An essential contribution of any business enterprise in the evolution to a
market economy is to improve its own business performance.35 For all business
enterprises, this is the first step toward making profits and contributing
to economic progress. Performance can be improved by expanding and better
engaging stakeholders as follows:
• Establishing clear standards and procedures to guide employees and agents
• Focusing on anticipating and meeting the needs and desires of customers
and consumers more effectively and efficiently
• Attracting, hiring, and bringing out the best in employees, suppliers, and
service providers
• Establishing internal control mechanisms to build confidence among
dispersed owners and investors
• Developing and maintaining strategic alliances with enterprises sharing
the same values
These best practices are at the heart of a business ethics program.
They can significantly improve an enterprise’s prospects for success, as
described in more detail in Chapter 2. They can help an enterprise
improve its reputation, manage its risk, protect itself from its own employees
and agents, strengthen its competitive position, expand its access to
capital and credit, increase profits, sustain long-term growth, and gain
international respect.
Where a society wants to evolve from a command to a market economy, the challenges presented to individual enterprises can be daunting. All economies face the same fundamental issues of responsible business conduct—product quality, transparency in financial matters, orkplace health and safety, protection of the nvironment, protection of workers, and compliance with laws and industry standards. However, they are magnified in both degree and kind when an entire society is making a rapid evolution toward a market economy.
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