Can we make businesses more ethical? | Elena Lopez | TEDxWarwickSalon
Summary
TLDRElena Lopez, a business ethics consultant, shares her journey and insights on preventing corruption, human rights abuses, and promoting ethical business practices. Drawing from real-world scandals like Rana Plaza, Boohoo, and Volkswagen, she emphasizes the importance of business ethics, not only to avoid legal and reputational damage but to create ethical workplaces. Lopez urges individuals to make a difference by speaking up, researching their employers, and making responsible purchasing decisions. She stresses that ethical behavior in business impacts everyone, regardless of their career path, and encourages active involvement in fostering a culture of integrity.
Takeaways
- 🌍 Elena Lopez is a business ethics consultant who works in human rights and anti-corruption.
- 📚 She developed her interest in these topics while growing up in Spain and pursued studies in PPE at Warwick and a Master's in Development Studies at Cambridge.
- 🏛️ Initially, she believed she would work on these issues from the public sector, but her Master's opened her eyes to the role of business ethics in the private sector.
- 🏢 Business ethics involves compliance officers and human rights officers within companies, as well as external consultants like herself, who advise companies on meeting regulations and ethical standards.
- 🔍 Major scandals like the Rana Plaza disaster, Volkswagen's Dieselgate, and the Boohoo factory wage scandal are only the tip of the iceberg compared to daily injustices that occur within companies.
- ⚖️ Lopez's work involves investigating how companies treat workers, interact with governments, and impact the environment to prevent corruption and human rights abuses.
- 🗣️ The role of a business ethics consultant includes providing solutions and recommendations for companies to improve practices and comply with legislation.
- 💼 Companies seek help due to increasing pressure from legislation, such as the UK Modern Slavery Act and EU Whistleblowing Directive, as well as from consumers and investors pushing for ethical business practices.
- 🙋♂️ Employees in all fields, even outside business ethics, can contribute by speaking up about unethical practices, giving feedback on company policies, and promoting a culture of care.
- 🛒 Consumers can also make a difference by being mindful of their purchases, researching company practices, and advocating for more transparency through social media.
Q & A
Who is the speaker, and what is her professional background?
-The speaker is Elena Lopez, a business ethics consultant who works in human rights and anti-corruption. She has a background in PPE (Philosophy, Politics, and Economics) from Warwick University and a Masters in Development Studies from Cambridge University.
What inspired Elena Lopez to pursue a career in anti-corruption and human rights?
-Elena Lopez was inspired to work in anti-corruption and human rights due to the frequent news coverage of bribery and corruption while she was growing up in Spain. Her academic background furthered her interest in these areas.
What are some notable scandals Elena Lopez mentions in her talk?
-Elena mentions several notable scandals: the Rana Plaza building collapse in Bangladesh (2013), the Boohoo supplier scandal in Leicester (2020), the Volkswagen dieselgate scandal (2015), and the Goldman Sachs bribery scandal in Malaysia and Abu Dhabi.
How does Elena Lopez describe her work as a business ethics consultant?
-Elena investigates how companies treat their workers, communities, and the environment. She advises companies on how to meet legal standards and best practices, ensuring that they avoid human rights abuses and minimize corruption risks.
What role does legislation play in business ethics according to Elena Lopez?
-Legislation plays a significant role in pushing companies to act ethically. Elena references various laws such as the UK Bribery Act, the US Foreign Corrupt Practices Act, and European human rights due diligence laws, which require companies to adopt ethical practices.
Why do companies seek the help of business ethics consultants like Elena Lopez?
-Companies seek help from business ethics consultants either after scandals, to avoid future issues, to comply with legislation, or to meet the increasing expectations from consumers and investors regarding ethical business practices.
What are some of the less-publicized injustices Elena Lopez has witnessed in her work?
-Elena has witnessed injustices like employers requiring women to take pregnancy tests monthly, surveillance of employees to prevent them from resting, water scarcity issues in factories, and the dismissal of trade union representatives.
What advice does Elena give to individuals entering the workforce regarding ethics?
