Showing papers in "Journal of Business Ethics in 2004"
TL;DR: In this article, the authors classify the main CSR theories and related approaches in four groups: (1) instrumental theories, in which the corporation is seen as only an instrument for wealth creation, and its social activities are only a means to achieve economic results; (2) political theories, which concern themselves with the power of corporations in society and a responsible use of this power in the political arena; (3) integrative theories, focusing on the satisfaction of social demands; and (4) ethical theories based on ethical responsibilities of corporations to society.
Abstract: The Corporate Social Responsibility (CSR) field presents not only a landscape of theories but also a proliferation of approaches, which are controversial, complex and unclear. This article tries to clarify the sit- uation, ''mapping the territory'' by classifying the main CSR theories and related approaches in four groups: (1) instrumental theories, in which the corporation is seen as only an instrument for wealth creation, and its social activities are only a means to achieve economic results; (2) political theories, which concern themselves with the power of corporations in society and a responsible use of this power in the political arena; (3) integrative theories, in which the corporation is focused on the satisfaction of social demands; and (4) ethical theories, based on ethical responsibilities of corporations to society. In practice, each CSR theory presents four dimensions related to profits, political performance, social demands and ethical values. The findings suggest the necessity to develop a new theory on the business and society relationship, which should integrate these four dimensions.
3,629 citations
TL;DR: In this article, the authors argue that the formal adoption and implementation of CSR by corporations could be associated with the changing personal values of individual managers, which may find expression through the opportunity to exercise discretion.
Abstract: In this theoretical paper, motives for CSR are considered. An underlying assumption is that the commercial imperative is not the sole driver of CSR decision-making in private sector companies, but that the formal adoption and implementation of CSR by corporations could be associated with the changing personal values of individual managers. These values may find expression through the opportunity to exercise discretion, which may arise in various ways. It is suggested that in so far as CSR initiatives represent individuals' values, so the “responsibility” in evidence is less obviously “corporate.” Our emphasis on personal initiative is intended to counter a tendency to view the corporation as the agent, and may serve to remind us that individuals can, indeed, make a difference.
1,280 citations
TL;DR: A review of the development of socially responsible investment (SRI) over recent years and highlights the prospects for an increasingly strong connection with the practice of corporate social responsibility is presented in this article.
Abstract: This paper reviews the development of socially responsible investment (SRI) over recent years and highlights the prospects for an increasingly strong connection with the practice of corporate social responsibility. The paper argues that not only has SRI grown significantly, it has also matured. In particular, it has become an investment philosophy adopted by a growing proportion of large investment institutions. This shift in SRI from margin to mainstream and the position in which institutional investors find themselves is leading to a new form of SRI shareholder pressure. Although this bears some resemblance to lobbying campaigns which might take advantage of shareholder rights, we seek to distinguish it as an important phenomenon in its own right — one to which corporate executives are likely to be paying increasing attention in the years to come. We further argue that this approach potentially meets some of the earlier ethical criticisms of certain forms of SRI but, ironically, probably owes its existence to those pioneering approaches. We conclude with some suggestions for further research to inform discussion of the issues highlighted in the paper.
676 citations
TL;DR: In this paper, the authors present a values framework for workplace spirituality, and a discussion of the factors and assumptions involved for future research are outlined, as well as the potential for empirical testing.
Abstract: Growing interest in workplace spirituality has led to the development of a new paradigm in organizational science Theoretical assumptions abound as to how workplace spirituality might enhance organizational performance, most postulating a significant positive impact Here, that body of research has been reviewed and analyzed, and a resultant values framework for workplace spirituality is introduced, providing the groundwork for empirical testing A discussion of the factors and assumptions involved for future research are outlined
568 citations
TL;DR: In this paper, the authors discuss seven mechanisms by which leaders convey the importance of ethical values to members, and establish the expectations regarding ethical conduct that become engrained in the organization's climate.
Abstract: This paper examines the critical role that organizational leaders play in establishing a values based climate. We discuss seven mechanisms by which leaders convey the importance of ethical values to members, and establish the expectations regarding ethical conduct that become engrained in the organization’s climate. We also suggest that leaders at different organizational levels rely on different mechanisms to transmit values and expectations. These mechanisms then influence members’ practices and expectations, further increase the salience of ethical values and result in the shared perceptions that form the organization’s climate. The paper is organized in three parts. Part one begins with a brief discussion of climates regarding ethics and the critical role of values. Part two provides discussion on the mechanisms by which leaders and members transmit values and create climates related to ethics. Part three provides a discussion of these concepts with implications for theory, research, and practice.
