In the current financial and economic crisis, public concern of a value-based economic system grows. The demand by politicians, economists and the society for ethics-oriented behaviour in the market increases and thus questions the prevailing system of worldwide managerial capitalism. Especially in Germany, the rising awareness for bad business practices calls for a change in values. This development not only affects the providers of products and services, but also has significant impacts on their strategic and operational advisors: the industry of management consulting.
Against this background, the present masters dissertation examines the extent to which the principles of integrative consulting ethics are incorporated in management consulting firms in Germany. To this end, the determinants of awareness, institutionalisation, application and enforcement of ethics integration in organisations are assessed. This work represents the first academic approach to researching the practical application of thoroughly reflected ethics-oriented guidelines and standards in the industry management consulting.
After a general introduction into the topic, the theoretical framework research provides the background of the work done in the field of ethics in management consulting, namely integrative consulting ethics. The empirical part employs a multi-method approach: firstly, a quantitative survey was carried out via the BDU (Association of German Management Consultants) and produced a total of 194 responses, thus providing a statistical relevance for the results; and secondly, qualitative interviews were led with four representatives of large management consulting firms in Germany, leading to a series of conclusive deductions.
The drawn up conclusions show that the level of incorporating the principles of integrative consulting ethics in management consulting firms in Germany is generally low. Awareness for the topic is superficial, leading to deficient institutionalisation; furthermore, application is suggested to be very weak and enforcement appears to be practically non-existent. Finally, the outlook and the recommendations act as a reference to improve the current status quo of the industry in the light of a rising importance of value-oriented activity within the economic system.
Table of Contents
1 Introduction
1.1 Personal background and motivation
1.2 Relevance of ethics in management consulting
1.3 Research question and investigative aims
2 Theoretical background: Integrative consulting ethics
2.1 Management consulting
2.1.1 Definition
2.1.1.1 Management
2.1.1.2 Consulting
2.1.1.3 Management consulting
2.1.2 Historical development
2.1.3 Management consulting in Germany
2.1.3.1 Market size and structure
2.1.3.2 BDU as industry association
2.1.3.3 Current issues
2.1.3.4 Outlook
2.2 Business ethics
2.2.1 Definition
2.2.1.1 Ethics
2.2.1.2 Discourse ethics
2.2.1.3 Business ethics
2.2.2 Business ethics in Germany
2.2.2.1 Historical influence
2.2.2.2 Current issues
2.2.2.3 Outlook
2.3 Integrative consulting ethics
2.3.1 Definition
2.3.2 Historical development
2.3.3 Integrative consulting ethics in Germany
2.3.3.1 Current issues
2.3.3.2 Outlook
3 Methodology
3.1 Methodological approach
3.2 Quantitative research methods for empirical investigation part 1
3.2.1 Objectives
3.2.2 Methods
3.3 Qualitative research methods for empirical investigation part 2
3.3.1 Objectives
3.3.2 Methods
4 Empirical investigation part 1: Awareness and institutionalisation of integrative consulting ethics in management consulting firms in Germany
4.1 Results of quantitative investigation
4.1.1 Statistical data of respondents
4.1.2 Opening statements
4.1.3 Guiding principles of consulting ethics
4.1.3.1 Understanding of ethics-oriented consulting
4.1.3.2 Ethics-oriented consulting principles
4.1.3.3 Ethics-oriented impacts of consulting
4.1.4 Integrity of consulting companies
4.1.4.1 Ethics-oriented corporate culture
4.1.4.2 Ethics-oriented personnel policy
4.1.4.3 Ethics-oriented project execution
4.1.5 Closing statements
4.2 Assessment of quantitative investigation
4.2.1 Awareness of integrative consulting ethics
4.2.1.1 Guiding principles of consulting ethics
4.2.1.2 Integrity of consulting companies
4.2.1.3 Large management consulting firms in Germany
4.2.2 Institutionalisation of integrative consulting ethics
4.2.2.1 Guiding principles of consulting ethics
4.2.2.2 Integrity of consulting companies
4.2.2.3 Large management consulting firms in Germany
4.2.3 Deductions
5 Empirical investigation part 2: Application and enforcement of integrative consulting ethics in large management consulting firms in Germany
5.1 Preparation and execution of the personal interviews
5.2 Results of qualitative investigation
5.2.1 Opening statements
5.2.2 Guiding principles of consulting ethics
5.2.2.1 Understanding of ethics-oriented consulting
5.2.2.2 Ethics-oriented consulting principles
5.2.2.3 Ethics-oriented consulting impacts
5.2.3 Integrity of consulting companies
5.2.3.1 Ethics-oriented corporate culture
5.2.3.2 Ethics-oriented personnel policy
5.2.3.3 Ethics-oriented project execution
5.2.4 Closing statements
5.3 Assessment of qualitative investigation
5.3.1 Application of integrative consulting ethics
5.3.1.1 Guiding principles of consulting ethics
5.3.1.2 Integrity of consulting companies
5.3.2 Enforcement of integrative consulting ethics
5.3.2.1 Guiding principles of consulting ethics
5.3.2.2 Integrity of consulting companies
5.3.3 Deductions
6 Conclusions
6.1 Integrative consulting ethics in management consulting firms in Germany
6.1.1 Awareness and institutionalisation
6.1.2 Application and enforcement
6.2 Outlook and recommendations
6.2.1 Further research
6.2.2 Course of action for the management consulting industry
6.2.3 Consulting products and services
7 Annex
Annex 1: Questionnaire for quantitative online survey
Annex 2: Summarised results of quantitative survey
Annex 3: Interview guideline for qualitative survey
Annex 4: Interview transcriptions of qualitative survey
Annex 5: Learning experience in researching
8 Bibliography
9 References for quotes
Objectives and Research Focus
The primary objective of this dissertation is to examine the extent to which principles of integrative consulting ethics are actually incorporated within German management consulting firms. The study addresses the gap between theoretical ethical guidelines and their practical application by analyzing four determinant levels: awareness, institutionalisation, application, and enforcement.
