Codes of Conduct in the Ugandan Coffee Industry: Do They Affect Ethical Behavior?

Abstract
The adoption and implementation of codes of conduct is an instrument to demonstrate Corporate Social Responsibility (CSR). The incorporation of these codes is often associated with less perceived wrongdoing in organizations. The research objective is to answer: “how does the adoption and implementation of codes of conduct affect ethical behavior in the Ugandan coffee industry, and which tensions occur during this implementation?” To answer this question, thirteen semi-structured interviews have been conducted in the country of origin. The interviewees are different players in the Ugandan coffee industry and value chain (VC), amongst which are members of development organizations, coffee researchers, coffee association members, and rural coffee farmers. Data gathered in this study suggests that adoption and implementation of codes of conduct are positively affected by high levels of VC-integration, civil society pressure, empowerment of VC-players, and when the VC-player was a member of an association or a cooperative. However, the study found that VC-players also experienced tensions which arose from unethical behavior and transaction costs and which had a negative effect on code adoption and implementation. Nevertheless, this study also found evidence that VC-players who incorporated codes of conduct are perceived to behave more ethically. The relationship between code of conduct adoption and ethical behavior is amplified by principles of execution, which are the communication of codes, training and education and the presence of enforcing mechanisms. Furthermore, the role of trust and commitment is not to be underestimated in reinforcing this relationship. Additionally, ethical behavior appears to have a positive effect on productivity and ultimately competitiveness. Based on these findings, a conceptual model is presented.
Description
Keywords
Ugandan Coffee Industry, Ethical Behavior, Codes of Conduct
Citation
Lekkerkerker, F., Wickert, C., Katamba, D., & Seruma, A. (2016). AGRI-QUEST.