Ethics in the Consulting Industry: Reality or Illusion?

In the years following 2008 recession, businesses are regaining their momentum, and the economy has begun flourishing again. In the wake of the very ferocious financial earthquake of the final 80 years, society continues to feel its tremors. Is this an indication of evolvement and growth? Or can it be a warning of a more catastrophic phenomenon on the horizon? Unemployment is down and a majority of economists are optimistic concerning the future. Organizations are expanding globally, and leaders are striving to install their names to their companies’successes. But is this enough? Is success and welfare the only measures of success? Do leaders of organizations decide in favor of the well-being of these enterprises, or do they follow their very own narrow ambitions? The pursuit of personal interests may be the initiator of a capitalist economy, but that doesn’t justify actions that harm organizations, individuals they serve, or society as a whole. Therefore the “do no harm” business ethics debate rages on, expanding and infecting the “trusted advisers” of the consulting industry consulta cnpj gratis.

Consultants Should Do No Harm

In management consulting, executives and consultants are primarily in charge of creating value and safeguarding the interests of these clients, however they will also protect society by pursuing their goals in a moral manner. Needless to say, they focus on the clients’businesses making sound profit, shareholder equity and continuous growth, but it can be their responsibility to align the interests of these clients with the general good.

They have an obligation to identify that there are multiple stakeholders, customers, employees, society and the environmental surroundings, not just shareholders and management. They should act with the most integrity, and serve the greater good, having an enhanced sense of joint accountability. It is vital to understand that their actions have profound consequences for everyone, inside and outside the organization, now and in the long run. Consulting companies, should focus more on ethical guidance, because they hold significant influence over many companies’strategy and plans.

Consulting companies (strategy, management, accounting, etc.) have an obligation to advise their clients on how to build their successful enterprises on a good foundations, and to help them achieve sustainable economic, social, and environmental prosperity. It is their responsibility never to distort or hide the truth behind facts, but to explain the truth and promote transparency. They need to also demonstrate to their client’s ethical ways to accomplish their goals. But is this what is happening today?

Double-dealing, Fraud, Corruption, Insider trading and that’s just the tip of the iceberg

If we have a close look at incidents that have occurred in the recent past, we look for a rotten record of behaviors in the management consulting industry. Numerous examples exist of partners and employees of major management consulting firms being involved in illegal and unethical scandals, in efforts to retain clients and to harvest personal gains. This is a common among individuals who put their profits before customers.

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