beyond ethical compliance: the challenge of building ethical … · 2 days ago · 2. governance...
Post on 02-Aug-2020
2 Views
Preview:
TRANSCRIPT
#BetterDirectors#WebinarWednesdays#BB@9
Beyond ethical compliance:
the challenge of building
ethical culture in organisations
#BetterDirectors#WebinarWednesdays#BB@9
Ethics
Good
Self Other
#BetterDirectors#WebinarWednesdays#BB@9
Organisational ethics
“In the context of organisations, ethics
refers to ethical values applied to
decision-making, conduct, and the
relationship between the organisation,
its stakeholders and the broader
society.”
Good
Self
Other
#BetterDirectors#WebinarWednesdays#BB@9
Governance of Ethics in Steinhoff
Corporate Governance Report, 2011:
“Steinhoff has not established a formal process for obtaining assurance on ethical awareness and ethical compliance throughout the group.”(Repeated in: 2012, 2013, 2014, 2015, 2016)
#BetterDirectors#WebinarWednesdays#BB@9
Ethical Culture in King IV
Strategy Policy Oversight Disclosure
Ethical
culture
Performance
Effective
control
Legitimacy
Governance Responsibilities
Outcomes
#BetterDirectors#WebinarWednesdays#BB@9
The Shift to Ethical Culture
Principle 1.3
The board should ensure that the
company’s ethics is managed
effectively.
Principle 2
The governing body should govern the
ethics of the organisation in a way that
supports the establishment of an
ethical culture.
KING III
#BetterDirectors#WebinarWednesdays#BB@9
What is culture?
• The social and unwritten rules with regard to how
people in groups interact; the collective habits.
• Shared patterns of thinking, responding, and
interpreting
• Culture is built incident by incident…
Source: Salz Review
#BetterDirectors#WebinarWednesdays#BB@9
Importance of Ethical Culture
Opening sentence:“Banks and banking rely on trust. And while trust takes years to establish, it can be lost in a moment through failures caused by problematic ethics, values and behaviors.”
#BetterDirectors#WebinarWednesdays#BB@9
Ethical Culture and Conduct
59%
23%
0%
20%
40%
60%
80%
100%
Yes
Have you observed unethical conduct in the last year?
Poor Culture (< 50% approval)
Good Culture (> 50% approval)
#BetterDirectors#WebinarWednesdays#BB@9
Ethical Culture and Conduct
44%
62%
0%
20%
40%
60%
80%
100%
Yes
Have you reported the unethical behaviour you observed?
Poor Culture (< 50% approval)
Good Culture (> 50% approval)
#BetterDirectors#WebinarWednesdays#BB@9
Two Types of Ethical Culture
Extrinsic motivation
Somebody is watching…
Preventing unethical behaviour
“Zero tolerance”
(fear-based)
Catching those
who do wrong
Intrinsic motivation
Nobody is watching…
Promoting ethical responsibility
“Doing the right thing”
(conviction-based)
Catching those
who do right
#BetterDirectors#WebinarWednesdays#BB@9
Problem of extrinsic motivation(and fear-based compliance)
Source: Salz Review
• Extrinsic motivation dulls creativity, narrows focus
and slows down problem solving
• Fear-driven compliant behaviour undermines doing
the right thing
#BetterDirectors#WebinarWednesdays#BB@9
1. Leadership commitment
i. Ethics risk assessment
2. Governance structures
ii. Ethics strategy
iii. Code and policiesiv. Institutionalisation
v. Monitoring & reporting3.
Ethics management
Cultivating Ethical Culture in Organisations
4. Independent assessment and external reporting
#BetterDirectors#WebinarWednesdays#BB@9
Assessing Ethical Culture Maturity
1. Ethics accountability and responsibility
2. Top leadership commitment to ethics
3. Middle management commitment to ethics
4. Awareness of ethical standards
5. Ethical treatment of staff and stakeholders
6. Employee commitment to ethics
7. Ethics talk
Source: TEI Ethical Culture Maturity Indicator
#BetterDirectors#WebinarWednesdays#BB@9
Useful Resource
www.tei.org.za
#BetterDirectors#WebinarWednesdays#BB@9
Q&A Session
#BetterDirectors#WebinarWednesdays#BB@9
Thank you for joining us for today's webinar.Contact Deon Rossouw via LinkedIn
Please complete the IoDSA Event Satisfaction Survey at the end of this webinar or from the QR code here:
top related