Twenty-second International Conference on Knowledge, Culture, and Change in Organizations

Abstract

In developing countries, the field of business ethics has acquired increasing salience in the last two decades, not only for keeping pace with the ethical practices applied in North America and Europe, but also for addressing the recurring problems of corruption and corporate wrongdoing that affects most industries. Accordingly, many firms have revised their strategic approach so as to include an ethical stand, and have developed internal instruments (such as policies, codes, and statements of principles) to regulate their relationships with internal and external stakeholders. The purpose of this research is to examine the development of the ethical normative framework in the top companies in Peru. The research methodology includes the structured observation of the websites of 365 firms randomly selected out of the top 10,000, and the in-depth examination (through interviews and documentary analysis) of eleven cases of leading companies in several key industries. The analysis revealed that only a minority of firms have updated the corporate mission and vision with an ethical perspective, and have actually developed codes of ethics or conduct, though an important number of them have devised related policies. The study also examines the main ethical principles addressed in these instruments, and explores relevant differences across industries. This research conveys valuable implications for scholars, considering the lack of studies on ethical practices in the country, and it may also be useful for managers, as it elucidates the different challenges that involves the development and implementation of these frameworks.