Despite their potential significance, ecological determinants of ethical and sustainable business behavior have been largely unexplored in business ethics research. This study examines the impact of parasite stress – a critical bio-ecological factor that has been found critical for attitudes, intentions and behaviors – on firms’ environmental sustainability practices. Parasite stress refers to the prevalence of parasitic diseases like malaria and schistosomiasis, which thrive in specific climates that support their life cycles. We argue that higher levels of parasite stress, by affecting immediate economic and social concerns, constrain society’s ability to prioritize long-term environmental goals, thereby negatively influencing firms’ adoption of environmental sustainability practices. Drawing on firm-level data of nearly 20,000 firms across 37 countries from the World Bank Enterprise Surveys and country-level parasite stress data, the results show that firms in countries with higher disease prevalence are less likely to adopt environmental sustainability practices. The study’s findings highlight the importance of considering ecological factors in business ethics and raise critical ethical questions regarding the balance between immediate economic and social needs versus long-term environmental needs. We discuss the implications of the results for business ethics research and suggest several future research avenues to improve the understanding of ecological factors for ethical and sustainable firm decision-making, strategies, and behaviors.
