Long-term evolution of business ethics in Hong Kong

This paper applies the distribution dynamics analysis (DDA) technique in business ethics research using proprietary data measuring the general public's perception of business ethics levels in 206 major companies operating in Hong Kong. The data is comprehensive and longitudinal, consisting of 10,773 interviews collected between 2012 and 2016, transformed into a summary score of the perceived business ethics standards of Hong Kong companies, i.e., the relative Confucian business ethics score (RCBES). The study documents a slow long-run convergence process in business ethics levels across the companies operating in Hong Kong towards the RCBES value of 1.02, i.e., slightly above the average RCBES equal to 1. The results also indicate the emergence and migration of two convergence clubs with a smaller and larger group of companies clustering to the RCBES values below (0.87) and slightly above (1.02) the average value. The paper offers several implications and avenues for future research directions.