Strengthening Moral Values and Legal Compliance in Corporate Managerial Decision-Making Practices
Main Article Content
Abstract
Business ethics and legal obligations are two key foundations of responsible corporate management practices. This study aims to examine how moral principles and legal requirements can be harmonized in the managerial decision-making process. Using a literature study approach, this research analyzes various theories and practices that integrate ethics with formal regulations in organizational governance. The results show that the success of such alignment is influenced by factors such as ethical leadership, internal control systems, an operational code of conduct, and an organizational culture that supports transparency and accountability. The study also emphasizes the importance of ethics training and safe reporting mechanisms as instruments supporting organizational integrity. The alignment of moral values and the rule of law is proven to not only prevent violations, but also improve the quality of corporate relationships with stakeholders. Therefore, the integration of these two dimensions should be part of the structural and functional design of modern corporate management. The results of this study are expected to make a conceptual contribution to the development of a value-based managerial system and legal legitimacy.
Article Details
Section
How to Cite
References
Abdulah, M. H. A. B., Gardi, B., & Darmawan, D. (2021). Innovation in Human Resource Management to enhance Organizational Competitiveness in the Era of Globalization. Journal of Social Science Studies, 1(1), 51-58
Albu, O. B., & Flyverbom, M. (2019). Organizational Transparency: Conceptualizations, Conditions, and Consequences. Business & Society, 58(2), 268-297.
Baines, J. T., & Taylor, C. N. (2011). Ethical Issues and Dilemmas. In New Directions in Social Impact Assessment. Edward Elgar Publishing, Cheltenham.
Baumgartner, R. J., & Winter, T. (2014). The Sustainability Manager: A Tool for Education and Training on Sustainability Management. Corporate Social Responsibility and Environmental Management, 21(3), 167-174.
Boatright, J. R. (2000). Ethics and the Conduct of Business, 6/e. Pearson Education India, Chennai.
Brammer, S., Jackson, G., & Matten, D. (2012). Corporate Social Responsibility and Institutional Theory: New Perspectives on Private Governance. Socio-Economic Review, 10(1), 3-28.
Brown, M. E., Treviño, L. K., & Harrison, D. A. (2005). Ethical Leadership: A Social Learning Perspective for Construct Development and Testing. Organizational Behavior and Human Decision Processes, 97(2), 117–134.
Carroll, A. B. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons, 34(4), 39–48.
Carroll, A. B. (2015). Corporate Social Responsibility. Organizational Dynamics, 44(2), 87-96.
Crane, A., & Matten, D. (2007). Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. Oxford University Press, Oxford.
Darmawan, D., R. Mardikaningsih, E. A. Sinambela, S. Arifin, A.R. Putra, M. Hariani, M. Irfan, Y.R. Al Hakim, & F. Issalillah. (2020). The Quality of Human Resources, Job Performance and Employee Loyalty. International Journal of Psychosocial Rehabilitation, 24(3), 2580-2592.
Darmawan, D. (2024). Distribution of Six Major Factors Enhancing Organizational Effectiveness. Journal of Distribution Science, 22(4), 47-58.
Darmawan, D., Hardyansah, R., Marsal, A. P., & Da Silva, E. B. (2024). Change Management and Legal Compliance in Modern Organizations. International Journal of Service Science, Management, Engineering, and Technology, 6(3), 11-16.
Donaldson, T., & Dunfee, T. W. (1999). Ties That Bind: A Social Contracts Approach to Business Ethics. Harvard Business School Press, Boston.
Eddine, B. A. S., & Fared, M. A. (2024). Enterprise Strategy to Sustain Continuous Innovation and Product Quality Consistency in a Saturated Market. Bulletin of Science, Technology and Society, 3(3), 55–61.
Ellermann, A. (2014). The Rule of Law and the Right to Stay: The Moral Claims of Undocumented Migrants. Politics & Society, 42(3), 293-308.
Fajarudin, M., Negara, D. S., & Putra, A. R. (2024). Internal Audit Obligations and Corporate Legal Liability for Corruption. Journal of Social Science Studies, 4(1), 303-312.
Ferrell, O. C., & Ferrell, L. (2008). A Macromarketing Ethics Framework: Stakeholder Orientation and Distributive Justice. Journal of Macromarketing, 28(1), 24-32.
