Hostname: page-component-586b7cd67f-t7fkt Total loading time: 0 Render date: 2024-11-28T17:03:32.077Z Has data issue: false hasContentIssue false
  • English
  • Français

The Institutionalisation of Business Ethics: Are New Zealand Organisations Doing Enough?

Published online by Cambridge University Press:  18 September 2015

Karl Pajo  and
Peter McGhee
Karl Pajo
Affiliation:
Department of Human Resource Management, Massey University, Private Bag 11 222, Palmerston North, New ZealandPhone: +64 6 350 5799, Email: [email protected]
Peter McGhee
Affiliation:
Department of Human Resource Management, Massey University, Private Bag 11 222, Palmerston North, New ZealandPhone: +64 6 350 5799, Email: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper reports the results of a survey investigating the institutionalisation of business ethics among New Zealand's top 200 organisations. A majority of the respondents indicated that steps were being taken by their organisation to incorporate ethical values into daily operations. However, fewer than a quarter of those surveyed indicated that resources were being set aside to accomplish the objective. The most popular tech-nique for institutionalising ethics was the development of a code of ethics. Training in ethics, ethics officers, and ethics committees were not in common use amongst the companies surveyed. Furthermore, very few organisations indicated that ethical behaviour was specifically rewarded. In contrast, a clear majority indicated that they punished unethical actions and made use of disciplinary processes to regulate employee behaviour. Follow-up interviews with a sample of managers from the organisations surveyed high-lighted a preference for the use of informal processes for the institutionalisation of business ethics.

Type
Research Article
Information
Journal of Management & Organization , Volume 9 , Issue 1 , January 2003 , pp. 52 - 65
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2003 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Alam, K.F. 1993, ‘Ethics in New Zealand organisations’, Journal of Business Ethics, vol. 12, pp. 433–440.Google Scholar
Alam, K.F. 1999, ‘Business ethics in New Zealand organisations: Views from the middle and lower level managers’, Journal of Business Ethics, vol. 22, pp. 145–153.Google Scholar
Albinger, H.S., & Freeman, S.J. 2000, ‘Corporate social performance and attractiveness as an employer to different job seeking populations’, Journal of Business Ethics, vol. 28, pp. 243–253.Google Scholar
Ashkanasy, N.M., Falkus, S., & Callan, V.J. 2000, ‘Predictors of ethical code use and ethical tolerance in the public sector’, Journal of Business Ethics, vol. 25, pp. 237–253.Google Scholar
Aupperle, K.E., Carroll, A.B., & Hatfield, J.D. 1985, An empirical examination of the relationship between corporate social responsibility and profitability’, Academy of Management Journal, vol. 28, pp. 446–463.Google Scholar
Babin, B.J., Boles, J.S., & Robin, D.P. 2000, ‘Representing the perceived ethical work climate among marketing employees’, Journal of the Academy of Marketing Science, vol. 28, pp. 345–358.Google Scholar
Barnett, T.D., Cochran, D.S., & Taylor, G.S. 1993, ‘The internal disclosure policies of private-sector employers: An initial look at their relationship to employee whistleblowing’, Journal of Business Ethics, vol. 12, pp. 127–136.Google Scholar
Barnett, T.D., & Vaicys, C. 2000, ‘The moderating effect of individuals' perceptions of ethical work climate on ethical judgements and behavioral intentions’, Journal of Business Ethics, vol. 27, pp. 351–362.Google Scholar
Bartels, L.K., Harrick, E., Martell, K., & Strickland, D. 1998, ‘The relationship between ethical climate and ethical problems within human resource management’, Journal of Business Ethics, vol. 17, pp. 799–804.Google Scholar
