Although corporate social responsibility (CSR) seems to have become a buzzword in recent years, business has always been concerned about society and the environment. Their relationship is ultimately symbiotic: neither can or will a company thrive in a failing society, nor can a society prosper without a successful expanding economy. Integrity, business ethics, anti-corruption form part of cornerstones on which modern business is built.
The increasing globalization (with or without Trump) of the world economy has led to significant changes in supply and value chains and in the division of labor. Doing business and manufacturing goods have become more complex, as enterprises wishing to do international business have to comply with more and more legal and ethical standards (both the Philippines and the European Union have added data-privacy rules that are affecting every organization). As a result, CSR has become a kind of voluntary necessity rather than an explicit choice. However, mere charity is not working. In order to succeed globally, businesses have to respond to certain expectations and align their strategies and operations to universal values.
These expectations and values become especially evident when tragic incidents prove weak standards, like the collapse of the garment factory in Bangladesh or the fire in the plant in Valenzuela, where many workers lost their lives. Manufacturers came under fire for their supply chain responsibility. Public pressure prompted companies to improve attention to safety requirements and labor/human-rights issues.
Beyond human-rights issues, the public’s attention has also been drawn to questions of environmental sustainability, given the deadly landslides in Cebu and north of Baguio recently.
It is against this background that many international initiatives and guidelines have been established. These guidelines include the UN Global Compact, the OECD Guidelines for Multinational Enterprises (MNE) and the ILO’s MNE Declaration. The latter is the world’s most comprehensive government-backed multilateral agreement on business ethics.
All of the measures above are often seen as only providing recommendations. Critics say that these initiatives are not meaningful if they have no basis in law and formal enforcement. However, this understanding of voluntary compliance reflects the common misconception that poor business conduct has no consequence for the offending company. Not adhering to responsible business practices cannot be tolerated and will have a negative effect on the reputation of a company. This is why the Integrity Initiative Inc. basically highlights the following principles that have to be adhered to by companies signing the Integrity Pledge:
Long-term sustainability over short-term greed
I respect the labor laws
I pay fair taxes
I respect the environment
I don’t smuggle
I don’t bribe.
In the Integrity Initiative, we have always been clear how business should be done: Integrity is honesty; selflessness (in the sense that a decision is based on public/institution interest and not on private interest); objectivity (a decision is based on merit); transparency (no under-the-table deals) and accountability (those who break the law must pay the price).
Ultimately, the Integrity Initiative hopes to build trust in the government, a more equitable society and fair market conditions. This will result in improved competitiveness and increased business confidence, which will be evident with the increase in domestic and foreign investments, and more employment generated for Filipinos. It will provide better services and products to every Filipino.
In order to succeed more sectors of society have to get involved, such as the court system, academe, civil society, labor, church leaders and—above all—the youth.
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Anticorruption—voluntary necessity or explicit choice? Have I convinced you to join the Integrity Initiative and sign the Integrity Pledge? If yes, send me an e-mail (Schumacher@eitsc.com) and I will send you the pledge for signature.