Skip to main content
Log in

Ethics Programs and Ethical Culture: A Next Step in Unraveling Their Multi-Faceted Relationship

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

One of the main objectives of an ethics program is to improve the ethical culture of an organization. To date, empirical research treats at least one of these concepts as a one-dimensional construct. This paper demonstrates that by conceptualizing both constructs as multi-dimensional, a more in-depth understanding of the relationship between the two concepts can be achieved. Through the employment of the Corporate Ethical Virtues Model, eight dimensions of ethical culture are distinguished. Nine components of an ethics program are identified. To assess the relationship between ethics programs and ethical culture, a survey was conducted of 4,056 members of the U.S. working population. The results show that the relationships between the components of an ethics program and the dimensions of ethical culture differ in strength, nature, and significance. Implications for research and practice are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

References

  • Barnes, C.S.J. (2007). ‹Why Compliance Programs Fail: Economics, Ethics and the Role of Leadership. HEC Forum, 19, 109–123. doi:10.1007/s10730-007-9034-5

    Article  Google Scholar 

  • Baucus, M.S., & Near, J.P. (1991). Can Illegal Corporate Behavior Be Predicted? An Event History Analysis. Academy of Management Journal, 34, 9–36. doi:10.2307/256300

    Article  Google Scholar 

  • Berenbeim, R. 1992, Corporate Ethics Programs (Conference Board, New York)

    Google Scholar 

  • Bird, F. 1996, The Muted Conscience: Moral Silence and the Practice of Ethics in Business (Quorum Books, Stamford, CT.)

    Google Scholar 

  • Brenner, S.N. (1992). Ethics Programs and Their Dimensions. Journal of Business Ethics, 11, 391–399. doi:10.1007/BF00870551

    Article  Google Scholar 

  • Deal, T.E., & Kennedy, A.A.1982, Corporate Cultures (Addison-Wesley, Reading, MA)

    Google Scholar 

  • Delaney, J. T. and D. Sockell, D. (1992). Do Company Ethics Training Make a Difference? An Empirical Analysis. Journal of Business Ethics, 11, 719–727. doi:10.1007/BF01686353

    Article  Google Scholar 

  • Desio, P.: 2008, An Overview of the Organizational Guidelines (United States Sentencing Guidelines, Washington, DC). http://www.ussc.gov/training/corpover.pdf. Accessed 09 January 2008

  • Ethics Officer Association: 1997, EOA Member Survey 1997 Report (Ethics Officer Association, Waltham)

    Google Scholar 

  • Farrell, B., Cobbin, D., & Farrell, H. (2002). Can Codes of Ethics Really Produce Consistent Behavior? Journal of Managerial Psychology, 17, 468–490. doi:10.1108/02683940210439397

    Article  Google Scholar 

  • Ferrell, O.C., & Fraedrich, J.1994, Business Ethics, second edition (Houghton Mifflin Company, Boston)

    Google Scholar 

  • Goodell, R. 1994, Ethics in American Business: Policies, Programs, and Perceptions. Report of a landmark survey of U.S. employees (Ethics Resource Center, Washington, DC)

    Google Scholar 

  • Greenberg, J. (2002). Who Stole the Money, and When? Individual and Situational Determinants of Employee Theft. Organizational Behavior and Human Decision Processes, 89, 985–1003. doi:10.1016/S0749-5978(02)00039-0

    Article  Google Scholar 

  • Heugens, P.P.M.A.R., Kaptein, M., & Van Oosterhout, J. (2008). Contracts to Communities: A Processual Model of Organizational Virtue. Journal of Management Studies, 45, 100–121

    Google Scholar 

  • Hollwitz, J.C., & Pawlowski, D.R. (1997). The Development of a Structured Ethical Integrity Interview for Pre-employment Screening. Journal of Business Communication, 34, 203–219. doi:10.1177/002194369703400206

    Article  Google Scholar 

  • Jackson, K.T. (1997). Globalizing Corporate Ethics Programs: Perils and Prospects. Journal of Business Ethics, 16, 1227–1235. doi:10.1023/A:1005793916065

    Article  Google Scholar 

  • Joseph, J. (2002). Integrating Business Ethics and Compliance Programs: A Study of Ethics Officers in Leading Organizations. Business and Society Review, 107, 309–347. doi:10.1111/1467-8594.00139

    Article  Google Scholar 

  • Kaptein, M. 1998, Ethics Management: Auditing and Developing the Ethical Content of Organizations (Springer, Dordrecht)

    Google Scholar 

  • Kaptein, M. (2002). Guidelines for the Development of an Ethics Safety Net. Journal of Business Ethics, 41, 217–234. doi:10.1023/A:1021221211283

    Article  Google Scholar 

  • Kaptein, M. (2008a). Developing and Testing a Measure for the Ethical Culture of Organizations: The Corporate Ethical Virtues Model. Journal of Organizational Behavior, 29, 923–947. doi:10.1002/job.520

