Ethicability for Organisations Today and into the Future

ethicability®

The Leadership and Organisational Challenge

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What’s the context?

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“...society expects its bankers and financiers to behave ethically and to behave with integrity;

society expects institutions to have the ‘right’ culture to facilitate ‘good decision-making’; and

society also should know that regulatory rules, even when combined with effective supervision, are not sufficient to ensure the probability that future failures are minimised.”

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What is ethics?

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You go to an ATM and it gives you £200 instead of the £100 you keyed in.

Q1. What do most people do in this situation? Q2. Which answer do you think would score highest marks in an integrity test and why?

a. Keep the money because it’s the bank’s faultb. Return the money because it’s theft if I keep itc. Return the money because it belongs to other peopled. Return the money because I believe in honesty

You have 3 mins to discuss these questions

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a. Ethic of Ego - what’s right is what’s best for me, me, me...- internal driver of behaviour

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b. Ethic of Obedience- what’s right is following orders- consequences are reward or punishment- external driver of behaviour

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c. Ethic of Care- what’s right is what’s best for all of us- moral values of humility, love and fairness- interactive driver of behaviour (relationships)- builds community integrity

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d. Ethic of Reason- what’s right is what I/we judge is right- moral values of wisdom, self-control- character and judgement- personal integrity- internal driver of behaviour

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Where’s the evidence?

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What is ethics?

• We obey the rules*

• We care about each other

• We act with reason

* If there is consultation and consent

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ethicability®

How to decide what’s right and find the courage to do it

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Doing the right thing

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How do we decide what’s RIGHT

• We obey the Rules

• We consider the facts and make rational decisions with personal Integrity values

• We consider our feelings for others and make social decisions with collective integrity values, to maximise Good and minimise Harm

• We test our decision for Truth

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In order to meet our budget, we need to reduce our payroll costs by 15%. You have two options to consider:

1. Reduce headcount by 20% (includes re-structuring costs)2. Agree a collective reduction in salaries of 14% (includes NI savings)

What would be the RIGHT thing to do and why?

You have 5 minutes to discuss and decide using this framework:

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The Organisational Challenge

• Why does your business exist?

• Is it a human community of belonging?

• How do you achieve and sustain your economic purpose?

• What’s the role of values, behaviours, leadership and culture in meeting these challenges?

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1. I ask how he will know when he has succeeded as CEO. He has two measures, he says: “How the stock market values this firm has to be a huge part of it,” he says. “And also the extent to which we are seen as a moral and decent firm.

2. Gulliver has polled 280 of the top executives and learned that almost all identified bureaucracy as HSBC’s biggest problem. “The point is to undo the bureaucracy without losing control,” he says. He will encourage a corporate culture of what he calls “courageous integrity”.

Questions?

For further info:www.ethicability.org

Buy the book at:www.amazon.co.uk

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