Table Of ContentStudies in Economic Ethics and Philosophy
Series Editor Editorial Board
Peter Koslowski F. Neil Brady
George Brenkert
Geoffrey Brennan
James M. Buchanan
Richard De George
Jon Elster
Amitai Etzioni
Gerard Gafgen
Yuichi Shionoya
Lee A. Tavis
Philippe Van Parijs
Wilhelm Vossenkuhl
Josef Wieland
Springer-Verlag Berlin Heidelberg GmbH
Josef Wieland
Editor
Standards and Audits
for Ethics
Management Systems
The European Perspective
With 18 Figures
and 4 Tables
Springer
Professor Dr. JosefWieland
Fachhochschule Konstanz
Fachbereich Wirtschafts-und Sozialwissenschaften
BrauneggerstraBe 55
78462 Konstanz, Germany
ISBN 978-3-642-07292-5 ISBN 978-3-662-05107-8 (eBook)
DOI 10.1007/978-3-662-05107-8
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Preface
The articles collected in this volume deal with the contents and processes
of good corporate practice. Their common question is how moral values and
ethical demands can become an integral part of economic and corporate deci
sions-in a way that is credible and comprehensible for the society.
Generally accepted best practice or minimum requirements for codes of
conduct matter in this context. They codify values like integrity, fairness,
openness, honesty, truthfulness, solidarity and justice, which have to be im
plemented in a company's day-to-day business. In one sentence: There is a
need to develop criteria for seriosity and credibility, for evaluating and con
trolling standards of conduct and the managerial systems created for this
purpose.
In the international arena terms like Ethics management system, Ethics
program, Values program, Ethics audit and Social audit are in use to denote
these management systems. In this context it seems to me that the European
perspective results from the values driven integration of corporate govern
ance (e.g. risk management, compliance), quality management (e.g. human
capital, supply chain) and corporate citizenship (human rights, ecology, so
cial responsibility, communitiy) into a comprehensive and consistent man
agement decision system. The core value and common denominator of these
areas is sustainability. This, for instance, as opposed to narrow compliance
programs that are largely law driven, to use a distinction which Lynn S. Paine
introduced.
It is a widely accepted insight that ethics management systems and values
programs have to be conceived individually and firm specific, if they really
are to be filled with life. They are kind of a business card for the company.
On the other hand, there is also a growing public demand for evaluating the
seriosity of these systems. However, the contributions in this volume show
that certain constituents are typical for all these systems and programs, and
that they can be used to indicate their credibility. They include i) codified
codes of ethics, codes of conduct, ii) their communication (internal and ex
ternal) and practical performance in the operative business (work contracts,
carreer planning, declaration of objectves, seminars), iii) the implementation
of corresponding management systems that connect and evaluate the several
instruments and eventually, iv) in fourth place, the organisational integration
JOSEF WIELAND
(Ethics Office, functional integration). All standards of good corporate prac
tice exactly refer to these four constituents.
Standardised ethics management systems and values programs are a
rather new managerial task. Presently, its methods, instruments and contents
are subject to a dynamic theoretical and practical development. The volume
presented here documents the state of the European discussion.
Part I contains four fully developed proposals for ethics standards from
Germany (VMSztw), Great Britain (AA 1000), Italy (Q-RES) and Spain
(Foretica). In part II the reader will find a more detailed analysis of particular
aspects of standards like audits, fighting corruption, social responsibility,
measuring moral capital, information technology and discourse theory.
It would be desirable to develop standards that are tailored to the Euro
pean cultural area and take into account the historic development of European
corporate cultures. If this book contributes to that purpose, it will have ful
filled its function.
Finally, I would like to acknowledge the competent editorial work of
Karin Ewert and the profound support of Michael Furst as regards content,
both of whom provided essential assistance in preparing and completing this
book.
Josef Wieland
VI
Table of Contents
Preface
JOSEF WIELAND ----------------------------------------------------------------------_v
Part I
Standards
I. ValuesManagementSystem2tw: A New Standard
for Values Driven Management
JOSEF WIELAND ----------------------------------------------------------------·3
2. AAlOOO Series: The Challenge of Accountability Management
MICHAEL PEIRCE. _____________________________________________________________ 25
3. The Ethical Management System ofFORETICA
PEDRO FRANCES, GERMAN GRANDA,
ALBERTO UR TIAGA __________________________________________________________ 41
4. The Q-RES Project: The Quality of Social
and Ethical Responsibility of Corporations
SIMONE DE COLLE, LORENZO SACCONI,
EMMA BALD IN -----------------------------------------------------------------60
Part II
Studies about Standards and Audits
5. Values Management Systems and their Auditing:
Concept, Instruments and Empirical Experiences
JOSEF WIELAND AND STEPHAN GR0NINGER_ ________________ l19
TABLE OF CONTENTS
6. Issues in the Development of an Anti-Corruption
Management System Standard
THOMAS F. MciNERNEY _________________________________________________ 148
7. Political Party Funding and Business Corruption
ANTONIO ARGANDONA __ ------------------------------_________________ 163
8. Developing a Corporate Values Statement- A Case Study
DOMENEC MELE_ ____________________________________________________________ 191
9. Measuring Moral Capital
ALEJO JOSE G. SISON_ _____ --------------------------______________________ 203
10. Ethics Management Systems, Responsibility
and Information Technology
BERND CARSTEN STAHL ________________________________________________ 216
11. Framework for Ethically Aware Businesses:
The Integrity Management Model
BERNHARD W AXENBERGER __________________________________________ 233
About the Editor_ _______________________________________________________________________ 253
VIII
Part I
Standards
1 ValuesManagementSystemztW:
A New Standard for
Values Driven Management
JOSEF WIELAND
I. The four sources of economic standards of conduct
II. Core subjects for integrative systems of ethics
and values management
III. Social driving forces of self-binding
IV. Idea and concept
V. Theoretic features of the VMS2tw
VI. The ValuesManagementSystem2tw
I. Principles of the VMS2tw
2. Constituents of the VMS2tw
VII. Perspectives
I. The four sources of management standards of conduct
In this essay I would like to develop some aspects of the theoretical foun
dations of a values driven standard for good business behaviour. In the final
analysis I will try to give an answer to the question: Why do we need ethical
standards at all? I will end with unfolding the principles and constituents of
the ValuesManagementSystem2tW (VMS2tW) which is a standard for sustain
ability in corporate management.
To which actual situations do ethics management systems and values pro
grams refer? The conclusion that good corporate practice is based, among
other things, on the consideraton of moral values and demands is not new.
Great businessmen always knew about their ,corporate responsibility" in an
integral sense and took this into account in their actions and decisions. Fre
quently, they took the models of this responsibility from the tradition of