    Article  Google Scholar 

  • Kaptein, M.: 2008b, ‹Development of a Measure of Unethical Behavior in the Workplace: A Stakeholder Perspective’, Journal of Management 34, 978–1008

  • Kaptein, M., & Avelino, S. (2005). Measuring Corporate Integrity: A Survey-Based Approach. Corporate Governance, 5, 45–54. doi:10.1108/14720700510583467

    Article  Google Scholar 

  • Kaptein, M. and J. Dalen, van. (2000). The Empirical Assessment of Corporate Ethics: A Case Study. Journal of Business Ethics, 24, 95–114. doi:10.1023/A:1006360210646

    Article  Google Scholar 

  • Kaptein, M., & Schwartz, M. (2008). The Effectiveness of Business Codes: A Critical Examination of Existing Studies and the Development of an Integrated Research Model. Journal of Business Ethics, 77, 111–127. doi:10.1007/s10551-006-9305-0

    Article  Google Scholar 

  • Kaptein, M., & Wempe, J.2002, The Balanced Company: A Corporate Integrity Approach (Oxford University Press, Oxford)

    Google Scholar 

  • Knouse, S.B., & Giacalone, R.A. (1996). The Six Components of Successful Ethics Training. Business and Society Review, 98, 10–13

    Google Scholar 

  • KPMG.2008, Business Code of the Global 200: Their prevalence, content and embedding. Amsterdam: KPMG

    Google Scholar 

  • Lease, D. R.: 2006, ‹From Great to Ghastly: How Toxic Organizational Cultures Poison Companies’, Working Paper (Norwich University)

  • LeClair, D.T., & Ferrell, L. (2000). Innovation in experiential business ethics training. Journal of Business Ethics, 28, 223–232. doi:10.1023/A:1006206829583

    Article  Google Scholar 

  • Martens, L.T., & Day, K. (1999). Five Common Mistakes in Designing and Implementing a Business Ethics Program. Business and Society Review, 104, 163–170. doi:10.1111/0045-3609.00046

    Article  Google Scholar 

  • Metzger, M., Dalton, D.R., & Hill, J.W. (1993). The Organization of Ethics and the Ethics of Organizations: The Case for Expanded Organizational Ethics Audits. Business Ethics Quarterly, 3, 27–43. doi:10.2307/3857380

    Article  Google Scholar 

  • Miethe, T.D., & Rothschild, J. (1994). Whistleblowing and the Control of Organizational Misconduct. Sociological Inquiry, 64, 322–347. doi:10.1111/j.1475-682X.1994.tb00395.x

    Article  Google Scholar 

  • Murphy, P. (1995). Corporate Ethics Statements: Current Status and Future Prospects. Journal of Business Ethics, 14, 727–740. doi:10.1007/BF00872326

    Article  Google Scholar 

  • Murphy, P.E. (1988). Implementing Business Ethics. Journal of Business Ethics, 7, 907–915

    Google Scholar 

  • Navran, F. (1997). Twelve Steps to Building a Best-Practices Ethics Program. Workforce, 76, 117–120

    Google Scholar 

  • Nijhof, A., Fisscher, O., & Looise, J.K. (2000). Coercion, Guidance and Mercifulness: The Different Influences of Ethics Programs on Decision-Making. Journal of Business Ethics, 27, 33–42. doi:10.1023/A:1006413308607

    Article  Google Scholar 

  • Nunally, J.C. 1978, Psychometric Theory (McGraw-Hill, New York)

    Google Scholar 

  • Paine, L.S. (1994). Managing for Organizational Integrity. Harvard Business Review, 72(2), 106–117

    Google Scholar 

  • Podsakoff, P.M., MacKenzie, S.B., & Lee, J.Y. (2003). Common Method Variance in Behavioral Research: A Critical Review of the Literature and Recommended Remedies. The Journal of Applied Psychology, 88, 879–903. doi:10.1037/0021-9010.88.5.879

    Article  Google Scholar 

  • Rafalko, R.J. (2003). A Caution about Recent Trends in Ethics Compliance Programs. Business and Society Review, 108, 125–126. doi:10.1111/1467-8594.00004

    Article  Google Scholar 

  • Reynolds, S.J., & Bowie, N.E. (2004). A Kantian Perspective on the Characteristics of Ethics Programs. Business Ethics Quarterly, 14, 275-292

    Google Scholar 

  • Ryan, T.P. 1997, Modern Regression Methods. New York: John Wiley & Sons

    Google Scholar 

  • Schein, E.H. 2004, Organizational Culture and Leadership, third edition (Jossey-Bass, San Francisco)

