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The Effectiveness of Ethics Programs: The Role of Scope, Composition, and Sequence

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  • Muel Kaptein

Abstract

Organizations are faced with the question, not only whether to adopt an ethics program, but also which components to adopt when. This study shows that unethical behavior occurs less frequently in organizations that have an ethics program than in organizations that do not have an ethics program. Nine components of ethics programs were identified and examined. The results show that there is a direct relationship between the number of components adopted and the frequency of observed unethical behavior. No relationship was found between pre-employment screening and unethical behavior, while the strongest relationship was discerned between accountability policies and unethical behavior. The study further reveals that the best sequence for adopting components of an ethics program is (1) a code of ethics, (2) ethics training and communication, (3) accountability policies, (4) monitoring and auditing, and (5) investigation and correction policies—all of which are directly related to less unethical behavior—followed by (6) an ethics office(r), (7) ethics report line, and (8) incentive policies—all of which are indirectly related to less unethical behavior. With the exception of pre-employment screening, this sequence corresponds closely to the pattern of adoption of organizations in the U.S. Copyright Springer Science+Business Media Dordrecht 2015

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  • Muel Kaptein, 2015. "The Effectiveness of Ethics Programs: The Role of Scope, Composition, and Sequence," Journal of Business Ethics, Springer, vol. 132(2), pages 415-431, December.
    • Handle: RePEc:kap:jbuset:v:132:y:2015:i:2:p:415-431
    DOI: 10.1007/s10551-014-2296-3
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    4. Anna Remišová & Anna Lašáková & Zuzana Kirchmayer, 2019. "Influence of Formal Ethics Program Components on Managerial Ethical Behavior," Journal of Business Ethics, Springer, vol. 160(1), pages 151-166, November.
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    13. Harris, Donna & Borcan , Oana & Serra, Danila & Telli, Henry & Schettini, Bruno & Dercon, Stefan, 2024. "Proud to Belong: The Impact of Ethics Training on Police Officers in Ghana," CEPR Discussion Papers 19141, C.E.P.R. Discussion Papers.
    14. Ben Khaled, Wafa & Gérard, Benoît & Farjaudon, Anne-Laure, 2022. "Analysis of the political and identity dynamics of a dominant mode of control: The case of business ethics control and its legalization," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 88(C).
    15. Christian Hauser, 2019. "Fighting Against Corruption: Does Anti-corruption Training Make Any Difference?," Journal of Business Ethics, Springer, vol. 159(1), pages 281-299, September.
    16. Vladimir POROCH & Daniela-Tatiana AGHEORGHIESEI, 2018. "A Possible Diagnostic of the State of Health of Ethics Management in the Hospitals in Romania – an Exploratory Study," Postmodern Openings, Editura Lumen, Department of Economics, vol. 9(2), pages 225-253, June.
    17. Michael A. Sartor & Paul W. Beamish, 2020. "Integration-oriented strategies, host market corruption and the likelihood of foreign subsidiary exit from emerging markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 414-431, April.
    18. Anna Remisova & Anna Lasakova, 2018. "On NGOs' Role in the Development of Business Ethics in Slovakia," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 4(4), pages 389-404, October.
    19. Donna Harris & Oana Borcan & Danila Serra & Henry Telli & Bruno Schettini & Stefan Dercon, 2022. "Proud to belong: The impact of ethics training on police officers," CSAE Working Paper Series 2022-05, Centre for the Study of African Economies, University of Oxford.
    20. Maira Babri & Bruce Davidson & Sven Helin, 2021. "An Updated Inquiry into the Study of Corporate Codes of Ethics: 2005–2016," Journal of Business Ethics, Springer, vol. 168(1), pages 71-108, January.
    21. Juliana Toro-Arias & Pablo Ruiz-Palomino & María Pilar Rodríguez-Córdoba, 2022. "Measuring Ethical Organizational Culture: Validation of the Spanish Version of the Shortened Corporate Ethical Virtues Model," Journal of Business Ethics, Springer, vol. 176(3), pages 551-574, March.
    22. Giorgio Gotti & Tony Kang & Michael C. Wolfe & Yong Keun Yoo, 2023. "Corporate codes of ethics and cash holdings: International evidence," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(3), pages 3387-3418, September.

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