Skip to main content
Log in

The Nature of the Relationship between Corporate Codes of Ethics and Behaviour

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

A study was conducted in order to examine the relationship between corporate codes of ethics and behaviour. Fifty-seven interviews of employees, managers, and ethics officers were conducted at four large Canadian companies. The study found that codes of ethics are a potential factor influencing the behaviour of corporate agents. Reasons are provided why codes are violated as well as complied with. A set of eight metaphors are developed which help to explain how codes of ethics influence behaviour.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Akaah, I. P. and E. A. Riordan: 1989, ‘Judgments of Marketing Professionals About Ethical Issues in Marketing Research: A Replication and Extension’, Journal of Marketing Research 26 (February), 112–120.

    Google Scholar 

  • Allen, J. and D. Davis: 1993, ‘Assessing Some Determinant Effects of Ethical Consulting Behavior: The Case of Personal and Professional Values’, The Journal of Business Ethics 12, 449–458.

    Google Scholar 

  • Arrow, K. J.: 1973, ‘Social Responsibility and Economic Efficiency’, Public Policy 21, 303–317.

    Google Scholar 

  • Badaracco, Jr., J. L. and A. P. Webb: 1995, ‘Business Ethics: A View From the Trenches’, California Management Review 37(2), 8–28.

    Google Scholar 

  • Benson, G. C. S.: 1989, ‘Codes of Ethics’, The Journal of Business Ethics 8, 305–319.

    Google Scholar 

  • Berenbeim, R. E.: 1988, ‘Ethics Codes and Educational Programs’, Security (October), 91–97.

  • Brass, D. J., K. D. Butterfield, andB. C. Skaggs: 1998, ‘Relationships and Unethical Behavior: A Social Network Perspective’, Academy of Management Review 23(1), 14–31.

    Google Scholar 

  • Brenner, S.N.: 1992, ‘Ethics Programs and their Dimensions’, Journal of Business Ethics 11, 391–399.

    Google Scholar 

  • Brief, A. P., J. M. Dukerich,P. R. Brown, andJ. F. Brett: 1996, ‘What's Wrong with the Treadway Commission Report? Experimental Analyses of the Effects of Personal Values and Codes of Conduct on Fraudulent Financial Reporting’, Journal of Business Ethics 15, 183–198.

    Google Scholar 

  • Callan, V. J.: 1992, ‘Predicting Ethical Values and Training Needs in Ethics’, Journal of Business Ethics 11, 761–769.

    Google Scholar 

  • Center for Business Ethics: 1992, ‘Instilling Ethical Values in Large Corporations’, Journal of Business Ethics 11, 863–867.

    Google Scholar 

  • Chatov, R.: 1980, ‘What Corporate Ethics Statements Say’, California Management Review 22(4) (Summer), 20–29.

    Google Scholar 

  • Chonko, L. B. andHunt, S. D.: 1985, ‘Ethics and Marketing Management: An Empirical Examination’, Journal of Business Research 13, 339–359.

    Google Scholar 

  • Clark, M. A.: 1998, ‘Can Corporate Codes of Ethics Influence Behavior?’, Journal of Business Ethics 17(6), 619.

    Google Scholar 

  • Clarkson, M. B. E. and M. C. Deck: 1992, Effective Codes of Ethics: A Stakeholder Approach (The Clarkson Centre For Business Ethics, Toronto, Ontario).

    Google Scholar 

  • Cressey, D. R. and C. A. Moore: 1983, ‘Managerial Values and Corporate Codes of Ethics’, California Management Review 25(4) (Summer), 53–77.

    Google Scholar 

  • Driscoll, D. M.,W. M. Hoffman, andE. S. Petry: 1995, Ethical Edge (MasterMedia Limited, New York).

    Google Scholar 

  • Estes, R.: 1996, Tyranny of the Bottom Line (Berrett-Koehler Publishers, San Francisco, CA).

    Google Scholar 

  • Ethics Resource Center.: 1980, Implementation and Enforcement: Codes of Ethics in Corporations and Associations (Opinion Research Corporation, Princeton, NJ).

    Google Scholar 

  • Ethics Resource Center: 1990a, Creating a Workable Company Code of Ethics (Washington, DC).

  • Ethics Resource Center and The Behavior Research Center.: 1990b, Ethics Policies and Programs in American Business: Report of a Landmark Survey of U.S. Corporations (Washington, DC).

  • Ethics Resource Center.: 1994, Ethics in American Business: Policies, Programs and Perceptions (Washington, DC).

