Curves in the high road: A historical analysis of the development of American business codes of ethics

Abstract

Purpose

The purpose of this paper is to trace a history of American codes of business ethics as they evolved from religious bases to legalistic bases to an international emphasis.

Design/methodology/approach

The paper describes the evolution of business codes of ethics over the twentieth century in relation to the development of social issues.

Findings

It is found that ethical codes are influenced by the prevailing ideology of the time regarding the social responsibility of business. The earlier part of the twentieth century emphasized religious values governing the treatment of customers and competitors and the responsibility of businesses for the well‐being of their employees by directing their private as well as business conduct. The latter part of the twentieth century stressed legal compliance as government regulation sought to control business behaviors that were harmful to society and to the environment. Entering into the twenty‐first century, we are seeing an increase in international emphases in codes of ethics. We discuss these trends in terms of evolving approaches to corporate social responsibility.

Practical implications

Organizations writing (and rewriting) codes of ethics should move beyond reactive legal compliance and proactively examine values associated with their stakeholder relationships as well as relationships to corporate social responsibility issues.

Originality/value

While there have been histories of medical and legal codes of ethics, to the authors' knowledge, this is the first exploration of a history of American business codes of ethics. The paper examines the development of codes of ethics in the context of business needs and social values prominent during those times.

Citation

Knouse, S.B., Hill, V.D. and Hamilton, J.B. (2007), "Curves in the high road: A historical analysis of the development of American business codes of ethics", Journal of Management History, Vol. 13 No. 1, pp. 94-107. https://doi.org/10.1108/17511340710715197