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Book part
Publication date: 30 October 2018

FR. Oswald A. J. Mascarenhas, S.J.

This chapter covers basic concepts, ethical theories, and moral paradigms of corporate ethics for identifying, understanding, and responding to the turbulent market…

Abstract

Executive Summary

This chapter covers basic concepts, ethical theories, and moral paradigms of corporate ethics for identifying, understanding, and responding to the turbulent market challenges of today. The concept, nature, and domain of ethics, business ethics, managerial ethics, and corporate executive ethics are defined and differentiated for their significance. The domain, scope, and nature of related concepts such as legality, ethicality, morality, and executive spirituality are distinguished and developed. Among normative and descriptive ethical theories that we briefly review and critique here are teleology or utilitarianism, deontology or existentialism, distributive justice, corrective justice, and ethics of malfeasance and beneficence. Other moral theories of ethics such as ethics of human dignity, ethics of cardinal virtues, ethics of trusting relations, ethics of stakeholder rights and duties, ethics of moral reasoning and judgment calls, ethics of executive and moral leadership, and ethics of social and moral responsibility will be treated in a later book. The thrust of this book is positive: despite our not very commendable track record in managing this planet and its resources, our basic questions are: Where are we now? What are we now? Where should we as corporations go, and why? What are the specific positive mandates and metrics to corporate executives to reach that desired destiny? This chapter explores responses to these strategic corporate questions.

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Corporate Ethics for Turbulent Markets
Type: Book
ISBN: 978-1-78756-187-8

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Article
Publication date: 1 January 2004

Rafik Z. Elias

Earnings management behavior has been a concern in the accounting profession for a long time. This study surveyed 583 certified public accountants (CPAs) in public…

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7022

Abstract

Earnings management behavior has been a concern in the accounting profession for a long time. This study surveyed 583 certified public accountants (CPAs) in public accounting, industry and academia to determine if there is a link between corporate ethical values and perception of earnings management. Selected earnings management scenarios were mailed to the respondents before high‐profile bankruptcies became public information. The results indicated that CPAs employed in organizations with high (low) ethical standards viewed earnings management activities as more unethical (ethical). Within‐group analyses of the respondents also found significant differences on the perception of corporate ethical values based on gender, age, job title and other demographic factors. The results indicated that there were early warning signals in the accounting profession regarding ethical values and earnings management. The results were particularly alarming among CPAs employed in industry who reported lower perception of their corporate ethical values.

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Managerial Auditing Journal, vol. 19 no. 1
Type: Research Article
ISSN: 0268-6902

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Article
Publication date: 9 October 2009

Shaun Powell, Wim J.L. Elving, Chris Dodd and Julia Sloan

The purpose of this paper is to investigate and measure employees' perception of actual and desired corporate ethical values as a component of corporate identity within a…

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2278

Abstract

Purpose

The purpose of this paper is to investigate and measure employees' perception of actual and desired corporate ethical values as a component of corporate identity within a major UK financial institution, against a comparison with their employees' own individual ethical values.

Design/methodology/approach

The multi‐method case study uses a mix of secondary data analysis, key interviews and 245 employee questionnaires. The financial institution is selected as it is identified as being in the process of instigating what may be termed a “monolithic” corporate branding strategy while using a “top down” communication approach across its various operations in the UK.

Findings

The paper shows that employees' perceive managements' ideal identity to be significantly different to the operational reality that “is” the company, especially in relation to ethical values. These gaps also vary between major divisions within the organisation, as well as between differing staffing levels, adding empirical support to existing theories that corporate identity and corporate brand management will need to take into account many sub‐cultures within any large organisation, as well as the individual values of its employees, and that a top down communication programme that fails to take this into consideration will face many difficulties.

Originality/value

This empirical based case study research focuses upon a comparison between internal perceptions of actual and ideal corporate values as part of the corporate identity, in comparison to employees' own individual values has been largely overlooked within the corporate identity and branding literatures to date.

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Corporate Communications: An International Journal, vol. 14 no. 4
Type: Research Article
ISSN: 1356-3289

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Article
Publication date: 1 January 2021

Nazli Anum Mohd Ghazali

The purpose of this paper is to examine the extent to which demographic factors and corporate ethical value impact on ethical decisions of Malaysian accounting practitioners.

