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.

An anthology of codes of ethics

Purpose – Corporate codes of conduct originated around 1900 in the USA gaining further momentum in the 1950s in relation to anti-trust legislation. Subsequently, the adoption of codes of ethics has spread throughout the world and they now feature extensively in many organisations. The literature relating to codes of ethics, therefore, spans many decades and is undoubtedly comprehensive. The purpose of the paper is to provide an appropriate anthology of codes of ethics.
Design/methodology/approach – A descriptive, historical, anthological approach has been taken.
Findings – This paper examines the motivations for the adoption of codes of ethics, which naturally also includes international codes, their frequency of use and content. Codes are also not without critique and it is appropriate to highlight the criticisms of codes, to provide an assessment of their potential effectiveness, the issues surrounding implementation and enforcement and the relationship to organisational culture and leadership.
Research limitations/implications – As noted, the literature on codes of conduct is extensive and while effort has been made to capture the key themes the review is not necessarily exhaustive.
Originality/value – The literature is characterised by the means of institutionalising ethics in organisations and the paper concludes with a summative reflection on the key dimensions that appear to be paramount for improving the efficacy of codes of conduct.

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.

How do Australian small and medium enterprises communicate their corporate social responsibility activities online?

Much of the existing research on Corporate Social Responsibility (CSR) focuses on large firms, with comparatively little on Small and Medium Enterprises (SMEs). The SME research focuses on barriers and drivers to CSR and neglects how SMEs communicate their CSR activities. This paper addresses this gap by reporting on a content analysis of 443 Australian SME websites which identifies how they are using this channel to communicate their CSR activities.

What should be done : a practical approach to business ethics

The decision-making process in business frequently involves ethical considerations. Although ethics often come down to personal decisions, those decisions ultimately affect the corporate image of an organisation. It has been shown that sound ethics are good for business, and therefore it is important that managers encourage their staff to recognise and to implement the company's ethical priorities. This article looks at practical ways for managers to establish ethical priorities at three levels: an individual level, a group level and an organisational level. Each of these levels is explored, and the benefits and disadvantages of different action-related strategies for encouraging an ethical awareness will vary among companies, industries and cultures – no single method is universally appropriate. However, all managers should consider how ethical standards can best be introduced and communicated throughout their organisation. Ethics is not just a “flavour of the month” – it is here to stay, and presents a challenge to all managers.

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.

Business ethics and the accounting profession

Business ethics emerged as a major public concern following a spate of corporate collapses during the 1980s and early 2000s, Corporate collapses such as HIH and Harris Scarfe in Australia; Enron, Worldcom and Global Crossing in the US; and Parmalat in Europe, have precipitated questions about the business and accounting practices of these firms and the role played by their accountants and auditors, According to Armstrong et al. (2003, p, 1), one can hardly pick up a business publication today without noting some reference to an accounting scandal....The sheer number of accounting abuses serves as prima facie evidence that something more is needed in terms of accounting ethics.

Philosophy, business and ethics

Our desire to be creative and the need for ethics in life can come together in excellent business practices. Ideas from Hegel and Nietzsche show that the intrinsic worth of these practices depends upon the stakeholder life-work ethic (motivation), business ethics (relationships) and responsible corporate governance (authority for decision-making)

Business ethics and accounting students : Australia, South Asia and East Asia

Recent corporate collapses around the world show that there are no national boundaries for these occurrences. Australian corporate collapses including HIH Insurance, One.Tel, Ansett Australia and Harris Scarfe have raised public expectations of investigation of the causes of collapses (Mirshekary, Yaftian & Cross, 2005). The main reason for the collapse of HIH was mismanagement, with an emphasis more on the directors’ personal qualities such as integrity, honesty and morality rather than tougher legislation and rules. Accounting students are our future business leaders. The teaching of ethics in the classroom to multicultural groups of students provides an opportunity to facilitate the sharing of knowledge, and to increase interaction and debate around different approaches to ethics among students from different countries.
This study uses previous literature to explain the attitudes of accounting students towards academic and business/accounting ethics at an Australian university which is a multi-campus institution undertaking programs and activities at regional, national, international levels and by distance education.
This study reports the results of cross-cultural investigations of students’ ethical perceptions on moral values, academic and accounting/business vignettes, given that all students share the same learning opportunities, knowledge of ethics and interaction with their peers and lecturers. The results indicate no significant differences in responses between the students from Australia, South Asia and East Asia.

