Corporate ethics statements: Current status and future prospects

This paper reports on a study of large U.S. based corporations concerning the status of formal ethics statements. Almost all responding firms (91%) have promulgated a formal code of ethics while one-half have published values statements and about one-third have a corporate credo. Analysis of these statements concentrated on to whom they are communicated; whether codes of ethics contain information pertinent to the industry, include sanctions for violations and provide specific guidance regarding gifts. Conclusions and implications for managers and researchers are drawn.Patrick E. Murphy is Professor and Chairman of the Department of Marketing at the University of Notre Dame. He is coauthor (with G. R. Laczniak) ofEthical Marketing Decisions: The Higher Road, Allyn & Bacon, 1993. His research interests focus on ethical and public policy issues facing marketing and business. He serves on the editorial review boards of several marketing and ethics journals.     

Business Ethics in a Transition Economy: Will the Next Russian Generation be any Better?

This study investigated students’ perceptions of ethical organizational climates, attitudes towards ethical issues, and the perceived relationship between ethical behavior and success in business organizations. Comparisons were made between the attitudes of these future managers with previously published studies of Russian managers’ attitudes. A survey of 100 business students in three Moscow universities showed that their attitudes toward ethical behavior were more negative than those of Russian managers. No significant differences were found in the perceptions or attitudes of students who had attended an ethics course and those that did not. The implications for both managers and researchers were reported.     

Designing and Delivering Business Ethics Teaching and Learning

The recent corporate scandals in the United States have caused a renewed interest and focus on teaching business ethics. Business schools and their faculties are reexamining the teaching of business ethics and are reassessing their responsibilities to produce honest and truthful managers who live lives of integrity and ethical accountability. The authors recognize that no agreement exists among business schools and their faculties regarding what should be the content and pedagogy of a course in business ethics. However, the authors hold that regardless of one’s biases regarding the content and pedagogy, the effective teaching of business ethics requires that the instructor in designing and delivering a business ethics course needs to focus particular attention on four principal questions: (1) what are the objectives or targeted learning outcomes of the course? (2) what kind of learning environment should be created? (3) what learning processes need to be employed to achieve the goals? and (4) what are the roles of the participants in the learning experience? The answers to these questions provide the foundations for any business ethics course. The answers are major determinants of the impact of a business ethics course on the thinking of students and the views on the ethical and professional accountabilities and responsibilities of managers in the workplace.     

Corporate Social Performance, Stakeholder Orientation, and Organizational Moral Development

This article begins with an explanation of how moral development for organizations has parallels to Kohlberg's categorization of the levels of individual moral development. Then the levels of organizational moral development are integrated into the literature on corporate social performance by relating them to different stakeholder orientations. Finally, the authors propose a model of organizational moral development that emphasizes the role of top management in creating organizational processes that shape the organizational and institutional components of corporate social performance. This article represents one approach to linking the distinct streams of business ethics and business-and-society research into a more complete understanding of how managers and firms address complex ethical and social issues.     

Fostering ethical marketing decisions

This paper begins by examining several potentially unethical recent marketing practices. Since most marketing managers face ethical dilemmas during their careers, it is essential to study the moral consequences of these decisions. A typology of ways that managers might confront ethical issues is proposed. The significant organizational, personal and societal costs emanting from unethical behavior are also discussed. Both relatively simple frameworks and more comprehensive models for evaluating ethical decisions in marketing are summarized. Finally, the fact that organizational commitment to fostering ethical marketing decisions can be accomplished by top management leadership, codes of ethics, ethics seminars/programs and ethical audits is examined. Gene R. Laczniak is Professor of Business at Marquette University. He has written extensively in the field of marketing and business ethics. He is coeditor of Marketing Ethics: Guidelines for Managers, Lexington Books, 1985 and coauthor of The Higher Road: A Path to Ethical Marketing Decisions, Allyn & Bacon, 1992 (both with P. E. Murphy). Professor Laczniak's research interests focus on the social and ethical influence of marketing activities on society as well as marketing strategy. Patrick E. Murphy is Professor of Marketing in the College of Business Administration at the University of Notre Dame. His articles on business and marketing ethics have appeared in several periodicals. He currently serves as editor of Journal of Public Policy & Marketing and is coeditor of Marketing and Advertising Regulation: The Federal Trade Commission in the 1990s, Notre Dame Press, 1990 (with W. L. Wilkie). His research interests focus on the ethical and public policy issues facing business.This article is based on material forthcoming in The Higher Road: A Path to Ethical Marketing Decisions, Allyn & Bacon, 1992.     

