Ethical Corporate Culture Research Articles

Utilising human resource management in developing an ethical corporate culture

Utilising human resource management in developing an ethical corporate culture

Leading an Ethical Corporate Culture? Apply Seven Lessons from the U.S. Marines

Leading an Ethical Corporate Culture? Apply Seven Lessons from the U.S. Marines

The State of Business Ethics in Israel: A Light Unto the Nations?

Whether the nation of Israel has become a “light unto the nations” in terms of ethical behavior among its business community remains in doubt. To examine the current state of business ethics in Israel, the study examines the following: (1) the extent of business ethics education in Israel; (2) the existence of formal corporate ethics program elements based on an annual survey of over 50 large Israeli corporations conducted over 5 years (2006–2010); and (3) perceptions of the state of business ethics based on interviews conducted with 22 senior Israeli corporate executives. In general, and particularly as a young country, Israel might be considered to have made great improvements in the state of business ethics over the years. In terms of business ethics education, the vast majority of universities and colleges offer at least an elective course in business ethics. In terms of formal business ethics program elements, many large companies now have a code of ethics, and over time continue to add additional elements. Most respondents believed they worked in ethical firms. Despite these developments, however, there appears to be significant room for improvement, particularly in terms of issues like: nepotism/favoritism; discrimination; confidentiality; treatment of customers; advertising; competitive intelligence; whistle-blowing; worker health and safety; and the protection of the environment. When compared with the U.S. or Europe, most believed that Israeli firms and their agents were not as ethical in business. A number of reasons were suggested that might be affecting the state of business ethics in Israel. A series of recommendations were also provided on how firms can better encourage an ethical corporate culture. The paper concludes with its limitations.

Battling Corruption Within a Corporate Social Responsibility Strategy

The following analysis falls into three sections. Having established the conceptual and ethical groundwork in Part One, Part Two contains an analysis of CSR principles. Part Three examines the role of CSR in battling unethical behavior, especially corruption, through anti-corruption policies and other measures for combating this phenomenon with particular emphasis on the 2003 United Nations (U.N.) Convention against Corruption. To clarify the analysis, this article focuses on the following two sets of inquiries: First, are corporations cognizant of the relevant anti-corruption conventions and soft-law instruments? How do they perceive these measures? What impact, if any, have these conventions had on companies? Have corporations adjusted or changed their behavior as a result? Second, have corporations voluntarily adopted codes of conduct or other internal measures that promote CSR? Do these measures include a commitment to confronting bribery or corrupt behavior internally and on the part of their agents and those in their supply chain? Is CSR a useful and effective tool in tackling corruption generally? If so, to what extent? This Note concludes in Part Four by arguing that CSR should be a priority among practitioners in fighting unethical corporate behavior.“The advent of globalization has brought about unprecedented changes in the pace and nature of business practices in both the community market place and the work place. In the context of an evermore connected and inter-reliant world, intense demand for economic growth pressures societies to address myriad environmental, economic, social, and health issues facing populations, businesses, and governments.”Nothing erodes sustainable economic development more than corruption. Given its systemic pervasiveness, the private sector plays a critical role and has a vested interest in assuming social as well as economic responsibility. Though implementation rests firmly in the hands of national governments, corporations cannot ignore their critical role in creating a sustainable anti-corruption initiative. Looking ahead, companies face several challenges.However, the private sector can generate viable solutions to fight corruption by serving as a role model to the larger business community. Through collaboration with government and civil society in knowledge-sharing forums, through creation of an ethical corporate culture via increased responsibilities, and through innovative solutions to reduce the risk of corruption in corporate governance, the private sector can make a significant impact. CSR practitioners must prioritize the battle against corruption. It is important to focus on specific goals and policies and build upon the current mechanisms developed by the international community, especially the U.N. Convention.The CSR movement possesses the potential to strengthen commitments made by state parties by developing model theories into everyday business practice. Therefore, it should be concerned with protecting and promoting integrity, stability, and good governance while encouraging the disruption and control of serious crime. Through such commitments, states will increase the well being of their national economies, institutions and enterprises and promote a better understanding of the real and practical risks facing business today.

