Corporate Ethics Codes: A New Generations' Tool for Strategic Global Management and Decision-Making

The premise of this article is that it is important to train domestic and international executives in management ethics using corporate ethics codes. Incorporating ethics codes into the professional development of executives in business and industry contributes to the institutionalization of codes in the global workplace. Ethics institutionalization imbues corporate structures with understanding, both internally and externally, of the concepts of ethics. At an east coast University School of Management a Comparative Code Method (CCM) was developed and tested. Among the major findings, was that the use of corporate codes quickly transitions employees from an individual ethical perspective to a corporate ethical perspective. This revised version was published online in August 2006 with corrections to the Cover Date.     

Codes of Ethics: What Are They Really and What Should They Be?

Codes of ethics are prevalent in major corporations around the world. They are seen as the first tangible commitment to being ethical. This paper examines codes of ethics and tries to establish what they are, how they are developed and their net utility. We then proffer the idea of codes as the first part of a five-stage process that leads to an overall corporate commitment to being ethical in one's business dealings.     

The Ethics of Management Research: An Exploratory Content Analysis

Management academics have tended to rely on ethics codes developed by social researchers in related fields to inform their research practice. The point of this paper is to question whether this remains a viable approach in the current climate that is characterized by a significant increase in ethical regulation across the social sciences. We suggest that management researchers face ethical issues of a different nature to those most frequently confronted by other social science researchers, and argue for more explicit acknowledgement of contextual factors involved in management research. An exploratory analysis of the content of ethics codes formulated by nine social scientific associations is undertaken to identify the main ethical principles they cover and to analyse their underlying ethical tone. Drawing attention to the principle of reciprocity, which is found in very few codes, we suggest that an ethics code could be used to formulate new ways of thinking about management research relationships. Despite the risk that ethics codes may encourage instrumental compliance with minimal ethical obligations, we suggest they also have the potential to reflect a more aspirational agenda. The development of an ethics code for management research should therefore be seen as a potentially worthwhile project.     

Is HRD in need of an ethics of care?

Human Resource Development (HRD) operates within competitive global environments and the changing expectations of societal moral values, which can be in conflict with organizational values, performance, and profit. These are underpinned by the unquestioning acceptance and ‘orthodoxy’ of free‐market economics, legalism, and codes of conduct that result in a lack of ethical analysis within HRD practice. In response to the forgoing, it will be argued that the ethics of care that espouses the values of human relationships, empathy, dignity, and respect is a legitimate approach to free-market lead ethical rule-based rationality that is often presented as the de facto position for HRD professional practice. It presents the ethical debates in which HRD operates within, before arguing for the ethics of care. Three case examples from practice are offered illustrating how HRD practice might respond through the lens of an ethics of care. Reflections and implications for HRD in the form of objections and responses are considered. It concludes that HRD professionals are faced with many difficulties when making decisions, and that the ethics of care offer is an alternative perspective for HRD practitioners.     

Engineering ethics: The responsibility of the manager

This paper addresses the growing importance of ethics in today's society. Many professional societies have adopted formal codes of ethics for their organization and members. However, the engineer as a manager has an obligation not only to his profession but to his employees, organization, and the public as well to enforce ethical decisions and behavior at all times.     

The negative impact of chameleon-inducing personalities on employees' ethical work intentions: The mediating role of Machiavellianism

Self-interested moves, such as manipulation and deception in interpersonal relationships with parties inside and outside the workplace, constitute a serious concern for management. Machiavellianism is often directly blamed for such ethical failures, but more generic individual differences, such as those linked to the use of chameleon-like approaches to match an immediate cultural or social environment (i.e., external locus of control, relativistic beliefs), may have indirect influences. Because these chameleon-inducing personalities may foster self-interested decisions, by prompting the abandonment of strict moral codes, this study investigates Machiavellianism as a potential mechanism by which these personalities relate negatively to ethical work intentions. The results, obtained with a sample of 436 banking employees from Spain, reveal that external locus of control and relativistic beliefs relate positively to Machiavellianism, and that Machiavellianism mediates the negative influence of chameleon-inducing personalities on ethical work intentions. The study thus provides novel information for managers interested in reducing employees’ Machiavellian tendencies and offers appropriate strategies for deterring their unethical work behaviors.     

