17 May 2007 
 
Having good business ethics is not a gimmick, according to Investec Bank (Australia) chairman David Gonski AO. Good ethics make good business sense and, in today’s corporate environment, businesses cannot afford to ignore their obligations, said Mr Gonksi, speaking at the Institute of Chartered Accountants NSW Business Forum.  
 
“The essence of ‘ethics’ has been to be the question posed by Socrates: what ought we to do’, and that has never been more true than in today’s business climate”, he explained, “We ought to take responsibility for social, community and environmental issues - and it makes good business sense to do so.” 
 
Why be ethical? 
It is important for businesses to display ethical behaviour in order to attract and retain staff, increase profits, attract investors and government funding and to enhance their reputation within the corporate world. 
 
“In an age of near-full employment, attracting and retaining good staff can be tough. Staff want to be proud of where they work and the standing of a company can stand or fall on its ethical reputation.” 
 
“As prosperity has returned, customers are more discerning and more educated today. They want a product that not only serves its purpose but is produced by an environmentally responsible company. Customers won’t slavishly stay where they used to stay.” 
 
“The world today does abound with money but its retention is hard. Many investors now represent interest groups and the public themselves. They want to be seen to be ethical and invest in groups that are ethical themselves. If you want to get and retain monies, ethics are essential.” 
 
“The days are long gone where business was powerful enough to get government to act whenever it demanded it. Government is transparent and the ethical standards of a business are now a key factor in the procurement of grants and influence..” 
 
Can good ethics be good for business? 
“There is no reason to think that ethics will cost a business. In fact, commonalities can often be identified between ethics and business interests. For example, IAG work with neighbourhoods to reduce crime - which also reduces insurance claims. For them, this answers what they ought to do for both the community and the company.” 
 
Can ethics survive an economic downturn? 
“Ethics came from prosperity, but if prosperity comes to an end, would ethics be the first thing to go out of the window? I believe that is a risk. The tree of ethics is not so enshrined in our soil that it may not be the one of the first things to fall in an economic drought. But the longer prosperity continues, the firmer those roots will be. It is my fervent hope that ethics will be enshrined for many years to come.”