Commitment to business ethics in UK organizations

Purpose – The purpose of this research is to determine the commitment to business ethics in UK corporations. This study reports on the responses of those organizations that participated in the survey and possessed a code of ethics.

Design/methodology/approach – An unsolicited questionnaire was sent to the top 500 private sector organizations by market capitalization in the UK. A total of 92 companies responded, of which 56 possessed a code of ethics.

Findings – The empirical findings indicate that the processes involved in developing business ethics commitment have begun to be recognized and acted upon at an organizational level. The supporting measures of business ethics commitment appear to be under-utilized by many of these UK organizations. This suggests that many organizations have not so far developed a strong organizational commitment to embedding their codes of ethics into organizational practices.

Research limitations/implications – While the responses provided a rich picture of organizational actions, further research exploring internal culture and attitudes would add to an understanding of organizational commitment.

Practical implications – It is found that in order to influence practice, it is not enough to have the artefacts of an ethical culture, such as codes, without ensuring that all employees are assisted in understanding what is required of them.

Originality/value – Despite a history of business ethics research, there are a limited number of studies seeking to understand UK companies' commitment to ethical codes. The paper provides guidance on steps that organizations can take to develop a higher level of commitment.

Migration intermediaries and codes of conduct: temporary migrant workers in Australian horticulture

Over recent decades, developments in network governance have seen governments around the world cede considerable authority and responsibility to commercial migration intermediaries for recruiting and managing temporary migrant labour. Correspondingly, a by-product of network governance has been the emergence of soft employment regulation in which voluntary codes of conduct supplement hard (enforceable) legal employment standards. This paper explores these developments in the context of temporary migrant workers employed in Australian horticulture. First the paper analyses the growing use of temporary migrant labour in this industry. It then describes how different types of intermediaries interact with this workforce. The paper then outlines both hard and soft employment regulations, and contrasts them with actual employment conditions, questioning how a network governance approach has affected this vulnerable workforce. The paper concludes that changes in network governance of migration and employment relations have emasculated formal legal regulation, leaving market forces to operate without effective or ethical constraints at the expense of the public good.

Management attitudes to corporate governance issues : evidence from Sri Lanka

This study investigates the attitudes of senior managers in Sri Lankan firms to governance issues using a countrywide cross-sectional survey. Respondents from 64 public firms provide information on manager's attitudes to internal control procedures: (1) producing misleading financial reports, (2) providing faulty investment advice, (3) permitting insider-trading, and (4) providing inaccurate advertising. We establish if these attitudes vary with 5 firm-specific factors: industry group, international exposure of firms, size, whether the firm was listed or not, and whether the firm had a written code of ethics. Employing ordinal logistic regression techniques, the results demonstrate significant variation by respondents within different types of firms. Specifically there was little variation to these issues when respondents were classified by industry, with most variation when classified by international involvement. Respondents from firms with significant international exposures were strongly opposed to most practices, while respondents from firms with written codes of ethics were strongly opposed to the production of misleading reports and insider-trading. Interestingly respondents from listed firms were most opposed to insider-trading, while smaller firms were more opposed to misleading advertising than respondents from larger firms. The results have important implications for the implementation of corporate governance practice.

Auditor independence and the nexus with corporate governance-quo vadis?

"Where were the auditors?" Yet again, the independence of the auditor has come under close, critical scrutiny with ongoing collapses of large listed companies, which have global implications for the proper functioning of investment markets. The most recent collapse being that of ENRON in the United States of America, (USA).

"Who are the auditors?" The nexus of auditor independence with corporate governance is examined drawing on Foucault's notion of the relationships between power I knowledge and ethics in the construction of ethical identity. In the face of declining public confidence and demands for more stringent regulation, the tensions between greater self-regulation of auditors by the accounting profession and moves by governments to impose more stringent legislation I regulation, including the creation of public oversight bodies is apparent. This paper presents a comparative analysis of recent developments internationally, with particular reference to South Africa and Australia, intended to more rigorously enforce auditor independence and improve corporate governance. Five key areas identified by various Commissions and regulatory bodies that are regarded as posing significant threats to auditor independence are highlighted. Recommendations for changes to independence requirements in professional codes of ethics and corporate legislation, intended to safeguard auditor independence and to enhance investor protection, are critically examined. It is argued that the "new" independence recommendations while providing more detailed guidance for dealing with the independence threats fail to introduce any new concepts and may be found as ineffective as the plethora of earlier regulations. (This paper represents work in progress, which is intended to spark debate, and accordingly, the authors invite comment from readers to develop further aspects of research into this critical area).

NFC, moral position, socialisation and ethical decision-making

Absolutism (deontology and teleology), moral relativism (individual moral position), and individual and environmental factors are at the crossroads of descriptive ethics research. For several decades, researchers have espoused teleological aspects, such as the punitive influence of codes of ethics, as managerial tools that enhance ethical conduct in organisations. The current study modelled the individual factors of need-for-cognition (NFC), individual moral position, and occupational socialisation as influences on the work-norms of marketers. The findings from a survey of marketers suggest that NFC influences the ethical idealism, professional socialisation, and work-norms of marketers positively. The research identifies that encouraging cognitive activities among marketers may be a useful alternative when developing appropriate deontological work-norms and decision-making under ethical conditions in marketing.

