Abstract
The aim of this Web-based survey of 15 German companies with an international profile was to identify which higher-level values serve as a basis for a company culture that promotes integrity and can thereby also be used to promote crime prevention. Results on about 2000 managers in German parent companies and almost 600 managers in Central and North European branch offices show that a major preventive role can be assigned to a company culture that promotes integrity. This requires a ‘tone from the top’, ‘ethical leadership’ from the direct superior, and a general set of values that can be encouraged through training courses. Moreover, employees have to perceive these values as promoting their careers. The survey reveals that the companies in this study have basically succeeded in establishing their system of values in their Central and North European as well as their Asian branch offices. Moreover, it shows that the main values preventing crime on the management level are trustworthiness and consistency. Open communication is an important value on all levels of a company, and this is supplemented by transparency, compliance with the rules, and a rejection of behaving in one’s own interest. It is concluded that in spite of regional differences, major international companies can possibly make an important contribution to bringing about cultural change in regions with an affinity for corruption by implementing a culture that promotes integrity in both their company and their daily business.
Similar content being viewed by others
Notes
Respondents were given case reports documenting illegally making gifts or accepting exclusive invitations in a competitive business situation.
The value “egoism” was paraphrased in the questionnaire as exploiting one’s authority and acting in one’s own interests, see Table 3.
The study was funded by the German Research Foundation (DFG) and ended 3/2016.
To ensure anonymity and data protection, the survey was actually carried out by an external company.
A total of 4302 managers were surveyed in this study.
Data were collected between the third quarter of 2012 and the third quarter of 2014. The response rate in the individual companies ranged from 30 to 35%.
The quality of training was derived from the evaluation of schooling measures by the managers in the survey as well as the frequency and variety of perceived schooling and training provisions (e.g. workshops, face-to-face sessions, online trainings).
Such a high correlation always raises a suspicion of multicollinearity. Nonetheless, a test of collinearity revealed thoroughly acceptable tolerance values of above .50. Therefore, a bias due to collinearity can be ruled out here.
Respondents were given items on corruption-specific attitudes assessing their opinions on the possible advantages and disadvantages that could arise from corruption situations both for the company and for society.
Group comparisons of the appraisal of corruptive behaviour in Germany versus Asia χ² = 17.914***, p = .000 and in North and Central Europe versus Asia χ² = 14.791***, p = .001 (Asia without branch offices in China).
References
Akers, R. L. (2013). Criminological theories: Introduction and evaluation. London: Routledge.
Berry, B. (2004). Organizational culture: A framework and strategies for facilitating employee whistleblowing. Employee Responsibilities and Rights Journal, 16(1), 1–11.
Bhal, K. T., & Dhadich, A. (2011). Impact of ethical leadership and leader–member exchange on whistle blowing: The moderating impact of the moral intensity of the issue. Journal of Business Ethics, 103(3), 485–496.
Björnskov, C., & Paldam, M. (2004). Corruption trends. In J. Graf Lambsdorff, M. Taube, & M. Schramm (Eds.), The new institutional economics of corruption (pp. 59–75). London: Routledge.
Brown, S. E., Esbensen, F. A., & Geis, G. (2013). Criminology: Explaining crime and its context (8th ed.). New York: Routledge.
Brown, M. E., Treviño, L. K., & Harrison, D. A. (2005). Ethical leadership: A social learning perspective for construct development and testing. Organisational Behavior and Human Decision Processes, 97, 117–134.
Bussmann, K.-D. (2007). The control-paradox and the impact of business ethics: a comparison of US- and german companies. Monatsschrift für Kriminologie und Strafrechtsreform, 2(3), 260–276.
Bussmann, K.-D. (2015). The impact of personality and company culture on company anti-corruption programmes. In J. Van Erp, W. Huisman, & G. V. Walle (Eds.), The Routledge handbook of white-collar and corporate crime in Europe (pp. 435–452). London: Routledge.
Chin, W. W. (1998). Issues and opinion on structural equation modeling. MIS Quarterly, 22(1), 7–16.
Christie, P. M. J., Kwon, I.-W. G., Stoeberl, P. A., & Baumhart, R. (2003). A cross-cultural comparison of ethical attitudes of business managers: India, Korea and the United States. Journal of Business Ethics, 46, 263–287.
Daumenlang, K., & Müskens, W. (2004). Fragebogen zur Erfassung des Organisationsklimas (FEO). Handanweisung. Göttingen: Hogrefe.
de Bruin, B. (2016). Pledging integrity: Oaths as forms of business ethics management. Journal of Business Ethics, 136, 23–42.
Eigenstetter, M. (2006). ECQ—Ethical climate questionnaire—German version. Lengerich.
Eigenstetter, M., Dobiasch, S., & Trimpop, R. (2007). Commitment and counterproductive work behaviour as correlates of ethical climate in organizations. Monatsschrift für Kriminologie und Strafrechtsreform, Sonderheft, 2(3), 224–244.
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2015). Business ethics. Ethical decision making and cases (10th ed.). Stamford: Cengage Learning.
Getz, K. A., & Volkema, R. J. (2001). Culture, perceived corruption, and economics: A model of predictors and outcomes. Business and Society, 40(1), 7–30.
Graf Lambsdorff, J. (2007). The institutional economics of corruption and reform. New York: Cambridge University Press.
Grasmick, H., Bursik, R., & Arneklev, B. (1993). Reduction in drunk driving as a response to increased threats of shame, embarrassment, and legal sanctions. Criminology, 31, 41–67.
Hofstede, G., & Minkov, M. (2013). Values survey module 2013 manual. Available at http//:www.geerthofstede.com/media/2186/Manual%20VSM%20%202013%202013%2008%2025.docx. Accessed 18 Jan 2016.