The Responsibility and Accountability of CEOs: The Last Interview with Ken Lay

Responsibility and accountability of CEOs has been a major ethical concern over the past 10 years. Major ethical dilemmas at Enron, Worldcom, AIG, as well as other well-known organizations have been at least partially blamed on CEO malfeasance. Interviews with Ken Lay, CEO of Enron, after his 2006 fraud convictions provides an opportunity to document his perceived role in the demise of Enron. Possibly no other CEO has had as much impact on the scrutiny and legalization of business ethics as Ken Lay. This analysis is timely because of many information sources now available and the recent Supreme Court decisions on Enron conviction appeals. Using Ken Lay as the focal point, a review of literature provides the background for research questions to explore the role of the CEO in developing an ethical corporate culture.

A Work-Life Identity Model of Well-Being: Towards a Research Agenda Linking Quality-of-Work-Life (QWL) Programs with Quality of Life (QOL)

QWL is conceptualized in terms of the interface between employee role identities and work resources. QWL programs serve to enhance QOL by (1) providing appropriate work resources to meet the expectations of employee role identities, (2) reducing role conflict in work and non-work life, (3) enhancing multiple role identities, (4) reducing role demands, (5) reducing stress related to work and non-work role identities, and (6) increasing the value of the role identity. We describe a variety of QWL programs related to work life (decentralized organization structures, teamwork, parallel structures, ethical corporate mission and culture, the organization work schedule, etc.) and non-work life (work at home, flextime, compressed work week, part-time work arrangements, job sharing, etc.) and show how they serve to enhance QOL using the language of work-life identity. Doing so helps develop a research agenda based on the work-life identify model.

Inculcating Values-Based Leadership: One Canadian Firm’s Attempted Effort

When it comes to the establishment of an ethical corporate culture, there appears to be at least two inter-related foundational requirements: (1) the existence of an explicit set of core ethical values; and (2) the presence of ethical leadership, that is, an ethical “tone at the top.” Some companies appear however to have been more successful than others when it comes to establishing an appropriate “tone at the top,” that is, leaders that behave according to an explicit set of core ethical values. Building on previous values-based leadership research, this study examines the process of one Canadian-based firm’s initial efforts, following a series of embarrassing scandals and negative publicity, to inculcate values-based leadership via a set of core ethical values.

Management development: developing ethical corporate culture in three organisations

PurposeThe purpose of this investigation was to look at three organisations (a naval shore establishment, a police academy, and a small, family‐owned engineering firm) and see to what extent they had developed a culture that was both ethically and socially responsive.Design/methodology/approachThe investigation was carried out by speaking to key players, observing their organisations and by detailed analysis of the documents which related to this study.FindingsThe findings revealed that the Navy has a set of values (HHCIL) which overlap with the more general values of the Department of Defence (imPLICIT). The Western Australian Police Service has an approach to developing an ethical corporate culture which includes the establishment of a dedicated unit, and running discussion groups and seminars. The family‐owned and operated engineering business relies more heavily on an indirect approach based on following traditional family values.Research limitations/implicationsPursuing the topic of what makes a just war, particularly in today's political climate, was one possibility for further research. There were limitations to the study; these were mainly due to issues of confidentiality and in broaching sensitive topics to both Navy and Police senior officers.Originality/valueThree conditions were essential for developing an ethical corporate culture: CEOs were ultimately responsible for the ethicality of their organisations; formal training programs were necessary to impart the required knowledge; and formal mechanisms were essential to facilitate the reporting of any behaviour of organisational members that was deemed to be wrong, unethical or illegal.

