The ethical value disclosure index from the lens of SDG 16 and institutional theory

Purpose - This paper aims to describe the development of the ethical values disclosure index (EVDi) for Malaysian companies using the Sustainable Development Goal (SDG) 16 and isomorphism perspectives. Design/methodology/approach - This paper reports an inclusive examination of international and national guidelines in relation to the code of ethics and ethical values in making the disclosure. Findings - The final 10 categories and 40 items under review have been developed in an instrument, the proposed EVDi, for measuring the commitment undertaken by companies in communicating ethical values information to stakeholders. Research limitations/implications - The EVDi may fulfil the function of good governance to inculcate ethical work culture throughout companies. Social implications - Effective ethical values in communication may reduce the likelihood of illegal activities and cost of acting unethically in organisations. Originality/value - The value of this paper is its approach of using the isomorphism concept from the institutional theory to address the SDG 16 by developing the EVDi. The new index incorporates core elements of moral values adapted mainly from the professional bodies that regulate the accounting profession and other related organisations. The index is an initiative used to measure companies' commitment to promoting ethical values through disclosure. The efforts to measure the level of commitment supporting the SDG 16 promote effective, accountable and transparent institutions at all levels.