The Role of Business Schools in Ethics Education in Iceland: The Managers’ Perspective

This article explores managers’ views on various ways in which business schools can contribute to providing solid ethics education to their students, who will ultimately become the next generation of business leaders. One thousand top level managers of Icelandic firms were approached and asked a number of questions aimed at establishing their view on the relationship between ethics education and the role of business schools in forming and developing business ethics education. Icelandic businesses were badly hurt by the 2008 crisis, and therefore Iceland provides an interesting foundation for an empirical study of this sort as the aftermath of the crisis has encouraged managers to consciously reflect on the way their business was and should be conducted. Based on the results of the survey, a few main themes have developed. First, it appears that according to practicing managers, business schools should not be held responsible for employees’ unethical behavior. Nevertheless, managers believe that business schools should assist future employees in understanding ethics by including business ethics in teaching curricula. Second, managers believe that the workplace is not where ethics are learned, while also insisting that former students should already have strong ethical standards when entering the workplace. Third, managers call for business schools not only to contribute more to influencing students’ ethical standards, but also to reshape the knowledge and capabilities of practicing managers through re-training and continuous education. Based on the results of the study, the article also offers some recommendations on how to begin reformulating the approach to business ethics education in Iceland, and perhaps elsewhere.     

Business Ethics in Turkey: An Empirical Investigation with Special Emphasis on Gender

In today's complex business world, the question of business ethics is increasingly gaining importance as managers and employees face numerous ethical dilemmas in their jobs. The ethical climate in the Turkish business environment is also at a critical stage, and the business community as a whole is troubled by ethical problems. This study attempts to determine the effect of individual, managerial and organizational factors on the ethical judgments of Turkish managers, and to evaluate the ethical perceptions of these managers. The findings of this study reveal that the ethics score, the measure of ethical judgment, of Turkish managers differs significantly only with respect to gender and that female managers have higher ethics score than male managers. Other individual, managerial and organizational factors considered in this study do not have any significant effect on the ethical judgments of the managers. A comparative analysis between female and male managers in terms of their ranking of the eleven ethical business scenarios, ranking of the sixteen unethical acts, ranking of the factors influencing managers to engage in unethical practices, and ranking of the various parties to whom a company is socially responsible enables the researchers to enlighten the subject of business ethics in Turkey.     

How do managers think about market economies and morality? Empirical enquiries into business-ethical thinking patterns

How do managers think about the relationship between the pursuit of economic success and ethical demands? This paper presents the main results of a qualitative-empirical study (Ulrich and Thielemann, 1992). The range of thinking patterns displayed by Swiss managers in this field of tension is elucidated and typologized. The results are then compared with those yielded by other studies on managerial ethics. Although the comparisons reveal essential parallels, the findings of previous investigations are interpreted in a considerably different manner. In particular it is shown that, on the strength of a systematic conception of the fundamental problem of business ethics, the frequently heard assertion that the vast majority of managers are ethical opportunists must be revised. The internationally prevailing thinking pattern among managers does not prove to be ethical opportunism or even cynicism buteconomism, i.e. theethical conviction that economically “appropriate” actionin itself is ethically good as such.     

Personal Ethics and Business Ethics: The Ethical Attitudes of Owner/ Managers of Small Business

To date, the study of business ethics has been largely the study of the ethics of large companies. This paper is concerned with owner/managers of small firms and the link between the personal ethics of the owner/manager and his or her attitude to ethical problems in business. By using active membership of an organisation with an overt ethical dimension (for example, a church) as a surrogate for personal ethics the research provides some, though not unequivocal, support for the models of Trevino and others that suggest a link between personal ethics and business ethics.     

