Cultural Values and International Differences in Business Ethics

Abstract

ABSTRACT. We analyze ethical policies of firms in industrialized countries and try to find out whether culture is a factor that plays a significant role in explaining country differences. We look into the firm's human rights policy, its governance of bribery and corruption, and the comprehensiveness, implementation and communication of its codes of ethics. We use a dataset on ethical policies of almost 2,700 firms in 24 countries. We find that there are significant differences among ethical policies of firms headquartered in different countries. When we associate these ethical policies with Hofstede's cultural indicators, we find that individualism and uncertainty avoidance are positively associated with a firm's ethical policies, whereas masculinity and power distance are negatively related to these policies.

Do Auditing and Reporting Standards Affect Firms’ Ethical Behaviours? The Moderating Role of National Culture

“…In fact, ethical values, attitudes and behaviours evolve under the influence of culture (Hunt and Vitell 1992;Scholtens and Dam 2007). Culture, defined as ''the collective programming of the mind'' (Hofstede 2001, p. 9), affects various steps-from awareness to behaviour-in ethical conduct (e.g., Alas 2006;Dubinsky et al 1991).…”

The "Virtuous Circle" Between Corporate Social Performance and Corporate Financial Performance in the European Banking Sector

“…Consequently, the bank's involvement in CSR practices determines the benefits for the bank itself (Polychronidou, Ioannidou, Kipouros, Tsourgiannis, and Simet, 2014), and promotes the adoption of sustainable practices by potential applicants, generating a positive impact on sustainable growth (Dorasamy, 2013). Studies on the relationship between CSR and CFP in the banking sector are limited (Forcadell and Aracil, 2017;Goyal, Rahman, and Kazmi, 2013;Wu and Sheng, 2013;Simpson and Kohers, 2002;Scholtens and Dam, 2007;Chih, Chih, and Chen, 2010;Soana, 2011;Carnevale and Mazzuca, 2014;Mallin, Farag, and Ow-Yong, 2014; Esteban-Sanchez, de la Cuesta-Gonzalez, and Paredes-Gazquez, 2017). Scholtens and Dam (2007) compare the commitment in CSR policies, observing that the banks that adopt the Equator Principles pursue important CSR policies but register lower Return on assets (Roa).…”

“…Studies on the relationship between CSR and CFP in the banking sector are limited (Forcadell and Aracil, 2017;Goyal, Rahman, and Kazmi, 2013;Wu and Sheng, 2013;Simpson and Kohers, 2002;Scholtens and Dam, 2007;Chih, Chih, and Chen, 2010;Soana, 2011;Carnevale and Mazzuca, 2014;Mallin, Farag, and Ow-Yong, 2014; Esteban-Sanchez, de la Cuesta-Gonzalez, and Paredes-Gazquez, 2017). Scholtens and Dam (2007) compare the commitment in CSR policies, observing that the banks that adopt the Equator Principles pursue important CSR policies but register lower Return on assets (Roa). Wu and Shen (2013) test the relationship between the CSP and CFP in the global banking sector, analysing the reasons that drive banks to adopt CSP measures: strategic, altruistic and greenwashing reasons.…”

Attitudes towards Business Ethics Held by Accountancy and Finance Students in the University of Botswana

“…This venture has turned out to be somewhat multi-faceted, complex and embedded in a range of societal, religious, philosophical, economical and institutional factors. For example, Moore & Radloff (1996); Ahmed et al, (2003); Scholtens & Dam (2007) recognize the role that culture plays in determining the behaviour of individuals when engaging in the affairs of corporations. Other studies have explored the effects of various religious and philosophical teachings on work and business ethics (Rokham, 2010;Rice, 1999;Emerson & McKinney, 2010;Lim & Lay, 2003).…”