Author: Adriana Lampert

Source: Jornal do Comércio - RS - Porto Alegre / RS - 03/05/2010

According to consultants, ethics is the foundation for any business

In times when the term corporate citizen is widely publicized, Brazilian executives and entities have questioned the subject and discussed business practices that follow the path of sustainability, considering the economic, social and environmental dimensions of each business. Shaken by the recent financial crisis, Brazilian leaders turn their attention to the antidote to what they consider the main problem in the contemporary business world (to the point of being responsible for the failure of many companies): ethics. “The global crisis was driven by a drop in confidence, a crisis of moral values ​​that generated the financial crisis - and which has been generating an environmental crisis for some time,” says Douglas Linares Flinto, founder and president of the Brazilian Institute of Business Ethics. Nonprofit civil society, based in Campinas (SP), the entity promotes ethics in the business environment.

Graduated in business administration and theology, Flinto worked for 30 years in fuel distribution companies such as the Anglo-Dutch Shell, the Brazilian Ipiranga and the Italian Agip. He believes that sustainability is no longer just a banner raised by companies and is now integrated into the values ​​of most corporations. "This trend has been consolidating and is based on the concept of ethics, which is the determinant of a company's success". It also points out that modern industries are realizing that there is no other way to the success of a business that does not go through integrity. And he goes further, stressing that it is impossible to have social or environmental responsibility, let alone achieve sustainable development in a company that does not excel in ethics. “On the contrary, in these cases, what happens is just the use of sustainability marketing”, he adds.

In the consultant's opinion, there is still a big gap between what some companies preach and what they do, that is, between business reputation and corporate character. “It is no use investing in socially responsible actions and not paying the employees' guarantee fund, for example. But, positively, entrepreneurs have understood that the path to success goes through business ethics. Increasingly, executives have abandoned cunning practices, such as evading taxes and paying bribes, ”he says.

Failure to follow the rules discourages investment 

Speaking of ethics, in addition to being comprehensive, is a matter of point of view. The opinion is defended by André Franco Montoro Filho, president of the Brazilian Institute of Competition Ethics (ETCO). He highlights the fact that several aspects and particularities involve the discussion. “Our focus is economic. In our understanding, it is a matter that involves compliance with tax legislation ”. ETCO's president warns that a company that does not fulfill its tax liability, causes competition imbalance - harming those that act ethically, and generating other harmful effects for society. "This reflects less resources for government and less possibilities for benefits and investments in social programs, in addition to harming the good taxpayer, who has to bear this burden."

Montoro also warns that if companies that commit ethical deviations proliferate, they attract opportunists who venture into the sector seeking to take advantage of the situation, generating informality and precarious jobs. For him, not respecting rules is the wrong behavior, which discourages investors interested in doing productive business, including technological improvements. “Here in Brazil, industries are becoming aware that ethical behavior is fundamental to economic success. I believe that we are living in a positive, ascending cycle, of improvements in ethical economic and social issues ”. "An ethical, socially and ecologically responsible company will inevitably follow the path of so-called sustainability", agrees the president of ETCO.

But the ETCO leader points out that there are challenges to be overcome in order to, in fact, establish ethics in terms of fiscal compliance. "The advance of this culture in Brazil is hampered by bureaucracy." Changes in legislation and different interpretations of laws, according to him, make it difficult for companies to fulfill their obligations and lead to judicial delays.

Respect for the environment must be intrinsic to companies

When it comes to ethics, it addresses not only the need for transparency and honesty in a corporation, but also the vision of the company's performance in a way that respects the environment and social responsibility actions. “A company's ethical stance includes preserving ecological conditions, avoiding environmental impacts,” says Beatriz Bulhões, vice president of the Brazilian Business Council for Sustainable Development. It is also important to be aware of the issue of natural resources such as water and light, paper recycling, environmental waste and process improvements. "These are fundamental actions of corporations," he says. Beatriz also recalls that in planning the expansion of a business it is necessary to consider environmental issues, so that there is more conditions for companies to survive over time. "These are values ​​that must be considered in the administrative and industrial development of the corporation."
In this regard, large Brazilian companies gain prominence, not least because they are more charged by the market. Currently, there is already a tool used to support them in this sense: it is the so-called code of ethics. “Many industries have acted in this line, publicly declaring their values, their internal and relationship policy in the projects. But we still have to go a long way, it is easy to write a code of ethics, but it is necessary to have consistency in actions, to create a relationship of trust with the consumer ”, says Beatriz.
The vice-president of the Council for Sustainable Development admits that it is not easy and agrees that the country's biggest challenge in terms of advancing business ethics is to overcome the corruption still present in the relationship with government officials.

Douglas Linares Flinto adds in an optimistic way: “We have advanced a lot, we recently had the first case of a governor arrested in the entire history of our country. Flinto points out that it is necessary to persevere, because a culture change of this size does not happen overnight. “It is gradual. We will only change by example, that is where the power of a company is that sets the example for employees. ”