Business Ethics: A European Review
Implementing the ethos of
corporate codes of ethics:
Australia, Canada, and Sweden
Greg Wood,G˛ran Svensson, Jang Singh,Emily
Carasco and Michael Callaghann
Introduction
Along with the rise of globalization has come a
greater acknowledgment of the role that business
ethics should play in the everyday operations of
corporations. In the 20th century, industrialized
economies around the world enacted legislation to
protect free trade, securities dealings, consumers,
suppliers, stockholders and more recently other
stakeholders. These legislative initiatives were
often precipitated by behavior that initially
appeared unethical, but in time was made illegal
(Ferrell et al. 1998, Carasco & Singh 2003). As the
20th century closed and the collapse of major
corporations around the world was once again at
the forefront of business concern, society looked
to corporations to behave in more ethical ways
than they had in the past.
The milieu was becoming more complex as
corporations from the industrialized economies
spread their influence, not only within their own
countries, but to overseas markets as well.
Subsequently, as their powers grew they were
n
Greg Wood is Senior Lecturer, Bowater School of Management and
Marketing, Deakin University, Warrnambool, Australia. Göran
Svensson is Associate Professor and Head of School of Business,
Halmstad University, Sweden. Jang Singh is Professor of Manage-
ment, Odette School of Business, University of Windsor, Canada.
Emily Carasco is Professor of Law, University of Windsor, Canada.
Michael Callaghan is Lecturer in Marketing, Bowater School of
Management and Marketing, Deakin University, Warrnambool,
Australia.
r Blackwell Publishing Ltd. 2004, 9600 Garsington Road, Oxford OX4 2DQ, UK
and 350 Main St, Malden, MA 02148, USA.
confronted by greater expectations from society
to behave in an ethical manner (Cleek & Leonard
1998). Errant companies were lambasted in the
media, charged for corporate crimes, and litiga-
tion was brought against them by citizens who
had fallen victim to their malfeasance. The need
for standards that transcended differences in laws
and cultures was also the driving force behind
various attempts by international organizations to
regulate the conduct of global corporations
(Carasco & Singh 2003). For example, the
Organization for Economic Cooperation and
Development (OECD) proposed the Guidelines
for Multinational Enterprises and the United
Nations constructed its Global Impact document
(Carasco & Singh 2003). Many of these corpora-
tions turned to codes of ethics as a means of
showcasing to society that they had an interest
and a desire in being ethical in the marketplace.
In a model that goes beyond philosophically
based ethics, Stajkovic & Luthans (1997) use
social-cognitive theory as a means to identify
factors that influence business ethics standards
and conduct. They propose that a person’s
perception of ethical standards and subsequent
conduct is influenced by institutional factors (e.g.
ethics legislation), personal factors (e.g. moral
development), and organizational factors (e.g.
code of ethics). Within the cultural context,
the key antecedent factors interact together to
influence the ethical standards of people and
389
 Volume 13 Number 4 October 2004
organizations (Stajkovic & Luthans 1997). Codes
of ethics are an important organizational factor.
Berenbeim (2000) cites three trends as evidence
of the growing importance of corporate codes of
ethics: the globalization of markets and the need
for core principles that are universally applicable;
the acceptance of these codes as part of corporate
governance as illustrated by increased participa-
tion of boards in their development; and the
improved ethical literacy of senior managers as
illustrated by the increasing sophistication of the
codes. While globalization has led to increased
competition that may lead to unethical corporate
conduct, there is also the possibility that globa-
lization has facilitated the spread of corporate
ethics programs. Hence, a code of ethics is viewed
as an important adjunct in developing ethical
standards in organizations.
Based on the Partnership Model of Corporate
Ethics (Wood 2002), this study examined the
measures in place to communicate the ethos of the
corporate codes of ethics to internal stakeholders
in three countries: Australia, Canada, and Swe-
den. It therefore takes a comparative look at the
codification of ethics amongst the top companies
in these countries.
In the current study, therefore, it is important
that socio-economic indicators of the three nations
from which codes were collected (Australia,
Canada, and Sweden) be compared in order to
establish the similarities and/or differences of the
three societies. The paper then examines the
measures put in place by the largest corporations
of the three countries in order to communicate the
ethos of their codes to their employees.
Socio-economic indicators – Australia,
Canada, and Sweden
The economies of all three countries are well
developed. Australia has a prosperous Western-
style capitalist economy, with a per capita gross
domestic product (GDP) on par with the four
dominant West European economies. As an
affluent, high-tech industrial society, Canada
today closely resembles the US in its market-
oriented economic system, pattern of production,
390
and high living standards. Aided by peace and
neutrality for the whole 20th century, Sweden has
achieved an enviable standard of living under a
mixed system of high-tech capitalism and exten-
sive welfare benefits. It has a modern distribution
system, excellent internal and external commu-
nications, and a skilled labor force (CIA 2003).
Canada’s GDP is $923 billion ($ US Purchasing
Power Parity), Australia’s $528 billion and
Sweden’s is $277.4 billion (see Table 1a). In all
three countries, the services sector generates the
majority of the GDP. Although Canada has a
diversified economy, the services sector accounts
for 2/3 of the country’s output (Economist 2003).
The services sector also dominates in Australia. In
Sweden, the services sector generates 60% of the
GDP. The labor force in all three countries is
largely situated in the services sector (Canada
74%; Australia 73%; and Sweden 74%) (Econo-
mist 2003). There is no discernible difference in
the GDP per capita for each country (Australia
$27,000, Canada $29,400, and Sweden $25,400).
In 2002, the inflation rate in all three countries
was below 3% (see Table 1a).
We contend that the similarities today between
the three countries are brought about by a number
of factors. The three economies are well developed
(OECD members). Each country is a smaller player
in its regional marketplace: a smaller economy
surrounded by larger economic entities and popu-
lations. In Sweden’s case, it is the European Union;
in Australia’s case, the Asian region and in
Canada’s situation, it is the USA. Historically,
each country has had to expand its horizons
outside of its home markets in order to survive
and forge economic growth. This has forced a mind
set in the three countries, which is deeply ingrained
in the psyche of each country, that has seen each
one of them recognize that they needed to move
away from a manufacturing base to one of services,
where the intellectual capital of each country’s
citizens could be transported more readily.
While we are not saying that the cultures mirror
each other, one could only but be interested in the
similarities that exist between them. This situation
makes an interesting platform for this research,
when also framed within the context of the ideas
and assertions of Hofstede.
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 Business Ethics: A European Review

