BUSINESS ETHICS IS THE KEY TO SUSTAINABLE SUCCESS DR. WINGCO LO, CHAIRMAN OF THE HONG KONG BUSINESS ETHICS DEVELOPMENT ADVISORY COMMITTEE OF THE INDEPENDENT COMMISSION AGAINST CORRUPTION Dr. Wingco Lo, Chairman of the Hong Kong Business Ethics Development Advisory Committee (BEDAC) of the Independent Commission Against Corruption (ICAC), shares his thoughts on the importance of sustaining an ethical business environment in Hong Kong and his experience in promoting good governance as the Chairman of the CMA Testing and Certification Laboratories (CMA Testing). What is the mission of the Hong Kong Business Ethics Development Centre (HKBEDC)? Why is its work significant to the sustainable development of Hong Kong? HKBEDC was set up in 1995 under the auspices of the Community Relations Department of the ICAC with the aim to promote business and professional ethics in Hong Kong on a long-term basis. Its work is guided by the BEDAC, comprising representatives from ten major chambers of commerce including the British Chamber of Commerce in Hong Kong. With the concerted effort of HKBEDC and local business community throughout the years, Hong Kong now enjoys a level-playing business
environment and is widely recognised in many international surveys as one of the least corrupt and most competitive places globally. One example is the Transparency International’s Corruption Perception Index 2020 which ranked Hong Kong the 11th least corrupt place among 180 countries/territories. The clean and fair business environment has enhanced Hong Kong’s competitiveness as an international financial centre and a prime business hub that enables investors to tap into the multitude of business opportunities in China and neighbouring countries. Should business ethics give way to other priorities such as financial gain and business survival in the economic downturn that we are facing today? It is of vital importance for business organisations to strengthen their ethical governance in times of economic decline when financial difficulties could increase the incentive for unethical practices. Taking the testing industry as an example, I have come across incidents that clients might risk to bribe testing staff for their assistance in expediting the test procedures or even falsifying test results. These situations are not uncommon in adverse economic conditions where companies cannot afford financial losses due to delays or unfavourable test results. My experience is that strong ethical awareness of staff and high integrity standards of the company are the keys to mitigate these ethical risks. Business ethics is indeed a long term investment and a valuable asset for business organisations. It helps companies maintain their reputation, gain customers’ trust, build a strong ethical workforce and achieve sustainable business growth in the long run. Even at times of adversities, business leaders should not surrender the value of integrity and take the risk of engaging in unscrupulous business practices, which will sacrifice the reputation of the company or even cause legal ramifications. How can a business organisation strengthen its ethical governance? Any advice to business operators who cannot afford much resources in doing so? Depending on the nature, size and needs, business organisations can adopt different
