Corporate Code of Ethics and Reporting Wrongdoing In Private Sector Organizations in Malaysia

Zeinab Amini Yekta

Abstract


With rapid changes in technology and the borderless global environment, organizations need to have ethical guiding principles. Malaysia as a developing country needs to focus on and be aware of the ethics codes and guidelines in organizations as well as minimize wrongdoings. Ethical behaviors which should be emulated need to be portrayed instead of negative behaviors being emphasized. Strategic implementation and commitment to organizational change with proper communication channels and having ethical safeguards in place are expected to enhance the application of ethical guidelines. Effective communication is important for successful implementation of code of ethics programs which will ultimately improve reporting wrongdoing in organizations. The results show that, employee relationship is the most important determinant of reporting wrongdoing. Having ethical codes and guidelines alone without being effective will not benefit the organization. It indicate that to be effective when having code of ethics and reporting wrongdoing, the organization must invest time and effort in building good strong employee relationships.

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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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