Do environmental and ethical aspects of interfunctional coordination lead to smaller business performance?

Abstract

The paper deals with interfunctional coordination (IFC) from ethical and environmental point of view. It will be interesting to know if the parts of IFC connected with ethical and environmental aspects have positive or negative influence on business performance. Data was gained from 60 SMEs producing electrical equipment and electronic components in the Czech Republic. Survey questionnaire and critical discussion with the literature were used. Kaiser-Meyer-Olkin (KMO) test and Bartett’s sphericity test were applied. For analysing the influence of ethical and environmental aspect on business performance Spearman’s rank correlation was used. The results show: (1) a positive relation between ethical aspects and business performance, (2) no positive relation between implementation of environmental aspects and business performance, and (3) no difference in results in marketing business performance and financial business performance. The results can suggest that a preference towards ethical decisions and behaviour leads to a higher business performance and by contraries, environmental aspects leads to smaller business performance. The collected data shows that environmental and ethical decisions of managers in the Czech Republic can differ from environmental and ethical decisions of managers in different countries.