Best for you vs best for all of us
Ethical business practices are in the DNA of many successful companies . Issues such as globalisation , the globalisation , sustainability and human rights have steadily increased pressure to balance making a profit with protecting society ’ s interests . It ’ s no longer good enough to focus on being the best in the world ; it ’ s all about being the best for the world .
By Joanne McIntyre , Stainless Steel World
Why should companies embrace ethical business practices ? Apart from basic human decency , many factors are at play including public pressure ( social causes , environmentalism ), national and international law ( e . g . sanctions , conflicts , trade disputes ), public perception and reputation , etc . I choose to believe that most people are inherently good and want to treat their employees , supply chain partners , customers and the environment with respect and integrity . However , no company can assume everybody is on board with their ideals ; management must strive to instil their company ’ s code of ethics in every employee . The most important factor in determining a company ’ s ethical behaviour is its internal business culture .
Warren Buffet stated : “ Culture , more than rulebooks , determines how an organisation behaves .” Essentially , how a company perceives and monitors itself sets the tone for its employees ’ behaviour . There ’ s no room for a “ do as I say , not as I do ” attitude . Even decent people may be tempted to misbehave without a strong corporate ethical culture . Bribery , insider trading , and discrimination are all transgressions that may start small and escalate rapidly , undermining a company ’ s reputation , performance and credibility and ultimately existance . While laws may define the scope of a business ’ s legal activities , ethics provide a basic guideline for its employees to follow .
“ Culture , more than rulebooks , determines how an organisation behaves .”
- Warren Buffet .
Gaining – and keeping - trust Embracing ethical business practices enables a company to build trusting relationships with customers , employees , and the global market . You may be surprised to learn that it also creates a competitive advantage ; demonstrable ethical behaviour is a powerful motivating factor for customers . It boosts brand recognition and growth , customer retention and growth , negotiating power , and trust in its products and services . In the long term , ethical companies attract more talent and investment . 1 Companies that fail to meet customers ’ expectations - or worse , lie about their business practices - risk permanent reputation damage , falling revenue and losing customers ; consider the fates of Enron , Lehman Brothers , and Bernie Madoff . Some recent examples :
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In May 2023 , HSBC shareholders , who wanted the bank to reduce
46 Stainless Steel World September 2024 www . stainless-steel-world . net