1 David Long Canterbury Christ Church University IPW Helsinki Metropolia Business School, Finland May 13 – Integrity: The individual in the organisation

Individual Integrity ‘an adherence to moral principles or values... a consistency in one’s beliefs or action that endures, despite inducement or temptation to deviate from them.’ (Crane and Matten 2007)

Integrity: some philosophical perspectives Confucian view: the virtue of jen – more than compliance to a set of rules Buddhist-Christian view – focus on what is eternally significant, rather than on the ‘self’ Virtues approach – doing the right thing. 3 Modified from Koehn D. (2005) JBE 58;

4 Integrity as a Business Asset Integrity is not well defined Compliance with moral norms and expectations? Business view that integrity has market value Avoiding short-term thinking? Maintaining healthy relations with all stakeholders Selling products and services that are genuinely valuable? Having prudence to avoid unwise courses of action Respect for diversity. Koehn D. (2005) JBE 58;

5 The Importance of Integrity Rules do not necessarily encourage ethical behaviour No single right answer to many ethical dilemmas A good person will take the right action The importance of Professionalism Sense of moral responsibility is a pre-requisite for moral action (Trevino & Nelson 2011).

6 Aristotle’s Virtues – – Courage – – Self-control – – Generosity – – Magnificence – – High-Mindedness – – Gentleness – – Friendliness – – Truthfulness – – Wittiness – – Modesty.

7 Views of Joseph Desjardins  Ethical dilemmas are fundamentally ambiguous  Human character has been neglected in favour of the application of general principles to specific situations  The ability to apply lessons learned from the past to new situations in the present  The application of reasoning of situations, rather than forced use of preconceived categorisation  A ‘good ‘person (virtuous) will have practical wisdom to do the right thing (Phronesis). ( Virtues & Business Ethics, Joseph Desjardins, cited in Chryssides & Kaler 1993)

8 Compliance versus Integrity Compliance:  Rule-based  Legal approach  Prevention of misconduct  Sanctions for violations Integrity:  Values-based  Encourage commitment  Guiding principles  Self-governance approach ( Lawtion et al, 2013) Obedient Virtuous

9 Characteristics of a ‘Professional’ Person Knowledgeable Proficient Masterly Autonomous ‘Business-like’ Emotionally detached Honourable Trustworthy Ethical?

10 Common Features of Professional Groups Educational path – – University degree? Training and development – – Continuing Professional Development (CPD) – – Codes of practice Membership of a Learned Society or Institute – – Specific professional qualifications  competence – – Licensed practitioners – – Maintaining proper standards Research and development in particular field Acknowledged reputation in society?

11 Role of Professional Societies Accredit individual professional competence and integrity Advise governments and society of matters related to the profession Initiate debate on issues of importance Set standards for: – – Work – – Education Provide opportunities for networking and sharing problems and solutions Enable specialist groups to develop Most importantly, set standards for professional conduct... Compliance?

Doing Well v Doing Good Integrity in the workplace involves acceptance of ‘socialised power’ A professional working with integrity will : Believe in the importance of centralised authority Have a keen sense of justice and rewards hard work Feel responsible for developing the organisation Use power for common good Create a good working climate Help others succeed and commits them towards organisational goals. (Curtis 2003 )

13 Towards an Ethical Agenda: What British people think needs changing Source: IBE 2013

Challenges to Integrity in Business Constantly changing business environment Pressures on costs and revenues Intensive competition – traditional markets under attack Markets – local, national and global Customers becoming more demanding.

Towards an Ethical Outcome   Gather the facts   Define ethical issues   Identify affected parties   Identify consequences   Identify obligations   Consider your character and integrity   Think creatively about potential actions   Check your gut feeling (Trevino and Nelson 2007)

Any questions?