Friday, March 24, 2017

Being an Ethical Business in a Corrupt Environment

In environments with widespread corruption, most business leaders hesitate to take a firm ethical stand. However, research conducted in Egypt, Zimbabwe, and India shows that organizations should view building a strong ethical reputation in such environments as an opportunity to differentiate themselves vis-à-vis their competitors.

CEIBS Professor of Entrepreneurship S. Ramakrishna Velamuri explains four steps that companies can take to do this in an article that has been published by Harvard Business Review. In the article, he and his co-authors suggest that companies should first frame their ethical behaviour in a way that resonates with as wide a network of stakeholders as possible. Second, understand that there are gradations of corruption. Third, acquire a fine-grained understanding of their stakeholders. Fourth, strategically build partnerships with high-status individuals and organizations, a tactic referred to as “reputation building”.

Read the full article here.

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