Corporate ethical identity as a determinant of firm performance : a test of the mediating role of stakeholder satisfaction
AbstractIn this article, we empirically assess the impact of corporate ethical identity (CEI) on a firm’s financial performance. Drawing on formulations of normative and instrumental stakeholder theory, we argue that firms with a strong ethical identity achieve a greater degree of stakeholder satisfaction (SS), which, in turn, positively influences a firm’s financial performance. We analyze two dimensions of the CEI of firms: corporate revealed ethics and corporate applied ethics. Our results indicate that revealed ethics has informational worth and enhances shareholder value, whereas applied ethics has a positive impact through the improvement of SS. However, revealed ethics by itself (i.e. decoupled from ethical initiatives) is not sufficient to boost economic performance.
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Bibliographic InfoPaper provided by Universidad Carlos III de Madrid in its series Open Access publications from Universidad Carlos III de Madrid with number info:hdl:10016/6085.
Length: 55 p.
Date of creation: Nov 2007
Date of revision:
Publication status: Published in Journal of Business Ethics (2007-11) v.v. 76, p.35-53
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Web page: http://www.uc3m.es
Business ethics; Corporate ethical identity; Financial performance; Stakeholder satisfaction; Stakeholder theory;
Other versions of this item:
- Pascual Berrone & Jordi Surroca & Josep TribÃ³, 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.
- Pascual Berrone & Jordi Surroca & Josep A. Tribo, 2005. "Corporate Ethical Identity As Determinant Of Firm Performance: A Test Of The Mediating Role Of Stakeholder Satisfaction," Business Economics Working Papers wb053108, Universidad Carlos III, Departamento de Economía de la Empresa.
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