DEFINITION OF CODES OF ETHICS

Academic literature on codes of ethics focuses particularly around organisational / corporate codes of ethics (Pajo & McGhee, 2003). Various attempts have been made to define a code of ethics (Berenbeim, 1988; Hosmer, 1991; Stevens, 1994). However,

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there is a lack of clarity around what exactly a code of ethics consists of, and there is confusion between a code of ethics and other ethics documents that comprise ethical guidelines (Pearce & David, 1987; Schwartz, 1999; Stevens, 1994). Codes of ethics may be variously described as codes of conduct, codes of practice, ethical codes, corporate ethical codes, ethical guidelines, business conduct, codes of professional behaviour, operating principles and so on (Fisher, 2001; Marnburg, 2000; Schlegelmilch & Houston, cited in Schwartz, 1998).

Schwartz (1999) suggests that it is very difficult to isolate a code of ethics from other various documents that present ethical guidelines and principles such as a code of conduct or a code of practice. He presents a thorough analysis of various ethics documents and identifies that „…a code of ethics could also be a code of conduct, code

of practice, corporate credo, or even a values statement‟ (p.20).

Several definitions of a code of ethics have been provided in the literature, such as the following:

The Encyclopedia of Applied Ethics (1997) defines codes of ethics as „those

bundles of intentional or behavioural requirements that members of a profession or other group must comply with in order to remain part of the group‟ (p.528).

Melrose-Woodman and Kverndal (1976; cited in Schlegelmilch and Houston, 1989) define a code of ethics as „…a statement setting down corporate

principles, ethics, rules or conduct, codes of practice or company philosophy concerning responsibility to employees, shareholders, consumers the environment or any other aspects of society external to the company‟ (p. 11).

Berenbeim (1988, p. 91, cited in Schwartz, 1998) defines a code of ethics as

„…a major vehicle for stating ethical principles.‟ (p. 91).

A written code of ethics is defined by Hosmer (1991, p. 185) as „…a statement

of the norms and beliefs of an organisation … is an attempt to set the moral standards of the firm.‟

Stevens (1994, p. 64) states that codes of ethics are „...written documents or

statements ranging from five to fifty pages … which are intended to impact employee behaviour … [within codes] companies attempt to manage and articulate ethics through these messages which are designed for both internal and external audiences … [they] are managerial tools for shaping change. They

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often demand from employees higher standards of behaviour than required by law.‟

Schwartz (2002, p. 28): „A corporate code of ethics is a written, distinct, formal

document which consists of moral standards used to guide employee or corporate behaviour.‟

Kaptein and Schwartz (2008, p. 112) use the concept „business code‟ to include all the different types of codes at the corporate level and to imply that the code is developed by and for a specific company. A „business code‟ is defined as: „…a

distinct and formal document containing a set of prescriptions developed by and for a company to guide present and future behaviour on multiple issues of at least its managers and employees toward one another, the company, external stakeholders and/or society in general.‟

All the above definitions seem to address the need to define an organisational / corporate code of ethics, or as Kaptein and Schwartz (2008) identify it, a „business code‟.

However, in the literature, a distinction is made between corporate codes of ethics and professional codes (Kaptein & Schwartz, 2008; Schwartz, 1999; Stevens, 1994), such as codes of ethics developed by professional institutions and associations (e.g. Market Research Society New Zealand – MRSNZ, European Society for Opinion and Marketing Research – ESOMAR, American Marketing Association – AMA). As suggested by Tucker, Stathakopolous and Patti (1999), only a limited number of studies focus on codes of ethics of professional associations.

Stevens (1994, p. 64) describes professional codes as „…codes that communicate

the goals and beliefs for groups and professionals by which individual practitioners can be guided.‟

However, as Stevens (1994) states, the terms are often used interchangeably by corporations and in academic literature. This interchangeability is also reflected in the definition of a code of ethics provided by Grundstein-Amado (2001) and Frankel (1989):

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Grundstein-Amado (2001, p. 462) defines a code of ethics as a „statement of

principles that describes desirable professional conduct and guides individuals in resolving ethical problems‟.

Similarly, Frankel (1989, p. 109) describes a code of ethics „as both a

foundation and guide for professional conduct in the face of morally ambiguous situations‟.

The above definitions of corporate code of ethics and / or professional codes of ethics share similar characteristics, such as:

1) A code of ethics is a written and formal document;

2) It consists of ethical guidelines and principles to be followed by employees / practitioners; and

3) It is designed to guide employees‟ / practitioners‟ / organisations‟ behaviour or conduct.

Despite the fact that organisations and professional associations have different goals and objectives, the developed codes of ethics serve a similar purpose, that of creating and generating ethical behaviour (Oliver, Kearins & McGhee, 2005). Furthermore, as noted earlier, codes of ethics are known by different names, such as codes of professional behaviour, codes of conduct and operating principles (Schlegelmilch & Houston, 1989).

Following on from Steven‟s (1994) proposition that distinctions between organisational codes of ethics and professional codes „often become blurred and sometimes overlap‟ (p. 64), in this thesis, as per definitions above, the term „codes of ethics‟ is used when discussing organisational codes of ethics and / or professional codes of practice / conduct.

For the purpose of this study, a code of ethics is defined as:

‘A written document that incorporates ethical guidelines and principles, and is designed to guide employee / practitioner behaviour’.

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