Lets Talk Ethics

Reading The Four Pillars of Governance Best Practice from the Institute of Directors, it was great to see a chapter devoted to ethics. 

It is increasingly a major factor in the sustainability of any business and something that needs to be taken seriously. It doesn’t matter how big your organisation is, if it forgets its values and ethics, there will be negative consequences.

To quote The Four Pillars…

“Unethical behaviours ultimately damages the companies and their personnel. Lost customers, employees and sales, and the loss of a hard won reputation can take years to rebuild. Some companies never recover. 

Conversely, running a company with consistent integrity and high ethical values is simply good business. Such companies attract the best people, the most sought after customer and supplier relationships and investment opportunities. Goodwill, consistent good reputation and attraction of potential staff are all outcomes of ethical behaviour. An ethical culture can also contribute to improving employee engagement and commitment.”

Ethical behaviour is everyone’s responsibility but it has to be led from the top. If directors, owners or CEO’s cut corners or drop their standards, then other staff will follow suit. 

In the real world, it may not always be black and white. With some issues, ethics may appear to be subjective or it may not be obvious that a course of action could be seen as unethical. It’s easy to start with the question “what is the right thing to do?” but again it’s not always clear cut. 

Big companies with professional boards will often have an ethics committee. A team of directors who set the criteria and standards for ethical behaviour in the company. This is not just a very grand approach, it does set the scene displaying that it’s an issue that is taken seriously and is being addressed at the highest level. Of course, even with such committees in place, actions speak louder than words.

But what of the SME? 

Most businesses in New Zealand simply aren’t going to have an ethics committee at a governance level. Guidelines, policies, criteria etc are not going to be documented and there won’t be any sort of audit. 

As always, it comes down to you – the busy business owner, CEO or GM. You have to model the behaviours and hold others to account. You are responsible for ensuring that your business is seen as ethical and values-led. Just another thing in your never completed job description.

In most situations, most people will automatically do the right thing. It won’t even be contestable.

Where you’re unsure, or it’s not obvious then the best option is to ask. Explicitly test your thinking on the ethical issue. Peers, staff and especially a trusted external advisor are all great for sense checking. Don’t shy away from these conversations because your reputation is too important to gamble with.

And if in doubt, seek out a sounding board.

Yes…

I’ve just secured a position working for Elections for a few days in October, plus of course the big day itself.

This might only be a very short term gig but I’m stoked for a couple of reasons:

  1. I love a role with a purpose and I’m a huge supporter of democracy. We can all argue about the political side of things but the concept of by the people for the people is solid. Nothing is perfect but the right to vote for all is an important part of a vibrant community.
  1. Despite the positive words we see online, receiving many rejections for roles is tough. Those of us looking for new challenges need some “pick me ups” and this has certainly brightened my day.

Another opportunity to learn some new stuff, meet new people and do something worthwhile….. Yes I’m a happy lad.

So you’ve thinking, what’s the big deal?

It’s refreshing to have more lateral thinking time. 

Until I left, I didn’t fully realise the cost of three years in a role that was very inwards focussed. I knew I missed the strategy and external networking but I underestimated my need to ponder “random” ideas.

Clifton Strengthfinders identified that strategic, ideation and intellection are in my top five strengths, with the Tabletop Working Genius showing that invention and wonder are my ‘go to’ styles.

I enjoy greeting ideas and solutions. I thrive on connecting the dots – and if there aren’t dots, I’ll simply imagine them, Connections and ideas are everywhere

You often remind me of the Einstein quote “you can’t solve a problem with the thinking that created it”.  This is sort of your vibe.  You bust open the thinking that created it by clearly defining the (often hidden) root cause and innovative, do-able solution ideas. 

So you’re thinking, what’s the big deal?

We talk about collaboration, relationships and partnerships. Mainly I hear this is in the for purpose sector but the reality is, this thinking can benefit every organisation, in every sector.

We talk and we wish, but we don’t seem to be very good at the doing.

Often people say that they’re keen and will jump in when the opportunity arrives. This is just an excuse – because the opportunities are there. In fact, there are many opportunities if only you looked.

Patch protection, a lack of resources or fear. These are the real reasons we don’t do anything. We need to have some honest conversations about these issues and find a way through. Because there is a way, there is always a way .….

It just needs us to do some thinking

Sometimes looking back helps

When you’re looking for your next employment challenge, it can be very difficult – especially in the current climate.

When you’re head down striving for that success, it can be a matter of focusing on one issue after another.

Today I was reminded how positive it can be to look back and contemplate your successes or how far we have come.

I was having a wee clean up of old papers and found a 360 performance appraisal from the early 2000s when I was at MidCentral Health. Seeing the comments from the team, my peers and the manager made me stop and reflect a bit. Not only did I achieve the outcomes required in my role but I made a real difference to so many there. Being able to support others to develop and achieve is a real buzz. A lot of us aren’t good at reminding ourselves what we’ve done really well so reviewing things like this is a great source of positivity.

