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    Business Ethics

    Uploaded by

    Pablo Rodríguez
    business ethics pdf

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    © All Rights Reserved
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    awa: business ethics Managing Corporate Citizenship and Sustainability in the Age of Globalization Fourth edition ANDREW CRANE DIRK MATTEN OXFORD ‘UNIVERSITY PRs OXFORD (reat Clarendon Sires, fot, OX2 602, ‘aie Kingtom ‘Oxford Univesity Pesta department ofthe Unies of Oxford tu thers the Univers oletiveaf excelence in esearch, hola, and eda by publhing wotdwide Oxfords etre toe mak ot ‘noe Utvery res inthe UK an in cerain oe costs ‘ Anew Crane sn Dik Maen 2016 ‘The moral ght of he autos have been ase Fist efton 2004 ‘ond fio 2007 “Tid eon 2010, preson: 1 ‘igs served No ptf ths pobleation may be reproduc stored in ‘rere sto tamed tn an fom or by any ean, witout he ax emit nti af dU Pros oe ped yb by Hence ox uns tems pee with he apprepeate eprogas sighs olganstin, Engle concing epeducon cue te scope of the ‘Evel be seta the gs Deparment, Onford Univesity Pe athe are sb ou must ot creat tis wx in any the fom and you mst impose this same conton on ay euler ‘Pub in the Unite States of Amer by Oxf Uaivesiy Press 198 Madion Avene, Ne Yor, NY 1001, Unt States of Ames ‘Bits Lbmry Cataloguing in Pblenon Data _ubeayof Congress Control Number: 2015944382 SBN 978-0-19.969731-1 Pte in Gra Bean by ell & Bain Lid, Glasgow Links to thd pay webstes are provided by Oxford in oo ath nd ftnomatn sO i ny reps te ates ontune nay he pay west Tm tis work a 92923” OUTLINE CONTENTS Ustof figures List boxes How to we this book (Guide the book How to use the Online Resource Cente Acknowledgements Understanding Business Ethics 1 Introducing Business Ethics 2. Framing Business Ethics: Corporate Responsibility, Stakeholders, and Citizenship 3 Evaluating Business Ethics: Normative Ethical Theories 44> Making Decisions in Business Ethics: Descriptive Ethical Theories ‘5. Managing Business Ethics: Tools and Techniques ‘of Business Ethics Management Contextualizing Business Ethics The Corporate Citizen and its Stakehol {6 Shareholders and Busines Ethics 7. Employees and Busines Ethics 8 Consumers and Busines Ethics 9) Suppliers, Competitors, and Business Ethics 10 Civil Socety and Business Ethics 11 Government, Regulation, and Business Ethics 12. Conclusions and Future Perspectives 338 eee 337 Managing Business Ethics TOOLS AND TECHNIQUES OF BUSINESS ETHICS MANAGEMENT EES Having completed this chapter you should be able to: 1 Explain the nature, evolution, and scope of busines ethics management. | Explain why fms increasingly manage thel veal social ole rather than focusing primarly on just managing the ethical behaviour of employees. | iitically examine the role of codes of ethics in managing the ethical behaviour of employees. | Cally examine curent theory and practice regarding the management of cateholderelatonshipe and partnerships. | Explain the ole of social accounting, auditing, and reporting toos in assessing ethical performance. 5 Understand diferent ways of organizing forthe management of business ethics. "+ Busines ethics management + Implementing codes of ethics + Code of eis + Priotzation of stakeholders + Stakeholder management» Stakeholder lationship * Social accounting management + tical leadership + Assesing ethical performance + Designing ethics programmes + Managing ethical cure MANAGING BUSINESS ETHICS Hl Introduction lnisbeing increasingly recognized by managers, policy-makers, and researches that bus: est ethics in the global economy is simpy to important tobe let merely to chance ‘Global corporations such as BF, News Corpration Siemens, Walmart, and others have realized to ther cost the threat that perceived ethical violations can poset this 2a ously guarded reputations. Stcter regulation has also hada sigicant impact For in stance, the 2010 UK Bibery Act made posible the prosecution of companies engaging in bbery anywhere in the world providing they have links tothe UK. In the US the 2010 Dode-Frank Ac among other things, mandated transparency on so-called confi ‘minerals, and the disclosure of payments to host goveraments by resource sector compa. ‘es. In sma vein, eiation in countries suchas Denmark, Fane, Japan, Malaysia, and