Ethics and legal compliance are two closely related aspects that every company should take seriously.
Ethics concerns the values and principles that guide the behaviour of people within the organisation (including management), while legal compliance concerns the company’s obligation to comply with applicable laws and regulations.
Being ethical means acting responsibly and with integrity at all levels, in absolute terms, including values that intersect with the environment outside the company and create identification.
This implies that companies must behave ethically not only because it is the right thing to do, but also because this behaviour enhances the company’s reputation and the trust of customers, thereby improving long-term profitability.
Exactly because of a lack of customer and market trust, which is lost due to unethical behaviour that is out of tune with the brand’s guiding values, we are witnessing the demise of the dinosaurs.
Companies that adopt ethical policies and comply with legal compliance create a positive working environment, build customer trust and maintain a positive reputation. Furthermore, adopting ethical policies based on compliance at all levels with shared and positive values reduces the risk of potential litigation, which can be costly and damaging to the company.
If you look at the dinosaurs, before they fall, legal problems arise that result in billions of dollars in fines.
Therefore, the priority is to find leaders in management who act according to values. Ethical values that then turn into solid economic values.
A company with values: internally it respects people and regulations in a solid way. Outwardly it defends the values to which its brand clings in order to take flight.