A Study on the Impact of Ethical Behaviour of Firms on Global Competitiveness Ranking

Success is journey and not a destination, is the famous quote which reminds everyone in the business that do the business for a long term benefits and not for the short one. In the globalized world, building trust with the customers from various part of the globe is a key factor for the success in the business. Ethical behavior of the firms plays major role in building trust retaining the customers. Ethical behavior confirms to following best practices, following standards, regulatory requirements and laws. It is needed to compete with others to sustain in the market and making the nation pride to march towards the betterment. The countries competency is also identified based on its Global competitiveness index. Global competitiveness index is calculated based on twelve parameters categorized under three headings namely Business Requirements, Efficiency Requirements and Innovation and sophistication factors. As both Ethical behavior of firms and the Global competitiveness index are helping to evaluate the status of countries, there should be some relationship between these two. Five years data on the ethical behavior of firms and the competitiveness index is taken for the study. Random samples are taken from the countries showing improvement, countries with declining results, and countries which exists at the same level are taken and the analysis is done. It is found that there is a strong positive correlation between Global competitiveness ranking and Technical readiness ranking.