To read this content please select one of the options below:

Personal moral values of directors and corporate governance

Patricia Grant (Auckland University of Technology School of Business, Auckland, New Zealand)
Peter McGhee (Auckland University of Technology School of Business, Auckland, New Zealand)

Corporate Governance

ISSN: 1472-0701

Article publication date: 6 February 2017

2206

Abstract

Purpose

This paper aims to explore how directors understand the “how” and “why” of their personal moral values in their task of governing the organisation.

Design/methodology/approach

This paper is based on a qualitative study. Data were gathered through semi-structured interviews of 33 New Zealand directors.

Findings

Three major themes emerged: Directors’ personal moral values are a powerful driver in ethical decision-making of directors; codes of ethics are seen to be effective to the extent that individuals have a strong moral compass; great value is placed on their personal moral code as being consistent with it, defines who they are.

Research limitations/implications

This study reveals how and why directors’ personal ethics are important in their task of governance and demonstrates that they are extremely influential in their ethical decision-making.

Practical implications

Appraisal processes could also make sure this factor is given equal importance along with other skills and competencies. In the area of director selection, proven moral integrity could become a point to investigate prior to the appointment of a director.

Originality/value

There have been very few studies investigating the subjective ethical experience in ethical decision-making. Investigating the antecedents of ethical or unethical outcomes only provides a partial understanding of the ethical experience.

Keywords

Citation

Grant, P. and McGhee, P. (2017), "Personal moral values of directors and corporate governance", Corporate Governance, Vol. 17 No. 1, pp. 1-12. https://doi.org/10.1108/CG-03-2016-0046

Publisher

:

Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

Related articles