Cultural Values and International Differences in Business Ethics

We analyze ethical policies of firms in industrialized countries and try to find out whether culture is a factor that plays a significant role in explaining country differences. We look into the firm’s human rights policy, its governance of bribery and corruption, and the comprehensiveness, implementation and communication of its codes of ethics. We use a dataset on ethical policies of almost 2,700 firms in 24 countries. We find that there are significant differences among ethical policies of firms headquartered in different countries. When we associate these ethical policies with Hofstede’s cultural indicators, we find that individualism and uncertainty avoidance are positively associated with a firm’s ethical policies, whereas masculinity and power distance are negatively related to these policies. Bert Scholtens received his Ph.D. at the Universtiy of Amsterdam. Since 1999 he has been working at the Department of Finance of the University of Groningen, the Netherlands. His research particularly looks into the interaction between financial institutions and corporate social responsibility. He has published in, among others, Ecological Economics, Journal of Banking and Finance, Finance Letters, Journal of Investing, Sustainable Development, and Journal of Business Ethics. Lammertjan Dam is a Ph.D. student at the Universtiy of Groningen. He expects to defend his thesis about the integration of corporate social responsibility in economic valuation in Summer 2007.     

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.     

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.     

‘The Impact of Corporate Ethical Values and Enforcement of Ethical Codes on the Perceived Importance of Ethics in Business: A Comparison of U.S. and Spanish Managers’

This two country study examines the effect of corporate ethical values and enforcement of a code of ethics on perceptions of the role of ethics in the overall success of the firm. Additionally, the impact of organizational commitment and of individual variables such as ethical idealism and relativism was examined. The rationale for examining the perceived importance of the role of ethics in this manner is to determine the extent to which the organization itself can influence employee perceptions regarding ethics and social responsibility. Results indicate that all of the variables tested, except relativism, impacted upon one’s perceptions of the importance of ethics and social responsibility. Perceptions of the importance of ethics and social responsibility also varied depending upon country of residence with the U.S. sample having somewhat higher perceptions concerning the importance of ethics and social responsibility than their counterparts in Spain. Furthermore, when comparing the two samples, the U.S. sample had significantly higher corporate ethical values, greater enforcement of ethical codes, less organizational commitment and both lower idealism and relativism.     

Universal Moral Values for Corporate Codes of Ethics

How can one establish if a corporate code of ethics is ethical in terms of its content? One important first step might be the establishment of core universal moral values by which corporate codes of ethics can be ethically constructed and evaluated. Following a review of normative research on corporate codes of ethics, a set of universal moral values is generated by considering three sources: (1) corporate codes of ethics; (2) global codes of ethics; and (3) the business ethics literature. Based on the convergence of the three sources of standards, six universal moral values for corporate codes of ethics are proposed including: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. Relying on the proposed set of universal moral values, implications are discussed as to what the content of corporate codes of ethics should consist of. The paper concludes with its limitations.     

Developing,Communicating and Promoting Corporate Ethics Statements: A Longitudinal Analysis

This paper reports on the findings of the third in a series of surveys of large U.S.-based and multinational corporations on their ethics statements. Focusing on four types – values statement, corporate credo, code of ethics and Internet privacy policy – we find growth in the use of these statements over the last decade. We discuss the external communication of these statements, including the avenues that are now used for promotion and their intended audiences. The paper concludes with a number of research issues to be addressed.     

Institutional Impact on Work-related Values in Chinese Organizations

This study in 29 Chinese organizations contributes to our understanding about work-related values in China. Empirical research in Chinese organizations indicates differences in work-related values between different age groups. The authors compared people (older age group) with work experience from the pre-reform period – pre-1978 China, with those who started their work life in a society that had already changed and become open to foreign investments (younger age group). The authors created a model of institutionally sensitive work-related values. The results could help multinational companies achieve competitive advantage.     