Fombrun, C., & Shanley, M. (1990). What’s in a Name? Reputation Building and Corporate Strategy. Academy of Management Journal, 33(2), 233–258.
Futriyah, S., Mardikaningsih, R., & Aliyah, N. D. (2023). Legal Pluralism and the Role of Traditional Mediation in the Settlement of Inheritance Disputes in Multicultural Societies. Journal of Social Science Studies, 3(1), 249-258.
Gardi, B., & Darmawan, D. (2022). The Role of Manager Behavior in the Utilization of Accounting Information for Corporate Strategic Decision Making. Journal of Social Science Studies, 2(1), 111-118.
Greenberg, J. (2002). Who Stole the Money, and When? Individual and Situational Determinants of Employee Theft. Organizational Behavior and Human Decision Processes, 89(1), 985–1003.
Greve, H. R., Palmer, D., & Pozner, J. E. (2010). Organizations Gone Wild: The Causes, Processes, and Consequences of Organizational Misconduct. The Academy of Management Annals, 4(1), 53-107
Hardyansah, R., Putra, A. R., Khayru, R. K., & Arifin, S. (2023). Legal Implications of the Job Creation Law on the Concept and Liability of Individual Companies in Indonesia. Journal of Social Science Studies, 3(1), 259-270.
Hariani, M., & Mardikaningsih, R. (2021). Implementation of Value-Based Management in Multinational Organizations Facing Cultural Differences. Journal of Social Science Studies, 1(1), 67-72.
Hariani, M., & Mardikaningsih, R. (2024). Encouraging Employee Engagement in Sustainability Initiatives to Improve Organization Performance and Sustainable Achievement of Social Goals. International Journal of Service Science, Management, Engineering, and Technology, 6(3), 6–10.
Hariani, M., & Putra, A. R. (2024). Psychological Capital as Strategic Capital to Improve Job Performance. Bulletin of Science, Technology and Society, 3(2), 38-43.
Heath, J. (2014). Morality, Competition, and the Firm: The Market Failures Approach to Business Ethics. Oxford University Press, Oxford.
Homburg, C., Stierl, M., & Bornemann, T. (2013). Corporate Social Responsibility in Business-to-Business Markets: How Organizational Customers Account for Supplier Corporate Social Responsibility Engagement. Journal of Marketing, 77(6), 54-72.
Hosmer, L. T. (2004). The Ethics of Management (5th ed.). McGraw-Hill, Boston.
Jannah, S. M., & Mardikaningsih, R. (2023). Strategies for Improving Bureaucratic Efficiency and Employee Performance. International Journal of Service Science, Management, Engineering, and Technology, 4(2), 10-14.
Jipescu-Munteanu, C. (2022). Corporate Compliance and Ethics Challenges: An European Perspective. In Routledge Handbook of Risk Management and the Law. Routledge, 236-243.
Jones, T. M. (1991). Ethical Decision Making by Individuals in Organizations: An Issue-Contingent Model. Academy of Management Review, 16(2), 366–395.
Kaptein, M., & Wempe, J. (2002). The Balanced Company: A Theory of Corporate Integrity. Oxford University Press, Oxford.
Kishore, K., & Nair, A. (2013). Transcendental Leaders are the Moral Fiber of an Organization. Journal Of Business Management & Social Sciences Research, 2(7), 57-62.
Kourtesopoulou, A. (2022). Corporate Governance and Business Ethics. In Corporate Social Responsibility and Governance. Routledge, 150-165.
Macaulay, S. (2018). Non-Contractual Relations in Business: A Preliminary Study. In the Sociology of Economic Life. Routledge, 198-212.
Mardikaningsih, R., & Darmawan, D. (2022). Situational Leadership Strategies to Improve Change Manage-ment and Team Performance. Journal of Social Science Studies, 2(1), 247-252.
Mardikaningsih, R., & Darmawan, D. (2023). Building Sustainability Policies Relevant to Local Cultural Values. Journal of Social Science Studies, 3(1), 127-132.
Miceli, M. P., Near, J. P., & Dworkin, T. M. (2008). Whistle-Blowing in Organizations. Routledge, New York.
