Do we really have the right mindset to stop corruption?

We at the Oath Project don’t know if most of us do.

This generation is no stranger to corruption, malfeasance and unethical business behaviour. It is hard to follow your twitter stream, open the newspaper or watch the news without hearing of yet another banking scandal, resource exploitation, insider trading indictment or broken promise – all of which greatly impact communities worldwide. These improprieties highlight the dysfunction within the current system, but also reveal the stark absence of tangible tools to engender systemic evolution – and the pressing need to change both the role and mindset of business leaders.

We believe that to mitigate corruption we must shift the business paradigm to one that truly creates sustainable value that can be shared by all stakeholders. We must envision, create and implement a new approach to responsible business – one that inspires individual managers to understand that short-term and isolated actions, heedless of the complexity of doing business in today’s increasingly transparent and connected society, can no longer be business as usual or the foundation from which current and future managers view the business world.

We at the Oath Project are working hard to create the tools and support for this type of paradigm shift, but know the true power rests with each of us as individuals.

Part of our challenge is making sure we are not seen as simply “an academic initiative” or “nice to have” when discussing the merits of this new approach. The truth is, the cost of poor corporate citizenship is huge and extends beyond the intangible costs associated with image, reputation and branding.

KPMG International has identified 10 mega-forces that are redefining the business landscape. They argue these issues – all of which are part of the “shared sustainable value” paradigm – will have more of an effect on the role of business than anything else over the next decade. Their calculations conclude that if companies had to pay for the full costs of production (including environmental and social impact) they would lose 41 cents for every US$ 1.

Michael Andrew, Chairman of KPMG International, said: “We know governments alone cannot address these challenges. Business must take a leadership role in the development of solutions that will help to create a more sustainable future.”

When we alter our mindset to recognize the cost of bad behaviour and short-sighted paradigms, we will also begin to address the impact of corruption. Opportunities previously obscured will come into focus. Business’ commitment to a sustainable future will strengthen as the project’s approach takes hold and the new paradigm “spreads its roots”, one professional at a time.

Working collectively as informed and committed individuals, we can redefine the role and responsibility of business to make business more inclusive, more sustainable and, ultimately, more successful.

By Oliver Niedermaier and Debra Wheat

Authors Note: Oliver Niedermaier is Founder and Chairman Emeritus of DF King Worldwide and was named a Young Global Leader by the World Economic Forum in 2010. Debra Wheat is currently the Executive Director of the Oath Project – an organization that grew out of the Young Global Leader’s Global Business Leader Oath initiative.

Photo Credit: Debra Wheat

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