543 citations
TL;DR: In the context of some criticism about social responsibility education in business schools, this paper reported findings from a survey of CSR education (teaching and research) in Europe, and analyzed the extent of CSRI education, the different ways in which it was defined and the levels at which it is taught.
Abstract: In the context of some criticism about social responsibility education in business schools, the paper reports findings from a survey of CSR education (teaching and research) in Europe. It analyses the extent of CSR education, the different ways in which it is defined and the levels at which it is taught. The paper provides an account of the efforts that are being made to “mainstream” CSR teaching and of the teaching methods deployed. It considers drivers of CSR courses, particularly the historical role of motivated individuals and the anticipation of future success being dependent on more institutional drivers. Finally it considers main developments in CSR research both by business school faculty and PhD students, tomorrow's researchers and the resources devoted to CSR research. The conclusion includes questions that arise and further research directions.
480 citations
TL;DR: In this paper, students at two Southern United States universities (one public and one private, religiously affiliated) were surveyed using a survey instrument that includes 25 vignettes, and two important hypotheses were tested: whether ethical attitudes are affected by religiosity (H1) and whether ethical attitude is affected by courses in ethics, religion or theology (H2) using a definition of religiosity based on behavior (church attendance).
Abstract: We survey students at two Southern United States universities (one public and one private, religiously affiliated). Using a survey instrument that includes 25 vignettes, we test two important hypotheses: whether ethical attitudes are affected by religiosity (H1) and whether ethical attitudes are affected by courses in ethics, religion or theology (H2). Using a definition of religiosity based on behavior (church attendance), our results indicate that religiosity is a statistically significant predictor of responses in a number of ethical scenarios. In seven of the eight vignettes for which religiosity is significant, the effect is negative, implying that it reduces the “acceptability” of ethically-charged scenarios. Completion of ethics or religion classes, however, was a significant predictor of ethical attitudes in only two of the 25 vignettes (and in the expected direction). We also find that males and younger respondents appear to be more accepting of the ethically-questionable vignettes. We conclude that factors outside of the educational system may be more influential in shaping responses to ethical vignettes than are ethics and religion courses.
450 citations
TL;DR: In this paper, the authors present a conceptual framework of inclusion based on a moral theory of recognition and introduce the founding principles of reciprocal understanding, standpoint plurality and mutual enabling, trust and integrity.
Abstract: In management theory and business practice, the dealing with diversity, especially a diverse workforce, has played a prominent role in recent years. In a globalizing economy companies recognized potential benefits of a multicultural workforce and tried to create more inclusive work environments. However, “many organizations have been disappointed with the results they have achieved in their efforts to meet the diversity challenge” [Cox: 2001, Creating the Multicultural Organization (Jossey-Bass, San Francisco)]. We see the reason for this in the fact that while much attention has been paid to the strategic dimension of diversity policies, systems, and processes, much less thought has been given to the normative dimension, the norms and values involved. Given the fact that diversity is essentially about cultural norms and values, appropriate reflection work becomes a fundamental task to create a truly inclusive work environment where people from diverse backgrounds feel respected and recognized. Therefore, we focus in this article on the challenge of building an inclusive diversity culture showing that such a “culture of inclusion” has to be built on solid moral grounds. We present a conceptual framework of inclusion based on a moral theory of recognition and introduce the founding principles of reciprocal understanding, standpoint plurality and mutual enabling, trust and integrity. After revealing barriers that hinder a culture of inclusion from emerging we shed light on the process of developing such a culture which involves four essential transformational stages: The first phase focuses on raising awareness, building understanding and encouraging reflection. The second phase deals with the development of a vision of inclusion as an important step to define the change direction. In a third phase key management concepts and principles should be re-thought. This leads to the fourth, action-oriented phase, that focuses on an integrated Human Relations Management (HRM)1 system that helps implement change by doing both, translating the founding principles via competencies into observable and measurable behavior and fostering the development, reinforcement and recognition of inclusive behavior.
