Business Ethics in Latin America and Its Impact on Sustained Economic Growth

Abstract

Some of the major emerging economies in Latin America (LA) include Argentina, Brazil, Chile, Peru, and Mexico. The discussion themes during the 2013 World Economic Forum on Latin America included understanding the private sector's role in safeguarding business ethics, corporate social responsibility, sustainability, and concern for the environment. Inputs into business ethics include individual values, organizational culture, national culture, and local business climate, including level of corruption, ethics legislation, and governmental bureaucracy (Stajkovic & Luthans, 1997). A conceptual model of business ethics in terms of governance, processes, and stakeholders is presented. Various models of ethical decision-making processes, including the social-cognitive theory (Bandura, 1986), are reviewed. Models of ethical behavior and the influence of Hofstede cultural dimensions, religion, Internet, and social media are also reviewed. Various measures of business ethics, including the Business Ethics Index (Tsalikis, et al., 2013), the Corruption Perception Index (Transparency International, 2012), the Freedom from Corruption Index, and the Economic Freedom Index (Heritage Foundation, 2013) for LA countries are reviewed. The Business Ethics Index can be a leading indicator of economic growth (Tsalikis, et al., 2011). Good business ethics generate trust and lead to sustained economic growth (Hunt, 2012).