Ethics Programs, Perceived Corporate Social Responsibility and Job Satisfaction

Companies offer ethics codes and training to increase employees’ ethical conduct. These programs can also enhance individual work attitudes because ethical organizations are typically valued. Socially responsible companies are likely viewed as ethical organizations and should therefore prompt similar employee job responses. Using survey information collected from 313 business professionals, this exploratory study proposed that perceived corporate social responsibility would mediate the positive relationships between ethics codes/training and job satisfaction. Results indicated that corporate social responsibility fully or partially mediated the positive associations between four ethics program variables and individual job satisfaction, suggesting that companies might better manage employees’ ethical perceptions and work attitudes with multiple policies, an approach endorsed in the ethics literature. Sean Valentine (D.B.A., Louisiana Tech University) is an Associate Professor of Management in the college of Business at the University of Wyoming. His teaching and research interests include business ethics, organizational behavior, and human resource management. He has published in journals such as Behavioral Research in Accounting, Journal of Business Research, Journal of Personal Selling & Sales Management, and Journal of Business Ethics. Gary Fleischman (Ph.D., Texas Tech University) is an Associate Professor and is the McGee Hearne and Paiz Faculty Scholar in Accounting at the University of Wyoming. His teaching expertise is in accounting and entrepreneurship and his research interests are in business ethics and behavioral business research. He has published in journals such as Behavioral Research in Accounting, The International Journal of Accounting and Journal of Business Ethics.     

Staff Attitudes to Talking Openly About Ethical Dilemmas: The Role of Business Ethics Conceptions and Trust

To ensure ethical employee behavior, companies often utilize several forms of mostly one-way communication such as codes of conduct. The extent to which these efforts, in addition to informing about the company stance on ethics, are able to positively influence behavior is disputed. In contrast, research on business ethics communication and behavior indicates a relatively clear, positive link between open workplace dialogue about ethical issues and ethical conduct. In this article, I therefore address the question: What influences employee attitudes to talking openly about ethical issues? Answers are proposed on the basis of focus group interviews with staff at the Denmark and Brazil affiliates of the global healthcare company Novo Nordisk. It was found that interest in discussing ethical issues was influenced by two main factors: employee conceptualizations of business ethics and the level of inter-collegial trust, credibility, and confidence. In this article, by examining these phenomena, I aim at providing insight that can both inform scholars in these fields as well as help managers in their attempts to promote open workplace dialogue about ethical issues.     

Executive attitudes,organizational size and ethical issues: Perspectives on a service industry

Responding to Randall and Gibson's (1990) call for more rigorous methodologies in empirically-based ethics research, this paper develops propositions — based on both previous ethics research as well as the larger organizational behavior literature — examining the impact of attitudes, leadership, presence/absence of ethical codes and organizational size on corporate ethical behavior. The results, which come from a mail survey of 149 companies in a major U.S. service industry, indicate that attitudes and organizational size are the best predictors of ethical behavior. Leadership and ethical codes contribute little to predicting ethical behavior. The paper concludes with an assessment of the relevant propositions, as well as a delineation of future research needs.Dr. Paul R. Murphy is currently Associate Professor of Business Logistics at John Carroll University. His previous publications have appeared in journals such as theTransportation Journal, Transportation Research, Journal of Business Logistics, Journal of Global Marketing, andIndustrial Marketing Management.Dr. Jonathan E. Smith is Associate Professor of Management and Marketing at John Carroll University. He teaches courses in organizational behavior and human resource management. His current research interests are in business ethics, leadership and organizational uses of information. Dr. Smith consults with organizations regarding management development, ethics and business/organizational communications.Dr. James M. Daley is Associate Dean at John Carroll University and is a consultant to business, government, and academia; his publications include one book and over 40 articles.     

Ethical Codes of Conduct and Organizational Context: A Study of the Relationship Between Codes of Conduct, Employee Behavior and Organizational Values

Codes of ethics are being increasingly adopted in organizations worldwide, yet their effects on employee perceptions and behavior have not been thoroughly addressed. This study used a sample of 613 management accountants drawn from the United States to study the relationship between corporate and professional codes of ethics and employee attitudes and behaviors. The presence of corporate codes of ethics was associated with less perceived wrongdoing in organizations, but not with an increased propensity to report observed unethical behavior. Further, organizations that adopted formal codes of ethics exhibited value orientations that went beyond financial performance to include responsibility to the commonweal. In contrast to corporate codes of ethics, professional codes of ethical conduct had no influence on perceived wrongdoing in organization nor these codes affect the propensity to report observed unethical activities.     

