case study related to business ethics

McCombs School of Business

• Español ( Spanish )

Videos Concepts Unwrapped View All 36 short illustrated videos explain behavioral ethics concepts and basic ethics principles. Concepts Unwrapped: Sports Edition View All 10 short videos introduce athletes to behavioral ethics concepts. Ethics Defined (Glossary) View All 58 animated videos - 1 to 2 minutes each - define key ethics terms and concepts. Ethics in Focus View All One-of-a-kind videos highlight the ethical aspects of current and historical subjects. Giving Voice To Values View All Eight short videos present the 7 principles of values-driven leadership from Gentile's Giving Voice to Values. In It To Win View All A documentary and six short videos reveal the behavioral ethics biases in super-lobbyist Jack Abramoff's story. Scandals Illustrated View All 30 videos - one minute each - introduce newsworthy scandals with ethical insights and case studies. Video Series

Case Studies UT Star Icon

Case Studies

More than 70 cases pair ethics concepts with real world situations. From journalism, performing arts, and scientific research to sports, law, and business, these case studies explore current and historic ethical dilemmas, their motivating biases, and their consequences. Each case includes discussion questions, related videos, and a bibliography.

A Million Little Pieces

James Frey’s popular memoir stirred controversy and media attention after it was revealed to contain numerous exaggerations and fabrications.

Abramoff: Lobbying Congress

Super-lobbyist Abramoff was caught in a scheme to lobby against his own clients. Was a corrupt individual or a corrupt system – or both – to blame?

Apple Suppliers & Labor Practices

Is tech company Apple, Inc. ethically obligated to oversee the questionable working conditions of other companies further down their supply chain?

Approaching the Presidency: Roosevelt & Taft

Some presidents view their responsibilities in strictly legal terms, others according to duty. Roosevelt and Taft took two extreme approaches.

Appropriating “Hope”

Fairey’s portrait of Barack Obama raised debate over the extent to which an artist can use and modify another’s artistic work, yet still call it one’s own.

Arctic Offshore Drilling

Competing groups frame the debate over oil drilling off Alaska’s coast in varying ways depending on their environmental and economic interests.

Banning Burkas: Freedom or Discrimination?

The French law banning women from wearing burkas in public sparked debate about discrimination and freedom of religion.

Birthing Vaccine Skepticism

Wakefield published an article riddled with inaccuracies and conflicts of interest that created significant vaccine hesitancy regarding the MMR vaccine.

Blurred Lines of Copyright

Marvin Gaye’s Estate won a lawsuit against Robin Thicke and Pharrell Williams for the hit song “Blurred Lines,” which had a similar feel to one of his songs.

Bullfighting: Art or Not?

Bullfighting has been a prominent cultural and artistic event for centuries, but in recent decades it has faced increasing criticism for animal rights’ abuse.

Buying Green: Consumer Behavior

Do purchasing green products, such as organic foods and electric cars, give consumers the moral license to indulge in unethical behavior?

Cadavers in Car Safety Research

Engineers at Heidelberg University insist that the use of human cadavers in car safety research is ethical because their research can save lives.

Cardinals’ Computer Hacking

St. Louis Cardinals scouting director Chris Correa hacked into the Houston Astros’ webmail system, leading to legal repercussions and a lifetime ban from MLB.

Cheating: Atlanta’s School Scandal

Teachers and administrators at Parks Middle School adjust struggling students’ test scores in an effort to save their school from closure.

Cheating: Sign-Stealing in MLB

The Houston Astros’ sign-stealing scheme rocked the baseball world, leading to a game-changing MLB investigation and fallout.

Cheating: UNC’s Academic Fraud

UNC’s academic fraud scandal uncovered an 18-year scheme of unchecked coursework and fraudulent classes that enabled student-athletes to play sports.

Cheney v. U.S. District Court

A controversial case focuses on Justice Scalia’s personal friendship with Vice President Cheney and the possible conflict of interest it poses to the case.

Christina Fallin: “Appropriate Culturation?”

After Fallin posted a picture of herself wearing a Plain’s headdress on social media, uproar emerged over cultural appropriation and Fallin’s intentions.

Climate Change & the Paris Deal

While climate change poses many abstract problems, the actions (or inactions) of today’s populations will have tangible effects on future generations.

Cover-Up on Campus

While the Baylor University football team was winning on the field, university officials failed to take action when allegations of sexual assault by student athletes emerged.

Covering Female Athletes

Sports Illustrated stirs controversy when their cover photo of an Olympic skier seems to focus more on her physical appearance than her athletic abilities.

Covering Yourself? Journalists and the Bowl Championship

Can news outlets covering the Bowl Championship Series fairly report sports news if their own polls were used to create the news?

Cyber Harassment

After a student defames a middle school teacher on social media, the teacher confronts the student in class and posts a video of the confrontation online.

Defending Freedom of Tweets?

Running back Rashard Mendenhall receives backlash from fans after criticizing the celebration of the assassination of Osama Bin Laden in a tweet.

Dennis Kozlowski: Living Large

Dennis Kozlowski was an effective leader for Tyco in his first few years as CEO, but eventually faced criminal charges over his use of company assets.

Digital Downloads

File-sharing program Napster sparked debate over the legal and ethical dimensions of downloading unauthorized copies of copyrighted music.

Dr. V’s Magical Putter

Journalist Caleb Hannan outed Dr. V as a trans woman, sparking debate over the ethics of Hannan’s reporting, as well its role in Dr. V’s suicide.

East Germany’s Doping Machine

From 1968 to the late 1980s, East Germany (GDR) doped some 9,000 athletes to gain success in international athletic competitions despite being aware of the unfortunate side effects.

Ebola & American Intervention

Did the dispatch of U.S. military units to Liberia to aid in humanitarian relief during the Ebola epidemic help or hinder the process?

Edward Snowden: Traitor or Hero?

Was Edward Snowden’s release of confidential government documents ethically justifiable?

Ethical Pitfalls in Action

Why do good people do bad things? Behavioral ethics is the science of moral decision-making, which explores why and how people make the ethical (and unethical) decisions that they do.

Ethical Use of Home DNA Testing

The rising popularity of at-home DNA testing kits raises questions about privacy and consumer rights.

Flying the Confederate Flag

A heated debate ensues over whether or not the Confederate flag should be removed from the South Carolina State House grounds.

Freedom of Speech on Campus

In the wake of racially motivated offenses, student protests sparked debate over the roles of free speech, deliberation, and tolerance on campus.

Freedom vs. Duty in Clinical Social Work

What should social workers do when their personal values come in conflict with the clients they are meant to serve?

Full Disclosure: Manipulating Donors

When an intern witnesses a donor making a large gift to a non-profit organization under misleading circumstances, she struggles with what to do.

Gaming the System: The VA Scandal

The Veterans Administration’s incentives were meant to spur more efficient and productive healthcare, but not all administrators complied as intended.

German Police Battalion 101

During the Holocaust, ordinary Germans became willing killers even though they could have opted out from murdering their Jewish neighbors.

Head Injuries & American Football

Many studies have linked traumatic brain injuries and related conditions to American football, creating controversy around the safety of the sport.

Head Injuries & the NFL

American football is a rough and dangerous game and its impact on the players’ brain health has sparked a hotly contested debate.

Healthcare Obligations: Personal vs. Institutional

A medical doctor must make a difficult decision when informing patients of the effectiveness of flu shots while upholding institutional recommendations.

High Stakes Testing

In the wake of the No Child Left Behind Act, parents, teachers, and school administrators take different positions on how to assess student achievement.

In-FUR-mercials: Advertising & Adoption

When the Lied Animal Shelter faces a spike in animal intake, an advertising agency uses its moral imagination to increase pet adoptions.

Krogh & the Watergate Scandal

Egil Krogh was a young lawyer working for the Nixon Administration whose ethics faded from view when asked to play a part in the Watergate break-in.

Limbaugh on Drug Addiction

Radio talk show host Rush Limbaugh argued that drug abuse was a choice, not a disease. He later became addicted to painkillers.

U.S. Olympic swimmer Ryan Lochte’s “over-exaggeration” of an incident at the 2016 Rio Olympics led to very real consequences.

Meet Me at Starbucks

Two black men were arrested after an employee called the police on them, prompting Starbucks to implement “racial-bias” training across all its stores.

Myanmar Amber

Buying amber could potentially fund an ethnic civil war, but refraining allows collectors to acquire important specimens that could be used for research.

Negotiating Bankruptcy

Bankruptcy lawyer Gellene successfully represented a mining company during a major reorganization, but failed to disclose potential conflicts of interest.

Pao & Gender Bias

Ellen Pao stirred debate in the venture capital and tech industries when she filed a lawsuit against her employer on grounds of gender discrimination.

Pardoning Nixon

One month after Richard Nixon resigned from the presidency, Gerald Ford made the controversial decision to issue Nixon a full pardon.

Patient Autonomy & Informed Consent

Nursing staff and family members struggle with informed consent when taking care of a patient who has been deemed legally incompetent.

Prenatal Diagnosis & Parental Choice

Debate has emerged over the ethics of prenatal diagnosis and reproductive freedom in instances where testing has revealed genetic abnormalities.

Reporting on Robin Williams

After Robin Williams took his own life, news media covered the story in great detail, leading many to argue that such reporting violated the family’s privacy.

Responding to Child Migration

An influx of children migrants posed logistical and ethical dilemmas for U.S. authorities while intensifying ongoing debate about immigration.

Retracting Research: The Case of Chandok v. Klessig

A researcher makes the difficult decision to retract a published, peer-reviewed article after the original research results cannot be reproduced.

Sacking Social Media in College Sports

In the wake of questionable social media use by college athletes, the head coach at University of South Carolina bans his players from using Twitter.

Selling Enron

Following the deregulation of electricity markets in California, private energy company Enron profited greatly, but at a dire cost.

Snyder v. Phelps

Freedom of speech was put on trial in a case involving the Westboro Baptist Church and their protesting at the funeral of U.S. Marine Matthew Snyder.

Something Fishy at the Paralympics

Rampant cheating has plagued the Paralympics over the years, compromising the credibility and sportsmanship of Paralympian athletes.

Sports Blogs: The Wild West of Sports Journalism?

Deadspin pays an anonymous source for information related to NFL star Brett Favre, sparking debate over the ethics of “checkbook journalism.”

Stangl & the Holocaust

Franz Stangl was the most effective Nazi administrator in Poland, killing nearly one million Jews at Treblinka, but he claimed he was simply following orders.

Teaching Blackface: A Lesson on Stereotypes

A teacher was put on leave for showing a blackface video during a lesson on racial segregation, sparking discussion over how to teach about stereotypes.

The Astros’ Sign-Stealing Scandal

The Houston Astros rode a wave of success, culminating in a World Series win, but it all came crashing down when their sign-stealing scheme was revealed.

The Central Park Five

Despite the indisputable and overwhelming evidence of the innocence of the Central Park Five, some involved in the case refuse to believe it.

The CIA Leak

Legal and political fallout follows from the leak of classified information that led to the identification of CIA agent Valerie Plame.

The Collapse of Barings Bank

When faced with growing losses, investment banker Nick Leeson took big risks in an attempt to get out from under the losses. He lost.

The Costco Model

How can companies promote positive treatment of employees and benefit from leading with the best practices? Costco offers a model.

The FBI & Apple Security vs. Privacy

How can tech companies and government organizations strike a balance between maintaining national security and protecting user privacy?

The Miss Saigon Controversy

When a white actor was cast for the half-French, half-Vietnamese character in the Broadway production of Miss Saigon , debate ensued.

The Sandusky Scandal

Following the conviction of assistant coach Jerry Sandusky for sexual abuse, debate continues on how much university officials and head coach Joe Paterno knew of the crimes.

The Varsity Blues Scandal

A college admissions prep advisor told wealthy parents that while there were front doors into universities and back doors, he had created a side door that was worth exploring.

Providing radiation therapy to cancer patients, Therac-25 had malfunctions that resulted in 6 deaths. Who is accountable when technology causes harm?

Welfare Reform

The Welfare Reform Act changed how welfare operated, intensifying debate over the government’s role in supporting the poor through direct aid.

Wells Fargo and Moral Emotions

In a settlement with regulators, Wells Fargo Bank admitted that it had created as many as two million accounts for customers without their permission.

Stay Informed

Support our work.

• Browse All Articles
• Newsletter Sign-Up

• 15 Apr 2024

Struggling With a Big Management Decision? Start by Asking What Really Matters

Leaders must face hard choices, from cutting a budget to adopting a strategy to grow. To make the right call, they should start by following their own “true moral compass,” says Joseph Badaracco.

• 26 Mar 2024
• Cold Call Podcast

How Do Great Leaders Overcome Adversity?

In the spring of 2021, Raymond Jefferson (MBA 2000) applied for a job in President Joseph Biden’s administration. Ten years earlier, false allegations were used to force him to resign from his prior US government position as assistant secretary of labor for veterans’ employment and training in the Department of Labor. Two employees had accused him of ethical violations in hiring and procurement decisions, including pressuring subordinates into extending contracts to his alleged personal associates. The Deputy Secretary of Labor gave Jefferson four hours to resign or be terminated. Jefferson filed a federal lawsuit against the US government to clear his name, which he pursued for eight years at the expense of his entire life savings. Why, after such a traumatic and debilitating experience, would Jefferson want to pursue a career in government again? Harvard Business School Senior Lecturer Anthony Mayo explores Jefferson’s personal and professional journey from upstate New York to West Point to the Obama administration, how he faced adversity at several junctures in his life, and how resilience and vulnerability shaped his leadership style in the case, "Raymond Jefferson: Trial by Fire."

• 02 Jan 2024

Should Businesses Take a Stand on Societal Issues?

