This paper reports the results of a survey of ethical attitudes, values, an
d propensities in public sector employees in Australia. It was expected tha
t demographic variables, personal values, and contextual variables at the i
ndividual level, and group- and organisational-level values would predict u
se of formal codes of ethics and ethical tolerance (tolerance of unethical
behaviour). Useable data were received from 500 respondents selected at ran
dom across public sector organisations in a single Australian state. Result
s supported the study hypotheses, but indicated that different mechanisms u
nderlie each of the criterion variables. Use of ethical codes was determine
d primarily on the basis of a perception that others use the code, while et
hical tolerance was determined by personal values. At an applied level, the
research highlights the need for orgasnizations to establish a critical ma
ss of code users, so that this operates as a normative influence on others
in the organization.