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Table 1a: Australia, Canada, and Sweden: Comparative Economic, Population and Health Statistics
Socio-economic Indicator Australia Canada Sweden
Economy
GDP (purchasing power parity US$) $528 billion (2002 est.) $923 billion (2002 est.) $227.4 billion (2002 est.)
GDP real growth rate 3.6% (2002 est.) 3.4% (2002 est.) 1.8% (2002 est.)
GDP/capita (purchasing power parity $27,000 (2002 est.) $29,400 (2002 est.) $25,400 (2002 est.)
– US$)
Inflation rate 2.8% (2002 est.) 2.2% (2002 est.) 2.2% (2002 est.)
Population
Population 19,546,792 (July 2002 31,902,268 (July 2002 8,876,744 (July
est.) est.) 2002 est.)
Population growth rate 0.96% (2002 est.) 0.96% (2002 est.) 0.02% (2002 est.)
Life expectancy 80 years 79.69 years 79.84 years
Literacy 100% 97% 99%
Health
Infant mortality rate 5/1000 4.95/1000 4/1000
Heart disease 110.9/100,000 136.4/100,000 110.1/100,000
Stroke 45.6/100,000 50/100,000 45.2/100,000
Sources: CIA Factbook (2002, 2003), SCB (2002), Australian Bureau of Statistics (2002), Bank of Canada (2003), Heart and Stroke
Foundation Canada (2003), Statistics Canada (2003).
GDP, gross domestic product; est., estimated.
......................................................................................................................................

Australia, Canada, and Sweden were among the
countries studied by Hofstede in developing his
dimensions of national culture. In that seminal
study, he identified the following four dimensions
of national culture: Individualism vs. Collectivism
(IC); Large or Small Power Distance (PD); Strong
or Weak Uncertainty Avoidance (UA); Masculi-
nity vs. Femininity (MF) (Hofstede 1983a: 78).
Hofstede’s research, involving a data bank of 40
countries and 116,000 questionnaires, allowed
him to assign an index value (between 0 and
about 100) on each of the four dimensions. Scores
on these dimensions for Australia, Canada, and
Sweden are shown in Table 1b.
On IC, a measure of the relationship between an
individual and his fellow individuals, Australia is
the strongest country of the three. On PD, a
measure of the unequal distribution of power in
society, Canada and Sweden have scores that are
fairly close in value whereas Australia is again the
strongest on this measure. UA, which is a measure
of how a society deals with uncertainty, is related
to the propensity of a culture to establish laws and
formal rules such as codes of ethics. Societies
strong on UA are more likely to establish formal
rules to deal with unpredictability. On the UA
................................................................
Table 1b: Dimensions of National Culture
Country IC PD UA MF
Australia 90 56 51 61
Canada 80 39 48 52
Sweden 71 31 29 5
Adapted from Hofstede, 1983b: 52. IC, Individualism vs. Collecti-
vism; PD, Large or Small Power Distance; UA, Strong or Weak
Uncertainty Avoidance; MF, Masculinity vs. Femininity.
................................................................
Index, Australia and Canada have almost exact
values, while Sweden is considerably lower: the
implication being that Australian and Canadian
societies are more likely than Swedish society to
establish formal rules to create security. The final
of Hofstede’s dimensions of national culture, MF,
is a measure of the division of roles between the
sexes in society. Scores for Australia and Canada
are close, but significantly higher than Sweden’s.
Sweden was the most feminine of the countries
studied by Hofstede, meaning that it puts ‘‘re-
lationships with people before money, minding the
quality of life and the preservation of the environ-
ment, helping others, in particular the weak, and
‘small is beautiful’’’ (Hofstede 1983a: 85).

