Introduction
Most of the large companies established codes of ethics however failed to reinforce the message it contains. Friedman claims this is a “hypocritical window dressing” and supplementary to the real business activity that takes place.
Due to the differences between the stated values of the organisation and individual values of the employees, managers or executive in the organisation, it is possible that each of them think themselves less worthy than the others in the company.
Bad ethical practice, encouraged by a denial of the existence of ethical values in business, can be detrimental to the efficiency of the economy and the corporation.
Murphy suggests that extensive ethics education programs are required to reinforce and standardise interpretation of the ethical code. Trevino [4] supports this with the proposition that, "Codes of ethics will affect ethical/ unethical behaviour significantly only if they are consistent with the organisational culture and are enforced."
Bartlett, Andrew ; Preston, David
Journal of Business Ethics, 2000, Vol.23(2), pp.199-209 [Peer Reviewed Journal]
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Corporate Ethical Codes: Effective Instruments For Influencing Behavior
Stevens, Betsy
Journal of Business Ethics, 2008, Vol.78(4), pp.601-609 [Peer Reviewed Journal]
He postulated that the mere existence of a code was not influential, but processes and systems that the code symbolized needed to be in place for the codes to be effective. The respondents in all these studies saw the code as external and were not influenced by it
Stevens study indicated that the content in ethical codes was primarily designed to defend organizations against illegal behavior and was found lacking in visionary perspectives and in providing ethical guidance (1996).Snell and Herndon agreed, concluding codes were oriented toward corporate