Tunisia: Patrick du Besset, "If the boss is a thug, the company behaves like a thug"

"Mom, do you know what happened today during my French exam? All my classmates gave their papers to the supervising teacher, who corrected them and gave them back. Can you imagine?" To test her, the mother replies: "You should have given him your paper; you would have guaranteed a better grade." "What? How can you say that, Mom? I would have gotten a good grade, but it's dishonest. I would have committed fraud and I would never know my true worth. Mom, you wouldn't accept that I succeed when I don't deserve it." This true little anecdote shows us that morals and ethics are a learned culture, a culture that permeates us and is supposed to accompany us throughout our lives.

Seeing the lack of enthusiasm shown by Young Leaders for ethics in business, highlighted by their absence at the breakfast debate organized on Saturday, June 12, 2010, on this theme and brilliantly animated by Patrick du Besset, Administrator of the Cercle Ethique des Affaires and Director of the Cercle Européen des Déontologues, who came specially from France for the occasion, we cannot help but be disappointed. Even if the absentees, or at least some of them, are obviously wrong, and triply so this time. Wrong not to believe in it, wrong to push cynicism, despite their youth, to the point of believing that ethics are not relevant in the entrepreneurial environment in which they operate—there is no reason to be present—wrong to believe that ethics have no place in the business world and do not generate profits, because it is proving more indispensable than ever for the smooth running of business and the development of their companies.

"The mind of the superior man is familiar with righteousness; the mind of the average man is familiar with gain," said Confucius 500 years BC. This remains true, at the risk of appearing candid, even naive in the eyes of many people, but true in the field. Because, as Patrick du Besset rightly says, "ethics such as righteousness, respect for others, respect for human dignity, exemplarity, integrity, courage, sincerity, loyalty, trust, respect for commitments, and transparency represent sure management values, and the companies that succeed the most and the best in France and in the world are those that adhere to ethical conduct."

Contrary to what skeptics and cynics think, ethical principles are based on elements firmly rooted in the reality of the company and aim at its preservation and continuity. A company that implements an ethical code must combine performance and ethics; by taking care of its image, it gains commercial value. The recent financial and economic crisis also proves how much the lack of ethics in business can harm, even leading to the collapse of the global economic system.

The question of ethics began to be seriously raised in France in the 1990s in reaction to corruption in business life. Several lawsuits were brought against business leaders for embezzlement, insider trading, and even money laundering. In reaction and to protect their interests, investors have become very demanding in their choice of investments and increasingly integrate ethical criteria. Today, and with the crisis, they prefer to place their funds in profitable companies concerned with the public interest and the preservation of natural resources. Public authorities in some countries are also getting involved; the French General Assembly has just examined a draft law on banking and financial regulation that aims to learn the lessons of the financial crisis and implement some of the recommendations of the G20. Opacity no longer pays, neither do bad practices, and this is true for everyone.

Companies are also rated for their ethics

Tunisia, well-ranked by many international rating agencies in terms of business climate, nevertheless faces the problem of corporate transparency. According to the Corruption Perception Index established by Transparency International, the main civil society organization fighting corruption, it was ranked 65th in 2009; in 2007, it was 64th. A setback, therefore... Whose fault is it? Considering the arsenal of reforms and laws put in place by the government aimed at strengthening good practices within companies, encouraging entrepreneurship, and improving the business environment, this ranking is poorly understood.

Among the criteria taken into account by the international NGO—of German origin—and practices condemned by ethical codes, we can cite the fact of giving false information, carrying out deficient controls, issuing false invoices, engaging in bad practices such as fraud, tax evasion, entering into agreements against the legal rules of fair competition, abusing a dominant position, abusing corporate assets, engaging in false advertising, wasting company resources, not respecting the environment, engaging in corruption, and other bad practices... The list is long...

Are these practices common in our country to justify our poor rating?

Why do our companies lack transparency and good governance?

"Entrepreneurial ethics is based on a "strategic" approach," explains Patrick du Besset, "an approach that aims to mobilize personnel and preserve the company's image. The purpose of the company is to respect all stakeholders. At its core, it defends good governance and advocates for better practices in the entrepreneurial environment to increase trust among all."

The risk of not having it is to see the company's image and reputation tarnished, to incur prison or civil penalties, and to be sanctioned by public opinion. In a country like ours, where companies are increasingly encouraged to go public, reputation becomes a determining factor in a company's success. The head of a company must demonstrate his ethical concerns and give guarantees of his convictions; he must communicate transparently, even about difficulties and failures; he must be credible and be the first to respect ethical rules. His collaborators will follow if they perceive sincerity and authenticity.

Any practice contrary to morals and harmful to the company must be incriminated. In countries like the United States, whistleblowers are considered courageous people who perform a civic and citizen act; in France, measures are being taken to protect them, and people are beginning to realize the importance of their role.

Because it is not logical to see one or more people engaging in illegal acts or corrupt practices and playing the role of those who see nothing; they become accomplices. It is also necessary to have been imbued with the company's interest, to have a sense of belonging, and to be aware of the risks of bad practices emanating from certain managers or employees to dare to go all the way with a denunciation. It is necessary to dare; unfortunately, it is also cultural in the Mediterranean, and denunciation is more criticized than certain thefts or acts of corruption. Who knows why. Oscar Wilde said, "Stand upon your principles, they will eventually give way." I don't know if "bending" refers to the principles themselves or to those who don't have any. For my part, I would rather think that those who do not have them will end up bending to principles.

Published June 15, 2010

Posted online June 15, 2010

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