The Influence of the Board of Directors on Implementing an Ethics Code
Isabel M. García Sánchez
Luís Rodríguez Domínguez
Isabel Gallego Álvarez
Business ethics as a component of the corporate social responsibility, should be promoted from the Board of Directors. In this sense, the drawing up of a code of ethics would imply the formal statement of corporate principles which affect the responsibility with employees, shareholders, customers, the environment and every aspect of the society. Previous empirical evidence has emphasized the contradictory effect between the ownership of shares by directors and its effect on the shareholders’ economic interests, and a low concern with ethics issues by independent directors. In this line, this paper aims at establishing the effect of these two features of the Board of Directors on the incorporation of a ethical code for non-financial quoted Spanish companies. The finding show that the Board ownership leads to a entrenchment in the top management, by generating a divergence between owners’ and managers’ ethical interests. Faced with this situation, the presence of independent directors becomes necessary to reduce such conflicts.
Codes of ethics, business ethics, corporate social responsibility, corporate governance, board of directors.
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.