Richard Bistrong’s Post

The Importance of Ethics in Business - A reflection from my favorite childhood book. In today’s interconnected business environment, ethical conduct is crucial for trust and credibility. Firms across all industries must prioritize maintaining high ethical standards through regular six-month ethics reviews. Here’s why this practice is essential: 1. Building Trust and Credibility Ethical behavior fosters trust between businesses and their clients, employees, and stakeholders. Regular reviews demonstrate commitment to integrity, reassuring clients and partners that the organization prioritizes ethical standards. 2. Navigating Complex Decisions As businesses face challenging ethical dilemmas, regular reviews equip them to assess and address these situations responsibly. Integrating ethics into decision-making aligns actions with regulatory requirements and moral considerations, benefiting stakeholders. 3. Promoting Accountability Ethics creates a framework for accountability. Prioritizing ethical reviews encourages a culture of responsibility, helping identify potential lapses and empowering individuals to raise concerns. This leads to better governance and improved practices. 4. Enhancing Reputation and Competitive Advantage Organizations that prioritize ethics often enjoy enhanced reputations, attracting clients, investors, and top talent. Regular reviews strengthen ethical foundations, setting firms apart from competitors and appealing to conscious consumers. 5. Adapting to Changing Standards As societal expectations around corporate responsibility evolve, firms must stay ahead. Regular ethics reviews allow organizations to assess and adapt to these changing standards, positioning them as leaders in ethical practices. The importance of ethics in business cannot be overstated. Firms should prioritize regular six-month reviews of their ethical standards. By doing so, they strengthen their organizations and contribute to a trustworthy business environment. Investing in ethics is an opportunity to lead with integrity in a complex world. One memorable quote about ethics from Calvin and Hobbes by Bill Watterson is: “It's not denial. I'm just selective about the reality I accept.” This quote reflects Calvin's whimsical take on ethics and personal choice, highlighting the subjective nature of our moral frameworks. We should prioritize #BusinessEthics and #IntegrityInBusiness, fostering #TrustAndCredibility while promoting #CorporateResponsibility and #SustainableBusiness through regular #EthicsReview.

FRC Ethical Standard 2024: A Game-Changer for Ethics Teams? The Ethical Standard would become effective from December 15th, 2024. The Financial Reporting Council (FRC) few months back announced a significant update. This revision goes beyond mere clarification, introducing substantial changes that will impact the way audit firms approach ethical considerations. Key Takeaways: -> Global Alignment: The revised standard incorporates updates from the International Ethics Standards Board for Accountants (IESBA) Code of Ethics, ensuring a unified approach for ethical practices across borders. Imagine it as synchronizing ethical compasses internationally. ->Enhanced Independence: The FRC introduces a restriction on fees from entities with the same controlling party, aiming to bolster auditor independence and prevent conflicts of interest. This is a major shift requiring proactive strategy from ethics teams. -> Third-Party Test Scrutiny: The definition of the "objective, reasonable and informed third party" test is tightened, requiring a stronger focus on the perspective of investors and stakeholders. This necessitates updated training and resources for ethics teams to ensure consistent application. -> Proactive assessment & Disclosure in Breach Reporting : firms are expected to design systems to effectively capture all breaches. They would need to consider an "objective third-party" perspective when deciding on actions and report breaches to the relevant authority outside of biannual reporting if necessary. This update aims to improve breach identification and response. These changes present significant challenges and opportunities for ethics teams: - Increased workload: The improved standards may require additional effort to implement and monitor, potentially requiring resource allocation adjustments within ethics teams. - Elevated importance: With heightened focus on ethical compliance, the role of the ethics team is likely to gain even greater prominence within audit firms across the globe. The updated FRC Ethical Standard is a game-changer for the ethics teams. By embracing these changes and proactively adapting, ethics professionals can contribute significantly to safeguard the integrity of financial reporting. While the revised standard doesn't fundamentally rewrite the rulebook, it represents a critical step forward. It equips ethics teams with clearer guidelines, reinforces global best practices, and reinforces the crucial role of independence. Join the discussion! How do you see these changes impacting the work of ethics teams ? Share your insights and questions in the comments below!   #FRC #EthicalStandards #EthicsTeams #Auditing #AuditEthics