Cultural and Organizational Antecedents of <Emphasis Type="Italic">Guanxi</Emphasis>: The Chinese Cases

Being different from the Western concept of “relationship,” Chinese concept of “relationship,” that is, guanxi profoundly influences Chinese society in commercial activities, business ethics, and organizational behaviors. Moreover, firms can develop their networks of guanxi to gain competitive advantages. Highlighting the cultural and organizational antecedents of guanxi, namely Confucianism and organizational ethical climate, this study examines the influence of these two antecedents on guanxi and makes comparisons of guanxi, Confucianism and organizational ethical climate between Taiwan and Mainland China. The results show that Taiwan, where preserves more Confucian culture, tends to put much emphasis on guanxi than Mainland China, especially with respect to mianzi. Concerning ethical climate, Taiwan tends to have instrumental, and law and code ethical climate.     

Teaching Managers to Respond Ethically to Organizational Crises: an inquiry into the case method

Many managers now routinely receive training in business ethics using the case method. However the efficacy of this training has not been studied. Organizational crises, in the form of cases which present managers with ethical dilemmas, are commonly used to illustrate principles in business ethics courses. As illustrated in the classroom, these organizational ethical crises often result in severe financial consequences for the organization involved such as litigation or bankruptcy. The present study assessed the potential of the case method for teaching managers to respond ethically to organizational crisis. The author also assessed the role of organizational and ideographic factors in determining which managers would choose to act. Managers who had received classroom training in ethical case analysis were compared to those who had not. The majority in both groups of managers chose to take action when confronted with ethical dilemmas. However, managers who had received ethical training were more likely to act in some ethical situations than managers who had not. The ethical culture of an organization and the gender of the managers was also found to influence managerial action in response to ethical dilemmas.     

Organizational Ethics,Individual Ethics,and Ethical Intentions in International Decision-Making

This study explores the impact of both individual ethics (IE) and organizational ethics (OE) on ethical intention (EI). Ethical intention, or the individual’s intention to engage in ethical behavior, is useful as a dependent variable because it relates to behavior which can be an expression of values, but also is influenced by organizational and societal variables. The focus is on EI in international business decision-making, since the international context provides great latitude in making ethical decisions. Results demonstrate that both IE and OE influence EI. Ethical congruence is also discussed as a positive influence. Younger managers are more influenced by OE than older managers. The findings call for creating governance mechanisms to enhance ethical congruence, thereby increasing the likelihood of managers making ethical choices in organizational decision-making.     

Ethics from the top: top management and ethical business

Codes of ethics and conduct typically demand the highest standard of ethical behaviour from every single employee. This implies a democratic or lobbyist understanding of ethics in business. The contrasting view would argue that business ethics is an elitist undertaking that can only be instigated from the top, by managing directors or owner managers. This article looks at three types of ethical businesses, three types of approaches to ethical problem-solving, and three possible incentives for ethical business to see which of the above is more convincing. It will be argued that the impulse for value-driven business has to come from the top. Only top management and owner managers have the opportunity to foster major change in business practice.     

Toward a Model for International Business Ethics

This paper briefly examines the topic of business ethics and attempts to suggest a code of ethics for multinational firms. While most companies have basic policies on employee integrity, confidentiality and sexual harassment, relatively few have established policies regarding bribery, exploitive child labor, human rights violations and other issues they may encounter in the global market place (Drake, 1998). Until recently, very few companies had truly global operations. Consequently little attention was paid to the issue of ethical guidelines in a global context. Recent changes in international markets have led to an explosion of corporations with global operations, and the need for a global code of ethics has grown commensurately. In this paper we explore the issue of global business ethics and attempt to provide a framework for future discussion. We also examine some of the unique difficulties surrounding the development of any set of global business standards. Key among these difficulties is the issue of competing ethical values in home and host countries.     

