Stepping up, Sliding over or Sinking Below Workplace Ethics – In the Practice or in the Breach? Dr. Attracta Lagan

Checklist Cultural Risks SYSTEMS LEVEL Lack of ethical leadership - political interference & autocratic leadership Unprofessional & Amoral managers Diffusion responsibility Pressure to conform Compliance Priority Blame cultures emerge PERSONAL LEVEL Group Commitment Poor interpersonal skills Lack of consequences Sense of entitlement Ignorance ethical implications Self interest Psychological disengagement

Workplace context creates ethical challenges Qualities Model Muel Kaptein Dimensions Causes Repercussions “Entangled hands” Employees represent organisation; have access to assets which may be used for own use Carelessness use or misuse of time, information, funds, authority, equipment, goods & staff “Many Hands” Organisation consists of staff, departments, divisions which should be geared collectively and furnished with collective assets Counter-productive competition between departments Responsibilities get lost Tasks orphaned or only partially performed “Dirty Hands” Need to balance potentially conflicting stakeholder expectations Stakeholders have reason to complain & less willing to participate Stakeholders leave Confidence & trust evaporate

Where are we starting from? An organization can only be as ethical as it’s employees Agree/Disagree Every employee possesses ethical leadership qualities Agree/Disagree Leadership exists hierarchically and (everywhere) Agree/Disagree Ethical people will behave unethically Agree/Disagree Success without ethics...is failure Agree/Disagree Who decides what’s ethical? What does it mean to be an ethical organisation? How is the ethical tone modelled from the top?

Public virtue private vice? We will treat our customers & each other equitably & with respect We will establish a Just Culture & be honest and ethical We will work together We will encourage and support each other We will put safety first

Cultural Imperatives What you MUST do GET AWAY WITH NOT DOING Absolutely MUST NOT do Make the minister look good Long term thinkingChallenge authority Manage upTreat each other with respect Rat on your mates Be seen to be following the rules Apply organisational values in every day decisions Report poor role modelling by those at the top Participate in high profile projects Performance ReviewsTake risks Appear to know what to do Accountability for plans against targets Admit your mistakes

THE GOOD – rules clear & modeled from top; people feel safe because they know what to expect THE BAD – top down management; one way communications; bad news sent underground THE UGLY – public virtue, private vice; just do it bullying cultures; employees disengaged The Good, Bad & the Ugly

Decisions made in organisations have a direct impact on the two major sources of organisational capital Social capital Financial Capital

I happen to see a colleague hit a parked car while leaving our work car park. I’m sure they haven’t seen me. After taking a quick look at the damage, they make sure the coast is clear and then speed away. One of my dilemmas is that this colleague is also my spouse’s cousin. What do I do? I slip a note under the windshield wipers of the damaged car with the details of the person responsible for the damage. I act as if I haven’t seen a thing. I tell my colleague that I saw what they did. I report the incident to management. What would you do? FINANCIAL CAPITAL SOCIAL CAPITAL

Through your work, you’ve learnt that a well-known, publicly listed company is being investigated by the Securities Commission. This company has been a darling of the stock broking community. It seems however, that their success may be due to some creative accounting. Your mother is seeking to invest a windfall of $20,000 and her financial adviser has recommended this stock. What do you do? 1.You tell your Mum not to invest in this company without giving reasons 2.You warn your Mum that you have information suggesting their success will come to an abrupt end and leave the decision up to her 3.You don’t say anything but make sure your Mum finds out another way 4.You keep quiet What would you do? FINANCIAL CAPITAL SOCIAL CAPITAL

What would you do? 1.I accept the offer, and use holiday time to work in the consultancy 2.I refuse the very attractive offer 3.I tell them that I am willing to work evenings and weekends 4.I put the proposition before my manager and follow their advice As part of my development, I’ve attended dozens of leading-edge training courses at the Department’s expense. A previous work colleague who now runs their own consultancy, has asked me to assist them on a freelance basis and in my own time. They have offered me a very good hourly rate. What do I do? FINANCIAL CAPITAL SOCIAL CAPITAL

What do ethical leaders do? Trevino Ask what’s right thing to do Role model ethical conduct Defines success by how as well as why Listens and has employees’ best interests in mind Communicates an ethics and values message Holds everyone accountable The ethical climate = the leader’s influence over the ethical choices & actions of others

Which of your people are stepping up? at risk of sliding over? currently sinking below?