Ethics in Procurement (5 ways to deal with it) : _______________________________ Procurement often involves handling sensitive transactions and relationships. Here are five ways to deal with it : #First : Identifying Common Ethical Issues :- 1. Conflicts of Interest: When personal relationships or incentives cloud professional judgment. 2. Supplier Favoritism: Choosing a supplier without proper evaluation or due process. 3. Kickbacks or Bribes: Receiving gifts or benefits that influence decisions. 4. Unfair Practices: Pressuring suppliers to accept unreasonable terms or payments. 5. Lack of Transparency: Hiding procurement decisions or skipping competitive bidding. These aren’t just bad practices, they’re also red flags that can undermine trust within your organization and with external partners. #Second : Building an Ethical Procurement Framework :- 1. Code of Conduct: Develop a procurement-specific code of ethics . 2. Training Programs: Awareness is your first line of defense. 3. Transparent Policies: Document your procurement processes, to ensure decisions are clear and auditable. 4. Accountability Mechanisms: Create systems where employees can report unethical behavior without fear of retaliation. Anonymous whistleblower hotlines are an effective tool. #Third : Build a Culture of Integrity :- Ethics in procurement isn’t just about rules; it’s about culture. When integrity becomes a core value, ethical decision-making follows naturally. 1. Lead by Example: Procurement leaders must model ethical behavior in all decisions and interactions. 2. Reward Ethical Choices: Recognize and reward employees who prioritize ethics 3. Encourage Open Communication with your team #Fourth: Use Technology to Implement Ethical Procurement :- Technology can play a significant role in minimizing unethical behavior: 1. Spend Analysis Tools: Monitor spending patterns to spot irregularities or potential misuse of funds. 2. Supplier Management Software: Ensure that supplier selection is based on objective criteria, not favoritism. 3. Contract Management Systems: Automate contract reviews to reduce the risk of unfair terms or hidden clauses. By integrating these tools, you can make procurement processes more transparent and less prone to ethical breaches. #Fifth:Trainings on Ethical Procurement :- Training on ethics becomes more impactful when it’s interactive and practical. For example, simulating situations using case studies and interactive exercises helps employees build confidence and make ethical decisions under real-world pressure. Additionally, incorporating real-life examples from your organization or industry can make the training more relatable and relevant. Discussing actual cases of ethical breaches, their consequences, and how they could have been prevented reinforces the importance of adhering to ethical practices. _________ References : purchasing and procurement center. Procurement leaders, Newsletter.

🌟The Four-Way Test: A Foundation for International Business Ethics What drives ethical decision-making in the global business landscape? First, let's define ethics and clarify how it differs from morals. Ethics refers to a system of principles that guide actions in determining what is right or wrong, based on societal or professional standards. In essence, it acts as a code of conduct. While ethics provides a universal framework for behavior, morals are more personal and shaped by individual beliefs, culture, and religion.   In international business, where diverse moral perspectives converge, ethical principles are essential for ensuring fairness, integrity, and mutual respect. One timeless framework that supports this is the Four-Way Test, developed by Rotary International. Simple yet profound, it serves as a foundation for navigating ethical challenges in business relationships around the world. 🌟The Four-Way Test Framework 1️⃣ Is it the Truth? This question tests the honesty and integrity involved in decision-making. In international business, honesty fosters trust and transparency, ensuring clarity and strengthening partnerships across borders. 2️⃣ Is it Fair to All Concerned? Fairness means treating all parties equitably, from global suppliers to local stakeholders. Ethical business practices ensure that decisions are just and consider cultural, economic, and societal differences. 3️⃣ Will it Build Goodwill and Better Friendships? Business is about relationships, and goodwill paves the way for cooperation and shared success. Upholding this principle in international dealings fosters trust, reduces conflicts, and builds a network of reliable allies. 4️⃣ Will it be Beneficial to All Concerned? Ethical decisions benefit all stakeholders—employees, customers, communities, and the environment. In a globalized world, this means prioritizing sustainable and inclusive practices that leave a positive footprint. 🌟 Why the Four-Way Test Matters Ethics in international business goes beyond merely adhering to laws and regulations; it involves establishing a standard of integrity that transcends cultural differences. Embracing ethical practices is a cost-effective way to enhance business value in today's dynamic landscape. The Four-Way Test framework serves as a universal guide for ethical decision-making, assisting businesses in navigating complexities while fostering trust and respect globally. 💬 How do you ensure that your business upholds ethical principles in the international market? Do you believe that the Four-Way Test can promote integrity and collaboration in the global marketplace? Can the Four-Way Test framework help create a more ethical and inclusive global economy? I would love to hear your thoughts on this! 😊 #NexfordUniversity #NXUMBA #LIfelonglearning #BusinessEthics #InternationalBusiness #Leadership #FourWayTest #RotaryInternational #GlobalEthics

