By Charles MANUEL-KORBLAH
In today’s globalized economy, corporations wield significant influence over societal norms and individual behaviors.
The expectations they set ranging from employee performance metrics to environmental responsibilities profoundly impact various stakeholders.
Navigating the ethical landscape of these expectations is crucial, as missteps can lead to public distrust, legal repercussions, and financial losses. This piece explores the ethical boundaries of corporate expectations, with a focus on Europe, Africa, and Ghana.
Defining ethical corporate expectations
Ethical corporate expectations refer to the standards and demands that companies place on their stakeholders, which align with moral principles and societal values.
These expectations encompass various domains, including labor practices, environmental stewardship, consumer rights and community engagement.
When corporations set expectations that prioritize profit over ethical considerations, they risk exploiting stakeholders and damaging their reputations.
Global perspectives on corporate ethics
The Ethics & Compliance Initiative’s 2023 Global Business Ethics Survey provides insight into the state of ethics across different regions:
- Europe: The survey indicates that 9percent of European employees observed misconduct in their organizations, the lowest across surveyed regions. This suggests a relatively strong ethical culture.
- Africa & Middle East: In contrast, 16percent of employees in this region reported witnessing misconduct, highlighting challenges in ethical corporate practices.
Corporate ethics in Europe
European corporations often lead in establishing ethical standards, influenced by stringent regulations and active civil societies.
The European Union’s Corporate Sustainability Due Diligence Directive (CSDDD), adopted in July 2024, mandates companies to identify and prevent human rights abuses, including modern slavery, within their supply chains.
This directive, effective from 2027, exemplifies Europe’s commitment to ethical corporate behavior.
Corporate ethics in Africa
Africa presents a diverse landscape of corporate ethics, influenced by varying economic and cultural contexts. In Ghana, for instance, cocoa farmers have raised concerns about fair pricing and labor practices.
In October 2024, a group of Ghanaian cocoa farmers filed a complaint with the state regulator, Cocobod, demanding a “living income” and addressing issues such as deforestation and child labor. This action underscores the ethical complexities within supply chains and the necessity for corporations to set fair and just expectations.
Drawing the ethical line
Determining where to draw the line in corporate expectations involves balancing profitability with responsibility:
- Transparency: Corporations should openly communicate their expectations and the rationale behind them, fostering trust among stakeholders.
- Stakeholder engagement: Involving employees, consumers, and communities in decision-making ensures that corporate expectations align with societal values.
- Regulatory compliance: Adhering to local and international laws sets a baseline for ethical behavior.
- Cultural sensitivity: Recognizing and respecting cultural differences is vital, especially for multinational corporations operating in diverse regions.
A life-changing story: Tony’s Chocolonely
An illustrative example is Tony’s Chocolonely, a Dutch chocolate company committed to eradicating exploitation in the cocoa industry. Despite facing criticism for unconventional marketing strategies, such as an empty window in their advent calendar to highlight inequality, the company remains steadfast in its mission.
CEO Douglas Lamont emphasizes focused advocacy on relevant issues like child labor and cocoa farmers’ poverty, avoiding general political commentary.
Tony’s Chocolonely aims to create a $1 billion brand by ensuring ethical practices and paying farmers a living income, demonstrating that aligning corporate expectations with ethical standards can lead to both social impact and business success.
Conclusion
The ethics of corporate expectations are key in shaping the relationship between businesses and society. By establishing expectations grounded in ethical principles, corporations can foster trust, ensure compliance, and contribute positively to global communities.
As exemplified by Tony’s Chocolonely, integrating ethical considerations into corporate strategies not only addresses societal challenges but also enhances brand reputation and profitability.
>>>the writer is a Professional HR and Workplace Culture Advocate with over a decade (10+) of experience in Corporate Practice. Holding an MBA in Human Resources Management from the University of Ghana Business School and affiliate Member of the Association of Certified HRs Ghana (ACHR). He excels in Corporate HR practices, Executive Management and Information Management. Contact: Email: [email protected]/[email protected]
