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Concept;t: Prof S K Chakraborty
Codes of Conduct: 5 Generations
Protect workers, customers,
3rd Gen: (1980s)
Protect company reputation / ensure
fair competition @ home & abroad
12nd Gen: (1970 – mid 1980s)
Protect company & shareholders
1st Gen: (post WWWII –1970s)
Conflict of Interest
Mendes, E.P. & Clark, J.A. The Five Generations of Corporate Codes of Conduct and their Impact on Corporate
Responsibility. Working Paper of the Human Rights Research and Education Center, University of Ottowa. Sept 18, 1996.
Concern over Investments in nations
whose gov’ts don’t respect human
rights or rule of law (Burma, Nigeria)
5th Gen: (late 1990 –2000’s)
Accountability and Social
Protect environment and respect
communities in which business
activities occur. (Bhopal, Valdez)
4th Gen: (1990’s)
suppliers; improve Corp, Reputation,
motivation, customer satisfaction
Employee & 3rd Parties
• Interest in Business Ethics has been
increasing since 1960
• Interest has been spurred by headlines of
• A 1982 study reported that of the Fortune
500 companies, 115 companies (23%) had
been convicted of at least one major crime or
paid penalties for serious misbehavior
• Is the importance of business ethics declining
in business and government practices?
• Greater focus on ethics, morals, and values
Understand/follow the rules,
Have good judgment
Expected to question improper conduct
May have ethical compasses but
Don’t know the rules or standards in business.
May be inexperienced, naïve.
Neither ignorant nor benign.
Don’t care about the rules/ have own agenda.
Lack loyalty; actions can ‘blow up’ & dam