How Have Corporate Codes of Ethics Responded to an Era of Increased Scrutiny?

Loughran, Tim; McDonald, Bill; Otteson, James R.

doi:10.1007/s10551-022-05104-2

Cited by 16 publications

(6 citation statements)

References 30 publications

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“…This paper has approached this issue from the responsible business approach and the role of ethical codes. More recent studies, such as Loughran et al (2022), continue to highlight the variety of motivations that can lie behind developing a code of ethics. This work is based on a purposive group of companies that would correspond to the group that Bodolica and Spraggon (2015) identified as “promoters”, i.e.…”

Section: Discussionmentioning

confidence: 99%

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Fostering a culture of business ethics: a roadmap for responsible management through codes of ethics based on the experience of Spanish companies

Ríos-Berjillos

Millán-Lara

Rio

et al. 2023

SRJ

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Purpose This paper aims to analyse the role of the code of ethics as a critical element of responsible management and posits it as a tool that integrates ethics, sustainability and attention to stakeholders. This proposed tool can be a facilitator of integrated management of these dimensions. Design/methodology/approach A survey was developed to answer the research questions, and descriptive and factor analyses were carried out. A non-probabilistic sampling technique, purposive sampling, was used. The survey, sent by e-mail, was addressed to managers and decision makers of Spanish companies belonging to associations explicitly committed to corporate social responsibility and ethics; 73 questionnaires were answered. Statistical analyses were performed with SPSS 26.0 software. Findings The findings highlight that companies that are showing leadership in ethical management are using their codes of ethics as a key instrument in the business ethics strategy. Codes of ethics go beyond being a guide to ethical conduct to being an instrument at the service of stakeholder relations, sustainability and ethics. The keys that these companies agree on are the design of participative processes of responsible management, the multidimensional content of their codes of ethics and a code management oriented to generate a proactive ethical culture in the company. Practical implications This paper proposes a series of recommendations that may be useful to all those companies that wish to promote effective and integrative ethical management through their code of ethics, as much as if they already have one, as they are developing it. Originality/value This research highlights the role of code of ethics as an integrative tool for ethics, sustainability and stakeholder responsibility. For that, the keys that these companies agree on are the design of participative processes of responsible management, the multidimensional content of their codes of ethics and code management oriented to generate a proactive ethical culture in the company.

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Section: Discussionmentioning

confidence: 99%

“…There is renewed interest in the structural composition of codes of ethics to close this gap between business policy and ethical practice in organisations and help company leaders establish and promote an ethical culture (Loughran et al , 2022).…”

Section: Introductionmentioning

confidence: 99%

Fostering a culture of business ethics: a roadmap for responsible management through codes of ethics based on the experience of Spanish companies

Ríos-Berjillos

Millán-Lara

Rio

et al. 2023

SRJ

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“…MSIs can be defined as ‘initiatives governing social and/or environmental standards of production that have participants from both business and societal interest groups as members and governance structures allowing for an equal possibility of input among the different partners in steering the initiative’ (Fransen, 2012, p. 166). This parity not only sets the MSI apart from other forms of private regulation, such as firm‐specific codes of conduct (Loughran et al, 2023), but it also differs from rules set by governments and intergovernmental organizations (Dentchev et al, 2017), like the OECD. In particular, MSIs seem to hold the potential for interactive learning between societal groups with distinct identities and interests (de Bakker et al, 2019) as well as for effective consensus‐building between them, thus being able to offer solutions that are likely to be accepted and implemented by all the parties involved (Sebhatu & Enquist, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

How do stakeholder groups make sense of sustainability: Analysing differences in the complexity of their cognitive frames

Preuss,

Fischer,

Arora

2023

Bus Strat Env

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Characterizing major sustainability issues as ‘grand challenges’ has led to a call for collaboration among heterogeneous stakeholder groups, not least in multi‐stakeholder initiatives (MSIs). Research into MSIs has made substantial progress in understanding their workings; yet, it is still criticized for remaining undertheorized, echoing a criticism of management studies generally as paying insufficient attention to the micro–macro divide. Hence, we examined differences between stakeholder groups in the complexity of their cognitive frames on the topic of sustainability. We analysed 265 cognitive frames across four stakeholder groups (business, government, NGO, education). Analysing these frames in terms of the two dimensions of cognitive complexity—differentiation and integration—we found statistically significant differences in frame complexity between stakeholder groups. These micro‐level cognitive differences can explain macro‐level problems in stakeholder engagement and communication. Hence, we conclude by discussing the implications of our findings for the enhancement of the effectiveness of MSIs.

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“…In firms that prioritize sustainability performance, CG is more likely to have a direct responsibility for sustainability issues. For instance, managers' reporting on sustainability practices has grown dramatically as a result of stakeholder demand for the disclosure of corporate operations (Loughran et al, 2023).…”

Section: Sustainability Performance Of Firms and Governancementioning

confidence: 99%

Does Financial Performance in Firms Benefit from Sustainability Performance? The Mediating Effect of Governance on Firm Performance of Listed Firms in Canada

Bajwa,

Wood,

Rus

2023

JMS

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Relying on dynamic agency and stakeholder perspectives as theoretical underpinnings, this paper analyzes the mediating effect of board governance and operational governance in the relationship between sustainability and financial performance of firms. Using a sample of 224 large and actively traded Canadian firms listed on the Toronto Stock Exchange, the authors use the partial least squares-structural equation modeling (PLS-SEM) approach to analyze the data. The results show that there is a good fit between the data for both the measurement and structural equation models, and they further reveal partial mediation effects of board governance and operational governance singly and jointly as full mediation in the relationship between sustainability and financial performance of firms. The results are robust to controlling for various factors that affect firms’ sustainability and financial performance, such as firm type, firm age, and other industry-specific characteristics. This study provides valuable insights for corporate governance and sustainability scholars and practitioners that may allow them to link governance structures with sustainability for better financial performance outcomes, as well as to include an integrated sustainability focus into their competitive strategies.

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How Have Corporate Codes of Ethics Responded to an Era of Increased Scrutiny?

Cited by 16 publications

References 30 publications

Fostering a culture of business ethics: a roadmap for responsible management through codes of ethics based on the experience of Spanish companies

Fostering a culture of business ethics: a roadmap for responsible management through codes of ethics based on the experience of Spanish companies

How do stakeholder groups make sense of sustainability: Analysing differences in the complexity of their cognitive frames

Does Financial Performance in Firms Benefit from Sustainability Performance? The Mediating Effect of Governance on Firm Performance of Listed Firms in Canada

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