Ethical practice and sustainable performance
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Ethical practice and sustainable performance

Leaders can set the right example for their employees, through both words and deeds.

It's no exaggeration to say that we are in living in a "do whatever I want" world. For example, riding against the traffic is the norm for motorcyclists, especially delivery drivers seeking to cash in on the huge spike in Covid-era demand. You may also have noticed more car drivers going the wrong way just to save a few seconds in closed spaces such as shopping mall parking lots.

Behavioural scientists coined the term "broken windows theory" to describe imitated bad behaviour. The bad news is that it's not just something that happens on our roads or parking lots.

It can also happen in an organisation if its leaders do not pay proper attention. Although the motivations in each situation may vary, in general there are three major causes of wrongdoing, or unethical practice:

"Want to have": Human beings have a desire to consume (food, a sense of pleasure, financial status, etc) in order to survive, ensure their safety and security. But once they start wanting more -- and more -- they may start to engage in unethical practices, including taking things that belong to others without permission.

When this kind of mindset takes hold, it's a good sign that these people have a clear problem separating right and wrong. Every situation becomes a grey area where they can rationalise their choices.

"Want to control": Some of us prefer to lead and dominate, while expecting others to recognise and accept their leadership. The desire to have power and be competitive usually is enhanced by a perception of superiority. This faulty paradigm can lead to major problems, since such people may do anything at any cost to acquire and maintain their power.

"Want to be a thought leader": Expecting others to accept what one believes can also cause major concerns. Some people have fixed ideas about how things work. Some hold tightly to certain spiritual beliefs and, unfortunately, consider the beliefs of others to be all wrong. Such narrow-minded people are dangerous, as we can learn from history and from daily news.

I have observed evidence of these trends in the course of studying executive behaviour. In one reliable psychometric assessment of 191 corporate managers or executives, 43 showed a desire to aim high to grow in the corporation, indicating they would do anything to advance their career. Twenty-six of these people were ready to compromise on rules and do things according to their own preference if it helped them get ahead.

The number may not be high, but don't forget that to change the course of anything, it requires only one strong-willed leader. Hence, the firm may want to consider the following suggestions to direct the organisation on the right ethical path.

Communicate corporate culture: All members of the organisation need to be reminded regularly of fundamental norms and principles. A statement of cultures guides all stakeholders to behave as good citizens. Changing the culture should be the last thing on the agenda since it will affect who we are -- unless the board and CEO confidently believe it is necessary to do so.

Leaders as role models: Nothing is more important to people than a good leader whom they can trust. Therefore, those at the top -- board members, the CEO and C-suite executives -- must behave ethically at all times.

Regular and frequent meetings are a good way for leaders to demonstrate that they can practise what they preach. They are a good tool for enhancing ethical practice since participants can share their views while leaders can also demonstrate their listening skills, open-minded approach and engagement with the team.

Zero-tolerance policy: Firms must publicly declare and demonstrate that they will not tolerate wrongdoing in any form. Unethical behaviour can range from white lies to harassment (physical, bullying, on social media), bribery to breaking the law.

A prompt response to unwanted behaviour can send a strong message to anyone thinking of taking similar actions. A consistent no-tolerance policy will certainly set the organisational moral compass in the right direction.

Continuing social programmes: Giving back to society through social contribution activities sets a good example to employees, encouraging each individual's ethical mindset. Companies are also judged by how well they care for their lower-skilled or low-level employees, since not everyone can be a star or executive level material.

Be open to outside wisdom: Occasionally it is valuable to give employees a chance to learn new knowledge from experts outside the organisation. Mindfulness is one area that more businesses are seeing as a life skill that their people need in today's disruptive world. Consider starting with an online search for presentations and videos by well-known practitioners and scholars such as Daniel Goleman, Jon Kabat-Zinn, Matthieu Ricard and Thich Nhat Hanh, to name a few.

In conclusion, ethical practice can lead the organisation to more sustainable performance. Applying the above five-point guideline can help shield you from unethical behaviour. Providing a proper environment and the right role modelling can encourage employees to turn away from wrongdoing and bad choices.

With mindfulness practice, they will also be aware, all the time, about right and wrong, so they will think twice before behaving unethically.


Sorayuth Vathanavisuth, PhD, is principal and executive coach at the Center for Southeast Asia Leadership. His areas of interest are executive coaching, leadership development, succession planning and talent management. He can be reached at sorayuth@sealeadership.com

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