With increasing enlightenment of stakeholders today, corporate bodies must prove ethical commitments by going past talking about their commitments to actually doing them. Stakeholders are no longer blinded by a few PR of some company, to give them a good reputation.
The Director of Business Ethics Advisors at Good Corporation, Leo Martin, said “Transparency is an essential component in the building of trust between an organisation and its stakeholders, yet it is a principle with which many still struggle”. He went further to say that even if organizations decide to conceal some information; it will always get out through other means, which depletes the public perception of the transparency of the organization.
Using the method of openness and transparency encourages stakeholders to open up about concerns to the management for such concerns to be addressed. This call for transparency extends to tax payment and pay ratio.
Matt Gorman, Sustainability and Environment Director said that a corporate reputation is ultimately determined by governance. This statement was supported by the Research Director at the Institute of Business Ethics, Simon Webley, who said that the reputation of a company is about “the way business is conducted both externally and internally and about how the board helps and guides the company to enact its ethical commitments”.
Code of conducts of an organization- integrity and openness- must not only be enacted but must be real, applied and embedded. Webley emphasized that corporate governance comes from the top and on the long run benefits the corporation.