Why purpose, values, principles matter
In advising organisations about ethics and culture, our Ethics Centre consultants often start by asking a simple question: “Do you have an ethical framework?” What we’re trying to understand is whether the company has a well-defined purpose, supported by values and principles. It’s the bedrock upon which every successful and well-run company is built.
Over the last twenty years we have witnessed a veritable roll call of organisations who have faced an ethics crisis. And for some, this crisis has threatened their very existence. And while the individual factors will vary, there is often one underlying root cause of this failing – a drift from the organisation’s ethics framework.
An ethics framework is a critical foundation for any organisation. It expresses their purpose, values and principles – quite literally, what they believe in and what standards they’ll uphold. In making these visible, as well as living across everything they do, it allows the organisation to be the best possible version of itself, now and into the future.
If an ethics framework is practically useful, it will provide a way to diagnose ethics failure, apportion responsibility and offer a means to provide justice for victims. However, this is merely the minimum standard. It also provides the ideal that should be strived for.
An ethics framework demands something more than mere compliance. It asks employees to exercise judgement and accept personal responsibility for the decisions they make. In order to be effective, it must be consistently embraced by every member of the organisation.
- Values tell us what’s good – they’re the things we strive for, desire and seek to protect.
- Principles tell us what’s right – outlining how we may or may not achieve our values.
- Purpose is our reason for being – it gives life to our values and principles.
The power of a good ethics framework
A strong ethics framework will unite an organisation’s workforce under a common goal, creating a far better workplace culture in the process. It will help leaders make decisions that are consistent with purpose, and improve decision-making capacity across the organisation. It supports a company to be more adaptable to change and clearly demonstrates to clients, customers and other stakeholders what they stand for and where they’re headed.
A company will struggle to develop consistent workplace policies or a corporate strategy without an ethics framework. But the reverse is also true: with an ethics framework all of these processes become far easier to navigate.
Purpose
In designing an ethics framework, much is made of purpose statements – primarily because they tend to be the most visible, public-facing feature of the framework. Creating a great purpose statement is something of an art form, it needs to achieve a great deal in a few words. It should be inspiring, have an aspirational quality, and capture the essence of your company’s ‘why?’.
Ideally, purpose statements should describe how your company is satisfying a need in society or in the market. Examples include Disney’s “To make people happy” or technology powerhouse Atlassian “To unleash the power in every team”. We’re quite proud of The Ethics Centre’s purpose statement which is “To bring ethics to the centre of everyday life.”
Values and principles
Values and principles enable employees to distinguish between what is regarded as important and the means by which they should be pursued. They help to frame business activity to ensure it stays true to its purpose and contract with society. A good framework will be;
- Stable – will not change significantly (in its essence) over the long term
- Understandable – by all of those required to apply it in practice
- Practical – able to be applied in practice and with consistency
- Authentic – it will ‘ring true’.
Good for business
Having an ethics framework isn’t designed to maximise profits – it’s designed to protect and improve the relationship between business and society. But it does often benefit business as a commercial enterprise as well. By motivating employees and demonstrating the value and purpose of the business to them, they serve as ambassadors for the organisation.
Although purpose statements, corporate values and organisational principles aren’t a guarantee of perfect ethical conduct, they are a crucial ingredient in building a culture in which bad behaviour is discouraged and dis-incentivised. They’re also a flag of goodwill to stakeholders that an organisation is looking to serve humanity and not simply turn a quick buck.
Ethics frameworks are not magic bullets to solve an organisation’s problems – they won’t guarantee that all employees will do the right thing every time. But approached with the proper degree of care and sophistication, the very process of developing these codes can have a profoundly positive effect on the culture of an enterprise. In establishing the things you believe in and identifying the behaviours you wish to encourage, you establish a framework for a great corporate culture – one based on respect, trust, collaboration and accountability. And who wouldn’t want that?
Creating an ethics framework
It may surprise you to learn that many companies have no ethics framework at all. And of those that do, many are working with largely meaningless statements that offer little in the way of guidance. Some were written decades ago. Some were cooked up by marketing strategists as part of a corporate branding exercise. Whatever their provenance, there’s a sense that the framework has ceased to have any meaning for the people who work at the company.
Developing an ethics framework is only the starting point. Ensuring the framework is fully embedded and understood throughout an organisation and lived by its people is the harder challenge. Over three decades of consulting work, we’ve helped countless organisations to develop and embed their ethics frameworks. We’ve worked across multiple sectors and with companies of many shapes and sizes.
If you’d like to talk to The Ethics Centre about creating an ethical framework for your organisation, we’d love to hear from you.
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BY The Ethics Centre
The Ethics Centre is a not-for-profit organisation developing innovative programs, services and experiences, designed to bring ethics to the centre of professional and personal life.
How to spot an ototoxic leader
We all know about toxic leaders. There are plenty of them around. Some are especially skilled with the ability to use their words to grind down anyone they perceive as a threat.
I call these leaders ototoxic – named after the medical description of drugs that cause adverse reactions to the ears’ cochlea or auditory nerves.
Ototoxicity is a distinctive quality of a poor leader, who can leave a trail of damage.
Ototoxic leaders betray themselves by a number of logical fallacies – hallmarks of their communication style. US President Donald Trump has given us plenty of examples during his presidency.