the UK has required lage firms to report on certain soca and environmental factors, relating to their business, while India ha insted a requirement fr all age ins to contribute 2 of thee profits to CSR natives A a result, there have been numerous attempts, both theoretical and practical, to develop a more systematic and comprehensive approach to managing busines ethics. Indeed, this has given rst to a mult-nilion dollar intemational busines ethics ‘in dustry’ of ethics managers, consultans, auditors, and other experts avallabe to advise nd implement ethics management polices and programmes in corporations aco the ‘be. This is all relatively recent. For instance, in 200, Busines Bis magazine ident fed that corporations were ‘ashing to lee ethics virtually overnight and as they do 58 vst new ity of eansulants and suppuers nas emerged. The ethics industry has ‘been bor’ (Hyatt 200). n general, over the past decades we have sen a sharp tse in ‘management postions in ‘compliance es or more generally ‘corporate responsbilty which often overlap substantially wih busines ethics management opi we wl pick "pat the end of tis chapter when taking about organizing busines ethics management. How then can companies actually manage busines ethics on a day-to-day basis across ‘he various national and cultura contexts tha they may be operating in? sit possible to contol the ethical behaviour of employees so that they make the right ethical decision everytime? And what kinds of management programmes ae necestary to prodace the level of information and impacts that various stakeholders demand? These ae the kinds ‘of questions that we wil deal with in this chapter. However, in this are in pulat ‘there areas yet few definite answers, not least because many ofthe questions themselves have ony fail recent been addressed at any Length, Indeed, much ofthe theory and Practice covered in this chapter ist the very fortron of curren business ethics debates. 3 What is business ethics management? Before we proceed, Its necessary to fist establish what exactly we mean by managing ‘busines ethics. Obviously, managing any area of busines, whether itis production, ‘marketing, accounting, human resources, or any other function, consis whee ‘ange of activities covering formal and informal means of planning, implementation, ‘nd contol. For out purposes though, the most relevant aspects of business ethics ‘management are those that are ceay visible and directed specially at resolving tical problems and sus 1 UNDERSTANDING BUSINESS ETHICS _Uwlclcongonensottinasehesmamgeee + Mion ovals states + Codes ct ties + Regringaie cannes +k ani and manage + ves manages, fies and commits + his constants + the edveaon and ting + Shoe cotton an prtesip + Ring, counting a reporting Figure 5.1 Busines ethics management Business thes management as we shall now show, covers a whole ange of different ‘ements, each of which may be apled individually, or in combination, to addres ethi- cal sues in busines. Components of business ethics management “There are aumerous management activities that could De regarded ss mpecs oF sess cthles management, some of which, such a codes of ethics, are fay well sablished, nile thers, such a socal auditing, ae til in the relatively eary stages of development nd uptake, Without intending to be exhaustive Figure. st out the main campo rents curently in place today atleast within large multinational corporations. These ae tl explained biely below. The mast important ofthese component are described in fale dealin the section Sting standards of ethical behaviour (9,190) onwards, when ‘welookin depth t managing the ethical behaviour of employes, managing stakeholder ‘elation, and managing and assessing ethical performance. Mission or values state ts “Tse ae gene statements of corporate ams, belles and values, Such statements have incressngly include soll, ethic, and environmental goals of one kind or another {Ging et a 2010) For example, the global social media eompany Facebook has th mis- Sslon to give people the power to share and make the word more open and connected nh the Swedish furniture chai IKEA states: "We area valuesrven company with 2 Dasson for lie at home. Every product we crate is our idea for making home 3 better ‘lace Vicually ll lnge and many small and medium-sized organizations now have 3 Insion