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Tuesday 4 January 2011

2011: A Year of Integrity?

I call for this year to be the year in which little by little, person-by-person, we rebuild integrity in our society, communities and businesses. We need to put the wheel back on the wagon.

This is an idea gaining traction. In the Jan-Feb issue of the Harvard Business Review,  strategy gurus Michael Porter and Mark Kramer argue for the reinvention of capitalism through the creation of shared value (CSV) between business and society. They criticize business leaders for conceiving of value creation narrowly and ignoring broader societal factors that govern their long term success.

As soon as one talks of "value" in the broader sense, they raise the question of our ethical decision-making and how we decide what is one value in preference to another. Porter and Kramer take business beyond the right/wrong polarity of compliance to laws and best practices, and they move into the qualitative area of good/bad:A broader and more complex understanding of ethics is needed.

This is timely, as the Edelman survey of Global Trust in Business presented at Davos (FT, 25.2.11), shows a steep decline in trust in business in the US, (to just 46% saying they trust business); and a marginal improvement of 2% globally, (to just 56%). This conceals a sharp drop in trust of banks in western countries.

This loss of trust matters a great deal. It influences the ability of business to shape the global agenda and at the micro level, will mean businesses (and especially banks) will have to work harder to gain the trust of existing and potential customers.

I'm convinced that at the heart of this issue is ethics. But this is not just a subject for law professors;. Nor can we just leave it to "them", then politicians and corporate leaders. It involves us all to be more conscious of our own values and ethical framework, and to act on those values in the face of increasing complexity and uncertainty. 

In June 2010, I wondered around a fascinating exhibition at the Science Musuem in Singapore. It was about the ethical dilemmas in science and medicine. The exhibits showed that there is often no right answer to ethical dilemmas. I reflected that we act with integrity when we consider the different ethical choices and make a conscious decision which we can account for. As US Supreme Court Judge, Potter Stewart describes so well, ethics is about that space that exists between our rights  and obligations.

Integrity therefore means more than keeping to the law, or complying with lists of codes, standards and professional rules. Yes, these are usually important. But rarely do such codes or rule books help us decide what is the right thing to do right now, in this moment.  The Lehman collapse, the Gulf oil spill, and the Iraq  imbroglio did not happen because we lacked the necessary laws or codes - they happened because there was a failure of ethical leadership. 

Put simply, political, institutional and corporate leaders in recent years too often promised more than they could deliver and did not fully consider the wider ethical consequences of their actions.They acted on impulse and in arrogance, not through conscious thoughtful choices.

Philosopher Simon Blackburn describes the need for us to take care of our "ethical environment". This means being aware of all the promises and commitments we make. It means considering the ethical basis of our actions. It means confronting truths.  It means taking ownership for what we do.

Most of us think of ourselves as ethical. Perhaps we work as a professional in some field and have the necessary qualifications and credentials. Perhaps we have a history of doing good work with our clients and we treat people with whom we work well.

Yet, this backward looking view and hubris can make us fall prey to the arrogance that can take over all professionals at some time or other. This is the point when we start listening to  our own ego too much  rather than to others:  Others who may have vital perspectives we need to make good and sounds decisions.

One thing I am working on as a coach is to be less proud of myself as an ethical and professional coach, and be more inquiring and reflective with clients and sponsors about "what is the right thing to do here?" I am learning all sorts of new "stuff" in the process. 

To be ethical therefore we need to be constant state of awareness and learning in relationship with other people (Griffin, D. 2002).

The three ethical perspectives I've found most helpful to guide me are as follows:
  • The Utilitarian: What is my underlying purpose or utility in this action to myself, others or society in general?
  • The Existential: What are the stark realities and painful truths of the matter, on which I need to decide?
  • Deontological: What is my duty in this situation? (NB, Not necessarily to just "follow the rules")
There are many philosophical and ethical factors that go into making a good decision or action - but these three are often a useful starting point, particularly when in discussion with others.

I have designed this short poll to help each of us think about what we need to do more of in this year. The responses are confidential (I cannot see the individual results).

It would be interesting to see the spread of opinion about what is really important for us to focus on  ethically in 2011.

As ever, your comments and questions of any hue are more than welcome.


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