The Moral Compass of Business and Humanity

Apple CEO Tim Cook’s recent commencement speech at George Washington University went viral as Cook urged graduates to follow their values while pursuing a career that helps do good for the world. After citing his personal inspirations that included Martin Luther King Jr., Robert Kennedy and Jimmy Carter, Cook went on to elaborate about compromising his own values. That included a time as a young boy where he shook hands with then-Alabama governor, and noted segregation proponent, George Wallace. Cook felt he betrayed his own moral code, something he didn’t experience when shaking hands with the aforementioned President Carter.

Each person’s own values should represent who they are as individuals every day. While some in the business world fail to demonstrate that, a good business does. Staying on the path of a moral compass often brings increased business and positive attention to the organization. Furthermore, it will often make the company more desirable to investors looking for a quality addition to their portfolios.

When it comes to business, we don’t have as much freedom as individuals in regards to ethics — many are defined for us by regulations. Regardless, businesses must also forge a path paved with good ethics and values on its own. This article demonstrates how Kohlberg’s stages of moral development can shape a business from the board room to employees and extending to shareholders. It can be the trickle down effect that can, in theory, change a sector of the world. Because of their efforts, companies like Orbitz and Twitter consistently appear on lists of the happiest employees with little to no reports of ethical problems.

There are multiple lines a business must not cross when dealing with values and ethics. When it comes to managing relations with BDCs, a good development company wants to know a portfolio company will be successful while operating with high-quality suppliers and providers. In addition to having reputable partners, the BDC wants to ensure that the portfolio company isn’t cutting corners. Other relationships like industry and community relations must also remain important at all times. If any of these relationships falter, it raises a sizeable red flag over the offending business.

Internally, a business must have the values within itself to produce credible products and services. As the world moves towards preserving the Earth and humanity’s quality of life, less and less BDCs want anything to do with harmful or addictive products. Whether it be moral or financial, these businesses don’t provide much benefit to the BDC. Some development companies may remain open to this sector, but many have no interest in what some have labeled “sin stocks.” Those that do remain open to it know that there is an inherent risk in this sort of investment.

As previously mentioned, businesses have their values laid out for them in many ways through rules and regulations. Additionally so, if a company is large enough, they will certainly have to interact with the government on a rather regular basis. Everything from the SEC to regulatory boards can call upon you or your executives to answer for any inquiry or misdoing.

The true test of a company’s moral compass can come during these investigations. A business with integrity will often come out victorious as they have nothing to hide. As we have seen countless times from deceptive businesses, ethics will catch up to you eventually. Once caught, the fines from the government can be just the beginning to the problems it faces. If this offender were to disregard their community and customer relations in the build up to this occurrence, they will almost certainly have to dig themselves out of a massive heap of negative PR and potentially declining profits.

For an in-depth look at the issue you would be advised to take courses on business ethics, but hopefully this gives some insight to how important it is for individuals and businesses to form values that will guide them towards doing good for the world. Regardless if you are an Apple supporter or not, Cook’s words serve as a positive change in tone for many that grew tired of the cold, careless image of business. With forward thinkers like Cook pushing the narrative, the next generation of business leaders could take the torch and carry it much further.