resultsthroughintegrity

WHY WE NEED TO HAVE A DIALOG ABOUT INTEGRITY

The integrity dialog, as any conversation, is a form of life, lived through words, that enables anyone who participates to move to a new understanding of themselves and their community.

Integrity is the essence of everything successful. The dialog has many possibilities.

The first possibility: We stop talking to ourselves.

As long as we assume others are like us, have the same background and share the same values, we talk to them as though we were talking to someone like us.

In effect we end up talking to ourselves.

SYNERGY IS AN OUTCOME OF INTEGRITY

It can’t be but it is!

Think about it, the whole is greater than the sum of the parts.

This is like saying 2+2 is not four but more.

Synergy means that things work together.

Words can’t explain the essence of this. We know it and want it but what and how do we get it?  

For a long time, the known world had no thought of synergy. The second law of thermodynamics dominated. It stated that everything will increase in entropy.

In other words, disintegration is the way of the world and chaos is destiny.  

And since we are of the world, well then ….the way and end are clear.

INTEGRITY DRIVEN PERFORMANCE

Does integrity drive performance? Apparently it does.

Novartis, a leading healthcare company, has adopted a philosophy that places integrity at the center of their strategy for success.

“Leading Companies, see integrity not as obstacle to competitiveness but as a driver of differentiation.”
Dan Ostergaard, Head of Corporate integrity, Novartis 

PricewaterhouseCoopers developed an integrity driven performance model that centers on governance, transparency and accountability reform. 

“This strategy suggests that business integrity, ethics and values do not detract from performance but, in fact, add to business performance when appropriately integrated throughout an organization.” PricewaterhouseCoopers.

Both approaches demonstrate practical ways to realize results through integrity.   

WORKPLACE MISCONDUCT

Albert Camus said that integrity has no need of rules.

KPMG in their 2008-09 integrity survey conclude that there is a real need for integrity in the workplace.

The survey reports that 3700 out of 5000 employees say they have seen or know of wrong doing or misconduct in the workplace.

 

THE ROLE OF ETHICS AND INTEGRITY IN ORGANIZATIONS

When employees act unethically and/or without integrity, customers lose trust and confidence in organizational products and services.

When leaders act unethically and/or without integrity, employees lose trust and confidence in organizational processes, systems and products.

Both directly impact the bottom line and the return on investment. 

What is the correlation between return on investment and unethical behavior and/or a lack of integrity?

Organizations are built on the principle that the whole is greater than the sum of the parts.

Working together creates results and outcomes for the whole that outweigh the results and outcomes of everyone working for themselves.

The secret to success is not the principle but the way synergy is created. 

WHAT IS INTEGRITY IN PRACTICE?

 “Integrity is the cornerstone, if not the bedrock, upon which all financial markets are based.”

(Hank Paulson, Chairman and CEO, Goldman Sachs Group June 2002)

 Whilst we have described a number of values and vices, this list is not exhaustive and should not imply that integrity can be learned by heart like the “The Ten Commandments”.

We do not propose that it is right that people should merely read a code of ethics or a list of values and then sign a declaration to that effect.

 In the early 1970s, Harvard Professor Lawrence Kohlberg proposed a model of Moral Development which demonstrated that people shaped their sense of morality through the following stages9:

 1. “Obedience and Punishment” – We are children and we behave acceptably because we are told what to do by an authority figure such as a parent or teacher. This obedience is enforced by the threat or application of punishment.

 2. “Individualism, Instrumentalism and Exchange” – This is when we recognize that it is in our best interests to be moral.

 3. “Good boy/girl” – We do the right thing because it will gain the approval of others.

 4. “Law and order” – We abide by the law and have a sense of duty.

5. “Social contract” – We have a strong sense of social responsibility and the welfare of others.

 6. “Principled Conscience” – We accept universal principles of morality and the demands of individual conscience.

 

AN ETHICAL FOUNDATION FOR FINANCIAL SERVICES

Integrity and fairness thus emerge as core business principles. We contend that firms and individuals must always place these principles above profit if they are to be ethical.

 If this statement seems challenging, then simply consider in what situations you are prepared to compromise these principles?

 Are you happy to share these instances with your customers, employees and investors?

 

The Integrity Covenant

Are you working through things or are things working through you?

It is easy to perform when everything is going well. Rules tell us what is right and wrong.  

Rules require duty and obedience. These are duly rewarded when the whole is progressing as it should in an orderly fashion. Life is predictable. It is all good.

But everything doesn’t always go well. Rules no longer work.

Duty and obedience are rewarded with injustice. Chaos and confusion rule.  Life is no longer predictable. It is not so good.   

What to do?

Winston Churchill offered this advice

"Destiny is not a matter of chance, it is a matter of choice;
it is not a thing to be waited for, it is a thing to be achieved."

Fiduciary Duty: Simple Ethics Concept for Government Officials:

The English word "Fiduciary" comes from the Latin fides (faith) and fiducia (trust). (Wikipedia).

A fiduciary has engaged in a relationship with his/her client that includes a trust and obligation (duty) to act only in that client’s best interests – without gain or benefit to the fiduciary.

Under the US Governmental structure: We, the citizens of the USA, elect our government officials to act as fiduciaries on our behalf. This democratic election process is the ethical grounding for giving our leaders the power and authority to run our country. 

By virtue of being elected – and hence having our trust placed in him/her, he/she is obligated to use an ethic of duty and care on our behalf in all his/her official actions. Period.

Integrity as a Business Strategy

He was cordial, but distant as he welcomed me into his executive office.

“I can give you five minutes. What, in your opinion, is the relationship between integrity and performance?” he said with a smile.

“Most people only think of integrity as a personal characteristic,” I answered, “but integrity is a critical element of organizational systems, processes and structures. Integrity is defined as wholeness, consistency and objectivity. In simple terms, it is about doing the right thing, doing the next right thing, and doing things right. Performance is a logical consequence and sustainability is the outcome.”

 “Interesting,” he replied, “What is the role of integrity in business?”     

“Simply put,” I declared, “You either have integrity or you don’t. If you have it, you get it. If you don’t have it, it gets you.”

“What do you mean?” he inquired.