Managing for organisational integrity

Abstract

This chapter revisits core ideas from my 1994 article “Managing for Organizational Integrity” and explores a critical issue not discussed in the article: the role of corporate boards. In the chapter, I first re-examine the article’s ideas about the origins of corporate misconduct using examples from recent decades. I then turn to the differences between compliance-orientated and integrity-orientated ethics strategies. I argue that the distinction is still valid, though not as widely understood as it should be. The final section discusses corporate boards and how their role regarding ethics has evolved since the early 1990s. I conclude that the decisions boards make in the ordinary course of governing are fundamental for a company’s ability to operate with integrity. My 1994 article made the case that organisational integrity is a management issue - not just a personal one. This chapter makes the case that it is ultimately a governance issue as well.

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