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 article outlines an approach for implementing business ethics. A company should both organize for ethical business policies and execute them. The organizational dimension refers to structural components including codes of ethics, conferences and training programs and an ethical audit. The corporate culture must support these structural elements with top management playing a central role in implementing ethics. The execution of ethical business policies includes implementation responsibilities and tasks. These responsibilities are leadership in ethics, delegation, communication and motivation of the (...) company's ethical position to employees. Execution tasks are delineated for the marketing function. Although many company examples are provided, a program in place at McDonnell Douglas is highlighted as a model of ethics implementation. (shrink)

Partly as a result of much recent evidence of business and government crime, a large proportion of major corporations have adopted codes of ethics; government service is also making more use of them. The electrical manufacturing anti-trust conspiracy and 1973–1976 investigation of foreign and domestic bribery were immediate prods. There are also government codes of which the ASPA code is most widely distributed. Corporate codes discuss relations to employees, interemployee relationships, whistle blowing, effect on environment, commercial bribery, insider information, other (...) conflicts of interest, anti-trust, accounting, consumer relations, and political activities. A discussion of use of codes shows partly favorable results. A number of corporation decisions have not yet become a subject of code provisions. Codes will be more useful if the reasons behind each order are stated and team work is encouraged. (shrink)

The paper explores the promise of ethical codes as a means to control unethical behavior in business. After a review of arguments for ethical codes from outside the business system, the paper outlines the arguments for codes from inside the business system at the level of the industry, firm and individual executive.The paper then discusses the problems of code design — the dilemma between specific practices and general precepts — and offers a model for a thoroughgoing code. This is followed (...) by a discussion of the problems of promulgation and code enforcement. (shrink)

Very little has been done to find out what corporations have done to build ethical values into their organizations. In this report on a survey of 1984 Fortune 1000 industrial and service companies the Center for Business Ethics reveals some facts regarding codes of ethics, ethics committees, social audits, ethics training programs, boards of directors, and other areas where corporations might institutionalize ethics. Based on the survey, the Center for Business Ethics is convinced that corporations are beginning to take steps (...) to institutionalize ethics, while recognizing that in most cases more specific mechanisms and strategies need to be implemented to make their ethics efforts truly effective. (shrink)

This text presents and comments on 80 exemplary ethics statements from leading corporations and organizations worldwide. It offers these seven principles to follow in developing such statements: write it; tailor it; communicate it; promote it; revise it; live it; and enforce/reinforce it.

Abstract:Discussions of the ethics of advertising have been based on a general distinction between informative and persuasive advertising without looking at specific techniques of persuasion. Self-identity image ads persuade by presenting an image of an idealized person-type such as a “beautiful” woman (Chanel) or a sexy teen (Calvin Klein). The product becomes a symbol of the ideal, and target consumers are invited to use the product to project the self-image to themselves and others. This paper argues that image ads are (...) not false or misleading, and that whether or not they advocate false values is a matter for subjective reflection. Image ads can undermine a consumer’s self-esteem by collectively omitting images authentic for that sort of person (such as large women), and by combining impossible images with implied gaze. Image ads generally do not undermine autonomy of choice, internal autonomy, or social autonomy. It is concluded that image advertising is a basically ethical technique, but several recommendations are given on how use of image advertising can avoid specific harms. (shrink)

The adoption of codes of ethics or values statements is intended to guide everyday decisions, as well as to influence the perceptions of external stakeholders. Questions have emerged in the literature about whether the effort to substantively direct decision-making in an organization is marginalized by the more obvious symbolic role of values statements. Here the perceived impact of values statements on decision-making in organizations is explored, and a number of positive effects observed. Respondents report that values statements create positive externalities (...) providing guidelines for decision-making, increasing accountability, and clarifying expectations. Yet, both cynicism and perceived management hypocrisy emerged in the survey, which together had strong negative effects on the perceived decision-making impact of values statements. Finally, positive external effects are almost never mentioned by respondents who give their firms high marks on the quality of values statement development, training, and implementation. Yet, such external effects get significantly greater representation in the comments of respondents who report less substance in their firms’ values statement development and implementation processes. In all, the results suggest that the substantive and symbolic roles of values statements are not independent and that external symbolism without internal legitimacy may in the long-run be problematic. (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)

Attention is being focused on the tone at the top in businesses in the United States with the publication of the Report of the Commission on Fraudulent Financial Reporting. There has been growing discontent with the quality of ethcial behavior in the business society and at the present moment many American companies are developing — or revising — codes of ethics and establishing procedures for their implementation. Yet, there is some question about the success of such efforts.This article describes the (...) efforts of an early American entrepreneur to develop a code of ethics and to implement it throughout his organization during the early years of relatively rapid growth. The code was introduced in 1913 and was supported through a variety of means in which the leader himself participated. That early code continues to be reissued as the company updates its overall code of ethics. The persistent and seemingly genuinc commitment to ethical behavior throughout the company was evident in all aspects of the leader's behavior. (shrink)

This is an essay about the philosophical and practical problems associated with the concept of punishment for corporations that have grievously broken the law. It is specifically an essay about the special incentives that the U.S. Government has put in place to encourage American corporations to create comprehensive ethics programs and observe them faithfully. First, I will look at the sorts of obstacles to effective punishment of recalcitrant corporations that eventually prompted extraordinary measures by the U.S. Government. Then I will (...) present a detailed description of the Federal Sentencing Guidelines which took effect on November 1, 1991, describe what they entail, examine what purposes for which they were intended and question how likely they will be to accomplish their objectives. Finally, we will raise the question whether such policies will help further corporate social responsibility and ethical conduct in the workplace. (shrink)