Should businesses take a stand for or against particular societal issues? And how should leaders determine when and how to engage on these sensitive matters? Harvard Business School Senior Lecturer Hubert Joly, who led the electronics retailer Best Buy for almost a decade, discusses examples of corporate leaders who had to determine whether and how to engage with humanitarian crises, geopolitical conflict, racial justice, climate change, and more in the case, “Deciding When to Engage on Societal Issues.”

• 12 Dec 2023

Can Sustainability Drive Innovation at Ferrari?

When Ferrari, the Italian luxury sports car manufacturer, committed to achieving carbon neutrality and to electrifying a large part of its car fleet, investors and employees applauded the new strategy. But among the company’s suppliers, the reaction was mixed. Many were nervous about how this shift would affect their bottom lines. Professor Raffaella Sadun and Ferrari CEO Benedetto Vigna discuss how Ferrari collaborated with suppliers to work toward achieving the company’s goal. They also explore how sustainability can be a catalyst for innovation in the case, “Ferrari: Shifting to Carbon Neutrality.” This episode was recorded live December 4, 2023 in front of a remote studio audience in the Live Online Classroom at Harvard Business School.

• 11 Dec 2023
• Research & Ideas

Doing Well by Doing Good? One Industry’s Struggle to Balance Values and Profits

Few companies wrestle with their moral mission and financial goals like those in journalism. Research by Lakshmi Ramarajan explores how a disrupted industry upholds its values even as the bottom line is at stake.

• 27 Nov 2023

Voting Democrat or Republican? The Critical Childhood Influence That's Tough to Shake

Candidates might fixate on red, blue, or swing states, but the neighborhoods where voters spend their teen years play a key role in shaping their political outlook, says research by Vincent Pons. What do the findings mean for the upcoming US elections?

• 21 Nov 2023

The Beauty Industry: Products for a Healthy Glow or a Compact for Harm?

Many cosmetics and skincare companies present an image of social consciousness and transformative potential, while profiting from insecurity and excluding broad swaths of people. Geoffrey Jones examines the unsightly reality of the beauty industry.

• 09 Nov 2023

What Will It Take to Confront the Invisible Mental Health Crisis in Business?

The pressure to do more, to be more, is fueling its own silent epidemic. Lauren Cohen discusses the common misperceptions that get in the way of supporting employees' well-being, drawing on case studies about people who have been deeply affected by mental illness.

• 07 Nov 2023

How Should Meta Be Governed for the Good of Society?

Julie Owono is executive director of Internet Sans Frontières and a member of the Oversight Board, an outside entity with the authority to make binding decisions on tricky moderation questions for Meta’s companies, including Facebook and Instagram. Harvard Business School visiting professor Jesse Shapiro and Owono break down how the Board governs Meta’s social and political power to ensure that it’s used responsibly, and discuss the Board’s impact, as an alternative to government regulation, in the case, “Independent Governance of Meta’s Social Spaces: The Oversight Board.”

• 24 Oct 2023

From P.T. Barnum to Mary Kay: Lessons From 5 Leaders Who Changed the World

What do Steve Jobs and Sarah Breedlove have in common? Through a series of case studies, Robert Simons explores the unique qualities of visionary leaders and what today's managers can learn from their journeys.

• 03 Oct 2023
• Research Event

Build the Life You Want: Arthur Brooks and Oprah Winfrey Share Happiness Tips

"Happiness is not a destination. It's a direction." In this video, Arthur C. Brooks and Oprah Winfrey reflect on mistakes, emotions, and contentment, sharing lessons from their new book.

• 12 Sep 2023

Successful, But Still Feel Empty? A Happiness Scholar and Oprah Have Advice for You

So many executives spend decades reaching the pinnacles of their careers only to find themselves unfulfilled at the top. In the book Build the Life You Want, Arthur Brooks and Oprah Winfrey offer high achievers a guide to becoming better leaders—of their lives.

• 10 Jul 2023
• In Practice

The Harvard Business School Faculty Summer Reader 2023

Need a book recommendation for your summer vacation? HBS faculty members share their reading lists, which include titles that explore spirituality, design, suspense, and more.

• 01 Jun 2023

A Nike Executive Hid His Criminal Past to Turn His Life Around. What If He Didn't Have To?

Larry Miller committed murder as a teenager, but earned a college degree while serving time and set out to start a new life. Still, he had to conceal his record to get a job that would ultimately take him to the heights of sports marketing. A case study by Francesca Gino, Hise Gibson, and Frances Frei shows the barriers that formerly incarcerated Black men are up against and the potential talent they could bring to business.

• 04 Apr 2023

Two Centuries of Business Leaders Who Took a Stand on Social Issues

Executives going back to George Cadbury and J. N. Tata have been trying to improve life for their workers and communities, according to the book Deeply Responsible Business: A Global History of Values-Driven Leadership by Geoffrey Jones. He highlights three practices that deeply responsible companies share.

• 14 Mar 2023

Can AI and Machine Learning Help Park Rangers Prevent Poaching?

Globally there are too few park rangers to prevent the illegal trade of wildlife across borders, or poaching. In response, Spatial Monitoring and Reporting Tool (SMART) was created by a coalition of conservation organizations to take historical data and create geospatial mapping tools that enable more efficient deployment of rangers. SMART had demonstrated significant improvements in patrol coverage, with some observed reductions in poaching. Then a new predictive analytic tool, the Protection Assistant for Wildlife Security (PAWS), was created to use artificial intelligence (AI) and machine learning (ML) to try to predict where poachers would be likely to strike. Jonathan Palmer, Executive Director of Conservation Technology for the Wildlife Conservation Society, already had a good data analytics tool to help park rangers manage their patrols. Would adding an AI- and ML-based tool improve outcomes or introduce new problems? Harvard Business School senior lecturer Brian Trelstad discusses the importance of focusing on the use case when determining the value of adding a complex technology solution in his case, “SMART: AI and Machine Learning for Wildlife Conservation.”

• 14 Feb 2023

Does It Pay to Be a Whistleblower?

In 2013, soon after the US Securities and Exchange Commission (SEC) had started a massive whistleblowing program with the potential for large monetary rewards, two employees of a US bank’s asset management business debated whether to blow the whistle on their employer after completing an internal review that revealed undisclosed conflicts of interest. The bank’s asset management business disproportionately invested clients’ money in its own mutual funds over funds managed by other banks, letting it collect additional fees—and the bank had not disclosed this conflict of interest to clients. Both employees agreed that failing to disclose the conflict was a problem, but beyond that, they saw the situation very differently. One employee, Neel, perceived the internal review as a good-faith effort by senior management to identify and address the problem. The other, Akash, thought that the entire business model was problematic, even with a disclosure, and believed that the bank may have even broken the law. Should they escalate the issue internally or report their findings to the US Securities and Exchange Commission? Harvard Business School associate professor Jonas Heese discusses the potential risks and rewards of whistleblowing in his case, “Conflicts of Interest at Uptown Bank.”

• 17 Jan 2023

Good Companies Commit Crimes, But Great Leaders Can Prevent Them

It's time for leaders to go beyond "check the box" compliance programs. Through corporate cases involving Walmart, Wells Fargo, and others, Eugene Soltes explores the thorny legal issues executives today must navigate in his book Corporate Criminal Investigations and Prosecutions.

• 29 Nov 2022

How Will Gamers and Investors Respond to Microsoft’s Acquisition of Activision Blizzard?

In January 2022, Microsoft announced its acquisition of the video game company Activision Blizzard for $68.7 billion. The deal would make Microsoft the world’s third largest video game company, but it also exposes the company to several risks. First, the all-cash deal would require Microsoft to use a large portion of its cash reserves. Second, the acquisition was announced as Activision Blizzard faced gender pay disparity and sexual harassment allegations. That opened Microsoft up to potential reputational damage, employee turnover, and lost sales. Do the potential benefits of the acquisition outweigh the risks for Microsoft and its shareholders? Harvard Business School associate professor Joseph Pacelli discusses the ongoing controversies around the merger and how gamers and investors have responded in the case, “Call of Fiduciary Duty: Microsoft Acquires Activision Blizzard.”

• 15 Nov 2022

Stop Ignoring Bad Behavior: 6 Tips for Better Ethics at Work

People routinely overlook wrongdoing, even in situations that cause significant harm. In his book Complicit: How We Enable the Unethical and How to Stop, Max Bazerman shares strategies that help people do the right thing even when those around them aren't.

• Business Essentials
• Leadership & Management
• Credential of Leadership, Impact, and Management in Business (CLIMB)
• Entrepreneurship & Innovation
• Digital Transformation
• Finance & Accounting
• Business in Society
• For Organizations
• Support Portal
• Media Coverage
• Founding Donors
• Leadership Team

• Harvard Business School →
• HBS Online →
• Business Insights →

Business Insights

Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills.

• Career Development
• Communication
• Decision-Making
• Earning Your MBA
• Negotiation
• News & Events
• Productivity
• Staff Spotlight
• Student Profiles
• Work-Life Balance
• AI Essentials for Business
• Alternative Investments
• Business Analytics
• Business Strategy
• Business and Climate Change
• Design Thinking and Innovation
• Digital Marketing Strategy
• Disruptive Strategy
• Economics for Managers
• Entrepreneurship Essentials
• Financial Accounting
• Global Business
• Launching Tech Ventures
• Leadership Principles
• Leadership, Ethics, and Corporate Accountability
• Leading with Finance
• Management Essentials
• Negotiation Mastery
• Organizational Leadership
• Power and Influence for Positive Impact
• Strategy Execution
• Sustainable Business Strategy
• Sustainable Investing
• Winning with Digital Platforms

What Are Business Ethics & Why Are They Important?

• 27 Jul 2023

From artificial intelligence to facial recognition technology, organizations face an increasing number of ethical dilemmas. While innovation can aid business growth, it can also create opportunities for potential abuse.

“The long-term impacts of a new technology—both positive and negative—may not become apparent until years after it’s introduced,” says Harvard Business School Professor Nien-hê Hsieh in the online course Leadership, Ethics, and Corporate Accountability . “For example, the impact of social media on children and teenagers didn’t become evident until we watched it play out over time.”

If you’re a current or prospective leader concerned about navigating difficult situations, here's an overview of business ethics, why they're important, and how to ensure ethical behavior in your organization.

Access your free e-book today.

What Are Business Ethics?

Business ethics are principles that guide decision-making . As a leader, you’ll face many challenges in the workplace because of different interpretations of what's ethical. Situations often require navigating the “gray area,” where it’s unclear what’s right and wrong.

When making decisions, your experiences, opinions, and perspectives can influence what you believe to be ethical, making it vital to:

• Be transparent.
• Invite feedback.
• Consider impacts on employees, stakeholders, and society.
• Reflect on past experiences to learn what you could have done better.

“The way to think about ethics, in my view, is: What are the externalities that your business creates, both positive and negative?” says Harvard Business School Professor Vikram Gandhi in Leadership, Ethics, and Corporate Accountability . “And, therefore, how do you actually increase the positive element of externalities? And how do you decrease the negative?”

Related: Why Managers Should Involve Their Team in the Decision-Making Process

Ethical Responsibilities to Society

Promoting ethical conduct can benefit both your company and society long term.

“I'm a strong believer that a long-term focus is what creates long-term value,” Gandhi says in Leadership, Ethics, and Corporate Accountability . “So you should get shareholders in your company that have that same perspective.”

Prioritizing the triple bottom line is an effective way for your business to fulfill its environmental responsibilities and create long-term value. It focuses on three factors:

• Profit: The financial return your company generates for shareholders
• People: How your company affects customers, employees, and stakeholders
• Planet: Your company’s impact on the planet and environment

Check out the video below to learn more about the triple bottom line, and subscribe to our YouTube channel for more explainer content!

Ethical and corporate social responsibility (CSR) considerations can go a long way toward creating value, especially since an increasing number of customers, employees, and investors expect organizations to prioritize CSR. According to the Conscious Consumer Spending Index , 67 percent of customers prefer buying from socially responsible companies.

To prevent costly employee turnover and satisfy customers, strive to fulfill your ethical responsibilities to society.

Ethical Responsibilities to Customers

As a leader, you must ensure you don’t mislead your customers. Doing so can backfire, negatively impacting your organization’s credibility and profits.

Actions to avoid include:

• Greenwashing : Taking advantage of customers’ CSR preferences by claiming your business practices are sustainable when they aren't.
• False advertising : Making unverified or untrue claims in advertisements or promotional material.
• Making false promises : Lying to make a sale.

These unethical practices can result in multi-million dollar lawsuits, as well as highly dissatisfied customers.

Ethical Responsibilities to Employees

You also have ethical responsibilities to your employees—from the beginning to the end of their employment.

One area of business ethics that receives a lot of attention is employee termination. According to Leadership, Ethics, and Corporate Accountability , letting an employee go requires an individualized approach that ensures fairness.

Not only can wrongful termination cost your company upwards of $100,000 in legal expenses , it can also negatively impact other employees’ morale and how they perceive your leadership.

Ethical business practices have additional benefits, such as attracting and retaining talented employees willing to take a pay cut to work for a socially responsible company. Approximately 40 percent of millennials say they would switch jobs to work for a company that emphasizes sustainability.

Ultimately, it's critical to do your best to treat employees fairly.

“Fairness is not only an ethical response to power asymmetries in the work environment,” Hsieh says in the course. “Fairness—and having a successful organizational culture–can benefit the organization economically and legally.”

Why Are Business Ethics Important?

Failure to understand and apply business ethics can result in moral disengagement .

“Moral disengagement refers to ways in which we convince ourselves that what we’re doing is not wrong,” Hsieh says in Leadership, Ethics, and Corporate Accountability . “It can upset the balance of judgment—causing us to prioritize our personal commitments over shared beliefs, rules, and principles—or it can skew our logic to make unethical behaviors appear less harmful or not wrong.”

