Are you sure it doesn't matter?
Globalization, access to information, the influence of social networks, the trend towards transparency in the government of States and companies, are elements that have definitely influenced the way of doing business. The impact on the image of brands, companies and people who influence society in all areas is impossible to measure, but it cannot be denied. Are you sure that ethics does not affect business?
Introduction
"Alleged violations of the Foreign Corrupt Practices Act by Wal-Mart has cost it more than $612 million in 2015 alone in legal fees and compliance restructuring costs over the past 3 years."
A giant like this is impacted by corruption and the influence it had in the places where its illicit activity was revealed, what makes you think that on a smaller scale it does not matter?
Countries and companies cannot avoid the enormous cost that corruption has on the development of society. The poorest countries, the most institutionally immature, those suffering from undemocratic governments, usually suffer from corruption in a rampant form, causing a spiral of harmful effects and halting the development of society. In view of this, the major international cooperation structures have recognized that the importance of business ethics must be highlighted, implementing various mechanisms to ensure a development that stimulates growth and development opportunities.
THE WEIGHT OF SOCIAL OPINION
The formation of citizen organizations such as Green Peace, Transparency International, International Amnesty, at the international level, and others, at the country level, have definitely revolutionized the consciences of the potential of civil organizations. Undoubtedly, they have awakened consciences by revealing enormous acts of corruption that harm the environment, be it pollution, destruction of ecosystems, human rights, workers, public figures and many more. This is a reality, whether we like it or not, whether we share their positions or not, the fact is that they are influential and governments have recognized this and have carried out very serious studies that have supported the concern for the serious effects that corruption has on societies.
CORRUPTION AND ETHICS IN THE INTERNATIONAL ENVIRONMENT
Various international organizations have established multilateral agreements to combat corruption from the trenches of the countries' legal frameworks. The OECD (Organization for Economic Cooperation and Development) has promoted the adoption of the "Convention on Combating Bribery of Foreign Public Officials in International Business Transactions", which commits signatory countries to modify their legal structures so that companies that bribe foreign officials are punished through economic and criminal penalties. The basis of these is to strengthen transparency, manage organizations with a code of ethics and deterrence and surveillance mechanisms to maintain the system.
The OECD is not the only organization of its kind promoting transparency and attacking corruption. The OAS (Organization of American States) also requires member countries to adopt policies and legal frameworks to combat this scourge. The UN (United Nations Organization) itself proposes the adoption at the company-individual level, of various practices to avoid the lack of transparency and thus also combat corruption, with the "Global Compact" guide , which is the largest Corporate Sustainability Initiative in the world that analyzes the environment and influence of business as elements of development in world peace and proposes a model of sustainable business in which the tenth action is the adoption of improving corporate policies of "ethics and anti-corruption practices in business".
Finally, I would like to refer to another OECD document called "Guidance for Multinational Enterprises" which consists of recommendations to governments and multinational enterprises to ensure that operations between them are in harmony with the policies of States and to strengthen the basis for mutual trust between the societies where the enterprises operate, the encouragement to increase foreign investment, promoting an environment of law, sustainability and development.
We would like to comment on the efforts and pronouncements of civil organizations in this context, but that will be the subject of another commentary.
Conclusion
As these organizations (governmental and private) are major influences in the opinion and generation of regulatory frameworks, both legal and internal, all inviting the adoption of practices that provide security and fair rules for sustainable development, it is undeniable that ethics is re-emerging as one of the most important values in the business strategies of this century. Those who ignore it will be segregated from reliable markets, will lose business opportunities, will assume political and image costs that cannot be determined, and in the end, in any case, will be immersed in laws and rules that will be an important part of the new business environment.
If you would like further information, please do not hesitate to contact the Kreston CSM office nearest you.
