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Corporate Code of Ethics
Corporate Code of Ethics
Jerry G. Kreuze
Two key forces -- the culture and the competitive intensity of the
market -- have great impact on ethical behavior. Although these
dynamic components must ultimately be considered jointly, each must
also be understood separately.
Yet, societies can vary along several cultural dimensions; and ethical
behavior is not absolute in all nations. If issues are not clearly
immoral, such as murder, then cultural relativism argues that no one
culture's ethical standards are any more or less moral than those of
other cultures. Culture-based codes of ethics must consider each
country's views with regard to moral absolutism. Internal auditors
must not only be aware of these differences; they should also be
cognizant that in some countries a universally imposed code of ethics
could be in opposition to deeply held beliefs.
Perfect markets require firms to act smartly, but they do not induce
them to act ethically. In fact, perfect markets frequently are imperfect
in their enforcement of business morality. Moreover, anonymity
inherent in these markets further fosters unethical behavior.
SECTOR A:
ETHICALLY HOSTILE ENVIRONMENTS
[Table omitted]