China is the world’s second largest economy and the largest emitter of carbon dioxide, yet we know little about environmental proactivity in the most populated country in the world. We address this gap through a survey of 161 Chinese companies with two respondents per firm (N = 322), where we seek to identify the antecedents and consequences of environmental proactivity. We identify two categorizations of environmental proactivity: Environmental operational improvements and environmental reporting. We find that ecological motivations and regulatory stakeholder (...) pressure are positively related to both types of environmental proactivity, and external stakeholder pressure is negatively related to environmental reporting. Furthermore, we find that (1) if a firm is environmentally proactive (as it relates to either measure) and they are ecologically motivated, there is a positive and significant cost advantage, and (2) if a firm makes use of environmental operational improvement and they are competitively motivated, there is a positive and significant reputation advantage. Implications for researchers, managers, and policy-makers in China are discussed. (shrink)

Retail banking is facing many challenges, not least the loss of its customers’ trust and loyalty. The economic crisis is forcing banks to examine their relationships with stakeholders and to offer greater reassurance that their brand promises will be delivered. More than ever, banks need to stand for something positive and valued by stakeholders. One way to achieve this is through paying more attention to brand values. Our article explores how values are adopted by employees within a bank. When employees (...) ‘live’ their brand’s values, their behaviour during customer interactions reflects this, encouraging the strengthening of customer relationships. Specifically, we test the relationship between leadership style, employee commitment, and the adoption of values. Data was collected from a survey of 438 branch employees in a leading Irish retail bank. The study found that a structured and directive leadership style was effective at encouraging the adoption of the bank’s values. Moreover, when employees are committed to the organisation, this has a significant impact on their adoption of values. Thus, this study supports the literature which suggests that leadership and commitment are prerequisites for values adoption. (shrink)

Retail banking is facing many challenges, not least the loss of its customers’ trust and loyalty. The economic crisis is forcing banks to examine their relationships with stakeholders and to offer greater reassurance that their brand promises will be delivered. More than ever, banks need to stand for something positive and valued by stakeholders. One way to achieve this is through paying more attention to brand values. Our article explores how values are adopted by employees within a bank. When employees (...) ‘live’ their brand’s values, their behaviour during customer interactions reflects this, encouraging the strengthening of customer relationships. Specifically, we test the relationship between leadership style, employee commitment, and the adoption of values. Data was collected from a survey of 438 branch employees in a leading Irish retail bank. The study found that a structured and directive leadership style was effective at encouraging the adoption of the bank’s values. Moreover, when employees are committed to the organisation, this has a significant impact on their adoption of values. Thus, this study supports the literature which suggests that leadership and commitment are prerequisites for values adoption. (shrink)

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. (shrink)

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. (shrink)

The purpose of this study was to investigate the relationship between organizational ethical context and the individual ethical decision-making process. In addition, a new statistical approach combining cluster and discriminant analyses was developed to overcome violations of regression assumptions, which are commonly not identified and/or ignored in behavioral and psychological research. Using regressions and this new alternative method, the findings indicated that ethical context does indeed influence the various components of ethical reasoning. However, social desirability was the strongest predictor of (...) ethical decision making, which raises new concerns about how this bias can confound business ethics research. Finally, the findings showed that the alternative method provided more useful and interpretive results, indicating that it has the capacity to influence future empirical work in the field of business ethics, particularly when dealing with data that do not satisfy regression assumptions. The implications and limitations of the study are discussed, and several noteworthy suggestions for future research are provided. (shrink)

In a controlled laboratory experiment, we found evidence for our predictions that participants who received fair distributive treatment were more likely to lie to give a supervisor a good performance evaluation than those treated unfairly, and those who received unfair distributive treatment were more likely to steal money from a supervisor than those treated fairly. We further proposed that the presence of an ethical code of conduct would moderate these relationships such that when the code was present these relationships would (...) be weaker than when the code was absent, but we failed to find support for these moderating effects. Our findings suggest that the relationship between distributive justice and unethical behavior is likely more complex than previously considered. Both researchers and managers may benefit from a broader understanding of the factors that motivate and inhibit unethical behaviors intended to benefit and harm supervisors and/or organizations. (shrink)