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 Volume 13 Number 4 October 2004
One could postulate for this study that based on
the measure of UA, Australia and Canada are
more likely to have more formal rules established
than Sweden. One could also suggest, that as a
result of their more compassionate and caring
side, as indicated by their MF index, that even if
the Swedes have rules established they may be
more sensitive in the ways that they interpret
those rules and/or support their employees to
attain the corporation’s expectations. Hence, one
could suggest that in this study the similarities
between the three groups may be sufficient
enough to make sensible comparisons and that
the differences might lead to some interesting
results to explore.
A point of interest is that each one of these
countries has gone into the international market-
place with gusto and therefore they may well have
had their cultures modified by such an involve-
ment. When Hofstede (1983a, b) carried out his
study, the degree of internationalization by these
countries would have been much less than it was
20 years later when this study was administered.
The interest will be to see if the dimensions for
national culture do still hold true for Australia,
Canada, and Sweden not only in positive terms,
but also in relative terms.
Methodology
A questionnaire that was non-sponsored and
unsolicited was sent to the top companies operat-
ing in the private sector within Australia (Shoe-
bridge 2000), Canada (Financial Post 2001), and
in Sweden (SCB 2002).
The Canadian sample was drawn from the
Summer 2001 edition of the Financial Post that
annually ranks the top 500 companies in Canada.
A cover letter and questionnaire similar to those
used in collecting data in Australia and Sweden
were mailed to the CEO or Chair of 490
corporations (contact information was not avail-
able for 10). The letter and cover page of the
questionnaire briefly described the nature of the
research, guaranteed the confidentiality of the
information provided and requested a copy of the
corporation’s code of ethics. The questionnaire
392
consisted of 31 questions related to ethics
programs. Thirty packages were returned to
sender as undeliverable. The 460 packages deliv-
ered elicited 140 responses, 24 indicating various
reasons for not participating in the study, 16
indicating that they did not have a code and 100
indicating that they have a code (80 sent codes).
The useable response rate was therefore 25.2%.
The Australian survey document was sent to the
public relations managers of the top 500 Aus-
tralian companies (based on revenue) operating in
the private sector (Shoebridge 2000). Companies
were asked to answer the same questions as the
Canadian survey and to supply a copy of their
code of ethics. The 479 packages delivered elicited
173 responses, with 49 companies indicating
various reasons for not participating in the study,
30 indicating that they did not have a code, 81
indicating that they did have a code (65 sent
codes) and another 13 companies who declined to
fill in the questionnaire but who provided their
code. The useable response rate was therefore
25.9%.
The Swedish survey document was sent to the
public relations managers of the top 100 Swedish
companies (based on revenue) operating in the
private sector (SCB 2002): firms that, for several
reasons such as size of turnover, employee
numbers, and business profile, are more probable
to have developed a formal code of ethics
(Brytting 1997). Companies were asked to answer
the same questions and to supply a copy of their
code of ethics. The response rate was 74% with 72
companies returning the completed questionnaire
and 40 companies acknowledging that they had a
code of ethics.
The reason for the difference in the size of the
sample is based on the structural differences in the
marketplaces of each economy. The top 100
private sector companies in Sweden were deemed
to be a satisfactory and representative sample of
Swedish business. The basis of selection was the
size of company turnover. All questions asked
provided nominal data thus limiting statistical
analysis to the reporting contained within this
paper. The Pearson w2 test has been used to test
the associations between country/national belong-
ing and each question.
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 Business Ethics: A European Review

Empirical findings – Australia, Canada, as obviously it is an important issue in all cultures.

and Sweden
This section summarizes the empirical findings of
this cross-cultural study in Australia, Canada,
and Sweden. The figures reported are those of the
companies that specifically answered a question in
either the affirmative or the negative. Note that
the total population (221) that did possess a code
and filled in the questionnaire minus the total
number of responses equals the number of non-
responses in Tables 2–10.
Consequences for a breach
A number of authors (Stoner 1989, Sims 1991,
Fraedrich 1992) suggest that within a code of
ethics one should outline enforcement provisions
for those individuals who do not uphold the code.
By having procedures for a breach of the code, an
organization signals to its employees the necessity
to abide by the code for the sake of both
themselves and the organization.
The frequencies for a breach of the code (as
shown in Table 2a) are high in all three countries
There is a significant association between the
national belonging and the consequences for a
breach in the studied companies. The conse-
quences for a breach are more frequent in Canada
and Australia than in Sweden.
Generally, the consequences of a breach are
much more severe in Australia and Canada than
in Sweden (see Table 2b). In Australia the most
common consequences in rank order (indicated by
the number within parentheses) are cessation of
employment (91.3%), formal reprimand (87.0%),
and verbal warning (84.1%). Legal action (53.6%)
and demotion (31.9%) are also common, but
monetary fine (14.6%) is not frequent.
In Canada, the most common consequences in
rank order are cessation of employment (92.7%),
verbal warning (90.6%), and formal reprimand
(85.4%). Legal action (50.0%) and demotion
(25.0%) are also rather common. Monetary fine
(8.3%) is not frequent. In Sweden, the most
common consequences in rank order are verbal
warning (58.1%) followed by cessation of employ-
ment (35.5%) and formal reprimand (35.5%).
Legal action (32.3%) is also rather common, but

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Table 2a: Consequences for a Breach

Australia % Canada % Sweden % Pearson’s
(n 5 81) (n 5 100) (n 5 40) w2 testn
Yes 69 89.6 96 97.0 31 79.5 Value 10.97
No 8 10.4 3 3.0 8 20.5 df 2
Total (n 5 215) 77 100.0 99 100.0 39 100.0 Significance 0.004
n
1 cell (16.7%) has expected count less than 5. The minimum expected count is 3.45.
......................................................................................................................................

