Does private regulation of workers’ rights in global value chains improve working conditions on the factory floor? Drawing on one of the first systematic longitudinal studies of supplier compliance with multinational corporation (MNC) codes of conduct, this paper finds—in contrast to previous research—substantial improvements over time. While in 2004, the four examined Chinese toy suppliers violated most of the evaluated code of conduct criteria and consciously decoupled the code of conduct policy from actual practices, by 2009 (...) they had recoupled policy and practice and complied with nearly all examined criteria (except working hours). The paper contributes to the private regulation literature by challenging previous research claims, identifying factors that could make private regulation effective, and outlining a research method for empirically studying the effects of codes of conduct over time. The paper also contributes to new institutional theory by discussing how recoupling could be influenced by two factors not identified in previous research: (i) trusting relationships between the organization and the stakeholder exerting pressure and (ii) factors unrelated to main external pressures leading to “accidental” recoupling. (shrink)

Corporate codes of conduct are a practical corporate social responsibility (CSR) instrument commonly used to govern employee behavior and establish a socially responsible organizational culture. The effectiveness of these codes has been widely discussed on theoretical grounds and empirically tested in numerous previous reports that directly compare companies with and without codes of conduct. Empirical research has yielded inconsistent results that may be explained by multiple ancillary factors, including the quality of code content and implementation, (...) which are excluded from analyses based solely on the presence or absence of codes.This study investigated the importance of code content in determining code effectiveness by examining the relationship between code of conduct quality and ethical performance. Companies maintaining high quality codes of conduct were significantly more represented among top CSR ranking systems for corporate citizenship, sustainability, ethical behavior, and public perception. Further, a significant relationship was observed between code quality and CSR performance, across a full range of ethical rankings. These findings suggest code quality may play a crucial role in the effectiveness of codes of conduct and their ability to transform organizational cultures.Future research efforts should transcend traditional comparisons based on the presence or absence of ethical codes and begin to examine the essential factors leading to the effective establishment of CSR policies and sustainable business practices in corporate culture. (shrink)

Despite increased academic and practitioner interest in codes of conduct, there has been little research into the actual compliance of suppliers in developing countries with the codes of conduct of multinational corporations (MNCs). This paper addresses this lack by analysing Chinese suppliers’ level of compliance with Swedish toy retailers’ codes of conduct. Based on unannounced and unofficial interviews with employees of Chinese suppliers, the study shows that all of the nine studied suppliers breached some (...) of the standards in the toy retailers’ codes, with over two-thirds of the suppliers not complying with the majority of the studied standards. While there are different explanations of this lack of compliance, the main explanation seems to be that Chinese suppliers successfully deceive toy retailers’ monitoring organisations by decoupling the formal monitored part of their organisation from the actual operational part of their organisation. The paper concludes with a discussion of how to increase compliance with MNCs’ codes of conduct. (shrink)

Recognizing the growing interdependence of the European Union and the importance of codes of conduct in companies’ operations, this research examines the effect of a country’s culture on the implementation of a code of conduct in a European context. We examine whether the perceptions of an activity’s ethicality relates to elements found in company codes of conduct vary by country or according to Hofstede’s (1980, Culture’s Consequences (Sage Publications, Beverly Hills, CA)) cultural constructs of: Uncertainty (...) Avoidance, Masculinity/Femininity, Individualism, and Power Distance. The 294 individuals, who participated in our study, were from 8 Western European countries. Their responses to our 13 scenarios indicate that differences in the perceptions of ethicality associate primarily with the participants’ country as opposed to their employer (i.e., accounting firm), employment level, or gender. The evidence also indicates that these country differences associate with Hofstede constructs of Individualism and Masculinity. (shrink)

The restructured globalized economy has provided women with employment opportunities. Globalisation has also meant a shift towards self-regulation of multinationals as part of the restructuring of the world economy that increases among others things, flexible employment practices, worsening of labour conditions and lower wages for many women workers around the world. In this context, as part of the global trend emphasising Corporate Social Responsibility (CSR) in the 1980s, one important development has been the growth of voluntary Corporate Codes of (...) Conduct to improve labour conditions. This article reviews from a feminist interdisciplinary perspective the broad academic literature on women workers, covering the more classical debate on women workers in the industrialization process and entering into women workers in the global supply chains and women workers and corporate codes of conduct. The main argument is that this research on women workers is crucial to frame the issues of business ethics and in particular CSR and Codes of Conduct in the context of women in the global political economy. When this crucial knowledge is ignored, then the ethical policies of the companies also ignore the real situation of the women workers at the bottom of their supply chains. (shrink)

Western buying companies impose Supplier Codes of Conduct (SCC) on their suppliers in developing countries; however, many suppliers cannot fully comply with SCC and some of them even cheat in SCC. In this research, we link contract characteristics - price pressure, production complexity, contract duration - to the likelihood of supplier's commitment to SCC through a mediating process: how the buying companies govern their suppliers. Our structural equation model analysis shows that the hierarchy/relational norms governance is a perfect (...) mediator of contract characteristics' effects on the likelihood of supplier's commitment; the market governance, an insignificant one. The managerial implications are provided for successfully implementing SCC in global supply chains. (shrink)