Every year, I go through a lot of applications for the World's Most Ethical Companies. The work I do is just part of the thousands of hours that the Ethisphere team puts in to evaluate the hundreds of applications that we get every year. The Ethics Quotient questionnaire at the heart of the application process contains more than 240 questions. There's a reason why I don't have much time to spare between October and January All of this produces an enormous amount of data, from which we draw some very interesting conclusions and insights about the best practices that unite the World's Most Ethical Companies. For example: * 100% of this year's Honorees use employee engagement surveys * 96% of Honoree ethics and compliance teams provide their Boards with reports detailing the company's ethical culture * 90% of Honoree ethics and compliance teams are included as part of their organization's mergers and acquisitions (M&A) due diligence efforts But there aren't many categories where everybody is doing the same thing, and that's where things start to get interesting. Even the best of the best still have room for improvement. Identifying areas for improvement is key for companies striving for recognition. Remember the engagement surveys I mentioned earlier? While everyone's doing them (which is great), some companies go further in their surveying efforts: 81% of Honorees elect to ask questions about the company's ethical culture in exit surveys and 74% use a dedicated ethical culture survey where they can get at the heart of key culture insights - whether employees are comfortable speaking up, if employees see leadership behaving ethically and not just talking about ethics, whether employees have trust that their company will do the right thing when presented with an issue, and many other important perceptions and awareness points. A lot of the statistics we uncover illustrate success stories underway - like the increase in Board diversity we've noticed this year (55% of Honorees have 16-35% underrepresented persons represented!). On their own, these numbers might not appear terribly impressive. When the figures, compared with prior year data, show an eight-point gain, we start to see a positive trend emerge. It reveals a culture of companies adopting robust ethics, compliance, and integrity elements to improve their organizations. Key to this is intentional and repeated measurement and improvement. A World's Most Ethical Companies Honoree never sees this recognition as a one-off achievement; rather, it's part of an ongoing process to understand where an organization can, and should, do better. Sharing how these organizations have achieved excellence is one of the most interesting and illuminating aspects of what I do at Ethisphere. I'll share more data and insights from this year's Honoree class at the upcoming Global Ethics Summit this week (April 22 - 24), and I hope to see you there - in-person or virtually, of course.

