A Professor of Strategic Management at the University of Lagos (UNILAG), Abdul-Hameed Sulaimon, has urged tertiary institutions to deepen their commitment to corporate social responsibility, ethical conduct, and sound corporate governance, warning that neglecting these principles poses serious risks to sustainable development and public trust.

Sulaimon made the call while delivering the 451st inaugural lecture of the institution, titled “Good ethical conduct, corporate social responsibility (CSR) and corporate governance compliance: Whose interest?”

He said weak capacity for CSR, poor ethical standards, and lack of accountability were detrimental to businesses, communities, and the environment.

The don stressed that CSR, ethical conduct, and corporate governance were not competing ideals, but interconnected pillars that determine whether organisations succeed or fail in the long run.

“Genuine progress, economic, social, and institutional, depends on ethical compliance that transcends mere legal obedience, aligning morality, transparency, and accountability with organisational purpose.

“Lack of adequate CSR skills, which may be occasioned by incompetence, fraudulence, and lack of responsibility, among others, are detrimental to businesses,” Sulaimon stated.

He emphasised that organisations must go beyond mere legal compliance to embrace transparency, morality, and accountability.

Sulaimon noted that organisations that prioritise ethics and good governance were better positioned to attract investor confidence, reduce operational risks, and protect their reputations.

“The principles of corporate ethics and governance directly influence a company’s financial success. Investors are more inclined to trust firms exhibiting sound governance and ethical principles. This optimism leads to an increase in stock prices, a decrease in capital expenditures, and an enhancement in liquidity,” he said.

He emphasised that unethical conduct not only erodes trust, but also undermines national development, while sound governance and CSR strengthen competitiveness, attract investment, and promote societal welfare.

Sulaimon added that employees benefit from ethical practices through fair treatment, safe working conditions, and opportunities for professional growth, noting that a strong ethical culture improves productivity, boosts morale, and reduces misconduct in the workplace.

He charged universities and public institutions to lead by example by embedding ethics, CSR, and governance principles into policy formulation, teaching, and daily operations.