The "G" Pillar of Ethics & Compliance. Someone Always Pays the Costs.

I have been led by some exceptional men and women. They encouraged and challenged me and, at critical moments, drew clear lines in the sand. None more important than when it came to ethics and integrity.

Working in the natural resources sector across Africa, I found myself in situations where the expectation, sometimes explicit and sometimes implied, was that "something" would need to be given to move a deal forward.

At one such moment, over 20 years ago, during a business dinner where I was dealing with a particularly “friendly” government official, the CEO I worked for at the time turned to me and said quietly:

 “Rosalind, never ever feel that you or we need to cross the line to get what we need .”

It didn’t make things easier for our business, but it made the line clear and clarity matters.

So when I have conversations about the “G” of ESG and am challenged with, 

“How can we operate with integrity when the system works against us? You have no idea what it is like”, my answer is simple. 

I do know. 

I have walked away from roles when there was no line in the sand. At a personal cost.

I have also stayed behind the line, both when I worked for others and as a business owner, through prolonged, contentious negotiations, lost opportunities and real commercial consequences. 

But those choices also drove creativity and innovation. They pushed us to find ways to create value without relying on personal gain or compromising on decisions. To come up with solutions that worked for the benefit of the business and for the communities or countries we were operating in. 

Why? Because I have repeatedly seen that although the consequences of unethical decisions may ultimately be borne by those who make them, they are always borne by the most vulnerable in society. 

What do we mean by the “G”?

The “G” in ESG is often the least well understood. Governance is the “how” of running a business. It is how decisions are made, how the company is guided and how performance is evaluated.

In the House of Responsible Business, I split the “G” into two parts. 

• The “G” Pillar of Ethics & Compliance: how a business behaves, and

• The “G” Foundation of Governance Structures: the systems and controls that hold that behaviour in place.

This article focuses on the pillar. African businesses find it the hardest to navigate in practice. Not because the leaders don’t care about integrity. Most do. But operating ethically in environments where corruption is systemic, regulation is unevenly enforced, and the line between culture and corruption is genuinely blurred is one of the most demanding leadership challenges. Anyone who says otherwise has not done it.

Ethics isn’t just about compliance with laws. It is also about the values and behaviours that guide decisions, even when the law does not provide clear direction: acting with integrity, fairness and respect in all business dealings. 

This includes anti-money laundering, anti-bribery and corruption, tax transparency and timely filings, data protection and cybersecurity, product safety and quality standards, and code of ethics or conduct.

The real test of ethics is not what is written in policies or as processes. It is what happens when a decision has to be made. When the rubber hits the road.

When ethics is not straightforward.

For many African businesses, the challenge is real. Processes can be slow. Decisions are not always made on merit. Relationships can matter more than capability. For SMEs, the cost of “doing the right thing” can be disproportionately high.

There is another layer that is often overlooked. 

In many African contexts, business does not sit apart from society. It is deeply embedded within it.

African business leaders carry expectations that go far beyond running an operation. They are providers, problem-solvers, counsellors and community leaders beyond the gates of their business. Employees turn to them not only for work-related decisions but also for guidance on personal and family challenges. A sick child, an emergency loan, a family dispute.

There are expectations to support extended family, contribute to community needs, and participate in cultural norms, including gift-giving and hospitality. In the absence of strong social welfare safety nets, these are not optional. They are how society functions.

It is one of our greatest strengths, and I have no interest in a form of integrity that strips out our humanity. But acknowledging this reality does not remove the need for boundaries.

Where the line sits.

Consider this scenario. 

A civil servant processes your licence application professionally and without asking for anything in return. You learn that his wife is chronically ill and he is struggling to keep up with the medical bills. You want to help. What do you do?

This is not a hypothetical situation; it plays out across the continent every day.

Here is how I think about it.

There is a difference between generosity and inducement; between supporting someone in need and distorting a process or bypassing controls. A gift that expresses respect or gratitude is not the same as a payment that influences a decision. 

