Ethics in the Consulting Industry: Reality or Illusion?

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

Consultants Should Do No Harm

In management consulting, executives and consultants are primarily accountable for creating value and safeguarding the interests of their clients, however they should also protect society by pursuing their goals in an ethical manner. Of course, they focus on their clients’businesses making sound profit, shareholder equity and continuous growth, but it can also be their responsibility to align the interests of these clients with the typical good.

They have an obligation to recognize that there are multiple stakeholders, customers, employees, society and the environmental surroundings, not only shareholders and management. They need to act with the most integrity, and serve the greater good, by having an enhanced sense of joint accountability. It is critical to appreciate that their actions have profound consequences for all, inside and outside the corporation, now and in the long run. Consulting companies, should focus more on ethical guidance, while 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 simply help them achieve sustainable economic, social, and environmental prosperity. It’s their responsibility to not distort or hide the truth behind facts, but to explain the truth and promote transparency. They have to also demonstrate with their client’s ethical ways to reach their goals. But is this what’s happening today?

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

When we take a close look at incidents which have occurred in the recent past, we locate a rotten record of behaviors in the management consulting industry. Numerous examples exist of partners and employees of major management consulting firms being associated with illegal and unethical scandals, in efforts to retain clients and to harvest personal gains. This can be a common among people who put their profits before customers.

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