Bass, K., Barnett, T., & Brown, G. 1999, ‘Individual difference variables, ethical judgements, and ethical behavioral intentions’, Business Ethics Quarterly, vol. 9, pp. 183–205.Google Scholar
Betts, M. 2001, ‘Busted: WINZ staff nabbed in sting’, The Dominion, 3rd 03.Google Scholar
Bianco, A. 2002, ‘The angry market’, Business Week, 29th 08.Google Scholar
Brenner, S.N. 1992, ‘Ethics programs and their dimensions’, Journal of Business Ethics, vol. 11, pp. 391–399.Google Scholar
Byrne, J.A. 2002, ‘No excuses for Enron's board’, Business Week, 29th 08.Google Scholar
Carlson, D.S., & Kacmar, M.K. 1997, ‘Perceptions of ethics across situations: A view through three different lenses’, Journal of Business Ethics, vol. 16, pp. 147–160.Google Scholar
Center for Business Ethics 1986, ‘Are corporations institutionalizing ethics?’, Journal of Business Ethics, vol. 5, pp. 85–91.Google Scholar
Center for Business Ethics 1992, ‘Instilling ethical values in large corporations’, Journal of Business Ethics, vol. 11, pp. 863–868.Google Scholar
Cleek, M.A., & Leonard, S.L. 1998, ‘Can corporate codes of ethics influence behavior?’, Journal of Business Ethics, vol. 17, pp. 619–630.Google Scholar
Collins, D. 1989, ‘Organizational harm, legal condemnation, and stakeholders' retaliation: A typology, research agenda and application’, Journal of Business Ethics, vol. 8, pp. 1–13.Google Scholar
Colvin, G. 2002, ‘Wonder women of whistleblowing’, Fortune, vol. 146, no. 3, p 56.Google Scholar
Dean, P.J. 1992, ‘Making codes of ethics “Real”?’, Journal of Business Ethics, vol. 11, pp. 285–290.Google Scholar
Delaney, J.T., & Sockwell, D. 1992, ‘Do company ethics training programs make a difference? An empirical analysis’, Journal of Business Ethics, vol. 11, pp. 719–727.Google Scholar
Deshpande, S.P., George, E., & Joseph, J. 2000, ‘Ethical climates and managerial success in Russian organizations’, Journal of Business Ethics, vol. 23, pp. 211–217.Google Scholar
Dwyer, P., Dunham, R.S., Conn, L., McNamee, M., Barrett, A., & Weintraub, A. 2002, ‘Too many rotten apples’ Business Week, 15th 08.Google Scholar
Editorial 2000, ‘Insider trading laws not working’, The Evening Post, 28th 11.Google Scholar
Espiner, G. 2001, ‘PR company censured for spying’, Sunday Star Times, 11th 02.Google Scholar
Federick, W. 1992, ‘The empirical quest for normative meaning: Introduction and overview’, Business Ethics Quarterly, vol. 2, pp. 91–98.Google Scholar
Fritz, J.M.H., Arnett, R.C., & Conkel, M. 1999, ‘Organizational ethical standards and organizational commitment’, Journal of Business Ethics, vol. 20, pp. 289–299.Google Scholar
Glaser, N. 1998, ‘1998 Top 200’, Management Magazine, 12.Google Scholar
Goodwin, J., & Goodwin, D. 1999, ‘Ethical judgements across cultures: A comparison between business students from Malaysia and New Zealand’, Journal of Business Ethics, vol. 18, pp. 267–281.Google Scholar
Griffith, K. 1999, The Future of Business - A View from the Edg', Available at http://www.futurestrust.org.nz/futuretimes/ft99-3/Businesses.html Google Scholar
Gross-Schaefer, A., Trigilio, J., Negus, J., & Ro, C. 2000, ‘Ethics education in the workplace: An effective tool to combat employee theft’, Journal of Business Ethics, vol. 26, pp. 89–100.Google Scholar
Izraeli, D., & BarNir, A. 1998, ‘Promoting ethics through ethics officers: A proposed profile and an application’, Journal of Business Ethics, vol. 17, pp. 1189–1196.Google Scholar
James, H.S. Jr., 2000, ‘Reinforcing ethical decision making through organizational structure’, Journal of Business Ethics, vol. 28, pp. 43–58.Google Scholar
Jose, A., & Thibodeaux, M.S. 1999, ‘Institutionalization of ethics: The perspective of managers’, Journal of Business Ethics, vol. 22, pp. 133–143.Google Scholar
