Control functions can play a pivotal role in embedding ethics as a strategic business asset

Would you board a plane if the pilot prioritizes speed over safety? Or get into a car with a driver who takes shortcuts and ignores traffic rules just to save you money? The same principle applies to corporations: effective management isn’t about chasing performance at any cost. It’s about achieving sustainable success while respecting the rules—because those rules are the foundation that ensures lasting, secure performance.

Investing in control functions, especially continue doing so during tough economic times, isn’t a cost—it’s a safeguard. Effective controls protect businesses from costly risks like fraud, regulatory fines, and reputational damage, which tend to increase in economic downturns. They also identify efficiencies, unlock opportunities, and build trust with stakeholders. By strengthening the control environment now, Management is ensuring resilience and positioning the company for sustainable recovery and long-term growth.

Ethical business practices and a robust compliance program aren’t just about following rules—they’re about protecting your bottom line, reputation, and future growth. Companies that embrace ethics and compliance not only avoid costly fines and legal battles but also gain trust from customers, investors, and employees. In today’s world, trust is a competitive advantage that directly drives profitability. The choice isn’t between compliance and success—it’s about using compliance as a strategic tool to ensure sustainable success. So, ethical business practices should be turned into a business asset, not just a requirement.

To do so, ethics into a business asset, Management need to embed it into the company’s culture, operations, and strategy. They need to lead by example, align ethical practices with business goals, and establish a robust compliance program. They need to foster transparency, train leaders, and use ethical commitments as a competitive advantage. They need to measure impact, celebrate successes, and continuously improve. This approach not only mitigates risks but also builds trust, enhances reputation, and drives long-term growth.

Control functions can play a pivotal role in embedding ethics as a strategic business asset by moving beyond box-ticking and demonstrating their strategic value. They can effectively achieve these goals by aligning with strategic goals, providing actionable insights, and shifting focus from processes to outcomes. They enhance credibility by demonstrating measurable impact, fostering collaboration, using technology for proactive risk management, and speaking the board’s language. By acting as strategic partners and showcasing value creation, they become trusted enablers of sustainable and ethical business growth. 

The above may be well understood, but it must be put into practice to reap the associated benefits!