Corporate Codes of Conduct: The Effects of Code Content and Quality on Ethical Performance

Corporate codes of conduct are a practical corporate social responsibility (CSR) instrument commonly used to govern employee behavior and establish a socially responsible organizational culture. The effectiveness of these codes has been widely discussed on theoretical grounds and empirically tested in numerous previous reports that directly compare companies with and without codes of conduct. Empirical research has yielded inconsistent results that may be explained by multiple ancillary factors, including the quality of code content and implementation, which are excluded from analyses based solely on the presence or absence of codes. This study investigated the importance of code content in determining code effectiveness by examining the relationship between code of conduct quality and ethical performance. Companies maintaining high quality codes of conduct were significantly more represented among top CSR ranking systems for corporate citizenship, sustainability, ethical behavior, and public perception. Further, a significant relationship was observed between code quality and CSR performance, across a full range of ethical rankings. These findings suggest code quality may play a crucial role in the effectiveness of codes of conduct and their ability to transform organizational cultures. Future research efforts should transcend traditional comparisons based on the presence or absence of ethical codes and begin to examine the essential factors leading to the effective establishment of CSR policies and sustainable business practices in corporate culture.     

Ethical problems in public accounting: The view from the top

The authors empirically examine the nature and extent of ethical problems confronting senior level AICPA members (CPAs) and examine the effectiveness of partner actions and codes of ethics in reducing ethical problems. The results indicate that the most difficult ethical problems (frequency reported) were: client requests to alter tax returns and commit tax fraud, conflict of interest and independence, client requests to alter financial statements, personal-professional problems, and fee problems. Analysis of attitudes toward ethics in the accounting profession indicated that (1) CPAs perceive that opportunities exist in the accounting profession to engage in unethical behavior, (2) CPAs, in general, do not believe that unethical behavior leads to success, and (3) when top management (partners) reprimand unethical behavior, the ethical problems perceived by CPAs seem to be reduced. Don W. Finn is Associate Professor of Accounting at Texas Tech University in Lubbock, Texas. Professor Finn has published over twenty articles on business, accounting, and budgeting topics which have appeared in professional publications such as The Accounting Review, Omega, Oil & Gas Tax Quarterly, Cost and Management, and Managerial Planning. Dr. Finn also has co-authored two monographs on accounting topics. He is also active in the American Accounting Association and the National Association of Accountants. Professor Shelby Hunt is currently Distinguished Professor and Horn Professor of Research in the Marketing Department at Texas Tech University. He has published extensively in Journal of Marketing Research, Journal of Marketing, and many other prestigious journals. Recently, he was editor-in-chief for the Journal of Marketing. Professor Chonko has published in Journal of Marketing Research and other prestigious marketing journals. He is currently director of consumer research at Baylor University.     

Shareholder preferences concerning corporate ethical performance

This study surveyed investors to determine the extent to which they preferred ethical behavior to profits and their interest in having information about corporate ethical behavior reported in the corporate annual report. First, investors were asked to determine what penalties should be assessed against employees who engage in profitable, but unethical, behavior. Second, investors were asked about their interest in using the annual report to disclose the ethical performance of the corporation and company officials. Finally, investors were asked if they felt that ethics reports should be audited.The survey results indicate that many shareholders (42%) do not expect a high level of ethical behavior from corporate employees or officers. There is a significant amount of interest in disclosure of ethical issues (72%) and unwillingness to trust management to provide unbiased reports of ethical behavior. If such reports are included with the financial statements, 32 percent of the investors surveyed would prefer to have them audited to provide independent verification.Marc J. Epstein is currently a Visiting Professor at the Graduate School of Business Administration at Harvard University Ruth Ann McEwen, Associate Professor, and Roxanne M. Spindle, Assistant Professor, are members of the Accounting Department at Virginia Commonwealth University.     

