Abstract
The adoption of codes of ethics or values statements is intended to guide everyday decisions, as well as to influence the perceptions of external stakeholders. Questions have emerged in the literature about whether the effort to substantively direct decision-making in an organization is marginalized by the more obvious symbolic role of values statements. Here the perceived impact of values statements (defined broadly) on decision-making in organizations is explored, and a number of positive effects observed. Respondents report that values statements create positive externalities providing guidelines for decision-making, increasing accountability, and clarifying expectations. Yet, both cynicism and perceived management hypocrisy emerged in the survey, which together had strong negative effects on the perceived decision-making impact of values statements. Finally, positive external effects (e.g., more symbolic effects) are almost never mentioned by respondents who give their firms high marks on the quality of values statement development, training, and implementation. Yet, such external effects get significantly greater representation in the comments of respondents who report less substance in their firms’ values statement development and implementation processes. In all, the results suggest that the substantive and symbolic roles of values statements are not independent and that external symbolism without internal legitimacy may in the long-run be problematic.
Similar content being viewed by others
References
M. Adams G. S. Day D. Dougherty (1998) ArticleTitleEnhancing New Product Development Performance: An Organizational Learning Perspective Journal of Product Innovation Management 15 403–422 Occurrence Handle10.1016/S0737-6782(98)00013-7
C. L. Adkins E. C. Ravlin B. M. Meglino (1996) ArticleTitleValue Congruence between Co-Workers and its Relationship to Work Outcomes Group and Organization Studies 21 IssueID4 439–461
InstitutionalAuthorNameAMA (2002) American Management Association 2002 Corporate Values Survey American Management Association New York, NY
M. H. Bazerman A. E. Tenbrunsel K. Wade-Benzoni (1998) ArticleTitleNegotiating with Yourself and Losing: Making Decisions with Competing Internal Preferences Academy of Management Journal 23 IssueID2 225–241
D. R. Cressey C. A. Moore (1983) ArticleTitleManagerial Values and Corporate Codes of Ethics California Management Review 25 IssueID4 53–77
G. Day P. Nedungadi (1994) ArticleTitleManagerial Representatins of Competitive Advantage Journal of Marketing 58 IssueID2 31–44
Garofalo, C.: 2003, ‘Toward a Global Ethic: Perspectives on Values, Training and Moral Agency’, International Journal of Public Sector Management 16(7).
S. J. Guastello M. L. Rieke (1992) ArticleTitleA Study of Cynicism, Personality, and Work Values Journal of Psychology 126 IssueID1 37–48
Hemp P. and T. Stewart: 2004, ‘Leading Change when Business is Good: The HBR Interview with Sam Palmisano’, Harvard Business Review 61--70.
Internal Auditor: 1999, ‘Ethics Programs Pose Potential Threats’, Internal Auditor April, 12--13.
B. Jensen (2000) Simplicity: The New Competitive Advantage Random House New York
T. Judge R. D. Bretz (1992) ArticleTitleEffects of Work Values on Job Choice Decisions Journal of Applied Psychology 77 IssueID3 261–71 Occurrence Handle10.1037/0021-9010.77.3.261
D. Kahneman A. Tversky (1979) ArticleTitleProspect Theory: An Analysis of Decisions Under Risk Econometrica 47 263–291
Kanter, D. L. and P. H. Mirvis: 1991, ‘Cynicism: The New American Malaise’, Business and Society Review Spring(77).
A. Kohli B. J. Jaworski (1990) ArticleTitleMarket Orientation: The Construct, Research Propositions, and Managerial Implications Journal of Marketing 54 IssueIDApril 1–18
S. Leonard (2000) ArticleTitleWalking the Talk HR Magazine 45 IssueID10 256
B. M. Meglino E. C. Ravlin (1998) ArticleTitleIndividual values in organizations: Concepts, controversies, and research Journal of Management 24 IssueID3 351–389 Occurrence Handle10.1016/S0149-2063(99)80065-8
Montgomery, D. B., M. C. Moore and J. E. Urbany: 2005, ‘Reasoning about Competitive Reactions: Evidence from Executives’, Marketing Science, forthcoming.
P. E. Murphy (1995) ArticleTitleCorporate Ethics Statements: Current Status and Future Prospects Journal of Business Ethics 14 IssueID9 727–740 Occurrence Handle10.1007/BF00872326
J. Pfeffer R. I. Sutton (2000) The Knowing-Doing Gap Harvard Business School Press Boston, MA
Schwepker, C. H.: 1999, ‘The Relationship between Ethical Conflict, Organizational Commitment, and Turnover Intentions in the Salesforce’, Journal of Personal Selling and Sales Management 19(1).
J. M. Stevens H. K. Steensma D. A. Harrison P. L. Cochran (2005) ArticleTitleSymbolic or Substantive Document? The Influence of Ethics Codes on Financial Executives’ Decisions Strategic Management Journal 26 181–95 Occurrence Handle10.1002/smj.440
Verschoor, C. C.: 2004, ‘CEOs Set Ethics Priorities; Ordinary Citizens Define Ethics Broadly’, Strategic Finance November, 17--18.
Warner, J.: 2004, ‘Ethics for Sale’, CEO Magazine 203(November).
G. Weaver L. Trevino P. Cochran (1999) ArticleTitleCorporate Ethics programs as control systems: Influences of Executive Commitment and Environmental Factors Academy of Management Journal 42 41–57
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Urbany, J.E. Inspiration and Cynicism in Values Statements. J Bus Ethics 62, 169–182 (2005). https://doi.org/10.1007/s10551-005-0188-2
Issue Date:
DOI: https://doi.org/10.1007/s10551-005-0188-2