Corporate codes of ethics in Australia, Canada and USA : measurement and structural properties of a cross-cultural model

The objective is to test the consistency of measurement and structural properties in a model of corporate codes of ethics (CCE) on an aggregated level and across multiple samples derived from three countries, namely Australia, Canada and the USA. The properties of four constructs of CCE are described and tested, these being: surveillance/training, internal communication, external communication, and guidance. The conclusion is that the measurement and structural models on an aggregated level have a satisfactory fit, validity and reliability. Furthermore, they are consistent when tested on each of the three samples (i.e. cross-validated). The cross-cultural model makes a contribution in addition to previous mostly descriptive studies and theory in the field using confirmatory factor analysis and structural equation modeling.

Implementation, communication and benefits of corporate codes of ethics : an international and longitudinal approach for Australia, Canada and Sweden

This paper examines the implementation, communication and benefits of corporate codes of ethics by the top companies operating in Australia, Canada and Sweden. It provides an international comparison across three continents. It is also based on a longitudinal approach where three national surveys were performed in 2001–2002 and replications of the same surveys were performed in 2005–2006. The empirical findings of this research show in all three countries that large organisations indicate a substantial interest in corporate codes of ethics. There are, however, differences in the ways that the companies in each country implement and communicate their corporate codes of ethics and the benefits that they see being derived from them. The longitudinal comparison between 2001–2002 and 2005–2006 indicates changes in the implementation, communication and benefits of corporate codes of ethics in the three countries.

A construct of the 'ethos of codes of ethics' (ECE) : the case of private and public Sweden

Purpose – The objective of this paper is to develop and describe a construct of the “ethos of the codes of ethics” (i.e. an ECE construct) in the private and public sectors of Sweden.

Design/methodology/approach – The paper takes a cross-sector approach to codes of ethics amongst the top private sector companies and the top public sector organisations. The paper then examines the measures put in place by the dual sample in order to describe the ethos of their codes of ethics.

Findings – The multivariate techniques used in the statistical analysis indicated that the ECE-construct consists of five dimensions: ethical bodies, ethical tools, ethical support procedures, internal ethics usage, and external ethics usage.

Research limitations/implications – It should be noted that the ECE construct has been derived from large companies and organisations in private and public Sweden, which may indicate less applicability to smaller operations. Another limitation may be the validity and reliability across other cultural samples. The dual sample contains a variety of different types of operations, but it may not be transferable to other countries.

Practical implications – The outcome is based on data from private companies and public organisations that indicated they had corporate codes of ethics. Therefore, a suggestion for further research is to examine the ECE construct in other countries/cultures that differ from the ones in this research effort performed in the private and public sectors of Sweden.

Originality/value – The ECE construct introduced makes a contribution to theory and practice in the field as it is based upon a dual sample. It makes a contribution to theory as it outlines a construct for the benefit of other researchers working in both the private and the public sectors. The authors also believe that it may be of managerial interest as it provides a grounded framework of areas to be considered in the implementation of the codes of ethics in both private companies and public organisations.

Inculcating the ethos of public-sector codes of ethics in Sweden : a longitudinal approach

Purpose – The purpose of this paper is to examine the measures put in place by the largest public sector organizations in Sweden in order to communicate the ethos of their codes of ethics to their employees.

Design/methodology/approach – This paper is based upon a longitudinal survey approach.

Findings – In the public sector organizations of Sweden the use of regulations and staff support is rather modest in respect to the inculcation of codes of ethics artefacts into the organisations. This longitudinal approach indicates an overall increase across the examined areas in the usage of measures to support the ethos of public sector codes of ethics.

Research limitations/implications – The artefacts to support the ethos inherent in public sector codes of ethics are rarely explored in the literature. This paper helps to fill this gap with the present longitudinal approach.

Practical implications – One could speculate that society at large and its public sector organizations may have been influenced not only by the scandalous happenings of recent years in Swedish business, but also by the impact of an Anglo-Saxon style of “corporatisation”, whereby public authorities take on the form of a corporation or business brought on by globalisation.

Originality/value – The present paper may be used as a point of reference for further research efforts.