They play the person not the argument
The ototoxic leader will go after a person’s character or pick on a personal trait. They take aim at anything personal, but will avoid addressing the logical merits of the argument. This is known as an ad hominem fallacy.
Donald Trump critiqued fellow Republicans – “Lyin’ Ted” (Cruz), “Lil’ Marco” (Rubio), “Low Energy Jeb” (Bush). There were also repeated references to “Crooked Hillary”. He repeatedly accused opponents of being “too aggressive”, (usually a woman) or “not forceful enough” (usually a man), or in the case of “Lil’ Bob” Corker, of not being “tall” enough to be taken seriously.
They use straw-man arguments
An ototoxic leader will also exaggerate, or blatantly fabricate, an opposing point of view. This allows them to position their perspective as more reasonable and practical. In the third presidential debate before his election, Trump accused Hillary Clinton of advocating an open border policy, misquoting comments she made in relation to free trade. In a climate of widespread national hostility towards immigration, the border wall seemed to many as the more reasonable option.
In the workplace, an ototoxic leader will use overblown rhetoric to belittle someone else’s initiative, exaggerating potential cost overruns or overstating other risks in order to then position their proposal as the more reasonable one.
They appeal to hypocrisy
This defensive strategy turns an initial criticism back on the accuser. Trump used this rhetorical flourish during his presidency after refusing to face criticisms that he didn’t take a position on the violence following the Charlottesville rally. Rebutting the criticisms of neo-Nazis and the Ku Klux Klan, Trump maintained that ‘many others’ had also done bad things, implying they were equally culpable.
In the workplace, an ototoxic leader can often be heard defending their actions using the appeal to hypocrisy. “You think I’m aggressive? What about that meeting last week when you didn’t agree with me? You were just as bad, if not worse!”
They use the firefighter arsonist tactic
Named after the rare syndrome where firefighters light fires intentionally only to later arrive as a hero to put it out, the ototoxic leader will overly dramatise a potential problem, at the same time pointing the finger of blame at others for causing it. Once the situation reaches a critical mass, the ototoxic leader will then step in with a last-minute solution, ‘saving the day’.
Trump is well versed in this tactic. Stoking anti-Muslim sentiment as early as March 2011 with his calls for then President Obama to show his birth certificate and trading on unfounded ‘birther’ claims, Trump proceeded to inflame fears throughout the election campaign. He threatened the mass deportation of Syrian asylum seekers while promising to create a database of all Muslims in the US, along with making false claims of seeing ‘thousands and thousands’ of people in New Jersey celebrating the collapse of the World Trade Centre Towers in 2001. Trump stepped in to solve the ‘problem’ by signing his two travel bans within the first 100 days of his tenure.
More recently, Trump repeatedly covered himself in glory after meeting Kim Jong-un at their historic first summit in June 2018. Mere months after painting Kim as “Little Rocket Man” who, according to Trump posed the greatest threat to Western civilisation and was enabled by his predecessors who “should have been handled a long time ago”, following the summit Trump celebrated the “success” of the meeting. He waxed lyrical about the leaders “tremendous” relationship, including the beautiful “love letters” he received from the North Korean dictator in the lead up to the summit, while going on to extol the virtues of Kim, including his “great personality”, his sense of humour, intelligence and his negotiation abilities. Following the script of the hero who rides in to save the day, Trump tweeted that “everybody can now feel much safer than the day I took office…there is no longer a nuclear threat from North Korea.”
In the workplace, the ototoxic leader will spark a flame of disquiet around a project or strategy then proceed to escalate concerns – often through back channel politics – before presenting a grand ‘solution’ that saves the day.
Passive and aggressive
Ototoxic leaders can be aggressive or passive. The actively toxic communicator, who uses aggressive and intimidating language to subordinate others, can be bombastic, opinionated and openly dismissive of those who have different views. Their default mode of questioning almost exclusively involves closed questions (yes or no). Their inability to be open and listen to other’s views is usually a symptom of their lack of empathy.
The passive ototoxic leader is no less poisonous. In one-on-one settings, they are an impatient listener and will quickly interrupt their interlocutor in order to express their own view, often cutting the other person off in mid-sentence.
This ototoxic leader will tend to become frustrated in meetings if the consensus view is running contrary to theirs, to the point they will actively disengage from what’s going on in the room. They will resist all attempts to re-engage them by looking to shut down the conversation wherever possible.
Energy suckers
The net effect of the ototoxic leader’s tactics and communication style is to de-energise those they come into contact with.
Research shows that these de-energising ties have a disproportionate impact on an organisation’s culture. They are a ‘toxicity multiplier’, reducing the levels of individual performance, employee engagement and general well-being.
A disproportionate level of conflict between teams is generated and trust decreases. Rather than investing the energy to achieve their goals, those who work under an ototoxic leader spend a disproportionate amount of time analysing the relationship and devising strategies to palliate the person.
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BY John Neil
John leads the Centre’s major consulting projects, leadership and culture programs and product development. Drawing on 20 years of experience, John has worked with Australia’s largest organisations in developing and delivering solutions to bring ethics to the centre of business design, culture development, and organisational decision making. Before joining us, John worked in the business school at the University of Technology Sydney. During his time there, he inspired students and colleagues alike through his research and teaching, and chaired the Ethics Working Group to develop an approach to embed ethics in the Bachelor of Business curriculum.