Financial Ethics and Social Innovation: Contemporary Reconfigurations of Value Creation in Organizations

Abstract

The interaction among financial ethics, corporate governance, and social innovation has ceased to be a marginal topic in business discussions and has become central to the strategic formulation of companies, investors, and regulators. Rather than being viewed as a moral complement to economic analysis, ethics is increasingly recognized as an essential component of investment decisions, especially in contexts marked by climate risks, social tensions, and heightened public scrutiny. This article explores how ethical principles, materiality criteria, and outcome-oriented social innovation initiatives can be integrated into a cohesive value-creation model that encompasses economic, social, environmental, and reputational dimensions. The argument unfolds through dialogue with stakeholder theory, the triple bottom line, the evolution of international reporting standards (GRI, SASB, ISSB), and the literature on institutional trust and behavioral finance. Based on this foundation, an analytical framework is proposed that structures the discussion around four interrelated pillars: integrity and institutional structure of financial decision-making; identification of material topics and risk management; social innovation aligned with strategy; and expanded accountability in relationships with investors and society. The text combines conceptual analysis with practical reflection on frequent dilemmas — such as the tension between return and impact, disputes between short- and long-term horizons, and credibility challenges in contexts of high information asymmetry — and argues that, when adopted consistently, financial ethics and social innovation function as tools for risk reduction, trust building, and the establishment of sustainable competitive advantages.