To continue this theme, I also reflected on the business awards work I did with CSC Buying Group. The year we won several awards was fantastic, a great reward for all of the mahi put in by a small team wanting to ‘make richer communities’. The year before when we first entered the Waipa Business Awards probably gave me at least as much satisfaction though. We didn’t win anything, and I had so much to learn about the awards environment. What was fantastic though was documenting how far we had come. A year of hard struggle had seen us not only turn things around, but also lay a platform that would support sustained growth and profitability for many years. The time spent writing about what we had done was so energizing. We didn’t get an award that year but that entry felt like huge win.

Never be scared to look back. History can fuel us for the road ahead.

the Minister of Finance the team gave me when I left MidCentral

Your purchasing can change the world

Procurement isn’t normally the first thing that springs to mind when we talk about changing the world.

Maybe it should be.

Every time your organisation buys something, someone makes a choice about where that money goes.

Normally we think about price, quality, specifications, delivery and service.

Quite rightly too.

But why stop there?

Imagine a range of suppliers that can all do the job – with marginal difference in price, quality etc. One employs people from a specific community that you want to support. Another may actively support local organisations, a third perhaps has significantly better environmental practices while the last one is a web based service located in Europe.

Suddenly the purchasing decision becomes more interesting.

This is why I always recommend taking a strategic procurement approach rather than just making buying decisions.

The question becomes:

How can the money we already spend achieve more than one outcome?

You don’t necessarily need a bigger CSR budget. You don’t need another committee. You may not need to spend another dollar. You simply need to think differently about the dollars already leaving the organisation.

And there’s another benefit.

Think about the people in your organisation who make purchasing decisions every day.

Instead of simply “ordering stuff”, they suddenly have an opportunity to directly contribute to your organisation’s purpose and to help make a better community.

That turns procurement into something much more powerful.

Every organisation has a supply chain and this means that virtually every organisation already has a resource it can use to create positive change.

The question is whether we choose to use it.

What is authenticity

We see this word so often now, but what does it really mean?

Authenticity is when your actions are congruent with your beliefs and values, irrespective of what pressures may be applied.

To be authentic, it is not enough to know your values, you must be your values.

Brene’ Brown describes it as “a collection of choices that we have to make every day. It’s about the choice to show up and be real. The choice to be honest. The choice to let our true selves be seen.”

What does your business actually do?

Ask someone what their business does and you’ll usually get an answer about products or services.

  • “We sell tyres.”
  • “We provide accounting services.”
  • “We manufacture widgets.”

All perfectly accurate but it completely misses the bigger picture.

One of the questions that changed my thinking about business was:

What difference does your organisation make to the communities you serve? (Steve Bowman, Conscious Governance)

This question can take you somewhere quite different.

  • Maybe you don’t sell tyres. Maybe you help families stay safe on the road.
  • Maybe you don’t provide accounting services. Maybe you give small business owners the confidence to make better decisions.
  • Maybe you don’t manufacture widgets. Maybe… well, I’ll leave the widgets to you.

The important thing is that changing the question changes the conversation. Once we start thinking about the outcome we create rather than simply the transaction we make, different opportunities begin to appear.

It changes how we talk about our business.

It can change who we partner with.

It can influence what we buy, who we employ and where we put our time and resources.

Most importantly, it gives people something bigger to connect with. Remember business is between people and this gives others a chance to engage at more than just a transactional level. Fundamentally, we all want some connection to those we transact with.

Sometimes it begins with a very simple question.

What difference do we make?

You might be surprised where the answer takes you.

It should be simple

We know we should keep it simple. Even the Roman Emperor Marcus Aurelius said “Ask yourself at every moment – is this necessary?”

Knowing it and doing it are two different things though.

Had a great coffee catch up yesterday with a team who have been successful for well over 15 years using a very simple business model. It’s not sexy, it doesn’t glitter like gold and it’s a business that will never be listed on the NZX. But it works, and it works well.

When they’ve found things getting hard, wheels spinning and everyone is head down in detail, going back to a simple core model has reset what they’re doing.

Even the very best organisations need to take that step back and just check it. When life seems unproductive and being busy isn’t resulting in more returns, ask yourself “are we only doing what matters?”.

Whether you’re striving for profit or there for community outcomes, remember that complexity is the trap that can lead you astray.

It is who I am

Lately I’ve taken the unusual step of adding humorous memes to some of my posts on LinkedIn (generally involving coffee). Now I understand that some people may see these as more suited to Facebook than LinkedIn. After all, LinkedIn is a serious, professional platform. 

  • This is a deliberate move on my part, with some “professional” thinking behind it.
  • It is completely normal to be able to have a laugh within a professional environment
  • Humour, at the right time, can be a very powerful leadership tool

Sometimes life is too serious not laugh at

For me though, I have chosen to odd the occasional funny meme for one very important reason. Authenticity. I am professional and I take things seriously – but I will always see something to lighten the mood. 

I may be an introvert but I will crack a joke. That is who I am