It is often said that success, unless it is sustainable, is not worth having. This can have more than one meaning. Businesses that crack the code of sustainable success tend to not only generate profits and leads, but also retain revenue and clients. Additionally, these businesses can function in a manner that benefits the environment and society.
According to the World Economic Forum (WEF), 2024 is the year of business sustainability. In other words, a growing number of companies across different sectors are increasing their investments in the field of sustainability.
A key component of maintaining success, especially by turning towards sustainable goals, is to showcase strong business integrity. What does it mean and how is sustainable business success dependent on it? In this article, we will explore the ins and outs of business integrity and ethics.
What Is Business Integrity?
Integrity refers to a strong adherence to a code of moral values and ethics. In simple terms, business integrity would mean abiding by certain moral values or principles to achieve organizational goals.
Now, this may seem a bit too simplistic because practically every business runs on some set of values. The point of integrity hits the nail a bit deeper than superficial “doing the right thing to look good.”
Can business integrity enhance an organization’s reputation? Absolutely, but the motivation should never be to simply corner the market. Integrity in itself is about doing the right thing even when nobody is watching and being consistent with one’s actions.
Similarly, business integrity would include honoring one’s claims and commitments regardless of whether the actions go public or not. This does not mean that a company will have no weaknesses or failures. Business integrity equally involves being transparent about one’s shortcomings and holding oneself accountable.
For this practice to bear visible fruit, it must permeate every level of the organization. Employees must not view business integrity as a box to tick off but as a driving force behind their words and actions. In other words, business integrity is a quality that changes the question from “Is this permissible?” to “Is this right?”
Principles of Integrity in Business
We mentioned in the previous section how business integrity is based on the foundation of certain moral values or principles. Now, let’s look at some of those principles in a bit more detail.
- Quality products and services – Businesses with integrity produce goods and services that are high-quality. They don’t just make bold claims but back them up with top-notch results
- Trust – Business integrity helps a company become reliable. Through consistent actions, customers begin to trust the company and return for future contracts
- Accountability – When a company is quick to acknowledge its mistakes and apologize before its customers, it gains customer respect. It gives them the confidence that the firm will genuinely work on rectifying errors
- Willingness to change – Companies with integrity ask for customer feedback and work on it promptly. This improves customer engagement, making customers feel valued. Customers are impressed with a business’ motivation to improve
- Corporate citizenship – Companies that participate in community work convey a lot about their values. It shows that an organization is committed to its community’s well-being.
- Creation of value – Business integrity guides a company to consistently create value for itself and its customers. Such firms do not just focus on profits but have their customers’ best interests at heart. This strengthens the company-client bond.
Reasons to Not Trade Integrity for Anything
According to Investopedia, it is the law that generally lays down the framework for business ethics or integrity. However, this is no reason to do the bare minimum, as it is frowned upon.
Integrity should be every company’s second nature as it has several benefits. Let’s look at the top reasons why business integrity is never worth sacrificing:
- Helps create and maintain a good brand image and reputation
- Attracts numerous opportunities for organizational growth
- Provides a competitive advantage
- Strengthens bonds with collaborators, investors, and stakeholders
- Neutralizes the effects of a mistake or error
- Acts as a guide for good business decisions
Learning from Examples
They say that the best and least time-consuming way to learn something is through others’ successes and failures. Similarly, businesses can educate themselves on the importance of integrity by judging both sides of the coin. Let’s look at both good as well as poor examples of business integrity.
Tata Steel
This company needs no introduction as it is internationally renowned as one of the most diversified steel producers in the world. It became Asia’s first integrated private steel company in the year 1907.
Having celebrated over 110 years of existence, Tata Steel stands on the foundation of business integrity. Besides steel, the company always claimed to make happy workers. It has lived up to its claims as showcased by the founder, Jamshedji Tata, and every other Tata in his line, including the late honorable Ratan Tata.
He is among the few business tycoons who are highly respected for ethical values like accountability, transparency, and honesty. The company not only focuses on creating societal value, but also respects stakeholder rights. Tata’s legacy and respect earned from people testify to the power of business integrity.
Johnson & Johnson
This company has been around since 1886. It has been heavily involved in the production of medical and pharmaceutical products. Over the years, it also penetrated the consumer goods market.
Perhaps this company has become a household name due to its baby care products. Even in this category, the most widely known is its baby powder. Mothers have preferred this product for how it handles delicate skin and absorbs excess moisture.
Effective as it may have been, the famous talc powder did expose flaws in the company’s integrity. It was later found that the baby powder contained asbestos-based talc. Talc may be a naturally occurring mineral, but some forms of it have asbestos.
According to TorHoerman Law, severe cases of mesothelioma, ovarian cancer, and lung cancer have emerged. This may be due to the talc itself or the asbestos fibers that are known to be carcinogenic.
Those who were injured have filed the Johnson and Johnson baby powder lawsuit. The allegations are true since the company has had to settle thousands of cases with billions of dollars.
What’s worse is that it knew well about the health risks associated with its product. Yet, it chose to stay silent in a bid to generate a steady flow of profits. This is a classic example of a lack of business integrity.
In August 2024, the company attempted to file for bankruptcy for the third time just to end the litigation. It makes for a pretty self-explanatory scenario.
Monsanto/Bayer
Another company that has seldom been known to display business integrity is Monsanto, now Bayer. Though it started with the production of an artificial sweetener, saccharine, Monsanto quickly entered other markets like chemicals and agriculture.
Soon, it became the first company to apply biotechnology business models to agriculture. Over the decades, Monsanto has produced several products that wreaked havoc on human health as well as the environment.
These include Agent Orange, Roundup weed killer, and even its genetically modified seeds. People started a march against Monsanto in 2013 and deemed it the most evil corporation in the world.
It is even believed that Bayer acquired Monsanto in 2018 only to erase its past sins. After all, there have been several lawsuits against the company. Cover-up after cover-up is the natural consequence of sacrificing integrity.
As we close our discussion, let’s look at some ways in which businesses can demonstrate integrity.
- Adopt ethics as a work culture
- Manufacture and present products that are effective and safe. This will require several quality control measures
- Make exceptional customer service a basic standard
- Practice 100% transparency and work for the community
If there is one quality that is sure to take a business far, it is integrity.