Business Ethics Research Articles

EXPRESS: Buy! Buy! Buy!—How Multi-Level Marketing Companies Pressure Their Participants to Buy Their Products

Despite the popularity of multi-level marketing (MLM) companies and their ability to attract many distributors worldwide with the promise of an income opportunity, the financial outcomes for these participants are often unfavorable. Many distributors invest more money in internal products and business expenses than they earn. Drawing upon the professional and business ethics literature, this paper develops a conceptual framework to understand how organizational characteristics (collectively) create a pressure on distributors to overspend on internal products. The framework integrates legal, financial, and social dimensions, emphasizing the dual roles of MLM distributors as both victims and potential offenders. Utilizing this framework, the paper discusses the limited effectiveness of current safeguard policies in preventing the problematic effects of the MLM industry, including the operation of some MLMs as pyramid schemes. It proposes new directions for research on MLMs and other distinct areas within marketing and public policy, particularly addressing the broader category of deceptive income opportunity providers (DIOPs).

La influencia del dinero negro en las pymes. Puebla, México

The objective of this research is to understand the influence of black money on SMEs, to outline solutions to prevent and combat these illegal practices contributing to the strengthening of business responsibility and ethics. The methodology used is qualitative, based on the hypothetical deductive method applied in the field: the capital of the state of Puebla. The object of study is the influence of black money on SMEs. We consider black money to be money obtained illegally (drug trafficking, floor collection, clandestine marketing of fuels or any illicit activity) that comes from a legitimate source with the aim of “laundering” it, that is, disguising large amounts of cash as legal, which allows criminals to maintain control over their profits. The main finding is: 81% of SME owners are prone to use black money for the operation of their business.

Exploring Business Morals in the Cutting-Edge Corporate World

In the modern corporate world, business ethics has become a critical factor influencing the sustainability and success of organizations. With the rise of globalization, technological advancements, and increasing demands for corporate accountability, companies face complex ethical challenges that require strategic navigation. This article explores the growing importance of business ethics, focusing on key challenges such as globalization, data privacy, diversity, and profit pressures. It further outlines the role of leadership, corporate social responsibility (CSR), and transparency in maintaining ethical standards. Through case studies and real-world examples, the article provides a framework for how businesses can navigate ethical dilemmas, balance profitability with social responsibility, and foster long-term trust with stakeholders. Keywords : Corporate Ethics, Sustainability, Social Responsibility, Transparency, Stakeholder Engagement, Corporate Governance, Ethical Leadership, Fair Trade, Diversity and Inclusion, Data Privacy, Artificial Intelligence Ethics, Consumer Protection, Environmental Stewardship, Profit vs. Purpose, Whistle blower Protections, Corporate Accountability, Supply Chain Ethics, Workplace Culture, Innovation Ethics, Regulatory Compliance

MANAGING COMPETITIVENESS AND RISK: THE EFFECT OF SHARIAH COMPLIANCE AND THE CENTRAL ROLE OF REPUTATION AND INVESTMENT EFFICIENCY

Business practices, especially in Muslim-majority countries, are more influenced by religious values. Therefore, CSR is less relevant or relatively limited to be implemented as an accountability mechanism, so it is advisable to consider religious values as an alternative approach to business ethics. In this context, adopting Sharia Compliance (SC) is seen as one of the dimensions of accountability, a form of business ethics implementation, and a manifestation or proxy of business ethics other than CSR. Therefore, based on the theory of business ethics, this study develops and tests a trivariate relationship model to explain how reputation and investment efficiency play a role in the relationship between SC and competitiveness and risk as proxied by the cost of equity capital. Using 825 observations, the estimation results indicate a partial mediation effect of reputation in the relationship between SC and risk (cost of equity capital). However, there is no mediation effect in the relationship between SC and competitiveness. Other estimation results indicate a partial mediation effect of investment efficiency in the relationship between SC and the cost of equity capital and competitiveness. This indicates that investment efficiency can provide additional totals in the relationship between SC and the cost of equity capital and competitiveness. However, the mediation effect of investment efficiency in the relationship between SC and SC competitiveness produces a total negative effect. Therefore, it can be said that the mediation of investment efficiency in the relationship between SC and competitiveness is an inconsistent or competitive mediation model. Overall, the partial mediation effect of reputation and investment efficiency indicates (1) there are other mediators (hidden mediators) in the relationship between SC and equity capital costs and competitiveness, (2) SC in reducing equity capital costs and producing competitiveness, among others, by building a good reputation and utilizing positive NPV investment opportunities.

