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Ethics builds reputation

Author

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  • Piero Mella
  • Patrizia Gazzola

Abstract

The objective of this study is to point out how behavioural ethics and reputation are linked and represent the conditions of existence for the corporate system, understood as a long-lasting organisation of individuals or institutions which produces outcomes for the external stakeholders. We think that ethics are pivotal in determining the success or failure of an organisation. They affect a company's reputation and help to define a business model that will thrive even in adversity. To show this link two theories are used: the firm interpreted as a social, or socio-technical, system, open to exchanges with the environment, and the firm as an open system, in its conditions of teleonomy, observed according to the model of the organisation as an efficient system of transformation (MOEST). Precisely because firms exist and operate within a given environment, ethics must signify organisational conduct, and the daily respect of human values allows the firm to achieve a coherent organisational reputation.

Suggested Citation

  • Piero Mella & Patrizia Gazzola, 2015. "Ethics builds reputation," International Journal of Markets and Business Systems, Inderscience Enterprises Ltd, vol. 1(1), pages 38-52.
    • Handle: RePEc:ids:ijmabs:v:1:y:2015:i:1:p:38-52
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    Cited by:

    1. Giovanna Gavana & Pietro Gottardo & Anna Maria Moisello, 2019. "What Form of Visibility Affects Earnings Management? Evidence from Italian Family and Non-Family Firms," Administrative Sciences, MDPI, vol. 9(1), pages 1-14, March.
    2. Piero MELLA & Patrizia GAZZOLA, 2015. "Capitalistic Firms as Cognitive Intelligent and Explorative Agents. The Beer’s VSM and Mella’s Moest Views," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 3(4), pages 645-674, December.

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