Moral disengagement can also lead to questionable decisions, such as insider trading .

“In the U.S., insider trading is defined in common, federal, and state laws regulating the opportunity for insiders to benefit from material, non-public information, or MNPI,” Hsieh explains.

This type of unethical behavior can carry severe legal consequences and negatively impact your company's bottom line.

“If you create a certain amount of harm to a society, your customers, or employees over a period of time, that’s going to have a negative impact on your economic value,” Gandhi says in the course.

This is reflected in over half of the top 10 largest bankruptcies between 1980 and 2013 that resulted from unethical behavior. As a business leader, strive to make ethical decisions and fulfill your responsibilities to stakeholders.

How to Implement Business Ethics

To become a more ethical leader, it's crucial to have a balanced, long-term focus.

“It's very important to balance the fact that, even if you're focused on the long term, you have to perform in the short term as well and have a very clear, articulated strategy around that,” Gandhi says in Leadership, Ethics, and Corporate Accountability .

Making ethical decisions requires reflective leadership.

“Reflecting on complex, gray-area decisions is a key part of what it means to be human, as well as an effective leader,” Hsieh says. “You have agency. You must choose how to act. And with that agency comes responsibility.”

Related: Why Are Ethics Important in Engineering?

Hsieh advises asking the following questions:

• Are you using the “greater good” to justify unethical behavior?
• Are you downplaying your actions to feel better?

“Asking these and similar questions at regular intervals can help you notice when you or others may be approaching the line between making a tough but ethical call and justifying problematic actions,” Hsieh says.

Become a More Ethical Leader

Learning from past successes and mistakes can enable you to improve your ethical decision-making.

“As a leader, when trying to determine what to do, it can be helpful to start by simply asking in any given situation, ‘What can we do?’ and ‘What would be wrong to do?’” Hsieh says.

Many times, the answers come from experience.

Gain insights from others’ ethical decisions, too. One way to do so is by taking an online course, such as Leadership, Ethics, and Corporate Accountability , which includes case studies that immerse you in real-world business situations, as well as a reflective leadership model to inform your decision-making.

Ready to become a better leader? Enroll in Leadership, Ethics, and Corporate Accountability —one of our online leadership and management courses —and download our free e-book on how to be a more effective leader.

About the Author

Business Ethics

• What are Business Ethics?
• Case Studies & Web Resources
• Get Research Help

Harvard Business Review - Case studies

The  Harvard Business Review , available through the  Business Source Premier  database, publishes  one  case study per issue.

HBR's cases are about fictional companies, present common managerial dilemmas, and offer concrete solutions from experts.

Business Source Premier Database ,  Search for  JN "Harvard Business Review" AND CASE STUDY

Web Resources

Source: https://ethics-institute.dartmouth.edu/

• Arthur Andersen Case Studies in Business Ethics Provided by Carnegie Mellon Tepper School of Business, during the period 1987-94 Arthur Andersen funded a $5 million joint project with 525 universities to raise awareness of ethical issues in business. This collection of 90 case studies is one product of that effort. All participating universities, including Carnegie Mellon, have license to use these materials and reproduce them as needed for instructional purposes.
• The Ethics & Compliance Initiative (ECI) ECI is a membership association and research institution that empowers organizations to build and sustain the programs that are proven to increase integrity in organizations. They help leaders create strong ethical workplace cultures and successful businesses that do the right thing.
• Ethics Unwrapped Ethics Unwrapped is a free educational program that combines the latest ethics research with top experts and creative zing to make learning easy, memorable, and fun. This accessible, research-based resource is used around the world by more than 1,700 colleges and universities, in hundreds of businesses and organizations, and by tens of thousands of ethics learners. This program has been made possible by generous contributions from the Pratt Endowment, the Teagle Foundation, the The University of Texas at Austin, and the McCombs School of Business.
• Markkula Center for Applied Ethics The Markkula Center for Applied Ethics has been the leader in applied ethics since 1986. Our comprehensive approach to enlightening people and organizations through materials offered on our website, customized engagements with organizations, and our commitment to Santa Clara University students to be trained in applied ethics has continued to increase our impact. Our Framework for Ethical Decision-Making is recognized by the people and organizations that reach out to the Center for resources as a clear and helpful process to make better decisions.
• MIT- Management Sloan School Teaching Resources Library provides links to multiple leadership and Ethics Case Studies.
• Society of Business Ethics Diverse, global group of students, scholars and business professionals from all disciplines, interested in the research, discussion, teaching and application of ethical business practices.
• Ted Rogers Leadership Centre -the ethical Leadership Case Study Collection The Ted Rogers Leadership Centre’s Case Collection, developed in collaboration with experienced teaching faculty, seasoned executives, and alumni, provides instructors with real-life decision-making scenarios to help hone students’ critical-thinking skills and their understanding of what good leaders do. Cases come in both long and short forms. The long cases provide instructors with tools for delving deeply into subjects related to a variety of decision making and organizational development issues. The short cases, or “minis,” are quick in-class exercises in leadership.
• Warrington College of Business - Poe Business Ethics Center Collection of External resources on ethics in business
• << Previous: Journals
• Next: Get Research Help >>
• Last Updated: Feb 15, 2024 5:02 PM
• URL: https://guides.rider.edu/businessethics

• Ethics Cases
• Markkula Center for Applied Ethics
• Ethics Resources

Find case studies and scenarios on a variety of fields in applied ethics.

Cases can also be viewed by the following categories:

For permission to reprint cases, submit requests to [email protected] .

Looking to draft your own case studies?  This template provides the basics for writing ethics case studies in technology (though with some modification it could be used in other fields as well).

How might news platforms and products ensure that ethical journalism on chronic issues is not drowned out by the noise of runaway political news cycles?

Ethical questions arise in interactions among students, instructors, administrators, and providers of AI tools.

In water rights discussions, there is an ethical responsibility to include Indigenous people in both conversations and legislation decisions.

In this business ethics case study, Swedish multinational company IKEA faced accusations relating to child labor abuses in the rug industry in Pakistan which posed a serious challenge for the company and its supply chain management goals.

A dog may be humanity’s best friend. But that may not always be the case in the workplace.

A recent college graduate works in the finance and analytics department of a large publicly traded software company and discovers an alarming discrepancy in sales records, raising concerns about the company’s commitment to truthful reporting to investors. 

What responsibility does an employee have when information they obtained in confidence from a coworker friend may be in conflict with the needs of the company or raises legal and ethical questions.

A manager at a prominent multinational company is ethically challenged by a thin line between opportunity for economic expansion in a deeply underserved community, awareness of child labor practices, and cultural relativism.

A volunteer providing service in the Dominican Republic discovered that the non-profit he had partnered with was exchanging his donor money on the black market, prompting him to navigate a series of complex decisions with significant ethical implications.

The CFO of a family business faces difficult decisions about how to proceed when the COVID-19 pandemic changes the business revenue models, and one family shareholder wants a full buyout.

• More pages:

Case Studies in Business Ethics

Cite this chapter.

• Alan Kitson &
• Robert Campbell  

147 Accesses

Business and management education has the purpose of improving business practice. Many other claims are made for it but none is as intuitively or philosophically appealing as this. Employers and practitioners may sometimes take the view that business and management education exists to serve their needs for competent employees who can carry out the tasks necessary for successful operation. Therefore, education should aim to provide people with the requisite skills and appropiate attitudes as well as knowledge of business practice. Others take the view that an education should enrich the mind and develop critical faculties. Therefore, a good critical and theoretical understanding is central to the process of business education and skills and attitudes can be acquired during the early stages of employment.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

Unable to display preview.  Download preview PDF.

Aristotle (1947) Metaphysics (W.D. Ross trans.) in T.L. Beauchamp, Case Studies in Business Society and Ethics , Prentice-Hall, New Jersey, 1989.

Google Scholar  

Goodpaster, K. E. (1983) ‘Some Avenues for Ethical Analysis in General Management’, Harvard Business School, case 9-383-007.

Malloy, D.C. and Lang, D.L. (1993) ‘An Aristotelian Approach to Case Study Analysis’, Journal of Business Ethics , vol. 12, 5 pp. 11–516.

Article   Google Scholar  

Mathews, J. B. et al. (1994) Policies and Persons: A Case-book in Business Ethics (2nd edn), McGraw-Hill, New York.

Simon, H. A. (1947) Administrative Behaviour: A Study of Decision-Making Processes in Administrative Organisations , Macmillan, New York.

Download references

You can also search for this author in PubMed   Google Scholar

Copyright information

© 1996 Alan Kitson and Robert Campbell

About this chapter

Kitson, A., Campbell, R. (1996). Case Studies in Business Ethics. In: The Ethical Organisation. Palgrave, London. https://doi.org/10.1007/978-1-349-24405-8_2

Download citation

DOI : https://doi.org/10.1007/978-1-349-24405-8_2

Publisher Name : Palgrave, London

Print ISBN : 978-0-333-62566-8

Online ISBN : 978-1-349-24405-8

eBook Packages : Palgrave Business & Management Collection Business and Management (R0)

Share this chapter

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Publish with us

Policies and ethics

• Find a journal
• Track your research

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

Business law and ethics

• Business and society
• Business education
• Business history
• Diversity and inclusion
• Environmental sustainability

Why Do Companies Succumb to Price Fixing?

• Jeffrey A. Sonnenfeld
• Paul R. Lawrence
• From the July 1978 Issue

Case Study: Is It Ever OK to Break a Promise?

• Neil Bearden
• June 18, 2014

The Problem with Saying “My Door Is Always Open”

• Megan Reitz
• John Higgins
• March 09, 2017

In a Real Emergency, Should Your Company or Your Community Come First?

• Eric J. McNulty
• December 09, 2009

What Military Service Could Teach MBAs

• Gretchen Gavett
• March 24, 2014

Treat Employees like Adults

• Frank Furedi
• From the May 2005 Issue

What's a Business For? (HBR OnPoint Enhanced Edition)

• Charles Handy
• December 01, 2002

Think Like an Author, Not an Owner

• César A Hidalgo
• October 15, 2015

The Foreign Corrupt Practices Act

• Hurd Baruch
• From the January 1979 Issue

When Work Feels Like Family, Employees Keep Quiet About Wrongdoing

• Lauren C. Howe
• December 22, 2020

Online Reviews Could Help Fix Medicine

• Thomas H. Lee
• June 03, 2014

The Debate Over How to Classify Gig Workers Is Missing the Bigger Picture

• July 24, 2019

DNA: Handle with Care

• Bronwyn Fryer
• From the April 2001 Issue

Can Science Be a Business? Lessons from Biotech

• Gary P. Pisano
• From the October 2006 Issue

The Risks of Empowering "Citizen Data Scientists"

• Reid Blackman
• Tamara Sipes
• December 13, 2022

Why AI Customer Journeys Need More Friction

• Renée Richardson Gosline
• June 09, 2022

Neurotech at Work

• Nita A. Farahany
• From the March–April 2023 Issue

What? Me, Worry?

• Gardiner Morse
• From the November 2005 Issue

“Rally the Troops” and Other Business Metaphors You Can Do Without

• Mark Chussil
• November 24, 2016

Coming Next Week: The New HBR.org

• Eric Hellweg
• December 10, 2009

Ubiquitous Surveillance (B)

• Mary Gentile
• David Danks
• Maralee Harrell
• July 07, 2022

Axel Springer and the Quest for the Boundaries of Corporate Responsibility

• Anna Hofmann
• Urs Mueller
• C.B. Bhattacharya
• February 18, 2014

Uber: The Turbulent Rise of "Everyone's Private Driver"

• Jared D. Harris
• Andrew Sell
• October 03, 2022

TransDigm in 2017: The Beginning of the End or the End of the Beginning?

• Benjamin C. Esty
• Daniel Fisher
• April 12, 2020

Some Avenues for Ethical Analysis in General Management

• Kenneth E. Goodpaster
• July 27, 1982

JCDecaux, 2016: Global Leader ... Again

• John R. Wells
• Gabriel Ellsworth
• February 16, 2017

Masdar City Initiative: One Step in the United Arab Emirates Journey to a New Energy Economy

• Mary B. Teagarden
• August 01, 2017

The Book Deal: Confidential Instructions for the AGENT

• Deepak Malhotra
• Max H. Bazerman
• March 11, 2008

MINTing Innovation at NewYork-Presbyterian (B)

• Richard G. Hamermesh
• Michael Norris
• June 10, 2015

Spitzberg Elevators Corporation: Responding to Antitrust Legislation

• Brian C. Pinkham
• November 23, 2017

Deworming Kenya: Translating Research into Action (A)

• Nava Ashraf
• Neil Buddy Shah
• Rachel Gordon
• March 19, 2010

Kathryn McNeil (A)

• Joseph L. Badaracco Jr.
• Jerry Useem
• February 10, 1994

Vodafone in Egypt: National crises and their implications for multinational corporations (B)

• Shirish Pandit
• February 26, 2014

You Can't Tell Anyone (A)

• Brian Moriarty
• July 15, 2022

Contract Manufacturing: Dealing with Supply Chain Ethics Challenges

• Michael Marks
• David W. Hoyt
• November 03, 2008

Steve Maiden (A): A Hedge Fund Manager's Fall from Grace

• Gabrielle Adams
• Peter Belmi
• August 29, 2023

Union Carbide's Bhopal Plant (B)

• Debora L. Spar
• July 31, 1995

Campari (A): A Cocktail of Organic and External Growth

• Salvatore Cantale
• Edwin Wellian
• June 04, 2018

Pokemon: Gotta Catch 'Em All

• Susan Fournier
• November 02, 2000
• Lynn Sharp Paine
• Carin-Isabel Knoop
• March 08, 2001

Volvo and Geely, Teaching Note

• Andrew Inkpen
• Michael Moffett
• October 01, 2013

OneTen: One Million Careers for Black Talent, Teaching Note

• Boris Groysberg
• V. Kasturi Rangan
• Annelena Lobb
• Kerry Herman
• May 22, 2023

Telescope: Squaring Purpose with Reality, Teaching Note

• Andrew C Wicks
• October 04, 2013

Law Three: Human Rights - Social Contracts in Digital Life

• Larry Downes
• October 13, 2009

Popular Topics

Partner center.

