Transcript from the Business Ethics video:
All organisations whether they be commercial, public or not for profit need to balance their books. So, financial probity is important. The problems come when profit becomes the over-riding purpose of the organisation and all decisions are measured in monetary terms.
One reaction to the dubious if not totally unethical decisions made by some high profile organisations recently is the call for greater regulation. At Elgood we don’t believe this will solve the problem.
If an organisation seeks to achieve survival in the medium to longer term we believe they need to have a decision-making process based on a strong set of values clearly communicated throughout the organisation. Those tasked with decision making, particularly strategic and policy decisions, need to give greater weight to other performance indicators.
By building a decision-making process which enables everyone to see how their decisions align with the organisations values and the impact of these decision on success they can create a stable and profitable organisation.
The society within which organisations operate has changed. It’s no longer sufficient to focus purely on financial stability. How you go about your business matters just as much as what you do.
Fiat Chrysler lost $2.3 billion in stock value following accusations that they had installed software to cheat emission tests. VW lost 30% of its value. In both cases the bottom line and delivering against targets set by the management drove unethical behaviour. The net result was a catastrophic impact on financials and long-lasting damage to their brands.
Experiential learning is the most effective way of ingraining values in business as usual. To find out more about how we can help please contact us.