Factors of Employees’ Effective Voice in Corporate Goverance*

Traditionally, corporate governance has focused on the problem of crafting mechanisms to align the interests of owners and managers. The key characteristic has been to minimize the potential for managers to act in their own self-interest at the expense of shareholders. The purpose of this paper is to focus on employees as stakeholders in the governance process. We argue that creating an environment where employees have help in behaving ethically, in the course of their work, is the first step in encouraging them to voice observations of wrongdoing. Seven groups of professionals in the accounting and insurance fields were surveyed during a 10-year period and asked to indicate the extent to which 14 items were helpful in dealing with ethical challenges. Over 2700 responses were analyzed. The findings indicate that professionals think that their organizational culture and policy for voice was more helpful in dealing with ethical dilemmas than was their professional association. *Presented at the 2004 European Academy of Management Conference in St. Andrews, Scotland     

Vietnam: A cross-cultural comparison of upward influence ethics

We explore the ethical facets of within-company upward influence behavior. Our focus is Vietnam, where only minimal research has been conducted, with comparison data from China, France, and the US—countries that have had both past and present relationships with Vietnam. Our hypotheses are developed within the contexts of the historical, business ideology, and socio-cultural relationships that Vietnam has shared with these countries. The findings indicate that Vietnam is a country that is largely unique unto itself regarding the perspective on upward influence ethics that is held by its professional workforce.     

Causes and Consequences of Inflation

While ethical implications of direct taxation systems have recently received renewed attention, a more veiled scheme remains unnoticed: inflation. We overview the causes of inflation and assess its consequences. Salient wealth redistributions are a defining feature of inflation, as savers and fixed income individuals see a relative wealth reduction. While avoiding this “tax” is difficult in many instances because of the primacy of money in a monetary economy, the tax codes of most developed countries allow avoidance techniques to be employed. We analyze three ways that inflation may be avoided in an attempt to preserve personal wealth, as well as the consequences of such practices.     

When bankers feel guilty–Employees’ vicarious guilt and the support of moral business practices

Media regularly report on misconduct and ethical transgression in a variety of professions, including banking. This research investigates the conditions under which individual employees experience guilt for wrongdoings on behalf of their profession. In a sample of 295 bankers, I find an inverted u-shaped relationship between professional identification and collective guilt. Furthermore, the data indicates a positive relationship between levels of experienced guilt and degree of moral intentions, such as supporting stricter regulations that aim to prevent future professional malpractice. The study's results present guilt as a central factor related to professional identification and intentions towards improving ethical business practices.     

Ethical dilemmas in a professional service context

This paper reports on the results of action research exploring the kinds of ethical problems that confront employees in the professional services industry. Data were collected from a single firm via participant observation methods at eight locations across the country. Issues raised included service delivery, responses to life threatening situations, marketing, client relationships, client entertaining, bribery, billings, as well as intra-firm issues such as support for professional judgments in the field, employee health and safety, and compensation. The paper concludes with an assessment of the utility of the approach taken by the firm, the generalizability of the issues beyond the single case setting, as well as an assessment of the managerial issues related to fostering and sustaining an ethical environment within a business organization.     

Making corporate governance count: the fusion of ethics and economic rationality

Corporate governance codes extensively appeal to ethical standards of conduct. Rather than being articulated alongside economic axioms, ethical and moral precepts are intertwined within neo-classical economic argumentation across corporate governance standards. This paper explores the fusion between ethics and modern economic rationality and reflects on the scientisation of economics and ethics in academic discourse. The argument is then made that the enlistment of ethics within the epistemologically privileged posture of economics characterises corporate governance codes. The UK Combined Corporate Governance Code of 2006 is analysed to draw out the paper’s contention.

