The Role of Corporate Ethical Management on Trade Relationship Trust and Commitment: B2B

Shiruo Fei,Changhyun Jin,Chanho Kwon

doi:10.3390/su13095290

Shiruo Fei, Changhyun Jin + Show 1 more

Open Access

https://doi.org/10.3390/su13095290

Copy DOI

Journal: Sustainability	Publication Date: May 9, 2021
Citations: 2	License type: CC BY 4.0

Affiliation: Kyonggi University, Soongeui Women's College

Abstract

This study investigated whether three components of ethical management—awareness, operation, and practice—have a positive effect on corporate trust and relationship commitment in business-to-business (B2B) transactions. The study examined whether the trust formed in transactions, or relationship commitment, affects the establishment of long-term oriented relationships between companies. Further, it also aimed to determine the extent to which the authenticity of ethical management serves as a moderator that allows ethical management to influence outcome variables. The study’s sample comprised personnel (top management, management, and staff) from small- and medium-sized companies that transact with companies that mainly conduct B2B transactions. An empirical analysis was performed using data from 1323 returned questionnaires. Structural equation modeling was performed to test the hypotheses. The results showed that authenticity and the corporate ethical management components did not have moderating effects when they affected trust; however, in relationship commitment or a long-term oriented relationship, authenticity has a moderating effect when trust and commitment affect the long-term oriented relationship. This study’s empirical results contribute valuable data to the literature, as it is based on a survey conducted on actual personnel members of companies in B2B relationships.

Highlights

As ethical management in general is part of the culture that is practiced in social common notions, companies’ ethical management can create a positive image among potential customers
The results showed that authenticity and the corporate ethical management components did not have moderating effects when they affected trust; in relationship commitment or a long-term oriented relationship, authenticity has a moderating effect when trust and commitment affect the long-term oriented relationship
This study examined the concepts of ethical management, trust, relationship commitment, and long-term relationships

Summary

Introduction

As ethical management in general is part of the culture that is practiced in social common notions, companies’ ethical management can create a positive image among potential customers. Companies can identify ethical management practices internally and promote the development of their companies based on these management practices. To improve competitiveness in both the internal and external environments of the companies, ethical management should become a core task and the top priority value of the corporate organizational culture [1,2,3]. More revenue can be generated through ethical corporate management in terms of aspects such as customer satisfaction and performance, and ethical management is undeniably crucial for a company’s long-term survival and growth strategy [4]. Over time, a new theory has emerged—profitgenerating companies have a role of social responsibility and obligation and that companies acting ethically would generate more revenue and perform better [5,7]

Objectives

Methods

Results

Conclusion