432 citations
TL;DR: Three types of codes are distinguished: the stakeholder statute, the values statement and the code of conduct, which present a benchmark for the evaluation and development of both individual and international business codes.
Abstract: 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.
421 citations
TL;DR: The authors furthers the argument for a stakeholder theory that integrates into managerial decision-making the relationship between business organizations and the natural environment, and provides a stronger basis for arguing for the salience of the environment as the primary and primordial stakeholder of the firm.
Abstract: This article furthers the argument for a stakeholder theory that integrates into managerial decision-making the relationship between business organizations and the natural environment The authors review the literature on stakeholder theory and the debate over whom or what should count as a stakeholder The authors also critique and expand the stakeholder identification and salience model developed by Mitchell and Wood (1997) by reconceptualizing the stakeholder attributes of power, legitimacy, and urgency, as well as by developing a fourth stakeholder attribute: proximity In this way, the authors provide a stronger basis for arguing for the salience of the natural environment as the primary and primordial stakeholder of the firm
409 citations
TL;DR: In this article, the authors provide a description of the characteristics of Fair Trade, including definitional issues, market size and segmentation and the key organizations, and highlight the key issues that currently face the Fair Trade movement.
Abstract: Although Fair Trade has been in existence for more than 40 years, discussion in the business and business ethics literature of this unique trading and campaigning movement between Southern producers and Northern buyers and consumers has been limited. This paper seeks to redress this deficit by providing a description of the characteristics of Fair Trade, including definitional issues, market size and segmentation and the key organizations. It discusses Fair Trade from Southern producer and Northern trader and consumer perspectives and highlights the key issues that currently face the Fair Trade movement. It then identifies an initial research agenda to be followed up in subsequent papers.
TL;DR: In this article, the authors investigated the pattern of institutional shareholding in the U.K. and its relationship with socially responsible behavior by companies within a sample of over 500 UK companies.
Abstract: This study investigates the pattern of institutional shareholding in the U.K. and its relationship with socially responsible behavior by companies within a sample of over 500 UK companies. We estimate a set of ownership models that distinguish between long- and short-term investors and their largest components and which incorporate both aggregated and disaggregated measures of corporate social performance (CSP). The results suggest that long-term institutional investment is positively related to CSP providing further support for earlier studies by Johnson and Greening (1999, Academy of Management Journal 42, 564–576) and Graves and Waddock (1994, Academy of Management Journal 37, 1034–1046). Disaggregation of CSP into its constituent components suggests that the pattern of institutional investment is also related to the form which CSP takes. Investigation of the impact of investment screens on the selection of stocks suggests that long-term institutional investors select primarily through exclusion, rejecting those firms which have the worst CSP.
TL;DR: In this article, the authors assess how management's perceptions regarding certain aspects of environmental reporting relate to the firm's actual reporting strategy and propose a model where a firm's environmental disclosure is conditional upon executive assessments of corporate concerns.
Abstract: This paper's purpose is to assess how management's perceptions regarding certain aspects of environmental reporting relate to the firm's actual reporting strategy. Toward that end, we propose a model where a firm's environmental disclosure is conditional upon executive assessments of corporate concerns. The study relies on a survey that was sent to environmental management executives from European and North American multinational firms enquiring about the determinants of corporate environmental disclosure. Responses from these executives were then contrasted with their firms' actual environmental reporting practices, which was measured using a comprehensive multi-criteria grid. Results show that there is a relationship between environmental managers' attitudes toward various stakeholder groups and how those managers respond to the stakeholders via the decision to disclose and the actual disclosures made. Our model provides a perspective as to how a firm responds to the numerous stakeholders to whom it must be accountable. This accountability in turn relates to how the company communicates its actions to society in order to achieve or maintain its social legitimacy.
TL;DR: In this paper, the authors revisit the history of public management and in particular, the experience of social-democratic governments during the 1960s and 1970s, and their attempts to impose social responsibility upon the managers of nationalized industries.
