Abstract

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.