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Table 2b: What are the Consequences for a Breach?

Australia/Yes % of Canada/Yes % of Sweden/Yes % of
(n 5 69) Yes (n 5 96) Yes (n 5 31) Yes
Cessation of employment 63 (1) 91.3 89 (1) 92.7 11 (2) 35.5
Formal reprimand 60 (2) 87.0 82 (3) 85.4 11 (2) 35.5
Verbal warning 58 (3) 84.1 87 (2) 90.6 18 (1) 58.1
Legal action 37 (4) 53.6 48 (4) 50.0 10 (4) 32.3
Demotion 22 (5) 31.9 24 (5) 25.0 1 (6) 3.2
Monetary fine 10 (6) 14.5 8 (6) 8.3 0 (7) 0
Others 7 (7) 10.1 6 (7) 6.2 9 (5) 29.0
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 Volume 13 Number 4 October 2004

demotion (3.2%) is very rare. Monetary fine (0%)
appears not to be a consequence of a breach in
Sweden. It is worth noting that other conse-
quences are frequent in Sweden (29.0%).
In Swedish companies, it appears to be more
important to achieve understanding and dialogue
among employees than to impose negative con-
sequences for a breach. This finding is consistent
with Hofstede’s (1983a) MF dimension of culture
as the Swedish management style seems to be
more one of coaching and mentoring, rather than
controlling and exacting punishment for perceived
transgressions.
Ethical performance appraisal
The view that organizations should formalize the
ethical performance of employees through the
employee appraisal system is supported by
Harrington (1991), Laczniak & Murphy (1991),
and Fraedrich (1992).
Harrington (1991), in common with Fraedrich’s
(1992) idea, suggests that ethical decision making
should become a part of the performance
appraisal of individuals. This idea is a commend-
able one in that it integrates ethics into one’s
perceived organizational performance: it is an-
other way of rewarding ethical behavior and
discouraging unethical behavior. The concern in
this situation is with the way in which this process
would be implemented and its probable vagaries
and abuses. Like all performance appraisals that
are not necessarily based upon quantifiable data,
the subjective opinion of the line manager could
be imposed upon the individual subordinate.
Consequently, the organization is placing a lot
of trust and faith in line supervisors. Therefore,
this process would need to be scrutinized in great
detail before its introduction and would need to
be monitored once it has been introduced.
However, the general principle is one that should
be considered (see Table 3a).
There is a significant association between the
national belonging and the ethical performance
appraisal in the studied companies. The ethical
performance appraisal is more frequent in Aus-
tralia (70.5%) and Canada (63.3%) than in
Sweden (39.4%). Again, cultural dimensions
may well be coming into play here as they are
shown in Table 3b. Swedish managers tend to shy
away from formal rules and regulations to govern
their corporations. They work with the belief that

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Table 3a: Ethical Performance Appraisal

Australia % Canada % Sweden % Pearson’s
(n 5 81) (n 5 100) (n 5 40) w2 testn
Yes 55 70.5 62 63.3 15 39.4 Value 10.61
No 23 29.5 36 36.7 23 60.6 df 2
Total (n 5 214) 78 100.0 98 100.0 38 100.0 Significance 0.005
0 cells have expected count less than 5. The minimum expected count is 14.56.
n

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Table 3b: How is the Ethical Performance Evaluated?

