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Ethics

Why New Managers Fail to Stop Unethical Behavior Among Subordinates

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Unveiling the Causes Behind Managerial Failure in Ethical Oversight Embarking on a new role presents a host of challenges, and discovering unethical or potentially illegal practices within the organization can be a pivotal moment. The real question that emerges is whether you will be the catalyst for change in the face of such issues.

Imagine stepping into the shoes of a new retail banking sales manager at Wells Fargo, where fraudulent accounts were the means to achieving targets. Picture yourself becoming a manager at Volkswagen, only to uncover the manipulation of emissions tests by engineers using software. In both scenarios, middle management failed to intervene as these unethical practices took root.

As individuals rise to positions of authority, they wield the power to address unethical practices, yet sometimes, they don’t. Personal character flaws such as greed, sexism, or an unwavering pursuit of self-interest can drive this inaction, fostering complacency. Preserving the status quo and maintaining their position may become a higher priority than confronting misconduct.

Another significant factor at play is group identification. This involves adopting the group’s values, beliefs, and behaviors, becoming intertwined with one’s self-concept. Higher-ranking individuals often intensify this identification, feeling a stronger bond with their group or organization. Their membership becomes a point of pride, and they are more motivated to contribute to the group’s objectives than their lower-ranking counterparts.

However, this deep identification with the group comes with an ethical downside. It can obscure a manager’s ability to recognize ethical issues within the group. In simpler terms, those in higher-ranking positions may fail to perceive unethical actions because their strong identification blinds them to ethical violations. Consequently, they may hesitate to take action or intervene due to a lack of awareness.

Idea for Impact: Companies need to explore strategies that instill a strong moral compass in future business leaders. These leaders must maintain their ethical integrity as they climb the corporate ladder. Creating a safe environment for whistleblowing is crucial, empowering individuals to report dishonesty without fear of retaliation. It’s time to foster ethical leadership and ensure that the ascent up the corporate hierarchy aligns with an unwavering commitment to integrity.

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Embracing Cultural Sensitivity: A Case Study of Akira Kurosawa’s Oscar Speech

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Consider the acceptance speech delivered by the renowned director Akira Kurosawa when he received the Honorary Award at the 62nd Academy Awards in 1989. This award recognized his lifetime achievements and his significant impact on filmmaking, both in Japan and internationally.

I am very deeply honored to receive such a wonderful prize, but I have to ask whether I really deserve it. I’m a little worried, because I don’t feel that I understand cinema yet. I really don’t feel that I have yet grasped the essence of cinema. Cinema is a marvelous thing, but to grasp its true essence is very, very difficult. But what I promise you is that from now on I will work as hard as I can at making movies and maybe by following this path I will achieve an understanding of the true essence of cinema and earn this award. George [Lucas], Steven [Spielberg]. Thank you.

In the Western world, some may perceive this language as a display of false modesty. It appears that the legendary Kurosawa, whose cinematic genius revolutionized storytelling, downplays his abilities and achievements, seemingly deflecting praise.

Let’s Be Cautious Not to Impose Norms We Call Our Own

While Kurosawa’s speech might come across as insincere or disingenuous, it’s important to consider cultural relativism. Different cultures have varying values, norms, and philosophical perspectives. What might be seen as a positive sentiment in one culture can be perceived differently in another.

Respecting Diversity: Avoiding Imposing Personal Norms As this case study illustrates, the concept of humility in Asian cultures may differ from that in Western cultures. Many Eastern cultures approach humility not merely as an understanding of personal limits, but as a way to let go of the self, understand one’s place in the larger scheme of existence, and connect with a greater reality. (In contrast, Western traditions, for they’re based in Abrahamic traditions, often conceptualize humility as submission to God.) Eastern traditions encourage adopting a particular perspective on life, focusing on understanding the small role one plays in a vast universe, appreciating others, and recognizing their inherent worth. For instance, in Buddhism, one of the elements of the eight-fold path is “right intention,” which involves freeing oneself from selfishness, partly achieved through humble thought.

