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Ethics in the Consulting Industry: Reality or Illusion?

In the years following a 2008 recession, businesses are regaining their momentum, and the economy has begun flourishing again. In the wake of the most ferocious financial earthquake of the final 80 years, society continues to feel its tremors. Is this a sign of evolvement and growth? Or could it be a notice of a far more catastrophic phenomenon on the horizon? Unemployment is down and a majority of economists are optimistic in regards to the future. Organizations are expanding globally, and leaders are striving to attach their names with their companies’successes. But is this enough? Is success and welfare the sole measures of success? Do leaders of organizations decide in favor of the well-being of the enterprises, or do they follow their particular narrow ambitions? The search for personal interests is the initiator of a capitalist economy, but that doesn’t justify actions that harm organizations, the folks they serve, or society as a whole. And so the “do no harm” business ethics debate rages on, expanding and infecting the “trusted advisers” of the consulting industry
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Consultants Should Do No Harm

In management consulting, executives and consultants are primarily accountable for creating value and safeguarding the interests of these clients, however they should also protect society by pursuing their goals in a moral manner. Needless to say, they focus on their clients’businesses making sound profit, shareholder equity and continuous growth, nonetheless it can be their responsibility to align the interests of the clients with the general good.

They’ve an obligation to recognize that there are multiple stakeholders, customers, employees, society and the environmental surroundings, not just shareholders and management. They will act with the utmost integrity, and serve the more good, having an enhanced sense of joint accountability. It is essential to understand that their actions have profound consequences for all, inside and outside the organization, now and in the long run. Consulting companies, should focus more on ethical guidance, as they hold significant influence over many companies’strategy and plans.

Consulting companies (strategy, management, accounting, etc.) have an obligation to advise their clients on how to build their successful enterprises on a solid foundations, and to simply help them achieve sustainable economic, social, and environmental prosperity. It’s their responsibility not to distort or hide the truth behind facts, but to explain the reality and promote transparency. They should also demonstrate for their client’s ethical ways to reach their goals. But is this what is happening today?

Double-dealing, Fraud, Corruption, Insider trading and that’s just the end of the iceberg

If we have a close look at incidents that have occurred in the recent past, we look for a rotten record of behaviors in the management consulting industry. Numerous examples exist of partners and employees of major management consulting firms being involved with illegal and unethical scandals, in efforts to retain clients and to harvest personal gains. This can be a common among individuals who put their profits before customers.

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