Responsible Business Guide: A Toolkit for Winning Companies

RBG
Responsible Business Guide: A Toolkit for Winning Companies
RBF Pillar 2: Principles and Values
Business values and principles of a company are central to its CSR strategy. Company
claims of good behavior, when not supported by evidence, may actually harm business
prospects over the long term.
Policies are Values in Action
Many companies consider a values statement to offer the best picture of the organization’s
philosophical grounding. To incur the trust of its customers and critics, a company and all
of its employees must be seen to openly espouse those values at all times. This demonstrates
an understanding of moral priorities, the conviction to do what is right, and the will to take
a stand on the part of an organization. Together, these qualities demonstrate a company’s
resolve to be responsible, which leads to trust. Values range from globally accepted standards
such as honesty and fair dealing to locally relevant ones, particularly those that relate to
gender attitudes, social hierarchies, and power relationships. In cultures where there is a
tendency to display loyalty to family and close relations above other values, a business
must work particularly hard to be trustworthy.
Trust comes on foot and
leaves on a horse.
Chinese proverb
Often the pressure to accommodate influential stakeholders is
hard to resist because of the perceived threat that it may mean
losses for a business – or worse. This threat particularly affects
small and medium enterprises, who feel they are weak in the
face of powerful political forces in society.
In fact, the risk of being manipulated by powerful interests is greater when a business is
isolated from its clients or consumers and does not enjoy a wider circle of trust. Companies
who are known for their integrity and their civic responsiveness are relatively secure and
are better able to resist the pressures that threaten their values.
The lesson, therefore, is two-fold. One, a company must be clear about its values and
articulate them in a way such that everyone associated with its business processes
understands them without any confusion. And two, these values must be distilled into
policies and procedures that can be shown to work reliably and equitably without exception.
In a way, converting values into policy and practice is perhaps the most crucial milestone
on the road to responsible business. It is also a process only decision-makers can lead.
Responsible Business Initiative 27