Corporate scandals and global indexes: examining the roles of corruption, development, press freedom, sustainability, and democracy

Abstract

This study explores the relationship between corporate scandals and a set of global indices to understand whether governance institutions and structures, levels of economic, social, and democratic development, and freedom of the press influence the number of scandals. The study uses the Human Development Index, Corruption Perceptions Index, Sustainable Development Goals Index, World Press Freedom Index, and Democracy. The research question is whether the more corrupt, underdeveloped, and anti-democratic a country is, the greater the number of corporate scandals. The study uses descriptive statistics between 1989 and 2015 to analyze the relationship between these factors. Surprisingly, the results show that more developed countries had more reported scandals on average. The study highlights the need for governments, corporations, and civil society to work together to prevent and address corporate scandals and promote sustainable development, democratic governance, and human rights.