Ethical codes and corporate responsibility of the most admired companies of the world: Toward a third generation ethics? (original) (raw)
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Research Question/ Issue: Codes of ethics contain a set of rules of conduct and corporate principles concerning the responsibility to stakeholders and shareholders, which help guide corporate and employees’ behavior, and they constitute verifiable elements of social responsibility. Given the growing concern for social responsibility and for the relationship with external stakeholders, which has become an undeniable social demand, we think that the codes of the most respectable and admired companies should reflect this trend. This study looks into the Most Admired Companies of the World ranked by Fortune magazine in 2009 to find out if their codes of ethics exhibit greater emphasis on social responsibility and strong implementation processes, and whether they could be considered codes of the third generation. Stohl et al. (2009) suggest that the codes of ethics of the most advanced companies should evolve to the “third generation ethics”, which focuses on the long-term perspective and on the global, social and environmental aspects of corporate responsibility sensibility. Research Findings/Insight: Our results show that the codes of ethics of the 2009 Most Admired Companies of the World resemble “codes of conduct” rather than strictly codes of ethics or “codes of corporate social responsibility”. They are still governed by traditional norms related to immediate economic success, normative compliance, internal management and the pressing effects of their sector. Theoretical/Academic Implications: This study provides empirical support for the idea that the philosophy of corporate social responsibility (CSR) is scarcely present in the codes of the most reputable companies.
Exploring trends in the codes of ethics of the Fortune 100 and Global 100 corporations
Purpose – The purpose of this paper is to explore emerging trends in the content of codes of ethics of US Fortune 100 and Global 100 corporate web sites through a longitudinal study. Design/methodology/approach – The web sites of the 200 companies were surfed and the relevant documents of the codes of ethics were extracted to separate text files. The computer files were then mined using the customized developed software and each ethical keyword was counted. The number of filed codes of ethics was 95 for both the 100 US‐based and the 100 Global‐based companies. Findings – In addition to the content analysis of the ethic codes of the studied groups and finding high‐frequency ethical keywords, the results of this study indicate a convergence of the contents. Moreover, the results also show that the ethical codes are now more readily available on corporations’ web sites; that is a sign of higher level of disclosure of ethical codes compared to that in 2006. Finally, this research proposes some hypotheses to explain the changes from 2006 to 2009. Practical implications – Many smaller corporations and start‐up companies can benefit from the results of this study by comparing their codes of ethics with those of the major US and global companies, using key ethical phrases that are discussed here. Moreover, US companies wanting to establish new subsidiaries in other countries can also take advantage of the results of this study. They can find out what are the common dissimilarities between American corporates and other international firms, from ethical point of view, when they want to reach a uniform code of ethics. Social implications – Longitudinal study of the content of codes of ethics can help in encouraging firms to give consideration to ethical issues. This research is the first attempt to study the ethical standards adopted by the major US and global corporations, before and after the global financial crisis. Originality/value – This study analyses the content of codes of ethics of the world's top firms and compares Fortune 500 and global 500 companies, considering the frequency of ethical keywords on their codes. It also compares the similarities and differences and indicates whether the content is divergent or convergent. The study also shows how the disclosure of codes of ethics has changed in the time‐span of research.
a new generation of corporate ethics
Globalization theories posit organizational convergence, suggesting that Codes of Ethics will become commonplace and include greater consideration of global issues. This study explores the degree to which the Codes of Ethics of 157 corporations on the Global 500 and/or Fortune 500 lists include the ''third generation'' of corporate social responsibility. Unlike first generation ethics, which focus on the legal context of corporate behavior, and second generation ethics, which locate responsibility to groups directly associated with the corporation, third generation ethics transcend both the profit motive and the immediate corporate environment. Third generation ethics are grounded in responsibilities to the larger interconnected environment. The results of the study suggest convergence, insofar as Codes of Ethics are becoming standard communication features of corporations across region and industrial sector but still manifest a primary concern with profits and those behaviors which are mandated by law. Only corporations headquartered in the European Union demonstrate a significant degree of global consciousness and reflexivity. However, there is some evidence that third generation ethics and thinking are becoming part of the corporate landscape. More then three quarters of the corporations made at least some reference to third generation ethics.
