CEO Corner: Relationship between ethics and customers

In the 1/19/10 issue of Forbes.com, Don Kraus, CEO, Clorox, discussed how an organization can influence customers with the way it conducts its business. “Influence comes from integrity and trust,” says Mr. Kraus. “Integrity, to me, is the foundation of trust, and trust is the grease of commerce.”

To build and maintain trust with customers:

– Develop a strong, company-wide reputation for integrity through clearly established internal ethical principles
– Establish strict ethical processes for customer-facing teams and their support people
– Implement a company-wide code of conduct for all employees, directors, vendors and suppliers
– Walk the walk
– Take a principled stand against customers that behave in a less than ethical manner

Don Krauss concluded: “That is the stand that Clorox has taken, and we’re a 96-year-old company. We take this stand because we want to be around for another 200 years, not another 2. Quite simply, companies without an embedded foundation of principles and values will not survive.”