A longitudinal survey of business school graduates' assessments of business ethics

A longitudinal survey of business graduates over a four-year period revealed stability over time in their assessments of proposals to improve business ethics except for significantly greater disapproval of government regulation. A comparison of graduates and executives indicate both favor developing general ethical business principles, business ethics courses, and codes of ethics, while disapproving government regulation and participation by religious leaders in ethical norms for business. The mean rankings by business graduates over time of factors influencing ethical conduct show significant declines in school-university training and significant increases for religious training and industry practices. Graduates and executives rank family training as the most important influence and school-university training as least important. The authors conclude that a more careful consideration be given to matching reform proposals and influence factors, and to increasing the depth of change efforts in individual business ethics. Peter Arlow is Associate Professor of Management at Youngstown State University, Youngstown, Ohio 44555, U.S.A., where he teaches MBA and undergraduate management courses. His previous publications have appeared in the Academy of Management Review, Business Horizons, Long-Range Planning, and other journals. Thomas A. Ulrich is Professor of Accounting at Loyola College in Maryland. He received his doctorate from Michigan State University and is a Certified Management Accountant as well as a Chartered Financial Analyst. Dr. Ulrich has published previously in the Journal of Accountancy, Management Accounting, The Internal Auditor, Journal of Commercial Bank Lending, Bankers Magazine, The Magazine of Bank Administration, Journal of Small Business Management and the American Journal of Small Business.     

Historical perspectives: Development of the codes of ethics in the legal,medical and accounting professions

Members of the legal, medical and accounting professions are guided in their professional behavior by their respective codes of ethics. These codes of ethics are not static. They are ever evolving, responding to forces that are exogenous and endogenous to the professions. Specifically, changes in the ethical codes are often due to economic and social events, governmental influence, and growth and change within the professions. This paper presents an historical analysis of the major events leading to changes in the legal, medical and accounting codes of ethics.Jeanne F. Backof is the Accounting Manager, McDonogh School, Baltimore, Maryland. She is a CPA in Maryland and serves as chairperson of the Maryland Association of CPA's Academic Relations and Members in Education Committees.Charles L. Martin Jr. is Professor of Accounting, Towson State University, Towson, Maryland. He is a CPA in Maryland and has published numerous articles focusing on accounting education, ethical issues in accounting, strategic planning by public accounting firms, and financial auditing.     

Ethical decision–making in business: focus on Mauritius

This paper explores management attitudes towards ethical issues in an attempt to shed some light on the determinants of ethical issue intensity in the context of business. A sample of business executives in Mauritius was surveyed in order to establish their ethical perceptions when exposed to potentially questionable business practices. The findings demonstrated the significant influence of factors associated with moral deliberations on strategies for ethical decision–making as compared with the impact of company policy and legal requirements. Participants revealed that, irrespective of codes of conduct, personal ethics predominate when it comes to making ethical choices. Some view the behaviour of management as a key determinant of ethical conduct. This trend differs from predictions in the literature. To date, research conducted in the developed world shows that employee perception of ethics of their superiors is a stronger predictor of behaviour than employees' personal ethical beliefs. This article focuses on Mauritius as an emerging economy, and looks at potential strategies for ethical decision–making, where business people do not necessarily operate under a specific code of conduct.     

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.     

Ethics in New Zealand organisations

The main objective of this study is to assess the state of business ethics in New Zealand organisations. The survey results suggest that top New Zealand companies give low priorities to ethical values. A number of suggestions have been put forward by the respondents to improve the corporate ethical environment. These include commitment of top management, written and published codes of ethics, comprehensive accounting standards and annual reporting and monitoring and an efficient legal and education system.Dr. Kazi Firoz Alam is a Senior Lecturer at the Department of Management Accounting, Massey University, New Zealand. He has been teaching Accounting to MBA students since 1984 and has supervised students in different areas of accounting, including tax ethics. He has written three books on Accounting and Taxation and has published articles on Corporate taxation and Company Financial Policy, The Influence of Tax Incentives on Investment Decisions and Factors affecting Investing Decisions. Some of the journals where his publications have appeared includeMetu Studies in Development, Managerial and Decision Economics andInvestment Analysts Journal.     