Idea for Impact: Cultural sensitivity is essential to avoid unintentional offense. Interpreting sentiments and communication within the cultural and philosophical context of the individuals involved is crucial for effective cross-cultural understanding and respect.

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  5. What Appears Self-Evident to One May Be Entirely Opaque to Another: How the Dalai Lama Apology Highlights Cultural Relativism

Honest Commitments: Saying ‘No’ is Kindness

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Kindness in Honesty: Saying 'No' with Integrity Saying ‘yes’ when you really mean ‘no,’ even ‘maybe,’ is lying (Note: lying is a specific action; it requires the intent to deceive the other person.)

If you’re uncertain, you can say, “Yeah, maybe; I’ll let you know in a few days.” As opposed to “yes, I can do that” when you don’t know if that’s true.

If you’re inclined to say ‘yes’for conflict avoidance (say, when you think the other person can’t take a ‘no’ well,) you could get better at being assertive.

Sure, there’s the chance that you originally intended to follow through, but things have shifted and you may need to uncommit gracefully. But don’t make a habit of saying ‘yes’ when there’s no decent chance you can keep your commitment; it’s a burden on other people’s energy, time, and space.

Saying ‘no’—clearly and firmly when you know you can’t keep the commitment—is kindness.

Idea for Impact: Don’t say ‘yes’unless you mean ‘yes.’ Say ‘no’ when you don’t want to consent. It’s a kind thing to do. Most people appreciate sincerity and prefer others to mean what they say.

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What Does ‘Culture of Respect’ Really Mean?

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What Does 'Culture of Respect' Really Mean? A culture of respect involves a pervasive attitude and a set of behaviors that uphold the dignity, worth, and boundaries of every individual.

A culture of respect is one in which everyone knows exactly where the lines of appropriate and inappropriate conduct lie.

A culture of respect is one in which everyone takes responsibility for their actions and their impact on others. They also hold themselves and others accountable for maintaining respectful behavior.

A culture of respect is one in which everyone feels confident enough to speak up when somebody—no matter their rank—crosses the threshold of acceptable behavior.

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There’s Real Danger in Religious Illiteracy

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There's Real Danger in Religious Illiteracy From Harvard’s Religious Literacy Project:

Understanding complex religious influences is a critical dimension of understanding modern human affairs. In spite of this awareness, there remains a widespread illiteracy about religion that spans the globe. There are many consequences of this illiteracy, but the most urgent is that it fuels conflict and antagonisms and hinders cooperative endeavors in all arenas of human experience.

In our multi-faith societies, it’s essential not only to understand our own faith traditions (or lack thereof) but also to grasp the traditions of others. Religion carries significant weight in many people’s lives, shaping individual and collective history, politics, and social dynamics through beliefs, practices, and traditions.

Unfortunately, widespread myths and factual inaccuracies about religious beliefs and texts often lead to misunderstandings and ignorance, fostering fear and prejudice.

Idea for Impact: Take the time to learn about different religions. It gives you a peek into people’s perspectives, values, and what drives them. Plus, it helps you recognize and deal with your own biases and stereotypes.

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Leadership Isn’t a Popularity Contest

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Leadership Isn't a Popularity Contest Smart leaders accept that some decisions—like letting someone go or pulling the plug on a project—might not sit well with everyone, but tough decisions must be made for the greater good.

Leadership demands a tough mindset. While considering conflicts and respecting diverse opinions, leaders must prioritize decisions based on facts and organizational goals rather than personal preferences.

Leadership isn’t for you if you can’t handle others’ disapproval. Seeking constant approval and validation only weakens your ability to hold yourself accountable.

Idea for Impact: As a leader, be tough when you must and kind when you can. Raising your likability should be an aspiration and not a goal. Being trusted to make the right decisions is more important than sacrificing short-term popularity.

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Cultural Differences and Detecting Deception

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Cultural Differences and Detecting Deception Spotting a liar isn’t an exact science; factors like eye contact, direct versus indirect communication, and many of the frequently highlighted “sure signs” of a liar may not always hold up across different cultures.

