The fact is that unethical business practices are likely to be publicly exposed, affecting consumer attitudes and a company s reputation in turn. The relationships between business and society are important. Companies enjoying a reputation for being corporate citizens can develop good customer, employee and shareholder relationships. Employees often want to be able to feel that their employer takes its responsibilities to society seriously. Indeed, a company s values, standards and behaviour can have an impact on society as a whole.
Shareholders increasingly expect businesses to behave ethically.
Research has indicated that more than two thirds of shareholders would prefer to invest in companies that worked with charities. In response, the Government has introduced new legislation under the 1995 Pensions Act will require trustees of occupational pension schemes from July this year to state the extent to which social, environmental and ethical considerations have been taken into account in the formulation of their investment strategies. For these reasons, my Department is keen to encourage the spread of socially responsible business behaviour. This includes the spread of best practice through sponsorship of Business in the Community s Examples of Excellence Awards. This highlights those companies which are making an outstanding contribution in terms of socially responsible business behaviour.