Accountability is the buzzword of the hour regarding organizational sustainability in a future that has already arrived. This article explores the principles governing this practice—which, in simple terms, is a company’s responsibility for all its actions. This shift demands greater transparency in how information is managed and communicated.
How important is this for a business?
A company’s sustainability should be considered the foundation of every relationship, whether with customers, partners or suppliers. Consequently, these policies must be part of contracts, which should only be signed once all parties are fully aware of the clauses and conditions.
What does the term accountability actually mean?
It is a term that refers to ethical responsibility and the obligation of transparency. It requires members of an administrative or representative body to report to controlling authorities or those they represent.
In a broad sense, it also means that anyone performing a significant role in society—whether a company, public institution or regulatory agency—must regularly explain what they are doing, how they are doing it, why they are doing it, how much they are spending and what they plan to do next.
It may seem complex or bureaucratic, but these premises define whether a business partnership is even possible. To hire a supplier, for example, a company needs a guarantee that the provider complies with all legal obligations. The supplier must hold proper certifications, take responsibility for its actions and perform essential duties: paying employees correctly, paying taxes, and maintaining a governance policy that controls spending and analyzes financial health. It also includes environmental stewardship and the use of management best practices. These factors can—and must—be measured and verified.
In a diverse and interconnected world, companies cannot afford relationships with partners that fail to meet minimum legal requirements. When an error is made, even with preventive measures in place, everyone involved in the business is affected. These losses can damage a company’s image and, in extreme cases, lead to bankruptcy.
Therefore, these precautions are not just a legal shield; they are necessary for the reputation of any business. A company cannot remain healthy and solid if it does not practice careful and rigorous ethical management. News reports frequently show the financial toll a company takes when its reputation is hit. However, beyond the financial and legal implications, there is a fundamental ethical component.
Today, employees investigate companies before joining them. They analyze figures and values, understand policies, and check certifications and ratings. If a company’s culture does not align with the individual’s values, these workers simply look elsewhere. We live in a world where sense of purpose and organizational practices are often more important than salary or benefits.
Because of this, being transparent and communicating data to all stakeholders—from employees to clients, suppliers and partners—is essential for a company’s stability. Navigating difficult economic times is part of business risk, but remaining loyal to ethical values and commitments is vital for survival. Maintaining communication channels to mitigate risks and solve problems promotes the well-being of everyone involved.
The world is currently facing significant challenges regarding corruption at both national and international levels. Applying rules that ensure the correct functioning of a company has become a deciding factor in closing or refusing contracts. Indicators such as the Corruption Perceptions Index (CPI) are now taken into account when a multinational decides to invest in a specific country.
Companies must organize themselves as a productive chain so that this management model—committed to ethics and transparency—becomes the rule rather than the exception.
Only then will we rebuild the foundations of our economy for a solid, consistent and lasting recovery. Without transparency, ethics and clear rules, even the strongest businesses will fail.
About the Author
Alexander Villas Boas, a business leader with nearly 31 years of corporate experience, passionately advocates for accountability and transparency in business.
An avid writer on accountability, he frequently speaks at conferences and events on business ethics. Villas Boas is also committed to sustainability and innovation, advocating for profitable yet sustainable business practices that positively impact the environment and society.
Alexander Villas Boas holds a bachelor’s degree in Civil Engineering with postgraduate studies in Work Safety Engineering from Universidade Mackenzie. Additionally, he has earned MBAs in Financial Company Management and Business Specialization for Executives from Fundacao Getulio Vargas, showcasing his dedication to both technical expertise and strategic leadership.
