We could think that the answer is obvious: I manage ethics because the law compels me to do so, because I want to avoid a scandal that affects the reputation of my company, because I do not want to break the rules. However, let’s think beyond the obvious: in what way does ethics contribute to my organization?
Deloitte Millennial Survey, a survey published annually by the auditing firm, determined that the millennial generation judges the success of companies not based on their financial results, but because of the commitments they have to improve the world and contribute to its sustainability, among which is the ethics and good corporate governance.
This report also found that 62% of millennials want to work for a company that generates a positive impact on society. When looking for a job, then, the commitment of the organization with ethical practices and social responsibility is taken into consideration. The same applies to the retention of collaborators, especially those belonging to the aforementioned generation.
Regarding the organizational culture, let us think about how an adequate ethical management positively impacts the loyalty of employees: organizational values are consolidated, the sense of belonging is increased, the same purpose is shared, associated with “good professional acting”.
On the other hand, it is also important to point out that ethics increases productivity. Several studies determine that employees make better decisions in less time if they have business ethics as a guiding principle. In developing work based on honesty and integrity, the whole organization benefits, while employees are more willing to remain loyal to the organization.
This allows potential employees to be attracted to the brand, and those with whom we already have trust with it. That said, let’s also think about the customers. According to the Cone Communications study, 63% of US consumers seek to buy from companies that maintain leadership in social (involving governance) and environmental aspects, and 76% of respondents determined that they would refuse to do business with a company that Do not share your approach to social responsibility.
In conclusion, let us consider how an adequate ethical management system in our organization has positive impacts, at the level of our different interest groups.