This paper reports the results of a study of the top 500 private sector organizations and the top 100 public sector organizations in Sweden. It is a replication of the study by Svensson et al . (2004) . The aim of the study was to describe and compare the business ethics commitment of organizations across the two sectors. The empirical findings indicate that the processes involved in business ethics commitment have begun to be recognized and acted upon at an organizational (...) level in Sweden. Some support is provided to show that codes of ethics are developing in some of Sweden's largest private and public sector organizations – although this is happening to a lesser extent in the public sector. It is noted that an effect of a code of ethics on the bottom line of the business was acknowledged by respondents in both private and public sector organizations. We believe that the supporting measures of business ethics commitment appear to be underutilized in both private and public sector organizations in Sweden (among those that possess codes of ethics), thus indicating that the commitment to business ethics in Swedish organizations has potential for future development. (shrink)

This paper reports the results of a study of the top 500 private sector organizations and the top 100 public sector organizations in Sweden. It is a replication of the study by Svensson et al. (2004). The aim of the study was to describe and compare the business ethics commitment of organizations across the two sectors. The empirical findings indicate that the processes involved in business ethics commitment have begun to be recognized and acted upon at an organizational level in (...) Sweden. Some support is provided to show that codes of ethics are developing in some of Sweden's largest private and public sector organizations – although this is happening to a lesser extent in the public sector. It is noted that an effect of a code of ethics on the bottom line of the business was acknowledged by respondents in both private and public sector organizations. We believe that the supporting measures of business ethics commitment appear to be underutilized in both private and public sector organizations in Sweden (among those that possess codes of ethics), thus indicating that the commitment to business ethics in Swedish organizations has potential for future development. (shrink)

Gallup Polls have reported on the perceived ethics of various professions in the US since 1976. Clergymen and pharmacists were consistently identified as two of the most ethical professionals in the 1980''s and 1990''s. Business executives have not fared well in these polls and have not been rated among the top ten most ethical professions in any of the years the poll was taken. Ethical codes have not done much to belay the perception that the US business executive is not (...) very ethical. Whether the Sarbanes-Oxley Act will impact the ethical behavior of business executives remains to be seen. (shrink)

This paper reviews studies of corporate ethical codes published since 2000 and concludes that codes be can effective instruments for shaping ethical behavior and guiding employee decision-making. Culture and effective communication are key components to a code’s success. If codes are embedded in the culture and embraced by the leaders, they are likely to be successful. Communicating the code’s precepts in an effective way is crucial to its success. Discussion between employees and management is a key component of successful ethical (...) codes. (shrink)

This paper re-frames business ethical codes as narrative processes by reflecting critically on key ontological assumptions underpinning the existing research, and introducing new and relevant concepts based on alternative assumptions. The first section draws on recent decision-making research to develop a theoretical account of BCEs as complex, socially embedded sensemaking processes. The second section addresses the content of codes, and differentiates between narrative and logico-scientific modes of reasoning. The third section focuses on the quality of code communication and identifies several (...) distinct types of narrative process. We provide research directions for how this new understanding of BCEs may be further developed, as well as implications for practitioners. In response to the call for new conceptual models, the paper provides organizational researchers with a more nuanced understanding of how BCEs enable or constrain ethical behavior in organizations. (shrink)

Recent figures reported by KPMG confirm the growing prevalence of corporate codes of ethics globally. Svensson et al. (Bus Ethics 18:389–407, 2009 ) in surveys of the largest corporations in Australia, Canada, and Sweden found a similar trend. The increased prevalence of corporate codes of ethics has been accompanied by heightened research interest in various aspects of these documents, e.g., the contents and focus of the codes. However, there is a paucity of research examining the effectiveness of these documents and (...) the organizational infrastructure that accompany them. This study, based on a survey of Canada’s largest corporations, sought to empirically assess the determinants of the effectiveness of corporate codes of ethics by regressing managers’ perceptions of code effectiveness against various elements of ethics programs. It was found that, in a statistically significant model, eighteen independent variables explain 58.5% of the variance in the perceived effectiveness of corporate codes of ethics. (shrink)

