THE EFFECT OF ETHICAL SIGNALS ON RECRUITMENT ...

enforcement) of ethical codes of conduct may be one way to accomplish this. However,
codes of ethics will likely only influence the ethical and unethical behaviors of the
employees if they are enforced (Trevino, 1986). These codes may be based on shared
values of the members of the organization or on legal mandates (i.e., Sarbanes-Oxley).
According to Baehr, Jones, & Nerad (1993), a code of ethics generally covers: “1)
conflicts of interest; 2) relationships with customers, competitors, government
authorities and employees; 3) high regard for company assets; and 4) use of good
judgment” (p. 292). A highly ethical environment (characterized by enforced rules and
regulations) has the capability of encouraging the expression of ethical values by
employees and constraining the expression of unethical values. The culture of the
organization can also assist in the moral development of the employees (Trevino, 1986).
Organizations should foster a culture that encourages the learning and implementation of
ethical values and behaviors (Sims, 1991). Finally, organizations that are clear and
consistent with their ethical policies and practices will be most effective (Cullen et al.,
1989).
Ethical culture is more than just having a code of ethics. In fact, most
organizations can boast of such, but they vary widely in the manner in which ethical
codes or policies are implemented by the managers and other important figures in the
organization (Weaver, Trevino, & Cochran, 1999). Some organizations proclaim ethical
policies and procedures for symbolic purposes, but do not actually practice or enforce
them among their employees (Weaver et al., 1999). Some skeptics even go as far as to
say that formal ethics standards and procedures are “little more than a decorative plaque
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