Practical mechanisms for aligning performance, ethics, and accountability are urgently needed. The context for this includes the organisational, technological, and regulatory transformations underlying current patterns of globalisation. These factors, combined with the associated emergence of civil action concerned with corporate accountability and deeper value-shifts, make such realignments a practical possibility.Social and ethical accounting, auditing, and reporting provides one of the few practical mechanisms for companies to integrate new patterns of civil accountability and governance with a business success model focused on (...) deepening stakeholder relationships around core non-financial as well as financial values and interests. (shrink)

Victor and Cullen (1988) identified several dimensions of ethical climate that exist in organizations and organizational subunits. We tested the relationship between these dimensions of ethical climate and ethical behavior at different levels of analysis. Using Within and Between Analysis (WABA) (cf. Dansereau, Alutto and Yammarino, 1984), partial support was found for a relationship between dimensions of ethical climate and ethical behavior.

Focusing on professional codes of ethics in HR, this article establishes a foundation for understanding the contents of thesecodes and for future research in this area. Five key professionalethics codes in HRM are analyzed according to six obligations.The resulting characterizations revealed that these codes advocatefive principles related to integrity, legality, proficiency, loyalty, and confidentiality. Particular flaws in code content and implementationare identified with recommendations for addressing them. Also,suggestions for standardizing professional HR codes and forfuture research are discussed.

Although much theoretical and empirical research has examined organizational power, virtually none has addressed the hierarchical abuse of power in organizations. Managers' incentives and discretion and subordinates' dependencies define the abuse of power as an important organizational issue. This paper offers a conceptualization and process model to help further theoretical and applied understanding, and it considers the ethical nature of power abuse. Two dimensions, disrespect for individual dignity and interference with job performance or deserved rewards, conceptualize the interpersonal abuse of (...) power. Behavioral examples of each dimension are provided.The process model delineates powerholders' motives to abuse power and indicates individual attributes that increase the probability of their pur-suing these motives. Organizational conditions that allow or encourage the abuse of power and managers' particular sources of power interact with these motives and attributes to define decisions about abusing power. Norms and considerations of risk influence these decisions. The decision to abuse power leads to the enactment of power strategies, and they generate intended and unintended outcomes. The process model presented here recognizes an emotional component of the hierarchical abuse of power. (shrink)

The report of the Treadway Commission suggests that all public companies should establish effective written codes of conduct in promoting honorable behavior by corporations. The need for written "codes of conduct" for businesses is evident in the current literature. However, there is not sufficient evidence regarding the implication of codes of conduct in a college. Academic dishonesty has become an important issue in institutions of higher education. Codes of conduct can also provide a basis for ethical behavior in colleges and (...) universities. Survey respondents were generally supportive of the concept of codes of ethical conduct in colleges and universities. The results of this study indicate that college codes of conduct tend to follow a "low road" approach. The results also suggest the following needed improvements in college and university codes of conduct: (1) greater emphasis on preventing financial, scientific, and academic fraud; (2) more inclusion of the faculty in the process; and (3) establishment of a proper process for implementation of the code. (shrink)

The authors propose the integrity capacity construct with its four dimensions (process, judgment, development and system dimensions) as a framework for analyzing and resolving behavioral, moral and legal complexity in business ethics' issues at the individual and collective levels. They claim that moral progress in business comes about through the increase in stakeholders who regularly handle moral complexity by demonstrating process, judgment, developmental and system integrity capacity domestically and globally.

The relationship between tenure and principled reasoning is of vital importance to the fields of management and business ethics, as more tenured managers often hold influential posts and have the ability to affect the overall ethical tones of their organizations. Few researchers have studied this relationship, however, and those studies that have been conducted have produced mixed results. While some researchers have found that greater tenure is associated with higher levels of ethical reasoning, others have found the reverse to be (...) true. The findings of this particular study of 270 current U.S. corporate managers, who responded to a nationwide survey, indicated that there is indeed a link between tenure and principled reasoning. More tenured managers demonstrated lower principled reasoning than their less tenured counterparts. As the number of years of tenure increased, principled reasoning scores declined. The results of this study, as well as a comparison to the results of previous studies that have been conducted, are discussed within this paper. (shrink)

