Easter 2002

It's good for business

In the wake of major corporate collapses and public outrage at director's behaviour BEN WELLS found one agency looking to change the way business works.

It's a lovely day outside. You have a slightly sore throat and things at work are pretty quiet. You haven't taken a sick day for months. You've been putting in plenty of unpaid overtime. So do you call in sick with your best hoarse whisper?

From sending joke emails to directing clients to another business, Australians are faced with ethical dilemmas every day at work. Australia is a young multicultural society host to many differing value systems. It seems impossible to get agreement in that grey area between what is morally right and what is legal.

'Christianity has been trying to do this for 2000 years', according to Michael Walsh, director of the Edmund Rice Business Ethics Initiative. The initiative is a project of the Christian Brothers seeking to promote conversation about ethical issues between business and the community. The centre has the support of industry leaders and an impressive line-up of academics. It runs forums attended by national and local business leaders and academics. It facilitates research and promotes ethical behaviour in the business world at large.

'We open up discussion in a non-judgemental atmosphere', says Michael, a carefully spoken man who thinks deeply about the wide range of ethical issues businesses face. Industry leaders and prominent journalists are invited to speak at the centre's forums. Michael is encouraged by the increasing response of those in business.

'We are hoping to reach everyone in the business world.'

The business ethics initiative is part of the Sydney-based Edmund Rice Centre for Justice and Community Education, which works closely with groups at the margins of society. Says Michael, 'Its focus has been on justice and reconciliation, but there was not a corporate presence. There was a need to get the big end of town involved in understanding their social obligations'.

The initiative provides a Christian platform for tackling ethical issues in the workplace. Involving big business in ethics at a grassroots level is not easy. Implementing codes to foster ethical behaviour, assuming greater responsibility for the community and promoting self-regulation are areas still to be addressed.

'It's a difficult task', explains Michael. 'I don't think you can argue a specifically religious case. Within the Catholic community or Catholic business sector you can, but in the wider community you have to appeal to a broader ethical consensus. Which doesn't really exist!' he adds, laughing.

'I know some business people probably write us off and say, "These people don't understand the hard world of business", or that we are too idealistic. But the Catholic Church has strong a tradition of social justice and promoting the decent treatment of people. When you mention to people about business ethics you get the old standard "That's an oxymoron", but I don't think that's true any more. I think the bigger corporations particularly are much more aware of their responsibilities in the wider scene.'

All companies must balance the task of making a profit and behaving in a socially responsible fashion. At one of the centre's recent forums, Australian Financial Review journalist Tony Harris suggested, 'Ethics are no longer a powerful force in Australian society. We are so pluralistic that we cannot even reach agreement on an issue such as abortion, so we should not be surprised that we do not have a shared view of what is important ethical action'.

There are an increasing number of business practices, once considered unethical, which are now illegal. Insider trading, winding back the odometer on used cars, and service stations colluding on fuel prices are just a few examples. So how are businesses best encouraged to behave ethically? Is the only answer the seemingly defeatist approach of tightening laws and regulations?

'I think there is a danger in over-regulating business', says Michael. 'There will always be a basic legal framework within which companies have to operate, but we are trying to educate them to behave beyond the strictly black letter of the law'.

One of the many questions being addressed by the centre is that of the responsibilities of shady executives of companies which become bankrupt. Says Michael, 'Often they're paid very highly, rewarded on the basis that they have this responsibility for the corporation, but is seems that when the company goes belly-up, they disappear. The handouts are staggering!'

Most people would agree with Michael's assessment as they recall scenes of the disgraced boss of a failed company nonchalantly driving down the circular path to his million-dollar mansion. Investigations into such behaviour may briefly placate the public, but Michael is concerned that once the investigation is over, little changes.

'Personally I'd like to see things followed through. One of my anxieties with investigations such as those into One.tel and HIH, is that they may go on for a long time and individuals may suffer but little is changed. I'd like to see more discussion on how we can do things better. I guess this comes back to personal responsibility, people creating a climate within business that accepts these responsibilities and doesn't look upon anyone who talks about ethics as a bit of a wimp.'

One of the most rewarding elements of Michael's role is the association with industry leaders who actively promote change in the business ethics landscape. These are people who have realised that there is value in behaving morally - not just as a public relations exercise but genuinely endeavouring to maintain long-term community goodwill.

'Here's a group of successful business people who have a good conscience about ethical responsibility. I'm sure there are a lot more out there who never hit the headlines. People are beginning to see the relevance of some of these issues.'

To find out more about the Edmund Rice Business Ethics initiative visit their website at http://www.erc.org.au/busethics

'It's reconciliation in action. When you go and see them all in the playground mucking around together, you see that it doesn't matter what colour you are', remarked Anna. 'I've been taken aback with what's happening at Star. The girls haven't encountered any racism at all.'

Having taken Djarindjin students on school trips to other cities around the country, Darren is an enthusiast of Melbourne as a place to bring indigenous students from remote communities.

'It's such a cosmopolitan place, the kids just blend in. Star reflects that diversity. Kids from other cultures, kids in wheelchairs, kids with learning disabilities, the atmosphere at that school is incredible.'

The pride in cultural diversity is mirrored in the school's commitment to recognising the ability of all students. This was highlighted when Kerri Anne, who has now been at Star for close to three years, performed an indigenous dance at the school's presentation night at the Melbourne Concert Hall.

The educational approach at Star has been an integral part of the girls' development, although as Rosalie emphasised, our understanding of development is culturally biased. In choosing her subjects for Year 11, Kerri Anne has been able to enrol in a Vocational Education and Training course in community services at Holmesglen TAFE. This will give her chance to acquire skills that will assist in developing her home community.

Star's focus on relationships in the classroom has made a big impression on the girls from Djarindjin. Rosalie explains, 'The subjects offer the structure on which the values are attached - it's about relationships in the classroom.'

Darren and Anna believe that this has allowed girls like Kerri Anne to become 'much more confident in dealing with non-Aboriginal people'. In the end, this works towards the larger goal of self-determination for Kerri Anne and her community.

'Kids like Kerri Anne influence the younger kids as well. When they see her and the others going off to school in Melbourne or wherever, they realise that they can do that too.'

When asked what the project means for the wider school community, Rosalie responds, 'It's hard to transport 1100 girls to an Aboriginal centre and get a real understanding of indigenous culture. Whereas living alongside each other and working together enables our girls to gain a fantastic understanding in a way we could never have got otherwise.' She believes it makes a big difference when you have 'real people talking about real situations'.

Rosalie also acknowledges the effect of the program on teachers, including herself.

'Certainly I know a lot more about Aboriginal culture and have a much better understanding than I did before. I feel very honoured to have been involved.'

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