Institutionalization of Ethics: Values Versus Compliance

How to achieve greater effectiveness in the institutionalization of ethics in organizations is a key challenge. The present study aimed to investigate the impact that different strategies and approaches in the management of business ethics, namely values orientation and formalization orientation, have on the ethical perspective and behavior of employees. The literature review points out that values centered orientation have a more lasting and significant effect than compliance orientation, because the latter, although mandatory, does not provide the same depth in promoting an organizational ethical culture. The quantitative study carried out through a questionnaire survey allowed us to conclude that the implementation of a hybrid ethical approach, which integrates both value orientation and formalization, allows organizations to absorb the benefits of both strategies and allows them to be better equipped to deal with risk situations, making it possible not only to prevent unethical behavior, but also to respond effectively when it arises, thus ensuring higher levels of ethical performance.