Various measures related to individual values, ethical attitudes and moral reasoning exist and are being increasingly applied for research in business and professional ethics. The England Personal Values Questionnaire, the Rokeach Value Survey, and Rest's Defining Issues Test have received stronger support and application for management and organizational behavior research than other instruments, such as Gordon's Survey of Personal Values and Hogan's Survey of Ethical Attitudes. Beyond research usage, many of these measures offer potential for instructional purposes. Knowledge of the (...) characteristics and limitations of values and ethics-related measures allows business educators to make better selections of possible supplements to traditional instructional methods. (shrink)

The paper explores the promise of ethical codes as a means to control unethical behavior in business. After a review of arguments for ethical codes from outside the business system, the paper outlines the arguments for codes from inside the business system at the level of the industry, firm and individual executive.The paper then discusses the problems of code design — the dilemma between specific practices and general precepts — and offers a model for a thoroughgoing code. This is followed (...) by a discussion of the problems of promulgation and code enforcement. (shrink)

This paper expands the literature on accounting ethics education by considering the teaching of ethics in accounting doctoral education. Some of the ethical issues that might be addressed in accounting doctoral education are reviewed. A number of matters relating to teaching ethics to accounting doctoral students are considered. The paper concludes with a summary and some final remarks.

Objective: To explore the relationship between pharmacists'' tenure in the community setting and their moral reasoning abilities. Design: Systematic random sample design. Setting: A large southeastern city in the United States. Participants:450 independent and chain community pharmacists identified from the state board of pharmacy list of licenced community pharmacists. Interventions: A mailed questionnaire that included a well-known moral reasoning instrument and collected demographic information. Main Outcome Measures: Moral Reasoning abilities and tenure of community pharmacists. Results: As a group, community pharmacists (...) with greater years of tenure in community practice scored significantly lower on moral reasoning than those pharmacists with fewer years of tenure (p = 0.016). Conclusion: Four plausible explanations for the results are given including: a) a selection of lower ethical reasoners and/or an exodus of higher ethical reasoners from the community setting; b) a retrogression in the moral reasoning skills as community pharmacists obtain tenure in this setting; c) differences between the low and high moral reasoning groups may be due to a cohort effect; and d) the obtained practitioner sample may not have been representative of the population of community pharmacists. (shrink)

Exploring the relationship between morality and professional ideals, Kultgen examines the structure and organization of occupations and the ideals and ideology associated with professions. He argues that professionalization of occupations can both harm and benefit society, and that by converting occupations into organized special interest groups, the professions serve some sectors of society at the expense of others. On the other hand, he highlights the positive points of the professional ideal and explores ways in which it can be used to (...) advance the physical and moral welfare of society. Kultgen also shows how it is the practices within the professions that determine whether rules and ideals are used as masks for self-interest or for genuinely moral purposes. ISBN 0-8122-8094-6: $14.95. (shrink)

This study considers the relationship between perceptions of ethical behavior and the demographic characteristics of sex, age, education level, job title, and job tenure among a sample of marketing researchers. The findings of this study indicate that female marketing researchers, older marketing researchers, and marketing researchers holding their present job for ten years or more generally rate their behavior as more ethical.

The professions have focused considerable attention on developing codes of conduct. Despite their efforts there is considerable controversy regarding the propriety of professional codes of ethics. Many provisions of professional codes seem to exacerbate disputes between the profession and the public rather than providing a framework that satisfies the public''s desire for moral behavior.After examining three professional codes, we divide the provisions of professional codes into those provisions which urge professionals to avoid moral hazard, maintain professional courtesy and serve the (...) public interest. We note that whereas provisions urging the avoidance of moral hazard are uncontroversial, the public is suspicious of provisions protecting professional courtesy. Public interest provisions are controversial when the public and the profession disagree as to what is in the public interest. Based on these observations, we conclude with recommendations regarding the content of professional codes. (shrink)

In this paper I examine how the constituent elements of a firm's organizational structure affect the ethical behavior of workers. The formal features of organizations I examine are the compensation practices, performance and evaluation systems, and decision-making assignments. I argue that the formal organizational structure, which is distinguished from corporate culture, is necessary, though not sufficient, in solving ethical problems within firms. At best the formal structure should not undermine the ethical actions of workers. When combined with a strong culture, (...) however, the organizational structure may be sufficient in promoting ethical conduct. While helpful, ethics training and corporate codes are neither necessary nor sufficient in promoting ethical behavior within firms. (shrink)

