For Research : Outcomes of Ethical Practices

In the past decade, ethical issues are getting extremely important because of the stakeholders’ concerns about ethical practice and the pressure of international regulations of ethical issues. The outcomes of ethical practice could result in different performances in varied industries. The management in an organization has noticed the importance of ethical issues in the company. The research found the positive relationship between ethical practice and financial performance (Spencer & Taylor, 1987).

Verschoor’s study showed the significant link between strong management commitments on ethics would result favorable corporate financial performance. Ethical practice is a crucial element for corporate performance. Firms’ ethical practices are related to corporate performance, reputation, and even existence. Some past research found a significant link between a management supports on controlling and emphasizing ethical behavior, it results favorable corporate performance, both financially and socially. Some of the researches point out there are some positive relationships between outcomes of ethical practice and performance. Paya and Krausz (1996) claimed the firms which are acting more ethically usually result better financial performances.

Goll and Rasheed (2004) believed that corporations practice ethical issues would achieve high standard of ethical moral. It will result a satisfied financial performance. It is obviously to tell that outcomes of ethical practice will affect corporate performance. The outcomes of ethical practice come from the implementation of ethical issues (Frederick, 1982). Ethical issues are containing employment practices, consumer protection, environmental protection, political involvement, and basic human rights (Frederick, 1991). This study will focus on the outcomes of ethical practices by examining each specific ethical issue.