IDEAS home Printed from https://ideas.repec.org/h/zbw/entr15/183672.html
   My bibliography  Save this book chapter

Testing Impact of Commitment to Business Ethics Influences Corporation Performance: Preliminary Research

In: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Kotor, Montengero, 10-11 September 2015

Author

Listed:
  • Vig, Silvija
  • Dumičić, Ksenija

Abstract

Growing recognition of significance and the impact that commitment to business ethics has on corporate performance has attracted the interest of scientific and business researchers alike. At the same time, various stakeholders including boards, senior and corporate managers, employees, customers, suppliers, investors, governments and communities have been interested in the correlation between corporate performance in non-financial terms and its commitment to business ethics which has significantly increased its importance as well as its dominant impact in business. Research of the correlation of business ethics and business performance is widely conducted in the developed countries, yet it is still rare in Western Balkans countries, including Croatia, which gave rise to the need to conduct a survey on this topic. The paper comprises preliminary research which examines critical factors that present commitment to business ethics and their influence to non-financial performance indicators of the corporations. The paper also explores why and how the commitment to business ethics can contribute to the creation of corporate values that are eventually reflected in non-financial terms. The paper intends to give executives practical hands-on advice about the benefits of commitment to business ethics in a highly dynamic business environment today.

Suggested Citation

  • Vig, Silvija & Dumičić, Ksenija, 2015. "Testing Impact of Commitment to Business Ethics Influences Corporation Performance: Preliminary Research," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2015), Kotor, Montengero, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Kotor, Montengero, 10-11 September 2015, pages 375-382, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    • Handle: RePEc:zbw:entr15:183672
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/183672/1/52-ENT-2015-Vig-et-al-pp-375-382.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pascual Berrone & Jordi Surroca & Josep Tribó, 2007. "Corporate Ethical Identity as a Determinant of Firm Performance: A Test of the Mediating Role of Stakeholder Satisfaction," Journal of Business Ethics, Springer, vol. 76(1), pages 35-53, November.
    2. Kelly Martin & John Cullen, 2006. "Continuities and Extensions of Ethical Climate Theory: A Meta-Analytic Review," Journal of Business Ethics, Springer, vol. 69(2), pages 175-194, December.
    3. Treviño, Linda Klebe & Butterfield, Kenneth D. & McCabe, Donald L., 1998. "The Ethical Context in Organizations: Influences on Employee Attitudes and Behaviors," Business Ethics Quarterly, Cambridge University Press, vol. 8(3), pages 447-476, July.
    4. Amy J. Hillman & Gerald D. Keim, 2001. "Shareholder value, stakeholder management, and social issues: what's the bottom line?," Strategic Management Journal, Wiley Blackwell, vol. 22(2), pages 125-139, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Silvija Vig & Ksenija Dumicic, 2016. "Impact of commitment to business ethics to nonfinancial business performance," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 14(2), pages 165-181.
    2. Sebastian Goebel & Barbara E. Weißenberger, 2017. "The Relationship Between Informal Controls, Ethical Work Climates, and Organizational Performance," Journal of Business Ethics, Springer, vol. 141(3), pages 505-528, March.
    3. Shafer, William E., 2008. "Ethical climate in Chinese CPA firms," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 825-835.
    4. Anke Arnaud & Marshall Schminke, 2012. "The Ethical Climate and Context of Organizations: A Comprehensive Model," Organization Science, INFORMS, vol. 23(6), pages 1767-1780, December.
    5. Christof Miska & Günter K. Stahl & Matthias Fuchs, 2018. "The Moderating Role of Context in Determining Unethical Managerial Behavior: A Case Survey," Journal of Business Ethics, Springer, vol. 153(3), pages 793-812, December.
