ETHICAL OUTLOOK
Principle of trust
Shashi Kandambi
Economic issues and political instability have sometimes led businesses to deprioritise ethical considerations in pursuit of short-term survival and profit making, asserts Shashi Kandambi. Corruption and weak regulatory enforcement exacerbate this trend, she adds.
However, there are countervailing forces such as global market pressures, the rise of CSR, and civil society and media scrutiny, which promote ethical practices.
She asserts: “While some businesses may struggle with maintaining ethics under current conditions, overall there is a mixed but gradually improving landscape for ethical business conduct driven by these positive influences.”
DEFINING ETHICS Ethical practices involve conducting business in ways that are fair, honest and responsible towards everyone affected by the organisation – including customers, employees and the community.
Kandambi points out that these practices emphasise integrity, obeying laws, respecting human rights, protecting the environment and contributing positively to social welfare.
She states that the banking sector is governed by the principle of trust in both the ethical and legal sense: a bank must act with honesty and integrity at all times, ensuring that its operations and dealings are transparent, fair and in compliance with the law, she says.
This trust, Kandambi believes, is crucial for maintaining customer confidence and the stability of the financial system.
She mentions several measures to ensure adherence to ethics: providing clear guidelines on how employees should behave ethically in performing their duties; implementing training programmes to educate staff on ethical standards – and how to apply them in their daily work; and ensuring that leaders of institutions lead by example and demonstrate strong ethical behaviour throughout the organisation.
Additionally, she says that providing safe and confidential ways for employees to report unethical behaviour without fear of retaliation, conducting regular audit reviews to ensure that the company follows ethical practices and identifies any areas needing improvement, and engaging stakeholders and communicating openly with them to understand their expectations regarding ethical behaviour are also crucial steps.
DAILY INTEGRATION “Integrating ethics into day-to-day operations involves embedding clear guidelines and practices that shape every decision and action within the organisation,” says Kandambi.
She notes that this begins with establishing a strong code of ethics that defines proper conduct and values. Training programmes should educate employees on these ethical standards and encourage them to apply them consistently.
Kandambi emphasises that leaders must lead by example by demonstrating ethical conduct, and fostering a workplace culture that prioritises integrity and accountability.
“Regular audits and open communication ensure compliance with ethical principles, building trust and credibility with stakeholders,” she stresses, adding that a comprehensive approach ensures that ethical considerations are woven into the fabric of daily business operations.
INDUSTRY STANDARDS Government regulations and industry standards are instrumental in fostering ethical business practices by establishing a legal framework that mandates ethical behaviour – including fair competition, consumer protection and environmental responsibility.
“They provide consequences for noncompliance, motivating businesses to uphold ethical standards. Industry standards complement regulations by offering best practices that businesses can voluntarily adopt, showcasing their commitment to ethics,” she explains.
Kandambi states that these frameworks offer guidance, ensure accountability, and cultivate trust among businesses, consumers and society, ultimately promoting a culture of ethical business conduct.
LONG-TERM SUCCESS As she notes, “ethical business practices are closely linked to long-term success and sustainability. When businesses prioritise ethics, they build trust and credibility with customers, employees and stakeholders.”
This trust leads to a positive brand reputation and loyal customer base, she asserts, stating that ethical companies also attract top talent, mitigate legal and reputational risks, and maintain healthy relationships with customers and communities.
Kandambi goes on to add that by adhering to ethical standards, “businesses demonstrate resilience and adaptability to changing societal values and regulations, ensuring their sustainability and continued success in the competitive market environment.”
