Strategic approaches of corporate codes of ethics in Australia: a framework for classification and empirical illustration

Purpose - Research has so far not approached the contents of corporate code of ethics from a strategic classification point of view. Therefore, the objective of this paper is to introduce and describe a framework of classification and empirical illustration to provide insights into the strategic approaches of corporate code of ethics content within and across contextual business environments.

Design/methodology/approach - The paper summarizes the content analysis of code prescription and the intensity of codification in the contents of 78 corporate codes of ethics in Australia.

Findings - The paper finds that, generally, the studied corporate codes of ethics in Australia are of standardized and replicated strategic approaches. In particular, customized and individualized strategic approaches are far from penetrating the ethos of corporate codes of ethics content.

Research limitations/implications - The research is limited to Australian codes of ethics. Suggestions for further research are provided in terms of the search for best practice of customized and individualized corporate codes of ethics content across countries.

Practical implications - The framework contributes to an identification of four strategic approaches of corporate codes of ethics content, namely standardized, replicated, individualized and customized.

Originality/value - The principal contribution of this paper is a generic framework to identify strategic approaches of corporate codes of ethics content. The framework is derived from two generic dimensions: the context of application and the application of content. The timing of application is also a crucial generic dimension to the success or failure of codes of ethics content. Empirical illustrations based upon corporate codes of ethics in Australia's top companies underpin the topic explored.

Corporate ethics in TQM: management versus employee expectations and perceptions

Purpose – The objective of this research is to develop and describe a conceptual framework of corporate ethics in total quality management (TQM).

Design/methodology/approach – The research is based on a summarised in-depth and longitudinal case illustration. The summarised case describes corporate ethics in an intra-corporate relationship.

Findings – TQM requires human resources and failing to care for them will affect accordingly the success of TQM. The case description illustrates the evolution of management versus employee expectations and perceptions of corporate ethics. It has an emphasis on the human resources of a company that strives towards TQM. As the quality of corporate ethics decreases the outcome of TQM is also affected (i.e. directly or indirectly). The case is initialised in an atmosphere of management and employee optimism and positivism of corporate ethics, which is a requisite from both parties in order to ensure prosperous TQM. The successive change towards pessimism and negativism of corporate ethics in the intra-corporate relationship concludes the in-depth case description.

Research limitations/implications – Four parameters of corporate ethics are used to incorporate corporate ethics into TQM, namely management versus employee expectations and perceptions. Internal corporate quality management should always be regarded as dependent upon the achieved equilibrium between management and employee perceptions. It is also dependent upon the derived equilibrium between management and employee previous expectations.

Practical implications – An important insight of this research is that TQM requires the continuous attention to the management versus employee expectations and perceptions inherent in corporate ethics of internal business operations. Furthermore, corporate ethics is complementary to business ethics.

Originality/value – The case description has shown that TQM may be running well and accomplishing the hard goals. However, TQM is not only about figures, profits and costs. It is also a business approach that should penetrate all activities inside and outside that are related to the company, including the soft issues.

Cultural impact on Chinese corporate disclosure-a corporate governance perspective

Purpose – The purpose of this preliminary study is to explore the impact of changed cultural environment on the voluntary disclosure behaviour of Chinese listed companies.
Design/methodology/approach – A theoretical framework of the relationship between corporate disclosure and governance forms the basis of the research. A composite checklist of corporate disclosure was developed using relevant corporate governance indices and analyses were carried out on the 2003 financial reports of 120 Chinese listed companies. Six areas of voluntary disclosure of the sample companies were analysed and reported. These areas are: board structure and functioning, employees related issues, director remuneration, audit committee, related party transactions and stakeholder interest.
Findings – The results suggest that as China's cultural and social norms change, there was willingness of Chinese listed companies to provide voluntary information in addition to the disclosure requirements. Information relating to stakeholder interest and employees issues are found more frequently disclosed by listed companies than those which were regarded as sensitive. This is an exploratory study which shows that further research may provide more concrete evidence of the changing corporate disclosure environment in China.
Research limitations/implications – This study based on one year's results and as such has limitation in the interpretation of the results. Further research is necessary to demonstrate the impact of culture in corporate disclosure.
Practical implications – The results have practical implications for professional accountants and auditors to understand further the trend of voluntary disclosure in China. The paper provides some evidence of the changing scene of Chinese corporate governance practice.
Originality/value – This study fulfils a gap in prior research by examining the effect of cultural implications in corporate governance, in an emerging economy. The composite voluntary disclosure checklist will serve a good basis of measurement in corporate disclosure.

