p food for thought ethics and management to contribute to their communities and uphold human rights. The Ethics Standard of Excellence is intended to ensure that all employees are provided with comprehensive training and health care coverage, as well as a humane work environment, fair compensation and environmentally sound operations. “The ICCA wants to express these principles in terms of balance-sheet items to show companies the impact of their behavior,” says Steiner, who since June has also been advising the United States government on cultural and ethical matters. The professor recommends that companies create an ethics board to introduce the code of conduct in order to ensure that employees are qualified and in compliance with standards. “Credibility and growth” <strong>Roland</strong> <strong>Berger</strong>, founder and chairman of the supervisory board of <strong>Roland</strong> <strong>Berger</strong> Strategy Consultants, believes that ethical behavior is absolutely essential for companies today. His advice: The more credible a company’s actions are, the greater its growth opportunities. THINK: ACT Mr. <strong>Berger</strong>, when it comes to corporate decision-making, is it possible to act in a consistently ethical manner, or does that conflict with the profitability principle? ROLAND BERGER One can act ethically, and one must do so. Companies today are closely <strong>Roland</strong> <strong>Berger</strong>, consulting company founder scrutinized in terms of what they do, how they do it—and often also where they do it. Issues that relate to subjects such as quality, product safety, employee relations, corporate commitment and environmental considerations—anywhere in the world, as it happens —are openly discussed and analyzed without individual companies really having any influence over the respective evaluation criteria. The more a company displays ethics and credibility, the greater its opportunities for growth are. So are ethics indispensable? Absolutely! If customers or employees are not happy with what they find at a company, they may very well vote with their feet. Those consequences will be quickly reflected in the company’s performance on the stock market. That’s tremendous leverage. In your opinion, what are the pillars of corporate ethics? First of all, a company needs a set of values that it stands for and advocates. However, most corporate visions and mission statements are market- and not value-related. Second, it needs a clear statement on how it plans to achieve its objectives. This statement will also determine which procedures it will pursue or exclude. Third, there must be principles in place that govern internal processes and their interactions. Fourth, you need clearly delineated responsibilities. Rules and individual obligations should be monitored. Companies often lack this culture of responsibility—meaning you don’t have to look far to see why there is a lack of credibility. Management’s reputation is affected by a few, highly visible cases. Can ethical management remedy this type of situation? In many countries, there have been some very clear cases of management failure that, in the public eye, have been more influential than the proper ethical behavior displayed by the vast majority of companies out there. It takes consistently unimpeachable behavior as well as openness and communication to survive this type of situation. Ethics is not just about having values, it’s also about conveying them, both within the company and to the public. That way, should a company find itself dealing with a crisis, it will have a credible base from which it can believably defend its actions. 16 think: act
Dossier #01 THE FORMULA FOR GROWTH COMPANIES THAT AIM FOR LONG-TERM SUCCESS MUST BE ABLE TO DO MANY THINGS SIMULTANEOUSLY: INNOVATE, EXPAND, RESTRUCTURE, MOTIVATE AND, NOT LEAST, INSPIRE TRUST.
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