The question of what firms do internally in the fight against bribery is probably as important to the successful outcome of that fight as formal anti-bribery law and enforcement. This paper looks at corporate approaches to anti-bribery commitment and compliance management using an inventory of 246 codes of conduct. It suggests that, while bribery is often mentioned in the codes of conduct, there is considerable diversity in the language and concepts adopted in anti-bribery commitments. This diversity (...) is a feature of the language used in describing parties to bribery and in defining which activities are prohibited (e.g. promising bribes versus actually giving them, gifts and entertainment, and solicitation. This diversity of language and concepts suggests that it might be useful to extend and deepen efforts in business associations and international organisations to build consensus on the meaning of bribery and corruption. In contrast, the bribery codes show evidence of an emerging consensus on managerial approaches to combating bribery. This involves the deployment of a distinctive mix of management tools, including financial record keeping, statements by executive officers, internal monitoring, whistle-blowing facilities, creation of compliance offices and threats of disciplinary action. (shrink)

Codes of conduct are the main tools to privately regulate worker rights in global value chains. Scholars have shown that while codes may improve outcome standards (such as occupational health and safety), they have had limited impact on process rights (such as freedom of association and collective bargaining). Scholars have, though, only provided vague or general explanations for this empirical finding. We address this shortcoming by providing a holistic and detailed explanation, and argue that codes, in (...) their current form, have limited impact on trade union rights due to (i) buyers paying lip service to trade union rights, (ii) workers being treated as passive objects of regulation in codes of conduct, (iii) auditing being unable to detect and remediate violations of trade union rights, (iv) codes emphasizing parallel means of organizing, (v) suppliers having limited incentives for compliance, and (vi) codes being unable to open up space for union organizing when leveraged in grassroots struggles. Our arguments suggest that there is no quick fix for codes’ limited impact on trade union rights, and that codes, in their current form, have limited potential to improve trade union rights. We conclude by discussing ways in which codes of conduct, and private regulation of worker rights more generally, could be transformed to more effectively address trade union rights. (shrink)

Codes of conduct have proliferated not only at company level, but also at supra-and suborganisational levels. However, the latter have remained an under-researched area within the CSR literature. Hence, this article examined what range of organisational and sub-organisational codes large companies - here the FTSE100 constituent companies -have developed. The article isolated seven different types of organisational and sub-organisational codes, which together with six supraorganisational ones form a lattice-work of intermeshing documents. Such a division of labour (...) between types of codes has two significant implications for CSR practice and research. In terms of corporate practice, an analysis of the content of the organisational and sub-organisational codes indicates that companies seem to enter into generalised commitments in the more visible documents, whereas other aspects, in particular more coercive aspects of CSR, get buried in the lower levels of the code hierarchy. In terms of research methodology, the differentiation between codes highlights that an analysis of codes of conduct alone is insufficient to establish what the CSR approach of a company is. Rather, it is the entire range of codes at organisational and sub-organisational levels that scholars of codes of conduct should be concerned with. (shrink)

This study examined the influence of two organizational context variables, codes of conduct and supervisor advice, on personnel decisions in an experimental simulation. Specifically, we studied personnel evaluations and decisions in a situation where codes of conduct conflict with supervisor advice. Past studies showed that supervisors’ advice to prefer ingroup over outgroup candidates leads to discriminatory personnel selection decisions. We extended this line of research by studying how codes of conduct and code enforcement may (...) reduce this form of discrimination. Eighty German managers evaluated and selected candidates from an applicant pool including Germans (ingroup members) and foreigners (outgroup members). Supervisor advice to prefer ingroup members lowered suitability ratings of outgroup members as well as their chances to be selected for an interview. Ethical codes of conduct referring to equal opportunities limited this form of discrimination, but only when codes were enforced by sanctions and integrated into organizational every-day practice. The implications of these findings for research and practice are discussed. (shrink)

In the past ten years, many European companies organised into subcontracting networks have decided to adopt codes of conduct to regulate labour relations and to ensure the respect of fundamental social rights. This paper first determines the context and the issues to be addressed by codes of conduct within networks of companies, and second analyses the terms under which they can be implemented. The paper argues that codes of conduct can complement the standards developed (...) by States, the European Union or the social partners, but that steps should be taken in order to avoid that these texts replace the existing labour law. (shrink)

This paper presents four different contexts in which students practiced implementing business ethics. Students were required to develop Codes of Conduct/Codes of Ethics as a classroom exercise. By developing these codes, students can improve their understanding of how and why codes of conduct are developed, designed, and implemented in the workplace. Using the three-phase content analysis process (McCabe et al.: 1999, The Journal of Higher Education 70(2), 211–234), we identify a framework consisting of 10 (...) classifications that can be used to assess learning outcomes in embedded ethics education. By analyzing the different content within each classification, instructors were able to gain a better understanding of differing application of ethical principles. This analysis indicates that there needs to be more research on codes of conduct for smaller units within an organization and more integration of work group codes of conduct into the business curriculum. (shrink)

