Leadership & organisational values
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Changing Leadership roles in Business
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Leadership & organisational values
- 1. Challenges of Leadership In A Low trust world Dr Attracta Lagan ©Managing Values 2011
- 2. Know your time • In interconnected world anything you do in private can find its way into the public domain • What you do impacts on your company as well as your personal reputation • People listen with their eyes and take their lead from what gets rewarded • It can no longer be assumed that people know the right thing to do • If you go along to get along you can slip over the line • You need to identify your line in the sand as different situations will challenge how you behave • When making decisions at work the organisation’s values protect integrity ©Managing Values 2011
- 3. 21 Century Social Backdrop 1.Low trust world where leaders of all institutions distrusted & ethics risen up the business agenda 2.Emergence of a global culture based on consumerism 3.Supranational corporations dwarfing governments & only true global citizens 4.Civil society backlash to global marketplace impacts on domestic economies 5.Rise of NGO (civil society pressures groups) & networked global activism to voice protest & demand new accountabilities
- 4. 21 Century Social Backdrop 1.Low trust world where leaders of all institutions distrusted & ethics risen up the business agenda 2.Emergence of a global culture based on consumerism 3.Supranational corporations dwarfing governments & only true global citizens 4.Civil society backlash to global marketplace impacts on domestic economies 5.Rise of NGO (civil society pressures groups) & networked global activism to voice protest & demand new accountabilities
- 5. Finger on the cultural pulse? Leaders set the standard of truth and behaviour for every employee they lead Values led leaders serve the organisation and not themselves Good people will behave in inappropiate ways People want to belong to an organisation that listens I know the range of values based challenges Agree or Disagree our people face at work Employee confidence in the purpose of the organisation creates a sense of common mission which lifts standards ever higher. Most employees in my organisation experience it as a fair place to work I begin from a premise that my organisation is judged by how every employees behaves 5
- 6. Changing Social Expectations & Alignment of expectations The Individual Values Match Sense of Meaning The Society Organisation Balancing Private Sustainability interest, Public good RISE OF THE CIVIL ECONOMY
- 7. The World is Changing Risk Imperative Societal Ethical Imperative Imperative Failure Corporate Globalisation & Global Low Trust Society – leaders no Governance Commons longer trusted Rise of NGOs as “Social Social/Economic Increasing societal despair teen Vigilance” suicide, adult depression Polarisation Activism Ethical Internet/Global Information- Secularisation Society Consumers & Investors based Economy Sustainability Agenda Need for New Organisational Competencies ) Increasing Calls For • Return to core values Institutional leadership accountabilities social footprint on society • Quality of life focus vs. standard of living 10/03/12 © 2002 KPMG • Demonstration of ethical practices
- 8. Business Ethics @ Work how good people find themselves doing unethical things What is right in the corporation is not what is right in a man’s home or in his church. What is right in the corporation is what the guy above you wants from you. That’s what morality is in the corporation ©Managing Values 2011 Robert Jackall, Moral Mazes
- 9. Business Ethics vs. Individual Morality Ethics is examining moral Who standards of a person or a decides society to decide whether these standards are what’s reasonable / unreasonable, ethical? Morality refers to and to apply them to how individuals contexts and issues make judgments about right & wrong ©Managing Values 2011
- 10. Society decides what’s ethical l ate Socia ity )C orpor ta inabil (CSR ility Sus onsib Resp ms .. o syste teg rity - d o nal in s? Instituti ed value ues rt stat rstand val suppo unde ly op le nt o app Do pe s and whe /code them? tected ? pro n good c o mmo Is the ©Managing Values 2011
- 11. What does unethical business behaviour look like? Behaviours that are not necessarily illegal but generally considered unethical include: Withholding information, cone of silence, distortion of facts Racisim,Sexisim,Bullying and exploitation other humans Unmanaged conflicts of interests; self interest priority Anything liable to endanger common good Lack of compassion and humanity So, the law alone is not a basis for ethical decision- making ©Managing Values 2011
- 12. Ethical challenges at work 2009 & 2010 workplace research • Rise of amoral generation of managers • Codes of Ethics frighten rather than inspire • Employees experience disconnect between values and organisational culture • 1 in 4 silent when they see unethical behaviour • 1 in 5 professionals feel compromised at work • Senior mangers most likely to have encountered ethical issues in the last 12 months • Employees report unethical acts to their managers not hotlines; managers unskilled to respond • The younger the employee the more likely they say their organisations behave unethically ©Managing Values 2011
