Ethics, Morality and Integrity in business

A recommendation to watch a TV show called ‘House MD’ ended up in simply reinforcing my belief that most TV is not worthy of our attention.  However, I am being a little harsh because the program did get me thinking about an extremely important topic.

In Sunday’s episode (I am told it is Season 7, Episode 6!) The leading actor plays a doctor showing absolutely no remorse in ignoring all decent moral and ethical codes one would usually expect of a doctor. In fact not only does he lie to his colleagues, he even arranges for his patient’s home to be broken into, falsely labels blood samples and a host of other abuses, all in the name of ‘doing what is best for his patient’ ie saving his life.   

It is human nature to lie and cheat to get what we want, in fact we all do to a greater or lesser extent.  The question is how far is it acceptable to go?  In most cases businesses have detection methods and before long the ‘bad’ are caught and disciplined according to the local legal, ethical and moral codes of the business.  But these codes vary greatly. What is acceptable in one may be far from acceptable in another.  Add to this the cultural and geographic borders from around the globe and you can see the real dilemma facing business leaders today.

If it were only a matter of integrity, then this would pose less of a problem because integrity is mostly about ‘being true to oneself’.  Or as I've been recently told by the CEO of a well known international business ‘one way to measure integrity is to imagine that if what you said and did was captured on video, would you feel comfortable with it being shown to a wider audience?‘  

Unfortunately, in business, one can have integrity while at the same time acting immorally.  Imagine, for example that your business is conducted in a society where bribes or ‘incentives’ are totally acceptable, or the use of child labor is an integrated part of the economic structure.  Although I have picked two extreme cases, in these situations people can retain their integrity while working within the ethical boundaries of their culture.  Therefore a thorough understanding of global moral and ethical codes is becoming essential in order to conduct international business in an acceptable way, but this is far from easy, especially in the usually much more subtle cases.

However, religious politicians have a neat copout that most business people are denied.  They can take what might be seen as unfair or even unethical standpoint without the need for any explanation or justification. For example, it is commonly known that Barack Obama is opposed to same sex marriage and he is able to support this position in his role as ‘President of the free world’ by simply stating that it is his religious viewpoint. End of discussion.

As globalization increases, ironically it may well be international businesses that cover the moral high ground.  My experience of ensuring sustainable business tells me that it is to a large extent about building long term trust and friendships; in being fair to one’s suppliers and honest with ones customers and employees.  But perhaps I am too naive?

Have a good week,

Harley

Comments

This country has come to feel the same when Congress is in session as when the baby gets hold of a hammer.

In my view, "Ethics, Morality and Integrity in Business" is a topic that ought to receive a lot more attention and should be at the heart of our debate about the world we (want to) live in. Unfortunately, international businesses do not always appear to cover the high moral ground, far from it. Their top managers do not seem to have a good sense for the limits beyond which they should not venture, from a moral point of view. The system in which they live does not seem to reward them for exercising self-restraint. No bonus will ever be high enough...

Isn't there a very simple test for what is moral and what is not? Do not do to others what you would not like them to do to you! The understanding of this adage may well be subject to historical, geographical, cultural or social variations. But it requires, first and foremost, not that one looks at oneself in the mirror, but at others and at the impact of one's actions on others. In more philosophical terms: while epicureanism is ethically founded, hedonism is not. The latter seems, however, to be the dominant "philosophy" of the moment.

As western (or Western European) business people we do expect indeed to be able to build long term relationships based on values as fairness, honesty etc. and decide based on (amongst other) these criteria who to commit to on a long timeframe.
However when doing negotiations with Chinese business people you see that they do not have the same ethical values or the same view of a "partnership".
So in any case if you move out of your own cultural circle, make sure that you are informed on the local ethical values, culture etc. It will give you an advantage to in any negotiation or discussion.

I certainly like how the CEO is putting it. I used to call it the "mirror trial" or imagining you standing in front of yourself and how you would react to what you're saying or doing. It is unfortunately flawed as it assumes you already have quite a level of integrity and an unusual ability to act as two persons at one point in time, a dangerous path.

I don't believe hoping for some ethics and integrity is being naïve. As for many things, I like to call it pragmatic idealism and I do believe hoping for an honest behaviour, response or the best way to truly engage yourself into a professional or personal relationship and even detect lies, cheats and other bad deeds with more ease.

To conclude on House MD, one certainly can't describe his behaviours as ethical. Still, there are elements in his approach that are worth some consideration:
- while being too easily described as an asocial person, he actually interacts a lot with others and get most of the hints that will lead him to solutions through these diverse interactions, most of them not being related to medicine
- through various rituals, he does take the time to step back and think, something I believe should be done more often in businesses
- he does expect his team to challenge him and come with creative approaches to diagnosing or solving a problem
- one of his key points is quite in line with what is said in this post: people are not true to themselves and others, something that could be referred to as quite a lack of ethics and integrity (sure, he's not an example of that himself)

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