Business Sustainability in Asia

CHAPTER 8Ethical Dimension of Sustainability

1. EXECUTIVE SUMMARY

Ethics in the generic term, which is driven by a combination of individual and/or family values, moral principles, religious beliefs, cultural norms and best practices. Individual's values are derived from moral principles that define what is right or wrong, whereas an individual's choices are actions taken in doing what is right or wrong. The 2007–2009 global financial crisis was partially caused by a number of ethical lapses by both organizations and individuals involved in the mortgage markets, including mortgage originators, financial intermediaries, investment banks, and mortgage borrowers. These lapses collectively contributed to the 2007–2009 global financial crisis and resulted in the global economic meltdown, and have threatened the sustainability of individuals, businesses and governments. The crisis and related financial scandals have caused policymakers, regulators and ethics advocates to ask the question: To what extent do ethics and corporate culture affect the business process? Another question posed is whether ethics performance should be reflected in overall corporate reporting. This chapter addresses these and other ethics-related questions in the context of the ethical dimension of sustainability performance worldwide and particularly in Asia.

2. INTRODUCTION

Ethics are broadly described in the literature as (1) moral principles about right and wrong and (2) honorable behaviors reflecting ...