Changing The Ethical Standards Of Organizations

Abstract

The scandals of Enron and WorldCom appear to be contagious and are the impetus for the media’s current focus on ethical issues.  Business has been and continues to confront ethical dilemmas that impact decision-making and financial reporting.  Codes of conduct and a focus on ethical standards continually surface as proposals to change the ethical values of organizations.  Many argue that it is the “tone at the top” that is the driving force behind any serious changes to the ethical culture in organizations.  This study presents the results of a survey of practicing CPAs.  A factor analysis identifies the actions and procedures that are linked with a management culture that emphasizes the importance of integrity and ethical values.  The results provide guidance on the key factors involved in invoking ethical change in organizations.  These results should prove to be of assistance to both educators and employers in the development of feasible programs that maximize the ethical potential of organization members.