How to deal with an ethical crisis

How to deal with an ethical crisis
Opinion + AnalysisBusiness + Leadership
BY Simon Longstaff The Ethics Centre 8 MAR 2016
The recent dissection of CommInsure’s heartless treatment of some of its policy holders (including fellow employees) by Fairfax Media and ABC’s 4 Corners program reinforced every bad stereotype there is about the world of banking and finance.
The people whose stories were featured in the reports were treated in a manner that made me wince. You’d think that people of even moderate decency would have realised that what was being done was wrong. Yet the evidence is incontrovertible.
Basic decency was set aside in favour of the financial interests of the corporation and, one suspects, the people making the decisions. Until now, the cost of this has been borne by those whose claims were denied.
Now the price is being paid by the Commonwealth Bank and the vast majority of innocent employees who will have been appalled and ashamed by what has been revealed.
Now that the issues have been exposed, the first order of business should be to remedy the harms that were caused to individuals who had a right to expect that their legitimate interests would not be sacrificed for commercial gain.
The particular vulnerabilities of those affected make for especially chilling stories. No person, whatever their circumstances, should have the careful parsing of the language of insurance policies turned against them. We all buy insurance in the expectation that it will be available when we really need it. It is just plain ‘tricky’ when loopholes are used to deny our reasonable expectations.
It is time that we developed a more mature understanding of what it means to live an ethical life as an individual or as an organisation.
The second order of business must be to rescue the concept of ‘ethics’ in banking and finance. In recent months, I have spoken to a number of senior leaders in the banking and finance industry about their signing the Banking + Finance Oath. As things stand, about 600 people have made a personal commitment to the tenets of the Oath. Every person with whom I have spoken supports what the Oath says and stands for.
However, quite a few are reluctant to sign for fear that something might go wrong – and that in the face of evidence of ‘ethical failure’ they will be accused of hypocrisy.
Their misgivings are understandable – especially after the CommInsure scandal. It was only at the CBA’s last AGM that the Chairman and CEO both raised the issue of ethics – making a commitment to become an “ethical bank“. At the time, cynics scoffed at the idea. In recent days, and quite predictably, the CBA has been ‘hit over the head’ (clobbered is probably the better word) with this aspiration. No wonder people are nervous about making a public commitment to ethics!
The Ethics Centre worked extensively with the CBA in late 2014 and early 2015 (but not with CommInsure) and I have a high regard for the sincerity with which they laid out a path for ethical development at the 2015 AGM. What was said then should not be dismissed out of hand – and especially not because of recent events. Rather, we should ensure that the standard by which we assess the CBA is a reasonable one – and then judge accordingly.
To think that any individual (other than a saint) can achieve ethical perfection is unfair and unrealistic. I certainly wouldn’t measure up to that standard. To think that an organisation of 50,000 people will be perfect is just ridiculous. What we can (and should) expect is that an ethical organisation will distinguish itself with a number of key features.
First, it will actively seek to reinforce the application of its values and principles – not just at the rhetorical level but as part of an ongoing program to root out and eliminate all systems, policies and structures that might subtly (and not so subtly) lead people to act in a manner that is unethical.
Second, it will build a culture of open communications in which people are rewarded (and certainly not punished) for drawing attention to practices that appear to be inconsistent with the organisation’s declared ethical framework.
Third, an ethical organisation will be marked by the quality and character of its response to ethical failure. For example, it will own up to its own failings. It will remediate and compensate for any harms done. It will ensure that the lessons to be learned are widely published for the benefit of others. It will aim to do what is right – and not just the minimum that it is required to do.
This third aspect was evident in Ian Narev’s response to questioning on Four Corners. I believe his expressions of concern were sincere and that he will follow up, personally, with the affected individuals. Beyond this, I have no doubt (but no certain knowledge) that he is leading a process that will meet the expectations outlined above. That CBA follows this path will be a surer indication of its commitment to ethics than the fact that this shameful series of events occured in the first place. And that is what we need to evaluate.
An ethical organisation will be marked by the quality and character of its response to ethical failure.
It is time that we, in society, developed a more mature understanding of what it means to live an ethical life as an individual or as an organisation. If we cannot be perfect, then we can at least be held to account for the sincerity with which we make our best efforts to act, in good conscience, in conformance with our chosen values and principles.
And second, we should be accountable for the competence we bring to bear in our ethical decision-making – it’s a skill that cannot be taken for granted and needs development through active, reflective practice.
If this (rather than perfection) was the standard we insisted on – for ourselves and others – then more people in the world of banking and finance might publicly commit to what they know, in their heart-of-hearts, to be right and good.
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BY Simon Longstaff
Simon Longstaff began his working life on Groote Eylandt in the Northern Territory of Australia. He is proud of his kinship ties to the Anindilyakwa people. After a period studying law in Sydney and teaching in Tasmania, he pursued postgraduate studies as a Member of Magdalene College, Cambridge. In 1991, Simon commenced his work as the first Executive Director of The Ethics Centre. In 2013, he was made an officer of the Order of Australia (AO) for “distinguished service to the community through the promotion of ethical standards in governance and business, to improving corporate responsibility, and to philosophy.” Simon is an Adjunct Professor of the Australian Graduate School of Management at UNSW, a Fellow of CPA Australia, the Royal Society of NSW and the Australian Risk Policy Institute.
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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.
Australia is no longer a human rights leader

Australia is no longer a human rights leader
Opinion + AnalysisBusiness + LeadershipPolitics + Human Rights
BY Georgie Bright The Ethics Centre 23 FEB 2016
On February 8, Prime Minister Malcolm Turnbull announced the appointment of Philip Ruddock – the former immigration minister who presided over the Howard government’s notorious “Pacific Solution” to divert asylum seekers from its shores – as Australia’s first special envoy for human rights.
This surprising recycling of Ruddock is part of the government’s campaign for a seat at the United Nations Human Rights Council for the 2018-2020 term.
Not too long ago, then Prime Minister Tony Abbott said Australia was “sick of being lectured to” by the United Nations. But even the new government is demonstrating a willingness to dismiss inconvenient human rights obligations. In Human Rights Watch’s annual World Report – which documents human rights practices in more than 90 countries – Australia’s human rights record over the last year showed how far the country has to go.
It is difficult not to be disillusioned by the state of human rights in Australia. This is especially the case regarding the treatment of migrants and asylum seekers, and the discrimination faced by Indigenous Australians.