-Elena advises individuals to give feedback on internal policies, speak up when they see something unethical, use whistleblowing systems, and ensure that they create a culture of care and respect if they manage teams.
How can individuals make ethical choices in their private lives, according to Elena?
-Individuals can make ethical choices by learning more about business ethics, critically consuming social media, using their purchasing power wisely, researching employers, and holding companies accountable for unethical practices.
What is the significance of consumer and investor pressure in ethical business practices?
-Consumer and investor pressure is increasingly pushing companies to adopt ethical practices. Scandals and greater awareness mean that companies risk losing revenue and investment if they fail to meet ethical standards.
Outlines
👩💼 Introduction to Business Ethics and Corruption
Elena Lopez introduces herself as a business ethics consultant specializing in human rights and anti-corruption. She reflects on her early exposure to issues of bribery and corruption in Spain, which sparked her interest in combating such injustices. Initially, she believed she would need to work in the public sector to address these issues but later discovered the private sector's role in promoting ethical business practices. She explains how companies employ compliance officers to prevent negative societal impacts and how business ethics consultants like herself advise companies on legislation and best practices.
🏢 Real-world Corporate Scandals and Their Impact
Elena discusses various corporate scandals that highlight the consequences of unethical business practices. She recounts significant incidents such as the 2013 Rana Plaza disaster, where workers were forced to work in unsafe conditions, and the 2020 scandal involving Boohoo, where workers were underpaid. She also touches on Volkswagen’s 2015 Dieselgate scandal and Goldman Sachs' corruption case. These examples serve to illustrate the gravity of business ethics violations and emphasize the importance of preventing such occurrences. Elena notes that many other injustices happen daily that do not make headlines, including discriminatory practices and human rights abuses in workplaces.
🔍 Addressing Ethical Issues and Creating Solutions
Elena explains her role as a business ethics consultant, where she works with large companies and public institutions to investigate and mitigate ethical issues. Companies approach her after scandals or to prevent future incidents, seeking help in meeting legal requirements and adopting best practices. She conducts thorough investigations, reviewing documents and interviewing employees, from CEOs to workers in various sectors. Her work involves developing action plans and recommendations to help companies address human rights concerns and reduce bribery and corruption risks.
📜 The Evolution of Business Ethics Legislation
Elena discusses the growing importance of business ethics over time, noting that companies increasingly care about these issues due to both legislation and consumer pressure. She outlines key legislation, such as the US Foreign Corrupt Practices Act, the UK Bribery Act, and the Modern Slavery Act, as well as recent laws in Germany and Norway. Consumer awareness and ESG (Environmental, Social, and Governance) investing have also driven companies to adopt more ethical practices, as failing to do so could hurt their reputation, finances, and ability to recruit talent.
🎓 Advice for Students Entering the Workforce
Elena offers advice to students entering the workforce, stressing that business ethics will impact their careers, even if they do not directly work in the field. She encourages students to engage with internal company policies and provide feedback on ethical concerns. Elena also emphasizes the importance of speaking up against mistreatment or suspicious behavior, noting that companies are increasingly required to have whistleblowing systems. As future managers, students are urged to create a culture of care and ensure ethical behavior in their teams.
🌱 Making a Difference in Personal and Professional Life
Elena concludes by discussing how students can make a positive impact in their personal and professional lives. She encourages them to stay informed about business ethics through podcasts and articles, be critical of social media content, and research the ethical practices of potential employers. By making conscious consumer choices and supporting transparent and ethical companies, individuals can contribute to a more just and responsible business environment. She stresses that holding employers accountable and integrating ethics into daily decisions will shape a better working world.
Mindmap
Keywords
💡Business Ethics
💡Bribery and Corruption
💡Human Rights
💡Rana Plaza Disaster
💡Volkswagen Dieselgate
💡Compliance
💡ESG (Environmental, Social, and Governance)
💡Legislation
💡Whistleblowing
💡Investor Pressure
Highlights
Elena Lopez discusses the importance of business ethics and human rights in the workplace.
Lopez's interest in bribery and corruption was sparked by daily news in Spain.
