Re-examining the Moderating Role of Business Ethics on the Corruption Risk–ESG Nexus: A Global Perspective

Abstract

Research aims: This study re-examines the corruption-ESG nexus and tests the universality of business ethics as a moderating mechanism globally. Design/methodology/approach: Quantitative analysis employs 7,252 firm-year observations from MSCI across the Americas, Europe, and Asia-Pacific using fixed-effects panel regression. Research findings: Corporate corruption risk significantly degrades ESG ratings. However, contrasting prior regional studies, business ethics fails to moderate this relationship globally or within major economic regions. Theoretical contribution/originality: The study challenges the universal "shielding" effect of ethics, offering empirical support for policy-practice decoupling in global governance. Practitioner/policy implications: Investors are cautioned against relying on ethical scores as insurance against corruption; formal policies do not mitigate reputational damage without substantive implementation. Research limitation: Reliance on standardized MSCI data may overlook specific cultural nuances.