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ABSTRACT. This article examines the pressures and players that have shaped business ethics in Canadian corporations, and reports on the status of Canadian corporate social performance in 1995. Business in Canada has not been subject, up to 1996, to a powerful national institutional framework such as the US Securities and Exchange Commission and the Foreign Corrupt Practices Act. Consequently, business ethics in Canada have developed primarily in response to broader socio-political and socio-economic factors than in the US, and will probably continue to do so. Interestingly, the issues, policies and practices developed in Canada may provide insights for US corporations as they respond to broadened pressures. Business ethics in Canada, on the other hand, will benefit increasingly from the US experience as pressures grow for national regulation and statutes governing corruption.
Motivated by different concerns from those in the United States and Europe, Canadian business ethics applications, research and learning experiences are distinctive. Future developments post 1995, while responsive to global concerns and concerns common to all of North America, are also likely to follow somewhat independent directions in the future.
Business ethics in Canada have been shaped by pressure from several quarters: Canadian society in general, active share ownership from churches and other responsible institutional or ethical investors, self-interest of executives including proactive behavior based on developments in the US. In addition, business ethics developments in Canada have been facilitated by the emergence of a group of consultants, the interest of academic researchers, and the interest of the Canadian accounting profession. These pressures will be discussed in turn to provide an understanding of the past and an inkling of the future. Pressures from society in general
Business ethics in Canada have been shaped by concerns on the part of society in general for health, conscience, the environment, and for good corporate governance. These concerns, while different from those experienced in the US have been influenced somewhat by US developments.
For example, concerns for the prevention of fraud and unethical business practices have been dominant in the US, whereas these issues have only recently joined the front rank in Canada. Canada does not have, for example, the equivalent to a Foreign Corrupt Practices Act or a Whistleblower Protection Act. Similarly, our significant dependence on...