Volume 4, Number 2

This research explores methods to improve code of conduct effectiveness. Misconduct is a common phenomenon in the current business environment, even in the face of increased regulation, and the adoption of codes of conduct by organisations. This impacts negatively on organisations’ reputations, results in financial loss, and has a negative impact on the sustainability of businesses. While researchers suggest that codes of conduct should reduce misconduct and improve the ethical culture of organisations, mixed research results suggest codes of conduct are not always effective. Adopting a grounded theory approach, the researcher investigated nine of South Africa’s largest multinational organisations in order to understand the factors influencing their code of conduct effectiveness better. The research makes a contribution to the understanding of codes of conduct by presenting nine formulae for an effective code of conduct.

Keywords: Code of conduct; code of ethics; business ethics; ethical culture.