Abstract: This paper raises a challenge for those who assume that corporate social responsibility and good corporate governance naturally go hand-in-hand. The recent spate of corporate scandals in the United States and elsewhere has dramatized, once again, the severity of the agency problems that may arise between managers and shareholders. These scandals remind us that even if we adopt an extremely narrow concept of managerial responsibility – such that we recognize no social responsibility beyond the obligation to maximize shareholder value – there may still be very serious difficulties associated with the effective institutionalization of this obligation. It also suggests that if we broaden managerial responsibility, in order to include extensive responsibilities to various other stakeholder groups, we may seriously exacerbate these agency problems, making it even more difficult to impose effective discipline upon managers. Hence, our central question: is a strong commitment to corporate social responsibility institutionally feasible? In searching for an answer, we revisit the history of public management, and in particular, the experience of social-democratic governments during the 1960s and 1970s, and their attempts to impose social responsibility upon the managers of nationalized industries. The results of this inquiry are less than encouraging for proponents of corporate social responsibility. In fact, the history of public-sector management presents a number of stark warnings, which we would do well to heed if we wish to reconcile robust social responsibility with effective corporate governance.
TL;DR: In this paper, the growing influence of non-governmental organizations (NGOs) in the realm of socially responsible investing (SRI) has been investigated, and the authors find that NGOs have opportunities to influence corporate conduct via direct, indirect, and interactive influences on the investment community.
Abstract: In this article, we document the growing influence of non-governmental organizations (NGOs) in the realm of socially responsible investing (SRI). Drawing from ethical and economic perspectives on stakeholder management and agency theory, we develop a framework to understand how and when NGOs will be most influential in shaping the ethical and social responsibility orientations of business using the emergence of SRI as the primary influencing vehicle. We find that NGOs have opportunities to influence corporate conduct via direct, indirect, and interactive influences on the investment community, and that the overall influence of NGOs as major actors in socially responsible investment is growing, with attendant consequences for corporate strategy, governance, and social performance.
TL;DR: In this paper, the authors examined the relationship between a company's emphasis on discretionary social responsibility, environment, and firm performance and found a significant moderating effect of environment on the social responsibility-firm performance relationship.
Abstract: This study examines the relationships between a company's emphasis on discretionary social responsibility, environment, and firm performance. It tests the proposition that environmental munificence and dynamism moderate the relationship between discretionary social responsibility and financial performance. Social responsibility was measured with a three-item scale in a sample of 62 firms using a questionnaire. Environmental munificence and dynamism were measured using archival sources as was financial performance (return on assets and return on sales). The results of moderated regression analyses and subgroup analyses found a significant moderating effect of environment on the social responsibility-firm performance relationship. Discretionary social responsibility contributes to firm performance in environments that are dynamic and munificent.
TL;DR: In this paper, the authors examined the state of Tennessee as a case study, and collected data on the board composition of publicly traded corporations and compared those data to an original study conducted in 1995.
Abstract: Has the diversity of corporate boards of directors improved? Should it? What role does diversity play in reducing corporate wrongdoing? Will diversity result in a more focused board of directors or more board autonomy? Examining the state of Tennessee as a case study, the authors collected data on the board composition of publicly traded corporations and compared those data to an original study conducted in 1995. Data indicate only a modest improvement in board diversity. This article discusses reasons for the scarcity of women on boards and concludes that, to enhance strategic decisions, board membership should reflect the corporation's consumer population. Thus, women are a critical but overlooked resource. Areas for future research are also considered.
TL;DR: In this paper, the authors examined the inconsistency between the beliefs of college students regarding the need for ethical behavior in a business setting and their actions in an academic setting and reported widespread cheating among college students.
Abstract: Previous studies have reportedstudents' widely held belief that they are moreethical than businessmen. On the other hand,widespread cheating among college students hasbeen reported. This paper examines thisinconsistency between the beliefs of collegestudent regarding the need for ethical behaviorin a business setting and their actions in anacademic setting.
TL;DR: In this article, the responses of students from eight different countries to questions on their probable actions to an ethical dilemma were analyzed, showing that personal characteristics are an important aspect of cultural norms.
Abstract: Business ethics attracts increasing attention from business practitioners and academic researchers. Concerns over fraudulent behavior keep attentionfocused on ethics in businesses. The accounting profession pays particularattention to matters of ethical judgment. The profession has adopted a strictcode of conduct and many states require the passage of an ethics exam to gaincertification. The more that is understood about the relationship of gender and ethics, the better chance of education and training programs will bedesigned to improve ethical awareness and sensitivity. Prior studies have found that personal characteristics are an important aspect of cultural norms.This study analyzes the responses of students from eight different countries toquestions on their probable actions to an ethical dilemma.