ETH 102: Business Ethics (Meyer) : Finding Case Studies

• Finding Case Studies
• Business Databases
• Citing Sources

Case Studies Available from the Internet

• Ethics Unwrapped from UTexas More than 50 case studies match ethics concepts to real world situations. From journalism to performing arts to foreign policy to scientific research to social work, these cases explore a range of current and historic ethical dilemmas, their motivating biases, and their consequences. Each case includes discussion questions, related videos, and a bibliography for further reading.
• Highlighted Cases and Case Studies: Daniels Fund Ethics Initiative Online library of "simple, straightforward business cases focused on principle-based ethics."
• LearningEdge at MIT Sloan Collection of teaching case studies developed by MIT Sloan faculty and students. May be downloaded, copied, distributed free of charge by anyone through creative commons license. Topics include entrepreneurship, leadership and ethics, operations management, strategy, sustainability, and system dynamics.
• Markkula Center for Applied Ethics at Santa Clara University Find case studies and scenarios on a variety of fields in applied ethics.
• Stanford Graduate School of Business - free cases Click on "Narrow your results" and then under Availability select "Available to download at no charge."
• Top 40 Most Popular Case Studies of 2017 from Yale School of Management

Library Databases with Case Studies

This course guide is designed to help you find business research and business case studies.  

Have a question?

Contact us:

Bedford:  781-280-3708 

Lowell:  978-656-3004

Reference questions: [email protected]

• Next: Business Databases >>
• Last Updated: Apr 12, 2024 11:06 AM
• URL: https://libguides.middlesex.mass.edu/businessethics

Get full access to Case Studies in Business Ethics and Corporate Governance and 60K+ other titles, with a free 10-day trial of O'Reilly.

There are also live events, courses curated by job role, and more.

Case Studies in Business Ethics and Corporate Governance

Read it now on the O’Reilly learning platform with a 10-day free trial.

O’Reilly members get unlimited access to books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Book description

Table of contents.

• Content (1/2)
• Content (2/2)
• APPLE’S CULTURE
• ENVIRONMENTAL RECORD
• LABOR PRACTICES
• CORPORATE GOVERNANCE ISSUES
• PRICE CUT STRATEGY
• ANNA HAZARE’S BACKGROUND
• ANNA HAZARE: THE SECOND GANDHI
• MOVEMENT: “INDIA AGAINST CORRUPTION (IAC)”
• ANNA’S MOVEMENT
• THE DARK SIDE OF INDIA
• IMPACT OF ANNA HAZARE’S MOVEMENT
• WHAT WENT WRONG?
• WE ALL ARE ANNA!!
• EVOLUTION OF APPLE
• EVOLUTION OF SAMSUNG
• INDUSTRY ANALYSIS
• PORTER’S FIVE FORCE MODEL TO ANALYZETHE SMARTPHONE MARKET
• INTELLECTUAL PROPERTY INFRINGEMENT
• IMPACT ON SUPPLIER RELATIONSHIP
• STRATEGIES APPLE MAY ADOPT TO PROTECT ITSELF FROMPATENT INFRINGEMENT
• CORPORATE GOVERNANCE
• CORPORATE GOVERNANCE IN INDIA
• CORPORATE GOVERNANCE AT WIPRO
• MANAGEMENT’S RESPONSIBILITIES
• THE INDIAN SOFTWARE SERVICES INDUSTRY
• HISTORICAL BACKGROUND
• ETHICAL ISSUES AND CHALLENGES
• US ENERGY INDUSTRY ANALYSIS
• ENERGY MARKET DEREGULATION AND ENRON
• BUSINESS DIVERSIFICATION AND GROWTH
• ENRON’S CODE OF CONDUCT
• RISE IN THE STOCK PRICES OF ENRON
• THE ALARM SET OFF BY BETHANY McCLEAN: “IS ENRON OVERPRICED?”
• ISSUES AT ENRON
• QUESTIONABLE PRACTICES
• TOP EXECUTIVES AND THEIR ROLES
• SHERRON WATKINS “THE WHISTLEBLOWER”
• FALL OF ENRON
• ETHICAL DILEMMA
• ITC PVT LTD. (1/2)
• ITC PVT LTD. (2/2)
• ABOUT JOHNSON & JOHNSON
• 1998–2006, TURBULENCE STARTED
• TURBULENCE WORSENS (1/2)
• TURBULENCE WORSENS (2/2)
• INTRODUCTION
• INDUSTRY CHARACTERISTICS
• INTO THE SPOTLIGHT
• ETHICAL ISSUES – WHERE TO DRAW THE LINE? (1/2)
• ETHICAL ISSUES – WHERE TO DRAW THE LINE? (2/2)
• ABOUT ANIL DHIRUBHAI AMBANI GROUP (ADAG)
• CORPORATE GOVERNANCE AT RELIANCE GROUP
• INDIAN OIL INDUSTRY
• BACKGROUND OF COMPANIES
• FUEL BEHIND THE FIRE
• JUDGMENT OF THE APEX COURT
• RIL REACTS SWIFTLY
• COMPANY BACKGROUND
• THE SUBHIKSHA SAGA
• BUSINESS VISION AND MISSION OF SUBHIKSHA
• INDIAN RETAIL INDUSTRY: A STORY OF TRANSITION
• BUSINESS MODEL OF SUBHIKSHA
• OPERATIONS MANAGEMENT AT SUBHIKSHA RETAIL
• FAILURE OF SUBHIKSHA – WHAT ACTUALLY WENT WRONG?
• FINANCIAL HEALTH OF SUBHIKSHA
• ETHICAL ISSUES
• TATA MOTORS COMPANY BACKGROUND
• AUTOMOBILE INDUSTRY CHARACTERISTICS
• TATA NANO LAND ACQUISITION ISSUE
• COSTS OF CONFLICT
• THE TATA GROUP
• ABOUT THE COMPANY – TATA CHEMICALS LIMITED
• VISION, MISSION AND VALUES
• COMPANY’S PHILOSOPHY ON THE CODE OF GOVERNANCE
• CORPORATE SOCIAL RESPONSIBILITY BY TATA CHEMICALSLIMITED
• SOME IMPORTANT CSR INITIATIVES BY TATA AT MITHAPUR
• THE UNION’S TUSSLE AT TATA CHEMICALS LIMITED
• Index (1/2)
• Index (2/2)

Product information

• Title: Case Studies in Business Ethics and Corporate Governance
• Author(s): Sreejesh, Mohapatra
• Release date: January 2012
• Publisher(s): Pearson Education India

You might also like

Business ethics and corporate governance.

by A.C. Fernando

usiness Ethics and Corporate Governance offers readers a comprehensive coverage of the theories of business ethics …

Business Ethics

by A. C. Fernando

Business Ethics: An Indian Perspective introduces ethical concepts relevant to resolving moral issues in business. It …

Business Sustainability, Corporate Governance, and Organizational Ethics

by Zabihollah Rezaee, Timothy Fogarty

A comprehensive framework for understanding the most important issues in global business This is the e-book …

Business Ethics, 2nd Edition

Business Ethics: An Indian Perspective provides a comprehensive coverage of the theories of business ethics and …

Don’t leave empty-handed

Get Mark Richards’s Software Architecture Patterns ebook to better understand how to design components—and how they should interact.

It’s yours, free.

Check it out now on O’Reilly

Dive in for free with a 10-day trial of the O’Reilly learning platform—then explore all the other resources our members count on to build skills and solve problems every day.

How to analyze an ethical dilemma?  Here is some background in six 30-minute videos:

Business Ethics: Case Studies

• IIT Library Resources
• Web Resources
• Marketing Ethics
• Case Studies
• Whistleblowing

Case Study Collections

• Arthur Anderson Case Studies in Business Ethics During the period 1987-94 Arthur Andersen funded a $5 million joint project with 525 universities to raise awareness of ethical issues in business. This collection of 90 case studies is one product of that effort. All participating universities, including USC, have license to use these materials and reproduce them as needed for instructional purposes. Other users are advised to consult an attorney regarding copyright issues.
• CasePlace.org A free service of The Aspen Institute's Business and Society Program, casePlace.org is a practical and dynamic resource for up-to-date case studies, syllabi and innovative teaching materials on business and sustainability— from corporate governance to sustainable development.
• Corporate Ethics Case Studies The Business Roundtable Institute for Corporate Ethics have published a number of quality case studies looking at the complex ethical issues managers often have to make regarding environmental ethics, the fair treatment of workers, and working with international governments.
• Kenan Institute for Ethics at Duke University A large number of case studies looking at many different issues in international business ethics, including issues of intellectual property, social responsibility, and relations between business and governments.
• Marketing Mini-Cases A collection of 1-page cases on marketing ethics. Includes both a copy for students and teaching notes.
• Markkula Center for Applied Ethics Business Ethics Cases A nice selection of case studies from the Markkula Center for Applied Ethics at Santa Clara University, including both ethical issues faced by individuals as well as wider global and corporate governance issues.

• << Previous: Marketing Ethics
• Next: Whistleblowing >>
• Last Updated: Dec 5, 2023 1:47 PM
• URL: https://guides.library.iit.edu/businessethics

• Boston University Libraries

Business Case Studies

Open access cases.

• Getting Started
• Harvard Business School Cases
• Diverse Business Cases
• Databases with Cases
• Journals with Cases
• Books with Cases
• Case Analysis
• Case Interviews
• Case Method (Teaching)
• Writing Case Studies
• Citing Business Sources

A number of universities and organizations provide access to free business case studies.  Below are some of the best known sources.

• << Previous: Books with Cases
• Next: Case Analysis >>
• Last Updated: Nov 17, 2023 12:09 PM
• URL: https://library.bu.edu/business-case-studies

The effects of business ethics and corporate social responsibility on intellectual capital voluntary disclosure

Journal of Intellectual Capital

ISSN : 1469-1930

Article publication date: 9 March 2021

Issue publication date: 17 December 2021

This study aims to examine the potential effect that business ethics (BE) in general and corporate social responsibility (CSR) more specifically can exert on the voluntary disclosure (VD) of intellectual capital (IC) for the ethically most engaged firms in the world.

Design/methodology/approach

The research design is based on an inductive approach. As part of the global quantitative investigation, the authors have analyzed the impact of BE and CSR on the transparent communication of the IC. The data under analysis have been investigated using multiple linear regression.

Based on a sample of 83 enterprises emerging as the most ethical companies in the world, the results have revealed that the adoption of ethical and socially responsible approach is positively associated with the extent of VD about IC. This finding may help attenuating the asymmetry of information and the conflict of interest potentially arising with corporate partners. Hence, IC-VD may stand as an evidence of ethical and socially responsible behaviors.

Practical implications

Global and national regulators and policymakers can be involved by these results when setting social reporting standards because they suggest that institutional and/or cultural factors affect top management's social reporting behavior in the publication of the IC information.

Social implications

Direct and indirect stakeholders, if supported by ethical and socially responsible behaviors of the company, could assess more in detail the quality of the disclosed information concerning the IC.

Originality/value

Most of the studies that have been conducted in this field have examined the effect of BE and CSR on the firm's overall transparency, neglecting their potential effect on IC disclosure. This study is designed to fill in this gap through testing the impact of ethical and socially responsible approaches specifically on IC-VD.

• Business ethics
• Corporate social responsibility
• Voluntary disclosure
• Intellectual capital
• Transparency

Rossi, M. , Festa, G. , Chouaibi, S. , Fait, M. and Papa, A. (2021), "The effects of business ethics and corporate social responsibility on intellectual capital voluntary disclosure", Journal of Intellectual Capital , Vol. 22 No. 7, pp. 1-23. https://doi.org/10.1108/JIC-08-2020-0287

Emerald Publishing Limited

Copyright © 2021, Matteo Rossi, Giuseppe Festa, Salim Chouaibi, Monica Fait and Armando Papa

Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

1. Introduction

Over the last few decades, firms have been generating value not only from securities and financials but also from other intangible elements, such as skills of employees (human capital), novelty in technology (structural capital), relationships with customers (direct relational capital) and reputation on the market (indirect relational capital or social capital), all forms of potential intellectual capital (IC), whose contribution, however, is probably riskier than industrial assets ( Su, 2014 ; Cruz-González et al. , 2014 ). In fact, the impact of IC on the business results is uncertain, and in addition, it is often more difficult to identify and measure its characteristics ( Murray et al. , 2016 ).

The uncertainty about its representation and measurement still poses issues related to accounting, evaluation and governance ( Hussi, 2004 ; Guthrie et al. , 2006 ; Hamed and Omri, 2014 ). To limit these problems, managers may choose voluntary disclosure (VD) to reduce the asymmetry of the information ( Branco and Rodrigues, 2008 ).

IC is a driving factor and creator of lasting value ( Lin et al. , 2015 ; Vaz et al. , 2019 ), and disclosure by applying ethical and social principles improves the trust of information and reduces the conflict of interest ( Alves et al. , 2012 ; Chung et al. , 2015 ; Al Maskati and Hamdan, 2017 ). These behaviors may exert a positive effect on the global quality of the IC-VD ( Melloni, 2015 ), and in this study, more specifically, VD of nonfinancial information about IC are assumed to be positively influenced by ethical and socially responsible behaviors of the company's decision-makers ( Corvino et al. , 2019 ).