Australia’s candidacy for a seat at the Human Rights Council provides an important opportunity for Australia to address its domestic human rights issues.
Australia’s position on refugee protection has been to undermine and ignore international standards rather than uphold them. The country maintains a harsh boat turn-back policy, returning migrants and asylum seekers to countries including Indonesia, Sri Lanka, and Vietnam after only the most cursory of screenings.
Australia has a policy of mandatory detention for all unauthorised arrivals, transferring migrants and asylum seekers to offshore processing sites in less-equipped countries such as Nauru and Papua New Guinea. An independent review and a report by the Australian Human Rights Commission found evidence of sexual and physical abuse of children on Nauru.
Instead of trying to ensure the safety of the asylum seekers and refugees in Australian immigration detention facilities, the government acted to limit public discussion of important refugee and migrant issues. It passed a law that makes it a crime punishable by two years jail if immigration service providers disclose “protected information”.
Following a ruling by the High Court, 267 asylum seekers in Australia, including 91 children, faced involuntary transfer to Nauru and Manus Island. The High Court ruled on narrow statutory grounds and did not consider Australia’s compliance with international refugee law.
Another area where Australia is falling behind is Indigenous rights. In November 2015, Australia appeared before the UN Human Rights Council to defend its rights record as part of the Universal Periodic Review process. Many countries urged Australia to address disadvantage and discrimination faced by Indigenous Australians. The government’s “Closing the Gap” report for 2016 highlighted mixed progress in meeting targets in education and health, with Indigenous Australians still living on average 10 years less than non-Indigenous Australians.
Indigenous Australians remain disproportionately represented in the criminal justice system, with Aboriginal women being the fastest growing prisoner demographic. Aboriginal and Torres Strait Islander children under the age of 18 are overrepresented in youth detention facilities—representing more than half of child detainees.
Australia’s candidacy for a seat at the Human Rights Council provides an important opportunity for Australia to address its domestic human rights issues.
Australia is a vibrant democracy with a multicultural society and a solid history of protecting and promoting human rights values. Following the horror of World War II, Australia played an integral role in the development of the United Nations. In 1948, Australia’s Dr Herbert Vere Evatt, as president of the General Assembly, oversaw the adoption of the Universal Declaration on Human Rights.
But to regain the moral high ground and respect international law, Australia should urgently address these and other shortcomings in its human rights record. For starters, the government should stop transferring migrants and asylum seekers offshore, and provide them with fair and timely refugee status determination in Australia.
On Indigenous rights, it needs to intensify its commitment to addressing the underlying causes of gaps in opportunities and outcomes in health, education, housing and employment between Indigenous and non-indigenous and do more to address the high incarceration rate.
Australia once was an international human rights leader – and should be again.
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BY Georgie Bright
Georgie Bright is the Australia Associate Director for Development and Outreach at Human Rights Watch. Prior to joining Human Rights Watch, she worked in criminal law at Legal Aid Queensland. Georgie holds a law degree from Queensland University of Technology and obtained her Masters in International Human Rights Law at the University of York.
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Ending workplace bullying demands courage

Ending workplace bullying demands courage
Opinion + AnalysisBusiness + LeadershipHealth + WellbeingRelationships
BY Petrina Coventry The Ethics Centre 5 FEB 2016
Despite increasing measures to combat workplace harassment, bullies remain entrenched in organisations. Changes made to laws and regulations in order to stamp out bullying have instead transformed it into an underground set of behaviours. Now hidden, these behaviours often remain unaddressed.
In other cases, anti-bullying policies can actually work to support perpetrators. Where regulations specify what bullying is, some people will cleverly use those rules as a guide to work around. Although these people are no longer bullying in the narrow sense outlined by policies or regulations, their acts of shunning, scapegoating and ostracism have the same effect. Rules that explicitly define bullying create exemptions, or even permissions, for behaviours that do not meet the formal standard.
Because they are more difficult to notice or prove, these insidious behaviours can remain undetected for long periods. As Kipling Williams and Steve Nida argued in a 2011 research paper, “being excluded or ostracized is an invisible form of bullying that doesn’t leave bruises, and therefore we often underestimate its impact”.
The bruises, cuts and blows are less evident but the internal bleeding is real. This new, psychological violence can have severe, long-term effects. According to Williams, “Ostracism or exclusion may not leave external scars, but it can cause pain that often is deeper and lasts longer than a physical injury”.
Bullies tend to be very good at office politics and working upwards, and attack those they consider rivals through innuendo and social networks.
This is a costly issue for both individuals and organisations. No-one wins. Individuals can suffer symptoms akin to Post-Traumatic Stress Disorder. Organisations in which harassment occurs must endure lost time, absences, workers’ compensation claims, employee turnover, lack of productivity, the risk of costly and lengthy lawsuits, as well as a poor reputation.
So why does it continue?
First, bullies tend to be very good at office politics and working upwards, and attack those they consider rivals through innuendo and social networks. Bullies are often socially savvy, even charming. Because of this, they are able to strategically abuse co-workers while receiving positive work evaluations from managers.
In addition, anti-bullying policies aren’t the panacea they are sometimes painted to be. If they exist at all they are often ignored or ineffective. A 2014 report by corporate training company VitalSmarts showed that 96 percent of the 2283 people it surveyed had experienced workplace bullying. But only 7 percent knew someone who had used a workplace anti-bullying policy – the majority didn’t see it as an option. Plus, we now know some bullies use such policies as a base to craft new means of enacting their power – ones that aren’t yet defined as bullying behaviour by these policies.
Finally, cases often go unreported, undetected and unchallenged. This inaction rewards perpetrators and empowers them to continue behaving in the same way. This is confusing for the victim, who is stressed, unsure, and can feel isolated in the workplace. This undermines the confidence they need to report the bullying. Because of this, many opt for a less confrontational path – hoping it will go away in time. It usually doesn’t.
Cases often go unreported, undetected and unchallenged. This inaction rewards perpetrators and empowers them to continue behaving in the same way.
What can you do if a colleague is being shunned or ostracised by peers or managers? The first step is not to participate. However, most people are already likely to be aware of this. More relevant for most people is to not become complicit by remaining silent. As 2016 Australian of the Year David Morrison famously said, “The standard you walk by is the standard you accept.”
