Corporate codes of ethics: necessary but not sufficient
Article Type: Abstracts From: Human Resource Management International Digest, Volume 17, Issue 2
Webley S. and Werner A. Business Ethics: A European Review (UK), October 2008, Vol. 17 No. 4, Start page: 405, No. of pages: 11
Purpose – considers why there is often a gap between the existence of a company code of ethics (intention) and the actual behaviour and attitudes of employees and the organization as a whole (practice). Argues that although necessary, a code of ethics is not sufficient to influence attitudes and behaviour. Design/methodology/approach – provides some examples of the gap between intention and practice and, suggesting that the gap exists because of ineffective ethics programmes and deficiencies in the organization’s culture, identifies different factors from academic and non-academic studies that support this argument. Explores ways in which the gap might be closed,referring to examples of good practice in the business world. Findings –argues that an inadequate code of ethics, a failure to embed the code into organizational life, the lack of commitment from top managers, pressure to meet targets, and fear of retaliation all serve to widen the gap between policy and practice. In order to encourage high standards of ethical corporate behaviour,organizations should develop and implement formal ethics programmes(incorporating agreed ethical values, a stakeholder-based code, guidance for employees, and training and awareness raising) and nurture and promote an ethical culture through management behaviour and communication, and by incorporating ethical considerations into corporate strategy. Research limitations/implications – offers no suggestions for future research. Originality/value – sets out a practical guide to developing, implementing and maintaining both an effective code of ethics and an ethical culture. ISSN:0962-8770 Reference: 37AZ639
Keywords: Ethics, Corporate culture, Organizational behaviour, Employee attitudes, Employees behaviour, Management attitudes