She studied PPE at Oxford and pursued development studies at Cambridge University.
Lopez initially thought preventing corruption required working in government.
Her master's studies revealed the significant role of private sector in business ethics.
Business ethics consultants advise companies on meeting legislation and best practices.
Lopez shares examples of scandals like Rana Plaza collapse and buho wage scandal.
Volkswagen's dieselgate scandal is highlighted as an example of environmental rights violation.
The Goldman Sachs scandal is mentioned as a major case in Foreign Corrupt Practices Act.
Lopez emphasizes that media-reported scandals are only a small part of the injustices in companies.
She describes unseen issues like pregnancy tests for women and worker surveillance in factories.
Companies are increasingly seeking help to prevent scandals and improve ethical practices.
Lopez's work involves investigating companies' treatment of workers, communities, and the environment.
She spends most of her time speaking to workers to gather information confidentially.
The goal is to ensure companies do not negatively impact human rights and reduce corruption risks.
Companies are motivated to improve due to legislation, consumer pressure, and ESG investing.
Lopez advises graduates to consider the ethical impact of their work, even outside business ethics.
She encourages speaking up against mistreatment and using whistleblowing systems.
As managers, it's crucial to set a culture of care and不允许不当行为.
Lopez suggests being critical of social media consumption and making informed purchasing decisions.
She advises researching potential employers' ethical standards and policies.
Lopez concludes by emphasizing the importance of integrating ethical considerations into daily life.
Transcripts
[Applause]
hi I am Elena Lopez and I'm here today
to talk to you about some of the issues
I want you to consider as you enter the
world the world of
work I'm a business ethics
consultant I work in human rights and I
work in anti-b and anti-corruption
when I was growing up in Spain I was
very interested in issues of bribery and
Corruption perhaps because I was seeing
it on the news every day and as I
studied PPE at War and then went on to
do my development studies Masters at
Cambridge University I was increasingly
interested in what people could do to
prevent bravery and Corruption from
happening and prevent human rights
abuses from
happening and I thought that in order to
work in the field I would need to do so
from the private from the public side
sorry so I thought I would have to be
drafting laws drafting policies working
in government to stop bravery and
Corruption from happening and from um
stopping human rights abuses from
happening but what I learned in my
masters was that actually there is a
whole private side to it a field of
business ethics that I didn't know about
and this is both within companies like
compliance officers or human rights
officers that are working within
companies to look at the programs that
they have to ensure they're not
impacting negatively on
society and The Wider business ethics
field with consultants and experts that
advise these companies on how to meet
legislation and that is what I do today
I'm a business ethics
consultant and the work I do is so
important because we all know what
happens when things go wrong
you might have seen some of these
headlines or scandals you might have
seen many others because we hear about
scandals every day every week every
month you might have heard of the Rana
Plaza uh building collapse in Bangladesh
in
2013 where more than 1,100 people died
in one of the biggest industrial
disasters in
history and this was a building that
hosted five garment factories and
workers were going to work forced to
work even though it was clearer than the
building wasn't
safe you might have heard in 2020 of the
scandal from buho um where it was found
out that they were supplying for
suppliers in leester where workers were
being paid as little as 3.5 pounds an
hour when the minimum wage in the UK at
the time was 8.7 72 PBS an hour so much
higher this was also in the middle of
the pandemic and it was um also found
that workers didn't have the sort of
safety space between each other they
didn't have
PPE you might have heard in looking at
sort of environmental rights you might
have heard about the
Volkswagen um dieselgate Scandal this
was when in
2015 it was found that Volkswagen cars
or some of those cars were fitted with
with technology that meant that even
though they looked compliant with EU uh
laws about emissions in fact they were
emitting up to 40 times the permitted
amount of nitrogen
dioxide looking at sort of bribery and
Corruption issues you might have heard
of the Goldman Sachs Scandal one of the
biggest findes in the Foreign Corrupt
Practices Act legislation in the US they
be fined with a $2.9 billion fine in
connection with the bribes that they
were paying to Malaysian and Abu Dhabi
officials to get lucrative business and
they made hundreds of millions out of
this so you might have seen these sort
of headlines and many others but as a
business ethics consultant I can tell
you that what you see on the news is
only a small proportion of the
injustices that occur every day in
companies around the world
you don't really see headlines or whole
articles about some of the things I've
seen you don't see articles about the
