Business Ethics Practices in Top Companies in Peru: Variety, Composition, and Links

In Latin America, and in Peru in particular, an ethical approach to business is especially relevant when considering the endemic problems of corruption and informality of this region, as well as the negative social impacts of many industries in it. Despite this, relatively few companies have a systematic commitment to business ethics. The purpose of this research is to analyze the variety of ethical practices applied in the most important companies in the country, to examine the connections among them, and to identify relevant differences according to the size and sector of these companies. The analytical framework distinguished six categories of ethical practices: construction of internal normative instruments, adoption of external standards, creation of specialized offices, implementation of training activities, development of reporting procedures, and application of control mechanisms. The methodological design included a structured observation of ethical practices reported on the websites of 365 companies randomly selected out of the top 10,000 in the country. The analysis revealed that only one out of six companies reported at least one ethical practice. Among the firms that reported information about their ethical approach, the most recurrent practices were standardized certifications, ethical policies, ethical codes and ethical hotlines. In general, companies that include several ethical practices tend to do it consistently, and some of these practices function as a trigger for including others. The presence of certain ethical practices has some significant variations among firms considering their size and the industry to which they belong. This study provides the first comprehensive approach to the integration of ethical practices in the country, which conveys valuable implications for scholars, business managers, as well as for public and private organizations interested in promoting business ethics.