Australia/Yes % of Canada/Yes % of Sweden/Yes % of
(n 5 55) Yes (n 5 62) Yes (n 5 15) Yes
By superiors 49 (1) 89.1 53 (1) 85.5 8 (1) 53.3
Against company standards 27 (2) 49.1 35 (2) 56.5 2 (2) 13.3
By peers 20 (3) 36.4 7 (3) 11.3 1 (3) 6.7
By subordinates 18 (4) 32.7 7 (3) 11.3 0 (4) 0.0
Other evaluation method 3 (5) 5.5 3 (5) 4.8 2 (2) 13.3
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 Business Ethics: A European Review
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Table 4: Conduct Ethical Audits
Australia % Canada
(n 5 81) (n 5 100)
Yes 18 23.7 39
No 58 76.3 57
Total (n 5 212) 76 100.0 96
n
0 cells have expected count less than 5. The minimum expected count is 14.56.
......................................................................................................................................
one should trust one’s employees to perform as
expected and hence they may well see little need to
monitor individuals’ performances. Why should
they do so? Staff will be performing as they should
be.
Generally, the ethical performance evaluation is
commonly done by superiors in Australia (89.1%)
and Canada (85.5%) followed by the fact that it is
done against company standards in these coun-
tries (Australia: 49.1% and Canada: 56.5%). The
ethical performance evaluation in Sweden is done
by superiors (53.3%), that is, to a much lesser
extent than in Australia and Canada. In Sweden,
the evaluation against company standards
(13.3%), by peers (6.7%), and other evaluation
methods (13.3%) are rare. The evaluation by
peers is rather common in Australia (36.4%).
Australian and Canadian companies appear to be
more rule-bound and more hierarchical than their
Swedish counterparts. In all three cultures, one’s
superiors are perceived as the persons who should
be assessing the performance of their staff. The
concern here for all three cultures is that accord-
ing to Baumhart (1961) and Brenner & Molander
(1977), it is one’s superior who is the one most
likely to place the subordinate in an unethical
position which may lead them to compromise
their values.
Conduct ethical audits
Murphy (1988) and Laczniak & Murphy (1991)
have suggested the need to incorporate ethics
audits. They believe that an organization needs to
monitor its ethical performance to ensure that it is
indeed performing ethically both internally and in
the marketplace. Ethical audits differ from em-
ployee appraisal. Employee appraisal is an exam-
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% Sweden % Pearson’s
(n 5 40) w2 testn
40.6 25 62.5 Value 16.93
59.4 15 37.5 df 2
100.0 40 100.0 Significance 0.000
ination of the ethical performance of individuals
within the organization on a personal level, while
ethical audits are an examination of the organiza-
tion’s ethical performance (see Table 4).
There is a significant association between the
national belonging and the conduct of ethical
audits in the studied companies. The conduct of
ethical audits is more frequent in Sweden (62.5%)
than in Australia (40.6%) and Canada (23.7%).
The use of these audits in Sweden may well be to
ensure that all is going as expected in the business
and may well be out of a sense of benevolence to
assist the staff and not monitor them as may well
be the case in other cultures. The Swedish
management style is one of guiding and mentor-
ing rather than catching one out and punishing
them.
Support of whistle blowers
In a situation of recognizing unethical practices
and taking steps to expose them, the dilemma that
many employees face, is in knowing to whom one
can take an issue so as to ensure its integrity; the
integrity of the person against whom the com-
plaint is made and usually, most importantly, for
the person making the complaint, the guarantee
of their own freedom from reprisals (Gellerman
1989, Stoner 1989, Labich 1992, Wood & Call-
aghan 2003).
By its very nature, whistle blowing is a
dangerous path to take for any employee. Even
though companies may have procedures in place
to protect the whistle blower, the act of whistle
blowing has historically been fraught with perso-
nal danger and the ever-present threat of recrimi-
nation (Miceli & Near 1984, Miceli et al. 1991,
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 Volume 13 Number 4 October 2004

Keenan & Krueger 1992, Barnett et al. 1993,
Keenan 1995, McLain & Keenan 1999).
If organizations are to evolve into ethical
entities, individuals must take both individual
and collective action to change the practices that
they see may be an antithesis to the ethical health
of the organization. Someone must make the
move to expose violations of the organization’s
ethical principles. Formal guidelines to support
whistle blowers should be considered, because if
standards are to be set then one needs ways to
ensure that either violations or breaches will be
reported, reviewed, and corrected.
The support of whistle blowers (see Table 5a) is
more frequent in Australia (43.6%) and Canada
(48.0%) than in Sweden (28.2%). However, there
is no significant association between the national
belonging and the support for whistle blowers in
the studied companies. In Sweden, this apparent
lack of support may be more indicative of our
contention that business ethics is a concept that
Swedish companies have been dealing with more
recently than in Australia and Canada. The
concept of whistle blowing may also be alien to
Swedish culture, which from its feminine side sees
no need for this type of action to be formally
codified as individuals would naturally be listened
to when they wish to discuss a matter of urgency
and of importance to them.
If companies do have procedures for whistle
blowing in place, then in all three countries these
companies state a rather strong support for
whistle blowers. Australian companies are extre-
mely supportive in regards to the four common
ways to support whistle blowers. These ways are a
formal complaint channel (91.2%), formal inves-
tigation process (88.2%), guaranteed confidenti-
ality (82.4%), and formal resolution process
(67.6%). Other ways of protection are very
limited (5.9%) (see Table 5b). Likewise, Canadian
companies have common ways of supporting
whistle blowers such as guaranteed confidentiality
(74.5%) and a formal channel of complaint
(72.3%). To some lesser extent these companies
have a formal investigation process (55.3%), and
a formal resolution process (46.8%). Other ways
of protection are very limited (4.3%). The support
given to whistle blowers is slightly weaker in
Swedish companies as compared to Australian
and Canadian companies. For example, the
formal complaint channel (63.6%) and formal
investigation process (63.6%) are the most fre-

......................................................................................................................................

Table 5a: Support of Whistle Blowers

Australia % Canada % Sweden % Pearson’s
(n 5 81) (n 5 100) (n 5 40) w2 testn
Yes 34 43.6 47 48.0 11 28.2 Value 4.48
No 44 56.4 51 52.0 28 71.8 df 2
Total (n 5 215) 78 100.0 98 100.0 39 100.0 Significance 0.107
0 cells have expected count less than 5. The minimum expected count is 16.69.
n

......................................................................................................................................

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Table 5b: How is the Support Provided to Whistle Blowers?