The Effectiveness of Business Codes: A Critical Examination of Existing Studies and the Development of an Integrated Research Model

Business codes are a widely used management instrument. Research into the effectiveness of business codes has, however, produced conflicting results. The main reasons for the divergent findings are: varying definitions of key terms; deficiencies in the empirical data and methodologies used; and a lack of theory. In this paper, we propose an integrated research model and suggest directions for future research. Muel Kaptein is Professor of Business Ethics and Integrity Management at the Department of Business-Society Management at RSM Erasmus University. His research interests include the management of ethics, the measurement of ethics and the ethics of management. He has published papers in the Journal of Business Ethics, Business & Society, Organization Studies, Academy of Management Review, Business & Society Review, Corporate Governance, Policing, Public Integrity, and European Management Journal. He is the author of the books Ethics Management (Kluwer Academic Publishers, 1998),The Balanced Company (Oxford University Press, 2002), and The Six Principles of Managing with Integrity (Spiro Press, 2005). Muel is also director at KPMG Integrity, where he assisted more than 40 companies in developing their business code. Mark S. Schwartz is Assistant Professor of Goverance, Law and Ethics at the Atkinson School of Administrative Studies at York University (Toronto). His research interests include corporate ethics programs, ethical leadership, and corporate social responsibility. He has published papers in the Journal of Business Ethics, Business & Society, Business Ethics Quarterly, Professional Ethics, and the Journal of Management History, and is a co-author of the textbook Business Ethics: Readings and Cases in Corporate Morality (McGraw Hill). He is also a Research Fellow of the Center of Business Ethics (Bentley College) and the Business Ethics Center of Jerusalem (Jerusalem College of Technology).     

Ethics on the Web: Applying Moral Decision-Making to the New Media

This paper examines the advent of the Web as a critical media tool in the promotion and sale of goods to consumers and the ethical questions it raises that are issues of public policy. We examine four traditional ethical rationales that guide organizational decision-making – utilitarianism, distributive justice, moral rights of man and relativism, further characterized as "ends-based", "equity-based", "rules-based" and "comparison-based" rationales – and we apply them to four moral dilemmas attributed to the proliferation of dot.com companies as they relate to consumer welfare. We find that ethical rationale in the New Media is largely non-existent, and where it exists, it is primarily reactive and driven by utilitarian or relativistic reasoning. We attribute this condition to the newness of the industry and to its economic context, representing, as it does, many characteristics embodied in the concept of the "perfect market." We offer some remedies to improve ethical conduct by e-business.     

Corporate Argumentation for Acceptability: Reflections of Environmental Values and Stakeholder Relations in Corporate Environmental Statements

This article studies argumentation for acceptability of corporate environmental actions in corporate environmental statements, with emphasis on stakeholder relations and environmental values. Stakeholder theory is commonly taken as the basis for corporate environmental management, and rhetoric typical of the stakeholder approach dominates the field. Although environmental issues are strongly charged with values, the dominant stakeholder approach does not stress the value dimension. The data of the study consists of environmental statements by Finnish forerunning business corporations in the forefront of corporate environmental responsibility. The results of the study indicate that the statements argue for the acceptability of corporate environmental actions through three power-related rhetorical forms that are competing ways to produce acceptability in the data: dominance, subordination and equality, and joint action. Each rhetorical form describes a power-based relationship between stakeholders and the corporation and leans on a specific value type producing legitimacy for that rhetoric form.     

Integrating Business and Ethical Values Through Practitioner Dialogue

In practice, the relationship between business and ethics is not well-settled. In the past, organisations have developed an interest in setting value charts but this has been approached from a purely managerial perspective following the momentum and interest aroused by research on organisational cultures. Although interest in managing organisational cultures has slowly died down, for both theoretical and practical reasons we argue that there are feasible ways to explore values as part of an organisational culture. Indeed it is our claim that it is feasible and productive to discuss values within organisations. However, rather than developing sophisticated theoretical frameworks, more efforts should be put into thinking about the conditions under which participants can enter into productive dialogue. It is our claim that if processes are carefully examined people within organisations can make better sense of their work and discover their own perspective to account for what they actually do and to project themselves into what they think they should be doing. Thus, values identified within the organisation can eventually reach a point where they become an expression of a shared commitment. The experience we describe aims to illustrate only one example of a concrete application of this approach.     

