Codes of conduct are a conspicuous feature of modern business organization, but doubts have been raised regarding their efficacy in ensuring high standards of behavior. Although some of the issues involved have been discussed at some length in the business ethics literature, the amount of systematic empirical evidence on the impact of codes is very limited. This paper seeks to make a contribution to that body of knowledge by studying the policies and procedures of a sample of banks which have (...) signed a statement on banking and the environment promulgated by the United Nations Development Programme. Although some differences are found when compared with a sample of banks which did not sign the Statement, they are not extensive. The implications of the findings, for codes of conduct and for future empirical studies, are then discussed. (shrink)

Critics of SRI have said little about the integrity of corporate representations resulting in screening inclusion or exclusion. This is surprising given social and environmental accounting research that finds corporate posturing and deception in the absence of external verification, and a parallel body of literature describing corporate "greenwashing" and other forms of corporate disinformation. In this paper I argue that the problems and challenges of ensuring fair and accurate corporate social reporting mirror those accompanying corporate compliance with law. Similarities and (...) points of convergence between social reporting and corporate compliance are discussed, along with proposals for reform. (shrink)

As a number of high profile companies have found to their cost, corporate reputations can be significantly affected by firms' management of sustainability issue, including those that are outside their direct control, such as the environmental and social impacts of their supply networks. This paper begins by examining the relationship between corporate social responsibility, reputation, and supply network conditions. It then looks at the effectiveness of one tool for managing supply network sustainability issues, ethical sourcing codes of conduct, by examining (...) how the characteristics of three supply networks branded clothes, DIY wood products and branded confectionary affects the implementation ethical sourcing codes of conduct. It ends by setting out conclusions on why implementation of such codes has been so much more successful in some sectors than others and recommendations on effective approaches to managing sustainability issues in supply networks. (shrink)

Increasing attention to the issue of child labor has been reflected in codes of conduct that emerged in the past decade in particular. This paper examines the way in which multinationals, business associations, governmental and non-governmental organizations deal with child labor in their codes. With a standardized framework, it analyzes 55 codes drawn up by these different actors to influence firms' external, societal behavior. The exploratory study helps to identify the main issues related to child labor and the use of (...) voluntary instruments such as codes of conduct. Apart from a specific indication of the topics covered by the code, especially minimum-age requirements, this also includes monitoring systems and monitoring parties. Most important to company codes are the sanctions imposed on business partners in case of non-compliance. Severe measures may be counterproductive as they do not change the underlying causes of child labor and can worsen the situation of the child workers by driving them to more hazardous work in the informal sector. This underlines the importance of a broad rather than a restrictive approach to child labor in codes of conduct. The paper discusses the implications of this study, offering suggestions for future research. (shrink)

Codes of ethics are being increasingly adopted in organizations worldwide, yet their effects on employee perceptions and behavior have not been thoroughly addressed. This study used a sample of 613 management accountants drawn from the United States to study the relationship between corporate and professional codes of ethics and employee attitudes and behaviors. The presence of corporate codes of ethics was associated with less perceived wrongdoing in organizations, but not with an increased propensity to report observed unethical behavior. Further, organizations (...) that adopted formal codes of ethics exhibited value orientations that went beyond financial performance to include responsibility to the commonweal. In contrast to corporate codes of ethics, professional codes of ethical conduct had no influence on perceived wrongdoing in organization nor these codes affect the propensity to report observed unethical activities. (shrink)

Are corporate codes of ethics necessarily ethical? To challenge this notion, an initial set of universal moral standards is proposed by which all corporate codes of ethics can be ethically evaluated. The set of universal moral standards includes: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. By applying the six moral standards to four different stages of code development (i.e., content, creation, implementation, administration), a code of ethics for corporate codes of ethics is constructed by (...) which companies can be ethically audited for compliance. The newly proposed code of ethics for corporate codes of ethics was then applied to four large Canadian companies representing a variety of industries: telecommunications; banking, manufacturing, and high technology. The ethical audit of the four companies' ethics programs based on the proposed code indicates that all four companies have room to improve the ethical nature of their codes of ethics (i.e., content, creation, implementation, administration). (shrink)