Green products and corporate strategy : an empirical investigation

Purpose – The purpose of the study is to examine the influence of multiple factors on the green purchase intention of customers in Australia.

Design/methodology/approach – A conceptual model is proposed and was subjected to empirical verification with the use of a survey of metropolitan and regional households in Victoria, Australia. The data were analyzed using both descriptive measures and exploratory factor analysis to identify and validate the items contributing to each component in the model. AMOS structural modeling was used to estimate the measure of respondents' overall perception of green products and their intention to purchase.

Findings – The results indicate that customers' corporate perception with respect to companies placing higher priority on profitability than on reducing pollution and regulatory protection were the significant predictors of customers' negative overall perception toward green products. The only positive contribution to customers' perception was their past experience with the product. Other factors including the perception of green products, product labels, packaging, and product ingredients did not appear to influence customers' perception. The results also indicate that customers are not tolerant of lower quality and higher prices of green products.

Research limitations/implications – The knowledge of the overall perception formation about green products and its predictors provides management with the facility to identify and implement strategies that may better influence the change of attitude by customers. Corporations can also benefit from the identification of the types of information required to enable management to influence this process of perception formation.

Originality/value – The present findings contributes to an understanding of the antecedents of green purchasing and highlight that green customers rely more on personal experience with the product than the information provided by the marketer.

Codes of ethics in corporate Sweden

Purpose – The purpose of the study is to examine and describe the use of codes of ethics in the top 100 companies operating in the Swedish corporate sector. This paper reports on the responses of those companies that possessed a code of ethics.

Design/methodology/approach – A three-stage research procedure was used. First, a questionnaire was sent to the public relations managers of the top 100 companies operating in the Swedish corporate sector (based on revenue). Companies were asked to answer up to 29 questions and to supply a copy of their code of ethics. The second stage involved content analysis of the codes of ethics supplied by survey respondents. The third stage involved a more detailed follow-up of a smaller group of firms that appeared to be close to best practice. Findings for Stage 1 of the research are reported in this paper. The areas of questioning were: how common are codes of ethics? Who was involved in the development of these codes? What are the reasons for the codes? How are they implemented? Do companies inform internal and external publics of the codes? What are the prescribed benefits of the codes?

Findings – It would appear that business ethics has only recently become a topic of interest in corporate Sweden and that many companies are in the early stages of code development and assimilation into company policies. The incidence of codes in the population (of 100) suggested by this survey (56 per cent) is lower than a US study finding (in 1995) that over 84 per cent of comparable US companies had codes of ethics. It would appear that Sweden today lags behind the US situation of 1995. When one investigates the special measures to support the inculcation of ethical values at the organizational level, there appears to be some shortfall. The supporting measures of ethics committees, ethics training committees, ethics training, ombudsman, an ethical audit and procedures to protect whistleblowers appear to be under-utilized in companies that possess codes. This lack of utilization tends to suggest that companies in Sweden, as yet, either have not developed a high commitment to supporting business ethics in their corporations, or they may have developed other methods to support their codes in their organizations that they view are as beneficial as the traditional methods practised in other western industrial democracies.

Research limitations/implications – This research was limited to internal ethical expectations. The commitment to business ethics is usually explored in terms of internal ethical expectations, but the simultaneous consideration of the external ethical expectations in the marketplace (e.g. among suppliers and customers or other publics) is desirable. A dyadic approach considering a company's internal ethical expectations and the external ethical expectations of a company's business activities may give a more balanced and in-depth approach.

Practical implications – Evidence is now available to show that codes of ethics are well developed in many of Sweden's largest corporations: organizations that, from their responses, appear to see a diverse range of benefits in developing the area of business ethics. Companies are beginning to implement not only a code of ethics, but other complementary initiatives that reinforce the need for the culture of the organization to be ethical. Codes of ethics are perceived by organizations to have assisted them in their dealings in the marketplace and many companies use their ethical values to underpin their strategic planning process. It appears that many companies now see the formalisation of business ethics as an integral part of their commercial practices.