Australia/Yes % of Canada/Yes % of Sweden/Yes % of
(n 5 34) Yes (n 5 47) Yes (n 5 11) Yes
Formal complaint channel 31 (1) 91.2 34 (2) 72.3 7 (1) 63.6
Formal investigation process 30 (2) 88.2 26 (3) 55.3 7 (1) 63.6
Guaranteed confidentiality 28 (3) 82.4 35 (1) 74.5 6 (3) 54.5
Formal resolution process 23 (4) 67.6 22 (4) 46.8 3 (4) 27.3
Other protection 2 (5) 5.9 2 (5) 4.3 1 (5) 9.1
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 Business Ethics: A European Review

quent ones in Sweden followed by guaranteed
confidentiality (54.5%). The formal resolution
process (27.3%) and other ways of protection
(9.1%) are the least frequent.
Ethics ombudsman
This area of inquiry has a relationship with the
issue of whistle blowing. Companies need indivi-
duals who are designated in this position, in order
that individuals within the organization who have
genuine concerns can feel free to voice these
concerns to an independent arbiter. If an organi-
zation has a person designated as a confidante to
whom staff can go with ethical concerns, then
hopefully employees will be encouraged to volun-
teer information about unethical practices that
they perceive are detrimental to the organization.
One could contend that such a position in place
within the organization can only but enhance the
ethical health of that organization.
There is a significant association between the
national belonging and the existence of an ethics
ombudsman or its equivalent in the studied
companies. The ethics ombudsman is more
frequent in Canada (55.1%) than in Australia
(32.9%) and Sweden (33.3%) (see Table 6). The
concept of an ombudsman is more prevalent in
Canada, one may suggest, because such roles have
been a part of North American corporate culture
since the early 1980s, whereas in Australia this
concept of an ombudsman has been more
prevalent in industry regulatory groups than
individual companies. In Sweden, it may well be
as a result of the cultural link with the concept of
whistle blowing, in that it is not perhaps seen as
necessary and as such one does not require an
ombudsman to protect staff, if culturally this is an
accepted moré. Why have protection mechanisms
if one does not need protection?
Guide to strategic planning
Robin & Reidenbach (1987) suggested a method
for closing the gap that they perceived existing
between concept and practice in the area of ethics
and corporate planning. They advocated that an
organization that is committed to ethics should
inculcate those espoused company values into the
strategic planning process. The focus of their
attention was upon strategic marketing planning,
but the principles that they proposed can be
adapted to all forms of strategic planning in all
organizations.
There is a significant association between the
national belonging and the guide to strategic
planning in the studied companies. Using one’s
code as a guide to strategic planning (see Table
7a) is more frequent in Sweden (78.6%) than in
Australia (53.1%) and Canada (44.9%). This
finding is of interest because it would appear that
the companies operating in Sweden may have
inculcated the ethos of their ethics philosophy
more into the heart of their operations than those
in Australia or Canada. A code should be used in
conjunction with a company’s strategic planning,
for each should complement the other in the
marketplace. To have them exist in isolation may
tend to devalue the role of business ethics as the
cornerstone of company action, for it is the
strategic plan that sets the company’s course of
action. The last thing that a company should want
is an incongruity between its espoused strategic
plans and its ethical ethos.
For those companies that acknowledge that
they use their code as a part of the strategic

......................................................................................................................................

Table 6: Ethics Ombudsman or Equivalent

Australia % Canada % Sweden % Pearson’s
(n 5 81) (n 5 100) (n 5 40) w2 testn
Yes 25 32.9 54 55.1 13 33.3 Value 10.50
No 51 67.1 44 44.9 26 66.7 df 2
Total (n 5 214) 76 100.0 98 100.0 39 100.0 Significance 0.005
n
0 cells have expected count less than 5. The minimum expected count is 16.85.
......................................................................................................................................

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 Volume 13 Number 4 October 2004

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Table 7a: Guide to Strategic Planning

Australia % Canada % Sweden % Pearson’s
(n 5 81) (n 5 100) (n 5 40) w2 testn
Yes 34 53.1 35 44.9 22 78.6 Value 9.41
No 30 46.9 43 55.1 6 21.4 df 2
Total (n 5 170) 64 100.0 78 100.0 28 100.0 Significance 0.009
0 cells have expected count less than 5. The minimum expected count is 13.01.
n

......................................................................................................................................

......................................................................................................................................

Table 7b: What are the Guides to Strategic Planning?

Australia/Yes % of Canada/Yes % of Sweden/Yes % of
(n 5 34) Yes (n 5 35) Yes (n 5 22) Yes
Code is consulted in the planning process (a) 11 (1) 32.4 9 (1) 25.7 8 (2) 36.4
Code used as the basis of the planning philosophy (b) 9 (2) 26.5 7 (2) 20.0 9 (1) 40.9
Code is compared with the finished plan (c) 3 (5) 8.8 5 (3) 14.3 3 (3) 13.6
The code is used in (a) (b) and (c) 6 (3) 17.4 5 (3) 14.3 2 (4) 9.1
Code used in other way 5 (4) 14.7 4 (5) 11.4 0 (5) 0.0
......................................................................................................................................

