Moral reasoning and corporate planning

The purpose of the current study is to provide a theoretical framework for an integration of ethical values into corporate planning using Activity-Based Budgeting (ABB). ABB is a well-known approach that allows managers to create and simulate a model of business activities aiming to overcome the limitations of traditional budgeting (Hansen et al., 2003; Brimson and Antos, 1999; Bunce et al., 1995; Hansen et al., 2003). More specifically, we underline the key role that moral reasoning plays in integrating ethical values into business activities and the role that ABB has vice versa in affecting moral reasoning by providing real and simulated information about firm and individual performances.