Does Price Personalization Ethically Outperform Unitary Pricing? A Thought Experiment and a Simulation Study

AbstractMerchants often use personalized pricing: they charge different consumers different prices for the same product. We assess the ethicality of personalized pricing by generalizing and extending an earlier model by Coker and Izaret (Journal of Business Ethics 173:387–398, 2021) who found that price personalization ethically outperforms unitary pricing. Using a simulation analysis, we show that these results crucially depend on the choice of parameters and do not hold universally. We further incorporate additional sources of marginal cost into the utility function that will likely arise from personalized pricing. These include the expectation that personalized pricing is widely considered unfair by consumers who prefer that all consumers are charged the same price (unitary pricing), and that firms often approximate the consumers’ willingness-to-pay in ways that may raise negative sentiments among consumers who feel that their privacy is breached. By extending our model with disutility from unfairness perception and disutility from surveillance aversion, we demonstrate that personalized pricing is quickly outperformed by unitary pricing under social welfare functions that tend to prioritize total utility (utilitarianism and prioritarianism), whereas personalized pricing can ethically outperform unitary pricing under social welfare functions that tend to prioritize equality (egalitarianism and leximin). Our findings illustrate various intricacies and dynamics regarding the circumstances under which personalized pricing can be considered ethical.

Analisis Etika Bisnis Islam dalam Transaksi Jual Beli Online di Indonesia

The development of the world of technology and increasingly advanced internet networks has an impact on people's consumption techniques, thus giving rise to new shopping channels, namely online. People's need for fast information is very easy, can be accessed by anyone, anytime and anywhere. Internet technology has a very big effect on trade or business. Can access information on goods from anywhere, both from prices, specifications, and making purchase transactions. The purpose of this study is to analyze Islamic business ethics in online buying and selling transactions in Indonesia. This research approach collects data through literature studies, which involve reading literature from various sources including books, journals and reports using qualitative and deductive approaches. The findings in this study are that the application of Islamic business ethics in online buying and selling transactions in Indonesia has not been fully implemented, because there are still some sellers who violate the principles of Islamic business ethics. One example is that there are still some sellers who provide escorts or summaries so that the goods received by the buyer do not match the specifications, the seller does not respond to goods complained about by the buyer, and there are still sellers who do not accept returns.

Special issue of the Asian journal of business ethics on global survey of business ethics (GSBE) reports 2022–2024 from Asia, Australia, and Russia: Philippines

Special issue of the Asian journal of business ethics on global survey of business ethics (GSBE) reports 2022–2024 from Asia, Australia, and Russia: Philippines

Competitive advantages of transparency: How anti-corruption initiatives can drive innovation and growth in the energy sector

This review examines the role of anti-corruption initiatives in driving innovation and growth within the energy sector, with a particular focus on emerging markets. As global demand for energy continues to rise, the imperative for ethical and transparent business practices grows stronger. This study synthesizes current literature on anti-corruption measures, transparency initiatives, and their impacts on competitive advantage in the energy industry. Through a comprehensive analysis of case studies and empirical research, we identify several key mechanisms through which transparency can foster innovation and drive growth. These include enhanced stakeholder trust, improved access to capital, attraction of top talent, and the creation of an ethical corporate culture that encourages innovation. Our findings suggest that successful anti-corruption initiatives in the energy sector require a nuanced understanding of local contexts, strong leadership commitment, and the strategic use of technology. The review also highlights the potential of open data platforms and blockchain technology in facilitating transparency and compliance. By identifying key factors contributing to successful anti-corruption efforts and their subsequent impacts on innovation and growth, this study provides valuable insights for policymakers, industry leaders, and researchers working towards a more transparent and innovative energy sector. Future research directions are proposed to further explore the long-term impacts and scalability of these initiatives across different market contexts.

