by Ian Buchanan

Created on: January 19, 2010

The fundamental benefit from being a socially responsible and ethical company is that consumers trust your brand name and competitors strive to equal your reputation. The clearest example of this is Johnson & Johnson and the Tylenol scare in 1982 when it appeared someone had tampered with the product in Chicago. J & J instantly removed this product from the shelf, worldwide, and from then this case has been a study in most Business Ethics programs. They have recently recalled other products, not because of contaminated contents, but because certain containers were made from a compound in which one of the ingredients has caused the container to give off an unpleasant odour. The bottom line in consumer health care is that nobody has a better reputation for social responsibility, and the public is prepared to give them the benefit of the doubt when an issue pops up because they believe the company is absolutely invested in product safety.

This company also cares for its employees and assumes a global responsibility for the communities it serves. Their corporate website outlines all of their commitment to CSR and ethics practice. One thing to note in their Credo is that it is not signed by the CEO, Chairman, or anyone else. Essentially this means that the Credo is sacrosanct and survives the personal ego of any executive who leads the company.

It is important that a company develop a credo and values statement that strengthens its core beliefs, and that these are not simply a vehicle for a senior officer to get his or her signature or face plastered all over the premises. Executive tenure has shortened over the last few years, and in many cases the first thing a new head of mission does is remove any vestige of the last person. An effective credo is one like J&J’s that transcends the tenure of current management.

Small businesses can also build trust and integrity into what they do. There is a small real estate company, a subset of a major organization, which operates in a wealthy area. What separates this company from many of its competitors is its complete focus on honesty. They compel themselves to tell a selling client everything they notice about the house, especially things the seller has dome to hide a potential problem, and they insist the problem be rectified before the listing is published. Likewise they pursue hidden issues on behalf of a buying customer. Other agents know what to expect when this company representatives appears with a client.

This agency has built a very strong image and is among the best respected in town both within the industry and among the buyers and sellers. Their complete focus on integrity and value has encouraged other companies to develop standards that improve the bad reputation some practitioners have historically had in the area

At the culmination of a sale this agency donated ten percent of its commission to the charity of the client’s choosing.

Any company, from the very smallest to the giant, can be in business, and many may succeed through hard work or unique products, but their profits may suffer because of the excessive after sales attention needed due to being concerned about themselves first. Companies that have taken the effort to create an ethos that acknowledges their integration into their spheres of influence, and which practice what the preach will generally enjoy higher and better quality returns.

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