“A man without ethics is a wild beast loosed upon this world.”
— Albert Camus
All businesses have moral and social responsibilities to follow and set a good example for its customers.
When individuals and companies operate outside the moral fibre and ethical code of conduct, they open themselves to financial penalties, legal repercussions and public scrutiny.
In addition to following the letter of the law, companies must also respect and uphold the spirit of the law through transparency, honesty and integrity.
Here are a few corporate ethics for companies to follow:
1) Transparency
Transparency builds the bridges of trust between shareholders, employees and customers.
Being honest to the shareholders about company affairs, financial health and operational strength is very important.
When it comes to employees, open and honest lines of two-way communication regarding performance, career growth and compensation goes a long way.
On the other hand, transparency for customers can be the right to have quick grievance redressal and openness about the origins of products/ services.
2) Honesty
Transparency and honesty always align together. While transparency may mean how a product is made, honesty is not overcharging consumers or misleading them about product performance.
Unrealistic promises or selling products and services under false pretenses is unethical and bound to damage the company’s reputation and financial standing.
People can refuse to go into business with a firm that’s breaking the trust of its shareholders, employees and customers.
3) Compassion
Displaying compassion is a basic and fundamental quality that should be imbibed in all individuals and companies.
Compassionate conduct helps in the creation of an emotional bond with partners, employees and the public. When genuine kindness, empathy and responsibility is shown for the livelihood and troubles of others, a business is bound to succeed.
A company must aim to achieve its business goals while causing minimum negative impact on its surroundings. Considering the impact of business decisions and operations on the communities and their people is every company’s responsibility.
4) Corporate Social Responsibility
The public and the authorities always know when companies step up and go beyond expectations to help the society. Practicing corporate social responsibility(CSR) enhances a firm’s credibility and goodwill.
CSR activities can be environmental and social such as reducing your carbon footprint, generating awareness about workplace diversity and respecting gender diversity.
CSR goals should be decided based on the needs of all the involved parties in the business environment through extensive research and planning.
Written by Gagan Dhawan
