The Effect of Country and Culture on Perceptions of Appropriate Ethical Actions Prescribed by Codes of Conduct: A Western European Perspective among Accountants

Recognizing the growing interdependence of the European Union and the importance of codes of conduct in companies’ operations, this research examines the effect of a country’s culture on the implementation of a code of conduct in a European context. We examine whether the perceptions of an activity’s ethicality relates to elements found in company codes of conduct vary by country or according to Hofstede’s (1980, Culture’s Consequences (Sage Publications, Beverly Hills, CA)) cultural constructs of: Uncertainty Avoidance, Masculinity/Femininity, Individualism, and Power Distance. The 294 individuals, who participated in our study, were from 8 Western European countries. Their responses to our 13 scenarios indicate that differences in the perceptions of ethicality associate primarily with the participants’ country as opposed to their employer (i.e., accounting firm), employment level, or gender. The evidence also indicates that these country differences associate with Hofstede constructs of Individualism and Masculinity.     

Ethics Codes and Sales Professionals' Perceptions of Their Organizations' Ethical Values

Most large companies and many smaller ones have adopted ethics codes, but the evidence is mixed as to whether they have a positive impact on the behavior of employees. We suggest that one way that ethics codes could contribute to ethical behavior is by influencing the perceptions that employees have about the ethical values of organizations. We examine whether a group of sales professionals in organizations with ethics codes perceive that their organizational context is more supportive of ethical behavior than sales professionals in companies without codes. After accounting for the effect of several covariates, our results indicated that sales professionals employed in organizations with codes of ethics perceived their work environments to have more positive ethical values than did other sales professionals.     

Social Responsibility and the Marketing Educator: A Focus on Stakeholders, Ethical Theories, and Related Codes of Ethics

This paper is a commentary on the discussion document by M. Joseph Sirgy (1996) which attempts to develop a marketing educator code of ethics. The authors center their discussion around the concepts of "Social responsibilities in relation to certain publics" and "Social responsibilities in relation to certain actions", as presented in the Sirgy paper, "Certain Publics" issues and "Certain Actions" issues are both examined in light of each of the stakeholder groups, as well as in terms of several ethical theories. Finally, the proposed Academy of Marketing Science marketing educator code of ethics is compared to the ethics codes of other marketing organizations.     

The Role of NGOs in CSR: Mutual Perceptions Among Stakeholders

This paper explores the role of NGOs in corporate social responsibility (CSR) through an analysis of various stakeholders’ perceptions and of NGOs’ self-perceptions. In the course of qualitative research based in Spain, we found that the perceptions of the role of NGOs fall into four categories: recognition of NGOs as drivers of CSR; concerns about their legitimacy; difficulties in the mutual understanding between NGOs and trade unions; the self-confidence of NGOs as important players in CSR. Each of these categories comprises the various elements analysed in the paper. We found some discrepancies between the perception of others and the self-perceptions of NGOs, which explains why their role is often controversial. The research confirms that secondary stakeholders, such as NGOs, are key players in CSR, but their role is still regarded as controversial and their legitimacy contested. Deep-seated misunderstandings and mistrust among various stakeholder groups (particularly between NGOs and trade unions) are a possible hurdle to the integration of social and environmental concerns in business activity and corporate governance in Spain. The study finds that business managers need to take a less firm-centric and a more contextual approach, and look more closely into the relationship with and among stakeholder groups. For NGO managers, the research shows that NGOs are not always aware of the stereotypes they generate and the problems caused mainly by what is seen as ambivalent roles: critic and counsellor, accuser and judge, idealist and fund raiser.

Case Studies of Ethics Scandals: Effects on Ethical Perceptions of Finance Students

Ethics instructors often use cases to help students understand ethics within a corporate context, but we need to know more about the impact a case-based pedagogy has on students’ ability to make ethical decisions. We used a pre- and post-test methodology to assess the effect of using cases to teach ethics in a finance course. We also wanted to determine whether recent corporate ethics scandals might have impacted students’ perceptions of the importance and prevalence of ethics in business, so we used in-depth case studies of several of the major scandals (e.g., Enron, Tyco, Adelphia). Our results are somewhat surprising since studying ethics scandals positively impacts students’ ethical decision making and their perceptions of the ethics of businesspeople.     