The relationship between ethical ideology and job stress appears to be complex. This study is based on a model presented by Forsyth (Journal of Personality and Social Psychology 39:175, 1980), showing two dimensions (idealism and relativism) that play an important role in ethical evaluation and behavior. Based on a survey of 561 employees of hotel industry in India, ethical ideologies were found to be negatively associated with job stress. The data were analyzed using Pearson correlations and multiple regressions. The result (...) showed that relativism is negatively correlated with job stress. Further, it has been established that idealism and relativism interacted in such a way that there is a negative relationship between idealism and job stress when relativism is low and positive relationship when relativism is high. The findings imply that ethical ideology adversely influences the job stress in the organization. (shrink)

Accounting professionals play an important role in the generation and auditing of financial statements and, given their understanding of business processes, may be relied upon in the development of organizations’ ethical infrastructures (i.e., the formal aspects of an organization’s ethical environment that are explicitly under the control of the organization). Thus, understanding and improving the work environments of accounting professionals is crucial to improving organizational ethical culture and reducing fraud. In this study, we extend prior research that documents the prevalence (...) of ethical infrastructure programs by assessing how accounting professionals, a key employee group, perceive their organizations’ ethical infrastructures. In addition, we examine whether perceptions of the effectiveness of the ethical infrastructure and professional autonomy influence accountants’ ethical judgments. Based on the responses of 378 CPAs in the United States, we find the perceived state of the ethical infrastructure across accounting work environments—both public accounting firms and other organization types—is relatively strong. However, of the five ethical infrastructure components we examine (i.e., ethics code, ethics training, ethics-based punishments and incentives, ethics reporting system, and ethics review system), only 35% of respondents indicate that their organizations have more than three of these components. Importantly, we find that perceived ethical infrastructure effectiveness and professional autonomy influence both perceptions of the ethical culture and the ethical judgments of accounting professionals. We also contribute to practice by highlighting opportunities for improvement in ethics training formats, ethics-based incentives, and ethics review systems. (shrink)

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. (shrink)

Prisoner's dilemmas can lead rational people to interact in ways that lead to persistent inefficiencies. These dilemmas create a problem for institutional designers to solve: devise institutions that realign individual incentives to achieve collectively rational outcomes. I will argue that we do not always want to eliminate misalignments between individual incentives and efficient outcomes. Sometimes we want to preserve prisoner's dilemmas, even when we know that they systematically will lead to inefficiencies. No doubt, prisoner's dilemmas can create problems, but they (...) also create opportunities to practice the cooperative norms that make market institutions possible in the first place. An ethical market culture, I argue, benefits from the presence of prisoner's dilemmas. I first consider standard approaches for solving prisoner's dilemmas. I then argue for the value of prisoner's dilemmas. Finally, I show the significance of this argument for advocating codes of business ethics. (shrink)

The moral ideology of banking and insurance employees in Spain was examined along with supervisor role modeling and ethics-related policies and procedures for their association with ethical behavioral intent. In addition to main effects, we found evidence supporting that the person–situation interactionist perspective in supervisor role modeling had a stronger positive relationship with ethical intention among employees with relativist moral ideology. Also as hypothesized, formal ethical polices and procedures were positively related to ethical intention among those with universal beliefs, but (...) the relationship was much weaker among relativists. Thus, firms wishing to optimally promote ethical attitudes and behavior must tailor their organization-based initiatives to the individual characteristics of their employees. (shrink)

This review summarizes and critiques the empirical ethical decision-making literature from 1996-2003. One hundred and seventy-four articles were published in top business journals during this period. Tables are included that summarize the findings by dependent variable - awareness, judgment, intent, and behavior. We compare this review with past reviews in order to draw conclusions regarding trends in the ethical decision-making literature and to surface directions for future research.

