The Impact of the Presence of a Code of Ethics on the Economic Prosperity of a Company

The number of companies that are introducing ethical management continues to grow globally, including the Czech Republic. A code of ethics is a tool for determining the infrastructure of a company, as well as manages it. Expert opinions on the possible economic impact of ethical management differ considerably. The aim of this contribution is to prove the possible relationship between the presence of a code of ethics in a company and its economic prosperity.Design/methodology/approach: A sample set of companies was selected in cooperation with the Czech Statistical Office. The data was collected on the basis of a questionnaire. In total questionnaires were sent to 710 targeted companies selected from random industries. In total, 297 responses were received, which is equivalent to a response rate of 41.83%. The purpose was to verify the hypothesis that the presence of a code of ethics in a company has no influence on its economic prosperity. The differences were evaluated using the standard, unpaired, two-tailed Chi-square test of relative frequency differences. We used R statistical software. Findings: Statistical analysis of the results attained in the questionnaire survey show that the presence of a code of ethics, or a lack thereof, has no demonstrable impact on the economic results of a company regardless of its size. Research/practical implications: Even though the results of the research show that the existence of a code of ethics has no demonstrable impact on the economic results of a company, this has not discouraged or hindered the increasing trend for companies to introduce ethical management, which reflects the positive impact companies believe it brings to their company culture and public image. Originality/value: The conducted research is unique and involves a relatively large sample set which introduces new findings to the field of ethical company management.