A Holistic Corporate Responsibility Model: Integrating Values,Discourses and Actions

The corporate responsibility (CR) discussion has so far been rather fragmented as academics tackle it from their own areas of expertise, which guarantees in-depth analyses, but leaves room for broader syntheses. This research is a synthetic, interdisciplinary exercise: it integrates philosophical, psychological and managerial perspectives of corporate responsibility into a more holistic CR-model for the benefit of academics, companies and their interest groups. CR usually comprises three areas: environmental, social and economic responsibilities. In all these areas there should be a match between corporate values, discourses and actions. The aim of this multidisciplinary research is to build a CR-model by integrating (1) utilitarian/egoistic, duty/rights/justice and virtue ethical corporate values with (2) increased consciousness of psychological defences in corporate discourses, in order to achieve (3) responsible environmental, social and economic corporate actions. The resulting CR-model can be tested in companies and executed through corporate strategic and operational management. This paper was presented at the European Academy of Management (EURAM) Conference in Munich, 4–7 May 2005 (Ketola, 2005a). I would like to thank professor Stephan Laske for his insightful comments at the conference, which enabled me to revise the paper. Many thanks also for the anonymous reviewers of this journal for their further advice on finalizing the article. Tarja Ketola is Associate Professor of Sustainable Development at the University of Vaasa, Finland, and Adjunct Professor of Environmental Management at the Turku School of Economics, Finland. She took her Ph.D. at Imperial College, University of London, and worked as a Lecturer in the Department of Management Studies at Brunel University before returning to Finland. Her research interests include eco-psychological leadership, strategic environmental management and corporate responsiblity. She has written books and published articles in many journals, including Business Strategy and the Environment, Corporate Social Responsibility and Environmental Management, Journal of Business Ethics, Sustainable Development and Long Range Planning.     

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.     

多元高等教育价值观差异比较和构建意义分析

文章通过对个人本位、知识本位以及社会本位三大高等教育价值观的比较与分析．构建了以知识本位价值观为基础、结合个人本位价值观与社会本位价值观的教育价值观体系．以期为高等教育的发展和改革提供参考性的建议。     

Professional Values and Perceptions Underlying Ethical Judgments: A Survey of Marketing Professionals in Thailand

ABSTRACT

Theoretical and empirical works generally suggest that variations in ethical judgments exist between different cultures. This study analyzes the ethical decisions of Thai marketing professionals. In particular, it examines the relative influences of professional values and ethical perceptions on the ethical judgments of Thai marketers. The results based on a survey of members of the Thai Marketing Association indicate that there is a significant relationship between a Thai marketer's ethical perceptions and his/her ethical judgments. The results reveal a weak relationship between professional values and the ethical judgments of Thai marketers.     

Corporate Ethical Policies in Large Corporations in Argentina, Brazil and Spain

This paper examines the status of Corporate Ethical Policies (CEP) in large companies in Argentina, Brazil and Spain, with a special emphasis on Corporate Ethics Statements (CES), documents that define the firms’ philosophy, values and norms of conduct. It is based on a survey of the 500 largest companies in these nations. The findings reveal many similarities between these countries. Among other things, it emerges that most companies give consideration to ethics in business and have adopted some kind of formal or informal ethical policies. Regardless of whether or not they have a CES, companies agree that ethical conduct must be taken into account when selecting, appraising and promoting personnel as an important ethical policy. There is a growing tendency to draw up formal corporate ethics documents. These documents are perceived, first and foremost, as supporting the development of corporate culture. Most respondents believe that primary responsibility for ethical issues in the company rests with the CEO. Finally, the findings indicate that most companies that devote more resources to communicating and implementing CESs have two or more formal ethics documents. The main differences between the countries included in the study concern the emphasis given to specific aspects, such as avoiding misconduct or taking ethical criteria into account when selecting personnel. The emphasis is greatest in countries where corruption seems most prevalent.     

Workplace Values and Outcomes: Exploring Personal,Organizational, and Interactive Workplace Spirituality

Spiritual values in the workplace, increasingly discussed and applied in the business ethics literature, can be viewed from an individual, organizational, or interactive perspective. The following study examined previously unexplored workplace spirituality outcomes. Using data collected from five samples consisting of full-time workers taking graduate coursework, results indicated that perceptions of organizational-level spirituality (“organizational spirituality”) appear to matter most to attitudinal and attachment-related outcomes. Specifically, organizational spirituality was found to be positively related to job involvement, organizational identification, and work rewards satisfaction, and negatively related to organizational frustration. Personal spirituality was positively related to intrinsic, extrinsic, and total work rewards satisfaction. The interaction of personal spirituality and organizational spirituality was found related to total work rewards satisfaction. Future workplace spirituality research directions are discussed.     

