2014-05-08

by Caroline Douglas, CMI Northern Ireland Board

When was the last time you were trained on ethics?

Still thinking?

Most organisations will say that they are ethical but many don’t outline to employees what they mean by ethical behaviour. But make no mistake, the spotlight is on management ethics. Business leaders still face a “reputation hangover” from the 2008 crash, according to the well-regarded Edelman Trust Barometer. Is it any wonder? After the seemingly endless scandals to emerge from the banks – rate fixing, mis-sold debt, PPI – plus scandals like the horse-meat scandal and public sector crises like those facing the NHS in Mid-Staffordshire, it’s hardly a surprise.

For CMI, ethics are at the heart of what great management in the 21st century is all about. Of course, everyone’s view of ethical behaviour is different. Is it actually improved through training on fraud, or contract management, or time and attendance and a well-monitored internet policy? Probably not if these are stand-alone policies. CMI’s research suggests that too many rules can in fact reduce the sense of personal responsibility. That means companies need to develop cultures where managers think for themselves, using their heads and hearts, to make the best decisions.

But it seems that’s all too rare. Too many of us leave our personal sense of ethics at home when we go to work. We switch off our sense of care for others and sometimes start blindly following rules without really thinking about the impact of our actions. A new report by CMI and MoralDNA says 74% of managers risk falling into this trap – 28% more than among the non-managerial wider population.

The research offers great insights into how managers think about ethical decisions. It seems that men and women do have different ways of thinking about ethical matters. Managers in their 50s or 60s are much more likely to display a sense of independence about ethical issues than those in their 20s. And so are more senior managers. There are also some intriguing differences between people of different political views – with left-leaning people placing greater value on the notion of care for others, and those on the right emphasising the importance of honesty and obedience.

None of this says that one person’s style is inherently better than other. People have different perspectives and teams always benefit from having diverse points of view.

But it seems certain that the boss has a key role to play. After all the CEO is usually the instigator of ethical standards in any organisation. But what type of leader really pushes it, believes in it and advocates it?

Interesting research from Herrmann International over the last 40 years has identified 4 main thinking preferences among leaders. There’s a real mix of styles across the categories. A Red thinker relies on intuition and feelings, so ethics have to align with their values if they’re to take action. A Green thinker relies on policy and procedure, so getting the systems and structures right is their priority. A Blue thinker values critical objectivity while a Yellow thinker wants creativity and innovation.

As a manager in one of Northern Ireland’s local Councils I’ve observed these differences in the people I work with. One of the best things the management team has done has been to introduce training for managers to recognise their personal style and the style of others so that they can better work with their peers and see things from their point of view.  It’s helped me personally in preparing presentations that get the message across in a way that works for the audience.

But of course a few special people – about 3% – don’t demonstrate a thinking preference. These “‘Whole Brain Thinkers” seem to move effortlessly between styles. It may look like good news for these people but they have been known to take a long time making decisions.

This reiterates the CMI findings: that leaders need to create diverse teams, with different ways of thinking about the big questions we all face, within their organisations.

As the professional body for management and leadership CMI has a key role to play too. Every member signs up to the Code of Practice for Professional Managers, and CMI will be launching a revised version later in 2014. Professional standards are also at the heart of Chartered Manager, the gold standard for management and leadership.

But ultimately every manager has to take responsibility for their own actions and how they create more ethical cultures. Working out what’s right – and having the courage to do it – is a big challenge for us all.

Download the Managers and their MoralDNA report for free plus a CMI ethics toolkit – and measure your own MoralDNA – at www.managers.org.uk/ethics-toolkit

Caroline Douglas is a local government manager and is a member of the CMI Northern Ireland Board.



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