Attitudes of students and accounting practitioners concerning the ethical acceptability of earnings management

There are many ways that accountants and managers can influence the reported accounting results of their organizational units. When such influence is directed at changing the amount of reported earnings, it is known as earnings management. The purpose of this paper is to present the results of surveys of undergraduate students, MBA students, and practicing accountants concerning their attitudes on the ethical acceptability of earnings management. Analysis of the survey results reveals how the attitudes of the three groups differ and what variables are associated with these differences. Based on the analysis, the authors suggest changes in accounting education curriculum and ethics awareness programs in business which might increase students' and practitioners' sensitivity to the ethical ramifications of earnings management.Marilyn Fischer, is Assistant Professor of Philosophy at the University of Dayton in Dayton, Ohio. She specializes in workplace ethics, particularly in the nonprofit sector, and has published articles in business ethics, and social and political philosophy.Kenneth Rosenzweig, is Associate Professor of Accounting at the University of Dayton in Dayton, Ohio. He specializes in teaching management accounting, and has published articles in a wide variety of accounting areas.     

Importance of and approaches to incorporating ethics into the accounting classroom

Accounting educators are being called on to provide a greater emphasis on ethics education. This paper examines three important issues concerning ethics education in accounting. First, the question of whether ethics can indeed be taught is examined. Next, several innovative approaches are presented which have been used by accounting educators to integrate ethics into the classroom. Finally, results of a survey of students concerning their perspectives of ethical issues in accounting education, the accounting profession, and society at large are presented and discussed. Survey results reveal that students consider a lack of ethics damaging to the accounting profession and society. Results also indicate that accounting students are seeking ethical and moral direction.David S. Kerr is an Assistant Professor in the Department of Accounting at Texas A&M University. Dr. Kerr's research interests include ethics and behavioral decision making in accounting, group judgment/decision making, and audit planning.L. Murphy Smith, is a Price Waterhouse Teaching Excellence Professor of Accounting at Texas A&M University. His major research interests are information systems, auditing, and international issues.     

TQM: Just what the ethicist ordered

Total quality management (TQM) has become a basic business practice in organizations throughout the world. Implementation of TQM in these organizations has been driven by the desire to increase profits in the highly competitive business world. Total quality management techniques are designed to improve performance.Concurrently, organizations are striving to eradicate the concept that the termbusiness ethics is an oxymoron. Corporate codes of conduct have been developed to indicate the outside boundaries of acceptable organizational behavior and companies are espousing and enforcing the ideals contained within these codes.It is our contention that these two business trends are intimately related. TQM encompasses concepts and practices that are in the best organizational interest for all stakeholders. Additionally, TQM promotes activities that encourage high moral behavior. To support this notion, consider the following six important concepts that provide a foundation for TQM:Empowerment of employees Throughput that is prompt and without defects Helpfulness of managers and employees in task accomplishment Integrity of products, services and people Change in process and behavior Stakeholder emphasis (stockholders, customers, and equity)Viewed in the above form, TQM is simply good ethics put into practice. Cecily Raiborn is a Professor of Accounting at Loyola University. Her teaching and research interests include managerial accounting, cost accounting, business ethics, and international business. She has published articles in the Journal of Business Ethics,the Labor Law Journal,the Journal of Corporate Accounting and Financeand Management Accounting.She is the author of two accounting books: Cost Accountingand Managerial Accounting.She is heavily involved in professional and student organizations. Dinah Payne is an Associate Professor of Management at the University of New Orleans. Her teaching and research interests include business ethics, the legal environment of business, international business and international management: She has published articles in the Journal of Business Ethics,the Labor Law Journal,the Journal of Managerial Issuesand Management Accounting.She is the Secretary/Treasurer of the Southern Academy of Legal Studies in Business.     

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.     

Professional Ethical Standards,Corporate Social Responsibility,and the Perceived Role of Ethics and Social Responsibility