The design and development of appropriate regulatory mechanisms have attracted renewed attention in recent years. In particular, a shift towards voluntary self-regulatory mechanisms has been witnessed within many industries, such as the Australian mining and petroleum industries which have developed voluntary codes of conduct. This paper analyses the development of different regulatory forms and provides a brief comparative analysis of the two main voluntary codes of conduct used by the Australian mining and petroleum industries. In particular, (...) the study focuses on the integration of social sustainability elements within these frameworks that help contribute to solving issues such as coverage of human rights, approaches to employee and community relations, systems of stakeholder engagement, community consultation and public reporting. The study concludes that stakeholders have an important role to play in driving the introduction of voluntary regulation. This phenomenon can be traced back to how a company’s need to maintain its legitimacy, or social licence to operate, often motivates it to go beyond compliance. By providing a fuller understanding of factors driving the evolution of different regulatory mechanisms, this study has important implications for policy makers and practitioners interested in developing effective regulation. (shrink)

Commercial interest in land (large-scale land acquisition, LaSLA) in developing countries is a hot topic for debate and its potential consequences are contentious: proponents conceive of it as much needed investment into the formerly neglected agricultural sector while opponents point to severe social and environmental effects. This contribution discusses, if and how sustainability standards and codes of conduct can contribute towards governing LaSLA. Based on the WCED-definition we develop a conception of sustainability that allows framing potential negative effects (...) as issues of intra- and intergenerational justice. In a second step we specify these claims of justice, drawing on a human rights approach as well as three guidelines for sustainable development, namely, efficiency, consistency and resilience, to arrive at six guidelines for social and environmental sustainability criteria of LaSLA. We compare our suggestions with existing proposals for sustainability standards of LaSLA and with the certification schemes for sustainable production of bioenergy. From this we draw lessons for development and implementation of sustainability standards for LaSLA. (shrink)

This article describes the theory and process of global business citizenship (GBC) and applies it in an analysis of characteristics of company codes of business conduct. GBC is distinguished from a commonly used term, “corporate citizenship,” which often denotes corporate community involvement and philanthropy. The GBC process requires (1) a set of fundamental values embedded in the corporate code of conduct and in corporate policies that reflect universal ethical standards; (2) implementation throughout the organization with thoughtful awareness (...) of where the code and policies fit well and where they might not fit with stakeholder expectations; (3) analysis and experimentation to deal with problem cases; and (4) systematic learning processes to communicate the results of implementation and experiments internally and externally. We then identify and illustrate the three attributes of a code of conduct that would reflect a GBC approach. The three attributes are orientation, implementation, and accountability. The various components of these attributes are specified and illustrated, using website examples from six global petroleum companies. (shrink)

This paper considers multiple meanings of the expression ‘dual use’ and examines lessons to be learned from the life sciences when considering ethical and policy issues associated with the dual-use nature of nanotechnology (and converging technologies). After examining recent controversial dual-use experiments in the life sciences, it considers the potential roles and limitations of science codes of conduct for addressing concerns associated with dual-use science and technology. It concludes that, rather than being essentially associated with voluntary self-governance of (...) the scientific community, codes of conduct should arguably be part of a broader regulatory oversight system. (shrink)

To encourage corporations to contribute positively to the environment in which they operate, voluntary self-regulatory codes (SRC) have been enacted and refined over the past 15 years. Two of the most prominent are the United Nations Global Compact and the Global Reporting Initiative. In this paper, we explore the impact of different stakeholders' pressures on the selection of strategic choices to join SRCs. Our results show that corporations react differently to different sets of stakeholder pressures and that the SRC (...) selection depends on the type and intensiveness of the stakeholder pressures as well as the resources at hand to respond to those pressures. Our contribution offers a more specific and finely variegated analysis of firmstakeholder interactions. (shrink)

The International Federation of Accountants (IFAC) has recently issued a revised "Code of Ethics for Professional Accountants" (IFAC Code). As a requirement for membership in IFAC, a national accounting organization must either adopt the IFAC Code or adopt a code of conduct that is not "less stringent" than the IFAC Code. In this paper, we examine the extent to which 158 national accounting organizations have adopted the revised IFAC Code as their own. Our results indicate that 80 of our (...) sample organizations have adopted the IFAC Code (sometimes with minor modifications), while the remaining 78 opted not to utilize the model IFAC Code. We then test the hypothesis that national accounting organizations in lower income economies would be less likely to adopt the IFAC Code than those in high income economies. Our results do not support the hypothesis. We argue that one potential reason for such a finding is that adopting the IFAC Code may be a cost effective means of adopting a code of ethics for organizations in lower income economies. (shrink)