This paper reports on a study of large U.S. based corporations concerning the status of formal ethics statements. Almost all responding firms (91%) have promulgated a formal code of ethics while one-half have published values statements and about one-third have a corporate credo. Analysis of these statements concentrated on to whom they are communicated; whether codes of ethics contain information pertinent to the industry, include sanctions for violations and provide specific guidance regarding gifts. Conclusions and implications for managers and researchers (...) are drawn. (shrink)

The question of what firms do internally in the fight against bribery is probably as important to the successful outcome of that fight as formal anti-bribery law and enforcement. This paper looks at corporate approaches to anti-bribery commitment and compliance management using an inventory of 246 codes of conduct. It suggests that, while bribery is often mentioned in the codes of conduct, there is considerable diversity in the language and concepts adopted in anti-bribery commitments. This diversity is a feature of (...) the language used in describing parties to bribery and in defining which activities are prohibited (e.g. promising bribes versus actually giving them, gifts and entertainment, and solicitation. This diversity of language and concepts suggests that it might be useful to extend and deepen efforts in business associations and international organisations to build consensus on the meaning of bribery and corruption. In contrast, the bribery codes show evidence of an emerging consensus on managerial approaches to combating bribery. This involves the deployment of a distinctive mix of management tools, including financial record keeping, statements by executive officers, internal monitoring, whistle-blowing facilities, creation of compliance offices and threats of disciplinary action. (shrink)

A review of the literature on Corporate Codes of Ethics suggests that whilst there exists an informative body of literature concerning the prevalence of such codes, their design, implementation and promulgation, it is also evident that there is a relative lack of consideration of their impact upon members' everyday organizational behaviour. By drawing upon organizational sociology and psychology this paper constructs a contextualist and interpretive model which seeks to enable an analysis and evaluation of their effects upon individual, group and (...) organizational behaviour. (shrink)

This paper reports on a study of the largest Spanish corporations concerning the status of corporate ethics policies. The research project, the first of its kind in Spain, has two parts. First, the types of formal documents the companies use are analysed, including those dealing with ethical values or norms. Three groups of companies are distinguished: the first group has no formal documents dealing with ethical values, and the reasons given for not having any ethical statement are discussed. A second (...) group has one document mentioning ethical values (generally the vision and/or mission statement), and a third group has in place two or more documents (one generic and the other more detailed, such as a code of conduct). The findings show that the latter group is more proactive than the former in implementing measures for promoting business ethics throughout the organisation. In the second part of the research, the study analyses the differences between companies whose headquarters are in Spain, Europe and USA regarding the arguments, the focus and the practices used to formalise business ethics. (shrink)

Making Social Science Matter presents an exciting new approach to the social and behavioral sciences including theoretical argument, methodological guidelines, and examples of practical application. Why has social science failed in attempts to emulate natural science and produce normal theory? Bent Flyvbjerg argues that the strength of social sciences lies in its rich, reflexive analysis of values and power, essential to the social and economic development of any society. Richly informed, powerfully argued, and clearly written, this book opens up a (...) new future for the social sciences. Its empowering message will make it required reading for students and academics across the social and behavioral sciences. (shrink)

According to the reports in the past decade, some Asian subcontractors, mainly Taiwan, Hong Kong and Korea transnational corporations, tend to be labor abusive in their overseas investment destinations like China or Southeast Asia. Taking Vietnam as an example, this paper raises questions as to why Taiwanese transnational companies can control workplace unions in a trade-union-supportive regime. Given the government s constraint of political rights, and the individualized workplace unions, the function of trade unions in Vietnam is destined to be (...) limited. The trade unions turn out be an arm of management, rather than representing workers interests in these transnational companies. This article also explores the influence of the newly developed codes of conducts from Western buyers. In the survey of three companies which are required to follow the codes of conduct by buyers, trade unions had no more freedom than those in companies without codes of conduct. The paper discusses the implications of this research, offering strategies for labor rights improvements. (shrink)