If you’re seeking more reliable indicators to help you discern truth from fiction, here they are:

  • Inconsistent Stories: Liars often weave a web of contradictions, changing their narrative as they go. When the story keeps evolving, it’s a red flag.
  • Lack of Detail: Liars tend to avoid specifics, offering vague responses that leave you with more questions than answers.
  • Defensiveness: While a poker face can hide the truth, excessive defensiveness can signal deception. When confronted, liars may become overly protective of their secrets.

Idea for Impact: Cultural sensitivity is essential when navigating the complex realm of truth and deception.

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Ethics Lessons From Akira Kurosawa’s ‘High and Low’

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The celebrated Japanese filmmaker Akira Kurosawa is known for crafting movies that grapple with moral dilemmas. In his highly regarded work, High and Low (1962,) a successful self-made millionaire faces a wrenching ethical conundrum: his son has been abducted, and he must give up everything he has worked hard for to secure the ransom. However, he soon discovers that the kidnapper mistakenly took his chauffeur’s son instead. The question now becomes: is the life of the worker’s child worth the same sacrifice as his own? In a powerful scene, the millionaire and the chauffeur lock eyes, and the viewers are left to ponder if all lives are equally valuable.

What makes this movie a standout is its portrayal of the intricacies involved in making difficult moral choices. Our conscience cannot always provide us with the necessary guidance to navigate the complex ethical issues we face in modern society, particularly when competing values and interests are at play. Ethical decisions are about more than just meeting a specific standard, as many dilemmas are so multifaceted that it’s difficult to distinguish good from evil or determine which choice is most worthy of preference.

The key takeaway is that tackling complicated moral problems requires continuous effort and investment in researching and contemplating the proper response. Seeking input from trusted colleagues who can provide a secure space to explore the nuances and implications of difficult decisions, particularly those you might not feel comfortable discussing openly due to societal pressures, is critical.

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Don’t Overemphasize Hitting Financial Targets

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Research shows placing too much focus on hitting financial targets can have negative effects on employee morale. It can even lead to unethical behavior, such as cutting corners or falsifying data, which can ultimately harm the company’s reputation and financial performance.

When conversations constantly revolve around financial metrics, employees may feel like they’re reduced to mere cogs in the company machine, solely responsible for driving up profits to satisfy shareholders. Instead, foster a connection between employees and the organization’s purpose. Emphasize the intrinsic value of their work and remind them that it’s not just about monetary rewards. Personal growth, meaningful experiences, and recognition are equally important.

Let one message resonate throughout the organization: Your work holds significance beyond financial targets.

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The Enron Scandal: A Lesson on Motivated Blindness

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The fallout from the Enron fiasco had far-reaching effects on the economy and the public’s trust in corporations. It serves as a powerful lesson in the dangers of motivated blindness—when individuals have a personal stake in unethical actions, they often look the other way or find ways to rationalize their behavior.

The folks at Arthur Andersen, serving as Enron’s external auditor, found themselves in a precarious situation. On the one hand, they were supposed to ensure financial integrity, but on the other hand, they acted as consultants, aiding Enron in manipulating financial transactions to deceive investors and manipulate earnings. Enron generously poured hefty fees their way, with auditing fees exceeding $25 million and consulting fees reaching $27 million in 2001. So, why would they want to put an end to this lucrative gravy train? To complicate matters further, many auditors from Andersen were eagerly vying for coveted positions at Enron, just like their fortunate colleagues.

To combat motivated blindness, it’s crucial to reflect on our biases, hold ourselves accountable, and actively seek out diverse perspectives to gain a broader understanding of any given issue. Max Bazerman, a professor at Harvard Business School and author of The Power of Noticing: What the Best Leaders See (2014,) asserts that individuals can overcome their inclination to overlook vital clues by fostering a “noticing mindset.” This involves consistently asking oneself and others, both within and outside the organization, the question: “Which critical threats and challenges might we be neglecting?”

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