International corporate compliance programmes

There are numerous reasons for companies to expand their compliance efforts to all of their locations and all of their employees, wherever located, and many companies have done or are in the process of doing just that. Indeed, those organisations that operate in multiple countries are under increasing pressure to implement compliance and ethics programmes everywhere they do business. There are a host of good reasons for organisations to implement global compliance programmes, including the globalisation of the world's economy, the rise of the European Union as a legal force, the continued importance of those US laws that are applicable to conduct outside the United States, and the increased importance of compliance and ethics programmes both outside and within the United States. If implemented effectively, global compliance and ethics programmes can help prevent or lead to the early detection of misconduct, and can assist in the promotion of an ethical corporate culture. There are a large number of resources that help guide companies in the creation and implementation of global compliance programmes. The general structure of a compliance programme as articulated by the US Sentencing Guidelines for Organizations is appropriate for a global compliance programme. There are, however, certain complexities that can arise from globalisation of a compliance programme of which companies should be aware, including issues of poor or no translation of compliance programme documents, culturally insensitive communication of the compliance and ethics message, the potential danger of rejection of the components of the compliance programme by works councils or their equivalent, and application of the compliance programme to third parties. In developing and implementing global compliance programmes, companies should be aware of the risks emanating from their implementation and should take steps at the outset to minimise those risks and create greater acceptance — and hence greater effectiveness — of the programme.

E‐thics: the new moral methodology for business

PurposeThe purpose of this paper is to describe a new methodology called E‐thics, how it can be applied to an investment company, and how it can be used as a catalyst to develop an ethical corporate culture.Design/methodology/approachDiscusses recent events that have led the general public to expect improved corporate behaviour; what compels companies toward ethical behaviour; recent legislation designed to prevent the harm caused by corruption, greed, and fraud; how ethics are turned into E‐thics; and the apparatus, promise, and limitations of E‐thics.FindingsE‐thics applies policy‐based review and control to electronic communication. It acts like a virtual conscience, sitting on the edge of all your computer screens. An effective E‐thics system should detect all messages that contain breaches of ethics and also should educate the sender about the nature of the breach and other corrective instructions. E‐thics requires the full participation of everyone in the firm, not just lip service. Its greatest value may be that it will act as a catalyst for the evolution of a corporate culture based on shared ethical values, fairness, responsibility, and stewardship. E‐thics can help the investment community move from a culture of compliance to one of true ethics.Originality/valueWhile recommending a system to screen potential harmful electronic messages, an explanation is also given as to how such a system can fit into a broader effort to develop an ethical corporate culture.

Ethics in Business: Answering the Call

What might happen if business leaders across the globe viewed their work as a sacred calling in a religious sense? Might not the world be a far better place? This paper is an effort to stimulate debate and discussion on this topic. Concepts addressed include: (a) ethics in business, (b) ethical standards in business settings, (c) the role of law, (d) levels of corporate responsibility, (e) the role of religion in business ethics, (f) the idea of business as a calling in a religious sense, (g) the elements of modern corporate culture, (h) creating an ethical corporate culture, (i) demonstrating corporate social responsibility, and (j) providing servant leadership. The introduction to the paper shows how these concepts interrelate; its conclusion offers a challenge to business leaders to answer their call to business in the truest sense.

Are Excellent Companies Ethical? Evidence from an Industrial Setting

This study explores the relationship between corporate ethics and the concept of excellence as defined by Peters and Waterman (1982). A review of the literature on ethics and excellence leads to the proposition that the two are related. The constructs are operationalized and the relationship between them empirically tested using a sample of UK industrial marketing managers. The results provide strong evidence of a positive association between the two constructs, and identifies which of the aspects of excellence are the best predictors of the level of corporate ethics. The findings are discussed and a process model proposed of how excellence might foster an ethical corporate culture. Finally, areas for further research are outlined.

