Imagine being a Financial Services Provider (broker) selling an insurance product like, say, Loss of Employment to a pensioner; a Retailer peddling the equivalent of a tomato box covered in Crazy Store fabric as a Chaise Lounge sofa; or a lender overextending clients to the point where the credit offering extended borders on reckless lending. Now imagine, if you will, that despite these basic moral blunders, the CEO’s of these organization’s profess to aspire to a Code of Conduct equivalent to the ten commandments Moses carried down Mount Sanai. “Thou shalt not…behave with impunity despite your obvious frailties?”
I have seen and experienced enough ethical parodies to provide the Jigsaw killer ample victims, so I do not for one minute believe any statement that a company and its directors, abide by the highest ethical standards, and will be granted a free pass by St. John. Those executive share schemes have a formidable way of altering the direction of a person’s moral compass so the ferryman may caste those aspirations overboard before getting to the other of the river Styx with his Exectuvie Committee.
The culture of an organization is set by the tone at the top, and if a company’s leadership is morally bankrupt, then you really shouldn’t expect anything less from their employees. A Code of Ethics should be deeply entrenched in the values of the business and reflected in how it positions itself in the environment in which it operates. Giving back or paying it forward is no longer enough – it’s a tax write off and gratis promotion. It can no longer be a stand-alone document which exists by virtue of being a requirement of a mandatory governance framework. So, invest in a Code of Ethics, but make it a living document that leaves an indelible corporate footprint on the path your organization walks amongst stakeholders.
Next time we look at the fascinating world of Risk Management and the significant impact it can have on your business if performed with the necessary introspection and honesty. Until then, stay true to yourself.