Impact of Ethical Climate on Corporate Reputation and Corporate Sustainability Approach

Abstract

Purpose –  Ethical climate, corporate reputation and corporate sustainability practices, which have a very important place in contemporary management approach, are the original basic resources of the enterprise and make it different from its competitors. The aim of the study is to scientifically reveal the interaction of these three issues and to raise awareness about the importance of this interaction in ensuring the sustainability of institutions.

Design/methodology/approach - Structural equation modeling (SEM), which models complex relationships between multiple variables, was used in the study. The research was carried out with simple random sampling, on 448 managers working in successful and reputable institutions in Turkey, using the survey method, one of the quantitative data collection methods. The data were analyzed with the Structural Equation Model SmartPLS application.

Findings –  According to the results, it has been determined that ethical climate has a significant, positive impact on corporate reputation and sustainability, at the same time corporate reputation has an intermediary role in this effect.

Discussion –  In terms of ethical climate, reputation and sustainability in corporate practices, it has been revealed that the most important variables are product-service, attraction power of the institution, laws and codes. Institutional studies should focus on these areas. It is recommended to establish academic and social training programs on ethical climate, corporate reputation and sustainability, and to repeat similar studies with different time and target groups.