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This paper presents the results of a qualitative study of ethical decision making by managers employed in two major companies in the U.K. Forty managers from these large commercial organizations were interviewed about how ethical issues arise and are dealt with at work. This interview data was transcribed and a thematic content analysis was conducted in order to explore the various influences upon managerial ethical decision making. The analysis framework includes analysis at both an individual level, in terms of the role of individual characteristics such as personal value systems, and at an organizational level, in terms of the influence of organizational characteristics such as organizational culture. The paper then goes on to examine the extent to which this empirically-based account of ethical decision making is congruent with, or runs contrary to, some of the main theoretical propositions contained in the ethical decision-making literature. This provided only limited empirical support for the theoretical propositions described in the literature. In particular, the findings of the empirical work reported here suggest that while personal values may play a part in organizational ethics, the ethical decision-making process itself is subject to a much greater influence from the everyday demands and commercial pressures which managers perceived as being placed upon them in the types of organizations examined in this study. Thus, while supportive of the notion that values may be important in some respects, the study suggests that they are not necessarily that closely involved with the actual decision-making process. Rather the evidence gathered in this study indicates that they can exert an affectively-mediated retrospective effect. This possibility would suggest a reformulation of the role of values in the ethical decision-making process, while also calling for a greater emphasis upon the role of emotions. These are, however, only tentative findings and must therefore be subject to further empirical work before the precise way in which ethical issues arise, unfold and are dealt with in the workplace can be understood.

Ethics is an integral part of an organization's overall culture. Designing an ethical organization requires systematically analysing all aspects of the organization's culture and aligning them so that they support ethical behaviour and discourage unethical behaviour. This chapter considers issues related to establishing an ethical culture in an organization, through a case analysis of a major Australian private hospital and its approach to establishing and continuing to define an ethical culture. Key aims of the research were to identify the role of executive and senior management leadership in developing a values-based approach to ethical culture particularly regarding senior management’s own awareness, support and communication of the stated values. The chapter considers the theoretical approaches available to organizations in developing and sustaining ethical approaches in relation to organizational structures, systems and processes that inform cultural type. The paper also critically comments on the situation presented within the case analysis, providing conclusions and insights for further research initiatives related to such case-based field investigation.

Extant theory tends to treat Organizational Culture (OC) and fraud-related values as static, characterizing culture as synonymous with potential ethical values − but devoting less attention to how the culture and values arose and where they are headed. Buffer/conduit theory proposes that accountants learn to use a taxonomy containing three dynamic layers: collective fraud orientation, a buffer/conduit layer, and individual fraud orientation. The middle layer contains OC-related internal controls that buffer the orientation layers from spreading fraud-encouraging values, and serve as conduits transmitting fraud-deterring values − or, when controls do not function as intended, transmitting fraud-encouraging values. A factor analysis of 11 indicators of this three-layer taxonomy suggests that older generations of accounting practitioners apply the taxonomy, but millennials do not. Predisposition to commit fraud is especially salient to internally focused millennials, who uniquely perceive recruitment and training as compensating mechanisms and as collective buffers.

This chapter examines the integration of Giving Voice to Values (GVV) into an accounting ethics course. GVV has received a great deal of interest by business educators in the past decade and, more recently, by those accounting faculty who teach accounting ethics in a standalone course or as part of another course. This chapter describes GVV assumptions and principles that are helpful for any faculty considering adopting GVV. After a brief review of different instructional approaches for teaching accounting ethics, GVV literature relating to accounting ethics is examined. The integration of GVV builds on the Kelly (2017) integration of leadership topics in an accounting ethics course and synergistically promotes moral motivation and moral character that contributes to ethical behavior. To facilitate the integration efforts, this chapter presents specific learning objectives, GVV background materials, case recommendations, and application/assessment approaches. This chapter concludes with a discussion of GVV and its possible role in assurance of learning efforts.

Purpose — This paper explores the field of ethical conflicts of human resource (HR) managers in Slovenian organizations: unfair payments, extreme differences in rewards, not respecting employees’ rights, discrimination; using over excessive disciplinary power, not paying social contributions, and engaging in manipulations, among others. The main attention is paid to the implementation of employees’ rights and the factors that affect the process of the implementation of employees’ rights.Design/methodology/approach — We applied an ABC (antecedents — behavior — consequences) analysis of ethical organizational behavior. The survey encompasses 73 HR managers of Slovenian companies.Findings — HR managers perceive their role in an organization as being caught in a specific position in relation to senior management and employees. The study shows that in organizations where the “soft” and “combined” model of human resource management (HRM) is developed, the implementation of employees’ rights is more strongly realized.Research limitations — The sample size is one of the chapter’s limitations. The other is the use of quantitative statistical approach without applying other methods. In the future it should be accompanied with qualitative techniques by which dishonesty would be more directly linked to the violation of employees’ rights.Practical implications — Professional education can (1) form a solid system of professional values that can help to prioritize expectations and demands in the work place and (2) equip HR managers with competencies to solve ethical issues and to engage in ethical behavior.Social implications/value — The results show that first of all, HR managers are responsible in their role (responsibility of the role in developing the model of HRM which facilitates the implementation of employees’ rights) and only secondly, comes the responsibility of HR managers in an active sense of responsibility (responsibility as a virtue).