Codes of ethics in large private sector Australian businesses

This thesis deals with codes of ethics in the top 500 companies operating in the private sector in Australia. We seek to answer two questions. First, can businesses adopt codes of ethics in a meaningful way, or are business ethics a contradiction in terms for profit seeking organisations in competitive markets? Second, to what extent do Australia’s top 500 private sector firms show commitment to codes of ethics? A number of ancillary questions are explored to form a picture of the current Australian situation and to compare it to the rest of the world, especially the US and Canada. Chapter 1 discusses these questions and the origins of the author’s interest in business ethics. This chapter develops a focus upon codes of ethics and their role in assisting to establish and maintain an ethical culture. The chapter looks at previous research on codes of ethics and demonstrates a lack of understanding in Australia on the subject and the need for research into it. Also included in Chapter 1 is the plan for the thesis. Chapters 2 to 4 review the literature upon which the thesis is based. In Chapter 2, the meaning of the terms ethics and business ethics are considered. Deontological and teleological approaches are distinguished and a (largely) teleological model of business ethics is developed. This chapter also asks whether business ethics are possible. The contention that ethics may be good for a business’s profit is explored in-depth and the conclusion is reached that ethics should be pursued for its inherent worth regardless of the economic benefit that can be attributed to it. A number of models of ethical decision making are discussed in Chapter 3 starting with Kohlberg and Kramer (1969). This discussion leads to the conclusion that organisations must create an ethical culture for staff if they require them to embrace ethical practices. If this is a correct conclusion, then the role of senior managers becomes critical in the process. Chapter 4 looks further at the role of senior managers, organisational culture and ethical/unethical behaviour in organisations. The conclusion is that senior managers do play an integral part in shaping the culture of an organisation. Their actions, either overtly or covertly, impact upon their staff and highlight behaviour that the organisation is or is not willing to tolerate. Sims (1991) proposed ten ways to foster an ethical culture and these ideas are set out and further explored through the work of other writers on management ethics. Finally, the link between ethics and strategic planning is examined. In Chapter 5 the methods used for empirical data gathering are described and justified. A number of factors that can lead us to consider a company’s ‘commitment’ to ethics are outlined. A survey of Australian companies was the primary means of data collection. Each question in the survey instrument is listed and explained. Also the survey response rate is reported, as are major demographic characteristics of respondents. Chapter 6 provides the research findings from the survey of the top 500 companies operating in the private sector in Australia. The research examines: i) the current Australian usage and implementation of codes of ethics; ii) the measures put in place in organisations in order to support a code; From this analysis conclusions are drawn about the ‘commitment’ of companies operating in Australia to codes of ethics. Australian companies are becoming aware of the potential of code usage. Companies operating in Australia that have codes appear to be good at implementing codes and examining staff performance in relation to codes. However, they lack the procedures that incorporate education and training and the implementation of the support mechanisms necessary to enhance employee understanding of the code. In Chapter 7, Australian codes are compared to American and Canadian codes for similarity and disparity. The assessment found that in all three countries codes are primarily concerned with company continuance. Australian codes do tend to be more socially oriented than in the other two countries and also less legalistic. Chapter 8 looks at 4 companies from the first survey that were asked for more in-depth information in a quest to determine current best practice in Australia. These organisations were chosen because they appeared, from the first survey instrument, to have put in place mechanisms to assist employees to better understand the code. The implication is that companies must make a conscious, positive effort to ensure that employees are considered in the process of ethical development. They should have input into the process, rather than just being directed to follow another management initiative. The final chapter summarises the research findings and looks at answers to the two major questions and the seven subordinate empirical questions posed at the start of the thesis. The conclusion reached is that companies operating in Australia appear to be moving towards establishing codes of ethics. Those who already have codes display a real commitment to them. The movement appears to be gathering momentum as more organisations see the value of incorporating ethical business practices into the every day workings of their individual companies. Generally, most Australian companies lag behind the rest of the world, but the pace-setting companies are defining their own best practice and achieving positive outcomes for themselves, their employees and other stakeholders.