The Impact of Sustainability and Environmental Ethics in Product Marketing Campaigns: A Qualitative Study with a Sociological and Economic Approach

This study aims to examine the impact of sustainability and environmental ethics on consumer loyalty, brand perception, and economic resilience within product marketing campaigns. Driven by the increasing consumer demand for ethical business practices, this research integrates sociological and economic perspectives to understand how sustainable marketing shapes consumer-brand relationships and offers competitive advantages. Employing a qualitative methodology based on a comprehensive literature review, the study synthesizes data from recent research to provide a nuanced analysis of the socio-economic implications of sustainable marketing. The findings reveal that sustainability-focused brands not only foster long-term consumer loyalty but also experience enhanced brand equity and profitability due to a stronger alignment with consumer values. Furthermore, the research highlights the importance of transparency, which reinforces consumer trust and solidifies brand credibility in markets sensitive to greenwashing concerns. The study underscores the Theory of Planned Behavior and Brand Equity Theory as foundational frameworks for interpreting consumer responses to ethical marketing. These insights contribute to both academic discussions and practical applications, providing a roadmap for brands to leverage sustainability as a core strategy. The research concludes that sustainable marketing is a transformative approach that fosters socio-economic resilience, positioning brands for sustained success in eco-conscious markets

Peran Etika Bisnis dalam Perusahaan Bisnis di Era Globalisasi

When it comes to establishing relationships with others in the business world, ethics plays an important role. Business ethics plays an important role in determining the success or failure of a company. Practicing good corporate ethics can also improve communication and foster mutual trust between colleagues. In running a company, you have to focus on two things. The first is aware of and considers the needs and emotions of others. The second reason is to avoid avoiding other people, because corporate ethics vary widely between cultures and countries. The purpose of writing this article is to find out how Business Ethics in Business Companies in the Globalization Era. The author of this article uses observation techniques as a research strategy, as well as library research methods. Based on the discussion in this article, the level of trust that each member of the business community has with each other is influenced by business ethics. There are a variety of stakeholders impacting each other, including businesses, suppliers and end users. Each of these components must uphold ethical standards so that the foundation of trust is well maintained. Keywords: Bussiness,Ethics, Globalization, Company.

Artificial Aesthetics and Ethical Ambiguity: Exploring Business Ethics in the Context of AI-driven Creativity

Artificial Aesthetics and Ethical Ambiguity: Exploring Business Ethics in the Context of AI-driven Creativity

Corporate Social Responsibility and Business Ethics: Case Study of TATA Group from India

Corporate Social Responsibility (CSR) has increasingly become a vital component of the global business framework, especially within emerging economies such as India (Maheshwari M et al, 2024). This study delves into the relationship between CSR and business ethics by examining case studies of Indian companies, illustrating how these firms address critical elements of corporate governance and their impact on societal well-being. The analysis of the Tata Group offers an insightful look at how Indian corporations have embraced CSR and ethical practices to improve their brand image, support rural and community development, and foster skill development—all while maintaining long-term business sustainability (Tripathi S. K et al 2024). The study's conclusions highlight the fact that, for Indian businesses, corporate social responsibility (CSR) and business ethics go far beyond simple compliance to become crucial components of strategic business management. In addition to advancing society, businesses that successfully integrate CSR into their operations also strengthen their competitive advantage and long-term sustainability. This case study offers important insights for companies around the world, emphasizing how crucial it is to uphold ethical governance and incorporate social responsibility into corporate objectives.