    Google Scholar 

  • Schwartz, M.S. (2004). Effective Corporate Codes of Ethics: Perceptions of Code Users. Journal of Business Ethics, 55, 323–343. doi:10.1007/s10551-004-2169-2

    Article  Google Scholar 

  • Sims, R.R., & Brinkmann, J. (2003). Enron Ethics (or: Culture Matters More than Codes. Journal of Business Ethics, 45, 243–256. doi:10.1023/A:1024194519384

    Article  Google Scholar 

  • Solomon, R.C. 1992, Ethics and Excellence (Oxford University Press, New York)

    Google Scholar 

  • Solomon, R.C. 1999, A Better Way to Think about Business: How Personal Integrity Leads to Corporate Success (Oxford University Press, New York)

    Google Scholar 

  • Stansbury, J., & Barry, B. (2007). Ethics Programs and the Paradox of Control. Business Ethics Quarterly, 17, 239–261

    Google Scholar 

  • Times: 2002, Persons of the Year: The Whistleblowers, December 22

  • Treviño, L.K. (2005). ‹Out of Touch: The CEO’s Role in Corporate Misbehavior’. Brooklyn Law Review, 70, 1195–1211

    Google Scholar 

  • Treviño, L.K., & Brown, M.E. (2004). Managing to Be Ethical: Debunking Five Business Ethics Myths. Academy of Management Executive, 18(2), 69–81

    Google Scholar 

  • Treviño, L.K., Butterfield, K.D., & McCabe, D.L. (1998). The Ethical Context in Organizations: Influences on Employee Attitudes and Behaviors. Business Ethics Quarterly, 8, 447–476. doi:10.2307/3857431

    Article  Google Scholar 

  • Treviño, L.K., & Weaver, G.R.2003, Managing Ethics in Business Organizations: Social scientific perspectives (Stanford University Press, Stanford)

    Google Scholar 

  • Tyler, T. R., & Blader, S. L. (2005). Can Business Effectively Regulate Employee Conduct? The Antecedents of Rule Following in Work Settings Academy of Management Journal, 1, 1143–1158. doi:10.1023/A:1024089509424

    Article  Google Scholar 

  • Valentine, S., & Fleischman, G. (2004). ‹Ethics Training and Businesspersons’ Perceptions of Organizational Ethics’. Journal of Business Ethics, 52, 381–390. doi:10.1007/s10551-004-5591-6

    Article  Google Scholar 

  • Victor, B., & Cullen, J.B. (1987). A theory and measure of ethical climate in organizations. Research in Corporate Social Performance and Policy, 9, 51–71

    Google Scholar 

  • Victor, B., & Cullen, J.B. (1988). The organizational bases of ethical work climates. Administrative Science Quarterly, 33, 101–125. doi:10.2307/2392857

    Article  Google Scholar 

  • Weaver, G.R. (2001). ‹Ethics Programs in Global Business: Culture’s Role in Managing Ethics’. Journal of Business Ethics, 30, 3–15. doi:10.1023/A:1006475223493

    Article  Google Scholar 

  • Weaver, G.R., & Treviño, L.K. (1999). ‹Compliance and Values Oriented Ethics Programs: Influences on Employees’ Attitudes and Behavior’. Business Ethics Quarterly, 9, 315–335. doi:10.2307/3857477

    Article  Google Scholar 

  • Weaver, G.R., Treviño, L.K., & Cochran, P.L. (1999a). Corporate Ethics programs as Control Systems: Influences of Executive Commitment and Environmental Factors. Academy of Management Journal, 42, 41–57. doi:10.2307/256873

    Article  Google Scholar 

  • Weaver, G.R., Treviño, L.K., & Cochran, P.L. (1999b). Integrated and Decoupled Corporate Social Performance: Management Values, External Pressures, and Corporate Ethics Practices. Academy of Management Journal, 42, 539–552. doi:10.2307/256975

    Article  Google Scholar 

  • Weaver, G.R., Treviño, L.K., & Cochran, P.L. (1999c). Corporate Ethics Practices in the Mid-1990 s. Journal of Business Ethics, 18, 282–294. doi:10.1023/A:1005726901050

    Article  Google Scholar 

  • Wood, G., & Rimmer, M. (2003). Codes of Ethics: What are They Really and What Should They Be? International Journal of Value-Based Management, 16, 181–195. doi:10.1023/A:1024089509424

    Article  Google Scholar 

Download references

Acknowledgments

Many thanks to KPMG, especially in the person of Scott Avelino, for funding and co-organizing the data collection among the U.S. working population as well as to Erasmus Research Institute for Management (ERIM) for providing research time.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Muel Kaptein.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Kaptein, M. Ethics Programs and Ethical Culture: A Next Step in Unraveling Their Multi-Faceted Relationship. J Bus Ethics 89, 261–281 (2009). https://doi.org/10.1007/s10551-008-9998-3

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-008-9998-3

Key words

Navigation