Embedding Ethical Values

Corporate Governance

Embedding Ethical Values

  • Embedding Ethical Values How a structured approach to promoting ethical culture is crucial to ensure that the right culture permeates to the rest of the organisation.
  • Date: Jun 27, 2019
  • Category: Corporate Governance
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"The IBE Business Ethics Framework illustrates how a structured approach to promoting ethical culture can ensure that the right culture permeates to the rest of the organisation. This includes having a Code of Ethics which is adequately supported by 4 pillars in the organisation: communication & engagement, training & reinforcement, leadership and risk assessment.

While it is important to note that there is no one-size-fits-all approach and business leaders need to find the style and tone that is best for their organisation, explicit ethical values and a structured approach can assist those in leadership positions to manage and diffuse any tensions that might arise.


Why a structured approach to promoting ethical culture matters

The process of building an ethical business culture can be described as a journey: the calibre and style of leadership, along with the size and geographical spread of the organisation, will influence the direction and pace of travel. At the same time, the values and expectations of a company’s stakeholders – including employees, customers, suppliers, shareholders and society as a whole – will influence the priorities of business leaders and may put both positive and negative pressure on their commitment to ethics. Explicit ethical values and a structured approach to the promotion of an ethical culture can, however, assist those in leadership positions to manage and diffuse any tensions that might arise.

As there is no one-size-fits-all approach and the business ethics journey will be different for every company, business leaders need to find the style and tone that is best for communicating and embedding the ethics message within their organisation. However, it is possible to identify a framework that can support and provide a general structure to articulate a leader’s commitment to ethics in business practice.

This framework was developed by the Institute of Business Ethics (IBE) and taken from their report titled
Setting the Tone: A New Zealand perspective on ethical business leadership”.

Published by

Institute of Business Ethics (IBE)

  • Tags : Corporate governance, business ethics

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