Higher Ground

In the space of a single generation, society’s expectations of companies have radically changed. Maximizing profits while complying with the law is no longer enough: they are now expected to actively engage with environmental and social issues. Yet these issues sharply divide society, which can expose companies to sudden and costly controversies, even when they seek to act responsibly. The author, a professor of business ethics at New York University’s Stern School of Business, begins with a detailed analysis of this new context. She draws a clear conclusion: ethical approaches need to be rethought. The ethics and compliance function can no longer be content with setting rules and safeguards on the sidelines of strategic decisions. On the contrary, it must be integrated at the heart of the company’s strategy, notably in association with CSR, and empower the entire organization. Thus, every employee should be able to identify an ethical dilemma and handle it in an informed manner.