This review summarizes and critiques the empirical ethical decision-making literature from 1996–2003. One hundred and seventy-four articles were published in top business journals during this period. Tables are included that summarize the findings by dependent variable – awareness, judgment, intent, and behavior. We compare this review with past reviews in order to draw conclusions regarding trends in the ethical decision-making literature and to surface directions for future research.

The relationship between unethical peer behavior and observers’ unethical behavior traditionally has been examined from a social learning perspective. We employ two additional theoretical lenses, social identity theory and social comparison theory, each of which offers additional insight into this relationship. Data from 600 undergraduate business students in two universities provide support for all the three perspectives, suggesting that unethical behavior is influenced by social learning, social identity, and social comparison processes. Implications for managers and future research are discussed.

This paper reports on an investigation of issues surrounding the use of ethical codes/codes of conduct in Irish based companies. Using a comprehensive questionnaire survey, the paper examines the incidence, content and enforcement of codes of conduct among a sample of the top 1000 companies based in Ireland. The main findings indicate that the overall usage of codes of conduct amongst indigenous Irish companies has increased significantly from 1995 to 2000. However, in line with prior research, these codes focus primarily (...) on issues surrounding company and employee protection as opposed to society protection. Almost half of all codes are written by company personnel or provided by head office. Revisions of codes are common but formal ongoing methods of instructing new staff about codes are not prevalent. Less than one-third of companies with codes have formal channels for reporting violations but a high percentage have formal disciplinary procedures in place for breaches of codes. (shrink)

In this article, our aim is to examine the difference between the corporate social responsibility (CSR) practice of the multinational companies (MNCs) and of the domestic companies operating in Serbia, as well as the influence of internal self-regulations such as statements of corporate values and codes of conduct, and external self-regulations such as the implementation of the ISO 9001 and ISO 14001 standards on CSR practice. The CSR practice is observed in five CSR areas: employee relations, customer relations, environmental practice, (...) community and social involvement, and transparency in business activity. The findings indicate that the CSR practice of the MNCs is significantly different in comparison to domestic companies only in the area of employee relations. Furthermore, the overall results suggest that internal self-regulations have more influence on CSR practice than the implementation of generic management system standards. However, the existence of transparent corporate values, codes of conduct and implemented management systems according to ISO 9001 and ISO 14001 standards does not prove to be strong predictors of CSR performance. (shrink)

Corporate codes of ethics, which have spread in the last decades, have shown a limited ability to foster ethical behaviors. For instance, they have been criticized for relying too much on formal compliance, rather than taking into account sufficiently agents and their moral development, or promoting self-reflexive behaviors. We aim here at showing that a code of ethics in fact has meaning and enables ethical progress when it is interpreted and appropriated with practical wisdom. We explore a model that represents (...) an uncommon organizational code of ethics: the monastic Rule of St. Benedict, written in the sixth century and still used today. Our empirical study—conducted in several monasteries living under this rule—shows that organization members interpret this rule, both hermeneutically and ethically, to adapt it to situations. They also appropriate this rule as a way of life and treat it as a dynamic framework that helps them to follow their purpose within their organization. This exceptional code actually offers an alternative model for practicing codes of ethics, in a virtue-ethical manner, beyond mere compliance with the text. The way in which reflexive and active agents practice the code, both individually and collectively, shapes their organizational experience and fosters their moral development. (shrink)

Ethics are of interest to business scholars because they influence decisions, behaviors, and outcomes. While scholars have increasingly shown interest in business ethics as a research topic, there are a mounting number of studies that examine ethical issues at the organizational level of analysis. This manuscript reports the results of a systematic review of empirical research on organizational ethics published in a broad sample of business journals over a 33-year period. A total of 184 articles are analyzed to reveal gaps (...) in the literature and, subsequently, lead to suggestions for future research; this is done in an effort to stimulate and perpetuate high quality research that more broadly impacts business scholars and practitioners. (shrink)

