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Article
Publication date: 1 June 2004

Goran Svensson and Greg Wood

The topic of this paper focuses on proactive versus reactive business ethics performance in the marketplace. The internal perception of a corporation and the external perception…

6374

Abstract

The topic of this paper focuses on proactive versus reactive business ethics performance in the marketplace. The internal perception of a corporation and the external perception of the same corporation are used as generic determinants of business ethics performance. In turn, they are underpinned by evolutionary and contextual issues in the marketplace. The authors provide a generic conceptual framework of proactive and reactive business ethics performance. Case illustrations underpin the positives and negatives of proactive and reactive business ethics in the marketplace. A profile analysis process of proactive and reactive business ethics performance is also outlined. The gap between the internal and external perceptions of a corporation’s actions becomes crucial to achieve successful business ethics performance in the marketplace. Therefore, a corporation’s current business ethics performance should always be regarded as an on‐the‐spot‐account that is either proactive or reactive. An important insight of this research is that business ethics performance requires the ongoing re‐connection with reality by corporations.

Details

Corporate Governance: The international journal of business in society, vol. 4 no. 2
Type: Research Article
ISSN: 1472-0701

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Article
Publication date: 13 April 2012

Luu Trong Tuan

This investigation into consumer goods manufacturing companies in Vietnam seeks to discern if such constructs as corporate social responsibility (CSR) and ethics act as…

2017

Abstract

Purpose

This investigation into consumer goods manufacturing companies in Vietnam seeks to discern if such constructs as corporate social responsibility (CSR) and ethics act as antecedents for brand performance with the mediating role of integrated performance measures.

Design/methodology/approach

A total of 387 responses reverted from self‐administered structured questionnaires despatched to 1,452 middle level managers were dissected via ANOVAs and structural equation modelling (SEM).

Findings

From the findings emerged the interconnections between ethics of justice and legal CSR/economic CSR. Ethics of care, on the other hand, tends to nourish ethical CSR, which in turn positively impact performance measurement integratedness. The findings also paved the path from performance measurement integratedness to high brand performance.

Originality/value

From the results of the study, the insight into the interconnection pattern of brand performance and its antecedents highlights the magnitude of CSR and ethics training program as well as the adoption of integrated performance metrics in optimizing brand performance in consumer goods manufacturers in the Vietnamese market.

Article
Publication date: 9 March 2020

Yves-Rose Porcena, K. Praveen Parboteeah and Neal P. Mero

Empirical evidence concerning the relationship between diversity and firm performance continues to produce mixed results that are context-dependent (Guillaume et al., 2017)…

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Abstract

Purpose

Empirical evidence concerning the relationship between diversity and firm performance continues to produce mixed results that are context-dependent (Guillaume et al., 2017). Additionally, little is known about the relationship between workplace diversity management and corporate ethics and whether diversity management is a contextual factor to consider in ethics research. This study assesses whether diversity management's contributions to firm performance are maximized through its effects on the firm's ethical processes. This paper examines three manifestations of diversity management (diversity recruitment, diversity staffing, and valuing diversity) and their relationship with firm performance as mediated by internal and external ethics.

Design/methodology/approach

The study used a sample from the Fortune 500 list of companies. The variables were constructed using several relevant indicators and applied to archival data collected from corporations' websites. The hypotheses on the relationship among diversity management, corporate ethics, and firm performance were tested using regression from the data gathered on 109 firms.

Findings

The analysis indicated that diversity management relates to both aspects of corporate ethics (internal and external ethics) but that only external ethics relate to firm performance. Results also found that external ethics partially mediate the relationship between diversity management and firm performance.

Research limitations/implications

There are limitations to using corporate websites as sources of data. Furthermore, the research design assumed that diversity is an antecedent of ethics. Nevertheless, the findings convincingly demonstrate that diversity management has a strong positive relationship with both aspects of corporate ethics. Recommendations for further research are offered.

Practical implications

The paper shows the value of diversity management and its impact on corporate ethics. Knowing that diversity management efforts contribute positively beyond their intended purpose may encourage managers to continue or implement such efforts, which could lead to more diverse and ethical workplaces and increased firm performance.

Originality/value

The paper addresses critical gaps in research and responds to repeated calls for studies integrating the business case for workplace diversity with its moral imperative (Alder and Gilbert, 2006; van Dijk et al., 2012; Yang and Konrad, 2011). The paper also provides evidence of a link from diversity management to firm performance through external ethics.

Details

Management Decision, vol. 59 no. 11
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 8 April 2022

Edi Suandi, Herri Herri, Yulihasri Yulihasri and Syafrizal Syafrizal

This paper aims to investigate the influence of Islamic marketing ethics and convergence marketing on competitive advantage and bank performance.

1006

Abstract

Purpose

This paper aims to investigate the influence of Islamic marketing ethics and convergence marketing on competitive advantage and bank performance.

Design/methodology/approach

This study is based on a survey of 204 Indonesian branch managers from the Islamic banking industry. Results were produced with the partial least square approach.

