HONESTY AND INTEGRITY
The moral compass
Suresh Shah
Prioritising honesty and integrity is paramount in maintaining corporate respect and brand reputation, according to Suresh Shah. He believes that corporates need to utilise several tools to achieve these traits.
Firstly, Shah states that formal – meaning written and approved – principles and policies must unambiguously articulate that integrity and ethical standards are foundational to the corporate culture; and that they’re values that cannot be compromised.
Secondly, he notes that the leadership – including the chairperson, board, CEO and senior management – must communicate this at every possible opportunity and walk the talk in their dealings with all stakeholders.
Thirdly, Shah believes that the recruitment process must include mechanisms to filter only those who meet ethical standards.
And last but not least, the products and services on offer must reflect the brand promise while if and when integrity is compromised, action must be quick and decisive, he posits.
TRANSPARENT ETHICS In today’s business landscape where trust in institutions is often questioned, organisations must work diligently to build and maintain trust with stakeholders through transparent and ethical practices.
Shah asserts that organisations must first understand who their stakeholders are and what requirements they seek to fulfil. The formally approved policies must reflect these needs and be published, he adds.
“Proactively engaging with stakeholders during the decision-making process is important. Delivering on the brand promise of goods and services is also essential; an organisation cannot be trusted if it consistently under-delivers,” he explains.
Additionally, Shah notes that how an entity treats the environment, its employees, and small customers and suppliers – those who have less clout than the entity, in his words – signals the integrity of an organisation.
BRIBERY AND CORRUPTION Moreover, he emphasises that preventing bribery and corruption in an organisation’s operations is extremely important: “Firstly, bribery and corruption is unethical – because it’s against the law and a corrupt entity cannot control its employees.”
THE MORAL COMPASS Corporate values and ethics play a crucial role in shaping an entity’s approach to conducting business – and to this end, Shah explains that it is the foundation upon which a successful and sustainable business can be built.
Without these elements in his view, a business might survive in the short term but certainly not the long run. He elaborates: “Ensuring that interactions are conducted with integrity and transparency hinges on approved policies, the example set by the leadership and zero tolerance for breaking the code.”
In addition to these imperatives, Shah stresses that behaviour must also be included in performance evaluation and reward mechanisms.
PRIMARY CHALLENGES It is a given that organisations face several primary challenges in maintaining honesty and integrity in their operations.
As Shah points out, “on the one hand an entity needs to meet the legitimate needs of its stakeholders – employees want better wages, creditors and lenders want their dues settled on time, and shareholders seek wealth creation.”
On the other hand, he explains that the country has weak institutions and people with political power have too much discretion. There is also an obsolete system of licensing.
“A 360 degree evaluation followed by appropriate changes to legislation and regulations, and the establishment of strong and independent institutions, is necessary to address governance issues,” Shah declares.
CREDIBILITY COUNTS He says: “The long-term sustainability of an organisation depends on its credibility with stakeholders, be they customers, suppliers, employees, regulators, lenders or the general public.”
The ability to attract talent is also linked to the credibility of an entity, he maintains. And as such, Shah believes that sustainable financial success – which is the overarching aim of a business entity – is inexorably linked to an entity’s credibility in the eyes of its stakeholders.
