Being ethical is a winner for business

Businesses should ensure they push ahead with management and leadership development in areas such as the environment, it has been claimed.

According to David Smith, chief executive at Global Futures and Foresight, firms should set concrete goals in terms of social and ethical management so that they become more attractive to both potential customers and investors.

Speaking at the Lloyd's 360 live debate on Managing Risk in the 21st Century, Mr Smith said that the time has come for businesses to differentiate themselves from the competition by exploring sustainable development opportunities.

He added that as well as attracting new suppliers, lenders, investors and talent, focusing on sustainable management skills can also "reduce cost and waste in operations".

Meanwhile, chancellor Alistair Darling has said that following the recession reckless risk management in Britain's financial institutions will not be tolerated.

Speaking at the Labour Party Conference in Brighton last week, Mr Darling said senior managers would not automatically receive bonuses every year and payouts would be gauged on long-term success and sustainability, not short-term gains.