Is small business better than big business for marketing managers?

This survey of marketing managers compares small business firms with large ones in relation to explicit and implicit ethics institutionalization, quality of work life (QWL), job satisfaction, esprit de corps, and organizational commitment. The results reveal that large firms tend to have a higher degree of explicit ethics institutionalization than smaller firms but not in relation to implicit ethics institutionalization. The results also reveal that marketing managers in small firms report higher levels of job satisfaction, esprit de corps, and organizational commitment compared to marketing managers in large firms. The study findings also show that marketing managers in small firms report higher levels of overall QWL, particularly higher-order QWL than managers in large firms.     

Does size matter? The state of the art in small business ethics

In this paper the exclusive focus on large firms in the field of business ethics is challenged. Some of the idiosyncrasies of small firms are explained, and links are made between these and potential ethical issues. A review of the existing literature on ethics in small firms demonstrates the lack of appropriate research, so that to date we can draw no firm conclusions in relation to ethics in the small firm. Recommendations are made as to the way forward for small firm business ethics research. Questions for investigation are suggested using micro, meso and macro perspectives. Much exploratory work needs to be done to lay the groundwork for this important area of social and commercial research in the future.     

The role of ethics and social responsibility in achieving organizational effectiveness: Students versus managers

This paper investigates the differences in perceptions between business students and service-sector managers regarding the role that ethics and social responsibility serve in determining organizational effectiveness. An organizational effectiveness instrument containing business ethics and social responsibility items served as a questionnaire for a sample of 151 senior business undergraduates and 53 service-sector managers. The results indicated that while students acting as managers rate some social responsibility issues as more important than do managers, they also rate ethical conduct and a few dimensions of social responsibility lower than do managers. The findings have direct implications for both business practitioners and educators.Kenneth L. Kraft received his D.B.A. from the University of Maryland in 1982 and is currently an Associate Professor of Management at Old Dominion University in Norfolk, VA. His recent papers explore the relationships between strategy, structure, social responsibility, and organizational effectiveness in a variety of settings. Anusorn Singhapakdi is Assistant Professor of Marketing at Old Dominion University. His current research interests center on marketing/business ethics and selected public policy issues in marketing. He has published in Journal of Macromarketing, Journal of the Academy of Marketing Science, International Journal of Value Based Managementas well as other journals and proceedings.     

The Link Between Organizational Ethics and Job Satisfaction: A Study of Managers in Singapore

Based on a survey of 237 managers in Singapore, three measures of organizational ethics (namely, top management support for ethical behavior, the organization's ethical climate, and the association between ethical behavior and career success) are found to be associated with job satisfaction. The link between organizational ethics and job satisfaction is argued from Viswesvaran et al.'s (1998) organizational justice and cognitive dissonance theories. The findings imply that organizational leaders can favorably influence organizational outcomes by engaging in, supporting and rewarding ethical behavior.     

Innovative ethics officers as drivers of effective ethics programs: An empirical study in the Netherlands

Ethical misconduct and violations seriously harm individuals and organizations and lead to massive fines or the dismissal of employees and CEOs. Many firms have implemented ethics programs to prevent unethical behavior but these are often ineffective and take a traditional approach. Ethics officers are often responsible for running and developing ethics programs, in collaboration with other departments. They can, therefore, play a key role in improving ethics program effectiveness. We postulate that ethics officers need to adopt a more innovative approach in order to achieve ethical behavior among employees and managers, and that such an innovative approach requires certain personality traits. This study investigates how ethics officers’ personality traits and innovative work behaviors relate to the effectiveness of ethics programs and normative ethical behavior through an online questionnaire conducted among 110 ethics officers in large Dutch organizations. Structural equations modeling showed that innovative work behavior mediated the relationship between ethics officers’ openness to experience and ethics program effectiveness which, in turn, is related to more normative ethical behavior. Future research must examine the (partial) mediation effects, including other characteristics of ethics officers in relation to ethics program effectiveness and ethical behaviors at work, and replicate the study multi‐nationally.     

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.