- 13. Bad Apples, Bad Barrell? Organisational level Personal level Lack ethical leadership Group Commitment do as I say, not as I do styles Disengagement Unprofessional & Self interest Amoral managers Ignorance Diffusion responsibility Poor interpersonal skills Competing Values Lack of consequences Pressure to conform Sense of entitlement Compliance Priority Disengagement Blame cultures emerge ©Managing Values 2011
- 14. How we rationalise behaving unethically I can get away with it I can be a different person at work I’m only doing what I’m told The end justifies the means If it’s not illegal, it’s OK Others gaming the system too It’s not my problem It’s pressure of work - not me ©Managing Values 2011
- 15. Context & The Agentic Shift • Milgram’s research suggests individuals abdicate personal decision making & come to see themselves as agents of the company way of doing things • Zimbardo Stamford experiment suggests situational factors are more influential than personal values or rationality. Both guards & prisoners behaved in ways consistent with the context but strongly inconsistent with their usual dispositions • Social psychology teaches us that many people are likely to commit seriously unethical acts in contexts that share powerful & distinctive features as typically takes place in large workplaces including Depersonalization; De-individualisation Cultural/group dynamics Disengagement ©Managing Values 2011
- 16. Business Ethics @ Work how good people find themselves doing unethical things Entangled hands Personal gain pursued at Many Hands expense what’s good for the Organizational organisation fiefdoms – Conflicted Hands Misuse time, information, counterproductive One stakeholder group funds, authority competition gets priority over others Either or mentality ©Managing Values 2011
- 17. Why is ethics so difficult? Ethics involves learning what is right or wrong and then doing the right thing even when the ‘right thing’ may not be popular ©Managing Values 2011
- 18. The worst of times? Intentionally amoral managers: – Success priority value – End justifies means – Law obstacle to go around – Business & ethics exist in separate spheres – Sense of entitlement Unintentionally amoral managers: – Well-intentioned, but morally casual or unaware – Business seen as ethically neutral - don’t canvass the ethical dimension of decision making/actions (safety, equity, justice) – Expediency driven ©Managing Values 2011
- 19. Time Dimension Individual Perception Stakeholder Dimension Context Dimension ©Managing Values 2011
- 20. Defining moment are critical Our sense of who we are, (or who we want to be) & what we do are interlinked. We need to be able to answer the question: 1. Are we defined by our actions? Or 2. Is it because of who we are that we do or don’t do certain things? ©Managing Values 2011
- 21. Co-designing the future How are you doing? I recognise that what I do at work impacts others and my choice is between impacting positively or negatively I am aware that my workplace habits are shaping the person I become I know my line in the sand and how to defend it I know how to raise issues of concern safely I know the ethical challenges my people might face at work I seek feedback to ensure I role model our values I know the organisation is better because I am in it ©Managing Values 2011
- 22. Courage is part of the new story Do well and Do Good Jeff Swartz CEO Timberland Create a better everyday life for the many people Ikea Do no evil Google Founders We’ve found a new way to win in the marketplace…one that doesn’t come at the expense of our grandchildren or the earth but at the expense of the inefficient competitor INTERFACE CEO Inspire and implement solutions to the environmental crisis Patagonia To bring inspiration and innovation to every athlete in the world Nike Bringing the best to everyone we touch Ester Lauder To give people the power to share and make the world more open and connected Facebook To experience the joy of advancing and applying technology for the benefit of the public Sony ©Managing Values 2011
Editor's Notes
- We have seen through the GFC how greed destroys wealth and trust. It is ethics, integrity that fosters prosperity. Ethical courage includes an appreciation of personal integrity &accountability to others; not just one’s immediate work and its pressures; it means helping organisations deliver on their social purpose as well as financial. New vision - a restorative economy and a healing Century - eliminate waste & create value. Ethical business pays attention to all its impacts and not just immediate marketplace pressures If we can change the conscience of the average professional executive we change the conscience of the company. If enough companies working for greater good succeed, others will follow and good business and good ethics reunited. The message can be summarized in a few statements, known as the "Three Recognitions of Chaos Theory in The Practice of Management:" The First, is to Recognize that everything that you do is under serious scrutiny; The Second ...Recognize that you are the employees' friend only so long as they want you to be -- any untoward message or action can change the category from "friend" to "enemy," irreversibly; and The Third ...Recognize, therefore, that all actions, no matter how small or seemingly inconsequential, must be self-monitored on a regular, consistent, and on-going basis, for their content and continuous appropriateness, and, even more importantly, for the reactions that they might incur. By not "sweating" the small stuff, one is led, inexorably, into chaotic events, because one's management belief structure has been formed to consider "small matters" as inconsequential, insignificant and beneath one's notice. Nothing could be further from the truth!