The Role of Professional Codes in Regarding Ethical Conduct

This paper investigates the regulation of ethical behavior of professionals. Ethical perceptions of South African professionals operating in the business community (specifically accountants, lawyers and engineers) concerning their need for and awareness of professional codes, and the frequency and acceptability of peer contravention of such codes were sought. The existence of conflict between corporate codes and professional codes was also investigated. Results, based on 217 replies, indicated that the professionals believe that codes are necessary and are relatively aware of the contents of such codes. Despite these ethical tendencies, respondents (particularly lawyers) believe that their peers contravene their professional codes relatively often. No significant differences in ethical tendencies between professionals consulting to and those working in business were found. Many respondents were regulated by more than one code of ethics, but few experienced conflict between such codes. In the events of conflict occurring professionals chose to adhere to their professional code above others.     

The Moderating Effect of Individuals' Perceptions of Ethical Work Climate on Ethical Judgments and Behavioral Intentions

Dimensions of the ethical work climate, as conceptualized by Victor and Cullen (1988), are potentially important influences on individual ethical decision-making in the organizational context. The present study examined the direct and indirect effects of individuals' perceptions of work climate on their ethical judgments and behavioral intentions regarding an ethical dilemma. A national sample of marketers was surveyed in a scenario-based research study. The results indicated that, although perceived climate dimensions did not have a direct effect on behavioral intentions, there were significant moderating effects. Climates perceived as emphasizing social responsibility and rules/codes moderated the individual ethical judgment-behavioral intentions relationship such that individuals were less likely to say that they would engage in a questionable selling practice even when they themselves did not believe the practice to be unethical. Respondents were somewhat more likely to form intentions consistent with their judgment that the questionable practice was morally acceptable when the ethical climate was characterized by an emphasis on team/friendship.     

Balancing Ethical Responsibility among Multiple Organizational Stakeholders: The Islamic Perspective

In spite of a renewed interest in the relationship between spirituality and managerial thinking, the literature covering the link between Islam and management has been sparse – especially in the area of ethics. One potential reason may be the cultural diversity of nearly 1.3 billion Muslims globally. Yet, one common element binding Muslim individuals and countries is normative Islam. Using all four sources of this religion’s teachings, we outline the parameters of an Islamic model of normative business ethics. We explain how this ethics model seeks to balance the needs of multiple stakeholders, and discuss its enforcement mechanisms. This Islamic approach to business ethics is centered around criteria that are in common with stakeholder theory such as justice and balance, and includes unique additional criteria such as trust and benevolence.     

Accounting Student Ethical Perceptions: An Analysis of Training and Gender Effects

This study examined accounting student responses to academic and accounting/business ethical vignettes and examined if gender or formal training in ethics affected their responses. The study also controlled for a student's tendency to respond in a socially desirable manner by including a social desirability response bias instrument as part of the research materials.The results indicate no general differences in responses between the students with and without formal ethical training, or between male and female students. However, comparisons between the academic and accounting/business vignettes revealed that although students perceived the unethical actions discussed in the cases similarly, they indicated they would be more likely to engage in the unethical actions in the accounting/business cases compared to the academic dilemmas.     

Practitioners' Perceptions of Ethical Standards in Marketing

Public interest in ethics is becoming increasingly important to marketing practitioners and the marketing profession. Attitudes among practitioners vary about the role of ethnics in marketing today; ethical considerations in marketing practices; and the role of organizational or corporate codes of ethics. This study reports the results of a survey conducted to investigate how marketing practitioners feel about these issues.     

Codes of Ethical Conduct: A Bottom-Up Approach

Developing and implementing a meaningful code of conduct by managers or consultants may require a change in orientation that modifies the way these precepts are determined. The position advocated herein is for a different approach to understanding and organizing the guiding parameters of the firm that requires individual reflection and empowerment of the entire organization to advance their shared values. The processes involved are discussed using four discrete stages that move from the personal to the work team and to the unit to the full company, followed by the board of directors’ evaluation. The hoped-for end product is dynamic, employee-driven, codes of conduct that recognize the systemic and far-reaching impact of organizational activities across internal and external stakeholders. Operational details for and some issues associated with its implementation are also provided.     

Codes of Ethics as Signals for Ethical Behavior

This study investigated effects of codes of ethics on perceptions of ethical behavior. Respondents from companies with codes of ethics (n = 465) rated role set members (top management, supervisors, peers, subordinates, self) as more ethical and felt more encouraged and supported for ethical behavior than respondents from companies without codes (n = 301). Key aspects of the organizational climate, such as supportiveness for ethical behavior, freedom to act ethically, and satisfaction with the outcome of ethical problems were impacted by the presence of an ethics code. The mere presence of a code of ethics appears to have a positive impact on perceptions of ethical behavior in organizations, even when respondents cannot recall specific content of the code.     

