Moral Degradation, Business Ethics, and Corporate Social Responsibility in a Transitional Economy

This article theoretically proposes and empirically verifies an understudied issue in the business ethics (BE) and corporate social responsibility (CSR) literature-how moral degradation (MD) in a society influences the relationship between BE or CSR and firm performance (i.e., corporate legitimacy a...

Full description

Bibliographic Details
Main Authors: Zheng, Q., Luo, Yadong, Wang, S.
Format: Journal Article
Published: Springer Netherlands 2014
Online Access:http://hdl.handle.net/20.500.11937/49835
_version_ 1848758326809067520
author Zheng, Q.
Luo, Yadong
Wang, S.
author_facet Zheng, Q.
Luo, Yadong
Wang, S.
author_sort Zheng, Q.
building Curtin Institutional Repository
collection Online Access
description This article theoretically proposes and empirically verifies an understudied issue in the business ethics (BE) and corporate social responsibility (CSR) literature-how moral degradation (MD) in a society influences the relationship between BE or CSR and firm performance (i.e., corporate legitimacy and competitive advantage). Building on strategic choice theory, we propose that both BE and CSR become more important in enhancing business success when the perceived MD is heightened. Our analysis of 300 firms operating in China statistically confirms our hypotheses: first, under high MD, firms' engagement in CSR results in higher corporate legitimacy and competitive advantage, and second, their adherence to ethical business codes leads to higher corporate legitimacy. We conclude the article by outlining the implications for both theory and practice.
first_indexed 2025-11-14T09:42:13Z
format Journal Article
id curtin-20.500.11937-49835
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T09:42:13Z
publishDate 2014
publisher Springer Netherlands
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-498352017-09-13T15:36:21Z Moral Degradation, Business Ethics, and Corporate Social Responsibility in a Transitional Economy Zheng, Q. Luo, Yadong Wang, S. This article theoretically proposes and empirically verifies an understudied issue in the business ethics (BE) and corporate social responsibility (CSR) literature-how moral degradation (MD) in a society influences the relationship between BE or CSR and firm performance (i.e., corporate legitimacy and competitive advantage). Building on strategic choice theory, we propose that both BE and CSR become more important in enhancing business success when the perceived MD is heightened. Our analysis of 300 firms operating in China statistically confirms our hypotheses: first, under high MD, firms' engagement in CSR results in higher corporate legitimacy and competitive advantage, and second, their adherence to ethical business codes leads to higher corporate legitimacy. We conclude the article by outlining the implications for both theory and practice. 2014 Journal Article http://hdl.handle.net/20.500.11937/49835 10.1007/s10551-013-1668-4 Springer Netherlands restricted
spellingShingle Zheng, Q.
Luo, Yadong
Wang, S.
Moral Degradation, Business Ethics, and Corporate Social Responsibility in a Transitional Economy
title Moral Degradation, Business Ethics, and Corporate Social Responsibility in a Transitional Economy
title_full Moral Degradation, Business Ethics, and Corporate Social Responsibility in a Transitional Economy
title_fullStr Moral Degradation, Business Ethics, and Corporate Social Responsibility in a Transitional Economy
title_full_unstemmed Moral Degradation, Business Ethics, and Corporate Social Responsibility in a Transitional Economy
title_short Moral Degradation, Business Ethics, and Corporate Social Responsibility in a Transitional Economy
title_sort moral degradation, business ethics, and corporate social responsibility in a transitional economy
url http://hdl.handle.net/20.500.11937/49835