The onus is on you to take positive steps against harassment where you witness it. By doing nothing you allow psychological attacks to continue. In this way, silent witnesses bear partial responsibility for the consequences of bullying. Moreover, unless the toxic culture that enables bullying is undone, logic says you could be the next victim.
However, merely standing up to harassment isn’t likely to be a cure-all. Tackling workplace bullying is a shared responsibility. It takes regulators, managers and individuals in cooperation with law, policy and healthy organisational culture.
The onus is on you to take positive steps against harassment where you witness it. By doing nothing you allow psychological attacks to continue.
Organisational leaders in particular need to express public and ongoing support for clearly worded policies. In doing so, policies begin to shape and inform the culture of an organisation rather than serving as standalone documents. It is critical that managers understand the impacts of bullying on culture, employee wellbeing, and their own personal liability.
When regulation fails – the dilemma most frequently seen today – we need to depend on individual moral character. Herein lies the ethical challenge. ‘Character’ is an underappreciated ethical trait in many executive education programs, but the moral virtues that form a person’s character are the foundation of ethical leadership.
A return to character might diminish the need for articles like this. In the meantime, workplace bullying provides us all with the opportunity to practise courage.
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Petrina Coventry is Industry Professor and Director of Development with the University of Adelaide Faculty of the Professions and the Business School. She previously held global vice president roles with the General Electric Company and The Coca Cola Company in the United States and Asia and was most recently CHRO with Santos Ltd.
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What your email signature says about you

What your email signature says about you
Opinion + AnalysisBusiness + LeadershipHealth + Wellbeing
BY The Ethics Centre 2 FEB 2016
Getting too many unethical business requests? Sreedhari Desai’s research suggests a quote in your email signature may be the answer to your woes.
In a recent study Desai enrolled subjects to participate in a virtual game to earn money. The subjects were told they’d earn more money if they could convince their fellow players to spread a lie without knowing about it. Basically, subjects had to trick their fellow players into believing a lie, and then get those other players to spread the lie around the game.
What subjects didn’t know is that all their fellow ‘players’ were in fact researchers studying how they would go about their deception. Subjects communicated with the researchers by email. Some researchers had a virtuous quote underneath their email – “Success without honor is worse than fraud”. Others had a neutral quote in their email signature – “Success and luck go hand in hand”. Others had no quote at all.
And wouldn’t you know it? Subjects were less likely to try to recruit people with a virtuous quote in their email. The quote served as a “moral symbol”, shielding the person from receiving unethical requests from other players. In an interview with Harvard Business Review, Desai outlines what’s happening in these situations:
When someone is in a position to request an unethical thing, they may not consciously be thinking, “I won’t ask that person.” Instead, they may perceive a person as morally “pure” and feel that asking them to get “dirty” makes an ethical transgression even worse. Or they may be concerned that someone with moral character will just refuse the request.
So, if you want to keep your hands clean it may be as simple as updating your email signature. It won’t guarantee you’ll do the right thing when you’re tempted (there’s more to ethics than pretty words!) but it will ensure you’re tempted less.
There are other, more expensive ways to avoid unethical approaches via email.
And in case you’re looking for a virtuous quote for your email signature, we surveyed some of our staff for their favourite virtuous quotes. Here’s a sample:
- “The unexamined life is not worth living” – Socrates
- “No man wishes to possess the whole world if he must first become someone else” – Aristotle
- “Protect me from what I want” – Jenny Holzer
- “A true man goes on to the end of his endurance and then goes twice as far again” – Norwegian proverb
- “Knowledge is no guarantee of good behaviour, but ignorance is a virtual guarantee of bad behaviour” – Martha Nussbaum
A small disclaimer to all of this – it might not work if you work with Australians. Apparently our propensity to cut down tall poppies and our discomfort for authority extend to moral postulations in email signatures. Instead of sanctimony, Aussies are likely to protect people with fun or playful quotes in their emails. Desai explains:
“We’re studying how people react to moral symbols in Australia. Our preliminary study showed that people there were sceptical of moral displays. They seemed to think the bloke with the quote was being ‘holier than thou’ and probably had something to hide.”
So, as well as your favourite virtuous quote, you might want to bung a joke on the bottom of your emails to please your sceptical Antipodean colleagues, lest they lead you into temptation.
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Your donation is only as good as the charity you give it to

Your donation is only as good as the charity you give it to
Opinion + AnalysisBusiness + LeadershipHealth + Wellbeing
BY Sam Deere The Ethics Centre 21 JAN 2016
It’s admirable, perhaps even required, for those of us living comfortable lives in the developed world to give some time or money to ‘good causes’. We recognise fortune has smiled upon us and have a desire to ‘give back’ in some way – we have so much and others have so little, we seek to redress it.
But while there is strong agreement the fortunate have an opportunity – some would say an obligation – to use their resources to make life better for the less well-off, the discussion often ends here. That is, we think people should do something but we’re often not concerned with exactly what that something is. Should you donate to a local homeless shelter, a national medical research charity or a big international NGO? For many people, it’s unclear there’s any difference between these actions – surely they all make the world a better place?
Let’s think about that.
Say there were only two charities in the world, The Cupcake Foundation and the Real Actual Medicines Trust. The Cupcake Foundation distributes delicious cupcakes to people in hospital. The Real Actual Medicines Trust distributes medicines that will completely cure a patient’s disease. Both charities are undeniably making the world a better place but it’s pretty clear that one is doing much more good than the other. I think most people would choose to donate their money to The Real Actual Medicines Trust.
Asking these questions gets to the heart of why it is we help people. Are we altruistic because we think that making others better off is good in and of itself? Or do we just do it to stave off our middle-class guilt?
Take a different example. Let’s say that a third charity, Medicines ’R Us, is also distributing medicines, but they use generic medicines that cost half as much to produce as the on-brand medicines distributed by The Real Actual Medicines Trust. This means that a $20 donation to the Medicines ‘R Us will cure twice as many people as a $20 donation to the Real Actual Medicines Trust. Surely – given we can do twice as much good donating to the former than the latter – we should give our money to Medicines ‘R Us, thus doubling our impact.
These seem like contrived examples, but in reality, the differences between charities are astounding – not just a factor of two or three times, as in the example above, but some are ten, or even 100 times more effective than others!
Asking these questions gets to the heart of why it is we help people. Are we altruistic because we think that making others better off is good in and of itself? Or do we just do it to stave off our middle-class guilt? To impress other people? To show off?
