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      Business Ethics and Irrationality in SME During COVID-19: Does It Impact on Sustainable Business Resilience?

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      Frontiers in Environmental Science
      Frontiers Media SA

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          Abstract

          The COVID-19 pandemic has serious economic consequences, such as rising unemployment, and these consequences can be managed by sustaining economic activities by spurring the creation of new businesses. In this study, we examine the current state of business ethics in China, as well as the challenges, success factors, and obstacles in implementing such ethics in order to improve organizational development and business management in China. Cross-sectional data and quantitative survey were collected from 288 SMEs in China. According to structural equation modeling results, herd behavior and endowment effect have a strong relationship with business resilience. Additionally, this study found that altruism has an optimistic correlation with business resilience, and it has positively mediated China’s small business irrational behavior. The findings of this study suggest that business ethics and irrationality in SMEs can be promoted using this study’s model of SMEs, which may provide practical guidelines or implications for Chinese SMEs. Based on the findings from this study, it is recommended that business ethics can be incorporated into policies and practices of SME owners and entrepreneurs whose communities, stakeholders, and employees are committed to moral values such as decent governance and social corporate responsibilities.

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          Most cited references97

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          Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics

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            Factors determining the diffusion of COVID-19 and suggested strategy to prevent future accelerated viral infectivity similar to COVID

            This study has two goals. The first is to explain the geo-environmental determinants of the accelerated diffusion of COVID-19 in Italy that is generating a high level of deaths. The second is to suggest a strategy to cope with future epidemic threats having accelerated viral infectivity in society. Using data on N = 55 Italian province capitals, and data of infected individuals at as of April 7th, 2020, results reveal that the accelerate and vast diffusion of COVID-19 in North Italy has a high association with air pollution of cities measured with days exceeding the limits set for PM10 (particulate matter 10 μm or less in diameter) or ozone in previous years. In particular, hinterland cities with average higher number of days exceeding the limits set for PM10 (and a low intensity of wind speed) have a very high number of infected people on 7th April 2020 (arithmetic mean about 2200 infected, with average polluted days greater than 80), than coastal cities also having days of exceeding the limits set for PM10 or ozone but with high intensity of wind speed (arithmetic mean about 944.70 infected individuals, with about 60 average polluted days); moreover, cities having more than 100 days of air pollution (exceeding the limits set for PM10), they have a very high average number of infected people (about 3350 infected individuals, 7th April 2020), whereas cities having less than 100 days of air pollution, they have a lower average number of infected individuals (about 1014). The findings here also suggest that to minimize the impact of future epidemics similar to COVID-19, the max number of days per year in which Italian provincial capitals can exceed the limits set for PM10 or for ozone, considering their meteorological conditions, is about 48 days. Moreover, results here reveal that the explanatory variable of air pollution in cities under study seems to be a more important predictor in the initial phase of diffusion (on 17th March 2020, b1 = 1.27, p < 0.001) than interpersonal contacts (b2 = 0.31, p < 0.05). In the second phase of maturity of the transmission dynamics of COVID-19, air pollution reduces intensity (on 7th April 2020 with b′1 = 0.81, p < 0.001) also because of indirect effect of lockdown, whereas coefficient of transmission by interpersonal contacts has stability (b′2 = 0.31, p < 0.01). This result reveals that accelerated transmissions dynamics of COVID-19 is due to mainly to the mechanism of “air pollution-to-human transmission” rather than “human-to-human transmission”. Overall, then, transmission dynamics of viral infectivity, such as COVID-19, is due to systemic causes: general factors that are the same for all regions (e.g., biological characteristics of virus, incubation period, etc.) and specific factors which are different for each region (e.g., complex interaction between air pollution, meteorological conditions and biological characteristics of viral infectivity) and health level of individuals (habits, immune system, age, sex, etc.). Lessons learned for COVID-19 in the case study of Italy suggest that a proactive strategy to cope with future epidemics is to also apply especially an environmental and sustainable policy based on reduction of levels of air pollution mainly in hinterland and polluting cities- having low wind speed, high percentage of moisture and fog days-that seem to have an environment that may damage immune system of people and foster a fast transmission dynamics of viral infectivity in society. Hence, in the presence of polluting industrialization in regions that can trigger the mechanism of air pollution-to-human transmission dynamics of viral infectivity, this study must conclude that a comprehensive strategy to prevent future epidemics similar to COVID-19 has to be also designed in environmental and socioeconomic terms, that is also based on sustainability science and environmental science, and not only in terms of biology, healthcare and health sector.
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              Impact of COVID-19 pandemic on information management research and practice: Transforming education, work and life

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                Author and article information

                Journal
                Frontiers in Environmental Science
                Front. Environ. Sci.
                Frontiers Media SA
                2296-665X
                March 28 2022
                March 28 2022
                : 10
                Article
                10.3389/fenvs.2022.870476
                8374452b-9fb3-43a9-bff9-33ce187b9a2a
                © 2022

                Free to read

                https://creativecommons.org/licenses/by/4.0/

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