More and more organisations formulate a code of conduct in order to stimulate responsible behaviour among their members. Much time and energy is usually spent fixing the content of the code but many organisations get stuck in the challenge of implementing and maintaining the code. The code then turns into nothing else than the notorious "paper in the drawer", without achieving its aims. The challenge of implementation is to utilize the dynamics which have emerged from the formulation of the code. (...) This will support a continuous process of reflection on the central values and standards contained in the code. This paper presents an assessment method, based on the EFQM model, which intends to support this implementation process. (shrink)

In the current era, governments are playing smaller roles in regulating workers’ rights internationally, and transnational corporations (TNCs), non-governmental organisations (NGOs) involved in the struggle for workers’ rights, and labour/trade unions have started to fill this governance gap. This paper focuses on the least researched of the relationships among these three actors, the union–NGO relationship, by analysing the ways in which it affects definitions of TNC responsibility for workers’ rights at their suppliers’ factories. Based on a qualitative study of the (...) union–NGO relationship in the Swedish garment industry between 1996 and 2005, we propose that there are six main configurations of union–NGO relationships. By linking these configurations to their effects on TNC responsibility, we propose that co-ordination relationships between unions and NGOs, particularly high-commitment co-ordination relationships, are likely to result in a broadening of the definition of TNC responsibility, while conflictual relationships, both high and low commitment, result in a narrowing of the definition of TNC responsibility. The study indicates that co-operation is generally more beneficial for both unions and NGOs than is any form of conflictual relationship, in terms of broadening the definition of TNC responsibility. (shrink)

While cross-sectoral partnerships are frequently presented as a way to achieve sustainable development, some corporations that first tried using the strategy are now changing direction. Growing tired of what are, in their eyes, inefficient and unproductive cross-sectoral partnerships, firms are starting to form post-cross-sectoral partnerships (‚post-partnerships’) open exclusively to corporations. This paper examines one such post-partnership project, the Business Social Compliance Initiative (BSCI), to analyse the possibility of post-partnerships establishing stable definitions of ‚corporate responsibility’. We do this by creating a (...) theoretical framework based on actor-network theory (ANT) and institutional theory. Using this framework, we show that post-partnerships suffer from the paradox of striving to marginalise those stakeholders whose support they need␣for establishing stable definitions of ‚corporate responsibility’. We conclude by discussing whether or not post-partnership strategies, despite this paradox, can be expected to establish stable definitions of ‚corporate responsibility’. (shrink)

Business codes are an oft-cited management instrument. But how common are codes among multinationals? And what is their content? In an unprecedented study, the codes of the largest corporations in the world have been collected and thoroughly analyzed. This paper presents the results of that study. Of the two hundred largest companies in the world, 52.5% have a code. More than half of these codes describe company responsibilities regarding quality of products and services (67%), adherence to local laws and regulations (...) (57%) and the protection of the natural environment (56%). Many codes make reference to principles governing stakeholder relations (e.g. transparency (55%), honesty (50%) and fairness (45%)), corporate core values (e.g. teamwork (43%)), appropriate conduct among employees (e.g. discrimination (44%) and intimidation (43%)) and treatment of company property by employees (e.g. conflict of interests (52%), corruption (46%) and fraud (45%)). Monitoring compliance with the code is addressed in 52% of the codes. Based on this content study, three types of codes are distinguished: the stakeholder statute (72%), the values statement (49%) and the code of conduct (46%). The results of this inquiry present a benchmark for the evaluation and development of both individual and international business codes. (shrink)