pregnancy tests that women are being
asked to take every month by their
employer to make sure they're not
pregnant so that they can't so that if
they are they're
fired you haven't seen the cameras that
I've seen in factories that make sure
that employees are monitored so they
don't sit down and stop working at any
point in the
day you won't have heard necessarily all
the issues with water scarcity in
factories and plantations and Farms the
scorching heat the bullying harassment
and discrimination of minority groups
and companies around the
world the and as well for example Trade
union Representatives being dismissed
when they're trying to speak up about
some of these
issues but I can tell you these things
happen because I've seen them in my
work but I can also assure you that
companies are working hard every day to
try to reduce both the big impacts that
we've seen in the news as well as the
small impacts and I can assure that
because otherwise I would be out of a
job so nowadays the clients that I have
and the consultantcy I work for have are
generally big companies that have
subsidiaries around the world and they
want to know what's really going on in
their
operations it is public institutions it
is global firms it is um sort of big
investors that want us to look into the
companies they're invested in to make
sure they're not having a negative
impact whether it's on labor rights on
or on bribery and
Corruption
and what I do within my work is find
Solutions find recommendations for all
these clients on what they need to do so
they come to us after a big scandal
because something has gone wrong and
they want to make sure it doesn't happen
again or when there's been a scandal in
their industry so they've seen X company
has had this issue they want to make
sure they don't have it it is also to
make sure that we help them meet
legislation so the law says that that I
need to have this how do I make sure I
do and also to go beyond the law to do
what we consider as best
practice in order order to do this I
investigate how companies treat
workers I investigate how they treat
their communities and the
environment and when I look at briy and
Corruption I'm doing similarly because
I'm seeing at how the impact on the
public uh system the government how they
interact with government officials with
police with
judges so in order to do my work I do a
lot of desktop research I don't I do a
lot of document review but most
importantly I spend my time talking to
people I speak to CEO CEOs SE Suite
Executives managing directors to
governments I speak to NOS I speak to
suppliers and communities and I speak to
workers the majority of my time I spend
it speaking to workers there might be in
standard offices or in doing manual
labor in farms plantations
in factories in oil rigs all over the
world and I speak to them as an
independent third-party um Outsider of
the company or the
institution gathering information in a
confidential way so then I can go back
to the
companies and give them sort of
aggregate Trends I never say this person
told me this but we talk about issues
that I find and then importantly we talk
about the recommend ations that we give
them and the action
plan what we're trying ultimately is to
make sure they don't impact on human
rights and they reduce the sort of
bribery and Corruption risks that they
face and why do companies come to us of
course we've spoken about scandals and
this is something they want to
avoid but another important point is
that companies are made up of people
like you and I and it's people that went
to University and studied something that
they loved and they want to then go into
the world of work and do it ethically
they don't want to be ashamed about the
work they do and the companies they work
for and so it is people that want to do
the right thing and that's what I find
very often with my
clients other companies come to us
because of the increasing legislation in
both bribery and Corruption and human
rights when the company I work for
started in 2000 there was very little
work in business ethics companies didn't
really care about these topics but over
time we've seen that increasingly comp
companies are coming to us and they care
and part of it is because of
legislation because we had uh
legislation in the US the Foreign
Corrupt Practices Act that was
strengthened in 1998 then we had the UK
bribery act 2010 UK modern slavery act
2015 French laws on briy and Corruption
and human rights 2019 17 sorry
whistleblowing directive in the EU
2019 and now this year we have more
human rights due diligence laws in
Europe Germany and and uh Norwegian and
Norway sorry the transparency
act and more pressure for the EU to
bring legislation that will apply to all
EU members which also gives more
pressure to the UK to have similar
legislation
other companies um come to us because of
the consumer pressure because those
scandals and just greater awareness by
consumers means that actually if they
don't change their practices they will
have less um less Revenue because people
won't uh buy their products or their
services and as I mentioned some of our
clients are investors so we really see
the increase of ESG investing of our
environmental social and government
governance investing which means that
companies also care about these issues
because they have to in order to bring
in the investment that they need to grow