The effect of organizational culture and ethical orientation on accountants' ethical judgments

This paper examines the relationship between organizational ethical culture in two large international CPA firms, auditors' personal values and the ethical orientation that those values dictate, and judgments in ethical dilemmas typical of those that accountants face. Using an experimental task consisting of multiple judgments designed to vary in "moral intensity" (Jones, 1991), and unique as well as tried-and-true approaches to variable measurements, this study examined the judgments of more than three hundred participants in our study. ANCOVA and path analysis results indicate that: (1) Ethical judgments in situations of high moral intensity are affected by personal values and by environmental variables, such as the professional code of conduct (direct and indirect effects) and previous ethics instruction (direct effect only). (2) Corporate ethical culture, and a relatively strong firm rules-orientation, affect auditors' idealism but not relativism, and therefore indirectly affect ethical judgments. Jones' (1991) moral intensity argument is supported: differences in the characteristics of specific judgment tasks apparently result in different decision processes.

Microcultural Differences and Perceived Ethical Problems: An International Business Perspective

This study examines the importance of microcultural differences on perceived ethical problems. This study also sought to identify the relationship between perceived ethical problems and value orientations as shown in the Hunt and Vitell's (1993) General Theory of Marketing Ethics. The data was collected from 173 Javanese, 128 Batak, and 170 Indonesian-Chinese marketing managers in Indonesia. The results indicate that, (1) Religious Value Orientation is positively related to the perceived ethical problems scores, and (2) there are significant differences among the three ethnic microcultural groups relative to their perceived ethical problems scores. These results imply that acculturation training program for expatriates should include aspects of microcultures and ethical perceptions held by the local managers. The establishment of ethical corporate culture and formalised codes of conduct are recommended for future ethics training.

Ethical dimensions of environmental management

Argues that corporate responsibility must span over the legal, social, economic and technological domains. Places environmental system standards and auditing in their business strategic roles and gives a stakeholder approach to environmental management with its relationship to sustainability, economic growth and improved quality of life. Outlines the importance and relevance of “green” yardsticks in non‐financial performance measurement terms. Analyses ethical dimensions, stressing that, by developing an ethical corporate culture, businesses can create both a competitive advantage and environmental excellence. Provides examples of contemporary environmental strategies in a European context.

Can business ethics enhance corporate governance? Evidence from a survey of UK insurance executives

This paper seeks to explore the implementation of corporate ethical culture and policies as an adjunct to formal forms of corporate governance. The insurance industry utilises a variety of external governance structures, but is almost unique in that stock companies (which are exposed to an external market for corporate control) and mutual companies (which are owned by a subset of their customers) are in active competition. A questionnaire survey of senior executives in U.K. insurance companies was undertaken to explore the implementation of ethical policies and codes, to investigate ethical attitudes, and to analyze the extent to which these policies and attitudes varied among companies. The results suggest that ethical policies have a higher profile and ethical attitudes and behaviour are more positive in mutual as opposed to stock insurance companies. These findings support the contention that a strong corporate ethical culture may be utilised to enhance formal corporate governance instruments.

What corporate America is teaching about ethics

Executive Overview Many corporations are convinced that an ethical corporate culture is related to strategic advantage. To establish this culture, corporations have worked at establishing codes of ethical conduct. Now, as corporations complete the establishment of codes, more and more are turning to ethics training as the next step in incorporating ethical considerations into decision-making. What constitutes ethics training varies widely. Corporations conducting ethics training generally include messages from CEOs or other managers, discuss codes of ethics, and provide mechanisms for reporting problems. Corporate classes on ethics also include case studies, guidelines for ethical decisions, decision-making frameworks, and cognitive intervention. This article examines the current state of the objectives, extent, and content of ethics training. Implications for management are discussed.

Law, force and diplomacy at sea

Whistleblowers are ostracized and isolated for identifying wrongdoings. Despite this deterrent, the whistleblowers have not recoiled. Nonetheless, organizations need to develop an ethical corporate culture, where employees become ‘ethical partners’ and do the right thing, not because they have to, but because they want to. The study aimed to measure the effects of ethical cultural practices using the lens of Kaptein's (2008) Corporate Ethical Virtues Model (CEVM). Split Questionnaire Survey Design (SDSD) was chosen to record responses of 104 internal auditors working in nine public and sixteen private sector organizations. Results reveal significant positive relationships between whistleblowing and the CEVM virtues.