The behavioural effects of corporate ethical codes: Empirical findings and discussion

Abstract

The use of corporate ethical codes has been increasing. It is argued that the use of ethical codes solely as an instrument in a company’s image management is morally questionable. Therefore, the introduction and use of ethical codes must have the intention of achieving behavioural change or the maintenance of already superior behaviour. This change or superior behaviour may apply to ethics in general, but also to the different sub‐structures of ethics, namely the areas of reliability ethics, human ethics, capability ethics and future ethics. Previous research has, with some exceptions, failed to demonstrate that the introduction of ethical codes has had any behavioural effect. A survey study of Norwegian professionals (N=449) in business is reported here. Using the flexibility that a multivariate analysis provides, the existence or non‐existence of ethical codes, and their influence on attitudinal differences across the four ethical sub‐structures is tested. In the following discussion, three lines of argument are used, drawing on logical, social and managerial approaches, to explain why the codes do exist and yet do not seem to influence the members of a business organisation. Finally, the paper suggests some implications for business practice and for future research.

The Effectiveness of Business Codes: A Critical Examination of Existing Studies and the Development of an Integrated Research Model

“…The respondents were usually requested to select their preferred response to a set of hypothetical ethical dilemmas. For example, Marnburg (2000) tested differences in attitudes of employees in two groups of companies in Norway: those with and those without codes. He concluded that the empirical findings suggest that the existence of business codes did not have any attitudinal effects because the two groups did not respond differently to the presented dilemmas.…”

“…Weak positive relationship Badaracco and Webb (1995), Beets and Killough (1990), Bruce (1994), Dubinsky et al (1992), Mathews (1987), Murphy et al (1992), Peppas (2003), Schwartz (2001), Stevens et al (2005), Stohs and Brannick (1999), Valentine and Barnett (2002), Weaver (1995), Weeks and Nantel (1992). No significant relationship Akaah and Riordan (1989), Allen and Davis (1993), Ashkanasy et al (2000), Brief et al (1996), Cabral-Cardoso (2004), Callan (1992), Chonko and Hunt (1985), Clark and Leonard (1998), Cowton and Thompson (2000), Diller (1999), Farrell et al (2002), Ford et al (1982), Harker and Harker (2000), Healy and Iles (2002), Hume et al (1999), Hunt et al (1984), Kohut and Corriher (1994), Marnburg (2000), Mathews (1987), McKendall et al (2002), Montoya and Richard (1994), Ryan (1994), Sims and Brinkmann (2003), Snell and Herndon (2000), Stevens (2004), Treviño et al (1999). Mixed results Adam and Rachman-Moore (2004), Brenner and Molander (1977), Higgs-Kleyn and Kapelianis (1999), …”

“…, Barnet et al (1993), Beneish and Chatov (1993), Bowman (1981), Cassell et al (1997), Chonko et al (2003) Embse et al (2004), Ferrell and Skinner (1988), Finegan and Theriault (1997), Hegarty and Sims (1979), Kaptein and Wempe (1998), McCabe et al (1996), Nakano (1997), Nakano (1999), Peterson (2002), Pierce and Henry (1996;2000), Rich et al (1990), Sajhau (1998) Sims and Keon (1999), Singhapakdi and Vitell (1990), Stevens (1999), Touche Ross (1988), Treviño et al (1998), Valentine and Barnett (2004), Valentine and Fleischman (2002), Weaver and Ferrell (1977), Weaver et al (1999a). Weak positive relationship Badaracco and Webb (1995), Beets and Killough (1990), Bruce (1994), Dubinsky et al (1992), Mathews (1987), Murphy et al (1992), Peppas (2003), Schwartz (2001), Stevens et al (2005), Stohs and Brannick (1999), Valentine and Barnett (2002), Weaver (1995), Weeks and Nantel (1992).…”

A Content Analysis of Whistleblowing Policies of Leading European Companies

“…However, many scholars have argued that ethical codes have a limited impact on ethical behaviour in organizations. Although many companies have a code of conduct, many of them are merely paying lip service to the notion of encouraging ethical behaviour (e.g., Kjonstad and Willmott, 1995;Lindsay et al, 1996;Marnburg, 2000;O'Dwyer and Madden, 2006;Sims, 1991;Sims and Brinkmann, 2003;Weaver et al, 1999). Others (e.g., Brinkmann and Ims, 2003) have argued that the effectiveness of ethical codes depends on the method of implementation, the process of code revision, the existence of disciplinary procedures in case of violations and the procedures in place for seeking advice or reporting violations.…”

Academic Cheating in Egyptian Universities: Is It All about Corporate Code of Ethics?

“…The effectiveness of the corporate code of ethics has been widely examined by many researchers (e.g. Marnburg, 2000;Schwartz, 2001;Sims & Brinkmann, 2003;McClearn, 2004). Despite research disagreement about the impact of code of ethics on the behavior of organizations, it is agreed that codes of ethics can be useful for decision making.…”