‘Business ethics replace price in clinching contracts’

Price is no longer the be all
and end all of business – it’s
being replaced by ethics,
says Ralf Petersen, chairman
of global logistics giant
Bertling.
Petersen told FTW during
a visit to South Africa
recently that companies
wanting to be successful and
globally competitive would
have to be able to comply
with a number of ethical
issues that in the past had not
always been as important as
price.
“Corporate governance,
financial stability, along
with good health and safety
regulations and addressing
environmental concerns, are
qualities that are making a
difference in our industry
and winning contracts for
companies. It is no longer
based on price and who has
the best rate or can offer the
cheapest service.”
He said Bertling had
recently won a major
international contract based
on these very qualities rather
than the price. “Yes, cost
and pricing will always be
essential in any business –
not just our industry – but
the focus has to a large
extent changed to counter
party risk.”
He said for this very
reason it was important for
companies to be compliant
with these ethical issues.