Abstract

Purpose

The purpose of this paper is to examine the extent to which demographic factors and corporate ethical value impact on ethical decisions of Malaysian accounting practitioners.

Design/methodology/approach

A questionnaire survey was carried out to elicit opinions from accounting practitioners on corporate ethical values and ethical judgements. Regression analysis was performed on 201 completed and useable questionnaires.

Findings

The regression analysis shows that corporate ethical value is a significant factor determining ethical judgements. Age is also a significant factor, with older accounting practitioners being stricter in their ethical stance. To a lesser extent, gender is also significant, with females exhibiting higher ethical judgements than males.

Research limitations/implications

The regression model reports an adjusted R-squared of 19.2%, which suggests further work in this area is necessary to identify other determinants for (un)ethical judgements. A qualitative approach such as interviewing corporate players may shed light on other possible factors.

Practical implications

The findings suggest that regulatory efforts have contributed towards a more ethically imbued corporate environment. The Malaysian Code on Corporate Governance (2012), which recommends corporations to have formalized ethical standards and women on corporate boards, appears to have positive influence on creating a more ethical working climate. In addition, the enactment of the Minimum Retirement Age Act (2012) also proves relevant in further promoting ethical judgements.

Originality/value

The study highlights the applicability of the theory of moral development to an Asian developing country, and that gender, age and corporate ethical values are complementary in influencing ethical judgements of accounting practitioners in Malaysia.

Details

International Journal of Social Economics, vol. 48 no. 3
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 9 October 2019

Gawon Yun, Maling Ebrahimpour, Prabir Bandyopadhyay and Barbara Withers

The purpose of this paper is to examine the impact of a corporate ethical policy, such as a code of ethics, on the unethical behavior of internal and vendor employees in…

Abstract

Purpose

The purpose of this paper is to examine the impact of a corporate ethical policy, such as a code of ethics, on the unethical behavior of internal and vendor employees in the supply chain in India. It also aims to find whether International Standards Organization (ISO) certification of vendors affects the result and any significant relationship between management commitment and unethical behavior can be supported by the findings as well.

Design/methodology/approach

Empirical analyses were conducted on a survey consisting of 43 questions comprising 181 valid responses. Multiple regression analysis that includes four independent variables – code of ethics, management commitment, supply chain principles and personal values taking unethical behavior as dependent variable – was used to find the significance of the relationship.

Findings

The implementation of a code of ethics, management commitment, supply chain principles and personal values all have a negative association with unethical behavior. Personal values, measuring a firm’s financial aspects for non-compliance to ethical behavior, have a positive association with unethical behavior. The relationships of top management commitment, personal values with internal employees’ unethical behavior are significant. The significant relationship between management commitment and unethical behavior can be supported by the findings as well. It was also found that ISO certificates and firm size as the control variables did not have any effect on the relationship between the independent variables and unethical behavior. The analysis also shows that ISO 26000 certificate, the international standard for socially responsible operations, does not impact this relationship.

Research limitations/implications

Measuring substantial managerial effort for corporate social responsibility (CSR) practices by asking questions like, “how committed employees think top management is to social responsibility,” may not fully measure substantial managerial effort for CSR practices. To improve the results of the current study, future research can use the CSR index or disclosure as a measure to better reflect management commitment and practice for social responsibility. Second, the current study is limited to measuring how many occurrences of unethical behavior are witnessed by employees instead of what specific unethical behavior is more often witnessed. Considering India has the second largest population in the world, 181 responses may not represent the true practices in the business environment in India for generalization.

Practical implications

The findings suggest that management should put more of an emphasis on improving the commitment of upper-level managers to decrease the overall unethical practices of their employees. The study finds that employees’ personal values influence their ethical behavior. Therefore, communications and training of employees at all levels should emphasis on improving personal values.

Social implications

Businesses should influence academics to incorporate personal value building in course curricula. The Indian CSR law should incorporate the holistic view of CSR taking care of needs of all stakeholders under the provision of the regulation. In 2015, India became the first country in the world to legislate CSR practices in corporations but it misses the opportunity to sensitize the management and employees on ethical practices as it mainly identified philanthropic expenses as mandatory CSR spending and silent on ethical business practices.