In this respect, interest in the development of business ethics (BE) and corporate social responsibility (CSR) in accounting, evaluation and management has gained increasing attention in the academic literature ( Nahapiet and Ghoshal, 1998 ), and the last 20 years (or even more) of empirical research on these issues have generated vast literature ( Gray et al. , 1995 ; Chen and Gavious, 2015 ; Singh and Gaur, 2020 ). Accordingly, the quality of the information published by companies about their IC has received an ever more peculiar interest in managerial research ( Ousama and Fatima, 2012 ; Muttakin et al. , 2015 ; Devalle et al. , 2016 ; Bellucci et al. , 2020 ), with specific concerns about the effect of BE and CSR on the quality of the disclosed information on voluntary or mandatory basis, also considering several financial scandals that have added doubts about relevance and reliability of some company data ( Lehnert et al. , 2016 ).

Subsequently, a critical question is the following: is it adequate, opportune and reliable to take into consideration only the accounting information that mandatorily concern IC, especially considering that this entity is so difficult to identify and measure? This issue seems deserving huge attention particularly in the current context, constantly and continuously marked by the rise of BE and CSR, with consequent effect also on the relevance of the quality of the disclosed information.

For example, the legitimacy theory provides some contributions regarding environmental reputation, and the related effect of VD on reputational capital ( Alvino et al. , 2020 ). In this respect, the reputation of the company is a social construct stemming from the process of legitimization ( Bond et al. , 2016 ).

However, empirical studies investigating the effect of BE and CSR on VD have proved mixed results, mostly because of the different meaning about ethics and responsibility in each institutional and cultural context ( Ting et al. , 2020 ). The current study aims to combat this diversity and its consequences in terms of value creation, analyzing more specifically the potential effect of BE and CSR on the VD of IC ( Giacosa et al. , 2017 ).

The perimeter of the research regards the companies that are ranked by the Ethisphere Institute – most probably the global leader in the world for defining and advancing the standards of ethical and social practices that fuel corporate character, market trust and business success – as the most ethical companies in the world. More precisely, the contribution of the study is in checking whether the companies' behavior about IC disclosure is influenced by BE and CSR, aspect that has been often neglected in other studies.

In this respect, a research concerning companies displaying high level of ethical and socially responsible commitment has been conducted, with two main ambitions. First, results should enable to explicitly identify the characteristics that are more likely to influence the diffusion of information about IC in the annual reports through adoption of BE and CSR; second, it should help exploring the contribution of the several company characteristics as assessed in terms of ethics-based scoring.

The empirical evidence emerging from the research has demonstrated that the adoption of approaches that are based on BE and CSR noticeably help in enhancing the disclosure extent of the IC information as figuring in annual reports. Thus, this study should serve to provide further recommendations to the companies intending to adopt codes of ethics, or to put forward CSR practices, encouraging these behaviors also from the point of view of the IC disclosure (and consequent accounting, evaluation and management).

The structure of this paper is organized as follows; Section 2 presents the basic theoretical background and the hypotheses that have been developed: in this section, the relationship between the potential effect of BE and CSR on the VD of IC has been analyzed. Section 3 displays the methodology that has been adopted, while the empirical results are exposed and discussed in Section 4 ; finally, the discussions of the findings, the concluding remarks and their implications are provided in Section 5 .

2. Theoretical background and hypotheses development

As aforementioned, the following investigation is about the effect of BE and CSR on IC-VD, also for clarifying the distinct influences that may arise from concepts that sometimes are considered in ambiguous connection ( Fassin et al. , 2011 ). Therefore, the first step of the research is about a general analysis of the studies focusing on the association between ethical as well as socially responsible behaviors and IC-VD as core aspect of a more global knowledge management approach that cutting-edge enterprises should adopt to succeed ( Serenko and Bontis, 2013 ).

2.1 Theoretical background

To present main reasons and usefulness of the VD of information about IC, the theory of planned behavior has been adopted as fundamental approach. In fact, although extensive research has focused on the variables that externally and internally may influence the managers' decision about disclosing information on IC, few studies have examined in this respect the psychological factors and have used a theoretical decision-making framework ( Coluccia et al. , 2017 ; McPhail, 2009 ).

The theory of planned behavior, largely used to explain the process of individual decision-making behavior ( Ajzen, 1991 ), can emerge as a theoretical framework for investigating the psychosocial factors stimulating the managers' decision to disclose IC information in a mandatory and/or voluntary way. In addition, this model has demonstrated its superiority over other theoretical approaches in many contexts of VD, including IC ( Zhang et al. , 2019 ).

This theory assumes that when individuals, considering altogether internal attitudes and external considerations, perceive a manageable activity as capable of providing business benefits, such as those that may arise from IC-VD, they receive intention, support and encouragement in adopting that specific behavior, also making assumptions about their ability to perform the task ( Passaro et al. , 2018 ; Mura et al. , 2012 ).

For example, Armitage and Conner (2001) examined 185 empirical studies that were conducted prior to 1997, finding that about 39 and 27% of the variance of intention and behavior, respectively, was caused by the theory of planned behavior. In fact, this theory is a rational decision-making model, which is mainly used to predict the potential behavioral intentions of the managers (in this specific case, adopting VD of IC).

Three key independent variables are at the basis of this framework: (1) the attitudes toward a particular behavior; (2) the perceptions of others' approval or disapproval of a particular behavior (subjective norms) and (3) the perceived behavioral control about easiness or difficulty in performing a particular behavior ( Ajzen, 1991 ). This configuration is adopted as methodological basis for the theoretical model in which assessing the following hypotheses.

2.2 Hypotheses development (H1) : BE and VD of IC

Transparent and reliable communication is essential to reflect the true image of a company ( Bhimani, 2008 ): with this regard, financial transparency is a necessary condition for a firm that is involved in the BE process. In the specific context of disclosure, several authors have recognized that BE rooted in organizational culture has a tremendous influence on the development of IC-VD ( Branco and Rodrigues, 2008 ).

For example, Jo et al. (2008) have analyzed the development of ethical standards in the business to improve the quality of the disclosed information, finding that entrepreneurs and managers that consider the promotion of ethical behaviors are urged to ensure permanent disclosure of the company's IC. Later, Navid et al. (2015) have found that unethical behaviors are at the basis of corporate financial scandals, workplace frauds and harassment or misleading financial reporting: such issues have raised awareness about the positive benefits of ethical behavior, also in improving VD (and then, also about IC), to limit the problems of the agency theory.

Mouritsen (2004) has found a significant gap between the market value and the book value resulting from the failure of the companies' hidden value in their annual reports: consequently, BE oriented to IC-VD would limit the problem of the business undervaluation (more specifically, VD of information about IC is positively influenced by the ethical behavior of the company's decision-makers).

On the other hand, the complexity and uncertainty of strategic decision-making require different combinations of data, information and knowledge. In this respect, some research has been conducted to examine the factors influencing disclosure of IC: Ferreira et al. (2012) have found that ownership concentration and firm size have a positive influence on the disclosure of IC, and ethical behaviors also positively influence this disclosure.

Several studies suggest that there are many benefits to acting ethically, such as improving the financial and nonfinancial performances as well as creating a sustainable competitive advantage ( Goel and Ramanathan, 2014 ; Khondkar et al. , 2016 ). In addition, in highly risky and uncertain contexts, policymakers are forced to select powerful tools over VD.

BE behaviors have positive impact on the extent of the IC-VD.

2.3 Hypotheses development (H2) : CSR and VD of IC

The economic value of the company is expressed not only by its means of production but also by the global impact that fundamentally derives from its IC ( Campanella et al. , 2014 ), activating human, structural and relational resources to generate shared value ( Porter and Kramer, 2011 ) at business, social and environmental level ( Elkington, 1998 ). As result, a new path on IC reporting sustains that all companies are increasingly required to be socially responsible and to better manage their environmental impact ( Aslam et al. , 2018 ).

In this vein, organizations have developed accounting and management systems and improved their disclosure practices according to social and environmental principles ( Khondkar et al. , 2016 ). In part, this has been due also to the fact that companies may have incentives for adopting globally responsible approaches and operating socially responsible initiatives ( Gangi et al. , 2019 ); however, a study by Türkel et al. (2016) on the European Union has provided evidence that CSR is a mean that companies may voluntarily decide to adopt to contribute to better society and cleaner environment.

From one side, Sun et al. (2010) have found that companies that need to pursue a strategy of VD of IC are brought to value CSR, and this should be positively interpreted by the various stakeholders. On the other side, regarding the potential asymmetry of information and conflict of interest that may exist, CSR should constitute a behavioral method that would have positive effect on the corporate behaviors, as it promotes transparency, also with regard to the potential VD of IC ( Beretta et al. , 2019 ).

Coherently to the dynamic resource capability perspective of (Bamel and Bamel, 2018) , Luthan et al. (2016) found that in an uncertain world, the adoption of a CSR approach could help reducing uncertainty, especially if the company discloses information about its IC. Similarly, some researchers argue that CSR is a very broad domain, and VD of IC should be considered as a social responsibility action ( Chan et al. , 2014 ).

Polo and Vázquez (2008) have described the relationship between CSR and the VD of information, to ensure the sustainability of the business in general and its operational goals more specifically. In other words, CSR is an asset for the company and the various stakeholders ( Fukukawa et al. , 2007 ) because of its direct contribution to IC (indirect relational capital, for example), with consequent influence on the relevance of the information provided by the company about its IC and knowledge properties more in general ( Rechberg and Syed, 2013 ).

Moreover, as aforementioned, Khondkar et al. (2016) have studied the effect of CSR on the quality of the information disclosed in companies' annual reports. They have found a positive relationship between the level of disclosure and the intensity of CSR, concluding that greater disclosure is a form of socially responsible behavior, thus directly and/or indirectly impacting IC ( Vrontis et al. , 2020 ).

CSR behaviors have positive impact on the extent of the IC-VD.

3. Research design

3.1 sample construction and data collection.

Being the main purpose of this study to explore the effect of BE and CSR on IC-VD, a sample of firms already involved in the process has been selected. In other words, the selectable companies have been detected among those with evident commitment and involvement in ethical and social behaviors.

Several statistical institutes are responsible for making an appropriate classification in this specific field: however, since 2007, the Ethisphere Institute ( Ethisphere.com ) has been analyzing the global market to identify, sector by sector, the most committed companies in the field of ethical behaviors, drawing up a list of the most ethical companies in the world and gaining at international level high reputation in the field ( BusinessWire.com ).

Then, the following investigation has been grounded on the Ethisphere Institute database, which considers more than 100 criteria; the most important are social responsibility, good governance, environmental impact, implementation of code of good behavior, commitment of the direction to questions of ethics and CSR, setting up of internal monitoring indicators, citizen investment and so on (it also considers negative criteria, such as the existence of disputes or infringements to sector regulations). This database provides a global overview, and the list of elected representatives reveals a real geographical diversity with several companies located outside the United States, such as the United Kingdom, Australia, Sweden, Germany, India, Guatemala, Poland, Switzerland, Saudi Arabia, Portugal and Belgium.

The data under investigation have been obtained from the Global-100 KPI 2015 database published by the independent Ethics Expert Group of the Ethisphere Institute (secondary, which have been then summarized into composite indexes, and not empirical data have been used to avoid any potential bias deriving from individual interviews concerning BE and CSR, most of all in the context of the planned behavior theory). Considered as one of the most authoritative indexes in the world due to its methodology and reliability, the Corporate Knights Global 100 designates each year the top 100 companies (out of several thousands) that are the most responsible in terms of ethical behavior.

The year 2015 has been chosen so that the data under analysis could be taken as definitively reliable, considering the time that sometimes is necessary to validate all the accounting information, most of all from a social and environmental point of view. Thus, the 2015 database, to the best of the authors' ability, is the latest publicly available for which it has been possible to collect all the necessary information for implementing the current investigation, but evidently the methodology can be replicated for any other year, when all necessary data would be available (for example, searching for the adequate data starting from WorldsMostEthicalCompanies.com ).

The initial population consisted of 4,353 companies (candidates); in a second step, 4,253 companies that did not meet the classification criteria for the first 100 companies were excluded. From the 100 best ranked companies, for the specific scope of the current research firms that are part of the financial sector, considering the very peculiar rules that govern this industry, have been excluded (i.e. 17 companies); thus, the final sample has included 83 firms, with Table 1 summarizing the sampling selection criteria.

Tables 2 and 3 describe the distributional profiles by country and by sector, respectively: the sample includes 18 developed countries belonging to 35 industries, according to the 48 industry group affiliations as figuring in Fama and French (1997) , with most firms that are based in the USA, the UK and France (these three countries make up 54.28% of the total sample).

The companies from the USA are at the top of the list, with 25% of the sample (20 firms out of 83, 24.09%): French and British companies are entitled of the second position in this ranking, respectively, represented with 10 companies on an equal basis. Then, Canada ranks fourth, since it is represented with eight firms, corresponding to 10% of the total sample (hence, these four countries account for almost 60% of the total sample).

In Table 3 , the most represented sectors are Oil, Gas & Consumable Fuels (eight firms), Pharmaceuticals (seven firms) and Chemicals (four firms), respectively. Concerning other sectors, the number of companies is more limited (three or less).

3.2 The regression model

DISC_SCO: composite index about IC-VD, calculated as combination of several elements (cf. Table 4 ).

ETH_SCO: composite index about BE, calculated as combination of several elements reflecting ethical principles.

CSR_INDEX: composite index about CSR, calculated as combination of 40 indicators reflecting principles of individual and collective social responsibility.

INVT: the degree of innovation intensity is the ratio between research and development (R&D) costs and the turnover (concerning 2015).

TAX_PAID: the effective tax rate is the ratio between tax expenses and earnings before interest and taxes.

ETH_COUNTRY: the scores about this variable range from 1 to 7, with 1 indicating a very low level of country ethics and 7 indicating a very high level of country ethics.

