University of Western Australia
With thanks to the generosity of The Stan Perron Charitable Foundation, UWA has welcomed a new academic Chair in the burgeoning field of business ethics. Professor Mayowa Babalola joins UWA with a passion for cultivating a new generation of ethically informed leaders and creating a community where ethical considerations are ingrained in the fabric of organisational and societal lives.
First things first: what is ‘business ethics’?
Business ethics encompasses the moral principles and standards that guide behaviour in the world of business. It's about doing the right thing even when it is not the easiest path, ensuring that businesses' actions benefit stakeholders and the broader society.
The creation of my role at UWA was made possible by the generous support of The Stan Perron Charitable Foundation, honouring Founder Stan Perron AC, who was renowned for his unwavering commitment to ethical business practices. My position will spearhead further academic exploration and practical guidance in business ethics in Australia. It underscores the growing recognition of ethical business conduct as a cornerstone of sustainable success. It also reflects UWA's commitment to producing graduates who not only excel in business but also in integrity, high ethical standards, and remarkable social responsibility.
What drew you to this area?
Having taught and worked with business leaders in different parts of the world, including Africa, Asia, Europe, The Middle East, and here in Australia, what I enjoy most is the opportunity to influence and support future and current business leaders by integrating ethical considerations into their decision-making processes. It's gratifying to see theory and practice converge, resulting in tangible improvements in organisational ethics.
Image: Professor Mayowa Babalola, Stan Perron Chair in Business Ethics.
Business ethics represents the convergence of my interests in human behaviour, organisational effectiveness, and societal well-being. I have witnessed the lives of individuals and their families ruined by self-serving leaders and ‘wicked’ organizations. So, in a world where business decisions have far-reaching consequences, promoting ethical behaviour ensures a fair, transparent, and accountable corporate landscape.
My aim is to establish UWA as a beacon of ethical leadership underpinned by research and education that resonates globally.
Why is business ethics important?
According to a 2020 report by Deloitte, the economic benefit to Australia of improving ethical behaviour to world-leading standards was estimated at a $45 billion increase in GDP. This suggests that we can achieve and be more as a society if we improve ethical behaviour. Yet, reports of ethical scandals in many companies continue to hit the news. Fortunately, ‘conscious capitalism’ is growing, increasing pressure on businesses to be more ethical and reinforcing that profitability and responsibility are not mutually exclusive but can be synergistic.
To achieve greater heights in Australia and the rest of the world, we all need to work together to improve ethics. For example, the rise in digitalization and the advent of AI offer new opportunities, yet pose unique ethical challenges – from privacy breaches to trust issues and decision-making biases. The challenge lies in developing AI that upholds ethical standards while mitigating risks like job displacement and the overreliance of humans on AI. With the proper mechanisms, AI could enhance decision-making processes, transparency, and efficiency, ultimately leading to more equitable outcomes and fostering innovation that aligns with societal values.
Ultimately, business ethics is not just about preventing unethical practices; it’s about championing a culture where doing the right thing is the norm. With this kind of culture, everything will run smoothly in our community.
Read the full issue of the Winter 2024 edition of Uniview [Accessible PDF 12MB]