Posted on: 22/04/2024
Just like people have moral and ethical considerations, corporations must also operate within an ethical framework. After all, it guides a company’s decision-making and directly impacts its public perception. Closely related to ethics is the concept of accountability, which applies to a corporation and its employees. Creating an ethical workplace culture based on accountability requires dedication and robust decision-making.
Business ethics and accountability significantly interplay in the modern work environment, impacting everything from employee satisfaction to company revenues. What is this relationship, why is it so important, and how can you leverage it to create better outcomes for your organization?
Discover your Accountability Score and increase the probability of smashing your GOALS and Getting Sh!t Done!
Business ethics and accountability share a special relationship: one can say they are part of the same coin, informing and reinforcing each other at each turn. Let’s understand ethics and accountability in-depth and their interplay in the corporate context.
When an organization operates within ethical bounds, it attracts top industry talent and earns a positive reputation among customers. It also leads to more robust and reliable partnerships with investors, stakeholders, and suppliers.
Here, it is pertinent to mention the example of Patagonia, a clothing brand committed to environmental sustainability. The company generates annual sales of over $1 billion. by staying true to its ethical conviction. However, Patagonia isn’t the only brand that has gotten big while following its ethical principles.
The Body Shop is another prominent example, reaching its peak revenues of $1.1 billion in 2023. These companies have attracted a loyal customer base and like-minded employees by staying true to their ethical frameworks of environmental sustainability and cruelty-free practices.
Corporations and their employees are also held accountable for their decisions and actions. These checks and balances ensure that employees and corporations stay transparent and fair in their actions, promoting integrity within an organization. One can say that accountability enforces ethical principles because it pushes organizations and their employees to do the right thing. There are countless examples of corporate accountability that tell us how a lack of ethical outlook or practices leads to disastrous outcomes for companies.
One of the most famous examples is Enron, once a giant in the energy, commodity, and services industries in Houston, Texas. It has 20,000 employees, and its shares trading at $90.75 at its peak. However, a lack of ethical conduct and accountability led to one of the most spectacular collapses in corporate history in 2001. Enron’s executive team was involved in shady accounting practices and showed inflated profits, leading to substantial losses for employees and shareholders.
Business ethics and accountability are intertwined in multiple ways, guiding a company and its employees towards positive outcomes while avoiding potential pitfalls. An excellent example is environmental sustainability under corporate social responsibility and the carbon tax. While ecological sustainability has more ethical and moral undertones, the carbon tax lies precisely in the sphere of accountability.
Corporate social responsibility is a self-enforcing mechanism by companies that makes a company accountable to itself and the public. By indulging in CSR programs, a company can benefit itself in the long run and improve its societal standing. The bigger a corporation, the greater its responsibility to adopt CSR programs and show that it cares about society. There are various kinds of CSR, including:
The carbon tax is an excellent example of holding corporations accountable for their greenhouse gas emissions. By putting a price on carbon emissions and increasing it with the increase in emissions, companies are incentivized to cut down on pollution. Moreover, it pushes them to adopt greener and cleaner technologies for their operations.
Similarly, there are multiple ways in which employees are expected to uphold ethical standards for which they’re held accountable. Some examples include:
How strong a company synthesizes business ethics and accountability defined its stature in the long run:
The ideal scenario for any corporation is to balance well-defined business ethics and accountability principles. It encourages employees to do the right thing, knowing they’ll be held accountable for doing anything wrong.
Quality mentorship plays a defining role when it comes to accountability and upholding ethical standards. If you need assistance with this you can take a look at my accountability coaching packages or take an accountability assessment today.
So, why wait until you can start smashing your goals right away? Contact me today!
Darren Finkelstein, The Accountability Guy®, is the founder of TICK THOSE BOXES, a specialised accountability coaching practice. Darren is a formidable international accountability coach, business advisor, mentor, and author/speaker, fostering development and measurable results in entrepreneurship, leadership, and accountability. Darren’s tale is one of perseverance, self-reinvention, and resilience.
With compelling execution, Darren has empowered high-achieving individuals and teams from Australia and New Zealand to Latin America, Europe, Asia, the UK, and the US to embrace accountability; after all, it is your superpower.
Darren’s one-on-one and group coaching programs are based on his bestselling business book, “The Accountability Advantage – Play your best game” and the latest, release “NO’ – Building a life of choice without obligation”.
Darren has an impressive background in business, having held the role of “Manager of Commercial Markets” at Apple Australia during the Steve Jobs revolution.
He enthusiastically “walks the talk,” having also successfully sold and exited his lifestyle businesses, which served as the impetus for establishing his coaching and mentoring business.
Join Darren on this transformative quest to accomplish the remarkable.
Read Darren’s full bio here:
https://tickthoseboxes.com.au/about/
Know what to do first
know what to do next
know what to do more of
"You can't buy happiness, but Getting Stuff Done is pretty much the same thing"
Navigation
Learn More
Contact
Social Media
Copyright Darren Finkelstein 2022 | Privacy Policy | Terms and Conditions