Findings

Results revealed that Islamic marketing ethics and convergence marketing have sufficient confidence to have significant influences on competitive advantage, producing a positive association with a competitive advantage. However, Islamic marketing ethics and convergence marketing did not influence bank performance directly. Competitive advantage positively mediated the relationship. Furthermore, organizational digital literacy did not moderate the relationship between convergence marketing and bank performance.

Research limitations/implications

This study contributes to the conceptualization of convergence marketing and the identification of its effects on competitive advantage and bank performance. The identification of convergence marketing in this dissertation contains dimensions of mobile, security, foreign currency, holistic and interactivity as different aspects from the steps of Islamic banks to digitize their services to the internet in a single application. The results also indicate that convergence marketing does not have a direct effect on bank performance but has an indirect effect through competitive advantage. Convergence marketing must first create a bank advantage over its competitors to have a good effect on bank performance.

Practical implications

This study offers many opportunities for Islamic bank marketers to improve performance. Many Islamic banks currently do not implement Islamic marketing ethics consistently and thoroughly. The results of this study encourage Islamic banks by showing that the more intensive and consistent they are in implementing Islamic marketing ethics, the better their competitive advantage and the higher the performance. This effort can be done in various ways, such as offering tariffs/ratios of services transparently to customers, not exaggerating the benefits of the products offered to distort customer expectations, building brands that can strengthen customer confidence in Islamic banks and only offering products and services with high-quality standards.

Limitation and future research

This study uses a sample of Islamic banking so that it is still limited to certain types of banks. Future research needs to conduct model testing in different contexts such as conventional banking. In addition, further research needs to use the capabilities or capabilities of bank IT as a moderator in the effect of convergence marketing on bank performance. Future research also needs to control for more variables and use a scale that is more complex than the binary scale (for example, the percentage of share ownership or territory in the scope of the province or district/city).

Originality/value

This research views the Islamic bank competitiveness through the lenses of Islamic ethical theory and convergence marketing theory.

Book part
Publication date: 2 September 2016

Christophe Revelli

The aim of this chapter is to propose a critical analysis of socially responsible investing (SRI) through debate and reconstruction. Our goal is therefore to try to understand how…

Abstract

Purpose

The aim of this chapter is to propose a critical analysis of socially responsible investing (SRI) through debate and reconstruction. Our goal is therefore to try to understand how the definition of ethics in finance has steered SRI towards a financial approach where ethics is guided by finance.

Methodology/approach

This chapter proposes a two-point approach consisting of a meta-debate and development perspectives. Each approach is divided into three debates (ideological and philosophical, scientific and practical), which are interconnected.

Findings

The chapter concludes that the debate on mainstream SRI is necessary but should be re-discussed, as it is preventing in its current form the concept from developing and being grounded in real ethical values, sacrificing the individual ethics that should be driving investing decisions.

Originality/value

The chapter proposes to rethink the paradigm around SRI through a conceptual framework that re-inserts finance within ethics, where non-financial performance and impact investment should be at the centre of the scientific debates, leading to an SRI based on exclusion, the consideration of controversies and social impact measurement.

Details

Finance Reconsidered: New Perspectives for a Responsible and Sustainable Finance
Type: Book
ISBN: 978-1-78560-980-0

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Article
Publication date: 31 August 2022

Oumeima Kacem and Sana El Harbi

This paper has a triple objective: first, to investigate the effect of the adoption of ethics codes on bank performance, second, to analyse the role played by the risk committee…

Abstract

Purpose

This paper has a triple objective: first, to investigate the effect of the adoption of ethics codes on bank performance, second, to analyse the role played by the risk committee (RC) effectiveness in improving bank performance and finally, to assess the indirect role that the implementation of ethics codes exerts on the latter relationship.

Design/methodology/approach

The research questions are examined using an international sample of large banks worldwide from 2006 to 2017, applying the dynamic generalized method of moments (GMM) model for panel data.

Findings

The authors find that risk management committee size and independence have a positive and significant effect on bank performance. This highlights the importance of the risk governance function in enhancing bank performance. Most importantly results reveal that although larger RC tends to improve bank performance, this linkage is less strong when adopting ethical codes. They also find that the adoption of ethical codes by banks positively affects the relationship between the functioning of RC and performance.

Originality/value

Although it is well known that risk management, business ethics and performance are interrelated, there is no research that has dealt with this question.

Details

Managerial Finance, vol. 49 no. 2
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 1 December 2023

Wan Ahmad Fauzi Wan Husain, Mohamad Reeduan Mustapha, Yudi Fernando and Siti Aisyah Ahmad Zailani

The purpose of this study is to propose a world-class good governance ethics framework that leads to better corporate performance. ethics among managers, executives and members of…

Abstract

Purpose

The purpose of this study is to propose a world-class good governance ethics framework that leads to better corporate performance. ethics among managers, executives and members of the board of directors working in public-listed companies brings grave concern because of the increasing number of criminal acts reported by the Security Commission of Malaysia.

Design/methodology/approach

This study introduces a world-class good governance ethics framework for curbing criminal acts in public-listed companies in Malaysia. This study used a mixed method to gather data, and the methods used are appropriate for answering the research questions based on the World-Class Good Governance Ethics framework.

