Bad ethical practice, encouraged by a denial of the existence of ethical values in business, can be detrimental to the efficiency of the economy and the corporation. Murphy suggests that extensive ethics education programs are required to reinforce and standardize interpretation of the ethical code. Terrine  supports this with the proposition that, “Codes of ethics will affect ethical/ unethical behavior significantly only if they are consistent with the organizational culture and are enforced . I Bartlett, Andrew ; Preston, David Journal of Business Ethics, 2000, Volvo. 23(2), up. 199-209 [Peer Reviewed Journal] Corporate Ethical Codes: Effective Instruments For Influencing Behavior Stevens, Betsy Journal of Business Ethics, 2008, Volvo. 78(4), up. 601 -609 [Peer Reviewed Journal] He postulated that the mere existence of a code was not influential, but processes and systems that the code symbolized needed to be in place for the codes to be effective.
The respondents in all these studies saw the code as external and were not influenced by it Stevens study indicated that the content in ethical codes was primarily designed to defend organizations against illegal behavior and was found lacking in visionary respective and in providing ethical guidance (1 996). Snell and Whereon agreed, concluding codes were oriented toward corporate self-defense (2000). Captain found that most codes described company responsibilities for product quality and services, obeying laws and protecting the environment (2004).
He also found content differences in European, American, and Asian codes. European codes focused almost 50% more on the environment than American codes. Honesty was a major theme in American codes (64%), but it was mentioned less frequently in European codes (45%) ND in Asian codes (38%). Fairness was a less prevalent topic in American codes than in European and Asian codes (Captain, 2004). G But the operative words here are regulation and control. It is not surprising that codes in these compliance programs failed to achieve their goals.
Forced code compliance in organizations is ineffective. Codes imposed by senior management typically do not work because employees have not accepted them as part of their culture. Preventing unethical behavior in the workplace is a significant management challenge (Jones, 1991). Some critics argued the codes were simply public relations tools; others believed they could be effective in encouraging more ethical behavior in organizations. The debate over ethical code effectiveness continues today. Codes expresses ethical limitation of the organization on what is acceptable and what is not.
Marinara the mere existence of a code was not influential, for the codes to be effective. Similarly Snell and Whereon observed this same phenomena (2004). They saw that willingness to employ best practices for implementing ethical codes was weak in Chinese organizations because of electives features in the culture. Pseudo-support was given, but companies did not embrace the ethical code even when it was in their best interest to do so. The authors hypothesized that culture and power distance play significant roles since subordinates are expected to publicly support their superiors even if they disagree.
Codes imposed by senior management on Chinese workers were not accepted by the workers. Their study illustrates the interplay between culture and ethical codes, whether in an Asian or U. S. A company. Codes imposed by external agents are typically ineffective. In sum, good ethics cannot be ordered by management. Codes attempting to create legal controls are generally ineffective. Why codes are affective? Terrine et al. (1999) also found that ethical leadership and open discussions of ethics in the organization contributed to increased ethical behavior.
Strong leaders who share their values with others positively affect the organization and its code. Then, Terrine and Weaver discovered a correlation between alumni who attended honor code colleges, then worked for organizations with strong ethical codes (2003, p. 8). Those employees self-reported fewer unethical behaviors, suggesting that businesses desiring ethical employees can benefit by hiring graduates of honor code colleges. Adam and Ragman- Moore noted that the influence of managers setting examples was more effective than formal ethics training (2004).
Somers (2001) discovered that management accountants perceived less wrongdoing in organizations with corporate codes and respondents in organizations without formal codes were more aware of wrongdoing. Awareness and understanding the codes is similarly important. Both Woodbury (1995) and Chon et al. , (2003) showed he usefulness of codes as decision-making guides increased with the familiarity of the content. Table 2 shows recent studies which support the effectiveness of ethical codes. N indicates the number of respondents in the study and country indicates their home country.
Hooters, K, Unshackles, J, Peters, C & Rosen, M 2014, ‘Methodological Issues in the Design of Online Surveys for Measuring Unethical Work Behavior: Recommendations on the Basis of a Split-Ballot Experiment’, Journal of Business Ethics, Volvo 120, no 2, up. 275-289, Business Source Complete, Boycotts, viewed 22 February 2015. Positive Job Response and Ethical Job Performance Valentine, Sean ; Vary, Philip ; Godwin, Lynn ; Barnett, Tim Journal of Business Ethics, 201 0, Volvo. 91 (2), up. 95-206 [Peer Reviewed Journal]: the ethical leadership of top managers will influence employees’ ethical decisions On the other hand, it is also logical to assume that as workers begin to detach from companies, they are less likely to embrace the broader responsibilities associated with good performance, and this is likely to have implications for the more pro-social forms of performance such as citizenship behavior and ethical behavior Research in the last 2 decades has begun to demonstrate that these job attitudes may have a greater impact on extra-role or pro-social aspects of job performance.
We suggest here that engaging in ethical behaviors in the performance of one’s job is a form of pro-social job behavior and that positive work responses will lead to higher levels of ethical job performance. Training: These items asked supervisors to make both absolute and relative judgments about the ethical/ socially responsible behavior of their subordinates. Although the scale items were not behaviorally anchored, formal ethics raining and a code of conduct appeared to be central to this company’s policy.
Employees had received an average of 7. 48 h of ethics training in the last year, and 97. 8% of employees indicated that the company had shared with them “an ethics code that governs work conduct in the organization. ” An exploratory “principal components” factor analysis indicated that one factor emerged with an generally Of 3. 97 and that 79% Of the variance was explained, with factor loadings ranging from 0. 76 to 0. 95. Determinants of the Effectiveness of Corporate Codes of Ethics: An Empirical Study Sings, Gang
Journal of Business Ethics, 2011, Volvo. 1 01(3), up. 385-395 [Peer Reviewed A latest comprehensive survey of 5065 employees of US based company with more than 200 persons employed found that ethics programs are hugely effective. The percentage of respondents who reported working in an environment in which people feel motivated and empowered to do the right thing doubles (from 43 to 90%) among employees who work in companies with comprehensive ethics and compliance programs versus those who do not (KEMP, 2008, p. Iii)..
Schwartz (2001 in a study of four large Canadian impasses, found that codes of ethics are potentially a factor influencing the behavior of employees, managers and ethics officers. Stops and Britannic (1999), in a study of 348 managing directors of Irish-owned businesses found a statistically significant relationship between the existence of corporate codes and managerial behavior: this result implies that when managers confront issues directly affecting the firm’s conduct, a code partially guides managerial thinking about ethical wrongdoing (p. 22). Boo and Koch (2001), in a study of 237 MBA students in Singapore, found that code supporting particularly enforcement of the code in the organization) and organization ethics variables (particularly top management support for ethical behavior and the link between ethical behavior and career success) have significant positive incremental influence on ethical behavior. Several other studies have found a significant relationship between codes and behaviors (e. . , Farrell and Skinner, 1988; – – The empirical research did not provide a complete positive link between rewards systems and unethical behavior, it did show that the relationship could exist ND was dependent often upon other factors, such as the ethical environment, ethics can be described as a set of moral values that govern a person behavior or how an activity is conducted.