Undoubtedly many good works are motivated by these latter factors. But are they really good reasons? Are they the reasons we’d choose? I’d certainly like to think that when I donate to charity I’m doing it for the benefit of other people. The sense of wellbeing that I get afterwards is nice but ultimately not morally important.
If it’s really other people’s benefit we care about, we need to think hard about how we choose where we spend our time and money on good causes. We don’t have infinite time and money. Every choice to donate something to one cause is an implicit choice not to donate it to another.
It might seem harsh to judge any charity less effective than any other another. Doesn’t that mean that the people served by the less-effective charity lose out? It does. But not making comparisons doesn’t mean everyone gets the help they need. It means that people who would be helped by the more effective charities lose out. More people are becoming sick, even dying, because people are choosing not to donate more effectively.
In the long run, hopefully we’ll be in a position to eradicate extreme poverty and disease from the world and we’ll have enough resources to fund all good causes. In the meantime, we should surely help as many people as we can.
Effective Altruism, a new social and philosophical movement is emerging to try to answer a fundamental question – “what is the most good that we can do?”
Effective altruism is about using evidence and reason to find ways to make the world as good a place as it can be. It tries to view all people – wherever they are in the world, even those not yet born – as being equally deserving of living happy, healthy, dignified, flourishing lives. Its proponents try to focus on the best ways of doing good. It’s just like regular altruism in that it seeks to do good for others. However, by focusing on effectiveness, it seeks to do the most good possible.
This manifests in different ways. Some people try to find the most effective charities to donate to, others try to work out which career you should choose if you want to have the biggest impact. Others think about the long-run future of humanity, reasoning that if there’s even a small chance that humans could wipe ourselves out (say, in a nuclear winter, or a deadly engineered disease escaping a laboratory), avoiding such an outcome would be a huge benefit.
It’s just like regular altruism in that it seeks to do good for others. However, by focusing on effectiveness, it seeks to do the most good possible.
Many also take a pledge to give a fixed portion of their income to effective charities – often 10 percent – because it increases the chance that they’ll actually donate, rather than putting it off for another day. In all these cases people are motivated by their sense of empathy but guided by scientific evidence and reason.
It may seem strange to think we might have an obligation to donate to one set of charities rather than others. After all, surely if someone wants to donate their money to a charity that focuses on people in their local community or on a cause that’s particularly important to them, they have that right. Of course, donation – unlike taxes – is an individual choice, not a legal obligation. But when faced with a choice of whether to help 100 people or just one, is it really a difficult decision?
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Is your workplace turning into a cult?

Is your workplace turning into a cult?
Opinion + AnalysisBusiness + LeadershipHealth + Wellbeing
BY Petrina Coventry The Ethics Centre 24 NOV 2015
If every culture has a little bit of cult in it, how do we know when there is risk of the line being crossed? There are a few signals worth keeping an eye on.
Good news cultures
Does everything seem a little bit too wonderful? Do you feel as though people are insisting that you accept how wonderful the organisation is? Good news culture can sometimes hide behind the guise of good PR – a glossy front, shiny happy people adorned in corporately branded t-shirts and caps.
If you sense that questioning, doubt, or dissent is discouraged or even punished for fear of undermining the morale or image of the organisation, a good news culture could be at play.
Dominant logic
Ever heard of groupthink? Cults and organisations alike can generate a uniform way of thinking and communicating featuring jargon and particular decision-making processes. If your organisation’s meetings and strategic documents are full of jargon, or alternative approaches from employees are rejected with statements like, “it’s not the way we do things here”, you might be crossing the line into cultish culture.
Elitism
Organisations that claim special, exalted status can generate polarising us-versus-them thinking. This in turn can pit the organisation against the wider community and divorce organisational values from those of the broader community. Many organisations claim to “only recruit the best”, but when “the best” happen to emulate and follow the rules or standards of the group it should be considered a warning sign.
‘Dear Leader’ syndrome
‘Dear Leaders’ can create elitism and intimacy among followers, allowing access only to those with unquestioning commitment to their belief system and ideology. Ask yourself who has access to the leader – are dissenting voices allowed, or only ‘yes’ men and women?
They often hold conflicting standards – the rules for followers do not apply to the leader.
When the polished charismatic face of an organisation has an internal following full of devotion to their ideas or ideology, it may be time to be concerned.
These leaders may claim new methods of wealth creation, life success or social influence. Their new solutions or ideology may appear able to solve serious and previously insurmountable problems.
They direct attention towards themselves while feigning humility. In doing so, they create dependency and obedience within an organisation by ensuring the wellbeing of the members is tied to their own wellbeing.
When the polished charismatic face of an organisation has an internal following full of devotion to their ideas or ideology, it may be time to be concerned. They can make it impossible to build a consistent ethical culture within the organisation.
Devotional blindness
Do your colleagues seem unusually committed to their ‘Dear Leader’, their ideology, role, status or wealth? Is worship or adoration being generated for the leader and close followers? Does the organisation seem to be venerated in an unusually fervent way? Devotion and adoration can override decisions people would otherwise make in their life. Blind subservience to the leader, group or ideology in cults can radically alter personal goals and commitments an individual had before joining.
Cults expect members to devote inordinate amounts of time to the group and group-related activities at the expense of self-identify or ties with family and friends. They forget their non-group identity and may fear reprisals if they consider leaving the group.
Ideology and exalted ends
When zealous attainment of what seems like an extraordinary goal seems prevalent, be concerned. Zeal for greater profit margins and work success can lead leaders and employees alike to rationalise unethical or ill-considered methods.
Zeal for greater profit margins and work success can lead leaders and employees alike to rationalise unethical or ill-considered methods.
Be sceptical of work cultures that drive debilitating schedules or tolerate sleep deprivation and employee burnout. Exaggerated ambitions or an exclusively achievement-oriented culture should also be viewed carefully. Do not tolerate leaders who justify the means only by whether they achieve stipulated goals.
Scapegoating and marginalisation
Most cults rely on intimidation to maintain their organisational identity. They use humiliation and blame to control their members, often through peer pressure and subtle forms of persuasion. When dissent or criticism is not permitted and individuals are marginalised or excluded from decision-making, you have problems.