WOM_BOARD: this variable measures the proportion of women that are present in the boards of directors.

LEG_SYST: the legal system works as a binary variable, which numbers 1 if the company belongs to the Anglo-Saxon legal system (globally recognized as stricter), and 0 otherwise.

LEVE: the level of indebtedness is the ratio between long- and medium-term debts and total assets.

POL_SECTOR: the pollutant sector works as a binary variable, which numbers 1 if the company belongs to the polluting sectors (more regulated), and 0 otherwise.

3.3 Variables definition

To operationalize the hypotheses under test, all the variables that have been included in the empirical model are defined and commented as follows.

3.3.1 Dependent variable (“DISC_SCO”)

To measure this dimension, Li et al. (2008) have adopted a content analysis method, investigating the annual reports of selected companies to derive the qualitative, quantitative, financial as well as nonfinancial data relating to IC. In Table 4 the several components for human, structural and relational capital are reported.

In the current research, according to the measure used by Li et al. (2008) , cited also in Maaloul and Zeghal (2015) , the variable “DISC_SCO” has been adopted as a proxy of IC-VD, concerning published items about IC. Based on the examination of the annual reports, this dimension appraises the disclosed information on IC.

3.3.2 Independent variables

As aforementioned, several categories of explanatory variables have been selected to test their combined effects on the VD of IC. In the empirical model under analysis, to test H1 and H2 , two explanatory variables are naturally the most relevant, namely, BE and CSR.

3.3.2.1 BE (“ETH_SCO”)

The ethical measurement has been differently implemented in different contexts because this concept is highly complex and relates to several nonmeasurable dimensions. In addition, several studies have recently operationalized this measure by various means, originating from several international organizations.

In this research, the Ethisphere Quotient developed by the Ethisphere Institute has been adopted to measure the BE of the firms, as result of an investigation that consists of a series of multiple-choice questions that count the company's ethical performance. It is a composite index based on the combination of several items, reflecting each company's level of ethical principles.

3.3.2.2 CSR (“CSR_INDEX”)

In the current study, this measure has been derived from Dias et al. (2017) , who have constructed a list of indicators for measuring the CSR associated practices. The construct involves 40 CSR indicators categorized into three CSR dimensions (5 economic, 15 environmental and 20 social), as shown in Table 5 , thus providing a global view on the CSR of each firm.

The choice of the 40 indicators has been influenced by the most widely adopted standards on CSR disclosure (CSRD), i.e. the Global Reporting Initiative (GRI) Guidelines ( Bebbington et al. , 2008 ). Dias et al. (2017) have primarily focused on the GRI core indicators representing the well-established CSR indicators, and the selected items have been adapted to avoid penalizing companies that do not apply the GRI model.

CSR_INDEX = Level of CSR disclosure

e j  = Attributed analysis (1 if the disclosure item is found, and 0 otherwise)

e  = Maximum number of items a company can disclose (40).

3.3.3 The control variables: characteristics about the firm and the environment of the firm

BE and CSR are not the only factors that may influence the VD of IC. A control has been operated about other determinants of VD that have been documented in prior studies and that might explain the effects of financial and economic peculiarities of the firms on the scale and design of voluntary, and sometimes even mandatory, disclosure of IC ( Ribeiro Lucas and Costa Lourenço, 2014 ).

More specifically, control variables related to the characteristics of the firm are the following: the degree of innovation intensity (INVT), the effective tax rate (TAX_PAID), the percentage women on board of directors (WOM_BOARD), the leverage level (LEVE) and the pollutant sector (POL_SECTOR). Control variables related to the characteristics of the environment of the firm are the following: the level of country ethics (ETH_COUNTRY) and the legal system (LEG_SYST) because the sample includes several countries.

Generally, positive signs should be expected for INVT, WOM_BOARD, ETH_COUNTRY and LEG_SYST, whereas negative signs should be expected for LEVE, and POL_SECTOR, while no directional prediction is assumed for TAX_PAID. Finally, for an overall overview about the model variables composition, cf. Table 6 .

4. Empirical results and discussion

The current research, although engineered for testing specific hypotheses, has an explanatory purpose, aiming at identifying the potential determinants for the VD of the IC through ethical-and-social responsibility approach. As a result, a linear relationship could be established between the variable to be explained (IC-VD) and the potential explanatory variables (BE and CSR).

4.1 Descriptive analysis

Sections A and B, as figuring in Table 7 , provide the descriptive statistics characteristics concerning the continuous and dichotomous variables under investigation. Section A depicts mean, standard deviation, minimum and maximum relevant to the continuous variables, whereas Section B provides the frequency of the dichotomous variables; globally speaking, the sample seems to be evenly distributed.

Starting with the analysis of Section A in Table 7 , the descriptive analysis provides evidence that the mean level of IC-VD (DISC_SCO) is 0.59; this score is high with respect to the Maaloul and Zeghal (2015) reached index (0.46), relevant to a sample of US companies in 2013. Moreover, the current sample encloses firms that should also tend to improve their informational capacity related to IC.

The BE score (ETH_SCO) has a mean value of 0.608. Most companies in the sample tend to be more involved in BE activities.

The CSR scores range from a minimum of 0.15 to a maximum of 0.95, with a mean of 0.698. A higher CSR score denotes that the company displays a better CSR performance ( Hassan and Guo, 2017 ).

As regards the control variables, the following considerations may arise. The intensity of innovation (INVT) displays an average of 0.068, with a minimum of 0 and a maximum of 0.745; whereas the mean level of debt (LEVE) scores 33.3 (that seems an appreciable level of indebtedness), and the effective tax rate (TAX_PAID) exhibits an average of 0.166.

Regarding women's percentage on directors' boards (WOM_BOARD), it has been discovered that, on average, 0.223 of board members are female, with a minimum and a maximum value of 0.10 and 0.429, respectively. Consequently, there is predominance of men in the boards of directors.

As concerns the measure of the level of the country ethics (ETH_COUNTRY), Finland (6.4), Denmark (6.2) and Japan (6) rank as the most ethical, while Spain (3.8), Canada (3.51) and South Korea (0) exhibit the lowest ethical values. This finding is very relevant, affecting the potential influence of the countries' ethical approach on the adoption of IC-VD policies on behalf of enterprises.

From the analysis of Section B in Table 7 , highlighting the binary variables related frequencies, as regards the legal system (LEG_SYST) most of the companies in the sample turn out to pertain to the Anglo-Saxon rules (55%). Additionally, concerning the pollutant sector variable (POL_SECTOR), 51% of the companies in the sample appears to belong to nonpolluting sectors.

4.2 Correlations analysis

The Pearson coefficients were computed to examine the associations between the independent variables. According to Gujarati (2004) , if the pair-wise comparison between two independent variables is over 0.8, serious multicollinearity exists.

The maximum pair-wise value in the current investigation is 0.2649 (cf. Table 8 ); thus, multicollinearity should not be a concern for the regression analysis. Nonetheless, the null hypothesis of autocorrelation can be accepted because the explanatory variables are weakly correlated with each other, indicating that autocorrelation is not a problem. Table 8 presents all the correlation coefficients between the various explanatory variables that have been adopted in the empirical model.

The intercorrelations for all the explanatory variables have been examined by applying the variance inflation factors (VIF) analysis, which revealed no sign of multicollinearity. In fact, the VIF values corresponding to all the independent variables ranged from 1.05 to 1.47, very far below the acceptable upper bound of 10 ( Hair et al. , 2006 ).

The VIF values have been reported for each regression to demonstrate the model stability. Finally, both tests suggest that the regression estimations are not degraded by the presence of multicollinearity.

4.3 Regression analysis

The empirical results reveal that 32.5% of the variation for the level of IC-VD is explained by BE, CSR and control-related variables (cf. Table 9 ). As per Fisher's ( F ) statistics, equal to 2.8, the model's reliability is confirmed at a significant threshold lower than 0.01, and consequently, we tend to reject the null hypothesis, and assume that regression has significant potential to exist.

As expected, the empirical findings, even though with not definitive statistical values, in accordance with the exploratory nature of the research, show some evidence about supporting the research hypotheses ( H1 and H2 ), as further analyzed in detail. Thus, it can be concluded that the model is statistically significant and somehow fruitful for exploring the phenomenon under investigation.

4.3.1 Empirical evidence on BE impacting IC-VD ( H1 )

This hypothesis has been assumed to verify whether the ethical behavior of the companies under analysis positively influences the level of VD of IC: examination of the statistical tests (beta coefficient, t -test and p -value) shows that this variable has a positive and significant effect on the VD of IC. Indeed, the study of causal relationships shows that the coefficient associated with the link between BE and IC-VD is positive (0.485) and statistically significant (the value of the associated t is 1.99 with p  = 0.045), corroborating the hypothesis predictions ( H1 ).

It could be noted the existence of some similarity between these findings and those published by Wirth et al. (2016) . In addition, the results show that divergence of interests and information asymmetry are issues that hinder the success of the enterprise ( Rubinstein et al. , 2001 ); similarly, the rigidity of the corporate governance system could also prevent managers from disclosing information about IC.

The problems of moral hazard and adverse selection are obvious; nevertheless, the results found in this study show that the abovementioned risks are not constraints that prevent the company from disclosing information on IC. These results turn out to be in-line with those reported by Goel and Ramanathan (2014) .

As a further result, the company's commitment in the BE process is a trigger for improving VD of IC, corroborating the results found by Areal and Carvalho (2012) on a sample of the most ethical companies in the world, as these companies can have advantages over others because of three distinct effects, namely, culture, diversity and reputation. This attitude positively influences the level of IC-VD, suggesting for example that these companies may benefit from special protection in the event of a crisis.

4.3.2 Empirical evidence on CSR impacting IC-VD ( H2 )

This hypothesis has assumed that CSR has a positive influence on the level of VD of IC. The statistical tests analysis shows that this variable positively and statistically influences the VD of information.

The estimated coefficient of CSR_INDEX is positive and statistically significant (0.116, p  < 0.01), meaning that CSR influences the VD of the IC. This corroborates the hypothesis predictions ( H2 ).

These results turn out to be in-line with those reported by Branco and Rodrigues (2008) and Dias et al. (2017) . In this respect, CSR is positively interpreted by the various stakeholders via its effect on the decisions made by the company's organs and on the cognitive and mental patterns of the managers as well as on the legitimacy of the decisions ( Fontana et al. , 2019 ).

Likewise, these results align perfectly with the conclusions about the legitimacy of the company's managers ( Bond et al. , 2016 ). Thus, in some cases, and more specifically those based on the postulates of the agency theory, the manager who engages in specific activities related to CSR seems to reduce asymmetric information adopting these actions.

Indeed, the current findings support the view suggesting that VD of information about IC is sustained by CSR, in a mutual influence. Nevertheless, the commitment of the company in the activities of social responsibility, also when impacting IC-VD, is an asset that improves the confidence of investors in the business in the long run ( Saeidi et al. , 2015 ).

These results show the potential existence of a link between CSR and socially responsible disclosure and therefore, the transparency of information. Indeed, as shown by Su (2014) , engagement in social responsibility is a form of commitment to sustainable development and integration into VD that is needed for the most innovative companies.

In addition, as indicated by Garcia-Sanchez et al. (2016) , the company's commitment to social responsibility activities may affect the level of VD and promote financial transparency. Therefore, engagement in social responsibility activities could be dominated by a strategy of transparency and reliability, which may have significant impact on IC-VD.

4.3.3 Complementary considerations

Regarding the control variables, not all the related coefficients show the expected signs. The degree of innovation intensity (INVT) is positively and significantly associated ( p  < 0.1) with VD of IC: this finding suggests that the most innovative firms worldwide have adopted more VD practices about IC; in fact, innovative firms are often under greater pressure from the part of investors and financial analysts to disclose IC relating information.

In addition, the influence of pollutant sector (POL_SECTOR) turns out to be negatively and significantly correlated ( p  < 0.1) with the IC-VD, as expected. Similar confirmation can be found also as concerns the ethical level of the country (ETH_COUNTRY), positively associated with IC-VD.

However, the legal system relevant to each country (LEG_SYST) seems to be involved in controlling the corporate transparency, but this variable appears to be negatively correlated and statistically significant ( p  < 0.05) with IC-VD. Most probably, and differently from what expected, stricter legal system may stimulate in reinforcing potential conflicts of interest and information asymmetry.

Similarly, the percentage of women on boards of directors and the level of indebtedness present directions that are contrary to what expected. Globally speaking, these potential contradictions about the control variables estimations suggest caution and confirm the initial assumption about the exploratory nature of the research.

5. Theoretical and practical implications

The overall results of the research show some applicative potential. From a scientific point of view, essentially, the study helps highlighting the persistence of several connections associating corporate ethics and the extent of IC-VD, within a context characterized with a new tendency of the companies to be responsible in this respect. From a managerial point of view, furthermore, the current study can be useful to promote the implementation of BE and CSR-related strategies, enabling to protect majority or minority shareholders through an enhanced high-quality disclosure of IC.

Ethically, nevertheless, companies should allot greater engagement about the necessity and importance of transparent and reliable communication helping reflecting the firm's true image ( Mathuva et al. , 2017 ). In this respect, financial transparency constitutes a necessary condition for the effective promotion of a firm involved in ethical and socially responsible behaviors, and with this regard, several studies have acknowledged that global ethics, as engraved within the organizational culture, has a remarkable impact on the development of VD, and specifically on the various components of IC ( Luthan et al. , 2016 ).

For example, Rezaee et al. (2020) have stressed the promotion of ethical standards within the company to improve the quality of disclosed information. Indeed, it has been recently discovered that the companies envisaging to promote ethical behaviors are called upon to adopt a rather intensive disclosure policy regarding their IC characteristics: in other words, the quality of disclosed information about IC contributes to outline the social legitimacy ( Slack and Munz, 2016 ).