planning process, one could say that generally, the
code of ethics has a low impact on the guide to
strategic planning in Australia, Canada, and
Sweden (see Table 7b). For example, the code is
used as the basis of the planning philosophy
(40.919.1%) and consulted in the planning
process (36.419.1%) in Swedish companies, while
it is less compared with the finished plan
(13.619.1%). The code is not used in other ways
(0%). In Australian companies, the code is
consulted in the planning phase (32.4117.4%)
and used as the basis of the planning philosophy
(26.5117.4%). It is also compared with the
finished plan (17.418.8%) in just over a quarter
of companies. Canadian companies use the code
less than Australian and Swedish companies. For
example, the code is consulted in the planning
process (25.7114.3%) and used as the basis of the
planning philosophy (20.0114.3%). The code is
compared with the finished plan (14.3114.3%)
and used in other ways (11.4%).
If companies accept that it is good corporate
practice to align their codes with their strategic
planning processes, then why don’t they make
that final comparison of the plan against the code?
What if the final plans and the codes are
incompatible? How then does one guard against
this situation and ensure that the plan not
matching the espoused ethical stance of the
organization does not occur? Surely as a part of
good governance, all companies should make an
obligatory check to be sure of consistency in these
areas. ‘A congruence between the strategic plan,
which drives the organization’s actions, and the
espoused ethical views of the company should
also make it easier for employees to act in the
marketplace. The organization’s ethical views
should not clash with the strategic view of the
company’ (Wood & Callaghan 2003: 218).
Ethics committee
If business ethics is such an important part of the
company then an ethics committee may have been
an idea that organizations have contemplated and
an area in which they may have initiated action
(Weber 1981, Center for Business Ethics 1986,
McDonald & Zepp 1989).
There is a significant association between the
national belonging and the existence of an ethics
committee or its equivalent in the studied com-
panies. The ethics committee, as shown in Table 8,

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 Business Ethics: A European Review

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Table 8: Ethics Committee or Equivalent

Australia % Canada % Sweden % Pearson’s
(n 5 81) (n 5 100) (n 5 40) w2 testn
Yes 21 26.6 38 38.6 20 50.0 Value 6.72
No 58 73.4 60 61.2 20 50.0 df 2
Total (n 5 217) 79 100.0 98 100.0 40 100.0 Significance 0.035
n
0 cells have expected count less than 5. The minimum expected count is 14.56.
......................................................................................................................................

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Table 9: Ethics Training Committee or Equivalent

Australia % Canada % Sweden % Pearson’s
(n 5 81) (n 5 100) (n 5 40) w2 testn
Yes 15 19.0 27 27.6 7 17.9 Value 2.44
No 64 81.0 71 72.4 32 82.1 df 2
Total (n 5 216) 79 100.0 98 100.0 39 100.0 Significance 0.296
n
0 cells have expected count less than 5. The minimum expected count is 8.85.
......................................................................................................................................

is more frequent in Sweden (50.0%) than in
Australia (26.6%) and Canada (38.8%). This
situation is of interest as companies in Sweden
have been involved with ethics for less time than
their Australian and Canadian counterparts. Even
though Sweden appears to have come later to a
realization of the need for business ethics, it would
appear that Swedish companies may have em-
braced the concept with more vigor than perhaps
their Australian or Canadian counterparts. If
business ethics is important, then surely compa-
nies should communicate this fact by having
designated ethics committees that are seen by all.
Not to have a committee, signals to the employees
of the organization and other stakeholders that
the company does not see business ethics as an
important enough area to warrant such attention.
Ethics training committee and staff
training in ethics
The two areas of ethics training committee and
staff training in ethics were linked from a
theoretical perspective because of the researchers’
belief that one cannot just expect individuals to be
ethical to the level of company expectations
without having some involvement with training.
An ethics training committee would hopefully
provide the focus and initiative to expose employ-
ees to discussion and training in ethics in business
situations that they might face while in the
company’s employ. Without training and educa-
tion, one could contend, that the desire to
incorporate an ethical perspective into the busi-
ness practices of employees will only be a hope
that cannot be translated into reality. A number
of writers have advocated the use of training
programs as a means of institutionalizing ethics
within the organization (Axline 1990, McDonald
& Zepp 1990, Harrington 1991, Laczniak &
Murphy 1991, Dean 1992, Maclagan 1992, Sims
1992, Wood 2002).
The ethics training committee (see Table 9) is
not frequent in any of the three countries.
Obviously, it appears not to be a concept that
any of the three cultures has really embraced.
Furthermore, there is no significant association
between the national belonging and the existence
of an ethics training committee or its equivalent in
the studied companies.
Staff training in ethics is more frequent in
Sweden (55.0%) than in Australia (44.3%) and
Canada (45.8%) (see Table 10). However, there is
no significant association between the national
belonging and the existence of staff training in

