(Part 2 of an ongoing series)
Buzzwords. As a business ethics keynote speaker, business ethics consultant and ethics book author, I have found that in the ethics field, we often go through a predictable cycle of calling for ever-greater ethical awareness. At the end of each cycle, a new term or buzzword is created. It is a fascinating phenomenon, often linked to a new generation entering the workforce.
In an early 2019 Forbes article by Susan McPherson, Corporate Responsibility: What To Expect In 2019, the writer of this excellent piece quotes many high-ranking executives. One such quote, from a senior director at Hilton stated:
“Corporate responsibility will increasingly make its way into the boardroom as customers expect more from brands and new investor funds crop up exclusively for companies with strong ESG performance. As CSR continues to mature and become a part of business strategy, the surround sound created by customers, investors and competitors will echo through the boardroom in 2019. The bottom line: Sustainable and inclusive growth is good business and the companies that have aligned their business growth strategies to their ethics will be a step ahead in future-proofing their business.”
A new rallying cry
Therefore, Corporate Ethics, which gave way to Corporate Social Responsibility, has become ESG, or Environmental, Social, Governance. With that change, we are assured by the prognosticators, the rise of Gen-Z (certainly not Boomers, Gen-X, or Millennials) will make corporate America toe the line supported by a groundswell of investors.
Business ethics and corporate social responsibility and how they intersect will be a given, along with perfect alignment of the stars, the eradication of all disease, war, and fraud. Millennials (some of them) and Gen-Z will influence Wall Street as never before and investors will clamor for justice, harmony and reasonable profitability.
Now, I would like to ask for a bit of ethical reality as we examine what has taken place. By the way, I would love to see Ms. McPherson’s vision fully realized, and certainly the collective mindset of those who contributed to her article. However, their comments were made in the latter months of 2018 long before anyone had heard of Covid-19, runaway inflation, hybrid offices, supply-chain issues, widening of the opioid crisis, PPP funding fraud, Crypto fraud, meme stocks or the implosion of companies such as Theranos.
This post, in no way denigrates ESG, but it does call for a dialing back of “outrage” and a hard look at the choices and consequences not just of Corporate America, but those in corporations across all generations.
Grim reaper of truth
For in the past three years alone, there was an explosion of fraud, price-gouging, sexual abuse, bullying, convictions of CEOs, mass resignations, air and water pollution, social strife and healthcare scams even as CSR has given way to ESG. The perpetrators of such scams have been found in every generation.
The grim reaper of truth, especially ethical truth, laughs in the face of buzzwords. As a business ethics speaker, business ethics consultant and book author, I realize that teaching and reinforcing ethical behavior may not be the buzzword many experts seek, but it is essential.
Both CSR and ESG are components of ethical behavior, not part from it. Every fraudulent action in the past three years has been as the result of poor choices and their consequences.
For a good sense of business, ethics can dictate CSR and ESG but a single component of ESG is no guarantee the entire corporation will be ethical. A corporation might have a sterling reputation on sustainability, but it may discover massive bribes to customers or vendors.
Business Ethics and Corporate Social Responsibility and how they intersect fall squarely on ethical training and the reinforcement of that training. Unless training is in place, the buzzwords will remain just that.
LEAVE YOUR COMMENTS!
