Public relations and corporate communications experts are urging corporations to more strongly embrace strict ethical standards.
Ethical mishaps can cause corporations to lose customers, business partners, income and stock value, according to the Consequences of Managerial Indiscretions: Sex, Lies, and Firm Value, a study published in the Journal of Financial Economics. Ethical indiscretions are also associated with an increased probability of shareholder-initiated lawsuits, high employee turnover and government investigations.
Organizations can avoid such problems only by adhering to high ethical standards. How the organization and its leading executives respond to ethical stumbles says much about the role that PR and ethics play in decision-making.
“As representatives of your brand, large or small, leaders and employees should behave as if they are on view at all times,” states Cheryl Conner, founder of SnappConner PR, in Forbes. “Beyond this, however, brands are challenged to market in new and better ways in the millennial-driven culture of business that demands your business ‘do it my way,’ ‘do it the right way,’ and proactively take action to address the social ills of the day. We need a road map for ethical persuasion,” Conner said.
How to embrace ethical behavior in PR
Be honest. Trust is essential to your organization’s reputation and growth. Honest business practices inspire your key publics to treat your organization and mission with respect. Honest PR practices build foundations of trust with all key stakeholders, writes Yulia Dianova, a PR pro at Axia Public Relations.
Respect confidentiality. Protect the confidentiality of your present and former