Originality/value

The present study contributes to the literature by bringing supply chain context to the effect of different factors on unethical behaviors and interaction of internal and vendor firms in terms of ethical practices. There are several studies on business ethics in different countries including China, but in the case of India similar studies are not much. The present study fills the gap.

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Benchmarking: An International Journal, vol. 27 no. 1
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 8 February 2011

Martha C. Andrews, Thomas Baker and Tammy G. Hunt

This study seeks to explore the relationship between corporate ethical values and person‐organization fit (P‐O fit) and the effects on organization commitment and job…

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6481

Abstract

Purpose

This study seeks to explore the relationship between corporate ethical values and person‐organization fit (P‐O fit) and the effects on organization commitment and job satisfaction. Further, it aims to examine the construct of moral intensity as a moderator of the P‐O fit‐commitment relationship as well as the P‐O fit‐job satisfaction relationship.

Design/methodology/approach

Using a sample of 489 members of the National Purchasing Association in the USA, a structural model was examined in which it was hypothesized that corporate ethical values would be positively related to person‐organization fit and P‐O fit in turn would be positively related to commitment and job satisfaction. It was further hypothesized that the outcomes associated with P‐O fit would be moderated by moral intensity such that high moral intensity would strengthen the P‐O fit outcomes relationships.

Findings

All of the hypotheses were supported.

Research limitations/implications

All data stem from one data source, introducing the possibility of mono‐source bias. Additionally, all scales use self‐reports, introducing the possibility of mono‐method bias.

Practical implications

These results highlight the importance of corporate ethical values and moral intensity in building and maintaining an ethical and committed workforce.

Originality/value

The findings of this study contribute to the ethics and P‐O fit literature by establishing a link between corporate ethical values and P‐O fit. It further construes moral intensity as a subjective variable based on the perceiver rather than an objective characteristic of ethical issues. Moral intensity was found to strengthen the relationships between P‐O fit and satisfaction and P‐O fit and commitment.

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Leadership & Organization Development Journal, vol. 32 no. 1
Type: Research Article
ISSN: 0143-7739

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Article
Publication date: 8 August 2009

Boleslaw Rok

This paper aims to explore how the model of participative leadership may operate in the context of partnership with internal stakeholders. By linking the moral claims of

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6187

Abstract

Purpose

This paper aims to explore how the model of participative leadership may operate in the context of partnership with internal stakeholders. By linking the moral claims of an organization's employees to CSR strategies, an organization can strengthen emotional bonds with its key stakeholders, and create deeper, longer‐lasting relationships that translate to increased support, loyalty and a sense of stakeholder ownership.

Design/methodology/approach

Although there are many definitions of leadership, none of them is universally agreed‐upon. The paper reviews different approaches and paradigms of leadership and the role of ethical values in leading responsible organizations. The effective and ethical leadership and the critical role of employees' participation in implementing corporate responsibility agenda are analyzed.

Findings

Corporate responsibility strategy will succeed only if employees recognize that this strategy creates value for them as well. In recent times participative leadership is at the center of an important shift in a corporate world increasingly moving away from traditional top‐down leadership to more decentralized models based on ethical values shared by all stakeholders.

Research limitations/implications

Only a small portion of the existing literature on responsible leadership in the context of CSR reports of studies using longitudinal or empirical designs. Further research should focus on the relationship between different leadership paradigms and corporate social performance.

Practical implications

Moral motives carry greater weight in determining the total “CSR motivation” held by each employee, so employees will seek to work for, remain in, and get attached to organizations whose organizational strategies are consistent with their moral values. An ethical infrastructure based on the proper leadership model is critical in the process of adopting responsibility‐based practices throughout organization.

Originality/value

This paper intends to conceptualize the linkage between ethical values of the employees and the type of leadership enhancing implementation of corporate responsibility strategy. Recent discussions among academics and practitioners are showing that effective CSR should be understood more as a process, through which individuals' moral values and concerns are articulated.

