Ethics are Good for Business

These days more than ever we expect ethical behaviour from the people to whom we give our custom. Woe betide the company that’s found out getting its £70 trainers made in a far eastern sweatshop for 40p or including GM ingredients in its organic produce.

This even applies to marketing, a profession often thought to lack scruples. You may be surprised that the American Marketing Association commands “Marketers must do no harm.” (And, no, I don’t know if people who advertise cigarettes are allowed to be members!) “Honest, truthful and decent” are the watchwords of British advertising. Even my small consultancy finds it sensible and proper to vet clients and try to avoid those who appear to act unethically.

Bigger companies need built-in controls. I was surprised earlier this year to encounter a Board of Directors who let their Chief Executive do whatever he wanted, including on employment issues, without questioning the moral basis for his decisions. Boards should be concerned about more than the bottom line. They should set ethical standards for their management and enforce them.

Behaving ethically may be good Public Relations but behaving unethically is bad for business.