‘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.