When push comes to shove: implementing VBAC practice guidelines

The dramatic increase in U.S. cesarean sections over the past two decades has been significantly driven by repeat C-sections. In response to this trend, clinical guidelines recommending vaginal birth after cesarean-section (VBAC) have been promulgated by national organizations. Adherence to these guidelines would reduce the number of repeat C-sections, lower the overall C-section rate, and improve both the quality and the cost of health care. While these guidelines have received professional endorsement, their implementation has been clouded by issues of patient acceptance and provider payment. To examine implementation of these guidelines by health care organizations, the authors surveyed 156 members of the American College of Physician Executives to determine their policies, practices, and attitudes toward VBAC guidelines. Those surveyed generally were medical directors in HMOs, hospitals, and other practice settings. The findings indicate that the health care organizations represented by these physician executives have not consistently implemented VBAC guideline and that they are reluctant to hold physicians, their patients, or hospitals accountable for the financial, utilization, and quality impact of the elective decision ot to pursue appropriate VBACs. We conclude that, even when widely accepted, clinical practice guidelines may be ineffective in reducing the costs or improving the quality of medical care.     

Codes of conduct in Hong Kong organisations

This paper first reviews the literature on the role of codes of conduct for organisations in Hong Kong in their attempts to manage increasingly complex ethical problems and issues. It shows that, although valuable foundations exist upon which to build, research and understanding of the subject is at it's embryonic stage. Social Psychology literature is examined to investigate what lessons those concerned with the study of ethics may learn and the work of Hofstede, as seminal in the area of work-related values, is emphasised in this context.Following Hofstede's proposals for strategies for operationalizing¹ constructs about human values, a content analysis² was conducted on a pilot sample of codes provided by Hong Kong organisations. The results show three clearly identified clusters of organisations with common formats. The first group, described as Foreign Legal, emphasises legal compliance, has criteria for invoking penalties and consists of foreign-owned, large multinational organisations. Companies in the second cluster have codes which, except in the case of a couple of larger organisations, mainly follow the Independent Commission Against Corruption's (ICAC) standard format. The third cluster, described as the Bank Network, also appear to largely conform to a format: the Hong Kong Banking Association's guidelines.Further analysis conducted here of the Hong Kong codes indicates the important role of emic teleological values³, such as trust and reputation, amongst indigenous organisations, rather than the amorality suggested by an earlier study (Dolecheck and Bethke, 1990). These results support the proposition that Hong Kong ethical perspectives are culture bound⁴, as there appear to be different emphases than revealed in an American study (Stevens, 1994), which identified an emphasis in the US codes upon introverted organisational issues and a failure to espouse deontological values⁵.The conclusion is that designing a research programme on business values in Hong Kong requires reference to studies of values in cross-cultural psychology generally and to Hofstede's work in particular. It also supports the need for indigenous research and models in this field which avoid the ethnocentrism inherent in much Western theory and research.     

Human development as a central goal for human resource development

This essay seeks to connect core aspects of the human development (HD) literature with its ethical and moral commitment to human flourishing and theoretical and applied scholarship in human resource development (HRD). Summarizing the central arguments advanced by philosopher John Finnis and economist and Nobel Memorial Prize winner Armatya Sen, the paper argues for the relevance of the HD frameworks for HRD. This is done by briefly reviewing the role of values for professional fields in general and HRD in particular, followed by a summary of the justifications for and definitions of HD as reciprocal obligations between social institutions and individuals. The central part of the paper argues for the conceptual proximity of the two fields and proposes that the moral and ethical value stance of HD can provide a solid philosophical foundation for HRD.     

Complying with voluntary codes of conduct: Corporate strategies for the Valdez Principles

The Valdez Principles is the latest of a series of voluntary codes of conduct that have been enunciated by various advocacy groups to guide the behavior of business enterprises. These principles provide guidelines on corporate conduct towards the environment and present a corporation with critical choices. This study suggests alternative strategies that firms may adopt to cope with this new code. Experience with the Sullivan and MacBride Principles is analyzed to serve as the basis to predict corporate response to the Valdez Principles.     