- New generation have ethical ambition and want to work for organisations meet their values and have a sense of purpose beyond profit
- Jackall research shows the problem of embeddedness – people get embedded in their jobs and position in the company and have trouble seeing beyond the pressures they face. They develop a kind of blindness, a loss of moral vision. Ethics requires looking beyond department needs; targets, bottom line etc. There is an unavoidable shift from ultimate purposes to internal goals and danger is these goals can eclipse the overall purpose of the business altogether. Everything we do in business is indeed personal to someone as GFC shows. The new “good” is as much about serving the common good as anything else. .
- TOXIC ENVIRONMENT GSOURCE AIM SJEC KPMG Picture today organ’s priority focus to strategy at expense of those who implement it because people focus more challenging. Those that meet the challenge profit & research has consistently found a direct link between employee engagement & performance
- Much corruption & unethical behaviour emerges in organs where there has been a failure to set the ethical tone at the top – A failure to invite employees to step up to a clear ethical accountability for their impact on others t its extreme in this sort of ethical vacuum an incremental descent into unethical and corrupt behaviour emerges over time Do as I say not as I do becomes the cultural imperative set from top This then cascades down to every level as people take their cues from those above them eg. Politicians' model expediency Organ leaders cling to hierarchical & autocratic power & a sense of egoism & entitlement breeds resulting in a lack of respect for followers so instead of inspiration top breeds resentment Managers manage up and not down and bully people – 51% Australians say managers incompetent! People not consulted so don’t step up to accountability Go along to get along cultural imperative at bottom! & slide over the line Blame culture emerges where compliance orientation breeds a risk adverse culture; organ members become afraid to raise issues; be innovative ; don’t want to get into trouble so turn a blind eye to inappropriate behaviour and slide over the line We are not the same individuals in the workplace as we are outside it. There are particular pressures at play that result in people behaving differently at work than they would outside the workplace – see list.
- On the job, workers face decisions that have implications for their job security, their salaries, and the success of their employing organizations--decisions that bring pressures for them to protect their own interests, sometimes at the risk of losing their personal and corporate integrity. Conflicts are bound to arise when an organization has people who are diverse in nationality, age, education, race, religion, sex, socioeconomic status and employment experience Leadership & role modelling The picture is complicated, and has been recently documented via the Harvard Graduate School of Education's GoodWork Project. The study looked at on-the-job moral dilemmas faced by a hundred professionals between the ages of fifteen and thirty-five in three professions: journalism, science, and acting. Lack of "deep" mentoring. Many young professionals identified a lack of support from—and even competition with—authority figures, including supervisors, teachers, academic advisors, and directors.
- By not "sweating" the small stuff, one is led, inexorably, into chaotic events, Crises may be unavoidable, but disaster is not. The culture of the company takes precedence over the individual's "ethical map" and judges the individual on compliance rather than outcome
- People pose both the greatest risks and the greatest rewards for organizations. Especially during uncertain times, an organization must develop the knowledge, capabilities, and motivation of its people to align them with the organizational objectives of effective governance and risk management. Crises may be unavoidable, but disaster is not.
- There is a close connection between identity and ethics. Virtues are character traits