Determinants and effects of using ethical management system in Korean logistics companies

Abstract

Ethical management is not a choice for companies, but a necessity. This study, therefore, filled a need for further research into ethical management. We looked at the factors involved in a company’s employment of an ethical management system and relationships between factors to determine how the subordinate variable, the ethical management system, affects the performance of an enterprise.In specific, this study identified internal and external factors involved in ethical management systems in Korea’s domestic shipping and port logistics companies. We investigated the impact of these factors on organizational performance variables and each level of the ethical management system.According to empirical findings, only internal factors such as openness and internal integrity, and external factors such as normative and cognitive environments, had positive effects on the use of an ethical management system. On the other hand, transparency, which is an internal factor, and regulatory environment, which is an external factor, had no positive impact.