Codes of ethics are being increasingly adopted in organizations worldwide, yet their effects on employee perceptions and behavior have not been thoroughly addressed. This study used a sample of 613 management accountants drawn from the United States to study the relationship between corporate and professional codes of ethics and employee attitudes and behaviors. The presence of corporate codes of ethics was associated with less perceived wrongdoing in organizations, but not with an increased propensity to report observed unethical (...) behavior. Further, organizations that adopted formal codes of ethics exhibited value orientations that went beyond financial performance to include responsibility to the commonweal. In contrast to corporate codes of ethics, professional codes of ethical conduct had no influence on perceived wrongdoing in organization nor these codes affect the propensity to report observed unethical activities. (shrink)

This paper reports on an investigation of issues surrounding the use of ethical codes/codes of conduct in Irish based companies. Using a comprehensive questionnaire survey, the paper examines the incidence, content and enforcement of codes of conduct among a sample of the top 1000 companies based in Ireland. The main findings indicate that the overall usage of codes of conduct amongst indigenous Irish companies has increased significantly from 1995 to 2000. However, in line (...) with prior research, these codes focus primarily on issues surrounding company and employee protection as opposed to society protection. Almost half of all codes are written by company personnel or provided by head office. Revisions of codes are common but formal ongoing methods of instructing new staff about codes are not prevalent. Less than one-third of companies with codes have formal channels for reporting violations but a high percentage have formal disciplinary procedures in place for breaches of codes. (shrink)

Following the offshoring of production to developing countries by transnational corporations (TNCs), unions and non-governmental organisations (NGOs) have criticised working conditions at TNCs' offshore factories. This has led to the emergence of two different approaches to operationalising TNC responsibilities for workers' rights in developing countries: codes of conduct and global agreements. Despite the importance of this development, few studies have systematically compared the effects of these two different ways of dealing with workers' rights. This article addresses this gap (...) by analysing how codes of conduct and global agreements both independently and interactively affect workers' rights. We do this based on a qualitative study of the Sri Lankan operations of a Swedish TNC in Sri Lanka, and on interviews with union and NGO representatives actively involved in codes of conduct and global agreements. Our results indicate that global agreements independently address all the aspects included in codes of conduct, while also addressing additional, more process-oriented aspects of workers' rights. Hence, on their own, global agreements seem to comprise the superior approach to promoting workers' rights. Furthermore, our results indicate that promoting codes of conduct has negative interactive effects on global agreements. Based on these results, we argue that the current focus on codes of conduct is counterproductive for the promotion of workers' rights. (shrink)

This paper investigates the regulation of ethical behavior of professionals. Ethical perceptions of South African professionals operating in the business community (specifically accountants, lawyers and engineers) concerning their need for and awareness of professional codes, and the frequency and acceptability of peer contravention of such codes were sought. The existence of conflict between corporate codes and professional codes was also investigated. Results, based on 217 replies, indicated that the professionals believe that codes are necessary and (...) are relatively aware of the contents of such codes. Despite these ethical tendencies, respondents (particularly lawyers) believe that their peers contravene their professional codes relatively often. No significant differences in ethical tendencies between professionals consulting to and those working in business were found. Many respondents were regulated by more than one code of ethics, but few experienced conflict between such codes. In the events of conflict occurring professionals chose to adhere to their professional code above others. (shrink)

I study the diffusion of codes of conduct in the German textile and apparel industry between 1997 and 2010. Using a longitudinal case study design, I aim to understand how the diffusion of this practice was affected by the way important “infomediaries”—a trade journal and a professional association—shaped its understanding within the industry. My results show that time-consuming processes of meaning reconstruction by these infomediaries temporarily hampered but finally facilitated the broader material diffusion of codes of (...) class='Hi'>conduct within the industry. These findings detail existing conceptualizations of code diffusion as they demonstrate how infomediaries—through creation, use, and reconstruction of explanatory accounts as well as frames of reference—participate in defining the relevance and meaning of CSR practices. I move beyond prior empirical work as I explicitly assess not only processes of meaning construction evolving around a CSR practice but also how these processes over time coincide with quantitative patterns of its material diffusion. Implications of my findings for existing research on the diffusion of codes of conduct specifically and CSR practices in general as well as for conceptualizations of diffusion from institutional theory are discussed. (shrink)

This research examines the extent to which similarities and differences exist in the codes of professional conduct of certified (chartered) accountants across the following countries: the United States, Taiwan, South Korea, Malaysia, Ontario (Canada), Australia, India, and Hong Kong. These eight countries exemplify some of the diversity in economic, political, legal, and cultural environments in which public accountants practice. The professional codes of ethics establish the ethical boundary parameters within which professional accountants must operate and they are (...) a function of these environments.The results of the study reveal that commonalities exist on some ethical rules indicating that some rules are indeed "culture free". Cross-country variations, however, exist as to the specificity and elaborateness of the rules. Such variations can be attributed to cultural and legal differences, as well as the length of time each professional organization has been in existence. An understanding of the similarities and differences in the codes is important to individuals who may work in these countries. Professional accountants involved in international business must understand the implications of the decisions they make in light of the ethical codes and moral values of their counterparts in foreign countries. After a discussion of the similarities and differences in the codes, the implications of these comparisons for accounting practice are discussed. (shrink)

