ETHICAL DECISION-MAKING AND ITS IMPACT ON REPUTATIONAL RISK MANAGEMENT AND STAKEHOLDER EXPECTATIONS IN COMPETITIVE BUSINESS ENVIRONMENTS

Ethical decision-making is a pivotal factor in managing reputational risks and meeting stakeholder expectations in competitive business environments. This study investigates the impact of ethical decision making on reputational risk management, stakeholder expectations, and business sustainability, using Nestlé Plc Nigeria as a case study. The specific objectives are to: examine how ethical decision-making influences reputational risk management, analyze its relationship with stakeholder expectations, and assess its effect on business sustainability in profit-driven industries. A descriptive survey design was adopted, the population comprises of 850 employees and stakeholders from Nestlé Nigeria’s operational headquarters in Lagos State, Nigeria and Sample size of 150. Data was collected via structured questionnaires, validated through expert review and pilot testing (Cronbach’s Alpha = 0.82), and analyzed using descriptive statistics, Pearson correlation, and regression analysis. The findings reveals that ethical decision-making significantly enhances reputational risk management (? = 0.95, p < 0.001), strengthens stakeholder expectations (? = 0.93, p < 0.001), and drives business sustainability (? = 0.91, p < 0.001). The study concludes that integrating ethical decision-making into corporate strategy is indispensable for sustaining competitive advantage and stakeholder confidence. Recommendations include implementing continuous ethics training, allocating resources for ethical compliance, and enhancing stakeholder engagement platforms. These measures will reinforce Nestlé’s commitment to transparency and accountability, ensuring alignment with global best practices.

0 18 May, 2025

pg: 13

JBMIC PORTAL SYSTEM

Contri. 4+