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 Volume 13
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Table 10: Staff Training in Ethics
Australia % Canada
(n 5 81) (n 5 100)
Yes 35 44.3 44
No 44 55.7 52
Total (n 5 215) 79 100.0 96
0 cells have expected count less than 5. The minimum expected count is 18.79.
n
......................................................................................................................................
ethics in the studied companies. Again, this
finding may well be indicative that Swedish
companies have inculcated the ethos of their
codes into their every day business activities and
processes more so than the companies of the other
two cultures.
Conclusion
It would appear from the empirical findings
presented that while Sweden, Canada, and Aus-
tralia are extremely similar in their economic and
social development, there may well be distinct
cultural morés and issues that are informing their
business ethics practices.
Earlier in this paper, it was postulated that based
on the measure of UA, corporations operating in
Australia and Canada are more likely to have more
formal rules established than those corporations
operating in Sweden. Generally (see Table 11), in
the current tri-nation cross-cultural survey Sweden
is ranked 1 or 3 but rarely 2 (i.e. between Australia
and Canada) in any of the areas of regulation and
staff support. In the area of the regulation of staff,
it is quite clear that corporations operating in
Sweden do not appear to have the formal rules in
place, as do those corporations operating in
Australia and Canada. In Table 12, the actual
percentages per item are presented and averaged.
The figures presented support the above assertion
as the percentage averages conform to the need of
Australian (80.1%) and Canadian (78.7%) com-
panies to be more rule bound than their Swedish
(59.5%) counterparts.
Also it was suggested that as a result of their
more compassionate and caring side, as indicated
by their MF index, that even if the Swedes have
400
Number 4 October 2004
% Sweden % Pearson’s
(n 5 40) w2 testn
45.8 22 55.0 Value 1.31
54.2 18 45.0 df 2
100.0 40 100.0 Significance 0.519
rules established they may be more sensitive in the
ways that they interpret these rules and/or
support their employees to attain the corpora-
tion’s expectations. If one examines Table 11 in
terms of areas of staff support, it can be seen that
the ranking order is as one may expect with
Sweden (12), Canada (14) and Australia (18),
mirroring the ranking on the Masculinity/Femi-
ninity dimension as shown in Table 1b.
When one examines the actual percentages of
support for staff per area and the overall average,
Sweden and Canada appear closer than does
Australia to either of them. Australia as com-
pared to Sweden and Canada does seem to lack
support measures in place to assist staff to
understand the ethos of the codes. This finding
would be in concert with a parallel longitudinal
study to this study conducted by Wood &
Callaghan (2003), when they found that in
corporate Australia measures in place to support
the ethos of the code were not only lacking, but
there appeared to be no real improvement in these
issues since 1995.
Sweden ranks the highest in terms of: conduct-
ing ethical audits; using the code as a guide to
strategic planning; and having an ethics commit-
tee and providing staff training. The areas in
which it appears to be behind one or both of the
other two countries are: support of whistle
blowers, having an ethics ombudsman, and an
ethics training committee. The first two of these
areas are linked and it was suggested earlier that
the concept of whistle blowing may also be alien
to Swedish culture, which from its feminine side
sees no need for this type of action to be formally
codified as individuals would naturally be listened
to when they wish to discuss a matter of urgency
and of importance to them. Hence, if whistle
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Table 11: Frequency Rank Order of the Responses

Table Area Australia Canada Sweden
Regulation 1st/2nd/3rd
2a Consequences for a breach 2 1 3
3a Ethical performance appraisal 1 2 3
Sum of Ranks: 3 3 6
Staff support
4 Conduct ethical audits 3 2 1
5a Support of whistleblowers 2 1 3
6 Ethics ombudsman 3 1 2
7a Guide to strategic planning 2 3 1
8 Ethics committee 3 2 1
9 Ethics training committee 2 1 3
10 Staff training 3 2 1
Sum of Ranks: 18 14 12
......................................................................................................................................

......................................................................................................................................

Table 12: Percentage of the Responses

Table Area Australia Canada Sweden
Regulation %
2a Consequences for a breach 89.6 97.0 79.5
3a Ethical performance appraisal 70.5 60.4 39.4
Average: 80.1 78.7 59.5
Staff support
4 Conduct ethical audits 23.7 40.6 62.5
5a Support of whistleblowers 43.6 48.0 28.2
6 Ethics ombudsman 32.9 55.1 33.3
7a Guide to strategic planning 53.1 44.9 78.6
8 Ethics committee 26.6 38.6 50.0
9 Ethics training committee 19.0 27.6 17.9
10 Staff training 44.3 45.8 55.0
Average: 34.7 42.9 46.5
......................................................................................................................................

blowing is not a cultural expectation, then why
have an ombudsman, because that concept would
be culturally superfluous as well. Also, in both
Canada and Australia legislation to protect
whistle blowers is on the legal statutes. The
identification of the role of an ombudsman in
business has been prevalent in Australian and
Canadian business for at least a decade, as these
two countries have recognized that all was not
well within their corporate sectors and moves
were made to protect those people wanting to take
the correct and ethical action, but who were
concerned for their welfare if their identity was
revealed.
Since this survey was completed, it has become
recognized in Sweden that all may not be well in
corporate Sweden, as the executives of one of
Sweden’s largest companies are being investigated
on issues of fraud and misappropriation of
company assets for private use (Wallace 2004).
These revelations will undoubtedly test the cultural
distaste of Swedish business for needing to imple-
ment rules and regulations and for not being able
to trust each other as fully as they may have done
prior to these miscreant actions being made public.
It would appear from this study that while
corporations operating in Sweden have less formal
rules and regulations in place in terms of business

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 Volume 13 Number 4 October 2004
ethics than corporations operating in Canada or
Australia, they do appear to place more emphasis
on ensuring that the support for staff is available.
It seems that corporations operating in corporate
Sweden have embraced the ethos of codes of ethics
more so than their Canadian and/or Australian
counterparts and that in each culture the approach
to business ethics appears to be in line with their
national cultural values as proposed by Hofstede
(1983a).
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