This paper investigates the regulation of ethical behavior of professionals. Ethical perceptions of South African professionals operating in the business community (specifically accountants, lawyers and engineers) concerning their need for and awareness of professional codes, and the frequency and acceptability of peer contravention of such codes were sought. The existence of conflict between corporate codes and professional codes was also investigated. Results, based on 217 replies, indicated that the professionals believe that codes are necessary and are relatively aware of the (...) contents of such codes. Despite these ethical tendencies, respondents (particularly lawyers) believe that their peers contravene their professional codes relatively often. No significant differences in ethical tendencies between professionals consulting to and those working in business were found. Many respondents were regulated by more than one code of ethics, but few experienced conflict between such codes. In the events of conflict occurring professionals chose to adhere to their professional code above others. (shrink)

This study examines the ethical values of respondents by level in the organizational hierarchy of a single firm. It also explores the possible impacts of gender, education and years of experience on respondents' values as well as their perceptions of how the organization and professional associations influence their personal values. Results showed that, although there were differences in individuals' ethical values by hierarchical level, significantly more differences were observed by the length of tenure with the organization. While respondents, as a (...) whole, were rather ambivalent in their perception of the organization's and professional associations' influence on their values, sales/service persons frequently felt pressured to modify their values in order to achieve company goals. (shrink)

Despite an extensive amount of research studying the influence of significant others on an individual's ethical behavior, researchers have not examined this variable in the context of organizational group boundaries. This study tests actual and perceptual sharing and variation in ethical reasoning and moral intent within and across functional groups in an organization. Integrating theory on ethical behavior, group dynamics, and culture, it is proposed that organizational structure affects cognitive structure. Departmental boundaries create stronger social ties within the group as (...) well as intergroup biases between the groups. Thus individuals will be more likely to share in ethical reasoning and moral intent with members of their own functional group (in-group) than with members of other functional groups (out-group). Additionally, they will perceive that they are more likely to share in ethical reasoning and moral intent with in-group members than with out-group members. Responding to two versions of two ethical scenarios, respondents contrasted their own ethical behavior to their expected ethical behavior of in-group and out-group members. Empirical results confirmed the hypotheses. Organizational group boundaries create actual as well as perceptual sharing and variation in ethical reasoning and moral intent. Furthermore, when comparing perceptual sharing to actual sharing, results show that individuals understate their sharing of ethical reasoning and moral intent with out-group members and overstate their sharing with in-group members. As organizational boundaries can create actual and perceived differences between groups that could lead to inter-group conflict, suggestions for management focus on removing or blurring inter-group boundaries. (shrink)

This paper reports an analysis of the content of the codes of ethics of 15 professional business organizations in the United States, representing the broad range of disciplines found in business. The analysis was conducted to identify common ethical issues faced by business professionals. It was also structured to highlight ethical issues that are either unique to or of particular importance for business professionals. No attempt is made to make value judgments about either the codes of ethics studied or of (...) their content. General ethical values identified include honesty and integrity, general legal compliance, discreditable or harmful acts, and obligations related to social values. More business-specific issues include confidentiality, responsibilities to employers/clients, obligations to the profession, independence and objectivity, and business-specific legal and technical compliance issues. (shrink)

A tension between the professions' pursuit of autonomy and the public's demand for accountability has led to the development of codes of ethics as both a foundation and guide for professional conduct in the face of morally ambiguous situations. The profession as an institution serves as a normative reference group for individual practitioners and through a code of ethics clarifies, for both its members and outsiders, the norms that ought to govern professional behavior. Three types of codes can be identified (...) — aspirational, educational and regulatory. All codes serve multiple interests and, as a consequence, perform many functions, eight of which are discussed. The process of developing a code of ethics is assessed because of the role it plays in gaining consensus on professional values and ethical norms. After discussing some of the weaknesses in current approaches to professional self-regulation, several new private and public initiatives are proposed. (shrink)