Findings

The finding of this study reveals high expectations for a corporate organization to improve individual and team performance while undertaking their corporate responsibilities, and a matter of choice, to adopt world-class good governance ethics in their policies and practices.

Practical implications

This study could be a reference for corporate management to regulate policies monitoring management's and employees' conduct at the workplace. This study's theoretical and practical significance would guide the stakeholders in corporate management to regulate governance policies based on the right ethical values and promote personalities with high integrity in management conduct.

Originality/value

This study promotes a world-class good governance ethics framework in curbing criminal acts for better corporate performance. This new framework is formulated based on the concept of a caliph and other essential elements envisaged by the Quranic verses.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 7 July 2020

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

884

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

This research paper concentrates on the relationship between diversity management, corporate ethics, and commercial performance in a sample of Fortune 500 companies. Diversity management was found to positively influence internal ethics, yet strategically pursuing internal ethics did not increase commercial performance. Implementing a program of external ethics did, on the other hand, enhance commercial performance, and diversity management did boost external ethics – as seen, for example, in the charitable activity of employees. A thoughtful ethical stance can therefore be a profitable asset once companies consistently invest in initiatives such as ethics training.

Originality/value

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Details

Strategic Direction, vol. 36 no. 8
Type: Research Article
ISSN: 0258-0543

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Article
Publication date: 1 April 2019

Ahmad Saiful Azlin Puteh Salin, Zubaidah Ismail, Malcolm Smith and Anuar Nawawi

The purpose of this paper is to examine the relationship between corporate governance and company performance and how a board’s ethical commitment can influence this relationship…

2072

Abstract

Purpose

The purpose of this paper is to examine the relationship between corporate governance and company performance and how a board’s ethical commitment can influence this relationship. Prior studies documented mixed evidence on the corporate governance and corporate performance relationship, which can be due to the influence of a board’s ethical commitment and will shape the corporate governance mechanism in the company and, in turn, influence performance.

Design/methodology/approach

This study collected data for two years, i.e. 2013 and 2014, from the biggest 500 Malaysian companies listed in the stock exchange. Corporate governance is measured based on the requirements of the Malaysian Code of Corporate Governance (MCCG), while a board’s ethical commitment is measured based on the MCCG and various international best practices. Corporate performance is measured based on return on equity, return on assets, net profit margin, market-to-book value and TobinQ.

Findings

A board’s ethical commitment was found to be significant in increasing the strength of the relationship between corporate governance and corporate performance. The findings are robust to the alternative performance measurements and lagged one-year corporate performance.

Research limitations/implications

This paper provides further evidence on the importance of ethical practices to improve corporate environment and, hence, sustain a company’s performance. This study, however, was conducted on only large companies with a limited data collection period.

Practical implications

This study provides an indicator that the policymaker and regulatory authorities need to double their efforts in promoting and encouraging a board of directors to take a bold step in improving its ethical culture. Shareholders and investors need to use their power and rights to demand the company to improve their governance and ethical practices.

Originality/value

This study is original, as it measures a board’s ethical commitment from various sources of local and international best practices such as Malaysia, Australia, Canada, Norway, South Korea, Singapore, Sweden, Turkey, the UK and the USA. It also contributes to the literature and theoretical understanding of the interaction between a board’s ethical commitment and corporate governance on corporate performance, particularly in developing countries like Malaysia, which is scarce in the literature.

Details

Journal of Financial Crime, vol. 26 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 1 February 2005

Göran Svensson and Greg Wood

The objective of this research is to introduce and describe a conceptual framework of business ethics in TQM.

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Abstract

Purpose

The objective of this research is to introduce and describe a conceptual framework of business ethics in TQM.

Design/methodology/approach

In order to highlight the concepts proffered, a case study in the Swedish retail industry was conducted. The data that underpin the case illustration have been collected as part of a larger research project in the Swedish retail industry. This paper draws on and reports the findings from one case of the larger research project that has been used in this instance to inform the role of business ethics in TQM. The case illustration is based on a qualitative approach. The data were collected through interviews with leading executives in the corporation,

Findings

Both time and context become crucial parameters to manage the quality and spectrum zones of core values in the marketplace. In fact, the necessary quality management of business operations has to be performed without delay, minimising the damage. Therefore, the importance of business ethics becomes evident in TQM. In the long run, TQM will not succeed in business operations unless business ethics is considered in the core values to support the techniques and tools applied.

Research limitations/implications

The model has only been tested by relating it to one case in the Swedish retail industry.

Practical implications

TQM is dependent on the contextual and evolutionary issues in the marketplace. Therefore, TQM should be interpreted as a continuous process. The importance of continuously monitoring the spectrum zones and qualities of core values in TQM should not be under‐estimated. Therefore, business ethics should always be present in TQM. Further research would benefit from other case studies of how business ethics benefits TQM. Therefore, the dynamics of business ethics in TQM should be further explored.

Originality/value

Business ethics needs to be an essential consideration of any TQM process. This paper examines how an organisation can incorporate this task.

Details

The TQM Magazine, vol. 17 no. 1
Type: Research Article
ISSN: 0954-478X

Keywords

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