TL;DR: This article found that respondents who indicated that religious interests were of high or moderate importance to them demonstrated a higher level of ethical judgment (less accepting of unethical decisions) than others in their evaluations.
Abstract: Research on the relationship between religious commitment and business ethics has produced widely varying results and made the impact of such commitment unclear. This study presents an empirical investigation based on a questionnaire survey of business managers and professionals in the United States yielding a database of 1234 respondents. Respondents evaluated the ethical acceptability of 16 business decisions. Findings varied with the way in which the religion variable was measured. Little relationship between religious commitment and ethical judgment was found when responses were compared on the basis of broad faith categories – Catholic, Protestant, Jewish, other religions, and no religion. However, respondents who indicated that religious interests were of high or moderate importance to them demonstrated a higher level of ethical judgment (less accepting of unethical decisions) than others in their evaluations. Evangelical Christians also showed a higher level of ethical judgment.
TL;DR: In this article, the authors explored whether there is a relationship between an individual's degree of religiousness and his or her corporate social responsiveness (CSR) orientation and found a significant relationship between degree of faithfulness and attitudes toward the economic and ethical components of CSR.
Abstract: The recent failures and scandals involving many large businesses have highlighted the importance of corporate social responsibility as a fundamental factor in the soundness of the free market system. The corporate social responsiveness orientation of business executives plays an important role in corporate decision making since managers make important decisions on behalf of their corporations. This paper explores whether there is a relationship between an individual's degree of religiousness and his or her corporate social responsiveness (CSR) orientation. The results of a survey of 473 business students found a significant relationship between degree of religiousness and attitudes toward the economic and ethical components of CSR. Some explanations as well as limited generalizations and implications are developed.
TL;DR: In this article, the authors address Internet related ethics and describe the ways in which young consumers misdemean on the Internet and their attitudes towards these, using a sample of 219 generation Y consumers, identified 24 aberrant behaviours which grouped into five factors; illegal, questionable activities, hacking related, human Internet trade and downloading.
Abstract: Aberrant consumer behaviour costs firms millions of pounds a year, and the Internet has provided young techno-literate consumers with a new medium to exploit businesses. This paper addresses Internet related ethics and describes the ways in which young consumers misdemean on the Internet and their attitudes towards these. Using a sample of 219 generation Y consumers, the study identified 24 aberrant behaviours which grouped into five factors; illegal, questionable activities, hacking related, human Internet trade and downloading. Those perceived as least wrong were; "Downloading movie and music files from the Internet for free". The consequences of these behaviours have implications for educators, consumer policy and marketers.
TL;DR: This article provided a comparative examination of conventional and socially responsible investors, with the aim of identifying the factors that lead investors to choose socially responsible investment products, especially in an Australian context, and found significant differences between socially responsible and conventional investors.
Abstract: Socially responsible investment is a rapidly emerging phenomenon within the field of personal investment. However, the factors that lead investors to choose socially responsible investment products are not well understood, especially in an Australian context. This study provides a comparative examination of conventional and socially responsible investors, with the aim of identifying such factors. A total of 55 conventional investors and 54 ethical investors participated in the study by completing mailed questionnaires about their investment and general behaviour and their attitudes and beliefs. Results indicated some important differences between socially responsible and conventional investors in their beliefs of the importance of ethical issues, their investment decision-making style, and their perceptions of moral intensity. These results support the notion that socially responsible investors differ in critical ways to conventional investors, and are discussed in terms of theoretical and practical implications.
TL;DR: In this article, the authors investigate the relationship of levels of perceived corruption on Japanese Foreign Direct Investment (FDI) in both industrialized and emerging economies and conclude that corruption serves to reduce FDI.
Abstract: In an effort to reduce risk and uncertainty, we hypothesize that investors avoid countries where high corruption exists. We investigate this issue by examining the relationship of levels of perceived corruption on Japanese Foreign Direct Investment (FDI) in both industrialized and emerging economies. The analysis presented utilizes a sample of 29,546 investments in 59 countries. Results suggest that in emerging nations, where comprehensive legal and regulatory frameworks do not exist to effectively curtail fraudulent activity, corruption serves to reduce FDI. Managers need to consider the level of perceived corruption in their assessment of any market prior to potential investment.