Beyond codes of ethics : an integrated framework for stimulating morally responsible behaviour in organisations

This paper contributes to the study of ethics programmes by the building of a theoretical model for implementing an ethics programme and examining the application of this model to an actual implementation case study. Ethics programmes aim at stimulating ethical behaviour in the organisation and assisting employees to act in a morally responsible way. It is proposed that for an organisational ethics programme to be effective, five dominant conditions are necessary: awareness of formal organisational goals and corresponding informal norms; suitable procedures for decision making; correct distribution of resources; presence of necessary skills; and personal intentions for ethical behaviour. Following detailed discussion of each condition, and with reference to an actual case example, the conditions will be further developed and supplemented with suggested organisational activities that could be used to support these conditions.

Codes of ethics

This chapter initially examines the motivations for the adoption of codes, the frequency of use and the likely content, including those for use in the international context. This is then followed by a discussion of the criticisms of codes as well as the indicators of their effectiveness. The chapter concludes with an examination of the more pragmatic dimensions associated with the implementation, the enforcement, the influence of corporate culture and leadership.

Measurement and structural properties of organizational codes of ethics in private and public Sweden

Purpose – The purpose of this paper is to test the measurement and structural properties in a model of organizational codes of ethics (OCE) in Sweden.

Design/methodology/approach – The measurement and structural properties of four OCE constructs (i.e. surveillance/training, internal communication, external communication, and guidance) were described and tested in a dual sample based upon private and public sectors of Sweden.

Findings – Results show that the measurement and structural models of OCE in part have a satisfactory fit, validity, and reliability.

Research limitations/implications – The paper makes a contribution to theory as it outlines a set of OCE constructs and it presents an empirical test of and OCE model in respect to measurement and structural properties. A number of research limitations are provided.

Practical implications – It provides a model to be considered in the implementation and monitoring of OCE. The present research provides opportunities for further research in refining, extending, and testing the proposed OCE model in other cultural and organizational settings.

Originality/value – The OCE model extends previous studies that have been predominately descriptive, by using confirmatory factor analysis and structural equation modeling.

Communicating the ethos of corporate codes of ethics in the UK and the USA

Business ethics has been a consideration for corporations in the USA since at least the early 1960s, whilst in the UK this interest in business ethics appears to be just over 20 years old. In a survey of the top 500 companies operating in the private sector in the UK and the USA, it would appear that corporations operating in the UK have embraced the ethos of codes of ethics differently to their USA counterparts and that this difference may well be in line with their different adoption rates over the last 50 years of the need for business ethics in organizations. The USA seems to lead the UK in most areas, except when it comes to ethical audits and incorporating the ethics code into the strategic planning process. Could this omission in respect to strategic planning be the Achilles Heel of US business?

A cross-cultural construct of the ethos of the corporate codes of ethics: Australia, Canada and Sweden

The objective of this paper is to develop and describe a construct of the ethos of the corporate codes of ethics (i.e. an ECCE construct) across three countries, namely Australia, Canada and Sweden. The introduced construct is rather unique as it is based on a cross-cultural sample seldom seen in the literature. While the outcome of statistical analyses indicated a satisfactory factor solution and acceptable estimates of reliability measures, some research limitations have been stressed. They provide a foundation for further research in the field and testing of the ECCE construct in other cultural and corporate settings. We believe that the ECCE construct makes a contribution to theory and practice in the field as it outlines a theoretical construct for the benefit of other researchers. It is also of managerial interest as it provides a grounded framework of areas to be considered in the implementation in organizations of corporate codes of ethics.

A cross cultural comparison of the contents of codes of ethics: USA, Canada and Australia

This paper examines the contents of the codes of ethics of 83 of the top 500 companies operating in the private sector in Australia in an attempt to discover whether there are national characteristics that differentiate the codes used by companies operating in Australia from codes used by companies operating in the American and Canadian systems. The studies that were used as a comparison were Mathews (1987) for the United States of America and Lefebvre and Singh (1992) for Canada. The major conclusion is that, whilst Australian codes do have some characteristics that differentiate them from the other two groups, it appears that companies in all three cultures are driven by the same motives to develop codes.