What is Ethical Business Practice?

It all starts at the top. The effects on a business

An honest, open and transparent approach to business means there's nothing to hide. And the benefits of this are equally easy to see. Aside from generating public goodwill, ethical practice has a far more profound effect. Those organisations that truly embrace it can gain a real competitive advantage in their marketplace and in turn, enjoy the financial profitability this brings.

To reap the rewards, this commitment to honesty needs to be shown in every aspect of their work. For example, just giving accurate financial information about their performance isn't enough. Important as this is, it's only one element of a business's conduct. An ethical approach has to be displayed in everything, from environmental issues to equal opportunities in recruitment. And it doesn't just stop there. It also means looking closely at the companies they trade with and asking the question, do they live up to the same standards? If not, should they continue the relationship or resign the business?

It's through this voluntary regulation of their own actions that companies win public trust. In the past, government laws and professional regulations have been bent and manipulated by some unscrupulous businesses. So by setting themselves higher standards than legally required, the business world can demonstrate its commitment to ethical behaviour.

Although this applies to all businesses, it is especially relevant to the financial services industry. Currently investors and stakeholders are demanding greater corporate transparency than ever. That's why, at PricewaterhouseCoopers, we've taken a stand in support of this. We've set ourselves a benchmark of the highest order to ensure we live up to our promise of practising ethical business. This may mean resigning from business relationships where we feel we aren't receiving the honest and accurate information we need to do our job properly.