Originality/value – This study is the first one of its kind on codes of ethics in corporate Sweden. It will enable all sectors of Swedish business to benchmark their efforts against the major companies in the Swedish corporate sector.

Implementation, communication and the benefits of corporate codes of ethics in Taiwan and Turkey : a comparison across contexts

Purpose – The purpose of this paper is to examine the corporate codes of ethics (CCE) that are put in place by companies in Taiwan and Turkey.

Design/methodology/approach – This study examines the use of CCE among the top companies in Taiwan and Turkey. It is a replication of a study performed in Australia, Canada and Sweden and a follow-up study.

Findings – The empirical findings show many similarities with top companies in Australia, Canada and Sweden, but more importantly identify key differences distinctly unique to each of the two countries under investigation. Statistical analysis suggests that the implementation, communication and benefits of CCE are paramount to Turkish companies operating in a domestic environment where the aspiration to participate globally and join the European Union is high, whereas in Taiwan it is low in favor of more traditional business practices (similar to the Chinese concept of guanxi) that focus on individual relationships in favor of formalized regulatory frameworks (such as CCE).

Originality/value – This study makes a complementary contribution to the accumulated knowledge in the area of CCE, particularly given the cultural and historical differences these countries possess in comparison to each other and those previously studied and documented in the literature.

Reflexive and critical views of leadership performance in corporate accomplishment : framework and illustration

Purpose – This paper intends to shed some light on the relationship between leadership performance and corporate accomplishment through the aid of complexity sciences. The objective is to describe leadership performance in corporate accomplishment using different teleological approaches.

Design/methodology/approach – The paper discusses the underlying criteria of the relationship between leadership performance and corporate accomplishment. Case illustration and narrative analogy are also provided.

Findings – The authors believe that the discussion highlights a potential downside of leadership performance in corporate accomplishment and its precision rarely highlighted in practice and literature.

Research limitations/implications – There is a reigning assumption in management practice that is based on the belief that a top-down approach of leadership performance in management and business practices is superior to the bottom-up approach. It proffers the assumed importance of strategic management issues, but neglects the knowledge, experience, competence and awareness inherent among employees at tactical and operational levels of business practices. It also proffers a mechanical view of employee performance and ignores the worth of the generation of ideas from subordinates in management and business practices that contribute to corporate achievements. Furthermore, it neglects the fact that it is not possible to know the future nor it is predictable.

Practical implications – The paper contends that the importance of top management tends to be inflated in respect to corporate achievements in the management/leadership literature. It also contends that it should be questioned as to whether the top management of corporations are largely responsible for the corporate results on which they attempt to justify their salaries and other benefits. Furthermore, the paper contends that it also should be questioned as to what extent corporate accomplishment may be derived from the performance of the top management in organizations.

Originality/value – The paper strives to contribute to the ongoing discussion of leadership performance in corporate accomplishment in various ways. The principal contributions are: a set of teleological sub-processes of leadership performance and a case illustration and narrative analogies of teleological leadership performance patterns, in respect to corporate accomplishment in management and business practices. These contributions provide theoretical and managerial ideas and insights to anticipate and avoid deficient or erroneous grounds of leadership performance evaluation in corporate accomplishment.

Corporate social responsibility, new activism and public relations

Purpose – This paper aims to analyse why some contemporary corporate organisations are reluctant to articulate the effect of their market positioning behaviour on the unwilling communities that oppose their activities. It describes the communicative interactions between several large corporate organisations and the grassroots activist groups opposing their activities, in Victoria, Australia.

Design/methodology/approach – Extensive secondary data were collected, including extensive newspaper and radio transcripts from the campaign periods, web site downloads, letters and other campaign documents. The research design applied to the data, a qualitative, interpretative analysis, drawing on key theoretical frameworks.