Disputes regarding the ethics of work by children have intensified in recent years, with little resolution. The impasses stem from failure to recognize the diverse forms of child work and a lack of empirical research regarding its causes and consequences. We report on data gathered in Brazil’s export-oriented shoe industry, which is notorious for the employment of children. Central findings are: 1) the causes of child work have less to do with backwardness and more to do with how shoe workers (...) are integrated into the global order; 2) local employers and children regard this work as benign, but the U.S. government sees it as hazardous to children and unfair to U.S. producers; 3) efforts to remove children from the shoe industry have been frustrated by local resistance and raise ethical questions; and 4) in certain circumstances, efforts to eliminate hazards from the workplace are morally superior to campaigns to remove childworkers from employment. (shrink)

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

This paper examines the difficulties of dealing with child labour in the supply chain. It begins by identifying a number of the factors which make global supply chains so difficult to manage. It goes on to outline a framework of different approaches that can be taken to managing the supply chain with relation to child labour, moving from national and international regulation, through to the role of NGOs and the companies themselves. Focusing on an ‘engagement’ strategy for dealing with child (...) labour, the paper traces a case study of Adidas‐Salomon and its attempts to implement their ‘standards of engagement’ in this area with relation to one of their supplier factories in Vietnam. The research draws on the direct involvement of one of the authors who visited the site and was able to interview staff and observe the operation in practice. Her findings are supported by wider work on the implementation of corporate approaches to human rights at a range of companies interviewed by another of the authors. The paper aims to highlight the issues needing to be addressed for companies considering the ‘involvement’ approach to child labour. It also aims to develop theory on our understanding of different approaches to corporate rights. (shrink)

Though written corporate codes of ethics have been touted as a panacea for the embarrassments and uncertainties of the past two decades, the absence of clear evaluation procedures severely compromises their usefulness. An ethnographic study comparing development processes and compliance outcomes in large health care facilities and energy companies shows that neither of the two industries has encountered much success with a codes of ethics program. Companies that distribute copies of their code of ethics seldom ensure the process is completed (...) or that employees understand the purpose of the document, and staff responsible for the code give it a low priority relative to their overall responsibilities. Contrary to expectations, health care facilities are no more likely to develop or implement codes of ethics effectively than are energy companies. More extensive research is needed in order to generate the data necessary for the development of realistic standards for the evaluation of codes of ethics. (shrink)

During the last years competition in the textile sector has increased, putting financial returns under considerable pressure. As a result, production has shifted to low wage countries in the third world. This has raised the relevance of ethical procedures. This paper analyses how C&A, as one of the largest Western apparel companies, organises its sourcing ethics, notwithstanding the financial pressure in the market. Based on interviews with Asian suppliers of C&A during the second half of 2000, we review the opinions (...) of external stakeholders about the sourcing ethics of C&A. Finally, we evaluate C&A’s sourcing ethics from a theoretical perspective. (shrink)

Studies of the prevalence and contents of codes of conduct in the private sector show that their use to define an ethical environment or culture, and their effective implementation, must be as part of a learning process that requires inculcation, reinforcement and measurement. Consequently, the public sector must realise it cannot look solely to formal codes to revive and sustain public sector values. Alan Doig is Professor of Public Services Management, and John Wilson is Principal Lecturer and Head of the (...) Centre for Public Services Management, at Liverpool Business School, Liverpool John Moores University. (shrink)

Studies of the prevalence and contents of codes of conduct in the private sector show that their use to define an ethical environment or culture, and their effective implementation, must be as part of a learning process that requires inculcation, reinforcement and measurement. Consequently, the public sector must realise it cannot look solely to formal codes to revive and sustain public sector values. Alan Doig is Professor of Public Services Management, and John Wilson is Principal Lecturer and Head of the (...) Centre for Public Services Management, at Liverpool Business School, Liverpool John Moores University. (shrink)