Modelling complex ethical decision problems with operations research

This paper discusses the practical contribution of operations research (OR) techniques to modelling decision-making problems with ethical dimensions. Such problems are frequent in the global world: they frequently appear today in sustainability issues, e.g., in conflicts in the triangle of society, economy and environment. We show that the prerequisites for ethical problem-modelling are: the definition of moral principles, the evaluation of the decision context, the participation of stakeholders, the multidisciplinary collection of data, and the understanding of systemic interconnections. Classical OR instruments, mainly used in logistics and optimisation problems, are not entirely satisfactory for coping with the new ethical dimensions of sustainability. It is recommended to use and to develop more advanced, or combined instruments from the multi-criteria/multi-stakeholder and systemic streams of OR. It is argued that an important added value of using OR techniques for modelling today ethical issues lies at least as much in the discovery of open questions as in finding closed-form solutions.     

Formal Infrastructure and Ethical Decision Making: An Empirical Investigation and Implications for Supply Management

Building on Rest's (1986) conceptual model of ethical decision making, we derive and empirically test a model that links an organization's formal ethical infrastructure to individuals’ moral awareness of ethical situations, moral judgment, and moral intention. We contribute to the literature by shedding light on the importance of a multifaceted formal ethical infrastructure—consisting of formal communication, recurrent communication, formal surveillance, and formal sanctions—as a crucial antecedent of moral awareness. In so doing, we discern how these four elements of a formal ethical infrastructure combine to collectively influence moral awareness based on a second‐order factor structure using structural equation modeling. We test our model based on survey data from 805 respondents with significant work experience across three separate ethical scenarios. Our results across the three scenarios provide overall support for our model. We found that a second‐order factor structure for the formal ethical infrastructure explains the variance among the four infrastructure elements and that a multifaceted formal ethical infrastructure significantly increases moral awareness. Our results further suggest a strong positive effect of moral awareness on moral judgment, which in turn was found to have a positive impact on moral intention. These results were substantiated when taking several individual and contextual control variables into account, such as gender, age, religiosity, work satisfaction, and a de facto ethical climate. Implications for theory, practice, and supply management are discussed.     

An organizational climate regarding ethics: the outcome of leader values and the practices that reflect them

In this article, we argue that the organizational climate regarding ethics — the shared perception of what is ethically correct behavior and how ethical issues should be handled within an organization — is an outgrowth of the personal values and motives of organizational founders and other early organizational leaders. We begin by arguing that one common label for the climate regarding ethics construct — “ethical climate” — is inappropriate. We also argue that climate regarding ethics has an impact on organizational outcomes, including organizational outcomes that do not have explicit ethical components. We propose that this impact largely occurs through the mediating mechanisms of organizational cohesion and morale. We conclude by discussing the variety of antecedents and outcomes related to climate regarding ethics.     

Ethical leadership supports safety voice by increasing risk perception and reducing ethical ambiguity: Evidence from the COVID-19 pandemic

Misconduct by business and political leaders during the pandemic is feared to have impacted people's adherence to protective measures that would help to safeguard against the spread of COVID-19. Addressing this concern, this article theorizes and tests a model linking ethical leadership with workplace risk communication—a practice referred to as ‘safety voice’ in the research literature. Our study, conducted with 511 employees from UK companies, revealed that ethical leadership is positively associated with greater intention to engage in safety voice regarding COVID-19. We also find that this association is mediated by relations with the perceived health risk of COVID-19 and ambiguity about ethical decision making in the workplace. These findings therefore underscore the importance of good ethical conduct by leaders for ensuring that health and safety risks are well understood and communicated effectively by organizational members particularly during crises. We discuss the theoretical and practical implications of our study and highlight further opportunities for future research to address the ethical dimensions of leadership, risk management, and organizational risk communication.