the antecedents of an employee’s ethical decisions, particularly with respect to unethical behavior and its effects. To capture an employee’s psychological perception of unethical behavior in the workplace, this paper integrates organizational factors into the Theory of Reasoned Action. By conducting an empirical study in a Chinese firm, we found that codes of conduct and performance pressure have a significant influence on an employee’s attitude toward (...) and social beliefs about unethical behavior. We also demonstrated that employees’ unethical behaviors affect the firm performance of an entrepreneurial venture. The insights gleaned from the findings on this Chinese company have a number of important implications for both research and practice. (shrink)