Being trustworthy: going beyond evidence to desiring

If educators are to educate they must be accorded some level of trust. Anthony Giddens claims that because trust is not easily created, it is now being replaced with ‘confidence’ because this latter disposition is much easier to give and is more convenient. It is argued in this paper that this shift from trust to confidence stifles education because emphasis is placed solely upon qualifications and competence, and is neglectful of disclosing one’s motives and desires—which are considered to be essential elements for relationships and communities which depend upon trust. Therefore, educators ought to seek to become more trustworthy by going beyond evidence-based practices and codes of ethics, towards articulating a developed personal philosophy of education outlining the ultimate end-purposes to which they aspire. Through such a philosophy, educators identify their ultimate desires and commitments and this self-disclosure can make trust-giving more likely. Demonstrated evidence of achievements and qualifications encourage confidence and this has some value. In addition to these artefacts of evidence, it is argued here that educators must also articulate what they actually desire. This can be understood as John Dewey’s virtue of ‘genuine interest’ which he characterises as being wholehearted, persistent and impartial. For educators, this is often represented in our personal philosophy of education and because it is personal, it is also existential in the sense that it pertains to giving sense, meaning and purpose to all of our activities and way of life for which we are individually responsible and passionately committed to as professionals. As a consequence of being existential, our philosophy and our commitment to it has an intellectual and moral aspect and because it reaches to the very depths of our raison d’être, it pertains to our passion as described by Søren Kierkegaard. This paper shall draw upon Dewey’s notion of wholeheartedness and Kierkegaard’s notion of purity of heart, to make the case that if educators embrace these in their practices, we may become more trustworthy.

Corporate ethics and new technology: an exploratory investigation of advertising activity and world wide web usage

This study explores the ethical standards and behaviour of Australian advertisers and their usage of new technologies. Although corporate ethics has been an issue in the established media of television advertising for some time, there is little research about how companies are adapting in terms of ethics to the new communication technologies. The consumers’ “right to know” was used as a device to assess the ethical standards and behaviour of companies. Findings suggest that the WWW is not used as a means of communicating corporate ethical standards. Results indicate that the method of communicating requests for information does not influence the likelihood of receiving a response from a company. The results also show differences between the ethical standards and the ethical behaviour of those companies who do use the WWW to communicate ethical statements.

The dynamics of business ethics: a function of time and culture-cases and models

Examines the construct of ethics in general and of business ethics in particular. Provides a conceptual discussion of the dynamics of ethics in society and the dynamics of business ethics in the marketplace. Ethics and business ethics constructs are dependent upon two principal parameters – time and culture. Eventually, ethics and business ethics are about what is perceived as acceptable or unacceptable at a specific time and in a specific cultural setting. What was ethical yesterday may not be ethical today, and what is ethical today may not be ethical tomorrow. Furthermore, both the company’s view and the views of others may determine what is acceptable or unacceptable in business ethics. This is a social construction that may differ between the parties involved in a specific context. The discussion is supported by two brief and different cases from the automobile industry. This research contributes a set of generic models that examine business ethics dynamics.

Teachers' professional ethics and student relationships : how do these connect?

Formal statements about 'professional ethics' for teachers have become part of the current standards and accountability regime. Such codes of conduct serve many purposes: to define acceptable principles of personal and professional relationships; as a set of protocols by which teachers' conduct may be judged both within and outside the profession; as a political exercise to reassure the wider community of the high expectations held by the teaching profession; and importantly, to provide teachers with a guide in their interactions with students. While relationships with students, particularly those that will enhance learning outcomes, are cited often in teachers' codes of professional ethics, how teachers make ethical decisions concerning students is far less studied and understood. What frames of reference are available to ensure that decisions are (and are seen to be) right, fair and just? How might such ethical frameworks be examined?

Objections to the teaching of business ethics

To date the teaching of business ethics has been examined from the descriptive, prescriptive, and analytical perspectives. The descriptive perspective has reviewed the existence of ethics courses (e.g., Schoenfeldtet al., 1991; Bassiry, 1990; Mahoney, 1990; Singh, 1989), their historical development (e.g., Sims and Sims, 1991), and the format and syllabi of ethics courses (e.g., Hoffman and Moore, 1982). Alternatively, the prescriptive literature has centred on the pedagogical issues of teaching ethics (e.g., Hunt and Bullis, 1991; Strong and Hoffman, 1990; Reeves, 1990; Castro, 1989; George, 1987; Golenet al., 1985) and in providing recommendations for teachers of business ethics (e.g., Nappi, 1990; Hosmer and Steneck, 1989). From the analytical perspective judgments have been made as to whether courses in ethics are in fact effective in achieving value and attitudinal modifications in students (e.g., Loeb, 1991; Weber, 1990; Wynd and Mager, 1989; Pamental, 1989; Martin, 1982; Purcell, 1977). The evidence to date suggests that courses can be a means of achieving ethical awareness and sensitivity in students although it should be recognized that significant objections to the teaching of business ethics do exist and greatly inhibit their successful introduction. This paper addresses a number of the common objections to the teaching of business ethics that must be overcome if ethical programs are to continue in the future, and concludes with recommendations to facilitate the establishment of ethical training in an academic context.

Teachers’ ethics : education international and the forging of professional unity

The paper maintains that the current era, marked by a new global economy transforming economic and social development, has created the need for a reorganisation of teachers’ representation. This paper discusses a key development in teacher organisation, namely the emergence of Education International as a global hub for teacher unionism from across the world. This unique organisation, formulated in response to the emergence of global economies and supra-national figures, represents teachers’ response to globalised institutions and has instigated projects, such as the Professional Code of Ethics, which aim to create a sense of professional identity and unity amongst teachers. The organisation presents the political voice of teachers as a global collective that seeks to embed teachers’ interests in education reform and in the public debates concerning the direction of educational change in the era of globalisation. The paper concludes by outlining an ongoing issue that jeopardizes the collective voice of teachers and stresses how this needs to be further addressed in the ethical frameworks of what it means to be a teacher in the 21st century.