More and more organisations formulate a code of conduct in order to stimulate responsible behaviour among their members. Much time and energy is usually spent fixing the content of the code but many organisations get stuck in the challenge of implementing and maintaining the code. The code then turns into nothing else than the notorious "paper in the drawer", without achieving its aims. The challenge of implementation is to utilize the dynamics which have emerged from the formulation of the (...) code. This will support a continuous process of reflection on the central values and standards contained in the code. This paper presents an assessment method, based on the EFQM model, which intends to support this implementation process. (shrink)

Despite increased academic and practitioner interest in codes of conduct, there has been little research into the actual compliance of suppliers in developing countries with the codes of conduct of multinational corporations. This paper addresses this lack by analysing Chinese suppliers' level of compliance with Swedish toy retailers' codes of conduct. Based on unannounced and unofficial interviews with employees of Chinese suppliers, the study shows that all of the nine studied suppliers breached some of (...) the standards in the toy retailers' codes, with over two-thirds of the suppliers not complying with the majority of the studied standards. While there are different explanations of this lack of compliance, the main explanation seems to be that Chinese suppliers successfully deceive toy retailers' monitoring organisations by decoupling the formal monitored part of their organisation from the actual operational part of their organisation. The paper concludes with a discussion of how to increase compliance with MNCs' codes of conduct. (shrink)

Following the offshoring of production to developing countries by transnational corporations, unions and non-governmental organisations have criticised working conditions at TNCs' offshore factories. This has led to the emergence of two different approaches to operationalising TNC responsibilities for workers' rights in developing countries: codes of conduct and global agreements. Despite the importance of this development, few studies have systematically compared the effects of these two different ways of dealing with workers' rights. This article addresses this gap by analysing (...) how codes of conduct and global agreements both independently and interactively affect workers' rights. We do this based on a qualitative study of the Sri Lankan operations of a Swedish TNC in Sri Lanka, and on interviews with union and NGO representatives actively involved in codes of conduct and global agreements. Our results indicate that global agreements independently address all the aspects included in codes of conduct, while also addressing additional, more process-oriented aspects of workers' rights. Hence, on their own, global agreements seem to comprise the superior approach to promoting workers' rights. Furthermore, our results indicate that promoting codes of conduct has negative interactive effects on global agreements. Based on these results, we argue that the current focus on codes of conduct is counterproductive for the promotion of workers' rights. (shrink)

Regulatory schema has shifted from government to governance-based systems. One particular form that has emerged at the international level is the multi-stakeholder voluntary code of conduct (MSVC). We argue that such codes are not only simply mechanisms by which various stakeholders attempt to govern the action of the corporation but also systems by which each stakeholder attempts to gain or retain some legitimacy goal. Each stakeholder is motivated by strategic legitimacy goal to join the code, and once a (...) member, is also required to assist in maintaining the institutional legitimacy of the code, resulting in “networked legitimacy.” We begin our analysis of these systems by first exploring the growth and structure of such MSVCs, and then building an analytical framework using strategic and institutional legitimacy as they apply to such MSVCs. We contribute to the codes of conduct literature by developing the construct of networked legitimacy from strategic and institutional legitimacy. We then apply our framework to the United Nations Global Compact, one of the predominant MSVCs today. In doing so, we: (1) demonstrate how different stakeholders are pursuing different types of legitimacy through their participation in the code, (2) examine the specific opportunities and risks in terms of what we have called “networked legitimacy” posed by the institutional design of actual MSVCs, and (3) create an argument for three pillars supporting the legitimacy of MSVCs. (shrink)

Drawing from the varieties of capitalism theoretical framework, the study explores the home country influences of multinational corporations on their corporate social responsibility practices when they operate outside their national/regional institutional contexts. The study focusses on a particular CSR practice of seven MNCs from three varieties of capitalism – coordinated, mixed and liberal market economies – operating in the oil and gas sector of the Nigerian economy. The study concludes that the corporate codes of conduct of these MNCs (...) operating in Nigeria, to a large extent, reflect the characteristics of their home countries' model of capitalism, respectively, albeit with certain degree of modifications. The home countries' model of capitalism is also found to have implications for the degree of adaptability of these MNCs' CSR practices to the Nigerian institutional context – with the mixed market economy model of capitalism adapting more flexibly than the liberal and coordinated market economies, respectively. The findings of this study will contribute to the emerging literature on the institutional embeddedness of CSR practices in transnational social spaces, understanding of varieties of capitalism, and CSR in developing economies. (shrink)