and in the end it makes sense for
companies to do the right thing and to
work
ethically because the the costs of not
doing so are too high as we said there
are reputational costs there are costs
together in relation to the legislation
like legal fines and and legal fees and
prison time there is the loss of
management time having to deal with the
scandals um it's also harder to recruit
people and so in general it also makes
sense for companies increasingly as
people are more aware of these issues to
work
ethically so most of you sitting here
are either finishing University or
starting this very exciting Journey
some of you might work in the business
ethics field like me as a business
ethics consultant as a human rights
officer or compliance officer within a
company but most likely most of you will
work in something completely different
whether it's Tech Finance marketing
Human Resources social media medicine
research whatever it is that is not
necessarily business
ethics and what I want you to to take
away from this talk is that even if your
career is outside of business ethics
strictly these issues will still impact
your life and there is also something
that you can do to make sure that
businesses are more
ethical the internal policies that
govern your work will influence the
culture the safety the quality that you
have in your future
jobs and there are certain things that
you can do in your job no matter where
it is whether it's in a private company
or a public institution because all
companies and all public institutions
anyway still have policies and
procedures will you can do is give
feedback is to tell people like me that
are drafting those policies and that are
setting sort of programs and strategies
about culture and the way we treat
others and the way we treat our
suppliers and our supply chains
Etc what works and what doesn't so you
really need to tell us so that we can
build that in into those policies
it's also very important that you speak
up when you see something that is not
right when you see someone being
mistreated bullied harassed when you
think something suspicious is going on
when you're worried about an impact that
you have in your com that your company
has in general it's really important
that you speak up and most companies now
need to have a whistleblowing or
speaking up system align because this is
increasingly being asked of companies
with legislation and the more people
that use those lines the more more
people that say that something is an
issue the stronger a sign it sends to
companies so that they know that there
is a systemic issue that they need to
address and they do look at these um
speak up lines very carefully to address
them moreover as you progress in your
career you might manage a team supervise
a
team and managers make all the
difference
it's really important that as you have
that role of power you set a culture of
care where people can speak up they can
tell you their concerns where certain
behaviors are not allowed and not
tolerated
and it's always important how you treat
people but particularly when you're in a
position of power it's really important
and this is something that I see all the
time in my work it makes a big
difference
besides and beyond your working life
your private life now as a student or
even after while you are working it's
really important and you can make a
difference in the things that you do in
your private life so you can learn more
about the risks and about business
ethics you can learn more about what
companies are and aren't doing you can
listen to bribery and Corruption
podcasts like the global anti-corruption
podcast you you can listen and read
different blogs on the issues there is
for example uh a very useful page called
um business and human res uh human
rights Resource Center and they have
fantastic articles every day on scandals
on legislation and what's going
on you can be critical in your social
media consumption when you see ads of
companies when you see people talking
about companies that you should buy
things from to really investigate and
learn what's behind that what are the
labor rights consequences of fast
fashion what are sort of the bullying
and harassment scandals in video gaming
companies
Etc and you can use social media to
demand companies to be more transparent
to tell your friends and family about
what you found and why they shouldn't be
spending money
somewhere and that follows to my next
point you can spend wisely you can think
about where your buying everything that
you're buying from to make sure that
you're not contributing to the revenue
of companies that are damaging the Earth
and hurting um both their employees and
the communities around their
operations and another thing that you
can do as you finish University is to
research your employer you have the
luxury of being in a market where
employers employers want you and so you
can look at the policies that they
have their the reports that they have
what they're disclosing to see if their
culture matches your expectations and
what you want in your working life and
this is also something that you can
bring up in the
interviews the more you think about
these issues and make them a part of
your daily thinking the more you will
think about them when you're in the
Working World and the more you will be
able to hold your employer accountable
[Applause]
you
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