As an ethics speaker, business ethics consultant and author, I often get audience questions about the relationship between corporate social responsibility (CSR) and good business ethics: are they one in the same? Not exactly.
To answer the question, of what are some benefits of good business ethics practices? we need to better define what we’re talking about. In a recent article for Forbes, Jeffrey Bartel related:
“Business ethics is a broader concept [than CSR] that should govern everything a business and its people do. A company that operates ethically often makes decisions that support strong corporate social responsibility.”
Then and Now
As Bartel related in his Forbes piece, the old model of social responsibility, directed organizations to commit to four areas: profitability, legality, ethics and philanthropy. However, I can assure you as a business ethics speaker and ethics consultant, the four areas were never taken to be equal partners. The order of the above areas was (and in many modern cases), are listed in about the correct order. By the time many organizations got around to ethics most board members laughed at the thought of placing good business ethics above profit drivers.
The pattern has slowly been shifting. We are now focused on something far more authentic and heartfelt. As Jeffrey Bartel related: “the triple bottom line is upending the pyramid, replacing it with a triune obligation toward profits, people and the planet.”
The shift has placed corporate social responsibility as the new ethical imperative. The difference between the two, business ethics models I show above is far too important for organizations to dismiss.
Where’s the business ethics?
As a business ethics speaker, I am quite pleased to see the shift. To break down the latter model of profits, people and the planet. Let us see what should be implied. In fact, I would share that this is what job applicants want to see. By the way, “greenwash” is catastrophic; faking social action will no longer work.
Profits imply that organizations are entitled to make money as long as the company is ethical in doing so. There is no fanfare in being ethical, applicants want proof of what you are doing.
Profitability implies the company has not been involved in financial, legal or discriminatory litigation. The new shift in business ethics is one where applicants are more than likely to check social media well before the annual report. The social media can’t be easily tamed or suppressed. If an organization is being sued, for example, due to cost cutting of ingredients in food or pressuring sales people to open fake accounts or for accepting bribes from vendors, it will be noticed. It is far more important to Millennials and Gen-Z that a company has reduced profits in a shift to do good, than to simply aim for an ever-higher profit margin.
People. How are companies treating their people? This is a high ethical imperative. Are there issues around sexual harassment? How about acts of racial discrimination and a failure to be inclusive? What is the company’s stance on creating and committing to a hybrid workplace? What about medical benefits and a non-judgmental support of mental health issues? This is just the start of a mindset that “says” we stand behind our people because we believe it is ethical to do so.
Planet. Polluters beware. Good ethics demands that organizations are committed to reducing carbon emissions, doing positive things for the environment, recycling and the full effort to source from vendors and sub-contractors who are equally committed.
What are some benefits of good business ethics practices?
Essentially, in this new shift of the workplace, business ethics implies that corporate social responsibility and ethics are interchangeable. There are no gray areas to doing the right thing. The benefits of good business ethics implies that a corporation is a responsible citizen and, in that responsibility, the company’s best product will ultimately be in service to humanity and the betterment of the planet.
If it all sounds lofty, it is, but then again unethical behavior has cost us all – mightily. Why not try a shift for the ethical good?
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