Developing and sustaining an ethical corporate culture: The core elements

It can be argued that of all the issues faced by boards of directors, executives, and managers, unethical corporate activity is one of the most significant in terms of its potential negative impact and one of the most difficult to properly address. The range of illegal and unethical activity taking place is extensive and includes corruption, bribery, receiving and giving gifts and entertainment, kickbacks, extortion, nepotism, favoritism, money laundering, improper use of insider information, use of intermediaries, conflicts of interest, fraud, aggressive accounting, discrimination, sexual harassment, workplace safety, consumer product safety, and environmental pollution (U.S. Sentencing Commission, 2010). Unfortunately, one does not have to look very far to see significant examples of crime and unethical activity within or on behalf of business organizations and the serious negative impacts such scandals have had on investors, employees, customers, competitors, the natural environment, and society (e.g., Enron, WorldCom, Tyco, Parmalat, Siemens, Madoff Investments, BP). This list does not include the more basic legal yet unethical Business Horizons (2013) 56, 39—50