This study examines the similarities and differences in pre- and post-Sarbanes-Oxley corporate ethics codes and codes of conduct using the framework of structuration theory. Following the passage of the Sarbanes-Oxley (SOX) legislation in 2002 in the United States, publicly traded companies there undertook development and revision of their codes of ethics in response to new regulatory requirements as well as incentives under the U.S. Corporate Sentencing Guidelines, which were also revised as part of the SOX mandates. Questions that remain are (...) whether these new or revised codes are effective means of communicating changed ethical foci and attitudes in organizations. Centering resonance analysis (CRA) is used to identify differences and similarities across time and industries by analyzing word networks of 46 pre- and post-SOX corporate codes of ethics. Analyses focus on content and structure of generated word networks as well as resulting factors that emerged from the texts. Results are interpreted from the structuration perspective that content and structure of codes are constrained and enabled by system structures while they function to produce and reproduce those structures. Results indicate that corporate codes of ethics are formal discourses of ethics, laws, and control. Code structure has changed across time, with an increased emphasis on compliance in post-SOX codes. Implications for research and practice are discussed in light of findings. (shrink)

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)

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)

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)

Abstract:Previous research has identified multiple approaches to the design and implementation of corporate ethics programs (Paine, 1994; Weaver, Treviño, and Cochran, in press b; Treviño, Weaver, Gibson, and Toffler, in press). This field survey in a large financial services company investigated the relationships of the values and compliance orientations in an ethics program to a diverse set of outcomes. Employees’ perceptions that the company ethics program is oriented toward affirming ethical values were associated with seven outcomes. Perceptions of a compliance (...) orientation were associated with four of these outcomes. The interaction of values and compliance orientations was associated with employees’ willingness to report misconduct. In general, a values orientation makes a greater unique contribution to the measured outcomes when compared to a compliance orientation. (shrink)

In 1986, President Reagan created the Packard Commission, a blue-ribbon commission to investigate defense contracting procurement fraud. The Packard Commission''s major recommendation was for defense contractors to adopt ethics programs. Out of this recommendation emerged the Defense Industry Initiative (DII). This paper examines this Initiative and focuses on the DII''s six principles. In particular, this paper explores the implications the DII has had with respect to (1) pursuing intra-industry cooperation and setting industry-wide standards; (2) monitoring compliance; (3) the paradox inherent (...) to the DII as a facilitator for industry self-regulation; and, (4) why companies have enthusiastically adopted the directive. This paper concludes that the DII falls short of being an effective method of self-regulation because: (1) it does not achieve complete industry-wide cooperation; (2) it does not establish uniform standards of ethical conduct within the industry; (3) it does not hold the signatory companies accountable for creating a strong system of ethical conduct; and, (4) it does not relieve the organizational and market pressures to be unethical. (shrink)

Despite the recent rash of corporate scandals and the resulting rush to address the problem by adding more laws and regulations,seemingly little attention has been paid to how the nature (not the substance) of rules may or may not affect ethical decision-making.Drawing on work in law, ethics, management, psychology, and other social sciences, this article explores how several characteristics of rules may interfere with the process of reaching and implementing ethical decisions. Such a relationship would have practical implications for regulatory (...) policy and managers of organizations, and the article concludes by suggesting how regulations and corporate ethics programs should be able to improve the ethical culture of business and enhance the ethical decision-making skills of employees. (shrink)

We create a database of company codes of ethics from firms listed on the Standard & Poor's 500 Index and, separately, a sample of small firms. The SEC believes that "ethics codes do, and should, vary from company to company." Using textual analysis techniques, we measure the extent of commonality across the documents. We find substantial levels of common sentences used by the firms, including a few cases where the codes of ethics are essentially identical. We consider these results in (...) the context of legal statements versus value statements. While legal writing often mandates duplication, we argue that value-based statements should be held to a higher standard of originality. Our evidence is consistent with isomorphic pressures on smaller firms to conform. (shrink)