This article analyzes the attitudes of United States business professionals toward the issue of international bribery, and in particular, whether or not having a written code of ethics has an effect on these attitudes. A vignette relating to international bribery from a widely used survey instrument was employed in a nationwide survey of business professionals to gather information on ethical attitudes of respondents. Data were also collected on gender of respondents, whether or not respondents were self-employed, whether or not the (...) respondents' firms had a written code of ethics, and to what extent the respondents' firms generated revenues from international operations. Attitudes concerning whether or not international bribery is ever acceptable exhibited wide dispersion. Respondents from firms that have a written code of ethics were significantly less likely to find international bribery acceptable. Firms that generate revenues from international operations were significantly more likely to have a written code of ethics than were firms which did not generate revenues from international operations. Implications of the findings for business policy are discussed. (shrink)

The rise of ethical scandals in the business world urged corporations to allocate time and resources to emphasize the ethical behavior of their managers and employees. The Model of Ethical Behavior in this article has three main assumptions: (1) the institutionalization of a Compliance and Ethics Program Model is done in terms of just two components: one Explicit and the other Implicit, (2) both components have a significant and direct influence over the ethical behavior of employees, which is represented in (...) the model by two variables: Value Consistency and Presence of Ethical Conflicts, and (3) proper ethical behavior is perceived by employees to have a positive impact over the economic results of the firm. Reliable scales are developed to measure all these variables from the data collected by the "Barómetro de Valores y Ética Empresarial © ," a survey applied in 2009 to 12,321 employees from 54 Chilean corporations. The empirical analysis showed that there are three very distinctive components in the Presence of Ethical Conflicts variable: (1) what the company does that affects the employee, (2) what the company does that affects other people, and (3) what the employee does that affects the company. Finally, the Explicit and Implicit components of a Compliance and Ethics Program are shown to have a significant and positive impact over: (1) Value Consistency in employees* behavior; (2) the Presence of Ethical Conflicts in organizations; and (3) the perceived importance of ethics as a key factor to improve economic performance. (shrink)

This article introduces and discusses the initial results of a survey focused on the contents, role and effectiveness of company codes of ethics. The article examines the contents of the codes of ethics of companies operating in the private sector in Italy, quoted on the Italian Stock Exchange (Standard& Poor/Mib-Milano Indice Borsa). The purpose of this investigation was to identify any correlations between sector characteristics and the contents of the codes of ethics, which would enable us to map out the (...) main principles followed in writing the companies' codes of ethics. The analysis was conducted in order to ascertain whether there were common factors deriving from the shared ethical questions faced by the companies operating in the same sector of activity. As the first step, the 40 companies were subdivided into three main economic categories -Industrial, Financial and Service. Then the contents of each code of ethics were evaluated and classified in accordance with different criteria. The main categories of classification were based on -general principles, social values, rules of conduct, relationships with third parties, implementation and sanctions. The next objective was to investigate whether these characteristics were due to the regulation of the sector of reference, the existence of sector benchmarks for best practice, or simply companies' voluntary stance on ethical issues. The main conclusions were that the codes of ethics of the Italian companies that we analysed do not seem to show relevant differences traceable to sector of activity, and their adoption is affected by several reasons other than intentionally ethical considerations. (shrink)

Unethical behavior is under-examined in the workplace. To date, few studies have attempted to explore the antecedents of an employee’s ethical decisions, particularly with respect to unethical behavior and its effects. To capture an employee’s psychological perception of unethical behavior in the workplace, this paper integrates organizational factors into the Theory of Reasoned Action. By conducting an empirical study in a Chinese firm, we found that codes of conduct and performance pressure have a significant influence on an employee’s attitude toward (...) and social beliefs about unethical behavior. We also demonstrated that employees’ unethical behaviors affect the firm performance of an entrepreneurial venture. The insights gleaned from the findings on this Chinese company have a number of important implications for both research and practice. (shrink)