Ethical Education in Accounting: Integrating Rules,Values and Virtues

Ethics in accounting and ethical education have seen an increase in interest in the last decade. However, despite the renewed interest some important shortcomings persist. Generally, rules, principles, values and virtues are presented in a fragmented fashion. In addition, only a few authors consider the role of the accountants character in presenting relevant and truthful information in financial reporting and the importance of practical reasoning in accounting. This article holds that rules, values and virtues are interconnected. This provides a sound approach to ethics in accounting, in which character and practical reasoning are crucial. Consequently, ethical education in accounting has to simultaneously include the knowledge of proper rules and principles and their correct application; values (understood as moral goods) and virtues, whose acquisition, in the view of the author, should be encouraged.     

Information Technology Professionals’ Perceived Organizational Values and Managerial Ethics: An Empirical Study

This paper summarizes the results of an analysis of empirical data on ethical attitudes of professionals and managers in relation to organizational core values in the Information Technology (IT) industry. This study investigates the association between key organizational values as independent variables and the ethical attitudes of IT managers as dependent variables. The study also delves into differences among IT non-managerial professionals, mid-level managers, and upper-level managers in their ethical attitudes and perceptions. Research results indicated that IT professionals from mechanistic organizations were much more likely to report – compared to those from organic organizations – that managers in their corporate environment engage in behaviors considered unethical and that successful managers were more unethical relative to unsuccessful managers. There were significant differences between the upper-level managers and the mid-level managers and between the mid-level managers and the IT non-managerial professionals on certain key ethical issues. This paper discusses the conceptual framework, hypotheses, research methodology, data analysis, implications of the findings, and suggested areas of further research. K. Gregory Jin, D.B.A, is Professor of the MIS Department, Ancell School of Business, Western, Connecticut State University. He has published numerous conference papers, chapters, and articles in such areas as MIS professional ideology and ethics, communication and control, behavioral issues in information systems development, role of IT and human factors in business process reengineering, service learning in database design, systems theory, MIS participant action research strategy, and political factors in IT management. He has more than twenty years of MIS administrative and professional experiences. He holds a D.B.A. in Information Technology Management from George Washington University. He is a member of the Association of Information Technology Professionals and a former member of DSI. Ronald G. Drozdenko, Ph.D., is Professor and Chair of the Marketing Department, Ancell School of Business, Western Connecticut State University. He is also the founding Director of the Center for Business Research at the Ancell School. Dr. Drozdenko has co-directed more than 100 proprietary research projects since 1978 for the marketing and research and development departments of several corporations, including major multinationals. These projects were in the areas of strategic planning, marketing research, product development, direct marketing, and marketing database analysis. Dr. Drozdenko co-authored Optimal Database Marketing: Strategy, Development and Data Mining and also has published professional and academic articles and book chapters. He holds a Ph.D. in Experimental Psychology from the University of Missouri and is a member of the American Marketing Association, the Society for Consumer Psychology, and the Academy of Marketing Sciences. Richard A. Bassett, D.P.S, is an Associate Professor of Management Information Systems at Western Connecticut State University. He was founder and CEO of Bassett Computer Systems, Inc. for 17 years where he was involved with the design and implementation of information systems for hundreds for small and midsized businesses. He has authored several papers and articles in such areas as web-design as a web-master, web-based course design, the security threats and concerns faced by telecommuters, minimal steps required to secure a Local Area Network and the technology decision challenges which growing companies face. He is actively involved with technology endeavors of numerous nonprofit organizations including: The Children’s Center, Bridges of Milford, North Haven Rotary, Communicare, and the Amber Alert System. He holds a D.P.S. in Computing from Pace University.     

The Ethics of Management Control Systems: Developing Technical and Moral Values

In this paper, we review the conventional analyses of management control systems, to conclude, first, that the illusion of control can mislead managers into believing that everything can be controlled and monitored, and, second, that no incentive system based only on extrinsic rewards can motivate individuals properly. Then, we investigate the philosophical foundations of the basic assumptions that, implicitly or explicitly, are made about the nature of the acting person. Based on personalist phenomenology, we show how the development of technical and moral values is crucial to the long-run survival of organizations. We end by offering some guidelines as to what control systems should be like in order to be compatible with the nature of human persons.