Building a strong corporate ethical identity : key findings from suppliers

Abstract

The building of Corporate Ethical Identity, a process referred to as “ethicalization,” is an important strategic imperative and represents an integral part of a firm’s attempts to build a strong corporate identity across its various stakeholders. This article focuses on ethicalization at SAB Ltd (South Africa’s leading producer and distributor of alcoholic and non-alcoholic beverages, and one of the nation’s largest manufacturing firms) and the impact of its efforts on supplier perceptions. Leaders and managers must consider six factors that drive the formation of ethical identity across an organization’s stakeholders: trusted relationships; organizational citizenship; development and enforcement of ethical policy; procurement contracting; provision of information; and procurement administration.