In order to provide an effective whistle-blowing system, it is expected that companies would provide employees with a high level of disclosure regarding the whistle-blowing process. This study investigates variation in the extent of whistle-blowing disclosures. As a measure of whistle-blowing implementation, this study further examines the provision of a hotline channel. The results suggest that the extent of whistle-blowing disclosures is positively associated with the permissibility of anonymous reporting and organisational support for whistle-blowing, the number of external directors on (...) the audit committee, and the existence of concentrated shareholdings. The mere existence of whistle-blowing disclosures could simply be symbolic. The findings also indicate a greater likelihood of the provision of hotlines when companies are larger in size, have a higher level of current inventory, are cross-listed in the US, and permit anonymous reporting. (shrink)

Increasing attention to the issue of child labor has been reflected in codes of conduct that emerged in the past decade in particular. This paper examines the way in which multinationals, business associations, governmental and non-governmental organizations deal with child labor in their codes. With a standardized framework, it analyzes 55 codes drawn up by these different actors to influence firms’ external, societal behavior. The exploratory study helps to identify the main issues related to child labor and the use of (...) voluntary instruments such as codes of conduct. Apart from a specific indication of the topics covered by the code, especially minimum-age requirements, this also includes monitoring systems and monitoring parties. Most important to company codes are the sanctions imposed on business partners in case of non-compliance. Severe measures may be counterproductive as they do not change the underlying causes of child labor and can worsen the situation of the child workers by driving them to more hazardous work in the informal sector. This underlines the importance of a broad rather than a restrictive approach to child labor in codes of conduct. The paper discusses the implications of this study, offering suggestions for future research. (shrink)

This study was designed to examine the prevalence of a code of ethics and to analyze its content among public relations agencies in the United States. Of the 1,562 public relations agencies reviewed, 605 (38.7%) provided an ethical statement. Among the ethical statements provided by these public relations agencies, ‹respect to clients,’ ‹service,’ ‹strategic,’ and ‹results’ were the values most frequently emphasized. On the other hand, ‹balance,’ ‹fairness,’ ‹honor,’ ‹social responsibility,’ and ‹independence’ were the least frequently mentioned in the ethical (...) codes. Also, none of the sampled agencies included any sanctions regarding enforcement of their particular codes of ethics. (shrink)

Attempting to determine solutions for unethical practices in the field, this research was designed to assess the effectiveness of public relations firms’ ethics statements in decreasing the incidence of malpractice. This study revealed an encouraging finding that practitioners working in firms with ethical parameters were significantly more likely to engage in ethical practices. Moreover, educating public relations practitioners about the content of ethics statement could positively influence their ethical practices. At the same time, this study’s findings suggest further questions for (...) consideration in future scholarship and in the application of ethics statements to practice within the field. (shrink)

An advertising firm''s ethical culture (as defined by the firm''s managerial and peer ethical behaviors) may affect the employees'' comfort levels and ethical behaviors. In this research, scenarios were used to describe advertising firms with various ethical cultures. Respondents'' perceived comfort levels in working for the firms described in the scenarios and the respondents'' behavioral intentions when faced with various advertising situations were assessed. Results of the study indicate that peer ethical behavior exerts a strong influence on the comfort or (...) discomfort level and the ethical behavioral intentions of potential advertising employees. Further, the strong influence exerted by peers seems to transcend the ethical behavior of the manager and carry over to the attitude toward the entire corporate advertising environment. This study provides insights for firms and researchers interested in assessing the impact of an advertising firm''s ethical culture on potential employees. (shrink)

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.

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.