Generosity says, “I appreciate your integrity, and I want to support your family because that is what we do for one another”. 

Inducement says, “Here is something to ensure I continue to get what I want”.

I know that line may not always be easy to see in the moment. Timing, intent and perception matter. The challenge is in navigating these dynamics intentionally and transparently. Because when the lines blur, the consequences extend beyond the immediate transaction. 

What unethical behaviour really costs.

Let’s take one example of unethical behaviour. Corruption. Defined as “the abuse of entrusted power for private gain”. 

Here are three real consequences of decisions that, at the time, may have seemed harmless.

1. When bribes are paid to pass substandard construction work, buildings fail and families are destroyed. Like the six-story building in Kenya that collapsed, killing 51 people. Agnes Kavere, who survived with her children, lost her husband that day.

2. When regulators are paid to look the other way, patients receive counterfeit drugs or substandard equipment is used in their care. In Sierra Leone, millions in Ebola relief vanished, leaving workers without gloves or supplies. Alhassan Kemokai’s mother, a hospital worker, died needlessly.

3. When education funds are diverted, children are left in overcrowded classrooms with “no teachers, no motivation, and classrooms lacking basic supplies like chalk”, says Mohammed Sabo Keane of Almajiri Child Rights Initiative. The result. Futures are quietly closed before they begin.

Unethical behaviour is not a victimless act or simply “the way business is done”. It is a direct threat to people, markets, and the long-term viability of businesses themselves. 

Why this matters commercially.

This is not just a moral argument. It is a business one. Unethical practices distort competition, inflate costs and create dependencies on individuals rather than systems.

For businesses, ethics and compliance are not just about avoiding wrongdoing. They are about how decisions are made when it matters.

• When a contract is at risk.

• When a deadline is tight.

• When saying “no” may mean losing the deal.

Corporate customers and business funders are increasingly required to demonstrate that the businesses they work with operate with integrity, manage risk effectively, and can be relied on over time. For African SMEs looking to scale or for financing, this creates pressure but also opportunity. Businesses known to be ethical are easier to trust, work with, and invest in.

What I have seen work in practice

There is no single playbook for operating with integrity in complex environments. The Nike slogan “Just do it!” doesn’t always land well here.

But here are examples of what I have seen work in practice and which are echoed in the practical insights of Chapter 5 of @Alison Taylor’s book, Higher Ground:

• Be clear, internally and externally, about where the company stands on ethical behaviour. The line in the sand.

• Be consistent. One exception becomes precedent, like a breach in a dam wall.

• As much as is possible, avoid situations where a single individual or relationship controls outcomes. Sow seeds of relationships strategically but as broadly as possible.

• Compete on quality, reliability and consistent delivery. You may not always win, but you will have a reputation for excellence and reduce your exposure to corrupt dynamics.

• Support your frontline staff. As my CEO did for me 20 years ago, give affirmation, guidance, backing and protection, not just instruction.

• Factor in time and patience in planning. Tight timelines lead to desperation, which weakens your negotiating position.

• Join forces with like‑minded leaders to take collective action. This is especially important for smaller companies. There is strength in numbers. Think of the anti‑apartheid movement: unions and churches inside South Africa, students in the townships, and international allies running boycotts and sanctions campaigns. No single organisation could change the system alone, but their combined pressure made it impossible to ignore.

Warning! None of this is easy. There will be times when doing the right thing costs you time, revenue and opportunity. But the alternative is not cost-free. It is simply a different kind of cost. A cost that is often delayed or hidden and could be a greater personal cost to you as a business leader.

A final thought

The system may not always reward ethical behaviour in the short term. But that is not a reason not to take a stand.

I can vouch that, as tough as it is, and despite the losses and battle scars along the way, it is worth it! The prize may not be as large as you expected, but it is sustainable.

Unethical behaviour is never neutral. Someone always pays the cost.