LA INFLUENCIA DEL CONSEJO DE ADMINISTRACIÓN EN LA ADOPCIÓN DE UN CÓDIGO ÉTICO: THE INFLUENCE OF THE BOARD OF DIRECTORS ON IMPLEMENTING AN ETHICS CODE

Business ethics as a component of the corporate social responsibility, should be promoted from the Board of Directors. In this sense, the drawing up of a code of ethics would imply the formal statement of corporate principles which affect the responsibility with employees, shareholders, customers, t...

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Bibliographic Details
Published in:Revista de contabilidad 2008-07, Vol.11 (2), p.93
Main Authors: Sánchez, Isabel M García, Domínguez, Luis Rodríguez, Álvarez, Isabel Gallego
Format: Article
Language:Spanish
Subjects:
Boards of directors
Business ethics
Corporate responsibility
Social responsibility
Stock exchanges
Stockholders
Studies
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Summary:Business ethics as a component of the corporate social responsibility, should be promoted from the Board of Directors. In this sense, the drawing up of a code of ethics would imply the formal statement of corporate principles which affect the responsibility with employees, shareholders, customers, the environment and every aspect of the society. Previous empirical evidence has emphasized the contradictory effect between the ownership of shares by directors and its effect on the shareholders' economic interests, and a low concern with ethics issues by independent directors. This paper aims at establishing the effect of these two features of the Board of Directors on the incorporation of a ethical code for non-financial quoted Spanish companies. The finding show that the Board ownership leads to a entrenchment in the top management, by generating a divergence between owners' and managers' ethical interests. Faced with this situation, the presence of independent directors becomes necessary to reduce such conflicts.
ISSN:1138-4891