Ethical considerations in global climate and environmental business practices

Ali Hussein, Maryam; Waleed Hanna, Haneen; Kamel Mohammed Dawood, Siham; Salim Naamo, Ghazwan; Alsammarraie, Riyam; Mahmoudi, Saleh; Amini, Ata

doi:10.22126/arww.2025.12359.1381

Document Type : Research Paper

Authors

¹ Department of Educational and Psychological Sciences, Al-Turath University, Baghdad, Iraq.

² Department of Accounting and Banking Sciences, Al-Mansour University, Baghdad, Iraq.

³ Department of Management, Al-Mamoon University, Baghdad, Iraq.

⁴ Department of Business Administration, Al-Rafidain University, Baghdad, Iraq.

⁵ Madenat Alelem University College, Baghdad 10006, Iraq

⁶ Soil Conservation and Watershed Management Research Division, Kurdistan Agricultural and Natural Resources Research and Education Center, AREEO, Sanandaj, Iran.

https://doi.org/10.22126/arww.2025.12359.1381

Abstract

Multinational corporations, seeking to reconcile economic goals with
environmental stewardship, have found themselves at the center of an engaging
academic discourse; one that has increasingly examined the role of ethical
governance in promoting corporate environmental sustainability. This study
analyses whether ethical integration positively correlates with proxies of
environmental performance, including greenhouse gas (GHG) emissions
mitigation, waste reduction, energy efficiency, and renewable energy adoption.
Using a mixed research design—comprising descriptive statistics, multiple
regression analysis, and structural equation modelling (SEM)—we find that
organizations with strong ethical frameworks achieve significantly better
environmental outcomes. Specifically, the Ethical Integration Index (EII) shows a
strong correlation with waste reduction (r = 0.72), GHG emissions reduction (r =
0.68), and energy efficiency improvement (r = 0.66). Regression results further
indicate that EII explains up to 76% of the variance in waste reduction and 71% in
GHG mitigation. SEM analysis confirms both direct effects and indirect effects
mediated by innovation (λ = 0.52, p < 0.01) and regulatory compliance (λ = 0.47,
p < 0.01). These findings emphasize the crucial role of ethical decision-making in
driving corporate environmental responsibility, suggesting that corporations should
incorporate ethical governance into sustainability endeavors. The study offers
actionable insights for corporate policymakers, environmental regulators, and
sustainability practitioners concerned with long-term sustainability
transformations.

Keywords

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Ethical considerations in global climate and environmental business practices

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Articles in Press, Accepted Manuscript Available Online from 06 December 2025

Articles in Press, Accepted Manuscript
Available Online from 06 December 2025