Codes of conduct in the Swedish business sector: Application on external parties

This qualitative study was conducted to investigate how large publicly listed companies inSweden apply its code of conduct on external parties as well as how such application is bestcarried out. Three overarching steps (implementation, monitoring and actions) weredeveloped from previous research to serve this purpose. Agency and contract theory wereimportant to understand the underlying problems of application of codes of conduct onexternal parties. It was found that companies that adequately address all of the three stepsexperience a successful application of its code of conduct on external parties. Companies thatdo not address the three steps as thoroughly do not experience the same compliance with theircode of conduct. It was further found that many companies fail to adequately address theemphasized areas. Extensive deficiencies put companies in a vulnerable position as externalparties associated with a company might have a negative impact on the company’s brand andreputation. An outlook shows that companies are not prioritizing all of the steps sufficientlyand it is thus suggested that they revise their plans. The project was carried out incooperation with KPMG Forensic and Advokatfirman Delphi. A content analysis and a survey were used to collect necessary data