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  An Ethical Organization Requires Leadership and Commitment
  Plus Integrity and Transparency

   by Daniel Swartzman, J.D., M.P.H.
   Assoc. Professor, UIC School of Public Health

   One of the things that physicists found out centuries ago is that any organized system will, over time, move towards
   disorganization. This tendency is called "entropy". 

So, too, with our social constructs.  In this series of articles on ethics, we have argued that having an ethical organization is not just something that happens, but it is something that the leadership of the organization must build.  Also, the ethical culture that you have constructed will, without a constant infusion of energy, decay over time; thus, entropy.

You will, therefore, have to be a constant source of new energy that is embedded into the ethical culture so that it can continue to thrive.  It will remain only as strong as your leadership of it is.  If your constancy or commitment were to waiver, probably because you get distracted by all of the other pressing concerns of your business, the strength of the moral culture will suffer.

Therefore, you will need to make a commitment to this process and its success, and it would be wise to acknowledge the difficulty of that from the very beginning.  The goal of your program is to align your organization’s stated values with its actions.  As you review your decisions, and as you receive feedback from the “report cards” we talked about earlier, you will be able to gauge how much energy to infuse into the system is “enough.”  That isn’t easy.  But, if you are like the rest of us engaged in this struggle, you will find that it gets easier over time.

In addition to making choices, leaders earn their following by assuring adequate communications.  And this is critically important in building and sustaining an ethical organization.  Look back at the idea of a Values Identification Audit, and you will see that it is created out of communication among the leaders and the other stakeholders of the organization.  Fighting erosion and maintaining strength will be the result of an on-going dialogue among the interested parties.  And when the organization is not perfect, the leader will need to admit these failings, just as he or she will need to reward the successes along the way.

An ethical organization is maintained by integrity.  Integrity comes from a Latin word which means “wholeness.”  An organization built on integrity is one that has all of its pieces, that is not missing anything, that is morally complete.  (You can see how this works if you think about what “disintegrate” means - to break apart.)  Part of the integrity of an ethical organization arises from its culture, part from the history of its ethical decision-making, and part from the commitment of its leadership.

As discussed in an earlier ethics article, a commitment to ethics will not be a great investment strategy, but it will turn out to be the right thing to do.  It is worth remembering that a lack of a clear return will make the temptation towards serious compromise that much more enticing.  You need to remain focused. Your personal integrity will become bound up in what you are trying to accomplish within your organization.  If you succeed, not only will you reap the benefits we have discussed, but you will be respected and maybe even admired.  Not a bad reward for doing the right thing!

In addition to a commitment to integrity, you will also have to commit to transparency.  It is important to note that public relations experts usually recommend that a leader caught up in a potential scandal should get all of the information out at the beginning, and be as transparent as possible.  Time after time, the real problem arises less from the initial transgression and more from the attempt to cover it up.

So, transparency is highly functional.  But beyond that, ethical organizations will end up demanding transparency of their leaders and members.  It will become an operating assumption.  An early mentor of mine always said, “Make every decision as if it were going to be covered on the front page of the morning newspaper.”  If your organization professes to a moral conscience, it will be next to impossible to not openly discuss the tough choices and their ramifications when you make them.  The good news is that that commitment to transparency will serve to strengthen the culture that demands it.  And there is quite a reward for exercising your discretion as if you lived in a fish bowl - you get an extraordinary level of peace of mind, knowing that all you have to do is tell the truth when asked.

Can every organization be ethical?  Yes, but only to the extent that the leadership of that organization is willing to make the moral choices that occur in the building and the maintaining of an ethical culture.  The tendency to avoid choices is quite widespread.  Every day, we see stories of people trying to avoid accountability.  They send tough choices to a committee, or endlessly study problems.  They delay and delay difficult decisions, not because they are thinking through their complexity, but because they simply don’t want to make the necessary choice.  But when choices are presented, only choices will suffice, and you will become the leader of a successful and ethical organization to the extent that you accept that truism.

What are the next steps in creating an ethical organization?  As mentioned previously, the hardest choice is the choice to choose, so that is where this series of articles ends, but also where your tasks begin.  Will you commit to a Values Identification Audit?  Will you establish an organization that is committed to transparency and dialog?  Will you ask for evaluations of your organization’s progress from all of its stakeholders?  And will you begin the process of openly communicating your activities and the results that you see?

If yes, then you are probably already on your way. 

© Daniel Swartzman 2010

  
  

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