Companies with a strong ethical identity tend to maintain a higher degree of stakeholder satisfaction, positively influencing the financial results of the company. Conversely, lack of personal and professional ethics can lead to negative financial results. This article explores how effective, entrepreneurial and prudent management can deliver the long-term success of a business.
The quality of corporate governance in South Africa has been consistently high for many years. In 2018, The Ibrahim Index of African Governance placed South Africa 7th out of 54 African countries, using safety and rule of law, participation and human rights, sustainable economic opportunity, and human development as measurement criteria. However, without the necessary management tools, the continuing influence of corruption and economic strife in the country could be affecting local entrepreneurs and small businesses.
The first step in understanding business ethics is learning to recognise an ethical issue: people who practice good integrity can recognise the difference between right and wrong and they consistently strive to set an example of good conduct. In a business setting, ethical behaviour means applying these principles of honesty and fairness to relationships with co-workers and customers.
The goal of sound ethics and an ethical culture is shared by most organisations. However, building and maintaining an ethical organisation is often made more difficult because the management of ethics is not prioritised. Ethics is frequently only addressed reactively after a problem has occurred, or in an ad hoc way.
A clear ethics strategy is needed to better enable the organisation to realise its ethical goals. Ideally, this strategy needs to include five focus areas: setting ethical standards, creating a committee of ethical leaders, building awareness, measuring and monitoring the business’s ethical status, and taking action to ensure the integrity is maintained. These honourable practices not only lead to an enhanced business reputation, but also help bring in additional customers, generate positive publicity, and can help solidify support for the organization in times of crisis and controversy.
C&L Skills Management offers a comprehensive Corporate Ethics programme that covers corporate social responsibility, whistleblowing, insider trading, conflict of interest, code of conduct, human rights, corporate governance, code of ethics, ethical practices, moral principles, and more. After this course, you will be able to recognise all ethical practices that require critical thinking and will have a deep understanding of ethical leadership principles and best practices.
To find out more about our Corporate Ethics course, contact us at email@example.com.