The Illusion of Grandeur: Parallels Between the Great Gatsby and We Work’s Rise and Fall

This paper explores the striking parallels between F. Scott Fitzgerald's The Great Gatsby and the real-life case of WeWork under CEO Adam Neumann. The analysis demonstrates how literature can provide valuable insights into contemporary business phenomena by examining themes such as illusion versus reality, the pursuit of unattainable dreams, and the eventual collapse of facades. The comparison underscores the timeless relevance of literary narratives in understanding and interpreting real-world scenarios, particularly in the context of business ethics, leadership, and corporate governance.

Etika Bisnis dalam Akuntansi Menurut Perspektif Surat Al-Baqarah Ayat 282

Sharia accounting is no longer something new nowadays. In sharia accounting, there is a cleanup of assets as a responsibility in the form of a financial report on the use of funds. However, the facts in the field are that there are many cases in the field related to fraudulent transactions in accounting reports which can cause losses to many parties. For example, PT KAI, Jiwasraya, Garuda Indonesia, etc. Of course, this is not in line with Islamic business ethics which always pay attention to the benefit of all parties. In Surah al-Baqarah verse 282 also contains values ​​related to accounting principles, namely accountability, justice, truth and honesty. For this reason, in this research the researcher used a qualitative approach with a library study method and utilized information sources from the internet. With the aim of exploring and providing solutions regarding abuses of accountability when related to Islamic business ethics based on the perspective of al-Baqarah verse 282. The result is in Surah al-Baqarah verse 282 which includes the principles of accountability, justice and truth. Therefore, this verse can be implemented in business because it is important for companies to implement sharia accounting which is based on the values ​​contained in this verse, so that they can produce healthy and responsible financial reports in accordance with Islamic business ethics.

A new approach to business ethics education: Virtual reality-based flipped learning

Paying attention to business ethics and educating ethical leaders and employees can impact organizational performance. Effective professional ethics education and learning can prevent administrative corruption, embezzlement and fraud in organizations. On the other hand, the development of digital technologies has created transformations in educational processes and methods. Evaluating the effectiveness of innovative teaching methods will greatly help the learning process of individuals and educational planning of business schools. Flipped learning is an educational approach in which students learn about course content before class. Accordingly, the aim of this research is to evaluate the impact of virtual reality (VR)-based flipped learning compared to the traditional method of teaching business ethics. This study was applied and quasi-experimental. Among business students of Shiraz University, 135 people were randomly divided into three groups. The first experimental group underwent training with the flipped learning method based on VR and the second experimental group underwent training with the traditional method and the third group was the control group. The control group didn't receive training and was selected only for the purpose of comparison with experimental groups. Pretest and posttest designs were used and the results of the three groups were compared using the Tukey test. The results showed that the two groups that received business ethics education had a significant difference compared to the control group. An important finding of this study revealed that among the two teaching methods, VR-based flipped learning had a greater impact on students' business ethics compared to the traditional teacher-centered approach. Accordingly, university managers and business ethics course instructors can facilitate the learning process using VR-based flipped learning. Designing simulation software for ethical scenarios is also a suitable solution for teaching business ethics.

Mitigating Investor Reactions to Financial Misconduct: The Moderating Roles of Firm Commitment Cues

AbstractCorporate financial misconduct has garnered increased interest in business ethics research. Although prior research has provided insights into the consequences of financial misconduct, our understanding of why investors react differently to similar instances of misconduct, especially in emerging markets, remains limited. In this study, we first argue that direct information on the severity of misconduct is the primary basis for investors’ evaluations. Next, drawing on screening theory, we theorize that in contexts characterized by high information asymmetry, indirect information about existing firm commitment cues plays a vital screening role by demonstrating the firm’s legitimacy and capability. Subsequently, we develop a tripod framework that integrates the social, market, and strategy dimensions as firm commitment cues that serve as fundamental screening mechanisms to mitigate the adverse effect of misconduct severity on investor reactions. We use a sample of 344 Chinese listed firms that engaged in financial misconduct during 2009–2019 and find that greater misconduct severity results in more negative investor reactions. However, this negative relationship is weakened when the firm demonstrates stronger social and strategy commitments but not stronger market commitment.