  • Ferrell, O. C. and L. Gresham: 1985, ‘A Contingency Framework for Understanding Ethical Decision Making in Marketing’, Journal of Marketing 49, 87–96.

    Google Scholar 

  • Ferrell, O. C. and S. J. Skinner: 1988, ‘Ethical Behavior and Bureaucratic Structure in Marketing Research Organizations’, Journal of Marketing Research 25 (February), 103–109.

    Google Scholar 

  • Ford, R. C., B. Gray, andR. Landrum: 1982, ‘Do Organizational Codes of Conduct Really Affect Employees’ Behavior?’, Management Review 53 (June).

  • Ford, R. C. and W. D. Richardson: 1994, ‘Ethical Decision Making: A Review of the Empirical Literature’, Journal of Business Ethics 13, 205–221.

    Google Scholar 

  • Friedman, M.: 1970, ‘The Social Responsibility of Business is to Increase its Profits’, The New York Times Magazine 33 (September), 122–126.

  • Harris, C. E.: 1978, ‘Structuring a Workable Business Code of Ethics’, University of Florida Law Review 30, 310–382.

    Google Scholar 

  • Hegarty, W. H. andH. P. Sims Jr.: 1979, ‘Organizational Philosophy, Policies, and Objectives Related to Unethical Decision Behavior: A Laboratory Experiment’, Journal of Applied Psychology 64(3), 331–338.

    Google Scholar 

  • Hite, R. E., J. A. Bellizzi, andC. Faser: 1988, ‘A Content Analysis of Ethical Policy Statement Regarding Marketing Activities’, The Journal of Business Ethics 7, 771–776.

    Google Scholar 

  • Hosmer, L. T.: 1991, The Ethics of Management, 2nd ed. (Irwin Inc., Boston, MA).

    Google Scholar 

  • Hunt, S. D., L. B. Chonko, andJ. B. Wilcox: 1984, ‘Ethical Problems of Marketing Researchers’, Journal of Marketing Research 21 (August), 309–324.

    Google Scholar 

  • Izraeli, D. and M. Schwartz: 1998, ‘What Can We Learn From the U.S. Federal Sentencing Guidelines for Organizational Ethics?’, The Journal of Business Ethics 17(9–10), 1045–1055.

    Google Scholar 

  • Jordan, K. S.: 1995, ‘Designing and Implementing a Corporate Code of Conduct in the Context of an ‘Effective’ Compliance Program’, in Corporate Counsel's Guide to Business Ethics Policies (Business Laws, Chesterland, OH), pp. 301–314.

    Google Scholar 

  • Kitson, A.: 1996, ‘Taking the Pulse: Ethics and the British Cooperative Bank’, The Journal of Business Ethics 15, 1021–1031.

    Google Scholar 

  • KPMG: 2000, Ethics Survey-2000: Managing for Ethical Practice (KPMG Financial Advisory Services, Toronto, Ontario).

    Google Scholar 

  • Laczniak, G. R. and E. J. Inderrieden: 1987, ‘The Influence of Stated Organizational Concern Upon Ethical Decision Making’, The Journal of Business Ethics 6, 297–307.

    Google Scholar 

  • Lefebvre, M. and J. B. Singh: 1992, ‘The Content and Focus of Canadian Corporate Codes of Ethics’, Journal of Business Ethics 11, 799–808.

    Google Scholar 

  • Le Jeune, M. and S. Webley: 1998, Company Use of Codes of Business Conduct (Institute of Business Ethics, London).

    Google Scholar 

  • L’Etang, J.: 1992, ‘A Kantian Approach to Codes of Ethics’, Journal of Business Ethics 11, 737–744.

    Google Scholar 

  • Levitt, T.: 1958, ‘The Dangers of Social Responsibility’, Harvard Business Review 36(5), 41–50.

    Google Scholar 

  • Mathews, C. M.: 1987, ‘Codes of Ethics: Organizational Behavior and Misbehavior’, in W. F. Frederick (ed.), Research in Corporate Social Performance and Policy, vol. 9 (JAI Press, Greenwich, CT), pp. 107–130.

    Google Scholar 

  • McCabe, D. L., L. K. Trevino, andK. D. Butterfield: 1996, ‘The Influence of Collegiate and Corporate Codes of Conduct on Ethics-Related Behavior in the Workplace’, Business Ethics Quarterly 6(4), 461–476.

    Google Scholar 

  • Montoya, I. D. and A. J. Richard: 1994, ‘A Comparative Study of Codes of Ethics in Health Care Facilities and Energy Companies’, Journal of Business Ethics 13, 713–717.

