In an effort to start rebuilding confidence in the ethical integrity of American business, 17 companies have come together to found the Business Ethics Leadership Alliance. The companies are inviting both private and public companies to join them in pledging to uphold four core values: legal compliance, transparency, identification of conflicts of interest, and accountability.
The founding members include such industry giants as Wal-Mart, PepsiCo, Dell and United Airlines. Any company accepted into membership, as a minimum requirement, has to subscribe to the core principles of the alliance. If within a year of joining, the company cannot demonstrate that it meets BELA’s minimum standards and practices, it can be removed from membership. Member companies will be audited every two years to make sure they are in compliance with BELA requirements. Of course, egregious unethical behavior that could have been prevented can be grounds for removal.
So, do efforts like this work? They certainly can. Think of other industry initiatives that have tackled shortcomings in other areas, such as ISO certification to improve quality and environmental performance. Once expectations are articulated and made formal, companies usually can do a good job of training employees in principles and guidelines.
ISO has done a good job of continuing to ensure that certification means something. The group has kept rigorous standards in place and made sure that certification is not only hard to earn but equally hard to keep.
BELA potentially can have the same impact over time. It plans to make sure that good systems and practices are in place to foster and demand ethical behavior inside a company. A public so badly burned by ethical shortcomings in so many American companies will be cynical for years to come, but BELA is to be applauded for trying to turn the situation around. To learn more, check out the Business Ethics Leadership Alliance.
