Ethics Expert Slams Short-term Business Practices
Dr. Noreena Hertz, one of the world’s leading political economists, has warned organisations across the globe that they risk self-destruction if they continue to focus on short-term gain at the expense of business ethics.
Dr. Hertz, who last night addressed over 200 senior decision makers at the CIMA (Chartered Institute of Management Accountants) global business ethics debate, stated that organisations perceived to be acting against the public good will face a mounting public backlash.
CIMA panellist, Dr. Hertz, warned companies that:
"Business decisions are not made in a vacuum. As recent events highlight, they have the power to harm individuals, societies and the planet itself. Business practice based solely on myopic short-term gain actually risks corporate self-destruction. This is now the case more than ever.
"With public anger at corporate venality on the rise, it will soon not only be banks that are vilified. Any corporation that is perceived to be acting against the public good, will potentially be caught in the crossfire."
Chaired by broadcaster Jon Snow, CIMA’s business ethics debate, Is Global Ethics A Myth? took place last night in Westminster where Dr. Noreena Hertz was joined by fellow panellists James Caan, entrepreneur and star of the BBC One’s Dragons’ Den, and the publisher & broadcaster, Andrew Neil for an energetic discussion on whether corporate business ethics will be the first casualty of the credit crunch and to what extent short-termism has created the current economic crisis.
For highlights of last night’s discussion and comment from the panellists, see the film clip of Is Global Ethics a Myth?