Key, S. 1999, ‘Organizational ethical culture: Real or imagined?’, Journal of Business Ethics, vol. 20, pp. 217–225.Google Scholar
Kiesler, C.A., Nisbett, R.E., & Zanna, M.P. 1969, ‘On inferring one's belief from one's behavior’, Journal of Personality and Social Psychology, vol. 11, pp. 321–327.Google Scholar
Kohut, G.F., & Corriher, S.E. 1994, ‘The relationship of age, gender, experience and awareness of written ethics policies to business decision-making’, SAM Advanced Management Journal, vol. 59, pp. 32–39.Google Scholar
Loe, T.W., Ferrell, L., & Mansfield, P. 2000, A review of empirical studies assessing ethical decision making in business’, Journal of Business Ethics, vol. 25, pp. 185–204.Google Scholar
Lyonski, S., & Gaidis, W. 1991, ‘A cross-cultural comparison of the ethics of business students’, Journal of Business Ethics, vol. 10, pp. 141–150.Google Scholar
McCabe, D.L., Trevino, L.K. & Butterfield, K.D. 1996, ‘The influence of collegiate and corporate codes of conduct on ethics-related behavior in the workplace’, Business Ethics Quarterly, vol. 6, pp. 461–476.Google Scholar
McDonald, G. 2000, ‘Business ethics: Practical proposals for organisations’, Journal of Business Ethics, vol. 25, pp. 169–184.Google Scholar
McDonald, G., & Pak, P.C. 1996, ‘It's all fair in love, war, and business: Cognitive philosophies in ethical decision making’ Journal of Business Ethics, vol. 15, pp. 973–996.Google Scholar
Mailing, N. 2001, ‘Doctor gets off charge after affair’, Sunday Star Times, 25th 03.Google Scholar
Marshall, B., & Dewe, P. 1997, ‘An investigation of the components of moral intensity’, Journal of Business Ethics, vol. 16, pp. 521–529.Google Scholar
Milton-Smith, J. 1997, ‘Business ethics in Australia and New Zealand’, Journal of Business Ethics, vol. 16, pp. 1485–1497.Google Scholar
Murphy, P.E. 1995, ‘Corporate ethics statements: Current status and future prospects’, Journal of Business Ethics, vol. 14, pp. 727–740.Google Scholar
Nakano, C. 1999, Attempting to institutionalize ethics: Case studies from Japan’, Journal of Business Ethics, vol. 18, pp. 335–343.Google Scholar
Norman, G., & Trow, R. 2002, ‘Growers group tried to cover up’, Dominion, 1st 03.Google Scholar
Pava, M.L., & Krausz, J. 1996, ‘The association between corporate social responsibility and financial performance: The paradox of social cost’, Journal of Business Ethics, vol. 15, pp. 321–357.Google Scholar
Paine, L. 1994, ‘Managing for organizational integrity’, Harvard Business Review, 03-April, pp. 106–117.Google Scholar
Schwepker, C.H. Jr. 1999a, ‘Research note: The relationship between ethical conflict, organizational commitment and turnover intentions in the salesforce’, Journal of Personal Selling and Sales Management, vol. 19, pp. 43–49.Google Scholar
Schwepker, C.H. Jr. 1999b, ‘Understanding salespeople's intentions to behave unethically: The effects of perceived competitive intensity, cognitive moral development and moral judgement’, Journal of Business Ethics, vol. 21, pp. 303–316.Google Scholar
Sims, R.L., & Keon, T.L. 1999, ‘Determinants of ethical decision making: The relationship of the perceived organizational environment’ Journal of Business Ethics, vol. 19, pp. 393–401.Google Scholar
Sims, R.L., & Kroeck, K.G. 1994, ‘The influence of ethical fit on employee satisfaction, commitment and turnover’, Journal of Business Ethics, vol. 13, pp. 939–947.Google Scholar
Soutar, G.M., McNeil, M.M., & Molster, C. 1994 ‘The impact of the work environment on ethical decision making: Some Australian evidence’, Journal of Business Ethics, vol. 13, pp. 327–339.Google Scholar
Soutar, G.M., McNeil, M.M., & Molster, C. 1995, ‘A management perspective on business ethics’, Journal of Business Ethics, vol. 14, pp. 603–611.Google Scholar
