An Evolutionary Perspective on Corporate Ethical Behavior: 'Ethics Follows Strategy'

Prior research on business ethics has long explored an optimal corporate ethical principle and whether such a principle-following behaviors increase organizational performance. However, the prior research often takes a static and firm-focused approach, which largely ignores the dynamic nature of the corporate environment. Building on the evolutionary perspective, we argue that corporate ethical principles and behaviors should vary to reflect changes in the business environment. As a corporation grows, stakeholders’ expectations, needs, and regularities change and become more diversified and sophisticated. It requires a corporation to adopt a strategically appropriate ethical principle and behavior accordingly. To do so, a corporation needs a capability to scan and interpret new ethical issues arising from the changes in business environment.