IDEAS home Printed from https://ideas.repec.org/a/eee/bushor/v53y2010i1p31-37.html
   My bibliography  Save this article

The bottom-line benefits of ethics code commitment

Author

Listed:
  • Gilley, K. Matthew
  • Robertson, Christopher J.
  • Mazur, Tim C.

Abstract

Recent corporate scandals highlight that an exclusive focus on financial performance, to the exclusion of broader stakeholder-related performance criteria, can be detrimental to overall firm value creation. Among the ways to enhance leaders' focus on stakeholder value creation is the development and executive championing of an effective code of ethics. Such "Ethics Code Commitment" (ECC)--which incorporates characteristics of the code and behaviors by top management--affects a broad number of organizational stakeholders, yielding value for them, thus increasing their psychological and/or financial commitment to the organization while strengthening the firm's corporate culture. This article develops a model highlighting the various benefits of ECC to key stakeholders and the subsequent effects on an organization's culture and competitiveness. In particular, we focus on the need to include community leaders and key employees in the ethics code development process; the importance of moving away from a purely legalistic document to one that inspires stakeholders; the importance of linking ethics to strategy; and managerial approaches that can enhance the effectiveness of the code of ethics through ethics-related dialog. When developed and implemented correctly, ECC can prove to be an important source of competitive advantage via the effects it has on relationships between the firm and key stakeholders.

Suggested Citation

  • Gilley, K. Matthew & Robertson, Christopher J. & Mazur, Tim C., 2010. "The bottom-line benefits of ethics code commitment," Business Horizons, Elsevier, vol. 53(1), pages 31-37, January.
  • Handle: RePEc:eee:bushor:v:53:y:2010:i:1:p:31-37
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0007-6813(09)00119-0
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Werther, William Jr. & Chandler, David, 2005. "Strategic corporate social responsibility as global brand insurance," Business Horizons, Elsevier, vol. 48(4), pages 317-324.
    2. Falck, Oliver & Heblich, Stephan, 2007. "Corporate social responsibility: Doing well by doing good," Business Horizons, Elsevier, vol. 50(3), pages 247-254.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:bbz:fcpbbr:v:8:y:2011:i:1:p:1-26 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:bushor:v:53:y:2010:i:1:p:31-37. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/bushor .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.