statement of some Kind, and Its lar they are important in terms of sting ‘ut broad vision foc where the company I ging. However, in terms of busines eth- Ic they often fal 0st out avery specfc socal purpose, and there tle evidence t0 suggest that they have much impact on employee behaviour (Bart 1997), Moreover, even ‘welled, appropiate, and inspzatioal socal mision is unitely to be efetive ‘unless it backed up by substantive eles management throughout the organization. MANAGING BUSINESS ETHICS Codes of ethies Sometimes called codes of conductor simply ets polices, these are expt outlines of tena type of conduct dested and expected of employes from an ethical point of view Tithin a certain organization, pofesion, or industry. As probably the most widespread ap- roach managing snes his, we sal dus codes of ethics in more deal nSeing Sandan of ethical behaviour: designing and implementing codes of ets (pp. 190-19) eporting/advice channels Gathering information on ethical matters is clearly an important input ito elective management. Providing employees with approplate channels fr reporting or rect Ing adc egardng ethical demas can ao be a ital means of Kenting potenti problems and solving them before they exalat andor become public. Many organ ‘rons have therefore introduced ethics hotlines or other forms of reporting channels ‘pecbclly for employes to notify management of ethics abuses or problems ant seek tip and guidance on solutions, UX survey evidence reported that something ik Sof arg fims have insted channels ofthis kind (Webley and LeJeune 2005), although ome counties such as Germany and Fance prohibit cetain features of hotlines due to privacy estctons. According to KPMG’ integrity survey (KPMG 20138, employesare Increasingly using such mechanisms to report suspected misconduct. isk analysis and management ‘Managing and reducing sk has become one of the key components of busines ethics management, oot least because avarenes of potential reputational and financial iss fas been one ofthe key drives of increased attention to Dusnes ethics in recent yeas ‘As Alejo Jose Sison 2000) suggests, the language of sk assessment has enabled business eis to ‘Show its ite’ by spelling out the rks that firms run by ignoring ethics, and ‘measuring these risks in monetary terms, such as the fines, damages, and sanctions that touts can impose. This has been particule prominent inthe US, with the Foreign Corrupt Practices Act and the Sarbanes-Oxley Act providing a legal impetus for greater tention to unethical business paces such as bribery and accounting malpractice. fn Europe and Asia too, such legislation i having a similar effect on the lage numberof non-US multinationals tat are oily sted inthe US or that do business inthe county ‘Managing business ethics by Identlying areas of risk, assessing the lkelitood and scale of risks, and putting in place measures to mitigate or prevent such isk frm harm- ing the business has led to more sophisticated ways of managing business etic, al- though as yet, most companies have not developed an integrated approach to sk and tics Perhaps inevitably, sich rk management techniques tend to focus mor one ly Sdeniable legal sks and more quantable ethical risks, such as those relating to pollution or product laity. However, this i an area of continual development, and 2 eater range of ethical problems suchas human rights violations, corupton, and ‘lmate change impacts are beginning tobe seen on the isk radar of major companies. Ethies managers, aficers, and committees In some organizations, specific naviduals or groups ae appointed to co-ordinate and) cor take responsibly for managing ethics in their organization. Designate ethics of fers (under varios titles) are now fy prevalent, especially inthe US where an Eis ‘nd Compliance Officer Assocation (ECOA), set up in 1992, has grown to around UNDERSTANDING BUSINESS ETHICS 1,300 members, inclading representatives from more than half of the Fortune 100. This growth is atleast partly due tothe increasing emphasis on compliance inthe US with the tightening of regulations that followed the Sarbanes-Oxley legislation. As one com. :mentator pti (Reeves 205): the structure of sentencing policy has driven the appointment of ethics ofcers and fuelled a boom in busines this taining fan executive ends up in the dock for corporate