This archive report was first published on 5 November 2019.
As the business landscape continues to evolve, one thing remains constant: the importance of ethics in business survival. In an era where corporate governance is a hot topic, it's easy to get caught up in the discussion around ideal principles and growth. However, at the core of corporate governance lies the need for ethical practice as the key to basic survival.
Kenya, like many other countries, has its share of stories about organisations and enterprises that have failed to meet their mandates. A closer look at these organisations reveals a clear link between a lack of ethics and their ultimate failure. Ethics breeds integrity, which in turn breeds profitability and mutual success. The opposite is undoubtedly true.
Upholding ethical standards, however, does not come easy. It requires heavy lifting to get off the ground, and the more the need for ethics and governance is emphasised, the more some organisations struggle to comply. Sadly, most of these organisations are led by captains of industry who profess all things integrity but rarely uphold it in practice.
As the economic environment and climate change put all businesses under pressure, the need for compliance is non-negotiable. It's perceived as an imposed discipline, but it should become an integral part of a company's culture. Compliance to ethical standards should never be whimsical; it warrants a top-down approach, with demonstration of commitment through documentation, sensitisation, and buy-in across the business by all stakeholders.
Brands are built with products, service, and culture, which reflects the heartbeat of the organisation. A positive and responsible social outlook is an obligation for every business and can be used well to promote business interests. Both the spoken and body language of every personnel representing a brand must reflect an ethical culture.
So, why should the emphasis on ethics and governance arise? The ethos of each business and the way it is managed create a perception about the brand, and people develop identity and loyalty based on it. Such organisations stand out of the crowd, making better sense to the public. The brand becomes credible, and the business is sustainable as customers value that business with respect.