The Influence of Religiosity on Consumer Ethical Judgments and Responses Toward Sexual Appeals

This research explores the influence of religiosity on consumer perception of, and response toward, sexual appeals. The first study (survey, national sample; n = 423) examines the relationship between religiosity and consumer response toward sexual appeals using causal modeling. Study 1 finds that high intrinsic religiosity consumers exhibit more adverse ethical judgments toward the company’s use of sexual appeals and these judgments, in turn, result in inferior attitudes and purchase intent toward the advertised brand. To confirm and expand on these findings, the second study (experiment, young adult sample; n = 216) examines the influence of intrinsic religiosity on consumer response toward both sexual and nonsexual appeals. The results show that sexual appeals elicit inferior (superior) ethical judgments, attitudes, and purchase intent among consumers high (low) in intrinsic religiosity. In contrast, nonsexual appeals elicit (un)favorable responses from consumers who are (low) high in intrinsic religiosity.     

Stakeholder Multiplicity: Toward an Understanding of the Interactions between Stakeholders

While stakeholder theory has traditionally considered organization’s interactions with stakeholders in terms of independent, dyadic relationships, recent scholarship has pointed to the fact that organizations exist within a complex network of intertwining relationships [e.g., Rowley, T. J.: 1997, The Academy of Management Review 22(4), 887–910]. However, further theoretical and empirical development of the interactions between stakeholders has been lacking. In this paper, we develop a framework for understanding and measuring the effects upon the organization of competing, complementary and cooperative stakeholder interactions, which we refer to as stakeholder multiplicity. We draw upon three forms of fit (i.e. fit as matching, fit as moderation, and fit as gestalts; Venkatraman, N.: 1989) to develop a framework for understanding stakeholder multiplicity based upon the direction, strength, and synergies of the interacting claims. Additionally, we draw upon the theory of stakeholder identification and salience of Mitchell et al. (1997), which we argue provides a more relevant and significantly more illustrative explanation of the nature and effects of stakeholder interactions upon the organization than the network approach of Rowley (1997). Furthermore, we ground our framework through reference to three stakeholder groups (i.e. governments, customers, and employees) and the stakeholder issue of concern for the natural environment. We propose a hierarchy of the multiplicity strength of influence of these three stakeholder groups. Potential measurement and implications are discussed.     

Effective Corporate Codes of Ethics: Perceptions of Code Users

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.     

Global Business Citizenship and Voluntary Codes of Ethical Conduct

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.     

The Effects of Escalating Commitment on Ethical Decision-Making

Although scholars have invoked the escalation framework as a means of explaining the occurrence of numerous organizationally undesirable behaviors on the part of decision makers, to date no empirical research on the potential influences of escalating commitment on the likelihood of unethical behavior at the individual level of analysis has been reported in either the escalation or the ethical decision-making literatures. Thus, the main purpose of this project is to provide a theoretical foundation and empirical support for the contention that escalating commitment situations can induce unethical behavior in decision makers. An experimental research design utilizing a computerized investment task was administered to 155 undergraduate business majors as a means of assessing the hypotheses presented here. Results from a hierarchical logistic regression analysis found strong support for the contention that exposure to an escalation situation increases the likelihood of unethical behavior on the part of decision makers. Further, results also supported previous ethical decision-making findings by confirming the effects of locus of control (LOC) on ethical behavior. Specifically, the data indicated that individuals with an external LOC orientation were significantly more likely to select the unethical option than were individuals with an internal LOC orientation. Interestingly, support was not found for the effects of Machiavellianism or gender on ethical decision-making.     

Student Ethical Perceptions and Ethical Action Propensities: An Analysis of Situation Familiarity

Recently McCuddy and Peery (1996) have suggested that business students may not respond the same way to unfamiliar business ethical dilemmas as they would to more familiar academic ethical dilemmas. The purpose of this study was to present the same students with both unfamiliar business dilemmas as well as possibly more familiar academic dilemmas in order to examine this issue.Findings of the study revealed that students did not exhibit different perceptions of the unethical actions performed in the academic and accounting/business ethical vignettes. However, the students indicated that both they and their peers would be more likely to act unethically to resolve the dilemmas in the accounting/business cases than in the academic cases. This finding is troubling in that it suggests that students either feel less compelled to act ethically in business, or that they perceive that ethical standards in the business world are generally low when compared to their current educational environment. In addition, the students in the study maintained the same halo effect (i.e., the difference between an individual's perception of their likelihood of performing an unethical action compared to their perception of their peers' likelihood to perform the same unethical action) across the two types of ethical dilemma.     

Attitudes of Business and Non-business Students Toward Corporate Actions

This study examined differences in the attitudes of business and non-business students toward economic, legal, ethical, and discretionary corporate actions. The results from a sample of two hundred and forty-two (242) university students indicated differences across three background variables (college major, gender, and race).