Corporate Codes of Ethics and Practice
Oxford Research Encyclopedia of Business and Management , 2021
This book chapter provides an overview of how the academic literature on corporate ethics codes and practices has developed across time and space. Our emphasis is on charting this development in a global context. Specifically, we review the academic literature over the last three decades and organize our core findings into three main sections: (1) Evolution in the content of corporate codes of ethics across time and space, (2) evolution in the practice of corporate codes of ethics across time and space and (3) global translation of codes of ethics. We note that while the practice of adopting corporate code of ethics has continued to develop globally, there is a lop-sided emphasis in academic literature focused on codes of ethics in developed nations. Given the persistent prevalence of corporate misconduct despite the adoption of such codes, we identify some important themes and key research questions for guiding future research in the field.
International Journal of Managerial Studies and Research (IJMSR), 2020
How can an ethical-driven company be defined? This paper presents a possible model for an ethical-driven company designed according to the Ethisphere Institute selection survey for the World Most Ethical Companies. The paper also presents how ethics is internalized in companies considered excellent in this field, through the analysis of primary date like companies’ activity reports (annual, sustainability, ethics). We use a qualitative approach since what is intended is not to know what the companies do but how they do it. The research method was the Grounded Theory and the content analysis was done using MAXQDAsoftware. The analysis shows inconsistencies in the use of the word ethics and lack of clarity about what is and what may be the role of ethics in organizations. It also shows that most companies are still in a “compliance mode”, with no real incorporation of ethics in their strategy and core issues. The key point for a decisive ethics incorporation seems to be the adoption of a purpose that encourages action, beyond profitability.
Corporate codes of ethics: necessary but not sufficient
Business Ethics: A European Review, 2008
While most large companies around the world now have a code of ethics, reported ethical malpractice among some of these does not appear to be abating. The reasons for this are explored, using academic studies, survey reports as well as insights gained from the Institute of Business Ethics' work with large corporations. These indicate that there is a gap between the existence of explicit ethical values and principles, often expressed in the form of a code, and the attitudes and behaviour of the organisation. The paper suggests that two basic reasons appear to be at the heart of the problem: ineffective ethics programmes and deficiencies in corporate culture. The paper concludes that successfully embedded corporate ethical values requires well-designed ethics policies, sustained ethical leadership and incorporation of ethics in organisational processes and strategy as part of an ethical culture at all levels of the organisation. It makes some practical suggestions on how this can be achieved.
Corporate Codes of Ethics - The How Factor
2021
Although recognized as a key factor for its effectiveness, the adopted process for the development of a global corporate code of ethics, is one of the least documented aspects by Academia. The code is often created at central level and then sent for adoption and implementation to the different branches within the organisation, and the fact that they are not involved in the development process, frequently elicits resistance and compromises effectiveness. This was initially the case with the company of this study, where it was found that business units from different geographical locations had gradually made adaptations to the original code of the Group, which no longer remained the same across countries, neither in text nor in form, which led to the code review. Developed through an action-research methodology, this case study describes the review process which included 30 people from all the Group companies. All defined goals have been achieved. The different companies’ representati...
Corporate Ethics and Social Responsibility
Ethics requires freedom of action, is transversal to our activity, has a universal character, is innate and represents an absolute value. For all these reasons, it is imperative to train the managers of our society so that they do not engage in ethically objectionable behaviors, such as those that have been occurring in the countless corporate scandals of today. Therefore, the objective of this article is to research, through systematic review, the correlation between professional ethics and corporate social responsibility (CSR). For this, bibliometric analysis was performed, based on a systematic search in the Scopus database. As a result, the authors propose a new concept, that of integrative responsibility, designed to ascertain the social responsibility of companies within and outside organizations.
An Inquiry into the Study of Corporate Codes of Ethics
Journal of Business Ethics, 2007
This paper takes its point of departure in an article by Stevens [Stevens, B.: 1994, Journal of Business Ethics 54, 163-171], in which she identified a lack of knowledge regarding how corporate codes of ethics are communicated and affect behavior in organizations. Taking heed of this suggested gap, we review studies on corporate codes of ethics with an empirical content, published since 1994. The conclusion of the review is that we still lack knowledge on how codes work, how they are communicated and how they are transformed inside organizations. Stevens' plea could even be extended, arguing that the knowledge gap might be of even more significance than in the mid-1990s. Some directions for how this situation can be approached in future studies are outlined in the paper.