The quality of information disclosed about the company's IC as based on corporate ethics should necessarily help improving the confidence of the user of the information, while enhancing the firm's social legitimacy. In this context, Su (2014) has found that companies involved in stakeholders' ethical issues can gain a competitive advantage and higher performance attracting excellent employees, as concerns human capital, and enhancing the brand image, as concerns relational/social capital ( Pedrini, 2007 ).

The VD program is an organized process that abides by specific rules conforming to the company's social approach and the executive's behavior. In this respect, the agency theory helps only partially reflecting the reality of the company, as it outlooks other aspects of the business value, especially within the new context of the knowledge-based economy ( Long Kweh et al. , 2014 ).

More particularly, managers are representative agents that rationally respond to the firm's economic stakeholders and the control mechanisms/contractual motivations ( Bamber et al. , 2010 ). Yet, the enterprises' decision-makers are not interchangeable, and companies' actions are a reflection of the values, skills and cognitive competences of the human capital ( Rodriguez Perez and de Pablos, 2003 ); thus, as an organizational option, VD is rather potentially dependent on other considerations than on just the firm's environmental characteristics.

Moreover, the process of communication is complex, as it involves judgments and arbitrations that account for the various constraints relating to the environment of the company, and managers act on the basis of their personal interpretations of the strategic situations they encounter. These interpretations are therefore based also on the individual and organizational values that the manager enjoys ( López-González, 2019 ).

To this end, the theory of planned behavior has been considered as means whereby the disclosure decision about IC could be influenced by several attitudes about BE and CSR. Indeed, it helps understanding a certain behavior in individual's psychological processes, as subjected to various influences, particularly to ethical and social factors.

Like any other behavior, information disclosure about IC also rests on perceived opportunities as well as probable outcomes, as entirely based on managers' values and proper knowledge. Moreover, the generated and disseminated information highly depends on the capacity of the company's information systems not only in terms of quantity but also in terms of growth and ability to account for the needs issued by parties that are external to the company, along with other organisms' requests, ever more with respect to IC.

At even more practical level, the reached findings appear to provide effects for global regulators and policymakers intending to install social reporting standards. They may provide ground that institutional and/or cultural factors affect top management's social reporting behavior or ethical/social values more in general, influencing the quality of published information about IC.

6. Research limitations and future avenues

The study shows several constraints, and two seem quite relevant. First, the research sample corresponds to firms without homogeneous characteristics, especially with regard to their pertinence to two different legal systems (the selected sample encloses several countries with two distinct legal system assumptions), probably affecting the companies' behaviors in terms of VD (mandatorily for sure); for this reason, it seems very desirable to control more thoroughly the legal system's effect, for example, subdividing further research samples into subsamples on the basis of the legal system pertinence. Furthermore, it could be useful to implement a comparison of the investigated model between companies pertaining to civil law or common law, since the legal system directly influences the accounting system, and then, the quality of the financial information.

Second, this finding appears to demonstrate that VD depends highly on corporate culture rather than the respective countries' accounting culture: this should also highlight that IC-VD stands as a form of socially responsible behavior, or an outcome of ethical behavior regarding the entirety of partners, more than mere legal constraint. Thus, further research on cross-cultural management influence could be useful, along with longitudinal analyses that could support major reliability of the global research.

7. Conclusion

This study has explored the impact of BE and CSR on the process of IC-VD, concerning a sample including 83 of the most ethical companies in 2015 in the world. Among the research motivations, it is to highlight that very few empirical studies appear to demonstrate the persistence of a relationship between ethical and social approaches and IC-VD: attempting to fill such a noticeable gap, the current study has been conducted to investigate, empirically, the relationship binding both variables.

Findings support arguments that companies with ethical behaviors and socially responsible practices appear to be highly committed to VD about their IC. It could follow, therefore, that IC-VD can also be considered as a form of ethical and socially responsible behavior.

The results achieved in this research afford empirical evidence as to the extent of external disclosure practices in the global context, also considering ever more frequent interfirm networks, providing useful means for investors seeking profitable investment opportunities and for financial report users, acting as operative orientations of knowledge management and IC strategy ( Del Giudice and Maggioni, 2014 ). In this respect, an ethical behavior (structural capital), influenced by personal values (human capital), affects IC-VD and then, practically, also the relational/social capital of the organization.

Sample selection process

Note(s) : *, ** and *** represent significance at 0.1, 0.05 and 0.01, respectively

Source(s) : Authors' calculation

Ajzen , I. ( 1991 ), “ The theory of planned behavior ”, Organizational Behavior and Human Decision Processes , Vol. 50 No. 2 , pp. 179 - 211 .

Al Maskati , M.M. and Hamdan , A.M.M. ( 2017 ), “ Corporate governance and voluntary disclosure: evidence from Bahrain ”, International Journal of Economics and Accounting , Vol. 8 No. 1 , pp. 1 - 28 .

Alves , H. , Rodrigues , A.M. and Canadas , N. ( 2012 ), “ Factors influencing the different categories of voluntary disclosure in annual reports: an analysis for Iberian Peninsula listed companies ”, Tékhne , Vol. 10 No. 1 , pp. 15 - 26 .

Alvino , F. , Di Vaio , A. , Hassan , R. and Palladino , R. ( 2020 ), “ Intellectual capital and sustainable development: a systematic literature review ”, Journal of Intellectual Capital , Vol. 22 No. 1 , pp. 76 - 94 .

Areal , N. and Carvalho , A. ( 2012 ), “ The financial performance of the world's most ethical companies: advantage in times of crisis ”, Working Paper , University of Minho School of Economics and Management , Braga , pp. 1 - 48 , doi: 10.2139/ssrn.2186088 .

Armitage , C.J. and Conner , M. ( 2001 ), “ Efficacy of the theory of planned behaviour: a meta, analytic review ”, British Journal of Social Psychology , Vol. 40 No. 4 , pp. 471 - 499 .

Aslam , S. , Ahmad , M. , Amin , S. , Usman , M. and Arif , S. ( 2018 ), “ The impact of corporate governance and intellectual capital on firm's performance and corporate social responsibility disclosure ”, Pakistan Journal of Commerce and Social Sciences , Vol. 12 No. 1 , pp. 283 - 308 .

Bamber , L.S. , Jiang , J.X. and Wang , I.Y. ( 2010 ), “ What's my style? The influence of top managers on voluntary corporate financial disclosure ”, The Accounting Review , Vol. 85 No. 4 , pp. 1131 - 1162 .

Bamel , U.K. and Bamel , N. ( 2018 ), “ Organizational resources, KM process capability and strategic flexibility: a dynamic resource-capability perspective ”, Journal of Knowledge Management , Vol. 22 No. 7 , pp. 1555 - 1572 .

Bebbington , J. , Larrinaga , C. and Moneva , J.M. ( 2008 ), “ Corporate social reporting and reputation risk management ”, Accounting, Auditing and Accountability Journal , Vol. 21 No. 3 , pp. 337 - 361 .

Bellucci , M. , Marzi , G. , Orlando , B. and Ciampi , F. ( 2020 ), “ Journal of Intellectual Capital: a review of emerging themes and future trends ”, Journal of Intellectual Capital , Vol. ahead-of-print No. ahead-of-print , pp. 1 - 24 , doi: 10.1108/JIC-10-2019-0239 .

Beretta , V. , Demartini , C. and Trucco , S. ( 2019 ), “ Does environmental, social and governance performance influence intellectual capital disclosure tone in integrated reporting? ”, Journal of Intellectual Capital , Vol. 20 No. 1 , pp. 100 - 124 .

Bhimani , A. ( 2008 ), “ Making corporate governance count: the fusion of ethics and economic rationality ”, Journal of Management and Governance , Vol. 12 No. 2 , pp. 135 - 147 .

Bond , A. , Pope , J. , Morrison-Saunders , A. and Retief , F. ( 2016 ), “ A game theory perspective on environmental assessment: what games are played and what does this tell us about decision making rationality and legitimacy? ”, Environmental Impact Assessment Review , Vol. 57 No. 2016 , pp. 187 - 194 .

Branco , M.C. and Rodrigues , L.L. ( 2008 ), “ Factors influencing social responsibility disclosure by Portuguese companies ”, Journal of Business Ethics , Vol. 83 No. 4 , pp. 685 - 701 .

Campanella , F. , Della Peruta , M.R. and Del Giudice , M. ( 2014 ), “ Creating conditions for innovative performance of science parks in Europe. How manage the intellectual capital for converting knowledge into organizational action ”, Journal of Intellectual Capital , Vol. 15 No. 4 , pp. 576 - 596 .

Chan , M.C. , Watson , J. and Woodliff , D. ( 2014 ), “ Corporate governance quality and CSR disclosures ”, Journal of Business Ethics , Vol. 125 No. 1 , pp. 59 - 73 .

Chen , E. and Gavious , I. ( 2015 ), “ Does CSR have different value implications for different shareholders? ”, Finance Research Letters , Vol. 14 , No. 2015 , pp. 29 - 35 .

Chung , H. , Judge , W.Q. and Li , Y.H. ( 2015 ), “ Voluntary disclosure, excess executive compensation, and firm value ”, Journal of Corporate Finance , Vol. 32 , No. 2015 , pp. 64 - 90 .

Coluccia , D. , D'Amico , E. , Fontana , S. and Solimene , S. ( 2017 ), “ A cross-cultural perspective of voluntary disclosure: Italian listed firms in the stakeholder global context ”, European Journal of International Management , Vol. 11 No. 4 , pp. 430 - 451 .

Corvino , A. , Caputo , F. , Pironti , M. , Doni , F. and Bianchi Martini , S. ( 2019 ), “ The moderating effect of firm size on relational capital and firm performance: evidence from Europe ”, Journal of Intellectual Capital , Vol. 20 No. 4 , pp. 510 - 532 .

Cruz-González , J. , López-Sáez , P. , Emilio Navas-López , J. and Delgado-Verde , M. ( 2014 ), “ Directions of external knowledge search: investigating their different impact on firm performance in high-technology industries ”, Journal of Knowledge Management , Vol. 18 No. 5 , pp. 847 - 866 .

Del Giudice , M. and Maggioni , V. ( 2014 ), “ Managerial practices and operative directions of knowledge management within inter-firm networks: a global view ”, Journal of Knowledge Management , Vol. 18 No. 5 , pp. 841 - 846 .

Devalle , A. , Rizzato , F. and Busso , D. ( 2016 ), “ Disclosure indexes and compliance with mandatory disclosure-The case of intangible assets in the Italian market ”, Advances in Accounting , Vol. 35 , No. 2016 , pp. 8 - 25 .

Dias , A. , Rodrigues , L.L. and Craig , R. ( 2017 ), “ Corporate governance effects on social responsibility disclosures ”, Australasian Accounting Business and Finance Journal , Vol. 11 No. 2 , pp. 3 - 22 .

Elkington , J. ( 1998 ), “ Accounting for the triple bottom line ”, Measuring Business Excellence , Vol. 2 No. 3 , pp. 18 - 22 .

Fama , E.F. and French , K.R. ( 1997 ), “ Industry costs of equity ”, Journal of Financial Economics , Vol. 43 No. 2 , pp. 153 - 193 .

Fassin , Y. , Van Rossem , A. and Buelens , M. ( 2011 ), “ Small-business owner-managers' perceptions of business ethics and CSR-related concepts ”, Journal of Business Ethics , Vol. 98 No. 3 , pp. 425 - 453 .

Ferreira , A.L. , Branco , M.C. and Moreira , J.A. ( 2012 ), “ Factors influencing intellectual capital disclosure by Portuguese companies ”, International Journal of Accounting and Financial Reporting , Vol. 2 No. 2 , p. 278 .

Fontana , S. , Coluccia , D. and Solimene , S. ( 2019 ), “ VAIC as a tool for measuring intangibles value in voluntary multi-stakeholder disclosure ”, Journal of the Knowledge Economy , Vol. 10 No. 4 , pp. 1679 - 1699 .

Fukukawa , K. , Balmer , J.M. and Gray , E.R. ( 2007 ), “ Mapping the interface between corporate identity, ethics and corporate social responsibility ”, Journal of Business Ethics , Vol. 76 No. 1 , pp. 1 - 5 .

Gangi , F. , Mustilli , M. and Varrone , N. ( 2019 ), “ The impact of corporate social responsibility (CSR) knowledge on corporate financial performance: evidence from the European banking industry ”, Journal of Knowledge Management , Vol. 23 No. 1 , pp. 110 - 134 .

Garcia-Sanchez , I.M. , Cuadrado-Ballesteros , B. and Frias-Aceituno , J.V. ( 2016 ), “ Impact of the institutional macro context on the voluntary disclosure of CSR information ”, Long Range Planning , Vol. 49 No. 1 , pp. 15 - 35 .

Giacosa , E. , Ferraris , A. and Bresciani , S. ( 2017 ), “ Exploring voluntary external disclosure of intellectual capital in listed companies: an integrated intellectual capital disclosure conceptual model ”, Journal of Intellectual Capital , Vol. 18 No. 1 , pp. 149 - 169 .

Goel , M. and Ramanathan , M.P.E. ( 2014 ), “ Business ethics and corporate social responsibility–is there a dividing line? ”, Procedia Economics and Finance , Vol. 11 , No. 2014 , pp. 49 - 59 .

Gray , R. , Kouhy , R. and Lavers , S. ( 1995 ), “ Corporate social and environmental reporting: a review of the literature and a longitudinal study of UK disclosure ”, Accounting, Auditing and Accountability Journal , Vol. 8 No. 2 , pp. 47 - 77 .

Gujarati , D.N. ( 2004 ), Basic Econometrics , McGraw-Hill , New York, NY .