This study explored several proposed relationships among professional ethical standards, corporate social responsibility, and the perceived role of ethics and social responsibility. Data were collected from 313 business managers registered with a large professional research association with a mailed self-report questionnaire. Mediated regression analysis indicated that perceptions of corporate social responsibility partially mediated the positive relationship between perceived professional ethical standards and the believed importance of ethics and social responsibility. Perceptions of corporate social responsibility also fully mediated the negative relationship between perceived professional ethical standards and the subordination of ethics and social responsibility. The results suggested that professions should develop ethical standards to encourage social responsibility, since these actions are associated with enhanced employee ethical attitudes. Sean Valentine (D.B.A., Louisiana Tech University) is an Associate Professor of Management in the College of Business at the University of Wyoming. His research interests include ethical decision making, organizational culture, and job attitudes. His research has appeared in journals such as Human Relations, Behavioral Research in Accounting, Journal of Personal Selling & Sales Management, and Journal of Business Research. Gary Fleischman (Ph.D., Texas Tech University) is an Associate Professor of Accounting and the McGee Hearne and Paiz Faculty Scholar in Accounting at the University of Wyoming. His teaching expertise is in accounting and entrepreneurship, and his research interests are in business ethics and behavioral business research. He has published in journals such as Behavioral Research in Accounting, The International Journal of Accounting, and Journal of Business Ethics.     

Corporate codes of ethics

The majority of North American corporations awakened to the need for their own ethical guidelines during the late 1970s and early 1980s, even though modern corporations are subject to a surprising multiplicity of external codes of ethics or conduct. This paper provides an understanding of both internal and external codes through a discussion of the factors behind the development of the codes, an analysis of internal codes and an identification of problems with them. Leonard J. Brooks, Jr. is a Professor of Accounting in the Faculty of Management of the University of Toronto. His involvement with the field of corporate ethics includes participation in the social audit program of The United Church of Canada; authorship of a monograph, Canadian Corporate Social Performance; Vice-Chairmanship of the Canadian Centre for Ethics and Corporate Policy; and consultant to EthicScan Canada Ltd., a newly formed gatherer of corporate social performance information.     

The internal disclosure policies of private-sector employers: An initial look at their relationship to employee whistleblowing

Whistleblowers have usually been treated as outcasts by private-sector employers. But legal, ethical, and practical considerations increasingly compel companies to encourage employees to disclose suspected illegal and/or unethical activities throughinternal communication channels. Internal disclosure policies/procedures (IDPP's) have been recommended as one way to encourage such communication.This study examined the relationship between IDPP's and employee whistleblowing among private-sector employers. Almost 300 human resources executives provided data concerning their organizations' experiences.Executives in companies with IDPP's reported a significant increase in the number of internal disclosures by employees after implementation. Respondents also reported a significant decrease in the number of external disclosures after implementation of their IDPP. When the level of employee disclosures in companies with IDPP's was compared to those in companies without IDPP's, the overall level of internal disclosures was significantly higher among employers who had the internal policies/procedures. Respondents also reported a marginally significant association between the responsiveness of management to employee-voiced concerns and the level of internal disclosures by employees. Possible interpretations of these results are discussed, and their implications for private-sector employers are addressed.Tim Barnett is an Assistant Professor of Management at Louisiana Tech University. His current research interests include ethical issues in human resources management and ethical decision making. His work has appeared in various journals, including theJournal of Business Research, theJournal of Business Communication, and theJournal of Business Ethics.Dan Cochran is a Professor of Management at Mississippi State University, where he is the Arthur Anderson Business Ethics Coordinator. He has published in numerous national journals and conducts training programs for organizations in managerial skill areas to include ethical decision making. He is past president of the Southern Management Association.G. Stephen Taylor is Associate Professor of Management at Mississippi State University, with emphasis in human resource management. His research and publication interests are in the areas of ethics and HRM, ethical implications of computer applications to business, and compensation management.     

Corporate Codes of Ethics,National Culture,and Earnings Discretion: International Evidence

This study examines the role of codes of ethics in reducing the extent to which managers act opportunistically in reporting earnings. Corporate codes of ethics, by clarifying the boundaries of ethical corporate behaviors and making relevant social norms more salient, have the potential to deter managers from engaging in opportunistic financial reporting practices. In a sample of international companies, we find that the quality of corporate codes of ethics is associated with higher earnings quality, i.e., lower discretionary accruals. Our results are confirmed for a subsample of firms more likely to be engaging in opportunistic reporting behavior, i.e., firms that just meet or beat analysts’ forecasts. Further, codes of ethics play a greater role in reducing earnings management for firms in countries with weaker investor protection mechanisms. Our results suggest that corporate codes of ethics can be a viable alternative to country-level investor protection mechanisms in curbing aggressive reporting behaviors.