Neuman, W. L. (2006). Social Research Methods: Qualitative and Quantitative Approaches (6th ed.). Pearson Education, Boston.
Nugraha, B. E. C., Arifin, S., & Darmawan, D. (2024). Legal Basis for the Protection of Workers' Rights and Employment Contracts in the Startup Ecosystem of the Flexible Work Era. Journal of Social Science Studies, 4(1), 43-50.
Nugroho, A. W., Darmawan, D., & Arifin, S. (2024). The Authority of Startup Directors and the Legal Responsibility for Corporate Management. Journal of Social Science Studies, 4(1), 313-322.
Oluwatoyin, F., & Mardikaningsih, R. (2024). Challenges and Opportunities for Sustainability of Human Resource Development in Industry 4.0. Bulletin of Science, Technology and Society, 3(2), 9–16.
Paine, L. S. (2003). Value Shift: Why Companies Must Merge Social and Financial Imperatives to Achieve Superior Performance. McGraw-Hill, New York.
Punch, K. F. (2005). Introduction to Social Research: Quantitative and Qualitative Approaches (2nd ed.). Sage Publications, Thousand Oaks.
Putra, A. R., & Arifin, S. (2023). Ethical Principles in Corporate Financial Management: A Literature Study on Investment and Risk. Journal of Social Science Studies, 3(2), 221-226.
Putra, A. R., Anjanarko, T. S., Ernawati, E., & Masithoh, N. (2022). Development of Employee Work Productivity Through Support of Work Facilities and Management Information Systems. International Journal of Service Science, Management, Engineering, and Technology, 2(3), 19-23.
Saak, A. E. (2012). Collective Reputation, Social Norms, and Participation. American Journal of Agricultural Economics, 94(3), 763-785.
Saleem, A. (2022). Ethical Dilemmas in Business Decision Making: Navigating the Moral Maze in the 21st Century. Journal of Business Management, 1(02), 116-124.
Saputra, D. E., Darmawan, D., & Negara, D. S. (2024). Directors’ and Commissioners’ Liability in Corporate Insolvency: A Comparative Jurisprudential Study. International Journal of Service Science, Management, Engineering, and Technology, 5(3), 29-38.
Setyastomo, D., Mardikaningsih, R., & Sulani, S. (2024). Legal Implications of Beneficial Ownership Disclosure in Closed Companies on Strengthening the Anti-Money Laundering System in Indonesia. Journal of Social Science Studies, 4(1), 67-74.
Sievers, G. (2021). Perspectives, Implementability and Measurability of Ethical Principles in Management. In SHS Web of Conferences. EDP Sciences, 115, 1-7.
Sinambela, E. A., Darmawan, D., & Mendrika, V. (2022). Effectiveness of efforts to establish quality human resources in the organization. Journal of Marketing and Business Research (MARK), 2(1), 47-58.
Sinambela, E. A., Mardikaningsih, R., Arifin, S., & Ayu, H. D. (2020). Development of Self Competence and Supervision to Achieve Professionalism. Journal of Islamic Economics Perspectives, 1(2), 33-42.
Treviño, L. K., & Brown, M. E. (2004). Managing to be Ethical: Debunking Five Business Ethics Myths. Academy of Management Executive, 18(2), 69–81.
Treviño, L. K., & Nelson, K. A. (1999). Managing Business Ethics: Straight Talk about How to Do It Right. John Wiley & Sons, New York.
Verschoor, C. C. (2006). Audit Committee Essentials. Wiley, Hoboken.
Voegtlin, C. (2016). What does it Mean to be Responsible? Addressing the Missing Responsibility Dimension in Ethical Leadership Research. Leadership, 12(5), 581-608.
Weaver, G. R., & Treviño, L. K. (2001). The Role of Human Resources in Ethics/Compliance Management: A Fairness Perspective. Human Resource Management Review, 11(1-2), 113–134.
Woiceshyn, J. (2011). A Model for Ethical Decision Making in Business: Reasoning, Intuition, and Rational Moral Principles. Journal of business Ethics, 104 (1), 311-323.
Wood, G. (2002). A Partnership Model of Corporate Ethics. Journal of Business Ethics, 40(1), 61–73.