The business of sustainability: McKinsey Global Survey results. More companies are managing sustainability to improve processes, pursue growth, and add value to their companies rather than focusing on reputation alone.
Many companies are actively integrating sustainability principles into their businesses, according to a recent McKinsey survey, and they are doing so by pursuing goals that go far beyond earlier concern for reputation management—for example, saving energy, developing green products, and retaining and motivating employees, all of which help companies capture value through growth and return on capital. In our sixth survey of executives on how their companies understand and manage issues related to sustainability, this year’s results show that, since last year, larger shares of executives say sustainability programs make a positive contribution to their companies’ short- and long-term value. The Comprehensive Business Case for Sustainability.
Today’s executives are dealing with a complex and unprecedented brew of social, environmental, market, and technological trends.
These require sophisticated, sustainability-based management. Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. On the contrary, academic research and business experience point to quite the opposite.
Embedded sustainability efforts clearly result in a positive impact on business performance. Drawing from our own research and our colleagues’ research in this area, we have created a sustainability business case for the 21st century corporate executive. Sustainability is not a buzzword. It’s the future for Canadian business. This column is part of Globe Careers’ Leadership Lab series, where executives and experts share their views and advice about leadership and management.
Follow us at @Globe_Careers. Find all Leadership Lab stories at tgam.ca/leadershiplab. Sustainability Practices in Business. That business has a role to play in improving the environment and dealing with climate change is certain.
What is much less so is how to do that, and for some, whether to try. After all, companies feel comfortable doing business as usual, and few want to threaten their competitiveness in favor of green virtue. Our point is that this is not an either or question. HR’s Emerging Role in Human Governance. Investors are shifting the goalposts for business accountability beyond the traditional quarterly reports on revenue, profit and growth.
As well as traditional reporting, forward-thinking investors now want to see how a business maximizes its human capital without creating any associated harm or risk within the organization or in the wider community. This new focus is called human governance, and over the next few years it’s set to become as important a measure of corporate performance as traditional reporting has been over decades past.
Human governance manifests itself through ensuring the entire extended workforce can maximize its own personal value, and through this, a business is able to maximize its own value. This maximization of value comes about through the broader expectations the community has for business. This new focus on maximizing human value also has significant ramifications for the HR operation within an organization. The Importance of Ethical Leadership. Are you the same at work, at home and in the community?
Do you have the bravery to stand against peer pressure when it comes to compromising your values? According to the Center for Ethical Leadership, “Ethical leadership is knowing your core values and having the courage to live them in all parts of your life in service of the common good.” Implementing an Ethics Program in the Workplace. Every organization needs a set of ethics policies and procedures to describe how the ethical values are to be implemented.
These policies and procedures are the means by which the organization communicates expectations and requirements to its employees. Once ethics policies and procedures are in place, the organization should develop measurements for determining if its ethical standards are being maintained and if those standards are yielding the desired results. Identify and Renew Company Values Companies without a clear set of values may find themselves at a disadvantage when developing ethics programs. Ethics programs are most effective when perceived by employees to be "values-driven" rather than simply compliance-driven, and values-based programs are most effective in reducing unethical behavior, strengthening employee commitment, and making employees more willing to deliver bad news to managers.
Importance of Business Ethics in Leadership Development. In business today, there are countless examples to study when examining the effects of unethical business practices on the overall economy.
Fortunately, there are also many positive examples of ethics in business which underscore the importance and power of ethical considerations to drive business success. With consumers and potential clients more aware of business ethics than ever before, it is important that organizations take ethics seriously and develop a framework and workplace culture that place ethics in high regard. With the widespread use of the Internet, specifically social media, organizations have much to gain by investing in and promoting their strong business ethics.
Consumers and potential clients are savvier now and, through the Internet, take a much more detailed look at a company’s reputation, corporate values and overall transparency before investing. Companies can use this consumer trend to their market advantage. Six Ways to Create a Culture of Ethics in Any Organization. Managing for Organizational Integrity. Many managers think of ethics as a question of personal scruples, a confidential matter between individuals and their consciences.
These executives are quick to describe any wrongdoing as an isolated incident, the work of a rogue employee. The thought that the company could bear any responsibility for an individual’s misdeeds never enters their minds. Ethics, after all, has nothing to do with management. Implementing an effective corporate ethics policy.
When asked about their values, the vast majority of companies can provide a document they would describe as a code of ethics or conduct.
However, research suggests a possible disconnect between companies’ stated intentions and the degree to which they truly value ethical behaviour. Here are five steps that companies can take to ensure that their corporate ethics policy is effective and becomes embedded in the company culture. Also included are practical examples of the various ways organisations have accomplished this task. Ethical Decision Making In the Workplace. Darnell Lattal, Ph.D.
Download PDF As applied behavior analysts, Performance Management (PM) consultants and practitioners, we are not moral philosophers, nor are we ethicists, yet we are concerned about the ethical practice of our technology. Applied behavior analysis is neutral; it helps us observe and describe the current state. Ethical Issues Within a Business. What Are the Major Ethical Issues Business People Face? Corporate Social Responsibility: Definition and Examples. Credit: Kokliang/Shutterstock Corporate social responsibility (CSR) refers to business practices involving initiatives that benefit society. A business's CSR can encompass a wide variety of tactics, from giving away a portion of a company's proceeds to charity, to implementing "greener" business operations. There are a few broad categories of social responsibility that many of today's businesses are practicing:
Curing Ethical Blindness. This article appeared previously Association of Corporate Counsel’s ACC Docket and is published here with permission from the journal. Virtually everyone who has ever driven a car on a busy highway has experienced the hazards associated with blind spots. Like many others, I have had several heart-stopping moments in the midst of a lane change where I’ve narrowly avoided colliding with cars that I did not know were there until it was nearly too late to avoid them. I’m happy to report that I’ve been fortunate to avoid such collisions, but I recognized long ago that I couldn’t count on luck and the nimbleness of other drivers to avoid catastrophe over the long term. Instead, like most experienced drivers, I have deliberately developed a habit of checking my blind spots very carefully before making lane changes.