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Governance Research Digest – January 2012

Summary

To examine the current state of business ethics in Israel, the study examines the following: (1) the extent of business ethics education in Israel; (2) the existence of formal corporate ethics program elements based on an annual survey of over 50 large Israeli corporations conducted over 5 years (2006–2010). In addition it examines perceptions of the state of business ethics based on interviews conducted with 22 senior Israeli corporate executives.

Key Findings

• In general, and particularly as a young country, Israel might be considered to have made great improvements in the state of business ethics over the years.
• In terms of business ethics education, the vast majority of universities and colleges offer at least an elective course in business ethics.
• In terms of formal business ethics program elements, many large companies now have a code of ethics, and over time continue to add additional elements.
• Most respondents believed they worked in ethical firms.
• Despite these developments, however, there appears to be significant room for improvement, particularly in terms of issues like: nepotism/favoritism; discrimination; confidentiality; treatment of customers; advertising; competitive intelligence; whistle-blowing; worker health and safety; and the protection of the environment.
• When compared with the U.S. or Europe, most believed that Israeli firms and their agents were not as ethical in business.
• A number of reasons were suggested that might be affecting the state of business ethics in Israel.
• A series of recommendations were also provided on how firms can better encourage an ethical corporate culture.

Author(s)

M. S. Schwartz

Source

Journal of Business Ethics, 105 (4), 429-446

Tags: business ethics, business ethics education, corporate ethics, Israel, Journal of Business Ethics, perceptions