It is imperative for the business community to act now to create global, industry-wide standards of conduct. Corporate strategy expert S. Prakash Sethi along with notable experts on issues of global codes of conduct take an in-depth look at global structures and how regulation works from a corporate perspective, providing case studies of several industries and governments who have begun implementing voluntary codes of conducts, including Equator Principles, ICMM, and The Kimberly Process._ He assesses the many (...) types of self-regulations that are currently underway and provides critical analysis for making these more effective, making this a must-read for academics, policy-makers, and corporate leaders. (shrink)

In three studies, factors influencing the incidence of fraudulent financial reporting were assessed. We examined (1) the effects of personal values and (2) codes of corporate conduct, on whether managers misrepresented financial reports. In these studies, executives and controllers were asked to respond to hypothetical situations involving fraudulent financial reporting procedures. The occurrence of fraudulent reporting was found to be high; however, neither personal values, codes of conduct, nor the interaction of the two factors played a (...) significant role in fraudulent financial reporting. (shrink)

Codes of conduct are viewed here as a community’s attempt to communicate its expectations and standards of ethical behavior. Many organizations are implementing codes, but empirical support for the relationship between such codes and employee conduct is lacking. We investigated the long term effects of a collegiate honor code experience as well as the effects of corporate ethics codes on unethical behavior in the workplace by surveying alumni from an honor code and a non-honor (...) code college who now work in business. We found that self-reported unethical behavior was lower for respondents who work in an organization with a corporate code of conduct and was inversely associated with corporate code implementation strength and embeddedness. Self-reported unethical behavior was also influenced by the interaction of a collegiate honor code experience and corporate code implementation strength. (shrink)

In discussions of professional standards and ethical values it is reasonable to consider who will develop the codes of conduct and guidelines for behavior that will reflect the standards and values of the community. Also worthy of consideration is whether the standards or guidelines are enforceable, and how and to what extent they will be enforced. The development of guidelines or professional codes of conduct is a responsibility that has been adopted by many professional societies. Useful (...) to this discussion is an examination of the rationale behind the development of ethical codes by professional societies. The Ethics in Science Committee of the Council of Scientific Society Presidents (CSSP) has examined the codes of some of its member societies and some observations regarding them are pertinent. The nature and uses of ethical statements, codes and guidelines developed by professional societies are multiple and diverse. Their enforcement raises both practical and ethical concerns. (shrink)

Abstract: The criticism that voluntary codes of conduct are ineffective can be met by giving greater centrality to human rights in such codes. Provided the human rights obligations of multinational corporations are interpreted as moral obligations specifically tailored to the situation of multinational corporations, this could serve to bring powerful moral force to bear on MNCs and could provide a legitimating basis for NGO monitoring and persuasion. Approached in this way the human rights obligations of MNCs can (...) be taken to include support for political as well as economic rights. This will go some way towards filling the regulatory gap created by the difficulty of controlling the activities of corporations operating globally. However, such a proposal will require a measure of ‘meta-regulation’ whereby the operations of MNCs are legally required to be sufficiently transparent to create the conditions for effective external moral scrutiny. (shrink)

Although case-based training is popular for ethics education, little is known about how specific case content influences training effectiveness. Therefore, the effects of (a) codes of ethical conduct and (b) forecasting content were investigated. Results revealed richer cases, including both codes and forecasting content, led to increased knowledge acquisition, greater sensemaking strategy use, and better decision ethicality. With richer cases, a specific pattern emerged. Specifically, content describing codes alone was more effective when combined with short-term forecasts, (...) whereas content embedding codes within context was more effective when combined with long-term forecasts, leading to greater knowledge acquisition and sensemaking strategy use. (shrink)

Four international codes of conduct (those of the International Chamber of Commerce, the Organization for Economic Cooperation and Development, the International Labor Organization, and the United Nations Commission on Transnational Corporations) are analyzed to determine the ethical bases of the behaviors they prescribe for multinational enterprises (MNEs). Although the four codes emphasize different aspects of business behavior, there is substantial agreement regarding many of the moral duties of MNEs. It is suggested that MNEs are morally bound to (...) recognize the codes and to take them into account when engaging in international business. (shrink)

Current trends toward increased pace, more complex substance and lower tolerance of error have caused the financial marketplace to rely more heavily on the integrity of financial data and, therefore, of those who prepare the financial statements. At the same time, these trends place higher challenges before professional accountants and it is essential that they have excellent ethical guidance to live up to modern expectations. However, in view of the current codes of conduct, an accountant may not have (...) a clear understanding of what priority of interests to satisfy, who can be consulted for advice, to whom to report misdeeds, what protection is offered a right-doer and what sanction will be forthcoming for doing wrong. Possible solutions are offered to these problems in ways that ought to strengthen the accounting profession and prevent unscrupulous companies from taking advantage of both members of the profession and the unsuspecting public. To provide the appropriate quality of service to society in the future, the Canadian accounting profession should offer its members the improved guidance and enhanced mechanisms for confidential consultation, assistance and protection outlined herein. (shrink)