A critical review of relations between corporate responsibility research and practice

This essay identifies epistemological, theoretical and methodological problems in a potentially influential subset of the interdisciplinary corporate responsibility literature, that which appears in the management literature. The received conceptualization of stakeholder analysis is criticised by identifying six sets of factors conventionally considered as promoting social responsibilities in the firm: inter-organizational factors, economic competitors, institutional investors, end-consumers, government regulators and non-governmental organizations. Each is addressed on conceptual grounds, its empirical salience in terms of the latest relevant research and prospects to be a significant factor in promoting outcomes consistent with social welfare. Despite obvious antagonistic relations between organization-centred economic objectives and extra-organizational-directed social considerations, the huge body of research we address drifts in a disengaged Sargasso Sea. The essay argues for appropriate directions for continuing business ethics/responsibility/corporate citizenship research, suggesting certain sociological works on moral leadership, moral courage, and academic leadership.

About global leadership and global ethics, and a possible moral compass : an introduction to the special issue

This paper reviews a number of huge challenges to ethical leadership in the twenty-first century and concludes that the need for global ethical leadership is not merely a desirable option, but rather – and quite literally – a matter of survival. The crises of the recent past reveal huge, and in some cases criminal, failures of both ethics and leadership in finance, business and government. We posit that mainstream economic theory’s construct of ‘homo economicus’ and its faith in the ‘invisible hand’ of the market constitute deeply flawed foundations upon which alone policy may be built and, farthermore, that these problematic foundations exert substantial shaping power over the institutional and discursive landscapes in which international business is transacted. Analogously, we argue that dominant approaches to business ethics and corporate social responsibility are, if not incorrect, at least in need of revisiting in terms of questioning their basic assumptions. Instead of the smugness of Western (especially Anglo-American) attitudes towards other ways of thinking, valuing and organising, it appears clear that openness, cooperation and co-creation between the developed and developing worlds is a basic prerequisite for dealing with the global challenges facing not just leaders, but humanity as a whole. This objective of stimulating discussion between dominant and marginal voices has guided our selection of papers for this Special Issue. We have thus included not only representatives of research from within the parameters of mainstream business ethics, IB or leadership scholarship, but also innovative contributions from fields such as military history, information technology, regulation, spirituality and sociology.

A model of organizational ethics education

Purpose – This paper aims to propose a model of ethics education for corporate organizations framed as an holistic approach to the problem of how to teach ethics.

Design/methodology/approach – As a conceptual/viewpoint piece, this paper recognizes that for ethics education to be successful, individuals and corporations must have an appreciation of their role in the society at large. In addition, there needs to be preparedness on the part of the corporation to engage in an ethical manner with the marketplace with which it interacts.

Findings – Ethics education should not exist in a vacuum, that is just within the organization, but it should reflect the values of the organization as they impact upon and are impacted upon by society in general.

Research/limitations/implications – This model is predicated on a belief that organizations must craft their ethics education program with as much care and enthusiasm as they craft their strategic plan. The employees are the organization's representatives and they need to be made as clear as one can make them as to the ethical philosophy of the company and what is expected of them. Adults have a capacity for greater reasoning and reflection on their life experiences than children and thus the concept of “andragogy” provides a more satisfactory method to fashion education programs for adults than some more traditional methods that focus on training and not education.

Practical implications – When considering the ethics education of its employees, corporations need to place that education in context as it relates to the organization and the wider society as a whole. It is suggested that an ethics education program needs to provide a framework for understanding the concepts of ethics and moral development. Using this framework as the basis for the education offered, the education program is then expanded into an examination of a range of ethical issues presented in a variety of ways.

Originality/value – This paper proposes an integrated way to approach ethics education that ensures that the antecedents of the program are considered in the context of the ethics of individuals, the society and in turn the organization, hence the holistic approach.

Implanting sustainability in business strategies : CSR, ethics or the law

This paper elucidates the conundrum faced by Australian businesses in developing ‘sustainable’ business strategies that are acceptable to a multiplicity of stakeholders. A content analysis of the web pages for leading Australian companies indicates that there is little tangible evidence that sustainable business practices are being implemented. The authors propose several directions for research into substantive issues between ethical behaviour, corporate social responsibility and environmentally sustainable behaviour for businesses. Each of these areas is developing research in relative isolation. However, we argue that this paradigmatic divide is limiting the opportunities for research to provide real insight into seemingly intractable problems.