Abstract

This research addresses analyzing the effects of ethical management without rebate on financial performance in the pharmaceutical industry, where rebate is considered as a general practice. The study also analyzes the relations among ethical management, relationship quality, customer orientation and financial performance. For empirical analysis, 225 survey questionnaires were analyzed through PASW 18.0 and AMOS 18.0. The result of analysis showed that pharmaceutical companies’ ethical management level and ethical management compliance level of employees had a positive effect on relationship quality, and the relationship quality had a positive effect on customer orientation. The customer orientation also had a positive effect on financial performance. Consequently, ethical management is also required for enhancing financial performance in pharmaceutical industry. The results will encourage pharmaceutical companies to address ethical behavior without rebate.

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