wrongdoing, he or she wil gt shorter time in the nck If they can demonstrate that they have hired an ethics ofcer and roled out courses scoss the fim, mn Europe, Asia, and elsewhere, such positions are es common, but the ECOA now ‘boasts members across five continents and, in ounces such asthe UK and Fance ‘organizations such asthe Institute of Business Ethics and the Cercle Européen des Dontoloqus (European Cirle of Ethis Officers) provide membership sevice to ethics ‘manages A growing number of large corpoatons also now have an ethics commit. tee, ora CSR committee, which oversees many aspects ofthe management of busines ‘ethics. in Indi, fr example, a board level CSR committe sa requirement ofthe 2013, ‘Companies Act for all companies lager than a certain sie. Ethies consultants ‘Business ethics consultants have also become a small but ml established fixture inthe ‘marketplace, anda wide ange of companies have used external consultants eather than internal executives to manage certain areas of busines ths. The ntal growth ia thie sector was driven by envionmental consultants who tended to offer specialist technica ‘Advice, but as the social and ethical agenda facing companies has developed, the con sultancy market has expanded to offer a broader portfolio of services inching research, project management, strategic advice, socal and envizonmental auditing and reporting, Verification, stakeholder dialogue, et. At present, while there ae numerous smal ethies consultancy firms, the matket is dominated by lege profesional service fms such a3 Emst& Young, KPMG, and Deloitte, which offer management, risk, fraud, reporting, and surance services, as wel as leading niche specialists, such as Bureau Veritas, DNV.GL, Good Corporation and SutainAbity, Ethics education and t With grate atention beng placed on business ethics, education and traning thesubjet has also been onthe ise. Provision might be offered ether in-house o extemally though this consultants, universes and cole, o corporate taining spells gai, formal ties taining has tended tobe more common inthe US than elsewhere, wth a recent survey reveling that in 2013 ets traning was belng conducted at 81% of US companies, ‘up from 74% in 201 Ethics Resource Center 2014) In Asa, organizations such as CSR Asia Also provide a wide ange of traning courses o meet rowing demand in the regia, Many academic witers have stesed the ned for moe ethics education among bust ‘ness people, not only in tems of providing them with the tools to solve ethiald- lernmas, but also to provide them with the ality to recognize and talk about ethical problems more accurately and easy (Thome LeChis and ferrell 2000) Diane Kine (1990) thus summaries the goals for ethics taining (2) identifying situations where ethical decsioa-making is involved; () understanding the culate and values of the MANAGING BUSINESS ETiics ganization; and() evaluating the impact ofthe ethical decision on the organization. ‘Some companies have developed innovative approaches to achieving thi (Reuters 2008), an example bel Novartis the Swi ealth- ena nthe shape of digrtd emgoy- es In 2013, the Uk si ear HM ‘sac ca manager ‘ie testing tothe ‘utd world sestiv information bout ‘endances, lacing he mia pig on ‘touted opin. “Tes ermples show that through en Ing teapaen and decentaled online ‘commnkaton, companies ace the ek of able rutin, septicsm, and crim Bt breakneck Spent AS they continue 0 MANAGING ausiNEss ETHICS rape with such cris stuston, socal What i unquestonsle, Rowewes,f he ‘peda sts remain tered with unanswered _ powerful oe that socal medi lay in aug Sleboldecquerions, acts of deleted com- menting vews of ormizations, and most mens, ‘modeated’ spices for dsuson, specially CSRends. As monclogal (one nd polices for online les of engagement. way communion caches ie way ‘This begs the quetion whether soa mesa dalogal(wo-ay) tate, what ema einely fee, cllboraiveandinno- tobe ee the exten which sabeolt fate spces for teal organisation communication aound CSR wll be shape hole engagement and dialogue ty socal mi in the yeast come ‘Bat, ees, an UT 013) Teng iter gone sol esponsty nnn on capo epson fara of us Ec, 18 (731-46. Mose sn Sct Mb) pant acl sporty oem: shel rman, pone tc velvet ges as EG: Eo Re, 1 zak Campel Sou CoC: pomp SR Danae Crap bog bepcy eepouncon ‘hel oes Dy plies