Racial Justice Without Character: Business Ethics, Diversity Training, and Distributed Cognition

Racial Justice Without Character: Business Ethics, Diversity Training, and Distributed Cognition

BetterFuture Co. and its CO2 Footprint: A Case to Learn About ESG (Environmental, Social and Governance)/GHG (Greenhouse Gas)/CO2, Compliance, and SMART Goal Setting

The case study delves into the complex issue of CO2 footprint from three distinct viewpoints: sustainability, legislative, and managerial. Each perspective offers unique insights into the challenges and opportunities of mitigating greenhouse gas emissions using scope 1, 2, and 3 data. From a sustainability viewpoint, students are encouraged to explore the concept of CO2 footprint within the broader context of ESG considerations. Key questions delve into understanding sustainability frameworks, assessing the impact of CO2 emissions on ecosystems and communities, and exploring strategies for carbon footprint reduction aligned with sustainability goals. From the legislative perspective, students examine the regulatory landscape governing CO2 emissions. Students learn how legal frameworks shape corporate behavior by studying global sustainability goals such as the UN Sustainable Development Goals (SDGs), the Global Reporting Initiative (GRI), and national legislation. Discussion questions focus on analyzing the effectiveness of existing regulations, identifying gaps, and proposing regulatory strategies to incentivize carbon reduction. The managerial perspective emphasizes decision-making and goal-setting within organizations. Students explore how managers can leverage data on CO2 footprint to set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for departments or individuals. This involves understanding the role of carbon accounting, evaluating trade-offs in sustainability initiatives, and exploring best practices in integrating sustainability into organizational strategy. The case encourages critical thinking and data analysis, allowing educators to pose additional questions based on student interests and course objectives. The rich dataset allows for extensive exploration beyond the core questions, facilitating interdisciplinary learning across various courses. Ultimately, the case is a versatile teaching tool that can be applied to courses focusing on sustainability, environmental studies, business ethics, managerial decision-making, and public policy. It equips students with the knowledge and skills to navigate the multifaceted challenges of reducing their CO2 footprint while advancing sustainable practices within organizations and society.

Kuit: An Enterprise's Commitment to Sustainability through Technological Development

This article is a case study that aims to show how Kuit, a social enterprise, addresses the challenge of technological management while meeting its social, environmental and economic business objectives. The study examines innovation through technological development as part of a business strategy to promote ethical and sustainable business practices, which are focused on the health and well-being of people through the production and distribution of kombucha. The relevance of the case study lies in showing the technological management strategy implemented by the founders of Kuit, which has led them to a process innovation and a patent application. This innovation has been recognized by the Secretariat of Innovation, Science and Technology of the State of Jalisco, with Kuit being one of the five finalists for the 2021 Jalisco Innovation Award. Innovation has allowed Kuit to be a sustainable company both technically and financially, fulfilling its social and environmental mission.

The Influence of Business Ethics and Diversity on ESG Disclosure: Empirical Evidence from Indonesian Firms

This study examines the impact of corporate governance mechanisms, board characteristics, and ethical leadership on Environmental, Social, and Governance (ESG) performance in Indonesian companies. The analysis investigates how board ethics, independence, tenure, ownership structure, and other governance factors influence ESG scores. The findings reveal that board ethics and independence significantly improve ESG performance, supporting the role of ethical leadership and resource dependence theory in shaping corporate sustainability. Additionally, the study highlights the role of institutional ownership in driving ESG outcomes, particularly in emerging markets. Cultural factors, such as board culture, also contribute to the variability in ESG performance, suggesting the importance of aligning corporate governance practices with local values and global sustainability standards. The results have important theoretical implications, extending corporate governance theories to the context of developing economies. Practically, the findings provide insights for policymakers, corporate leaders, and investors to enhance ESG performance through effective governance reforms and ethical leadership. This study offers a significant contribution to the growing literature on ESG in emerging markets and provides a foundation for future research on corporate sustainability in different institutional settings.