Theoretical Examination of Workplace Environment Driven and Self-Obligation Driven Business Ethics Practices

Abstract

The objective of this paper is to provide a theoretical examination of Workplace Environment Driven (WED) and Self-Obligation Driven (SOD) business ethics practices that have been presented in our previous research. This study utilizes control theory in order to clarify characteristics of WED and SOD. Detailed comparative analysis reveals a fundamental difference in the models wherein WED drives organizational process controls while SOD supports output controls. Building on these analyses, our results suggest that the WED business ethics practices are stable in practice, yet outcomes may yield high implementation costs and be vulnerable to environmental change. Furthermore, WED resolutely touts corporate scandal prevention as a positive reason for adoption. Adversely, the difficulties concerned with measuring the performance of business ethics activities are understood and must be considered when adopting the WED model.