MOTIVES FOR CODES OF ETHICS: Case of a Medium-Sized Consulting Company
HUMINA, TUULI (2011)
2011
Yrityksen hallinto - Management and Organisation
Johtamiskorkeakoulu - School of Management
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Hyväksymispäivämäärä
2011-05-04
Julkaisun pysyvä osoite on
https://urn.fi/urn:nbn:fi:uta-1-21325
https://urn.fi/urn:nbn:fi:uta-1-21325
Tiivistelmä
The number of companies with their own codes of ethics has risen dramatically over the past decade and it has even been suggested that especially for larger, multinational corporations having such a code is a necessary tool of corporate social responsibility. Also most of the existing research on codes of ethics deals with large multinational companies.
The ethical codes go by a number of different names, and their purposes and content are also various and versatile. The names and types are, however, not well-established but instead often overlapping. This makes discussing the topic challenging in both business and academic environments.
The purpose of this study is to understand the phenomenon of code creation and adoption through examining the motives behind such development. This is achieved by examining the existing literature on the topic of codes of ethics and then conducting empirical research on a case company in the process of creating and adopting a code of ethics. The empirical research was conducted through 17 interviews of company members. The interview data was analyzed by utilizing theory driven content analysis technique.
The results suggests that the different reasons for companies to engage in the process of creating and adopting a code of ethics can be divided into four rough and overlapping categories; complying with society?s expectations, creating competitive advantage, risk management and improving organizational culture. The empirical part of the research was consistent with the picture obtained from the literature review, but emphasized some of the factors, such as the importance of positive reputation and competitive advantage more. This is possible due to the size of the company as well as its field of operations.
As for the case company, the research indicated partly incomplete implementation of the code. This manifested itself through some inconsistencies in how the company members experienced the content and affectivity of the code. Further developing the code in order of making it more practical and embedding it into everyday operations of the company is recommended.
Key words: Codes of Ethics, Business Ethics, SMEs, Consulting
The ethical codes go by a number of different names, and their purposes and content are also various and versatile. The names and types are, however, not well-established but instead often overlapping. This makes discussing the topic challenging in both business and academic environments.
The purpose of this study is to understand the phenomenon of code creation and adoption through examining the motives behind such development. This is achieved by examining the existing literature on the topic of codes of ethics and then conducting empirical research on a case company in the process of creating and adopting a code of ethics. The empirical research was conducted through 17 interviews of company members. The interview data was analyzed by utilizing theory driven content analysis technique.
The results suggests that the different reasons for companies to engage in the process of creating and adopting a code of ethics can be divided into four rough and overlapping categories; complying with society?s expectations, creating competitive advantage, risk management and improving organizational culture. The empirical part of the research was consistent with the picture obtained from the literature review, but emphasized some of the factors, such as the importance of positive reputation and competitive advantage more. This is possible due to the size of the company as well as its field of operations.
As for the case company, the research indicated partly incomplete implementation of the code. This manifested itself through some inconsistencies in how the company members experienced the content and affectivity of the code. Further developing the code in order of making it more practical and embedding it into everyday operations of the company is recommended.
Key words: Codes of Ethics, Business Ethics, SMEs, Consulting