In the midst of increasingly fierce business competition, many companies are tempted to break ethics and rules in order to make big profits in a short period of time. Actions such as manipulation, worker exploitation, and the delivery of false and misleading information are often carried out in order to maintain dominance, superiority, and personal gain. However, true success is not solely measured by financial profit. The ability to maintain integrity in business is much more important.
Let us first understand what integrity is. Integrity is a concept that refers to consistency and firmness in upholding moral principles, ethics, and positive values in all actions and behaviour. People with integrity have an honest character, can be trusted, are responsible, and are not easily influenced by temptations or pressures that are contrary to their beliefs. People with integrity always act correctly without manipulation, fraud, and crime; behave the same way both privately and in public; are willing to accept the consequences of their actions; are not easily swayed by personal interests and external pressures; and are transparent.
Integrity in Business as a Burden
Everyone certainly agrees that integrity is a must, both in a personal career and in running a business. However, many consider integrity in business to be a burden for various reasons. For example, fear of losing out on competition if they are too honest, the need for more costs when financial conditions are not necessarily supportive, and a greater emphasis on results than on the process.
This assumption arises because companies only think about getting results instantly (even though it is not sustainable). Some other factors that encourage companies to have this view are pressure from shareholders to achieve quick results in a short time. The highly competitive business environment also makes the temptation to commit irregularities greater.
In fact, in the long run, there are many benefits to be gained when a company upholds integrity in business. Customers only want to buy products from ethical companies. Companies that ignore ethics will damage their reputation. Especially in today’s social and digital media era. Information spreads in seconds.
Integrity in business is also important for retaining the best employees. People only want to work in companies that uphold integrity. With a healthy work culture, employees will be more enthusiastic about their work, thus increasing their productivity. Not only that, but employees will feel at home continuing to work with the company.
Consequences When Business Ignores Integrity
Companies that violate ethics and ignore integrity often face lawsuits. This, of course, requires significant costs. This would not happen if the company did not commit violations.
Try to observe companies that are hundreds, even thousands of years old. This includes companies that only operate on a regional scale. In fact, many people are not familiar with them. One of the reasons they are able to survive, in addition to innovative business strategies, is a very high level of concern for integrity. This means that companies that prioritize integrity will remain competitive throughout the ages.
Integrity in business is the best and most effective form of public relations (PR). Corporate integrity can be the subject of testimonials from stakeholders such as customers, employees, suppliers, and so on.
Remain Competitive Without Sacrificing Integrity
So, how can companies remain competitive without sacrificing integrity?
1. Be transparent in business
The main key to building integrity in business is transparency. Companies must be transparent in their pricing policies, production processes, and relationships with partners.
2. Implement good corporate governance
Next, establish good corporate governance. The principles of good corporate governance are transparency, accountability, responsibility, independence, and fairness.
3. Pay attention to employee welfare
Companies with integrity in business always care about the welfare of their employees. How? By creating a healthy physical and spiritual work environment and preventing a toxic work environment.
4. Promoting the right work process
Companies that prioritize integrity in their business don’t just offer high-quality products and services. The manufacturing of these products must also be correct. It has been encountered that a company offers high-quality products but exploits workers, and their wages are not paid properly.
Including the correct process is when the product is produced in ways that do not damage the environment. For example, processing waste correctly.
5. Build good relationships with customers
Companies that uphold ethical principles always maintain positive interactions with consumers, supply partners, investors, and the surrounding community. Transparency and open dialogue will support the creation of sustainable relationships that are mutually beneficial for all parties.
6. Build a culture of integrity
Don’t forget to build a culture of integrity in your business. The way is to create a clear code of ethics, leaders who set an example, respect and protect employees who report violations, and provide continuous education.
In this regard, quoting forbes.com, a survey conducted by the Corporate Executive Board (CEB) found evidence that companies with high integrity have 12 percent greater “discretionary” employee productivity. This means that employees boost their own productivity without coercion.
Another fact is that 50 percent of employees do not report wrongdoing for fear that it will have a negative impact on their careers. Conversely, if employees believe that integrity in business empowers them to report violations without penalty, the reporting rate will increase.