Guthrie , J. , Petty , R. and Ricceri , F. ( 2006 ), “ The voluntary reporting of intellectual capital: comparing evidence from Hong Kong and Australia ”, Journal of Intellectual Capital , Vol. 7 No. 2 , pp. 254 - 271 .

Hair , J. , Black , W. , Babin , B. , Anderson , R. and Tatham , R. ( 2006 ), Multivariate Data Analysis , Pearson Prentice Hall , Upper Saddle River, NJ .

Hamed , M.S. and Omri , M.A. ( 2014 ), “ Voluntary disclosure about innovation and technological choices by Tunisian listed companies ”, International Journal of Managerial and Financial Accounting , Vol. 5 No. 4 , pp. 379 - 390 .

Haniffa , R.M. and Cooke , T.E. ( 2005 ), “ The impact of culture and governance on corporate social reporting ”, Journal of Accounting and Public Policy , Vol. 24 No. 5 , pp. 391 - 430 .

Hassan , A. and Guo , X. ( 2017 ), “ The relationships between reporting format, environmental disclosure and environmental performance: an empirical study ”, Journal of Applied Accounting Research , Vol. 18 No. 4 , pp. 425 - 444 .

Hussi , T. ( 2004 ), “ Reconfiguring knowledge management – combining intellectual capital, intangible assets and knowledge creation ”, Journal of Knowledge Management , Vol. 8 No. 2 , pp. 36 - 52 .

Jo , J. , Park , J. and Cho , M. ( 2008 ), “ A study on the segment reporting of Korean firms ”, Korean Accounting Journal , Vol. 17 , No. 2008 , pp. 191 - 223 .

Khondkar , E.K. , Suh , S. and Tang , J. ( 2016 ), “ Do ethical firms create value? ”, Social Responsibility Journal , Vol. 12 No. 1 , pp. 54 - 68 .

Lehnert , K. , Craft , J. , Singh , N. and Park , Y.H. ( 2016 ), “ The human experience of ethics: a review of a decade of qualitative ethical decision making research ”, Business Ethics: A European Review , Vol. 25 No. 4 , pp. 498 - 537 .

Li , J. , Pike , R. and Haniffa , R. ( 2008 ), “ Intellectual capital disclosure and corporate governance structure in UK firms ”, Accounting and Business Research , Vol. 38 No. 2 , pp. 137 - 159 .

Lin , C.S. , Chang , R.Y. and Dang , V.T. ( 2015 ), “ An integrated model to explain how corporate social responsibility affects corporate financial performance ”, Sustainability , Vol. 7 No. 7 , pp. 8292 - 8311 .

López-González , E. , Martínez-Ferrero , J. and García-Meca , E. ( 2019 ), “ Corporate social responsibility in family firms: a contingency approach ”, Journal of Cleaner Production , Vol. 211 , No. 2019 , pp. 1044 - 1064 .

Long Kweh , Q. , Lu , W.-M. and Wang , W.-K. ( 2014 ), “ Dynamic efficiency: intellectual capital in the Chinese non-life insurance firms ”, Journal of Knowledge Management , Vol. 18 No. 5 , pp. 937 - 951 .

Luthan , E. , Asniati and Yohana , D. ( 2016 ), “ A correlation of CSR and intellectual capital, its implication toward company's value creation ”, International Journal of Business and Management Invention , Vol. 5 No. 11 , pp. 88 - 94 .

Maaloul , A. and Zeghal , D. ( 2015 ), “ Financial statement informativeness and intellectual capital disclosure: an empirical analysis ”, Journal of Financial Reporting and Accounting , Vol. 13 No. 1 , pp. 66 - 90 .

Mathuva , D.M. , Mboya , J.K. and McFie , J.B. ( 2017 ), “ Achieving legitimacy through co-operative governance and social and environmental disclosure by credit unions in a developing country ”, Journal of Applied Accounting Research , Vol. 18 No. 2 , pp. 162 - 184 .

McPhail , K. ( 2009 ), “ Where is the ethical knowledge in the knowledge economy? Power and potential in the emergence of ethical knowledge as a component of intellectual capital ”, Critical Perspectives on Accounting , Vol. 20 No. 7 , pp. 804 - 822 .

Melloni , G. ( 2015 ), “ Intellectual capital disclosure in integrated reporting: an impression management analysis ”, Journal of Intellectual Capital , Vol. 16 No. 3 , pp. 661 - 680 .

Mouritsen , J. ( 2004 ), “ Measuring and intervening: how do we theorise intellectual capital management? ”, Journal of Intellectual Capital , Vol. 5 No. 2 , pp. 257 - 267 .

Mura , M. , Lettieri , E. , Spiller , N. and Radaelli , G. ( 2012 ), “ Intellectual capital and innovative work behaviour: opening the black box ”, International Journal of Engineering Business Management , Vol. 4 , No. 2012 , pp. 4 - 39 .

Murray , A. , Papa , A. , Cuozzo , B. and Russo , G. ( 2016 ), “ Evaluating the innovation of the internet of things ”, Business Process Management Journal , Vol. 22 No. 2 , pp. 1 - 21 .

Muttakin , M.B. , Khan , A. and Belal , A.R. ( 2015 ), “ Intellectual capital disclosures and corporate governance: an empirical examination ”, Advances in Accounting , Vol. 31 No. 2 , pp. 219 - 227 .

Nahapiet , J. and Ghoshal , S. ( 1998 ), “ Social capital, intellectual capital, and the organizational advantage ”, Academy of Management Review , Vol. 23 No. 2 , pp. 242 - 266 .

Navid , B.J. , Pourmazaheri , M. and Amiri , M. ( 2015 ), “ The investigate of relationships between intellectual capital, performance and corporate social responsibility evidence from Tehran stock exchange ”, International Journal of Applied Business and Economic Research , Vol. 13 No. 6 , pp. 3983 - 3993 .

Ousama , A.A. and Fatima , A.H. ( 2012 ), “ Extent and trend of intellectual capital reporting in Malaysia: empirical evidence ”, International Journal of Managerial and Financial Accounting , Vol. 4 No. 2 , pp. 159 - 176 .

Passaro , R. , Quinto , I. and Thomas , A. ( 2018 ), “ The impact of higher education on entrepreneurial intention and human capital ”, Journal of Intellectual Capital , Vol. 19 No. 1 , pp. 135 - 156 .

Pedrini , M. ( 2007 ), “ Human capital convergences in intellectual capital and sustainability reports ”, Journal of Intellectual Capital , Vol. 8 No. 2 , pp. 346 - 366 .

Polo , F.C. and Vázquez , D.G. ( 2008 ), “ Social information within the intellectual capital report ”, Journal of International Management , Vol. 14 No. 4 , pp. 353 - 363 .

Porter , M.E. and Kramer , M.R. ( 2011 ), “ Creating shared value ”, Harvard Business Review , Vol. 89 Nos 1-2 , pp. 62 - 77 .

Rechberg , I. and Syed , J. ( 2013 ), “ Ethical issues in knowledge management: conflict of knowledge ownership ”, Journal of Knowledge Management , Vol. 17 No. 6 , pp. 828 - 847 .

Rezaee , Z. , Alipour , M. , Faraji , O. , Ghanbari , M. and Jamshidinavid , B. ( 2020 ), “ Environmental disclosure quality and risk: the moderating effect of corporate governance ”, Sustainability Accounting, Management and Policy Journal , Vol. ahead-of-print No. ahead-of-print , pp. 1 - 34 , doi: 10.1108/SAMPJ-10-2018-0269 .

Ribeiro Lucas , S.M. and Costa Lourenço , I. ( 2014 ), “ The effect of firm and country characteristics on mandatory disclosure compliance ”, International Journal of Managerial and Financial Accounting , Vol. 6 No. 2 , pp. 87 - 116 .

Rodriguez Perez , J. and Ordóñez de Pablos , P. ( 2003 ), “ Knowledge management and organizational competitiveness: a framework for human capital analysis ”, Journal of Knowledge Management , Vol. 7 No. 3 , pp. 82 - 91 .

Rubinstein , J.S. , Meyer , D.E. and Evans , J.E. ( 2001 ), “ Executive control of cognitive processes in task switching ”, Journal of Experimental Psychology: Human Perception and Performance , Vol. 27 No. 4 , pp. 763 - 797 .

Saeidi , S.P. , Sofian , S. , Saeidi , P. , Saeidi , S.P. and Saaeidi , S.A. ( 2015 ), “ How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction ”, Journal of Business Research , Vol. 68 No. 2 , pp. 341 - 350 .

Serenko , A. and Bontis , N. ( 2013 ), “ The intellectual core and impact of the knowledge management academic discipline ”, Journal of Knowledge Management , Vol. 17 No. 1 , pp. 137 - 155 .

Singh , S.K. and Gaur , S.S. ( 2020 ), “ Corporate growth, sustainability and business ethics in twenty-first century ”, Journal of Management and Governance , Vol. 24 , No. 2020 , pp. 303 - 305 .

Slack , R. and Munz , M. ( 2016 ), “ Intellectual capital reporting, leadership and strategic change ”, Journal of Applied Accounting Research , Vol. 17 No. 1 , pp. 61 - 83 .

Su , H.Y. ( 2014 ), “ Business ethics and the development of intellectual capital ”, Journal of Business Ethics , Vol. 119 No. 1 , pp. 87 - 98 .

Sun , N. , Salama , A. , Hussainey , K. and Habbash , M. ( 2010 ), “ Corporate environmental disclosure, corporate governance and earnings management ”, Managerial Auditing Journal , Vol. 25 No. 7 , pp. 679 - 700 .

Ting , I.W.K. , Ren , C. , Chen , F.-C. and Kweh , Q.L. ( 2020 ), “ Interpreting the dynamic performance effect of intellectual capital through a value-added-based perspective ”, Journal of Intellectual Capital , Vol. 21 No. 3 , pp. 381 - 401 .

Türkel , S. , Uzunoğlu , E. , Kaplan , M.D. and Vural , B.A. ( 2016 ), “ A strategic approach to CSR communication: examining the impact of brand familiarity on consumer responses ”, Corporate Social Responsibility and Environmental Management , Vol. 23 No. 4 , pp. 228 - 242 .

Vaz , C.R. , Selig , P.M. and Viegas , C.V. ( 2019 ), “ A proposal of intellectual capital maturity model (ICMM) evaluation ”, Journal of Intellectual Capital , Vol. 20 No. 2 , pp. 208 - 234 .

Vrontis , D. , Christofi , M. , Battisti , E. and Graziano , E.A. ( 2020 ), “ Intellectual capital, knowledge sharing and equity crowdfunding ”, Journal of Intellectual Capital , Vol. 22 No. 1 , pp. 95 - 121 .

Wirth , H. , Kulczycka , J. , Hausner , J. and Koński , M. ( 2016 ), “ Corporate Social Responsibility: communication about social and environmental disclosure by large and small copper mining companies ”, Resources Policy , Vol. 49 , No. 2016 , pp. 53 - 60 .

Zhang , Y. , Wang , T. and Hsu , C. ( 2019 ), “ The effects of voluntary GDPR adoption and the readability of privacy statements on customers' information disclosure intention and trust ”, Journal of Intellectual Capital , Vol. 21 No. 2 , pp. 145 - 163 .

businesswire.com .

ethisphere.com .

weforum.org .

worldbank.org .

worldsmostethicalcompanies.com .

Acknowledgements

The article is based on the study funded by the Basic Research Program of the National Research University Higher School of Economics (HSE) and by the Russian Academic Excellence Project “5-100”.

Corresponding author

About the authors.

Matteo Rossi is an Associate Professor of Corporate Finance at the University of Sannio, Benevento, Italy, where he received the PhD degree in Management. He is also an Adjunct Professor of Advanced Corporate Finance at LUISS, Rome, Italy. Dr Rossi is the Editor-in-Chief for the International Journal of Managerial and Financial Accounting and for the International Journal of Behavioral Accounting and Finance.

Giuseppe Festa is an Associate Professor of Management at the Department of Economics and Statistics of the University of Salerno, Italy, EU. He holds a PhD in Economics and Management of Public Organizations from the University of Salerno, where he is the Scientific Director of the Postgraduate course in Wine Business and the Vice-Director of the Second Level Master's in Management of Healthcare Organizations – Daosan. He is also the Chairman of the Euromed Research Interest Committee on Wine Business. His research interests focus mainly on wine business, information systems and healthcare management.

Salim Chouaibi is a PhD Student in Accounting at the Faculty of Economic Sciences and Management of the University of Sfax (Tunisia).

Monica Fait is an Assistant Professor of Management at the Department of Management Economics Mathematics and Statistics of the University of Salento, Lecce (Italy), where she teaches Business Economics and Management. Her research looks at the effects of Information and Communication Technology (ICT) on company behavior, knowledge sharing and sustainability. She is the author of several scientific publications and papers on the Web 2.0 marketing strategies, and her studies have been published on international journals like Technological Forecasting and Social Change , Journal of Knowledge Management and British Food Journal . She also serves as reviewer for several international journals and is a speaker at national and international conferences and industry forums.

Armando Papa is an Associate Professor of Management at the Faculty of Communication Sciences of the University of Teramo (Italy) and at the National Research University Higher School of Economics (HSE) of Moscow (Russian Federation). He received the postgraduate master's degree in corporate finance from IPE (Naples, Italy) and the PhD degree in management from the “Federico II” University of Naples. He is an Associate Editor for the Journal of Knowledge Economy (Springer) and an Editorial Assistant for the Journal of Knowledge Management (Emerald).

Related articles

We’re listening — tell us what you think, something didn’t work….

Report bugs here

All feedback is valuable

Please share your general feedback

Join us on our journey

Platform update page.

Visit emeraldpublishing.com/platformupdate to discover the latest news and updates

Questions & More Information

Answers to the most commonly asked questions here