Ethics & Reputation

Over the past 40 years there have been two significant developments in business ethics and we are on the cusp of a third. Every twenty years seems to bring about a change of consciousness. The three stages actually mirror the three distinct definitions of the term Integrity.  The first a state of being robust, another the state of being whole, and a third about being honest

1. Robust - Following the Oil crisis in the early 1970’s the corporate world recognised that the Earth was a finite resource, squandered only at the expense of future generations. Out of Gaia Theory came the first shoots of the Green movement and the concept of Sustainability. This has sprouted into three distinct branches economic, social and environmental. Business became aware of its place in nature and the need to consider how it used materials and labour to guarantee a viable future. The realisation that organisations could no longer exploit resources without some replenishment.

Today most organisations recognise what sustainability means for them, and incorporate some element within their business strategy. It might be environmental with an energy conservation policy; it might be economic with a fair trade policy; or it might be social with a human rights policy. Sustainability is now widely understood and has grown over the past 40 years to be a major driver in appreciation of dependence and connectivity.  Integrity as a sense of being robust is the definition which most closely reflects this first wave where the concept of Sustainability first took root.

2. Whole - During the 1990’s the second wave broke with the Stakeholder society: organisations recognised that they had responsibilities to stakeholders. Consideration and appreciation followed from an understanding that an organisation was actually a larger organic entity than had previously been acknowledged: parties on whom the organisation impacted could also impact upon it, thus their significance was substantial and their destinies were linked. In addition to primary ones such as investors, customers, employees and suppliers, there were also secondary ones such as regulators, local communities, governments, media and wider public.

Today the concept of stakeholder appreciation is more widely understood and most organisations recognise they have many different audiences, so adopt different communication styles with each. Manufacturers talk of ethical sourcing among suppliers, and ethical investment among shareholders. Each stakeholder group forms its own perception of the character of an organisation, so it is important to balance the diverse interests to create a sense of whole-ness. A second definition of integrity, the state of being whole, reflects the awareness of Responsibility to a wider audience of stakeholders.

3. Honest - As we enter the decade of the 2010’s the third wave is upon us. The age of Facebook, Twitter and other social media means that managing reputation on-line is a real challenge for most organisations. Opinions can be formed based on false or misleading information on websites featuring un-moderated user generated content (UGC). The need for honesty is paramount, yet it is becoming increasingly difficult to know where, or with whom, to place trust. Integrity is about practising the moral philosophy of virtue ethics: doing the right thing. In the UK the new Bribery Act has stimulated interest in developing ethical strategies to demonstrate an anti-corruption culture.

Today many organisations do not actively manage their reputation among key stakeholders, they prefer to treat it as an output of operational activity, however this is in itself an unnecessary risk. It is increasingly important to create and project a good reputation among as many stakeholder groups as possible. Integrity derives from the Latin ‘integer’ meaning upright or intact. According to Horace  ‘Integer vitae, scelerisque purus’ which translates as ‘the man of upright life, unstained by guilt’. Purity, integrity and honesty are highly valued commodities which separate an organisation from association with fraud, corruption and bribery.  This is an age where integrity, as the state of being honest, is vital to complete the bridge between Ethics and Reputation.