The Link Between Ethics and Culture
By Daniel Robin
In a prior article, we viewed integrity as a call to push back on the cultural epidemic of obsessive speed, greed, and creed – that is, how our quest for prosperity and “market advantage” can reinforce assumptions and beliefs that justify cheating, mistreating and defeating the other guy.
There’s nothing wrong with a competitive spirit – indeed, it is the cornerstone of our free enterprise system: the best providers of products and services win. But how we attempt to “win” says much about our character and culture.
Accounting Scandals and America’s Wake-up Call
Management in many larger corporations may have a sharp learning curve, as ethical conduct has become a topic of worldwide attention. Never before have our choices been so scrutinized – as if we Americans are being asked to locate an international moral compass, act in accordance with it, and then hold it up for others, saying “see, we did it right.”
You know you’re on the right track ethically when you don’t have to constantly explain or justify your behavior. “Well, I did it that way because … everyone else was doing it … and it seemed like a good idea at the time…”. Fortunately, new laws and standards are making it harder to hide ethical lapses in accounting and fiscal reporting.
Situational Ethics
When others act unethically, what’s an appropriate response? You calmly call them on it. How? You first check to see if they are aware of their own behavior. You gently challenge their assumptions – are the limits that led to the choice or action real or imagined? Are there other, better options to consider in the future? Indeed, if ethical guidance is your goal, every-day situations can be a source of learning and development.
How about more complex ethical challenges, like acknowledging conflicts of interest or choosing to admit (rather than cover up) a mistake? If we’re talking about someone else’s behavior, good luck. Tremendous tact and diplomacy skill will be needed to avoid getting a defensive reaction. You might want to focus on your own ethical conduct and be the moral compass that you can offer for others to follow.
How about even more heinous ethical lapses, such as deliberate misrepresentation, questionable record-keeping, or blatant misuse of power? These tend to set off strong, emotional triggers in many of us. If your goal is to correct the behavior, anger and outrage won’t solve anything – it just drives the real problem underground. Action fueled by such emotional reaction isn’t perceived as righting a wrong, or about counteracting an injustice; it is about retaliation and punishment. Perhaps the better response is hand the situation to an ethics committee or an office charged with resolving such transgressions.
An Ethical Culture
By ‘ethical’ I mean not only the quality of your actions and decisions – how well your values are connected to your daily choices – but also the broader question of whether or not choices are integrated with what you know. This applies to individuals as well as the organization. If a person or group has broken a policy or acted unethically in a culture where the policy is not clearly articulated, or where the entire question of ethical and principle-centered conduct seems like a foreign country, then isn’t this as much a lapse in leadership as it is an act of malfeasance?
If actions are morally corrupt but not “against the (de facto company) law,” perhaps it would be wise to establish a policy, cultural norm or other guideline that would make such acts clearly not okay, and “punishable” through formal, impersonal channels. In other words, don’t even attempt to “fix” someone’s behavior when it is the system that needs attention. If you personalize it, your ability to work cooperatively could go down the tubes.
Police Me, I Dare You!
But policies and legal authority are simply not enough. Navigating decisions on the ethical use of power, “fair” practices in recruitment, hiring and firing, benefits, and many other social justice issues remains a challenge. No laws can adequately address how companies should manage choice of suppliers, environmental concerns such as resource consumption, waste minimization and climate protection … this demands leadership.
The financial crisis of 2007 that almost brought down the world economy was a race to the bottom of ethics, inspired by greed, and regulated by no one. This lesson was learned at a price none of us will soon forget, but political economies have a short memory, with selfishness in vogue like never before. Fortunately there is a reaction to this self-interested capitalism, called “impact investing” and the impact economy is alive and well.
For more on this topic, or to contribute the next article in this series, contact blogger-in-chief, Daniel Robin. Thanks for reading!