comigcsndwaogy Sang Ct npn one confers SE. SAP CS ptm SARSE en ope osurecomeeen as we suggested in Chapter Acoringly, we wll tur to these developments in more eal below in the etn Asesing ethical performance (pp, 206-214), Evolution of business ethics management ‘Before proceeding to discuss some ofthe most common components in more deal, we should stress tat few fan, businesses are likely to have alf ofthese tools and tech igus in place, and many may not have any of them. This wl particulary be the ease ‘vith small and medhum-sized companies, which tend not to inteduce the more formal tlements of ethics management and reporting (Spence 1999) However, in general, the take-up of diferent component doe appear tobe increasing For example, UK and US surveys between 2005 and 201S tended to report escalating adoption of mos, tal, components (Webley 2008; Ethics Resource Center 2014). ‘Aso, since 2000 there appens to have been a change in emphasis concerning the pur pose of busines this management. Whereas previously, business ethics management tended to focus primarily on managing employee Beaviur (through codes, etc), there hasbeen increasing attention to developing and Implementing tools and techniques associated withthe management of broader sca sponsible. These more externally focused components have typlcally involved the consideration of other stakeholder de- ‘mands and considerations, sich a n the development of social accounting tools and techmiques, Few would argue that these Kinds of extemal components have an ethical dimension, yet business ethic ab a management practice has historically hada tendency to focis primarlly onthe internal aspects ofthe business. Nonetheless, efective busines ethics ‘management needs to take account ofboth aspects—the intemal and the extemal di- ‘mensions However, frm have tended tobe slow in integrating thelr ethics and compi- ance functions with the CSR and sustainably areas ofthe business. 16 190 UNDERSTANDING BUSINESS ETHICS In the next thre sections, we shall ake a look atthe thre mai areas where the man- agement of busines ethics might be partcully relevant: + Setting standards of ethical behaviour. Here we shall mally examine the role of ctlcal codes and thei implementation. ‘+ Managing stakeholder relations. Here we shall lool mainly at how to ase stakeholdes, diferent ways of managing them, and the beneSts and problems of doing 0. + Assessing ethical performance. Here we shall consier the role of socal accounting ‘in contributing tothe management and assessment of busines ethics. BW Setting standards of ethical behaviour: designing and implementing codes of ethics Sine the mid-1980s many organizations have made effort to set out specifi standards of appropriate ethical conduct for their employees to follow. At we shall e ater in the chapter, much ofthis standard-setting might wel be done informally o even implicitly, suchas through the example st by leaders. However, mos attention in business ethic {theory and practice has focused on codes of eles, which are voluntary statements by ‘organizations or other bodes that set out spect rules o guidelines thatthe ongaiza- tion ort employees should follow, ‘There are fou main types of ethical code: 5 These are specific to single organics tion. Sometimes ‘codes of conductor codes of busines principe, but basically these codes seek to dently and encourage ethical behaviour atthe level of the individual organzation, + Professional codes fetes Professional groups also often have thee own guidlines for appropriate conduct for their members. While mos traditional professions suchas ‘medicine, law, and accountancy have longstanding codes of conduct i snow also Increasingly common for other profesios such as marketing, purchasing, or eng neering to hae their own codes. + Industry codes of ethics. As wel as specic professions, particu industries also somes times have thelr own codes of ethics. For example in many counts, the nancial ies industry will havea code of conduct for companies and employees operating in the indus. Silay, atthe international eve, the electronics industry hs developed ‘code of conduct ‘to ensure that working conditions inthe electronic industry supply chain are safe that workers are treated with respect and dignity, and that busines ope tions are environmentally responsible and conducted