TL;DR: This paper examined the effects of guanxi on multiple social groups from the perspective of Chinese business people, and found that guanexi may result in positive as well as negative outcomes for focal actors and the aggregate.
Abstract: We present two studies that examine the effects of guanxi on multiple social groups from the perspective of Chinese business people. Study 1 (N = 203) tests the difference in perceived effects of six guanxi contextualizations. Study 2 (N = 195) examines the duality of guanxi as either helpful or harmful to social groups, depending on the contextualization. Findings suggest guanxi may result in positive as well as negative outcomes for focal actors and the aggregate.
TL;DR: In this paper, the authors argue that in their current forms, both mechanisms lack the power to create significant corporate change and argue that even if resolutions were successful, shareholder advocacy may still be ineffective if underlying economic opportunities remain.
Abstract: Objectives of socially responsible investment (SRI) are discussed with reference to the two main mechanisms of the SRI ‘movement’: shareholder advocacy and managed investments. We argue that in their current forms, both mechanisms lack the power to create significant corporate change. Shareholder advocacy has been largely unsuccessful to date. Even if resolutions were successful, shareholder advocacy may still be ineffective if underlying economic opportunities remain. Marketing material and investment prospectuses issued by socially responsible mutual funds (SRI funds) commonly contain the claim that, by affecting corporations' access to capital funding, SRI funds can change corporate practices. This paper makes a contribution by presenting the market share of SRI funds in the regions where they are most developed, being Europe, the U.S. and Australia, to show that this claim is unlikely to eventuate. SRI funds also commonly claim that they will outperform conventional active mutual funds. That the economic performances of both are similar might be explained by their similar portfolio compositions. The paper makes an innovation in the SRI literature by adopting a legitimacy framework to explain the continued presence of SRI funds. To achieve desired social and environmental outcomes, SRI funds are urged to address issues at a more systemic level. A suggested mechanism is the collective lobbying of corporations and, especially, governments.
TL;DR: The authors explored the growing array of initiatives aimed at creating corporate accountability with the goal of attempting to uncover the foundation principles that underlie them and create a "floor" below which practices are ethically questionable.
Abstract: This paper explores the growing array of initiatives aimed at creating corporate accountability with the goal of attempting to uncover the foundation principles that underlie them and create a “floor” below which practices are ethically questionable. Using the Global Compact's nine principles and the work of Transparency International as guides, foundational principles seem to exist in the areas of human rights, labor standards, environment, and anti-corruption initiatives.
TL;DR: In this article, the role of the investor relations function in the light of rising investor concern about corporate social responsibility (CSR) is analyzed based on interviews with IR professionals in twenty firms.
Abstract: Based on an inductive study we analyse the role of the investor relations (IR) function in the light of rising investor concern about corporate social responsibility (CSR). The study draws on interviews with IR professionals in twenty firms. It highlights their awareness of CSR issues as well as their assessment of concern among mainstream investors and socially responsible investors (SRIs). From these findings we develop suggestions on how the IR function is moving from a mere “broadcasting” mode regarding CSR issues into a much more interactive mode of relationship management.
TL;DR: In this paper, the authors examine employee, managerial, and ethics officer perceptions regarding their companies' codes of ethics and examine 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.
Abstract: 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 one’s performance review to compliance with the code.
TL;DR: This paper found that there are inconsistencies in the way the two terms are employed and the way they are defined, and the contrasting views regarding the connection between morality and ethics, and they identified the different ways the relationship between social responsibility and ethics has been represented.
Abstract: Students coming into a third-year business ethics course I teach are often confused about the use and meaning of the terms social responsibility and ethics. This motivated me to take a closer look at a sample of the management and business ethics literature for an explanation of their confusion. I found that there are inconsistencies in the way the two terms are employed and the way the concepts are defined. This paper identifies the different ways the relationship between social responsibility and ethics has been represented, the various uses of these two terms, and the contrasting views regarding the connection between morality and ethics. While this analysis does not resolve any difficult substantive questions, it does provide conceptual clarity as a necessary first step towards facilitating students’ critical engagement with the substantive issues.