Ethics in Real Estate critical for the industry’s success The Ted Rogers School hosted today an informative session on ethics in real estate. Joining professor Chris MacDonald were three industry leaders: Janice Myers, Don Inouye, and Keith Major who outlined how the real estate sector considers ethics to be the cornerstone for building trust with consumers and to bring the industry to a higher level of ethical behavior that transcends the minimum regulated standards. It is both refreshing and inspiring to witness how leaders across the real estate and business sectors are championing higher ethical standards for their industries and professions. This commitment, exemplified at recent industry events, reflects a broader recognition of the pivotal role ethics play in building trust, fostering sustainability, and ensuring long-term success. Keith Major provided a compelling vision for the development industry's dedication to environmental stewardship. He outlined a roadmap to significantly reduce emissions from new construction by 2035, with an ambitious target to achieve net-zero emissions thereafter. This bold initiative underscores the industry’s commitment to sustainable practices, going beyond regulatory compliance to embrace a leadership role in combating climate change. Janice Myers brought the focus to education, highlighting its critical importance in equipping professionals in the brokerage industry with the tools and knowledge to uphold the highest ethical standards. Continuous learning and professional development are essential to navigating the complex challenges of the modern real estate landscape while maintaining integrity and public trust. Don Inouye echoed these sentiments, emphasizing the real estate industry’s commitment to prioritizing ethics—not merely as a compliance exercise, but as a principled stand that reflects its core values. This voluntary commitment to ethical behaviour is a testament to the leadership’s dedication to fostering a culture of accountability and moral responsibility. The Ted Rogers School of Management has been a leader in highlighting ethics and ethical behavior in business leadership. Professor Chris McDonald is a thought leader in ethical leadership as evidenced by the Ethics Centre (www.ethicscentre.ca). The Department of Real Estate Management (https://lnkd.in/gateRCnj) is Canada’s leading school for real estate research and learning that graduates 80-plus industry ready real estate professionals from the undergraduate program and research-oriented masters and phd students specializing in real estate markets. Real Estate Institute of Canada (REIC) | Institut canadien de l'immeuble (ICI) The Canadian Real Estate Association | L'Association canadienne de l'immobilier Real Estate Council of Alberta Real Estate Council of Ontario Toronto Regional Real Estate Board Toronto Metropolitan University Mohamed Lachemi

Sensitech Ethics: A Case Study in Corporate Integrity or Crisis? “Ethics—they take it very seriously.” At least, that’s what Elizabeth Darragh, Sensitech’s Director of Communications, asserts. But how deep does this commitment run? Let’s explore what happens when corporate messaging collides with internal practices and regulatory expectations. Take Olivier Simonnot, MBA, Eng., Sensitech's Expert & Speaker on Global Regulatory , leading #COVID19 Information Task Force EMEA. Under oath at The Hague court, Simonnot stated unequivocally that only three-point tested, traceable temperature monitors meet life sciences and pharmaceutical standards. One-point tested devices, he claimed, are categorically noncompliant—bold claims under legal scrutiny. Contrast this with an internal email from Sensitech’s former Quality Director, Scott McDowell confirmed Sensitech’s #TempTale devices undergo only one-point testing as part of their standard procedure. Want three-point testing? That’s optional and comes at an extra cost. So, which version of the #truth does Sensitech stand behind? Are they knowingly marketing noncompliant devices as regulatory-approved, or did Simonnot misrepresent the facts in court? Ethics vs. Incentives: The Human Dilemma Upton Sinclair timeless observation rings true: “It is difficult to get a man to understand something when his salary depends upon his not understanding it.” At Sensitech, cognitive dissonance seems embedded in leadership decisions. When acknowledging ethical failures threatens livelihoods, self-preservation trumps accountability. Simonnot may genuinely believe his testimony aligns with regulatory requirements, shielding himself from the implications of internal inconsistencies. Similarly, Darragh’s silence likely stems from a fear of jeopardizing her career and the company’s image—intertwined identities that further entrench complicity. This dynamic creates a corporate culture where ethical lapses persist because self-preservation incentivizes denial. Employees rationalize systemic failings as either unchangeable or justifiable in pursuit of profit, deepening the ethical erosion. Olivier, Expert Global Regulatory Affairs, leading COVID Task Force please clarify how you reconcile your claim under oath that only three point tested temperature monitors are compliant for pharmaceutical and COVID-19 vaccine shipments with the fact that major competitors, such as DeltaTrak and Elpro, widely sell FDA and WHO-approved one-point tested devices for these industries? Are you asserting that the entire industry, including global regulatory agencies like the FDA and guidelines by WHO, are complicit in allowing noncompliant devices to be used for critical pharmaceutical cold chain shipments? World Health Organization FDA WHO Regional Office for Europe EU Health and Food Safety European Medicines Agency European Centre for Disease Prevention and Control (ECDC) ELPRO Global DeltaTrak #COVID19 #Ethics #CorporateCulture