A business code of ethics is widely regarded as an important instrument to curb unethical behavior in the workplace. However, little is empirically known about the factors that determine the impact of a code on unethical behavior. Besides the existence of a code, this article studies five determining factors: the content of the code, the frequency of communication activities surrounding the code, the quality of the communication activities, and the embedment of the code in the organization by senior management as (...) well as local management. The full model explains 32% of observed unethical behavior while the explanatory value of a code alone is very modest. The study shows when codes are effective, and even when they become counter effective. (shrink)

The purpose of this paper is to examine whether anonymous reporting channels are effective in detecting fraud against companies. Fraud, which comprises predominantly asset misappropriation, represents a key operational risk and a major cost to organisations. The fraud triangle provides a framework for developing our understanding of how ARCs can increase detection of fraud. Using publicly listed company survey data collected by KPMG in Australia—where ARCs are not mandated—we find a positive association between ARCs and reported fraud. These results indicate (...) that ARCs are effective in detecting fraud. Additional analysis reveals that small firms derive the greatest benefit from adopting ARCs. We also find that independent boards do not directly influence the detection of fraud, but companies with independent boards detect more fraud because they implement ARCs. (shrink)

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. (shrink)

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 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. (shrink)

This article extends previous research by investigating the basis for attitudes toward codes of ethics. Specifically, its purposes are threefold. First, to examine business managers' attitudes toward codes of ethics. Second, to ascertain whether gender differences do exist with respect to these attitudes. Third, to provide a benchmark for future studies of attitudes toward codes of ethics. A survey of 286 managers revealed significant differences between the female and male managers with respect to six of the eight variables studied.

This article extends previous research by investigating the basis for attitudes toward codes of ethics. Specifically, its purposes are threefold. First, to examine business managers' attitudes toward codes of ethics. Second, to ascertain whether gender differences do exist with respect to these attitudes. Third, to provide a benchmark for future studies of attitudes toward codes of ethics. A survey of 286 managers revealed significant differences between the female and male managers with respect to six of the eight variables studied.

Companies increasingly deploy artificial intelligence technologies in their personnel recruiting and selection process to streamline it, making it faster and more efficient. AI applications can be found in various stages of recruiting, such as writing job ads, screening of applicant resumes, and analyzing video interviews via face recognition software. As these new technologies significantly impact people’s lives and careers but often trigger ethical concerns, the ethicality of these AI applications needs to be comprehensively understood. However, given the novelty of AI (...) applications in recruiting practice, the subject is still an emerging topic in academic literature. To inform and strengthen the foundation for future research, this paper systematically reviews the extant literature on the ethicality of AI-enabled recruiting to date. We identify 51 articles dealing with the topic, which we synthesize by mapping the ethical opportunities, risks, and ambiguities, as well as the proposed ways to mitigate ethical risks in practice. Based on this review, we identify gaps in the extant literature and point out moral questions that call for deeper exploration in future research. (shrink)

This paper takes its point of departure in an article by Stevens [Stevens, B.: 1994, Journal of Business Ethics 54, 163–171], in which she identified a lack of knowledge regarding how corporate codes of ethics are communicated and affect behavior in organizations. Taking heed of this suggested gap, we review studies on corporate codes of ethics with an empirical content, published since 1994. The conclusion of the review is that we still lack knowledge on how codes work, how they are (...) communicated and how they are transformed inside organizations. Stevens’ plea could even be extended, arguing that the knowledge gap might be of even more significance than in the mid-1990s. Some directions for how this situation can be approached in future studies are outlined in the paper. (shrink)

Although case-based training is popular for ethics education, little is known about how specific case content influences training effectiveness. Therefore, the effects of (a) codes of ethical conduct and (b) forecasting content were investigated. Results revealed richer cases, including both codes and forecasting content, led to increased knowledge acquisition, greater sensemaking strategy use, and better decision ethicality. With richer cases, a specific pattern emerged. Specifically, content describing codes alone was more effective when combined with short-term forecasts, whereas content embedding codes (...) within context was more effective when combined with long-term forecasts, leading to greater knowledge acquisition and sensemaking strategy use. (shrink)