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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
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    References listed on IDEAS

    as
    1. 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.
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    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)

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    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

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