Findings – The research findings suggest that powerful protest strategies, combined with the right political and social conditions, and a shift in the locus of politics and expertise, bring to light public concerns about the ethics of corporate practices, such as public relations, used egocentrically by organisations, to harmonise their activities in late modern Western society. It finds that no serious overhaul of business ethics can occur until the unity of public relations is critically scrutinised and reformed. It helps define an alternative holistic communicative approach which could be applied more widely to business practice that helps avoid the limitations and relativism of public relations.

Originality/value – The research flags new ways of thinking expressed in the notion of public communication that could lead to creative and unusual coherences vital to deal with the apparent ecological challenges for society in late modernity.

Ten principles of corporate citizenship

Purpose – This paper aims to reflect briefly on some of the major principles that have emerged from the developing policies, practices and debates about corporate citizenship in the last ten years or so.
Design/methodology/approach – Considerable scholarly work has been conducted on corporate citizenship in the past, and will continue to be done in the future. This paper is deliberately written for a non-scholarly audience.
Findings – Ten principles are outlined, all of them focusing on developing a cultural aspect of corporate citizenship as good business.
Originality/value – The basic premise of this paper is that significant cultural change, through corporate citizenship will only take place by business implementing policies, and practices based on the sort of sound (but basic) principles presented here. These ten principles, in this format, are original to this paper.

Gambling and corporate social responsibility (CSR) : re-defining industry and state roles on duty of care, host responsibility and risk management

During the 1990s, states embraced legalised gambling as a means of supplementing state revenue. But gaming machines (EGMs, pokies, VLTs, Slots) have become increasingly controversial in countries such as Australia, Canada and New Zealand, which experienced unprecedented roll-out of gaming machines in casino and community settings; alongside revenue windfalls for both governments and the gambling industry. Governments have recognised that gambling results in a range of social and economic harms and, similar to tobacco and alcohol, have introduced public policies predicated on harm minimisation. Yet despite these, gaming losses have continued to climb in most jurisdictions, along with concerns about gambling-related harms. The first part of this article discusses an emerging debate in Ontario Canada, that draws parallels between host responsibility in alcohol and gambling venues. In Canada, where government owns and operates the gaming industry, this debate prompts important questions on the role of the state, duty of care and regulation ‘in the public interest’ and on CSR, host responsibility and consumer protection. This prompts the question: Do governments owe a duty of care to gamblers?

The article then discusses three domains of accumulating research evidence to inform questions raised in the Ontario debate: evidence that visible behavioural indicators can be used with high confidence to identify problem gamblers on-site in venues as they gamble; new systems using player tracking and loyalty data that can provide management with high precision identification of problem gamblers and associated risk (for protective interventions); and research on technological design features of new generation gaming products in interaction with players, that shows how EGM machines can be the site for monitoring/protecting players. We then canvass some leading international jurisdictions on gambling policy CSR and consumer protection.

In light of this new research, we ask whether the risk of legal liability poses a tipping point for more interventionist public policy responses by both the state and industry. This includes a proactive role for the state in re-regulating the gambling industry/products; instituting new forms of gaming machine product control/protection; and reinforcing corporate social responsibility (CSR) and host responsibility obligations on gambling providers – beyond self-regulatory codes. We argue the ground is shifting, there is new evidence to inform public policy and government regulation and there are new pressures on gambling providers and regulators to avail themselves of the new technology – or risk litigation

Corporate governance, firm characteristics and risk management committee formation in Australian companies

Purpose – The purpose of this paper is to examine how a risk management committee (RMC), as a newly evolving sub-committee of the board of directors, functions as a key governance support mechanism in the oversight an organisation's risk management strategies, policies and processes. However, empirical evidence on the factors associated with the existence and the type of RMCs remains scant.

Design/methodology/approach – Using an agency theory perspective, this study investigates the association between board factors such as proportion of non-executive directors, Chief Executive Officer duality, and board size; as well as, other firm-related factors (e.g. auditor type, industry, leverage, and complexity), and the existence of a RMC, and the type of RMC (namely, a separate RMC versus one that is combined with the audit committee). Data was collected from the annual reports of the top 300 Australian Stock Exchange (ASX)-listed companies.

