Premium
Code of ethics and workers' communication policies: The role of corporate governance
Author(s) -
Furlotti Katia,
Mazza Tatiana
Publication year - 2020
Publication title -
corporate social responsibility and environmental management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.519
H-Index - 73
eISSN - 1535-3966
pISSN - 1535-3958
DOI - 10.1002/csr.2024
Subject(s) - business , independence (probability theory) , transparency (behavior) , corporate governance , ethical code , agency (philosophy) , accounting , public relations , stakeholder , good governance , code (set theory) , political science , finance , sociology , computer science , law , social science , statistics , mathematics , set (abstract data type) , programming language
A good monitoring that reduces agency conflicts can help in developing structured policies in code of ethics to help the social information processing for employees. The objective of this research is to investigate whether the corporate governance characteristics, such as duality, board of directors' size and independence as measures of monitor capacity are related to workers' communication policies disclosed in code of ethics. Based on a content analysis of code of ethics to define the latter polices and on regression analyses on 808 firm‐year observations, our results show that board of directors' independence is positively related to code of ethics policies related to communication with employees. Independence of the board is expression of supervising, supporting transparency and aiming to safeguard the best interests of all stakeholders, including employees.