Seductive Charm and Integrity

A culture of integrity goes a long way to ensuring strong company performance for long term sustainability. Many organisations rise to the top, only to collapse. Could this be due to a lack of corporate integrity, and may this be blamed on corrupted culture and lack of integrity at the top?  

A culture of integrity is not doing something simply because you're in the public eye or because it makes you look good. Integrity means doing the right thing even when no one is looking. It entails acting ethically and honestly in all situations, including those that may result in poor financial or organisational consequence.

Uncertainty and change, such as the current COVID-19 pandemic, may create the perfect storm for a corrupted culture. Leaders endure pressure from investors, and with many driven by ego there may be the need to inflate short-term success, embellish the truth and seduce people with unsustainable performance which lures the unsuspecting into investment or exploited employment.  Individuals want to belong, to feel special, they want to be part of an exclusive group, and for that, they are willing to overlook the red flags.

What are the red flags?  Accounting fraud is often the first sign. What may start out as good intensions, before long sees company directors and CEO’s committing fraud to bankrupt companies to avoid tax, litigation, or other uncomfortable market situations.  “If it's legal, it's ethical" you may hear this from leaders hiding behind unethical decisions. This statement is troublesome for an organisation that values integrity. Acts that are considered immoral, unjust, improper, or outright selfish by an organisation or its leaders are not excused by legality.

As an investor, employee, or consumer, how do you measure corporate integrity? You may measure an organisations corporate social responsibility practices, commitment to community, or impact on society.  However, the only way to truly measure corporate integrity may be to dig deeper.  Ask hard questions, ask for proof, do your own research, and investigate if organisations put what they say into action. When investing or seeking job opportunities I recommend you investigate the ethical behaviours and decision-making of the people at the top and those that work in the organisation. Research the business morals, corporate governance practices and investigate staff attrition. Gain knowledge and understanding of the organisation to ensure you have an accurate overview of the level of corporate integrity. This holistic approach may paint an accurate snapshot of what is actually happening instead of the narrative organisations spin in marketing, in recruitment interviews and in investment pitches which often is not a true representation of what is actually going on.

Integrity matters and it has an impact on organisational culture and value in the long term. Organisations who promote an integrity culture acknowledge their own strengths, weaknesses, and ability boundaries. These same organisations may experience a culture where their investors, employees and customers model moral behaviour. They act truthfully, respecting and replicating the same highly ethical practices organisational leaders live every day.