Fortressing
Be concerned when transparency is admonished or there is widespread fear that rival people or groups are aiming to undermine the organisation. A simple measure of this is the overuse or abuse of confidentiality agreements. The ability for individuals to discuss their business should only be restricted with good reason. Paranoia and secrecy should not undermine professional transparency.
Does any of this sound familiar? You can find examples of any of these situations in organisations at any time. The real danger is when you find recurring clusters of the signals. If you do spot clusters, don’t despair – many organisational cultures have been redeemed by taking a few simple steps.
Click here to learn about the steps you can take to improve your business culture.
Are you currently dealing with an ethical dilemma? A conversation with an objective, independent person can really help. Call Ethi-call, our confidential ethics helpline, on 1800 672 303 for free anywhere in Australia.
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David Pocock’s rugby prowess and social activism is born of virtue

David Pocock’s rugby prowess and social activism is born of virtue
Opinion + AnalysisBusiness + LeadershipHealth + Wellbeing
BY Matthew Beard The Ethics Centre 30 OCT 2015
In the Wallabies’ semi-final match against Argentina, David Pocock played over 70 minutes with a broken nose. Although Adam Ashley-Cooper would walk away as man-of-the-match thanks to a hat-trick of tries, most commentators agree Pocock’s heroics had as much impact on the result as anything else.
Pocock played all 80 minutes, made 13 tackles, ran the ball eight times, broke two tackles and made four turnovers. Despite only playing four games in the World Cup, he leads the tournament for turnovers with 14.
Fox Sports News described him as “the world’s best player” whilst the Sydney Morning Herald labelled him “The single most important player to take the field come Sunday morning”.
None of this should come as much surprise – as a back rower, Pocock’s success is derived as much by will power, courage, and perseverance as it is by skill. And Pocock has it in spades. He explains:
“My parents were always clear with my brothers and I when we were growing up that you have to have the courage of your convictions and that when you commit to something you must fully commit.”
That quote didn’t come from a post-match interview but from one of Pocock’s blog posts following his arrest in December 2014. Unlike some other footballers, Pocock’s arrest wasn’t a boozy 3am affair. A spokesperson for the environment and public supporter of Julia Gillard’s Carbon Tax, he was arrested for a nonviolent protest against Whitehaven’s coal mine at Maules Creek.
Pocock spent around 10 hours chained to a farmer who was, in turn, chained to one of Whitehaven’s superdiggers.
This wasn’t much of a surprise to those following Pocock’s career. He has been outspoken on a range of issues for several years. He and his partner, Emma Palandri, refuse to marry until LGBTQIA+ couples in Australia can do the same. Although describing themselves as married, the pair have not signed the legal documents to verify it. “‘I don’t see the logic in excluding people from making loving commitments to each other,” Pocock explains.
It’s not the only time Pocock has stood up for LGBTQIA+ rights. In a match against the NSW Waratahs earlier this year he reported NSW lock Jacques Potgieter for repeatedly using a homophobic slur. Amidst some criticism (and praise) Pocock refused to yield – even as some speculated it would cost him the Wallabies captaincy.
Pocock has repeatedly put his head on the block for the causes he believes in.
Pocock’s on-field success cannot be readily distinguished from his off-field activism. In a sentiment widely attributed to Aristotle (but actually a summary of his views), “We are what we repeatedly do. Excellence, then, is not an act, but a habit.”
Courage – or fortitude as Thomas Aquinas called it – is the virtue that enables you to do what you believe to be right despite the difficulties involved. No matter the cost. Not a surprising trait in a man who fellow Wallaby Michael Hooper says “puts his head in some places that are pretty dangerous and gets the ball out”.
After Maules Creek the Australian Rugby Union issued Pocock with a formal warning. They wrote, “While we appreciate David has personal views on a range of matters, we’ve made it clear that we expect his priority to be ensuring he can fulfil his role as a high-performance athlete”.
It’s a tough ask for someone like Pocock to separate his politics from his rugby. Pocock’s on-field success cannot be readily distinguished from his off-field activism. In a sentiment widely attributed to Aristotle (but actually a summary of his views), “We are what we repeatedly do. Excellence, then, is not an act, but a habit”.
Pocock’s courage under fire, his perseverance and his commitment are habits. What makes him a high-performance athlete isn’t just his physical frame but his mental discipline and personal virtue.
We can’t switch virtues on and off when they suit us – we either have them or we don’t. When Pocock gets up to make a crucial tackle or to reach the breakdown a fraction earlier than his rivals to steal the ball he demonstrates the same commitment that saw him support LGBTQIA+ rights, defend the environment, speak about his eating disorder or discuss his faith publicly.
Pocock could no more remain silent off the field than he could hold back on it. His character disposes him to holding fast to what he believes is good. Doing otherwise would dull both his crucial sporting instincts and what makes him an upstanding human being.
You can’t praise Pocock’s on-field achievements whilst also condemning his off-field activism. They’re children of the same beast – his unwavering commitment.
Though there are no doubt those who disagree with Pocock’s views, you can’t praise his on-field achievements whilst also condemning his off-field activism. They’re children of the same beast – his unwavering commitment.
There is ongoing debate regarding whether or not professional athletes should serve as role models. The ability to play sport well doesn’t translate into the moral virtues required in a role model. As Charles Barkley famously remarked, “Just because I dunk a basketball doesn’t mean I should raise your kids.” If Pocock’s prominence both on and off the field are born of the same character traits, then his example allows us to see the role model debate in a new light.
Legendary NFL coach Vince Lombardi once remarked, “The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather, a lack of will”. Had he not died 18 years before David Pocock was born, you’d swear Lombardi was talking about him.
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There’s no good reason to keep women off the front lines

There’s no good reason to keep women off the front lines
Opinion + AnalysisBusiness + LeadershipRelationships
BY Nikki Coleman The Ethics Centre 14 OCT 2015
The US. military may finally be coming around on the question of women on the front lines.
In a confidential briefing on September 30, military leaders presented their recommendations on having women on the front lines to the House Armed Services Subcommittee on Military Personnel, and Defense Secretary Ashton Carter.
In the 1940s, the US military faced similar debates regarding black service personnel. Arguments regarding unit cohesion and operational capability were the most prominent against integration of white and black personnel. With the power of hindsight, we can see those arguments for what they were – scare tactics intended to keep the military segregated.
The same arguments have returned today. At the command of Secretary Panetta, the US Army underwent a two-year study to develop gender-neutral standards for specialist roles currently closed to women. The success of this standardised approach was demonstrated recently when two women graduated from the Army Ranger School.
