GE, Wal-Mart, PepsiCo Among 17 Companies in Business Ethics Leadership Alliance

In response to the steadily declining public opinion of corporate America, 17 companies have decided to join the Business Ethics Leadership Alliance, an initiative to strengthen ethical standards in business and restore the trust of Americans, reports Francesco Guerrera and Jonathan Birchall of the Financial Times (FT.com).

According to the story, published on December 7th, 2008, GE, Dell, Wal-Mart, and PepsiCo are among the 17 companies leading the charge to improve ethics in business. The companies, who reportedly combine to generate $1,000B in annual sales, are committing to “key principles of good business conduct” in response to the backlash, both public and political, that has ensued against corporate America in wake of the recession and current American financial crisis.

“In these challenging economic times, it is important that the public have confidence in all of business and not just select companies. We take this very seriously,” said Larry Thompson, PepsiCo’s general counsel and a former deputy US attorney-general.

While the participating companies, including GE, Wal-Mart, and PepsiCo, appear to have definite altruistic intentions, the organizers of the Business Ethics Leadership Alliance also reportedly admit that participation is at least partly driven by a desire to “curry favor” with the Obama Administration.

The agreement signed by the 17 companies participating in the initiative covers four primary areas of ethical standards:

1. Legal compliance
2. Transparency
3. Avoiding conflicts of interest
4. Increasing accountability

The 17 founding members have reportedly pledged to encourage other companies to join the Business Ethics Leadership Alliance, while also agreeing to periodic examinations by independent auditors. To learn more about the Business Ethics Leadership Alliance, visit the official BELA homepage located on the Ethisphere Institute website.

Tags: business ethics leadership leadership alliance, ethical standards, Ethics, ge, legal compliance, pepsico, wal-mart