- Evaluation of the awareness levels regarding ethical standards in management consulting.
- Assessment of the institutionalisation of ethics-oriented guidelines and corporate cultures.
- Investigation into the practical application of ethical principles during project acquisition and execution.
- Analysis of enforcement mechanisms, including the impact of ethical behavior on personnel policy and incentives.
- Development of recommendations for the management consulting industry to enhance value-oriented business practices.
Excerpt from the Book
Personal confrontation with ethics
All of the respondents state that as management consultants, they are confronted with the topic of ethics, each of them in the own every-day work field. This includes direct relations to specific critical areas of ethics in consultancy such as white-collar crime, distrustful corporate governance and citizenship, questionable change management, suspicious restructuring and reorganisation. Furthermore, it also comes up regularly in different project phases like setup, acquisition, benchmarking, submission, or finalisation.
According to the remarks, two groups of people are specifically affected in the context of ethics: employees and clients. On one side, the behaviour towards and amongst the own employees is subject to a variety of ethical issues like unreliable internal communication, excessive project pressure, unrealistic financial objectives, fictitious corporate culture, untruthful evaluation, and phoney core values. On the other side, the interaction with the client raises multiple questions with an ethical dimension, e.g. questionable responsibility, negative project impacts, misleading external communication, disproportionate financial interests, or misinterpreted legal requirements.
Summary of Chapters
1 Introduction: Provides the author's background and motivation, establishes the relevance of ethics in the industry, and defines the research question.
2 Theoretical background: Integrative consulting ethics: Lays the conceptual foundation by defining management consulting, business ethics, and the specific framework of integrative consulting ethics.
3 Methodology: Details the multi-method approach, including the quantitative survey conducted via the BDU and the qualitative in-depth interviews with major firms.
4 Empirical investigation part 1: Awareness and institutionalisation of integrative consulting ethics in management consulting firms in Germany: Presents the statistical data and findings regarding the general awareness and structural institutionalisation of ethics in the German market.
5 Empirical investigation part 2: Application and enforcement of integrative consulting ethics in large management consulting firms in Germany: Analyzes the practical application and enforcement of ethical guidelines based on expert interviews with large consulting firms.
6 Conclusions: Summarizes findings, discusses the current status of the industry, and provides recommendations for further research and practical improvements.
Keywords
Integrative consulting ethics, management consulting, business ethics, corporate governance, professional standards, sustainability, stakeholder model, social responsibility, consulting practice, institutionalisation, ethical behavior, transparency, German consultancy market, value-based management, professional ethics.
Frequently Asked Questions
What is the core focus of this research?
The work examines the practical integration of ethical principles within the German management consulting industry, assessing how firms move beyond theoretical commitments to active ethical management.
What are the central thematic areas?
The study focuses on four pillars: the level of ethical awareness, the institutionalisation of these standards, their daily application, and the mechanisms used to enforce compliance.
What is the primary goal of the dissertation?
The goal is to determine the extent to which integrative consulting ethics are actually applied by firms in Germany, identifying gaps between stated values and real-world project execution.
Which scientific methodology is applied?
A multi-method approach is used, combining a quantitative online survey (n=194) for statistical breadth with qualitative in-depth personal interviews with representatives of four major consulting firms for thematic depth.
What is covered in the main section of the dissertation?
The main part analyzes the status of ethics through both quantitative data regarding awareness and institutionalisation, and qualitative insights into the application and enforcement processes within top-tier consulting firms.
Which key terms describe this research?
Key terms include integrative consulting ethics, corporate culture, social responsibility, professional standards, stakeholder involvement, and management consulting.
How is the "ideal of a well-managed company" perceived in interviews?
Most interviewees lack a concrete, written "ideal," viewing such models as impractical due to the diversity of client needs, though some reference human rights or general corporate governance as baselines.
What is the finding regarding the role of financial pressure?
Interviews reveal that financial and project pressure frequently override ethical considerations, shifting responsibility to individual consultants rather than maintaining an organizational structure that supports ethical conduct.
- Quote paper
- Andreas Hauser (Author), 2009, Ethics in Management Consulting, Munich, GRIN Verlag, https://www.grin.com/document/135704