Self-regulation exists at the firm-level, the industry-level, and the business-level of economic organization. Industry self-regulation has faced economic (free rider) and legal (antitrust) impediments to widespread implementation, although there exist examples of effective industry self-regulation, e.g., securities industry and the SEC, advertising and the FTC. By instituting industry codes of conduct, national trade associations have shown to be natural vehicles for self-regulation. While there has been long-standing general encouragement for establishing industry codes, adopting and enforcing conduct (...) codes has been seriously circumscribed by restrictive Supreme Court decisions and FTC advisory opinions. One approach to clearing legal confusion is to petition the FTC to issue an industry guide on promulgating and enforcing trade association codes of conduct. Another strategy is to utilize a stakeholder approach to association ethics committee appointments that subsequently influence code creation and enforcement. Finally, a new concept of an industry code of conduct will consist of three subcodes: an economic code; an environmental code; and a socio-political code. Combined, these strategic approaches will offer new opportunities for effective nonmarket regulation. (shrink)

Over recent decades, developments in network governance have seen governments around the world cede considerable authority and responsibility to commercial migration intermediaries for recruiting and managing temporary migrant labour. Correspondingly, a by-product of network governance has been the emergence of soft employment regulation in which voluntary codes of conduct supplement hard legal employment standards. This paper explores these developments in the context of temporary migrant workers employed in Australian horticulture. First the paper analyses the growing use of temporary (...) migrant labour in this industry. It then describes how different types of intermediaries interact with this workforce. The paper then outlines both hard and soft employment regulations, and contrasts them with actual employment conditions, questioning how a network governance approach has affected this vulnerable workforce. The paper concludes that changes in network governance of migration and employment relations have emasculated formal legal regulation, leaving market forces to operate without effective or ethical constraints at the expense of the public good. (shrink)

Over recent decades, developments in network governance have seen governments around the world cede considerable authority and responsibility to commercial migration intermediaries for recruiting and managing temporary migrant labour. Correspondingly, a by-product of network governance has been the emergence of soft employment regulation in which voluntary codes of conduct supplement hard legal employment standards. This paper explores these developments in the context of temporary migrant workers employed in Australian horticulture. First the paper analyses the growing use of temporary (...) migrant labour in this industry. It then describes how different types of intermediaries interact with this workforce. The paper then outlines both hard and soft employment regulations, and contrasts them with actual employment conditions, questioning how a network governance approach has affected this vulnerable workforce. The paper concludes that changes in network governance of migration and employment relations have emasculated formal legal regulation, leaving market forces to operate without effective or ethical constraints at the expense of the public good. (shrink)

Codes of conduct play an important role in a corporation's effort to institutionalize ethics. The imperative of their implementation and compliance has been widely recognized by corporations across the world. Given this backdrop, a survey has been conducted in India to ascertain: how many corporations have codes of conduct; whether common ethical issues/themes exist among them; whether they have proper ‘ethics management systems’ in place; and whether codes of conduct reflect any distinctive national character. (...) This article reports the findings of the survey based on content analysis and offers suggestions as to how corporations can make their code an ‘ideal code’ and also scope for further research. (shrink)

The contemporary cultural context may be seen as presenting a moral void in vocational education, sanctioning the ascendency of instrumental epistemology and a proliferation of codes of conduct, to which workplace actions are expected to conform. Important among the purposes of such codes is that of encouraging ethical conduct, but, true to their informing instrumental epistemology, they tend to assume that ethical conduct is a formal matter: a priori, extrinsic, deductive, universal, determinate, unproblematic, incontestable, constraining (...) and selfless. However, the context may, conversely, be seen as presenting grounds for a very different view of moral conduct as situated: immanent, intrinsic, cultural, contextualised, underdetermined, problematic, contestable, challenging and authentic. There is suggested, then, a need for vocational educators and trainers to develop the knowledge, capability, commitment and confidence to work as situated moral agents in workplaces of codified expectations to which they may be held accountable. (shrink)

This paper argues that many objections against, and limitations of, corporate codes of conduct can be addressed if a meaningful integration can be established between CSR and ethics management practices within corporations. It is proposed that the notion of the triple bottom‐line finally presents corporations with a mechanism to establish this integration. The paper draws on the second South African King Report on Corporate Governance, which succeeded in integrating corporate governance, ethics management and triple bottom‐line reporting by advocating (...) what it called ‘Integrated Sustainability’. The paper argues that this is an example of how ethics management initiatives like code development become more meaningful, if they can be related to the corporation's CSR initiatives and reporting practices. Integration between ethics management and CSR in the context of triple bottom‐line reporting reframes corporate success in a way that makes both ethics management and CSR activities more meaningful. In fact, it is argued that in the absence of a social grammar that establishes this integration, neither codes nor CSR can foster meaningful organizational integrity. (shrink)

