Covid and a new generation have changed the business landscape in many ways but one that may be less on the horizon of more traditional CEO’s is the change in perception of what an Employer, Strategic Partner or Supplier should be.
Certain sectors have always brought with it a question of where your values lie and is operating in that given sector something you are okay with? Oil and Gas has become a sector where more and more younger generations are not looking to venture, not simply because of the shift in political winds, but because it doesn’t sit with their Value profile.
But now it seems the leadership team is also under scrutiny, A recent post on LinkedIn with a picture of a bumper sticker on a Tesla stating they brought a Tesla before they knew what Elon was like, highlights that even buyer habits are changing based on the personalities and/or values behind a business.
Anecdotally, at least we have certainly seen job seekers criteria increasingly include a focus on culture and the need for a bigger purpose than just a pay cheque. Along with a mission that they can align to. Any individuals or brands that were perceived to be willing to bend the rules in the name of generating profit are increasing being seen negatively.
A vast change from previous generations where “it’s just business” was used to hide a multitude of sins. We decided to research the topic, and as you might expect when dealing with morals and ethics the first page brought up a range of faith-based articles.
“Bread gained by falsehood is pleasurable to a man, but afterward his mouth will be filled with gravel.”
The opening line from one article, The watchtower also makes it very clear
“You must not steal nor deal deceitfully or fraudulently with your neighbour. . . . You must not exploit or rob your neighbour.”
—Lev. 19:11
It seems greed and dishonesty go back centuries, but unlike then, we are all far more closely connected than ever. Sound ethics and a moral foundation to your business have to go further than virtue signalling on Social Media.
Potential employees and customers are increasingly demanding more from leadership teams, moving away from transactional relationships or the simple exchange of money for services or, in the case of an employee, their time for a pay cheque.
A poll carried out by Monster highlighted only 10% of Canadians would take a job overlooking ethics; and almost 44% would never work for an unethical firm.
Ethics Drive Profits
There’s a misconception that ethical business practices come at the expense of profits. Numerous studies show the opposite is true. The Institute of Business Ethics found that ethical businesses can generate 10.7% more profit than their unethical counterparts. Similarly, Ethisphere observed a clear correlation between ethical companies and strong stock market performance. Consumers are voting with their wallets, and ethical companies are winning.
Employees Want Meaning, Not Just Money
The definition of a desirable workplace is changing. Today’s workforce seeks more than just a paycheck. 56% of employees believe companies with strong ethics perform better in the long run. Nearly 54% would even take a pay cut to work for a more ethical company. This highlights the importance of a strong company purpose. Ninety-three percent of workers believe companies need to focus on more than just making money. A company’s values and mission statement are no longer afterthoughts. They are crucial factors in attracting and retaining top talent.
Building a Strong Ethical Culture
So how can businesses adapt to this new landscape? The answer lies in creating a strong ethical culture. Here are some key points:
Leadership by Example: Leaders set the tone for the organization. Their actions and decisions should reflect the company’s ethical values.
Clear Code of Ethics: A well-defined code of ethics provides a framework for ethical decision-making throughout the organization.
Open Communication: Employees should feel comfortable raising concerns about unethical behavior without fear of retaliation.
Training and Development: Employees need ongoing training on ethical behavior and company policies.
The Bottom LineOperating ethically is no longer a choice, it’s a necessity. Companies that prioritize ethics will not only attract loyal customers and talented employees, but they will also be better positioned for long-term success. In today’s competitive landscape, a strong ethical foundation is a powerful differentiator.
Additional Considerations:
The impact of COVID-19 on business ethics and corporate social responsibility (CSR) initiatives: The pandemic has highlighted the importance of ethical practices, particularly in terms of employee well-being and community support.
The growing importance of environmental, social, and governance (ESG) programs: Businesses are increasingly expected to address environmental and social issues. ESG programs provide a framework for companies to measure and report on their performance in these areas.
- The role of emotional intelligence in ethical leadership: Emotionally intelligent leaders are better equipped to create a positive and ethical workplace culture. They can foster empathy, build trust, and inspire ethical behavior among their teams.
Where once the C-suite only feared being caught out by outsiders or negative PR, it is now increasingly the case companies must actually live up to their public image.
From our perspective, it can only improve society, so long may it continue.
Sources:
BusinessDIT
Harvard Business School
Seattle University
JW.Org
Investopedia
Marquette University
Watchtower