ethically’ The code was developed bya number of companies engaged inthe manufactur of ectronis product, including Del, Hewett Packard, an IBM. It has since been adopted bya range of multinationals, such as Appl, Cisco, HTC Inte, Lenovo, Microsoft Samsung. and Sony + Programme or group codes of ethics. Finally, certain programmes, coalitions, or otet, sub-grouping of organizations also establish codes of ethics for those partcpating MANAGING BUSINESS ETHICS in specific progammes, For example, a collaboration of various business leaders from Europe, the US, and Japan resuted inthe development ofa global code of «this fr busines called the CAUX Roundtable Principles for Busines (itp, auxoundtableon). Sometimes, conforming to a particular programme code ty a prerequisite fr using partcuarabel or mar of aecredtation Fr instance companies ishing to use the Farrade Mark must meet the social, economic and envronnental standards set by the international Furtade system (see Chapter 9 fo more deta, ‘There as been alt of research on codes of ethics, primaily focusing on four main ses + Prevalence of corporate codes ofetics, + Content of codes of ethics. + Btectivenes of coe of ethics, + Possibilities for global eodes of ethics. Prevalence of codes of ethics (nthe frst pont, codes of ethics are increasingly common, with 2 substantial se in thel sage identified during the past decades, particularly in large and medium sed ‘companies. Almost all large US companies have a code, while something like 80% of large European companies and SOW of lage Asian companies do (KPMG and RSM ‘asmus University 200). Evidence of thee prevalence among SMES is fall sean, but the general indication sof much lower gure Spence and Lozano 2000), Content of codes of ethics 'n terms of content, codes of ethics typically address a variety of sues, many of which ‘sppea to reflect industry factors and the pevaling concems ofthe general public As ‘the OECD (2001: 2) epots, ‘environmental management and labour standards dom ‘ate other sues in code tex’, ut consumer protection and bribery and coruption also ‘eeive extensive attention’. Perhaps unsurpeisingly, codes from the apparel industry tend to focus more than others on labour ses, wile codes from the extacive industry ‘end to feature environmental issues more than others. {dealing with these issues, most codes attempt to achieve one or both ofthe following: * Definition of principles o standards that the organization, profesion, of industry believes in or wants to uphold, * Setting ou of practical guidelines or rules for employee behaviour, ether general of in speci situations (such as aceptng wits, how customers ae ete et) Figure 5.2 shows the code of ethics developed by Unilever fr is business oper ons across the globe. As you can se this manly focuses on gene principe, sch + ‘Ualleve believes in vigorous ye far competition, but also includes spec gudelines ‘ortulesfor behaviour in ares such as bribery. Foe instance, the code species that ‘any de- ‘mand for, or oferof, a bribe mus be rejected immediately and reported to managemen’. 191 aw [UNDERSTANDING BUSINESS ETHICS Standard of conduct FRCS our operation wth honey tet nd opens an with respecte human ptr rs fcr eres We al Say repect helenae tert ol hse Bh whom ne ve eesti. ‘being the aw Pri? ngaris nd cur eploytes ae eget comply with he aw nd regulation of the counties nich we peat. Employes Undo commited to Suey in orn entree here tr ra at and spec tnd whee eeryone es ropa ore prlomarce nd repaint ox camry. We ‘roa ply ona promot ployer one de basso he qualia and abies ede ir ‘Jews hepatoma erected ae and ea wating condone al epoyes. [Real nt te any fom faced connor abou: We corn o wang with (Cele to devo a erhnce ech ea’ is and cpa, We pect he dnky ine ad wed the Ag of employes wo freedom of soci. We wil mean oad Genmuratns wth eps ough ear based domain and cenaatn proce, consumers Une commie to prove branded grou nd snices wih ote fe ae letra pce ard quay ard which rae rded se Pods nd erie wll [escrte snd popety tele adesed and communicated. Shorebalders te wl conduct sopra in accordance with temstonaly cepted princes of goed epi gonmuce We wl prove ine, regular ad eal orate on or acts, Soc franc suaten and pelrmance oa sae usin partners Unc commized to esabiting my ene eons ith or supple, cstames umes prin, ut buns eaigs