Spiller, R. 2000, ‘Ethical business and investment: A model for business and society’, Journal of Business Ethics, vol. 27, pp. 149–160.Google Scholar
Stanwick, P.A., & Stanwick, S.D. 1998, ‘The relationship between corporate social performance and organizational size, financial performance and environmental performance: An empirical examination’, Journal of Business Ethics, vol. 17, pp. 195–204.Google Scholar
Transparency International 2001, ‘Corruption Perceptions Index 2000’, Available at http://www.transparency.de/documents/cpi/2000/cpi2000.html Google Scholar
Trevino, .K. 1990, A cultural perspective on changing and developing organizational ethics’, Research in Organizational Change and Development, vol. 4, pp. 195–230.Google Scholar
Trevino, L.K., Weaver, G.R., Gibson, D.G., & Toffler, B.L. 1999, ‘Managing ethics and legal compliance: What works and what hurts’, California Management Review, vol. 41, pp. 131–151.Google Scholar
Trevino, L.K., & Youngblood, S.A. 1990, ‘Bad apples in bad barrels: A causal analysis of ethical decision making behavior’, Journal of Applied Psychology, vol. 75, pp. 378–385.Google Scholar
Trow, R. 2002, ‘Vege cover up wrong — scientist’, Dominion, 2nd 03.Google Scholar
Turban, D.B., & Greening, D.W. 1997, ‘Corporate social performance and organizational attractiveness to prospective employees’ Academy of Management Journal, vol. 40, pp. 658–672.Google Scholar
Tybout, A.M., & Scott, C.A. 1983, Availability of well-defined internal knowledge and the attitude formation process: Information aggregation versus self-perception’, Journal of Personality and Social Psychology, vol. 44, pp. 474–491.Google Scholar
Upchurch, R.S., & Ruhland, S.K. 1996, ‘The organizational bases of ethical work climates in lodging operations as perceived by general managers’, Journal of Business Ethics, vol. 15, pp. 1083–1093.Google Scholar
Victor, B., & Cullen, J.B. 1988, ‘The organizational bases of ethical work climate’, Administrative Science Quarterly, vol. 33, pp. 101–125.Google Scholar
Vidaver-Cohen, D. 1998, ‘Moral climate in business firms: A conceptual framework for analysis and change’, Journal of Business Ethics, vol. 17, pp. 1211–1226.Google Scholar
Viswesvaran, C., & Deshpande, S.P. 1996, ‘Ethics, success, and job satisfaction: A test of Dissonance Theory in India’, Journal of Business Ethics, vol. 15, pp. 1065–1069.Google Scholar
Vitell, S.J., & Davis, D.L. 1990, ‘The relationship between ethics and job satisfaction: An empirical investigation’, Journal of Business Ethics, vol. 9, pp. 489–494.Google Scholar
Vitell, S.J., Dickerson, E.B., & Festervand, T.A. 2000, ‘Ethical problems, conflicts and beliefs of small business professionals’, Journal of Business Ethics, vol. 28, pp. 15–24.Google Scholar
White, L.P., & Lam, L.W. 2000, ‘A proposed infrastructural model for the establishment of organizational ethical systems’, Journal of Business Ethics, vol. 28, pp. 35–42.Google Scholar
Wiley, C. 1995, ‘The ABC's of business ethics: Definitions, philosophies and implementation’, Industrial Management, vol. 37, pp. 22–27.Google Scholar
Williams, A. 1999, ‘FCL chief resigns’, The Press, 24th 12.Google Scholar
Wimbush, J.S., & Shephard, J.M. 1994, ‘Toward an understanding of ethical climate: Its relationship to ethical behaviour and supervisory influence’, Journal of Business Ethics, vol. 13, pp. 637–647.Google Scholar
Zabid, A.R.M., & Alsagoff, S.K. 1993, ‘Perceived ethical values of Malaysian managers’, Journal of Business Ethics, vol. 12, pp. 331–337.Google Scholar
Zahra, S.A., & LaTour, M.S. 1987, ‘Corporate social responsibility and organizational effectiveness: A multivariate approach’, Journal of Business Ethics, vol. 6, pp. 459–467.Google Scholar