Codes of ethics

Moral competence refers to the ability to act in accordance with ethical values (Lo Presti et.al., 2023, p. 3). Rational egoism permeates societal processes and threatens collective well-being. If a society has low moral competence or civic engagement, morality and ethics alone will not suffice. Institutional mechanisms need to be created to help change people’s behaviour, motivating them to act in the interests of the whole community (Bridge 2009, p. 101). A code of ethics is an important management tool that organizations use to set desirable standards of behaviour (Kaptein 2021, Schwartz 2013). In practice, other synonymous terms such as code of practice, code of conduct or code of good governance are also used, which essentially mean the same thing (Constandt, Willem 2022, p. 211). Codes of ethics are internal instruments of organizations designed to monitor and regulate ethical risks. These codes serve two purposes. On the one hand, they help the organization to monitor and control internal ethical norms. On the other hand, they also shape the organization’s communication with the wider community, reflecting its ethical values and defining the standard in its relations with all stakeholders (Adelstein & Clegg 2016, Constandt, Willem 2022, p. 212). Sporting games have rules that govern their conduct and the permissible behaviour of participants. Codes of ethics can be said to perform a similar function in the governance of organizations. They clarify the boundaries of management’s desired actions and competences, and regulate interrelationships within the organisation. Managing an organisation without a code of ethics is like playing a game without rules.

Codes of ethics are relevant for sports organizations because they regulate issues that are specific to the sporting environment rather than applying to general business (De Waegeneer, Devisch, Willem 2016, p. 3). Sport organizations are characterised by some unique features, such as high visibility and fan loyalty, high involvement of young people and children, which create a specific context. In addition, many stakeholders in sport organizations are volunteers who need an ethical and autonomous environment. Another important feature is the low degree of substitutability of sports organizations (Smith & Stewart, 2010), which forces fans to remain loyal as there is no alternative available. While people can easily change clothing and food brands, in sport there is often only one team in a city and only one national team in a country (De Waegeneer, Devisch, Willem 2016, p. 3). As Geoff Walters and Richard Tacon (2018) argue, codes of ethics are adopted to create both external and internal credibility and legitimacy. However, it is important to assess the content of a code of ethics to determine whether it is meaningful and contributes to good governance (Constandt, Willem 2022, p. 211). One way to assess the impact of codes of ethics on ethical behaviour in organizations is to analyse statistics on reported breaches. If the number of violations increases, it can be concluded that the code of ethics is working effectively (Kaptein & Schwartz, 2008; McKendall 2002, Somers, 2001). However, if employees fear possible retaliation or ostracism, even serious ethical violations may remain silent (Webley & Werner 2008; De Waegeneer, Devisch, Willem 2016, 4). Strong procedural protections and anonymity are therefore essential factors that increase the effectiveness of a code of ethics (De Waegeneer, Devisch, Willem 2016, p. 9).

It is important that codes of ethics include clear and detailed criteria, procedural procedures and sanction mechanisms for breaches (McKendall 2002, De Waegeneer, Devisch, Willem 2016, p. 8). If a code is weak and declarative in content, or is not followed in practice, it is like a ‘toothless watchdog’ that supposedly roars but cannot protect (Kaptein 2021, Constandt, Willem 2022 p. 213). The leadership of the organization has the power and thus the ability to ignore unethical behaviour, to silence or cover up certain individuals or themselves. Management holds the ‘keys to ethics’ and therefore the accountability and actions of these individuals must be subject to increased scrutiny and monitoring (De Waegeneer, Devisch, Willem 2016 p. 17). The capacity of the legal framework to develop ethical organizations and accountable governance structures is limited, as the law can only provide a framework of basic principles of accountability, but good governance needs to go further (Farrar 2001, Sherry, Wood, Shilbury 2007, p. 268).

The capacity of the legal framework to develop ethical organizations and accountable governance structures is limited, as the law can only provide a framework of basic principles of accountability, but good governance needs to go further (Farrar 2001, Sherry, Wood, Shilbury 2007, p. 268). The ethical culture of sport organizations, imposing their corporate morality on individuals (Pastin 1986), has come under considerable criticism. The presence or absence of codes of ethics is indicative of an organization’s ethical practices (Maclagan 1996, p. 648). Regular scandals of sports organizations around the world have drawn increased attention to adaptations of codes of ethics (De Waegeneer, Devisch, Willem 2016, p. 1). The absence of a code of ethics in an organization may indicate a lack of interest or understanding of ethics (Adams et.al., 2001, De Waegeneer, Devisch, Willem 2016, p. 4).

The implementation of codes of ethics can also be facilitated by pressure from the bodies that oversee sport organizations or by regulations that make it an obligation for sport organizations (McKendall 2012, Singh, 2011). For example, the Latvian Law on Sport could be supplemented with a provision requiring each sports organization to develop its own code of ethics. Such measures would ensure that ethical principles are systematically observed across the sports sector.