There have been vocal critics of allowing women to attempt the Army Ranger School course. Some claim the standards were lowered for these women. This was denied by the Army at the Ranger School graduation ceremony. It was rebuked again by the Chief of Army Public Affairs who described the allegations as “pure fiction”.
These allegations are unlikely to settle down any time soon. A Congressman has requested service records of the women who graduated to investigate “serious allegations” of bias and the lowering of standards by Ranger School instructors.
This incident reveals the depth of scepticism regarding women’s ability to serve alongside men within some quarters. The standardised approach has dismissed the issue of operational capacity – the other arguments against female service are equally weak.
The potential for women to be captured and raped has been raised by opponents of women serving in combat units. This discussion ignores the sad reality – women in defence are much more likely to be sexually assaulted by their own troops than by the enemy. The 2013 Department of Defense report into sexual assault found that while women make up 14.5% of the US military, they make up 86% of sexual assault victims.
Women in defence are much more likely to be sexually assaulted by their own troops than by the enemy.
Of the 301 reports of sexual assault in combat zones in 2013 to the Department of Defence, only 12 were by foreign military personnel. The vast majority of sexual abuse victims in combat areas were abused by their own comrades, not the enemy.
Sexual abuse in the military has been a problem for decades. Why would it increase if we allowed women in combat? Rape of captured soldiers has also not been limited to women. Many men have also been sexually assaulted on capture. Sexual assault in this sphere is not about sexual desire or gratification – it’s about power and denigration of your enemy.
The second argument suggests women in combat units will affect unit cohesion. First, “the boys” won’t be able to be themselves. And second, if a woman is injured in battle men will be unable to focus on the mission and instead will be driven to protect their female colleagues.
The first argument raises a question about military culture. Why is behaviour considered inappropriate around women tolerated at all? The second argument is insulting to currently serving soldiers, whose professionalism and commitment to the mission is questioned.
To suggest soldiers would ignore the mission in favour of some other goal undervalues the extent of their military professionalism.
Soldiers overcome a range of powerful instincts in a firefight – including protecting their own lives. To suggest soldiers would ignore the mission in favour of some other goal undervalues the extent of their military professionalism.
There is also an elephant in the room. Women have been serving in combat roles for years – as pilots, on ships, as interpreters and in female engagement teams. For these women a decision regarding the position of women in combat is irrelevant – they are already on the front lines.
The Australian situation sits in stark contrast to that of the US. Gay and lesbian members have served openly for a decade, women have been fully integrated into combat units since 2013, and the Australian Defence Force now actively recruits transgender personnel.
Australia has been able to integrate women, gay, lesbian and transgender soldiers into combat units without affecting operational capability.
Hopefully the US Defense Secretary will follow the advice of his Chiefs of Staff and the leadership of the ADF. He should allow military personnel to serve in all roles in the military according to universal standards rather than chromosomes or genitalia.
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Hunger won’t end by donating food waste to charity

Hunger won’t end by donating food waste to charity
Opinion + AnalysisBusiness + LeadershipPolitics + Human Rights
BY Sophie Lamond The Ethics Centre 2 JUN 2015
There are 795 million hungry people on Earth. The world produces more food than its human population needs. Between the farm, the processing plant, the retailer and the home, the world discards one-third of all food intended for human consumption.
In Australia, we throw out the equivalent of one in every five bags of groceries we take home. Tens of thousands of us rely on charitable food relief.
Apart from consumers wasting money, producing food that goes to waste accounts for a massive loss of resources, such as energy, water and human labour. After disposal, food rotting in landfill releases potent greenhouse gases.
What did the French do?
At the end of the day, ‘dumpster divers’ scavenge food from supermarket bins. It happens all over the world. In France, supermarket owners were concerned dumpster divers might get sick from eating contaminated food and sue. So supermarkets started pouring bleach in their dumpsters to ward off the divers.
Parisian councillor Arash Derambarsh thought this was “scandalous and absurd”. He proposed large supermarkets donate all their excess stock to food rescue agencies.
Why won’t the French system work in Australia?
France’s law sounds great but there are some translation problems when applying it to the Australian context. France is rushing to regulate because they are several steps behind Australia when it comes to dealing with food waste.
All the major supermarkets in Australia have partnerships with food rescue agencies like Ozharvest, Secondbite, Fareshare and Foodbank as part of their corporate social responsibility strategies. These organisations redistribute surplus supermarket food to charities that feed those in need. Unlike their French counterparts and French supermarkets, Australian food rescue agencies are protected by Good Samaritan Laws, which afford them certain safeguards against litigation.
A spokesperson for the Australian Food and Grocery Council (AFGC) said, “There is enormous goodwill and partnership between industry and agencies to ensure that charities receive food products that are needed – not just what is left over.
“Any proposed legislative intervention will need to guard against any unintended outcome where food companies may be forced to send charities excess stock that is not required. This could place greater burden on charities which are currently subject to dumping charges.”
Elaine Montegriffo, CEO of food rescue agency Secondbite said, “If supermarkets are doing it of their own free will, rather than as a matter of compliance, it is far more likely to work out for the charity”.
Imagine a large shipment of mislabelled muesli bars arrives at a supermarket and can’t be sold. If Australia were to implement a similar law to France, the supermarket can choose to pass on the bars for animal feed or compost, or give them to a food rescue agency. But if the agency has already reached its logistical limit for transport and storage and can’t find a charity to take the bars, it still has to pay for that transport, storage and most likely the disposal of the bars.
Montegriffo would rather serious policy than a mandate on supermarkets. “I would like food waste and food security to sit in somebody’s portfolio,” she said.
The Australian way isn’t perfect
The Australian system might be ahead of France’s but it still has a long way to go. To see the full picture of food waste in the Australian supply chain we need to pull our head out of the back-of-store dumpsters. We need to encourage suppliers, processors and retailers to increase supply chain efficiencies.
Supermarkets often use the visual merchandising tactic of purposefully over-ordering to maintain an aesthetic of abundance. Shelves that look full are more appealing to shoppers, even though supermarkets can dump contracts with farmers on a whim.
With Coles and Woolworths accounting for a 70% share of the market, Australia has one of the most highly concentrated retail grocery sectors in the world. This is problematic for a number of reasons. These practices can lead to massive and unnecessary waste. The emotional, economic and environmental costs of binning the excess produce lies with farmers, not supermarkets.