My new article on Rethinking Ethical Leadership in the C Suite has been published here Paywalled, but here's the abstract: The author is a clinical associate professor at NYU Stern School of Business, and the executive director at Ethical Systems. She writes that “behavioral ethicists agree that while leading by example is important, it’s crucial to focus on building employee capacity for ethical decision-making.” She further contends that “Companies… they must also manage the full spectrum of ethical commitments in practical ways. This poses particular challenges when you’re dealing with an increasingly vocal yet divided workforce.” She also discusses the nuances of sustainability and ESG {Environmental, Social, and Governance} within organizational ethics. Quotes are presented from such experts as Hui Chen, “a former prosecutor who became the first in-house compliance counsel expert in the US Department of Justice”; Klaus Moosmayer, chief ethics, risk, and compliance officer at Novartis; and Nell Minow, described as “one of the leading corporate governance specialists in the United States.” For instance, according to Chen, “I’ve been baffled by the complete lack of interaction between the ethics and compliance community and the ESG community, because to me they’re really the same thing.” The author concludes: “Organizations don’t just need tone at the top; they need to solicit and support awareness, accountability, and voice at all levels.” Right???? https://lnkd.in/d2dZhFTG

The Role of Ethics in Business In the complex tapestry of the business world, ethics serve as the vibrant threads that hold the fabric of industry together. As we navigate through economic landscapes, the role of ethics in business becomes not just a legal or moral compass, but a cornerstone for sustainable success. The Moral Blueprint: Ethics in business is more than a set of rules; it’s a moral blueprint for corporate conduct. It guides companies in creating policies that foster fair competition, respect for stakeholders, and integrity in every transaction. When businesses operate ethically, they set a standard for employees, partners, and competitors, creating an environment where trust and cooperation flourish. The Trust Factor: Trust is the currency of commerce, and ethics is its mint. Customers, investors, and employees are drawn to companies that demonstrate ethical behavior. A reputation for ethical practices becomes a magnet for talent and capital, enhancing the company’s ability to innovate and grow. In contrast, ethical lapses can lead to scandals, legal troubles, and a tarnished reputation that can take years to rebuild. Beyond Profit: The Triple Bottom Line Today’s businesses are expected to look beyond profit and consider their impact on society and the environment. Ethical businesses recognize that their operations can have far-reaching effects, and they strive to minimize their negative impacts while maximizing their positive contributions. The Global Stage: In an increasingly interconnected world, business ethics also have a global dimension. Companies must navigate diverse cultural norms and legal systems, often setting their own ethical standards when local practices fall short. By upholding high ethical standards globally, businesses can lead the way in promoting human rights, environmental stewardship, and fair trade practices. The Path Forward: As we look to the future, the role of ethics in business will only grow in importance. With each decision, companies have the opportunity to reinforce their ethical foundations or undermine them. The path forward is clear by embedding ethics into the DNA of their operations, businesses can ensure that they not only succeed in the marketplace but also contribute to the greater good. Ethics in business is a journey, not a destination. It requires vigilance, commitment, and a willingness to do what is right, even when it’s not easy. As businesses continue to evolve, those that prioritize ethics will find themselves leading the way, building a legacy of integrity that endures. TalentServe #blog #business #ethics #career #trainee

How well are businesses balancing ethics with profitability in today's fast-paced world? With pressures from investors and the demands of competitive markets, maintaining ethical standards often seems like a tough road to navigate. The recent discussion on business ethics highlights the importance of integrating principles like Environmental, Social, and Governance (ESG) criteria into decision-making processes, which goes beyond mere compliance. From ethical AI use guaranteeing data privacy to enhanced supply chain transparency, the evolving landscape of corporate ethics presents both challenges and opportunities. As organizations increasingly focus on social responsibility, adopting a proactive approach might hold the key to lasting success and trust. What are your thoughts on the role of ethics in business today? #BusinessEthics #CorporateResponsibility #EthicalLeadership #ESG #Sustainability https://lnkd.in/gEmD97QD