Ethical Capability as a Competitive Advantage - Three Case Studies within the Volvo Corporation

Abstract

The aim of this thesis is to provide a better understanding of how ethical capability can be used as a competitive advantage. This thesis describes, explores and tries to explain who is involved in ethics management, a code of ethics, ethics training, and the advantages versus risks with formalizing ethics within an organization. Three different case studies within the Volvo Corporation have been conducted. The findings suggest that the use of an ethics committee is highly related to the size of the company and that one of the main purposes of a code is that it defines the minimum expectations of the employees. The study further shows that ethics is such a big area that it is difficult to cover all the different topics in a training program and that a positive effect of formalizing ethics is that it makes it clear for external parties what to expect.

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