Ethics initiatives are commonly used by organizations to influence members’ behavior with the expressed goal of aligning the behavior exhibited in the organization with the organization's stated rules and values (Laufer & Robertson, 1997; Schwartz, 2002; Tenbrunsel, Smith-Crowe, & Umphress, 2003; Trevino, Weaver, Gibson, & Toffler, 1999; Weaver, Trevino, & Cochran, 1999a, 1999b, 1999c). It is hoped that by emphasizing the organization's values and rules, organization members will be more thoughtful about their work behavior and consider these values and rules when making decisions at work.

This study explores auditors’ professional attitudes and behaviours. It tests the influence of public interest commitment, independence enforcement beliefs and organisational ethical culture on auditors’ acceptance of and engagement in practices that compromise their objectivity. The study is based on survey responses of 122 Spanish auditors. To analyse the combined effect of the variables under study, variance-based structural equation modelling (partial least squares, PLS) was employed. The results suggest that the regulatory efforts to improve auditors’ behaviours by enforcing independence rules have been internalised by auditors. The results also reinforce the need to instil the societal responsibilities of professional auditors, since auditors’ public interest commitment is related to their ethical decision making. Furthermore, this study reveals that firms’ ethical cultures influence auditors’ commitment to the public interest, as well as their ethical decision making. The study raises practical implications for auditing professionals, regulators and audit firms. Understanding auditors’ beliefs and behavioural patterns is critical to proposing mechanisms that enhance their ethical behaviours, which could ultimately enhance audit quality. The chapter contributes to the field by analysing the combined effect of the regulatory framework and organisational context on auditors’ professional values and behaviours.

Although educators would likely agree that values and ethics are important in all disciplines, they have particular importance for practice-oriented fields. These applied professionals need to solve complex social problems that require the application of ethical standards and value perspectives. While the importance of value-engaged practice is known to the applied field, there is little research and conversation about how values can be integrated into teaching. This chapter synthesizes values-education approaches in various practice-based disciplines such as public administration (PA), program evaluation, social work, and public health. This chapter draws from empirical and theoretical works as well as the authors' experiences developing, participating in, and conducting values-based research on professionals and professional education.

The number of Shari’ah Compliant companies is tremendously increasing year by year in Malaysia. In an attempt to win the trust and confidence of its Muslim investors and stakeholders, the Shari’ah Compliant companies must portray their sincerity and earnestness in complying with Islamic values which may have implications on winning the trust of Muslim investors largely from oil-rich Arab Gulf Region which have flush of funds currently. Thus, the purpose of the study is to gauge the extent of the corporate ethical identity (CEI) that is being incorporated by the Shari’ah Compliant companies in Malaysia.

This study used the content analysis to develop CEI by adding all the items covering the four themes, which were underlying philosophy and values, interest-free and Islamically acceptable activities, developmental and social goals and environment theme. This CEI index was developed by using the dichotomous, which the score of ‘1’, if the company disclose the items and ‘0’, if it is not. The process will add all the scores and equally weighted.

The study showed that the level of communicated ethical identity disclosed in annual reports of Shari’ah Compliant companies for the year ended 2008 is relatively low with average of 23.66%. Overall, the findings of the study showed that the Shari’ah Compliant companies revealed more communicated ethical identity on Theme 1 (underlying philosophy and values) in the annual reports for the year ended 2008. In addition, in the year 2008, the findings showed that the dimension of developmental and social goals has the most influence towards the ethical identity index of Shari’ah Compliant companies.

The source of data in this study is limited to companies’ annual report. In other words, the extent of communicated ethical identity index is constructed limited to company’s annual report. The study has shown that annual reports is not the only means or medium of disclosure. Hence, studying other forms of disclosure on communicated ethical identity could possibly complement and add value to any investigation on the nature and extent of communicated ethical identity through annual reports in the future.

The study is expected to alert the Securities Commission with regard to the definition of Shari’ah Compliant companies which should not just include ‘good public perception and image company’ but also the extent of the application of Islamic values in the conduct of their businesses.

The study provides a new benchmark of an ideal Islamic communicated CEI index based on Shari’ah principles and also past literatures. The study developed a checklist from preliminary checklist with 88 items based on Berrone, Surroca, and Tribo (2005), Haniffa and Hudaib (2007) and Roshima, Yuserrie and Hasnah (2009). In order to develop the checklist, the researchers also look on the definition of Islamic ethics defined by Khan (2009).