Although detailed studies of code adoption and impact have already been conducted in Hong Kong, there has as yet been no critical analysis of why there has been a gap between the normative and positive factors underlying codes of ethics in Hong Kong. The purpose of this paper is to consider why Hong Kong companies adopting codes of ethics have failed to adhere closely to the best practice prescriptions for code adoption when it would likely be in their best interests (...) to do so. This paper identifies some cultural factors, such as power distance and traditional Legalist assumptions approximating Theory X, that appear to be involved in creating this gap, and offers some practical recommendations for closing the gap, which are presented in the form of hypotheses for further testing. (shrink)

This article attempts to understand and develop the morality of everyday activities in organizations. Aristotle’s concept of phronesis, practical wisdom, is utilized to describe the morality of the everyday work activities at two call centres of an Australian insurance company. The ethnographic data suggests that ethical judgements at the lower level of the organization are practical rather than theoretical; emergent rather than static; ambiguous rather than clear-cut; and particular rather than universal. Ethical codes are of limited value here and it (...) is argued that by developing phronesis members of the organization can improve their capacity to deal with this ethical complexity. (shrink)