we exec ut bubs pare 0 ache to tie rns content ith ou on, “commun invalvement Copeer soe tobe a tse corporate gen and 2s ning part fst to fl cur pores othe et and communities in wch we ope Pub actives Uever compares encouraged o promote ar deen th egjitmate busines inet. Untere wil expeate wth gore and oer ganas, both recy and trough bus nchs tae sedans nthe deepen cf poporedegtan rd ther reutons eh ay fet fete buses meres. Unleer reer sports pl pate nor “rues the funds ot roupe hoe atts recalled to poate ater ‘Theron Teer emated to mag cine imporeret inte mangenent of et (een pad th nga ull Seve uta bases Unters Siw apm oth ober poms emer, cee detrdg ot “Swromet nnd Sie gcd pact Innovation rae etcmrton eet one eee spect concen oon {Datioce, Ne ion hbase oun nce apyng ec andr pod wl igure 2 Unilever Code of Business Principles See pinecone wih pein © Unde Use PLC Uae Sorel oem athe nie 208. MANAGING BUSINESS ETHICS competion ‘Biter elven vigeou yet competion an suppor the developmen of appropriate ‘Sioetion as Uner compat nd enplyes wl ont the operations in acoeane ‘nthe pind: ofa competion andl apple equations. usiesintegriy Teter doer not gv or rec, wheter recy a inet, bes or other inpoper rsapes fox busines oe Banc an No eployee may af, give or eeive ay alt or isn oe maybe construc being be, Ary demand fo, oF ofr of be Paro rejected imedly and repared t managenen. Unilever acouning records a upporing documents mst acini dei and reflect the nau ofthe undrhing ‘actor No vndcsed or uecored account fund o aset wil be established or aioe. Conf of interests tuners employeesare expected to sol pesona atts nfinancl teres hich cous ‘Sot wh thee poate othe company Ueverenploees ma not sek gin for thems or ter though ss of he posto. omplance—Menitring—Reporting CGhbtance with these prncpes ian exe lement in or busibes succes. The Unever awis espa or enasing thse pnp are apple throughout Unievet. The Group ‘Chie executes responsbl fo pementing these pencils ands speared in is by the Coporate Code Comite comping the Cereal Counsel the Joint Secretar, the (Chit autor, the 5 HR the SVP Communications and te Corporate Code Of, wo ees gure reper to the Univer Excite. On 0-3) resprsilty is depated Elsen managenent othe replacers, fnclons and opeating companies. They erepenbe or tnplomonting thse ils necessary trough move cetaled uence ‘Soret local ness, and ae wuppore nts by Regional Cade Commies comping the Rayna! Gene Counsel togeter wth representatives ftom all evan Rintons and Caterer, Assurance of camplance fe ghen apd monitored each yar Compliance wih the Cove sujet to review by the Bosd supported by the Corporate Responsibly and Reputation Commitee and for Beanland accourting sues the Aut Commitee, Ay (tices of the Cade mast be repre in acordance withthe procedures specie bythe Gener Counsel “he Board f Unilever wl ot cts management for any fs of bins esiltng om erect thse princes and other mandatary pales and inrctons, Te Burd of Unter expec ploy o big tthe ateton,t that of soe managerest ay [echo suspected benno hese pce, Proviso as bean made for emolyesto beable {oept in concen no ampyee wl safer sa consequence of ong. Ins Code the emesis ‘Une and ‘Ue campare’ awed fo canverece ad ean the Unie Grupo conpenie coneing Une, Une PLC andrea ssiiny ‘ngs. The Bad Unies eas he Des Une NY. nd Une PAC. gure $2 Continued Tain THEORY nt om Unilever and te fs ston contexts. Do you carder the ode 1s UNDERSTANDING BUSINESS ETHICS According to Hottman et a. (201: 44), to be effective, codes should address bth of these tasks: ‘rules of conduct without a general values statement lack a framework of ‘meaning and purpose; cedos without rules of conduc ack specific content The quer tion of exactly how codes can actually be crafted to achieve these ends is, however, a ‘cial one, Cassel et al (1997), for example, argue that whe clanty is obviouly portant, the desire for clear prescriptions fr employees in specific situation can cash ‘wth needs for flexibility and applicability to multiple andor nove! situations. As we shall dscuss in more detall shorty, this is patculal pertinent inthe contest of ul, tinationals where employees are ely to be exposed to new dlemmas and dieing ‘cultural epetations (Donaldson 199). Simla, given that many ethical dilemmas are

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