International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)

Abstract

Ethical Compliance to the Anti-Financial Crime Regulations

Author(s): Haitham Nobanee, & Noura Ahmed Al-Suwaidi

Purpose: This paper aims to explore several issues related to financial market that come under the umbrella of financial ethics in association with the influence of Corporate Governance (CG), Corporate Social Responsibility (CSR) and sustainability disclosures on organizational performance. Design/Methodology/Approach: A survey was developed to collect the required information on specific ethical related practices that include corporate governance, CSR and Sustainability in the UAE stock market listed corporations. Findings: The findings of our study show significant impact of corporate governance and CSR on organizational performance. On the other hand, sustainability has neutral effect on performance. The findings of our study will contribute in preparing a guide for regulators to properly govern the listed corporation, limit the volatility of share prices and enhancing the stability of financial markets by developing a valid model in which the policy implications are fully covered through ethical practice. Research limitations: This study is limited, as the sample represented does not cover all the required listed corporations. Further analysis should be conducted to better understand the factors that affect the UAE stock market and build upon it a better working model. Practical implications: This study may be useful to academics, governments and authority seeking to improve the state of the financial market through better legislation and law enforcement. Also, this study is useful to capture the other factors related to compliance and may be useful for FATF (Financial Action Task Force) as it can be used to re-evaluate its’ recommendations related to the use of stock markets to launder money and to inject more ethical practices related to compliance instead of targeting technical compliance alone. Originality/value: This paper is an attempt to fully examine the corporate practices that govern the UAE listed corporations in an ethical point of view.

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