    6. Hsieh, Hui-Hsien & Wang, Yau-De, 2016. "Linking perceived ethical climate to organizational deviance: The cognitive, affective, and attitudinal mechanisms," Journal of Business Research, Elsevier, vol. 69(9), pages 3600-3608.
    7. Pekkan Nazmiye Ulku & Bicer Mehmet, 2022. "Ethical Climate’s Mediating Role on the Relationship Between Emotional Intelligence and Job Satisfaction," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 30(1), pages 115-132, March.
    8. Stacy H. Lee & Jung Ha-Brookshire, 2017. "Ethical Climate and Job Attitude in Fashion Retail Employees’ Turnover Intention, and Perceived Organizational Sustainability Performance: A Cross-Sectional Study," Sustainability, MDPI, vol. 9(3), pages 1-19, March.
    9. Agata Stachowicz-Stanusch & Aditya Simha, 2013. "An empirical investigation of the effects of ethical climates on organizational corruption," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(sup1), pages 433-446, June.
    10. Roland Kidwell & Franz Kellermanns & Kimberly Eddleston, 2012. "Harmony, Justice, Confusion, and Conflict in Family Firms: Implications for Ethical Climate and the “Fredo Effect”," Journal of Business Ethics, Springer, vol. 106(4), pages 503-517, April.
    11. KONISHI, Masaru & 小西, 大 & SAITO, Junyu, 2023. "Do firms consider stakeholder interests as a means to create shareholder value or as the ultimate goal? Evidence from Japanese dividend policies," Working Paper Series G-1-27, Hitotsubashi University Center for Financial Research.
    12. Yongqiang Gao & Jian Wu & Taïeb Hafsi, 2017. "The Inverted U‐Shaped Relationship between Corporate Philanthropy and Spending on Research and Development: A Case of Complementarity and Competition Moderated by Firm Size and Visibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(6), pages 465-477, November.
    13. Ala'aldin Alrowwad & Bader Yousef Obeidat & Ali Tarhini & Noor Aqqad, 2017. "The Impact of Transformational Leadership on Organizational Performance via the Mediating Role of Corporate Social Responsibility: A Structural Equation Modeling Approach," International Business Research, Canadian Center of Science and Education, vol. 10(1), pages 199-221, January.
    14. Tiago Melo, 2012. "Determinants of corporate social performance: the influence of organizational culture, management tenure and financial performance," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 8(1), pages 33-47, March.
    15. Berrone, Pascual & Gelabert, Liliana & Fosfuri, Andrea, 2009. "The impact of symbolic and substantive actions on environmental legitimacy," IESE Research Papers D/778, IESE Business School.
    16. Tiago Melo, 2012. "Slack‐resources hypothesis: a critical analysis under a multidimensional approach to corporate social performance," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 8(2), pages 257-269, June.
    17. Carlos Ferro-Soto & Luz Amparo Macías-Quintana & Paula Vázquez-Rodríguez, 2018. "Effect of Stakeholders-Oriented Behavior on the Performance of Sustainable Business," Sustainability, MDPI, vol. 10(12), pages 1-27, December.
    18. Tiago Melo & Alvaro Garrido‐Morgado, 2012. "Corporate Reputation: A Combination of Social Responsibility and Industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 19(1), pages 11-31, January.
    19. S. Duane Hansen & Benjamin B. Dunford & Bradley J. Alge & Christine L. Jackson, 2016. "Corporate Social Responsibility, Ethical Leadership, and Trust Propensity: A Multi-Experience Model of Perceived Ethical Climate," Journal of Business Ethics, Springer, vol. 137(4), pages 649-662, September.
    20. He Peng & Feng Wei, 2020. "How and When Does Leader Behavioral Integrity Influence Employee Voice? The Roles of Team Independence Climate and Corporate Ethical Values," Journal of Business Ethics, Springer, vol. 166(3), pages 505-521, October.

    More about this item

    Keywords

    Business Ethics; Commitment to Business Ethics; Corporate Performance; Non-financial Indicators;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:entr15:183672. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://www.entrenova.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.