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Corporate ethics may vary from company to company. Most people think of corporate ethics as being confined to not giving or taking a bribe. But in reality it covers the entire spectrum of human relationship.

In industry, ethics involves a corporate's conduct with suppliers, customers, creditors, staff, etc. Internally, it means winning the loyalty of the staff. Making profit is not the only objective of the organisation. An organisation should ensure reasonable return for its investors.

With outsiders, it must meet its commitments to lenders on time. When you are dealing with the consumers, charge a fair price to its customers and create a feeling among them that they are getting `value for the money'.

Towards the government, a corporate is obligated to pay taxes and levies on time and comply with various legislation, rules and regulations. Companies should not resort to litigation to avoid/delay any statutory payments.

Environment protection has become an important local/global issue. An organisation should take all measures to reduce pollution. Since a corporate is part of society, it should also take up suo motu social welfare programmes or associate itself with agencies working in the areas of health, education and general public welfare.

If an organisation scores in all these aspects, it scores in the corporate ethics rating too.

A leader is a person who knows, shows and goes all the way. If an organisation desires to have a good corporate ethics record, its CEO must evolve and implement best practises for all activities. He should lead by example. This will lead to a percolation of good practices across the organisation, resulting in good corporate ethics.

Organisations with good corporate ethics will attract investors, customers, and talented people.

R. HARIHARASUBRAMANIAN

More Stories on : Corporate Governance | Offhand

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