Reconciling ethics and performance

“Business ethics” refers to the full set of values, principles and standards that guide decisions and behaviors within a company. It aims to conjugate economic objectives with a commitment to environmental, social and governance (ESG) criteria. Every year, various scandals serve as a reminder of this issue’s vital importance: Volkswagen and its “Dieselgate”, Wells Fargo and its deceptive banking practices, Wirecard and its accounting frauds, or Boeing and the 737 MAX’s safety flaws. These crises, sometimes fatal, illustrate what is at stake when an organization fails to establish practices that are in keeping with the values it claims to uphold.

Inversely, some companies make ethics a genuine performance lever. For example, Unilever has integrated sustainable development into its economic model, demonstrating that it is possible to combine growth and positive impact, while Patagonia has built its reputation and success on respect for the environment. This contrast shows that, far from being limited to a constraint or a simple communication theme, ethics can also become an asset.

Disturbingly, in most ethical crises, rules and values were nevertheless well established, and control processes in place. Certain companies even went so far as to state ambitious commitments. Why, then, did such drifts occur? What differences separate companies that stumble on ethical issues from those that turn them into a springboard?

First of all, ethical issues have become extraordinarily complex in a world in which opinions are shifting and polarized. It is no longer enough to seek to be irreproachable, we also have to adopt a posture of active listening and react with agility. Then, beyond stated principles, it is always the individual decisions that make the difference. Ethics must therefore truly permeate the culture of the entire company.

This implies resolving concrete questions. Does every employee know what decisions are expected of them? Do they have the resources to help them when faced with a dilemma? Do they feel safe to raise ethical issues when they perceive them? It is by responding to these challenges that ethics can truly become a lever of transformation and resilience for companies.

In this synopsis:
– From ethics to value: measuring the effects of responsible choices
– Laying the foundations for ethical behaviors within the organization
– Freeing employees’ voices on ethical questions