Are Excellent Companies Ethical? Evidence from an Industrial Setting

Abstract

This study explores the relationship between corporate ethics and the concept of excellence as defined by Peters and Waterman (1982). A review of the literature on ethics and excellence leads to the proposition that the two are related. The constructs are operationalized and the relationship between them empirically tested using a sample of UK industrial marketing managers. The results provide strong evidence of a positive association between the two constructs, and identifies which of the aspects of excellence are the best predictors of the level of corporate ethics. The findings are discussed and a process model proposed of how excellence might foster an ethical corporate culture. Finally, areas for further research are outlined.