MIT Sloan Management Review Article on Why Business Integrity Can Be a Strategic Response to Ethical Challenges

Governance — the “G” of ESG — has long been overshadowed by discussions of its counterparts, environment and sustainability, despite being a source of strategic advantage. While many companies view investment in governance simply as a means of staying out of trouble, proper corporate governance can — and should — drive company performance.1

To turn this idea into reality, a growing number of companies are moving toward a more holistic approach to ethical and responsible business. This involves aligning and coordinating across critical integrity functions, reducing box-ticking, and thinking holistically about ethical behavior, risk management, and value creation.2 In order to gain a deeper understanding of key challenges and success factors driving this approach, we conducted interviews with leaders from over two dozen large companies and multilateral institutions on the different steps they have taken to invest in business integrity as a strategic response to both risks and opportunities.

About the Author

Daniel Malan is an assistant professor in business ethics at Trinity College Dublin’s Trinity Business School and is cochair of the B20 Integrity & Compliance Task Force. Alison Taylor is executive director of Ethical Systems and a senior adviser at BSR (Business for Social Responsibility). Anna Tunkel is executive director and head of global strategic initiatives and partnerships at APCO Worldwide. Birgit Kurtz is a fellow of the World Economic Forum’s Partnering Against Corruption Initiative. Malan, Taylor, and Tunkel are former members of the World Economic Forum’s Global Future Council on Transparency and Anti-Corruption (2020 – 2022) and current members of the B20 Integrity & Compliance Task Force.