business ethics and sustainability

J. A NEW FRAMEWORK FOR IMPLEMENTING CORPORATE SUSTAINABILITY 37

1. Ethics

2. Governance

3. Transparency

4. Business relationships

5. Financial return

6. Community involvement/ economic development

7. Value of products and services

B. Employment practices

9. Protection of the environment

The company establishes, promotes, monitors, and maintains ethical standards and practices in dealings with all of the company stakeholders

The company manages all of its resources conscientiously and effectively, recognizing the fiduciary duty of corporate boards and managers to focus on the interests of all company stakeholders

The company provides timely disclosure of information about its products, services, and activities, thus permitting stakeholders to make informed decisions

The company engages in fair-trading practices with suppliers, distributors, and partners

The company compensates providers of capital with a competitive return on investment and the protection of company assets

The company fosters a mutually beneficial relationship between the corporation and community in which it is sensitive to the culture, context, and needs of the community

The company respects the needs, desires, and rights of its customers and strives to provide the highest levels of product and service values

The company engages in human-resource management practices that promote personal and professional employee development, diversity, and empowerment

The company strives to protect and restore the environment and promote sustainable development with products, proceS:5es, services, and other activities.

TABLE 1.1 The nine principles of sustainability performance

Source: Epstein and Roy (20031 "Improving Sustainability Performance"

1. Ethics Ethical companies establish, promote, monitor, and maintain fair and honest stan­ dards and practices in dealings with all of the company stakeholders and encourage the same from all other stakeholders, including business partners, distributors, and sup­ pliers. To follow this principle, a company needs to place particular emphasis on human rights and diversity to ensure that workers are treated fairly. This means that, although a company has to adhere to local laws, its ethical practices will often necessi­ tate standards far in excess of industry, international, national, and local guidelines or regulations.

Ethical companies set high standards of behavior for all employees and agents, and have in place effective systems for monitoring, evaluating, and reporting on how the