Where to from here?
While 90 percent of Australia’s food charities report that they do not have enough food to meet the demand for their services, relying on waste to feed the hungry is not a sustainable solution. Our ultimate goal should be to eliminate food waste and food want.
We don’t need to follow France’s new regulatory measures, but we can learn a few things from their consumer education. In addition to its new laws for big supermarkets, France will soon roll out education programs on food waste for schools and businesses. Australia should take note. We can learn to eat in-season produce, no matter how it looks when it grows. Those wonky cucumbers and two legged carrots are just fine. We can shop smarter and buy the right amount of food, and we can re-learn kitchen skills so food and leftovers are used rather than thrown away.
Last week, Environment Minister Greg Hunt announced a multi-partisan dialogue to develop a National Food Waste 2025 Strategy. France’s consumer education is a good start, but let’s hope Hunt’s strategy addresses the full complexity of the problem. This includes improved monitoring of food waste, investment in infrastructure to process it outside landfill, competition laws to help diversify the grocery sector, support of alternative food distribution networks, and fairer relationships between farmers and supermarkets.
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The twin foundations of leadership

The twin foundations of leadership
Opinion + AnalysisBusiness + LeadershipRelationships
BY Simon Longstaff The Ethics Centre 14 APR 2014
For all of the talk about the importance of leadership, relatively few resources are applied to its support and development. Rather, the bulk of investment flows into building and maintaining the infrastructure of management and control.
The scale of this investment in regulation and surveillance is easy to underestimate. For example, government regulation is just the tip of an iceberg of which private sector compliance programs make up the larger part. As such, some of the most prolific rule-makers in the land sit at the nation’s board tables. Fearful of their own liability and hungry for certainty, company directors feed (and are fed on by) a narrowly conceived culture of compliance.
Of equal concern is the way in which organisations are led to disguise their real preferences by applying comforting (but misleading) labels to their programs. The fact that a management program has the word ‘leadership’ in its title does not make it a leadership program. Yet programs of this kind abound. This observation is not meant to suggest that there is no longer a need for strong management programs. In fact, the opposite is true. However, if organisations are ever to realise their full potential, the technical competence of managers needs to be reinforced by the art of leadership.
That we do not do so, in any extensive or meaningful way, is due to a number of factors not least of which is, as noted above, the fear of personal liability amongst people in positions of power and authority. In some respects, their fear is well-founded. Society has recoiled against an earlier period in history when people running public and private sector organisations seemed to be beyond the reach of accountability, no matter how terrible the consequences of failures in governance. Unfortunately, society’s response has been largely uni-directional; placing the majority of its eggs in the ‘regulation and surveillance’ basket. This has stimulated a vicious cycle in which those subject to these controls have replicated the approach, across the system as a whole.
However, there are two deeper issues to consider. First, it may be that society has lost faith in the power of good leadership to shape events for the better. That is, rather than rely on the qualities of people, society has thought to ‘engineer out’ their frailties by creating a system that is finely regulated so as to prevent any person from choosing to do what is wrong. Rather, if all comply with the technical demands of the system, it is assumed, ‘bad things’ will not happen.
While this kind of thinking is understandable, borrowing as it does from utopian/dystopian fantasies (depending on your world view) of risk-free and perfect certainty, it stands in contrast to what we know of reality. Furthermore, the model of the ‘finely regulated system’ contains within it the seeds of its own failure. Rather than eliminating risk, such a system increases systemic risk (risk to the system as a whole) by reducing the capacity of any single actor to make good decisions when the system is sub-optimal in its performance.
The best analogy that I can think of for this risk is that of putting a person into a full-body plaster cast as a way of ensuring that they maintain a straight and steady posture. To the casual observer, this will seem to be a model of stability. However, unseen within the bounds of the cast, the person’s body will be changing; muscles wasting away to nothing for want of use and bones losing their load-bearing capacity. The more perfect the performance of the plaster cast, the more the degradation within. Should the plaster cast fail, the body within will be doomed to collapse. Of course, everyone knows that this true, even those who design, build and maintain the plaster cast. Their response is to patch, reinforce and refine the plaster cast.
However, there may be a second factor that limits our investment in leadership. Apart from not trusting the variable human dimension to leadership, it may also be that we no longer really understand what leadership involves and requires. It is this issue that will be addressed in the remainder of this article.
The most potent enemy of ethical leadership is unthinking custom and practice.
Defining leadership
There are many definitions of leadership from which to choose. The one that I find most compelling forms part of the doctrine of the Australian Defence Force. The ADF defines leadership as, “The exercise of influence in order to bring about the willing consent of others in the ethical pursuit of missions”.
I like this definition for a couple of reasons. First, there is an emphasis on influence and consent. There is nothing here about the exercise of power or insistence upon compliance. Second, it is striking that the military conceive of leadership as an ethical practice. That is, they do not aim to treat the ethical dimension as something that is to be ‘bolted on’ to leadership, as an ‘extra’ (optional or otherwise). Rather, ethics is an integral (and integrated) part of leadership. The reason for this is not hard to discern.
There is a telling maxim in military affairs, “no plan survives first contact with the enemy.” The profession of arms intersects with a world of rapid change, unpredictability, and lethal consequences. If you do not manage risk, then the consequences are not merely some dent to the ‘bottom line’ but quite possibly death or injury. Such hard facts concentrate the mind. The military have learned that this is why leadership, as defined above, really matters. When all of the carefully constructed systems and structures have broken down, the only thing that may stand between success and failure will be those human factors embedded in the quality of leadership.
Of course, it must be noted that the world of the military is one of extraordinary contexts and demands, in many a world apart from ordinary world of civilian life. Yet, for all of the very real differences, we should not ignore a core lesson. Investing in ethical leadership is the most effective way to manage risk.
But what does such leadership involve? What does it require of those who would lead? And are there any core lessons for leaders? In my opinion, good leadership is built on twin foundations: strategic vision and moral courage.
Strategic vision
There are three elements to strategic vision:
- The ability simultaneously to ‘see’ a situation at multiple levels. There is the ‘satellite’ level that reveals the larger picture within which specific issues are located. There is the ‘submarine’ level that reveals how specific issues are affected by ‘undercurrents’ that shape the operating environment. Finally, a leader with strategic vision sees things in the moment, being entirely ‘present’ to those dealing with specific issues or an evolving situation. As one might recognise, it takes a particular ‘presence of mind’ to operate simultaneously at all three levels. Yet this is something that good leaders can be trained to do.
