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David LongCanterbury Christ Church University

IPW Helsinki Metropolia Business School, Finland May 13 – 17 2013

Integrity: The individual in the

organisation

Individual Integrity

‘an adherence to moral principles or values... a consistency in one’s beliefs or action that endures,

despite inducement or temptation to deviate from them.’

(Crane and Matten 2007)

Integrity: some philosophical perspectives

Confucian viewConfucian view: the virtue of : the virtue of jenjen – more than – more than compliance to a set of rulescompliance to a set of rules

Buddhist-Christian viewBuddhist-Christian view – focus on what is – focus on what is eternally significant, rather than on the ‘self’eternally significant, rather than on the ‘self’

Virtues approach Virtues approach – doing the right thing.– doing the right thing.

33Modified from Koehn D. (2005) JBE 58; 125-136

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Integrity as a Business Asset

• Integrity is not well defined

• Compliance with moral norms and expectations?

• Business view that integrity has market value

• Avoiding short-term thinking?

• Maintaining healthy relations with all stakeholders

• Selling products and services that are genuinely valuable?

• Having prudence to avoid unwise courses of action

• Respect for diversity.

Koehn D. (2005) JBE 58; 125-136

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The Importance of Integrity

• Rules do not necessarily encourage ethical behaviour

• No single right answer to many ethical dilemmas• A good person will take the right action • The importance of Professionalism• Sense of moral responsibility is a pre-requisite

for moral action (Trevino & Nelson 2011).

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Aristotle’s Virtues

– Courage

– Self-control

– Generosity

– Magnificence

– High-Mindedness

– Gentleness

– Friendliness

– Truthfulness

– Wittiness

– Modesty.

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Views of Joseph Desjardins

Ethical dilemmas are fundamentally ambiguous Human character has been neglected in favour of the application

of general principles to specific situations The ability to apply lessons learned from the past to new

situations in the present The application of reasoning of situations, rather than forced use

of preconceived categorisation A ‘good ‘person (virtuous) will have practical wisdom to do the

right thing (Phronesis).

(Virtues & Business Ethics, Joseph Desjardins, cited in Chryssides & Kaler 1993)

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Compliance versus Integrity

Compliance: Rule-based Legal approach Prevention of misconduct Sanctions for violations

Integrity: Values-based Encourage commitment Guiding principles Self-governance approach

(Lawtion et al, 2013)

Obedient

Virtuous

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Characteristics of a ‘Professional’ Person

• Knowledgeable

• Proficient

• Masterly

• Autonomous

• ‘Business-like’

• Emotionally detached

• Honourable

• Trustworthy

• Ethical?

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Common Features of Professional Groups

• Educational path– University degree?

• Training and development – Continuing Professional Development (CPD)– Codes of practice

• Membership of a Learned Society or Institute– Specific professional qualifications competence– Licensed practitioners– Maintaining proper standards

• Research and development in particular field• Acknowledged reputation in society?

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Role of Professional Societies

• Accredit individual professional competence and integrity

• Advise governments and society of matters related to the profession

• Initiate debate on issues of importance

• Set standards for:– Work– Education

• Provide opportunities for networking and sharing problems and solutions

• Enable specialist groups to develop

• Most importantly, set standards for professional conduct ... Compliance?

Doing Well v Doing Good

Integrity in the workplace involves acceptance of ‘socialised power’

A professional working with integrity will :

Believe in the importance of centralised authority

Have a keen sense of justice and rewards hard work

Feel responsible for developing the organisation

Use power for common good

Create a good working climate

Help others succeed and commits them towards organisational goals.

(Curtis 2003)

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Towards an Ethical Agenda:What British people think needs changing

Source: IBE 2013

Challenges to Integrity in Business

Constantly changing business environment

Pressures on costs and revenues

Intensive competition – traditional markets

under attack

Markets – local, national and global

Customers becoming more demanding.

Towards an Ethical Outcome

Gather the facts Define ethical issues Identify affected parties Identify consequences Identify obligations Consider your character and integrity Think creatively about potential actions Check your gut feeling

(Trevino and Nelson 2007)(Trevino and Nelson 2007)

Any questions?