The Good, the Bad, and Their Corporate Codes of Ethics: Enron, Sarbanes-Oxley, and the Problems with Legislating Good Behavior (original) (raw)

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.

Toward Effective Codes: Testing the Relationship with Unethical Behavior

Journal of Business Ethics, 2011

A business code of ethics is widely regarded as an important instrument to curb unethical behavior in the workplace. However, little is empirically known about the factors that determine the impact of a code on unethical behavior. Besides the existence of a code, this article studies five determining factors: the content of the code, the frequency of communication activities surrounding the code, the quality of the communication activities, and the embedment of the code in the organization by senior management as well as local management. The full model explains 32% of observed unethical behavior while the explanatory value of a code alone is very modest. The study shows when codes are effective, and even when they become counter effective.

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.

Business Ethics and Integrity a Case Study on 300 U.S. Listed Companies

Studia Universitatis „Vasile Goldis” Arad – Economics Series, 2015

Profit-maximizing behavior or moral integrity? Can companies have both? Our study takes a look at 300 U.S. based companies listed on the New York Stock Exchange and NASDAQ, and their way of dealing with business ethics. The research undertaken focuses on the content analysis method, using the corporate Codes of conduct and Corporate Social Responsibility (CSR) reports. The study reveals the evolution of the corporate ethics policies and programs throughout the years 2010- 2014. We also take a look at the most frequent controversies concerning business integrity, by sectors of activity

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.