Bradwell Mhonderwa Business Ethics
Companies are unique in terms of their size, complexity, resource base, industry, product line and management, and this uniqueness has a strong bearing in determining whether the business becomes successful or not. However, one other aspect that is central to the success of a business, which has tended to be subordinated to other factors, is business ethics.
Acting ethically and meeting reasonable stakeholder expectations is a business success factor that is grounded in the development of a business culture that is sensitive to both the short-term and long-term needs of the business and its stakeholders, including those of the nation as a whole.
Amongst a business’s stakeholders are customers, shareholders, employees, suppliers, investors, regulators, the nation, and communities in which it does business.
From the business, customers want quality products and employees want their welfare to be taken care of. Investors want a return on investment, and shareholders want value for their money. Communities want schools, roads and hospitals to be built, and the natural environment needs preservation for posterity. Suppliers want timeous payment for services rendered, and the nation wants to see the business contributing towards national development.
A responsible enterprise should therefore generate revenue by satisfying customer needs. It should attract funding by meeting investor expectations, and it must increase efficiency and effectiveness by attracting competent staff.
A responsible business must secure community goodwill by genuinely involving the community in its operations, and should contribute towards national development by providing employment and contributing to the fiscus. A responsible business should practise transparency and accountability in financial matters, and must not short change customers.
It should comply with the laws of the land, and must observe industry rules and regulations, including its own policies and procedures.
Businesses, whether small or large, should act responsibly towards their stakeholders all the time because sound business performance and profitability only come to those that foster good relations with their stakeholders.
Businesses must integrate their major goal of making profit and increasing shareholder value with ethical and sustainability variables.
Profits made using unethical means, though gratifying in the short term, clearly don’t guarantee that more profits will continue to be made in the future, and when these profits suddenly dry up, the business become exposed to catastrophic risks that may include a sudden and painful loss of income and even going under.
Responsible businesses should therefore see the value of embracing the triple bottom line. Businesses must adopt operational processes that anchor their activities on the provision of clear behavioural guidelines and signposts to staff, including a sound corporate social responsibility (CSR) policy. A business strategy anchored on these sustainability standards will differentiate a business from its competitors making this a source of competitive advantage.
Businesses that choose to be thoughtless through reckless business decisions and actions have no future in today’s highly competitive business world, and this includes companies that are continuously seized by their everyday challenges and blinded from seeing the future of the business.
A responsible business enterprise holds an enduring purpose that goes beyond its short-term needs to inspire everyone to focus on the long-run survival of the business.
The sustainability of businesses matters because this has a bearing not only on the lives of those directly dependent on the company through employment and services provided, but also on the well-being of communities in which it does business and the whole nation. Economic growth and development and the improvement of the people’s living standards must anchor the broader objectives of every business entity.
Businesses should understand that they have a moral obligation to champion the fight against corruption, and that they play a big role in promoting the equitable distribution of wealth in the country.
A responsible business is a fortress of hope in a sea of endemic corruption and economic difficulties.
Like salt in water, it permeates to influence the whole nation bringing positive change to households and communities.
- Feedback to bradwellm@businessethicscentre.org or call 0772 913 875