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Corporate Governance: The international journal of business in society, vol. 9 no. 4
Type: Research Article
ISSN: 1472-0701

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Article
Publication date: 20 January 2020

Tuan Azma Fatiema Tuan Ibrahim, Hafiza Aishah Hashim and Akmalia Mohamad Ariff

The purpose of this study is to investigate the relationship between ethical values and performance in the context of the banking sector in Malaysia.

Abstract

Purpose

The purpose of this study is to investigate the relationship between ethical values and performance in the context of the banking sector in Malaysia.

Design/methodology/approach

Based on the philanthropic model, this study posits that firms undertaking zakat and charity are ethical firms. Zakat disclosure index (ZDI) and charity disclosure index (CDI) were constructed to measure ethical values. This study hypothesises that ethical values are positively associated with bank performance. Ethical values (i.e. CDI and ZDI) and financial performance data (i.e. return on assets) were collected from the disclosures made in the annual reports of 50 banks for a period of five years (2010-2014).

Findings

A positive association was found between zakat disclosure and bank performance. The results indicate that higher zakat disclosure is associated with greater bank performance. However, no relationship was found between charity disclosure and bank performance.

Research limitations/implications

Considering the limitation of the index used in this study, other dimensions such as corporate governance, sustainability, products and environment can be considered in the development of index to measure ethical values in future studies.

Originality/value

This study offers additional explanation on the relationship between ethical values and performance by examining the role of zakat disclosures that characterize the unique aspects of Malaysian companies.

Details

Journal of Islamic Accounting and Business Research, vol. 11 no. 1
Type: Research Article
ISSN: 1759-0817

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Article
Publication date: 9 October 2017

Min-Seong Kim and Lori Pennington-Gray

Although ethical management would seem to be a core responsibility in today’s business climate, empirical research and practical applications in the hospitality industry…

Abstract

Purpose

Although ethical management would seem to be a core responsibility in today’s business climate, empirical research and practical applications in the hospitality industry remain scarce. Hence, the aim of this study is to examine the influences of ethical value and corporate philanthropy on the foodservice industry in South Korea.

Design/methodology/approach

Frequency, reliability, confirmatory factor, correlation and structural equation modeling analyses were used.

Findings

The results indicate that, overall, ethical value directly influences corporate philanthropy and two aspects of organizational commitment (i.e. continuous and affective). Corporate philanthropy, in turn, positively relates to organizational commitment dimensions as well as financial and non-financial performance. Affective and continuous commitments lead to improvements in both financial and non-financial performance.

Practical implications

The strategic importance of ethical value and the following philanthropic activities in the foodservices is demonstrated from the findings of this research.

Originality/value

The current study is the first to develop and test an empirical model which accounts for the effects of ethical value on both financial and non-financial performances in the franchisor–franchisee relationship.

Details

International Journal of Contemporary Hospitality Management, vol. 29 no. 10
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 1 August 2002

Kiran Karande, C.P. Rao and Anusorn Singhapakdi

A recent article pointed out that “past research has paid relatively little attention to the sources of individuals’ moral philosophies from either a conceptual or an…

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3970

Abstract

A recent article pointed out that “past research has paid relatively little attention to the sources of individuals’ moral philosophies from either a conceptual or an empirical standpoint” and investigated the determinants of idealism and relativism among American marketers. A literature review indicates that there is even less theoretical and empirical cross‐cultural investigation of moral philosophies. As more and more companies are expanding into foreign markets, problems related to cross‐national ethics and social responsibility are becoming increasingly prevalent. Therefore, this study proposes a framework explaining the differences in the idealism and relativism of American, Malaysian, and Australian marketers based on: country differences (cultural differences and differences in economic and legal/political environment); corporate ethical values; and gender and age of the marketer. Results indicate that there are differences in the level of idealism and relativism exhibited by marketers from the three countries. Irrespective of country, corporate ethical values are positively related to the idealism and negatively related to the relativism of marketers. Also, irrespective of country, women are more idealistic than men, and relativism increases with age. Implications are offered and avenues for future research suggested.

Details

European Journal of Marketing, vol. 36 no. 7/8
Type: Research Article
ISSN: 0309-0566

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