Findings – The results, based on logistic regression analyses, indicate that RMCs tend to exist in companies with an independent board chairman and larger boards. Further, the results also indicate that in comparison to companies with a combined RMC and audit committee, those with a separate RMC are more likely to have larger boards, higher financial reporting risk and lower organisational complexity.

Research limitations/implications – Data limited to top 200 top ASX-listed companies, thus restricting generalisability of the results.

Originality/value – The findings of this study provide additional information on the use and design of RMCs in a voluntary setting.

A holistic model of corporate governance - a new research framework

Purpose – The purpose of this paper is to propose a new model of corporate governance that is holistic – incorporating internal and macro perspectives across legal, regulatory, sociological, ethical, human resource management, behavioural and corporate strategic frameworks. Researchers have signalled the need for “new theoretical perspectives and new models of governance” due to a dearth of research that is context-driven, empirical, and encapsulating the full spectrum of reasons and actions contributing to corporate crises.

Design/methodology/approach – The approach consists of theory building by reviewing the literature and examining the gaps and limitations.

Findings – The proposed model is a distinctive contribution to theory and practice in three ways. First, it integrates the firm-specific, micro factors with the country-specific, macro factors to illustrate the holistic nature of corporate governance. Second, shareholders and stakeholders are shown to be only one component of the model. Third, it veers away from singular approaches, to dealing with corporate governance using a multi-disciplinary perspective. The paper argues that such a holistic and integrated view is a necessity for understanding governance systems.

Research limitations/implications – The challenge is to operationalize the model and test it empirically.

Practical implications – The model is instructive and of use for practitioners in attempting to understand, explain and develop governance models that are appropriate to their national and industry settings.

Originality/value – This paper argues that narrow-based models are limited in their approach and in a sound and integrative review of the up-to-date literature contributes to theory-building on corporate governance.

Management framework for corporate telecommunication and data centre information security

Network security, particularly Internet security, is at the forefront of business and government networks. This research has discovered weaknesses in current professional practice, particularly in mitigation strategies to reduce the impacts of security violations in corporate telecommunications and data centres. The importance of integrating security policies, processes and operational practice is demonstrated. Leadership models and innovation mechanisms best suited to improved security design are also identified.

Executive compensation and corporate governance with special reference to Bangladesh; some emerging issues

This discussion paper considers corporate governance issues associated with executive compensation arrangements. An historical perspective is used to demonstrate the absence of a sound empirically-based understanding of good corporate governance practices in relation to share-based payment arrangements. The paper provides an overview of issues including the potential earnings dilution and volatility effects of the introduction of regulations affecting executive remuneration. Potential future research questions have been framed addressing each of the major issues identified in this paper. We conclude that corporate regulators should ensure they are familiar with and consider best practice models for corporate governance when developing new, or revising existing business regulation. It is proposed that further research to remedy this deficiency would enable a more accurate assessment of the impact of management on accounting regulation and the better design and implementation of regulation.

Disrobing the emperor : mainstream CSR research and corporate hegemony

Purpose – This paper aims to utilise a typological matrix as the basis to categorise various corporate-society interventions. It aims to argue that an instrumental version of corporate social responsibility (CSR) is hegemonic in both the theoretical and normative domains of mainstream research, and that this hegemony underpins an intellectual blockage that prevents the field from achieving critical reflexivity and ultimately, a justifiable raison d'e^tre.

Design/methodology/approach – The paper reflects on the extant CSR literature in the context of globalisation; presents a two-dimensional typological matrix to be used in positioning corporate-society interventions; provides examples of particular activities relevant to each quadrant of the matrix; and considers the wider political economy of CSR research.

Findings – The logical implications of the corporation as an institution behaving in increasing accordance with the normative expectations of mainstream CSR scholarship will likely lead in the direction of increasing corporate hegemony.

Practical implications – The paper proposes the adoption of the more theoretically coherent and empirically precise terms enlightened self-interest and corporate social irresponsibility in CSR and related research streams, as well as the institutional relocation of much future CSR research to disciplinary areas outside of the business school.

Originality/value – The typological matrix presented in this paper offers a new way of locating corporate-society interventions. The partial abandonment of the term “CSR” by researchers, as well as the institutional relocations of much CSR research, are original notions.