House, R. J., Hanges, P. J., Javidan, M., Dorfman, W. P., & Gupta, V. (2004). Culture, leadership, and organizations: The GLOBE study of 62 societies. Thousand Oaks: Sage.
International Standard ISO 19600. (2014). Compliance management systems-guidelines. Geneva: ISO Copyright Office.
Jöreskog, K. G. (1970). A general method for analysis of covariance structures. Biometrika, 2(57), 239–251.
Kaptein, M. (2011). Toward effective codes: Testing the relationship with unethical behavior. Journal of Business Ethics, 99, 233–251.
Karstedt, S. (2003). Macht, Ungleichheit und Korruption: Strukturelle und kulturelle Determinanten im internationalen Vergleich [Power, inequality, and corruption: An international comparison of their structural and cultural determinants]. Soziologie der Kriminalität, Sonderheft der KZfSS, 43, 384–412.
Kline, R. B. (2011). Principles and practice of structural equation modeling methodology in the social sciences. New York: Guilford Press.
Kölbel, R. (2015). Whistleblowing in Europe. Regulatory frameworks and empirical research. In J. van Erp, W. Huisman, & G. V. Walle (Eds.), The Routledge handbook of white-collar and corporate crime in Europe (pp. 418–434). London: Routledge.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1999). The quality of government. Journal of Law Economics and Organization, 15(1), 222–279.
Lind, E. A. (1994). Procedural justice and culture: Evidence for ubiquitous process concerns. Zeitschrift für Rechtssoziologie, 15(1), 24–36.
Messner, S. F., & Rosenfeld, R. (2007). Crime and the American dream (4th ed.). Belmont, CA, USA: Thomson/Wadsworth.
Miceli, M. P., & Near, J. P. (2002). What makes whistle-blowers effective? Three field studies. Human Relations, 55(4), 455–479.
Nagin, D. S., & Paternoster, R. (1994). Personal capital and social control: The deterrence implications of a theory of individual differences in criminal offending. Criminology, 32, 581–606.
Nunner-Winkler, G. (2004). Sociohistoric changes in the structure of moral motivation. In D. K. Lapsley & D. Narvaez (Eds.), Moral development, self, and identity Mahwah (pp. 299–334). New York: Lawrence Erlbaum.
Paldam, M. (2002). The big pattern of corruption: Economics, culture and the seesaw dynamics. European Journal of Political Economy, 18, 215–240.
Rothschild, J., & Miethe, T. D. (1999). Whistle-blower disclosures and management retaliation: The battle to control information about organization corruption. Work and Occupations, 26(1), 107–128.
Rothwell, G. R., & Baldwin, J. N. (2006). Ethical climates and contextual predictors of whistle-blowing. Review of Public Personnel Administration, 26(3), 216–244.
Scholtens, B., & Lammertjan, D. (2007). Cultural values and international differences in business ethics. Journal of Business Ethics, 75, 273–284.
Schumacker, R. E., & Lomax, E. G. (2015). A Beginner’s guide to structural equation modeling (4th ed.). London: Taylor & Francis.
Simons, T., Leroy, H., Collewaert, V., & Masschelein, S. (2015). How leader alignment of words and deeds affects followers: A meta-analysis of behavioral integrity research. Journal of Business Ethics, 132, 831–844.
Sims, R. (2009). Collective versus individualist national cultures: Comparing Taiwan and U.S. employee attitudes toward unethical business practices. Business and Society, 48(1), 39–59.
Steßl, A. (2012). Effektives compliance management in unternehmen. Wiesbaden: Verlag für Sozialwissenschaften.
Tonoyan, V. (2004). The bright and dark sides of trust: Corruption and entrepreneurship—A cross-cultural comparison of emerging vs. mature market economies. Available at http://www.icgg.org/downloads/contribution11_tonoyan.pdf. Accessed 18 Jan 2016.
Tyler, T. R. (1990). Why people obey the law. New Haven: Yale University Press.
UK-Bribery Act. (2010). Available at http://www.legislation.gov.uk/ukpga/2010/23/pdfs/ukpga_20100023_en.pdf.
US-Foreign Corrupt Practices Act (2004). Available at http://www.justice.gov/criminal/fraud/fcpa/docs/fcpa-english.pdf.
Uslaner, E. M. (2005). Trust and corruption. In J. Graf Lambsdorff, M. Taube, & M. Schramm (Eds.), The new institutional economics of corruption (pp. 76–92). London: Routledge.
Valentine, S., Nam, S.-H., Hollingworth, D., & Hall, C. (2014). Ethical context and ethical decision making: Examination of an alternative statistical approach for identifying variable relationships. Journal of Business Ethics, 124, 509–526.
Verhezen, P. (2010). Giving voice in a culture of silence. From a culture of compliance to a culture of integrity. Journal of Business Ethics, 96, 187–206.
Viswesvaran, C., & Ones, D. S. (2002). Examining the construct of organizational justice: A meta-analytic evaluation of relations with work attitudes and behaviors. Journal of Business Ethics, 38, 193–203.
Weaver, G. R., Treviño, L. K., & Cochran, P. L. (1999). Corporate ethics programs as control systems: Influences of executive commitment and environmental factors. The Academy of Management Journal, 42(1), 41–57.
Worrall, J. L., Els, N., Piquero, A. R., & TenEyck, M. (2014). The moderating effects of informal social control in the sanctions-compliance nexus. American Journal of Criminal Justice, 39(2), 341–357.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Bussmann, K.D., Niemeczek, A. Compliance Through Company Culture and Values: An International Study Based on the Example of Corruption Prevention. J Bus Ethics 157, 797–811 (2019). https://doi.org/10.1007/s10551-017-3681-5
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-017-3681-5