- The ability to employ a kind of empathetic ‘moral imagination’ that places a leader in the shoes of key participants including, supporters, allies and foes. The capacity to ‘read oneself’ into a situation, to see events as others might see them and to understand the implications of these perspectives, is of considerable advantage to leaders. An important function of a leader is to bring such insight to bear on a situation as to enable and encourage others to proceed down paths that would otherwise remain obscured or closed to them.
- Being able to simultaneously ‘see’ a situation at multiple levels and employ ‘moral imagination’ gives rise to a third ability: the ability to perceive (or sometimes to create) ‘inflection points’. Inflection points are best understood as presenting opportunities to redefine the conditions under which success might be achieved. Those who perceive or create inflection points are not bound by a fixed description of a particular situation. Instead, they are more likely to see apparently fixed points as variables that can be reconfigured to provide new opportunities. Put simply, strategic vision allows leaders to see new possibilities not apparent to others.
Moral courage
The other foundation for leadership, moral courage, is made necessary by the fact that many individuals and organisations prefer the comfort of the familiar, even if ‘the familiar’ is outmoded and dangerous. Those who would lead must be prepared to challenge patterns of unthinking custom and practice that typically define the environment in which they work.
In most cases, if you ask people to explain their conduct, the typical response will be that “everybody does it this way” or that it is “just the way we do things around here”. That is, people will be either unwilling or unable to link what they do to a clearly articulated and understood framework of purpose, values and principles. Usually this tendency will be relatively harmless in its effects. However, in some cases, unthinking custom and practice will expose an organisation to risk if not ruin. And when all of the damage is done and people are asked to explain why they engaged in such ruinous conduct they will say, truthfully, that they did not see the risk at the time. Instead, what they saw will have been a world viewed through a limited lens, the lens of ‘the familiar’.
It is against this background that one of the defining roles of a leader is to engage in and foster acts of ‘constructive subversion’.
Constructive subversion undermines unthinking custom and practice by questioning the basis for perceiving the world through the eyes of ‘the familiar’. Such acts of subversion are not destructive because the task of a good leader is to help each organisation to become more like the thing it says that it wants to be. That is, leaders are not supposed to impose upon an organisation a personal or idiosyncratic view of what it should be. Instead, their task is to serve a defining purpose within a governance framework with core values and principles at its heart.
To do any of this, not least to question the often long-established precedents of unthinking custom and practice is to invite the disapproval of those with an investment in the status quo. Whatever the organisational structure, there is likely to be a majority who protect ‘the familiar’ and who will resist those who seek to probe and expose its limitations. That is why leaders need to draw so heavily on a reserve of moral courage.
This is not to suggest that people should be reckless in their style of leadership. Good leaders are not required to throw themselves onto the ‘funeral pyre of integrity’ whenever the opportunity arises. Effective leaders understand that there is more to be achieved than a few beautiful sparks arising from the embers of their career. While there will be times when a stand must be made as a matter of principle, leaders will draw on their capacity for strategic vision by sensing, by seeing how and when to prosecute a particular course of action. Thus moral courage, like all virtues, requires a leader to discern the ‘golden mean’ that exists between the twin poles of rash and foolhardy action and the procrastination of the coward.
Becoming a leader
Earlier, I proposed a distinction between the techniques of management and the art of leadership. I noted that both capacities are valuable–even essential–arenas for human development, but suggested that our society does a poor job of investing in leadership. Instead, we seem to be inclined to ‘re-label’ management programs with the word ‘leadership,’ and pretend that the issue is being addressed.
A sure sign of a mislabeled program will be that it is structured around exercises that take place within a formal learning environment. Having spent over two decades working with and developing leaders, I am convinced that the art of leadership only emerges as a result of experiential learning. Learning of this kind tests and refines a person’s leadership capacity within a crucible of ‘embodied experience.’ Understood in these terms, authentic leadership programs work over an extended period of time, exposing their participants to a range of experiences that challenge them physically, intellectually, emotionally, and spiritually. Ideally, participants meet each challenge and, in doing so, come to recognise their own latent capacity to lead when called upon to do so. The process of self-validation that comes about within a well-structured program is essential. A notional leader can have all of the technical skills in the world yet lack the self-belief necessary to risk taking up a leadership challenge.
This article is not the place to outline the kind of ‘curriculum’ that is better suited to the task of developing effective leaders. However there is nothing especially mysterious about the process. Indeed, the only real mystery in developing and implementing programs that build effective leaders is that so few organisations invest adequately in the task. Instead, most organisations adopt the comforting myth that leaders can be made ‘on the cheap’ and in a matter of weeks, largely spent within a training room.
Becoming a leader, regardless of one’s formal role in an organisation, requires time and practice, ideally accompanied by a small, supportive group of others making the same journey. Along the way, good leaders pick up some essential skills, including an ethical literacy that can be used to explain and inspire across varied audiences.
To conclude
The most potent enemy of ethical leadership is unthinking custom and practice. It is this that leads otherwise good persons to participate in or to tolerate evil deeds. Thus, an ethical leader will always seek to look beyond conventional morality in favour of the application of an ethical framework that is based on personal reflection and is authentically held as the basis for living a responsible life.
Ethical leaders are actively engaged in acts of ‘constructive subversion,’ subverting unthinking custom and practice in order to build organisations and communities that increasingly become more like the thing that they say they ought to be as flourishing human communities.
To lead in these terms is to court unpopularity, often from all quarters where the majority will prefer simple certainties and a quiet life based around comfortable habits. Thus the need for leaders to possess an unusually high degree of moral courage, as must be drawn on when even the leader may be plagued by genuine doubt about how best to proceed.
Under this model, the requirement for leaders is essentially personal in character:
- a well-formed (and informed) conscience
- a well-formed (and informed) intuition (there should be no tolerance of those who are too lazy or complacent to work towards the refinement of their intuition)
- the virtues of moral courage and humility
- respect for the intrinsic dignity of others
- a capacity for discernment (including strategic vision and empathy)
These are the attributes that inspire others to follow, willingly–even to a point of personal sacrifice. This is what lies at the heart of ethical leadership: the art of doing..
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