Changes in the contents of corporate codes of ethics: an institutional interpretation

Purpose – The purpose of this paper was to examine changes in the contents of Canadian corporate codes of ethics over a period of two decades from an institutionalization perspective. Design/methodology/approach – The paper tracks changes in the contents of the codes of large Canadian corporations longitudinally by analyzing their contents at two points over two decades, in 1992 and 2012. In particular, the paper tests three hypotheses related to the institutionalization of codes. Findings – It was found that the codes have become more prescriptive, they are more concerned with social responsibility and are more likely to identify their moral and legal authority. Overall, the findings support an institutional interpretation of the observed changes. Research limitations/implications – While large corporations are critical in establishing new and innovative management practices, their selection as the study population limits the generalizabilty of the findings. Another limitation of this paper is that it used an a priori determined set of items to analyze the contents of the codes and while this was needed to facilitate the comparison across time, it also meant that some important items were not clearly identified. Originality/value – Codes of ethics are the foundation of ethics programs in corporations and their contents could be critical in the development of a culture of ethics in corporations. This paper makes a valuable contribution to research on business ethics by analyzing the codes of ethics of the largest corporations in Canada at two points over two decades. The need to track changes in corporate codes of ethics over time has been advocated by several researchers, but longitudinal studies in this area are rare.