This paper examines the difficulties of dealing with child labour in the supply chain. It begins by identifying a number of the factors which make global supply chains so difficult to manage. It goes on to outline a framework of different approaches that can be taken to managing the supply chain with relation to child labour, moving from national and international regulation, through to the role of NGOs and the companies themselves. Focusing on an ‘engagement’ strategy for dealing with child (...) labour, the paper traces a case study of Adidas‐Salomon and its attempts to implement their ‘standards of engagement’ in this area with relation to one of their supplier factories in Vietnam. The research draws on the direct involvement of one of the authors who visited the site and was able to interview staff and observe the operation in practice. Her findings are supported by wider work on the implementation of corporate approaches to human rights at a range of companies interviewed by another of the authors. The paper aims to highlight the issues needing to be addressed for companies considering the ‘involvement’ approach to child labour. It also aims to develop theory on our understanding of different approaches to corporate rights. (shrink)

The institutional guarantees of modern labour law, that provide the keystone of progressive liberalism, are often only reactionary to the entrenched concepts of socialist law. Adoption of institutions of “workers rights”, and employment protection based upon contract, inevitably nullify the ideological promise of the inalienable “right to work”. China, among the last bastions of theoretical Marxist socialism, and among the first socialist countries ready to accept that it has been in desperate need of reforming uneconomical state enterprises, seems willing to (...) sacrifice ideological purity for economic development. Yet, if economic turnaround requires enterprise rationalisation in a market economy, it is understandable that Chinese labour requires the same kinds of protection against unbridled capitalism as progressive labour movements elsewhere. Doubtless, for those who have enjoyed no such institutional guarantees in the past, official commitment to improvement of labour conditions is better than no acknowledgment of need for reform of social policy whatever. Yet, the real question for students of social change is “Are these legislated reforms effective policy guides for local administration and the courts?”“|Or are they merely regulations for licensing compliance – primarily for foreign invested enterprises?”. In brief, “... to what extent are the new ‘workers’ rights’ realistically attainable sources of judicial remedies for individual workers?”. (shrink)

The institutional guarantees of modern labour law, that provide the keystone of progressive liberalism, are often only reactionary to the entrenched concepts of socialist law. Adoption of institutions of “workers rights”, and employment protection based upon contract, inevitably nullify the ideological promise of the inalienable “right to work”. China, among the last bastions of theoretical Marxist socialism, and among the first socialist countries ready to accept that it has been in desperate need of reforming uneconomical state enterprises, seems willing to (...) sacrifice ideological purity for economic development. Yet, if economic turnaround requires enterprise rationalisation in a market economy, it is understandable that Chinese labour requires the same kinds of protection against unbridled capitalism as progressive labour movements elsewhere. Doubtless, for those who have enjoyed no such institutional guarantees in the past, official commitment to improvement of labour conditions is better than no acknowledgment of need for reform of social policy whatever. Yet, the real question for students of social change is “Are these legislated reforms effective policy guides for local administration and the courts?”“|Or are they merely regulations for licensing compliance – primarily for foreign invested enterprises?”. In brief, “... to what extent are the new ‘workers’ rights’ realistically attainable sources of judicial remedies for individual workers?”. (shrink)

Information and communications technology (ICT) is now used more by non-IT professional end-users than by IT professionals. A survey of 125 London-based organisations found that the majority had instituted codes of conduct designed to govern the use of ICT by their employees. However, the primary purpose of adopting such codes was to ensure the security and efficient operation of the organisation's information systems rather than for wider ethical considerations. Hence, few of the codes of conduct addressed issues relating to the (...) collection, storage and dissemination of data about individuals (personal data); this was especially the case with codes emanating from IT departments rather than senior management. In general, codes of conduct were found to be ineffective in influencing end-user behaviour in the organisations surveyed. Codes of conduct are a means by which organisations seek to exercise power, control and ownership, but their effectiveness is compromised by the nature of ICT itself as well as the attitudes of employees. The failure of well-publicised ethical policies to influence use of ICT by business studies students – the managers of tomorrow – suggests that these tensions are likely to remain unresolved. (shrink)