A company in Nigeria might be small in corporate social responsibility related matters, but is big on adhering to ethics guiding businesses in the country. This is because not complying to matters related to the law can have an implicating outcome that could hurt the business.
While corporate social responsibility is focused on voluntary efforts carried out by corporations, business ethics are more compelling to adhere to, as they define a company’s image and what they truly represent.
This post highlights important questions on business ethics and corporate social responsibility in Nigeria.
What is Business Ethics?
Simply put, business ethics are those values, and moral principles which guide how businesses are conducted. Business Ethics in Nigeria focuses on how businesses are operated and conducted evidenced by their moral principles and values.
Principles Guiding Business Ethics in Nigeria
Just like you have in other parts of the world, there are principles established for conducting businesses in Nigeria as well.
Business ethics in Nigeria influences companies’ internal operations, interactions with stakeholders, and the decision making process. The principles guiding business ethics in Nigeria are identified as:
Fairness
Accountability
Transparency
Justice
Integrity
Honesty
Adherence to laws and regulations
Social Responsibility
Respect for business stakeholders
Support for environmental sustainability
Laws Guiding Business Ethics in Nigeria
There are laws in establishment which ensure that businesses in Nigeria are guided by the identified business ethics. These laws include;
the Companies and Allied Matters Act (CAMA) 2020; the Nigerian Constitution 199 (as amended); Security and Exchange Commission rule and regulations; Nigerian Stock Exchange listing rules; Labour Act 1974(as amended); Economic and Financial Crimes Commission Act 2004, and other laws as stipulated by the federal government of Nigeria.
Regulatory Bodies in Charge of Enforcing Business Ethics & Standards in Nigeria
As a business establishment in Nigeria, there are regulatory Bodies put in place by the government to ensure that laws are not violated, and that the labour of employers are not exploited.
Nigerian Stock Exchange Corporate Affairs Commission
Independent Corrupt Practices and Other Related Offences Commission
Federal Competition and Consumer Protection Commission
National Environmental Standards and Regulations Enforcement Agency
Institute of Chartered Accountants of Nigeria
Nigerian Institute of Management
Code of Corporate Governance 2018.
While corporate social responsibility is determined to further improve the society through the voluntary efforts organisations are willing to give evident through their resources, time, and commitment, business ethics is focused on building values and principles that abides by the already established laws of the country guiding businesses.
Though similar on identifiable terms, there are key differences between business ethics and corporate social responsibility in Nigeria which includes the following:
Goals
Like previously stated, the goal of organisations who partake in corporate social responsibility is to improve society by creating positive social and environmental results.
Scope
Corporate social responsibility deals with external operations of the business by seeking ways to influence social and environmental impacts, while business ethics addresses internal operations of organisations.
Priority
Business ethics prioritises values and moral principles, while corporate social responsibility gives emphasis to matters related to social and environmental responsibility.
While business ethics and CSR may have over shared values, as well as guarantee long-term growth, they are both distinct in the contributions they make to help organisations grow in Nigeria. .