    Google Scholar 

  • Murphy, P. E.: 1988, ‘Implementing Business Ethics’, Journal of Business Ethics 7, 907–915.

    Google Scholar 

  • Murphy, P. E.: 1989, ‘Creating Ethical Corporate Structures’, Sloan Management Review (Winter), 81–87.

  • Murphy, P. E.: 1995, ‘Corporate Ethics Statements: Current Status and Future Prospects’, Journal of Business Ethics 14, 727–740.

    Google Scholar 

  • Murphy, P. R., J. E. Smith, andJ. M. Daley: 1992, ‘Executive Attitudes, Organizational Size and Ethical Issues: Perspectives on a Service Industry’, Journal of Business Ethics 11, 11–19.

    Google Scholar 

  • Paine, L. S.: 1994, ‘Managing for Organizational Integrity’, Harvard Business Review (Mar.-Apr.), 106–117.

  • Pierce, M. A. and J. W. Henry: 1996, ‘Computer Ethics: The Role of Personal, Informal, and Formal Codes’, Journal of Business Ethics 15, 425–437.

    Google Scholar 

  • Pitt, H. L. and K. A. Groskaufmanis: 1990, ‘Minimizing Corporate Civil and Criminal Liability: A Second Look at Corporate Codes of Conduct’, The Georgetown Law Journal 78, 1559–1654.

    Google Scholar 

  • Rich, A. J., C. S. Smith,P. H. Mihalek: 1990, ‘Are Corporate Codes of Conduct Effective?’, Management Accountant (September), 34–35.

  • Robertson, D. C.: 1993, ‘Empiricism in Business Ethics: Suggested Research Directions’, Journal of Business Ethics 12, 585–599.

    Google Scholar 

  • Sanderson, G. R. and I. I. Varner: 1984, ‘What's Wrong with Corporate Codes of Conduct?’, Management Accounting (July), 28–31.

  • Schlegelmilch, B. B. and C. C. Langlois: 1990, ‘Do Corporate Codes of Ethics Reflect National Character? Evidence from Europe and the United States’, Journal of International Business Studies, 519–539.

  • Schwartz, M.: 1996, ‘Corporate Compliance and Ethical Decision Making in Canada’, Corporate Conduct Quarterly 5(1), 6–7, 17.

    Google Scholar 

  • Schwartz, M.: 1998, ‘Compliance and Business Ethics are Coming of Age in Canada’, Ethikos and Corporate Conduct Quarterly 12(1), 6–9, 12.

    Google Scholar 

  • Singhapakdi, A. and S. J. Vitell: 1990, ‘Marketing Ethics: Factors Influencing Perceptions of Ethical Problems and Alternatives’, Journal of Macromarketing (Spring), 4–18.

  • Stevens, B.: 1992, ‘Corporate Ethical Codes: A Study in Competing Values’, Doctoral Dissertation, Wayne State University.

  • Stevens, B.: 1994, ‘An Analysis of Corporate Ethical Code Studies: Where Do We Go From Here?’, Journal of Business Ethics 13, 63–69.

    Google Scholar 

  • Stone, C.: 1975, Where the Law Ends (Harper & Row, New York).

    Google Scholar 

  • Townley, P.: 1992, ‘Business Ethics... An Oxymoron?’, Canadian Business Review (Spring), 35–37.

  • Trevino, L.: 1986, ‘Ethical Decision Making in Organizations: A Person-Situation Interactionist Model’, Academy of Management Review 11, 601–617.

    Google Scholar 

  • Trevino, L., G. R. Weaver,D. G. Gibson, andB. L. Toffler: 1999, ‘Managing Ethics and Legal Compliance: What Works and What Hurts’, California Management Review 41(2), 131–151.

    Google Scholar 

  • Weaver, G. R.: 1993, ‘Corporate Codes of Ethics: Purpose, Process and Content Issues’, Business and Society 32(1) (Spring), 44–58.

    Google Scholar 

  • Weeks, W. A. and J. Nantel: 1992, ‘Corporate Codes of Ethics and Sales Force Behavior: A Case Study’, Journal of Business Ethics 11, 753–760.

    Google Scholar 

  • White, B. J. and B. R. Montgomery: 1980, ‘Corporate Codes of Conduct’, California Management Review 23(2) (Winter), 80–87.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Schwartz, M. The Nature of the Relationship between Corporate Codes of Ethics and Behaviour. Journal of Business Ethics 32, 247–262 (2001). https://doi.org/10.1023/A:1010787607771

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1010787607771

Navigation