Although corruption is ubiquitous, attitudes toward it differ among countries. Until the 1997 OECD Convention, the U.S. had been one of the only two countries with an explicit extraterritorial anti-bribery law, the Foreign Corrupt Practices Act (FCPA) of 1977. The FCPA employs a two-pronged approach to control the supply side of corruption: (1) anti-bribery provisions; and (2) accounting (books and record and internal controls) provisions. I offer evidence, albeit indirect, to show that the FCPA had limited success. The OECD Convention (...) adopts the same two-pronged approach, but, since it is a multilateral treaty, is likely to be more successful provided that enforcement is vigorous enough. The signatory nations effectively form a cartel to reduce the cost of doing business. As with any cartel, however, each multinational corporation has an incentive to deviate. Thus, the mutual enforcement of the agreement is crucial for its success. However, the two-pronged approach is not sufficient, since internal control does not adequately monitor decisions made at the top level. I argue that the two lessons drawn from the U.S. experience are: (1) law enforcement must be credible; and (2) internal controls alone are not sufficient. Stronger and more effective corporate governance within an appropriate regulatory framework is needed to ensure that multinational corporations conduct their business in an ethical manner. (shrink)

This research is an extension of Walker Information’s (Business Ethics: Ethical Decision Making and Cases, pp. 235–255, 1999) study on employees’ job attitudes that was conducted exclusively in the United States. Walker Information found that the reputation of the organization, fairness at work, care, and concern for employees, trust in employees, and resources available at work were important factors in an employee’s decision to remain with his or her company. Our sample includes 713 students from seven countries: Canada, Colombia, Ecuador, (...) Hong Kong, Ireland, South Africa, and the United States. When analyzing the entire sample, our data indicate that both social desirability response bias and gender were significant; however, this was not the case when the data are analyzed by country. On an individual country basis, our data suggest that the generally accepted premise that women are more ethically conscious than men was only true for the samples from the United States and Canada. The data also indicate that, while social desirability response bias was significant for the four factors suggesting ethical components for the sample from the United States, this finding was not universal. (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 survey report is a follow-up to the survey done by the Center for Business Ethics in 1984/85 which was published in the Journal for Business Ethics under the title of 'Are Corporations Institutionalizing Ethics?' (Volume 5, 1986, pp. 85-91). This 1989/90 survey was again sent to Fortune 1000 industrial and service companies to find out what they have done to build ethical values into their organizations. It reveals some interesting comparisons with the 1984/85 survey with regard to expanding efforts, (...) objectives, progress, and methods of implementation, along with some new information on their perception of public pressure for ethics programs and the need for ethics education. The survey shows where some progress in building ethics into corporations seems to be occurring and where much more work needs to be done. (shrink)

This empirical study of Fortune 1000 firms assesses the degree to which those firms have adopted various practices associated with corporate ethics programs. The study examines the following aspects of formalized corporate ethics activity: ethics-oriented policy statements; formalization of management responsibilities for ethics; free-standing ethics offices; ethics and compliance telephone reporting/advice systems; top management and departmental involvement in ethics activities; usage of ethics training and other ethics awareness activities; investigatory functions; and evaluation of ethics program activities. Results show a high (...) degree of corporate adoption of ethics policies, but wide variability in the extent to which these policies are implemented by various supporting structures and managerial activities. In effect, the vast majority of firms have committed to the low cost, possibly symbolic side of ethics management (e.g., adoption of ethics codes and policies, etc.). But firms differ substantially in their efforts to see that those policies or codes actually are put into practice. (shrink)

Isaac Levi's principle of direct inference, from an agent's knowledge of a chance to that agent's corresponding credence, is central to his account of chance. He holds moreover that this principle shows the 'gratuitous, diversionary and obscurantist character' of frequency, propensity and other metaphysical theories of what chances are. In this contribution to Levi's Festschrift, I argue that, on the contrary, his direct inference principle commits him to just such a theory, the propensity theory.