adminBradwell Mhonderwa Business Ethics
Decision-making is a very critical element in any business because it can make or break an institution. Ethical leadership is an emerging phenomenon in corporate thinking and decisions grounded on an ethical foundation have become a key driver for company growth and success. Because critical decisions that shape the destiny of an organisation are consummated by those at the top, it follows that an ethical paradigm must inform the character of every business leader including those in key positions.
Today as we look forward to the aftermath of the impending national plebiscite with optimism, the imperative to weigh ethics on the business agenda is overbearing.
Yes, the election aftermath must demonstrate an avid desire by businesses to migrate en masse towards responsible business conduct.
The new economic order must be characterised by organisations “going back to doing business ethically” with the corporate ethics programme being at the centre of achieving that.
A comprehensive approach to managing workplace ethics is the inevitable business paradigm that must oil the migration to responsible business conduct.
Ethical leadership has the power to inspire employees to drift with their organisations towards responsible business conduct.
Through ethical leadership, employees are motivated to delve deeper into understanding the new intents of the organisation, and are ready to play their part in re-engineering workplace behaviour.
Ethical leadership will inspire employees to thirst for the deeper things of the organisation coaxing them to once again view loyalty, honesty, trustworthy and truthfulness as the profound behavioural benchmarks that must anchor their conduct.
Ethical leadership will invoke in employees the spirit of self-regulation and the desire to abide not just with the letter but also the spirit of the company vision, mission and values.
It will move corporate leaders to help make employees better off by enabling them to pursue their own hopes and dreams while at the same time working towards achieving set organisational goals.
Only ethically inspired leaders can successfully lead the process of regaining employee trust in organisations devastated by years of economic turmoil and hopelessness.
Ethical leadership will allow corporate leaders to do a self-introspection that realigns their individual needs with those of the organisation.
Ethical leadership will see business leaders exemplifying purposeful corporate guidance that goes beyond accomplishing short-term financial gains to ensure long-term growth and sustainability of the organisation.
With an ethically sensitive strategic plan in place, organisations will have a template against which they can assess their actions and outcomes making sure that they meet all the reasonable expectations of their stakeholders.
The Libor scandal at Barclays Bank in London last year clearly illustrates the value of ethical leadership in companies, even where mistakes are made.
When the Libor scandal was unearthed, the bank’s reputation received a huge knock with its share price tumbling, and in the process losing billions of dollars. The bank was also fined US$455 million by regulators.
In order to help restore the battered image of the bank, Marcus Agius, the bank chairman, and Mr Bob Diamond, his CEO, resigned.
Mr Agius apologised to the bank’s customers, employees and all other stakeholders for the scandal, acknowledging that as the chairman of the institution he was the ultimate guardian of the bank’s reputation.
The resignations saw the share price of the bank going up once again.
Apologising and owning up to mistakes are ethical attributes that help to restore public confidence in the reputation of an organisation.
The Barclays chairman accepted responsibility and he resigned honourably from the institution without dragging its name and reputation down with him.
And on the other hand, the conduct of Mr Bernie Ebbers and Mr Ken Lay, the CEOs of the infamous Worldcom and Enron, illustrates what can happen when business leaders decide to be arrogant, reckless and unethical in their business dealings.
The two opted to circumvent ethical business practices in favour of short-term financial gains.
The market glorified them for achieving extraordinary financial results which were beyond Wall Street expectations.
Sadly, the market got to know that these “exceptional results” were achieved through unscrupulous business transactions only after the collapse of these two NYSE-listed giants in 2002.
Yes, shareholder value must be created, but this must be done with due consideration of the ethics of doing so.
We should all act responsibly so that in the fullness of time, only our glorious nation will be the winner, not individuals or groups.
The imminent new economic order must put the ethics agenda on every leader’s daily work schedule and ensure that his/her everyday work is grounded on a sound ethical footing.
American business magnate, investor and philanthropist Mr Warren Buffet once said: “It’s only when the tide goes out that we learn who has been swimming naked.”
Indeed, soon the tide will be gone and the naked swimmers shall be picked up and brought to the seashore for all to see.
Doors to closets with skeletons shall be broken, and those who thrived on deception shall be unmasked.
- Bradwell Mhonderwa is an ethics coach and trainer with the Business Ethics Centre. Send feedback to [email protected], or call 0772 913 875.
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