The recent financial scandals in Bangladesh have occurred due to the absence of ethical business practices and exemplary sentencing of the culprits, said Latifur Rahman, chairman and chief executive officer of Transcom Group.
Rahman, who received the Business for Peace Award 2012, said financial scams could be avoided if the government addresses the issue strictly.
"Scandals happen not just in Bangladesh but everywhere in the world, and will happen in future as well. We have to address them, otherwise it will negatively impact the economy," said Rahman.
Rahman spoke at a 'master class' on business ethics at BRAC University, organised by BRAC Business School yesterday.
He said ethics and business are not contradictory, and those who want to build sustainable business will have to pursue ethics as it is a "necessity and not a choice".
Rahman said: "Ethics is treating others the way you treat yourself."
"For example, If I can give my products to our grandchildren without any hesitation, it would be an ethically responsible business."
Bangladeshi companies should act more responsibly towards the society and adopt ethical business practices for longer term benefits and mental satisfaction, said Dr Akbar Ali Khan, a former caretaker government adviser and also a prominent economist.
"Ethics is a marketable product. A company can increase its brand loyalty to customers if it strictly pursues business ethics," said Khan.
He said socially responsible companies can grab better financing terms and talents, which will create more revenues and profits.
"Companies have to change their mindsets. It would create a win-win business and make everybody happy," said Khan.