Since manager's decisions impact organizational goals and organizational ethical behavior, this researcher investigated the degree to which there are differences in the moral reasoning ability of business managers of selected industries and whether there are significant differences between top, middle, and first-line management levels. To determine the relationship between managers' locus of control and their moral reasoning ability, this study considered three independent variables: reported organizational ethical climate, locus of control, and selected demographic and institutional variables. For a foundation, this (...) researcher relied on Kohlberg's theory of moral development, Victor and Cullen's ethical work climate theory, and Rotter's theory of internal—external locus of control (which evolved from Carl Jung). The short form of Rest's DIT instrument measured the moral reasoning abilities of the participants. The selected demographic and institutional variables (age, work tenure, education, gender, management level and industry category) provided the useful information to investigate these relationships of moral reasoning ability of individual managers. A survey questionnaire was sent to 400 managerial and executive level employees at a random sample of Fortune 500 firms throughout the United States: Dun and Bradstreet provided the researcher with a proportional stratified random sample of these 400 managerial and executive level employees at a variety of organizations. Interestingly, women in this study exhibited slightly higher (more external) mean I—E scores and (more principled) higher mean “P” score than men. While both of these results were anticipated, neither was significant. However, one major finding of this study was the statistically significant relationship between age and perceived organizational ethical climate types (Caring, Law and Code, Rule, Instrument, and Independence). Another major finding revealed a statistically significant relationship between management levels and organizational ethical climate. (shrink)

This paper examines two issues about professionalism and business that appear at first blush to be entirely separate. The first is the question of who counts as a “professional,” and whether, in particular, business people are “professionals.” The second issue is howacknowledged professionals that regularly interact with business, such as accountants, lawyers, and physicians, can find the moral free space necessary to maintain professional integrity in the face of financial pressures. Conflicts of interest for professionals working incorporations recur with disturbing (...) regularity, and often have serious consequences. In the end I will show how both issues share a common solution. The solution involves understanding the normative function of the manager in the modern corporation, a function, I will argue, made more conspicuous by work over the last two decades done in the areas of stakeholder theory, corporate social performance (CSP), and social contract theory. The remainder of the paper is devoted to articulating these two problems and clarifying their common solution. (shrink)

The cause of ethical failure in organisations often can be traced to their organisational culture and the failure on the part of the leadership to actively promote ethical ideals and practices. This is true of all types of organisations, including the professions, which in recent years have experienced ongoing ethical problems. The questions naturally arise: what sort of professional culture promotes ethical behaviour? How can it be implemented by a profession and engendered in the individual professional? The answers to these (...) questions are of interest to business ethicists since the causes of ethical problems in business are often the same and the professions, as ethically challenged organisations, make useful and informative analogues for the measures to be adopted or avoided when the attempt is made to raise the ethical standards of business.Given this focus on the professions, it will be argued that the usual, direct attempts to control unethical behaviour by using codes of ethics, legislation and self-regulatory regimes, are not successful. (shrink)

There has been much controversy concerning the benefits of the certification (professionalization) of financial planners and the merits of various compensation systems; this study examined the controversy insofar as it concerned ethical orientation rather than competence issues. The study was delimited to financial planners practicing in the United States of America. It was found that Certified Financial Planner (CFP) designees manifested higher ethical orientation scores than non-designees. Fee-based planners manifested no significantly different ethical orientation scores as compared to their counterparts. (...) Lower ethical orientation scores were noted among planners whose career tenure exceeded 10 years. (shrink)

As each week beings more stories of doctors, lawyers and other professionals abusing their powers, while clients demand extra services as at a time of shrinking resources; it is imperative that all practising professionals have an understanding of professional ethics. In _The Ground of Profesional Ethics_, Daryl Koehn discusses the practical issues in depth, such as the level of service clients can justifiably expect from professionals, when service to a client may be legitimately terminated and circumstances in which client confidences (...) can be broken. She argues that, while clients may legitimately expect professionals to promote their interests, professionals are not morally bound to do whatever a client wants. _The Ground of Professional Ethics_ is important reading for all practising professionals, as well as those who study or have an interest in the subject of professional ethics. (shrink)

This book suggests that the umbrella academic organizations step forward and draft a model code of ethics for the profession of higher education.

Throughout the book, Bennett offers a variety of thoughtful suggestions on recovering and strengthening the collegium. He also describes the key intellectual and moral virtues that lie at the heart of the academy's mission to advance learning. Specific strategies for implementing this relational model within the academy are provided, with special attention to the constructive role that chairpersons and deans can play.