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CEO qualities and codes of ethics

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  • Isabel-María García-Sánchez
  • Luis Rodríguez-Domínguez
  • Isabel Gallego-Álvarez

Abstract

Ethical issues have received growing attention recently, after corporate scandals and during the current economic crisis. Several initiatives have been adopted to restore confidence and trust in businesses, such as ethics codes. In addition, as a result of those scandals and financial frauds, several rules have focused on the role played by Boards of Directors in the planning and monitoring of codes of ethics. However, the empirical evidence is still scarce and needs some degree of extension. The purpose of this study is to determine the influence of several corporate governance features—particularly, the Chief Executive Officer (CEO)—on the decision of developing an ethics code, among Spanish companies. Our main findings point out the lack of influence of the CEO’s characteristics (except for CEO reputation) on the likelihood of having a corporate code, indicating that this decision has to do with a choice made by the company overall, perhaps because of regulatory reasons or stakeholders’ expectations. Also, we have checked how other variables, such as the extent of a firm’s participation in defence or other government contracts or multiple listings of the company in different financial markets, can influence the decision of developing an ethics code. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Isabel-María García-Sánchez & Luis Rodríguez-Domínguez & Isabel Gallego-Álvarez, 2013. "CEO qualities and codes of ethics," European Journal of Law and Economics, Springer, vol. 35(2), pages 295-312, April.
    • Handle: RePEc:kap:ejlwec:v:35:y:2013:i:2:p:295-312
    DOI: 10.1007/s10657-011-9248-5
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    References listed on IDEAS

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    Cited by:

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    2. Bieszk-Stolorz Beata & Markowicz Iwona, 2014. "Economical Activity Of The Polish Population," Folia Oeconomica Stetinensia, Sciendo, vol. 14(2), pages 198-210, December.
    3. 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.

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    More about this item

    Keywords

    Boards of directors; CEO characteristics; Codes of ethics; Corporate governance; Chief Executive Officer (CEO); M14; M48;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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