Abstract: This paper examines the extent to which the voluntary adoption of codes of conduct by multinational corporations (MNCs) renders MNCs accountable for the performance of actions specified in a code of conduct. In particular, the paper examines the ways in which codes of conduct coordinate the expectations of relevant parties with regard to the provision of assistance by MNCs on grounds of rescue or justice. The paper argues that this coordinative role of codes (...) of conduct renders MNCs more accountable for the performance of actions specified in a code of conduct than they would be without a code of conduct. This interpretation of the significance of codes of conduct is contrasted with the view that codes of conduct render MNCs accountable for performing actions specified in a code of conduct by grounding contractual obligations for the performance of such actions. (shrink)

Abstract: Labour and employment law no longer has a monopoly on regulating labour relations and is facing a crisis as its effectiveness is questioned. Codes of conduct adopted by companies to recognise their social responsibility for the global supply chain are instruments that can usefully complement labour and employment law. The aim of this paper is to analyse in depth the legal nature of codes of conduct and their impact on labour and employment law. Will the (...) use of codes of conduct reinforce the crisis of labour and employment law in the era of globalisation or will these codes be part of a solution to this crisis? Do we have to consider codes of conduct as competitors to labour and employment law or as an opportunity for rethinking the way that labour and employment law norms should be produced and applied? (shrink)

This paper examines the extent to which the voluntary adoption of codes of conduct by multinational corporations rendersMNCs accountable for the performance of actions specified in a code of conduct. In particular, the paper examines the ways in which codes of conduct coordinate the expectations of relevant parties with regard to the provision of assistance by MNCs on grounds of rescue or justice. The paper argues that this coordinative role of codes of conduct (...) renders MNCs more accountable for the performance of actions specified in a code of conduct than they would be without a code of conduct. This interpretation of the significance of codes of conduct is contrasted with the view that codes of conduct render MNCs accountable for performing actions specified in a code of conduct by grounding contractual obligations for the performance of such actions. (shrink)

The use of Big Data—however the term is defined—involves a wide array of issues and stakeholders, thereby increasing numbers of complex decisions around issues including data acquisition, use, and sharing. Big Data is becoming a significant component of practice in an ever-increasing range of disciplines; however, since it is not a coherent “discipline” itself, specific codes of conduct for Big Data users and researchers do not exist. While many institutions have created, or will create, training opportunities to prepare (...) people to work in and around Big Data, insufficient time, space, and thought have been dedicated to training these people to engage with the ethical, legal, and social issues in this new domain. Since Big Data practitioners come from, and work in, diverse contexts, neither a relevant professional code of conduct nor specific formal ethics training are likely to be readily available. This normative paper describes an approach to conceptualizing ethical reasoning and integrating it into training for Big Data use and research. Our approach is based on a published framework that emphasizes ethical reasoning rather than topical knowledge. We describe the formation of professional community norms from two key disciplines that contribute to the emergent field of Big Data: computer science and statistics. Historical analogies from these professions suggest strategies for introducing trainees and orienting practitioners both to ethical reasoning and to a code of professional conduct itself. We include two semester course syllabi to strengthen our thesis that codes of conduct can be harnessed to support the development of ethical reasoning in, and a sense of professional identity among, Big Data practitioners. (shrink)

The criticism that voluntary codes of conduct are ineffective can be met by giving greater centrality to human rights in such codes.Provided the human rights obligations of multinational corporations are interpreted as moral obligations specifically tailored to the situation of multinational corporations, this could serve to bring powerful moral force to bear on MNCs and could provide a legitimating basis for NGO monitoring and persuasion. Approached in this way the human rights obligations of MNCs can be taken (...) to include support for political as well as economic rights. This will go some way towards filling the regulatory gap created by the difficulty of controlling the activities of corporations operating globally. However, such a proposal will require a measure of ‘meta-regulation’ whereby the operations of MNCs are legally required to be sufficiently transparent to create the conditions for effective external moral scrutiny. (shrink)

This paper focuses on the significance of codes of conduct (CoCs) in the internal work context of two retail companies. A stepwise approach is used. First, the paper identifies in what way employees use and refer to CoCs internally. Second, the function and relevance of CoCs inside the two companies are identified. Third, the paper explains why CoCs tend to function in the identified ways. In both cases, the CoCs are clearly decoupled in the sense that they do (...) not concern the immediate work context of the employees. Counter-intuitively, this facilitates the process of establishing the CoCs. Even though the CoCs are not directly relevant for the employees, they are accepted and embraced with regard to contents, focus and function. Above all, the CoCs seem to confirm and even strengthen employee identity. On the basis of these observations, it is suggested that CoCs should not only be valued in light of their direct organisational consequences or lack of such consequences. The issue is not just whether CoCs are decoupled or not. Rather, it is argued that researchers should consider more closely a two-level analysis that takes into account not only the concrete application of CoCs but also their function and meaning. An implication of this is that what might appear as a decoupled code cannot be dismissed as irrelevant to the ‘core’ business processes of the organisation. (shrink)