Culture matters: Cultural variability in corporate codes of conduct as a means to foster organizational legitimacy

Abstract In recent decades, implementing a code of conduct (CoC) as part of an organization's CSR infrastructure has become a sine qua non for gaining trust and fostering credibility. Despite numerous studies aimed at identifying cultural differences in the content of CoCs, little is known about what causes those differences and how they relate to an organization's communicative endeavor to gain trust and strengthen its legitimacy. In response, this article examines potential cultural differences in the public availability, design, and content of CoCs of corporations headquartered in countries in the Confucian Asian versus Anglo cultural clusters from the perspective of strategic communication. Drawing on the concepts of individualist versus collectivist culture and low‐ versus high‐context communication, the findings reveal significant differences, including that Anglo‐based companies more often make their CoCs publicly available and, in turn, significantly more comprehensive than Confucian Asian codes. Furthermore, compared with Anglo CoCs, significantly fewer CoCs of companies headquartered in Confucian Asia address the importance of moral values in daily business practices and sensitive issues such as prohibited behavior, whistleblowing, and sanctions following code violations. Those findings indicate significant institutional and cultural differences in companies' communication about ethical principles and corresponding conduct and suggest that, across cultures, CoCs differ in their content and are not accorded equal relevance as a means to foster legitimacy via CSR communication.