Codes of Conduct of German Public-Listed Companies: Content, Enforcement, and Implementation

Apart from a few comparative surveys focusing on the largest companies, there are no content analyses of the codes of conduct of German companies. Due to country-specific differences in the legal, economic, and cultural environment, results of content analyses can hardly be transferred from one country to another. Refining existing coding schemes to include upcoming topics, like privacy consideration, but also code enforcement and implementation, we analyze the content, patterns, and anteceding background factors. Our findings indicate that while codes are very common nowadays, there are substantial differences in the degree to which codes address specific topics and functions. We find a single underlying dimension: the intensity of regulation. Codes are most elaborate in terms of what actors are supposed to do, while issues like guidance and enforcement are dealt with in less detail. Endorsement of the code by the top management is also quite low. As for background factors like sector and stock market segment, we find that regulatory intensity differs in line with stock market segment, which is not a proxy for company size but rather for the presence of companies in the public and regarding the code’s role, e.g., the preservation of a company’s image. Our study contributes to the literature by examining codes’ content of the largest German listed companies, which allows for both, international level comparisons and comparisons over time. In addition, we modified and disclosed a frequently used coding scheme that can be used for future research. Finally, we contribute to the business practice by generating a basis for benchmarking their code and giving recommendations for reconsidering their content and design.