Lecture 18 - Compliance vs. integrity

Question 1

Mention 6 characteristics of Compliance as described by Paine

Answer 1

Compliance:
1. Legal license to operate
2. Compliance with laws and standards
3. Auditing and controlling
4. Lawyer driven
5. Autonomous beings guided by material self-interest
6. Prevent criminal misconduct

Question 2

Mention 7 characteristics of integrity

Answer 2

1. Social license to operate
2. Consistent ethical behavior based on values
3. Leadership and accountability
4. Our principles shape how we act
5. Enable responsible conduct
6. Management driven
7. Social beings, guided by material self interest and values, ideals + peers

Question 3

Mention 3 reasons why compliance cannot fully ensure ethical decision making

Answer 3

1. Compliance is by definition reactive
2. Compliance can lead to perceived moral mediocrity
3. Compliance is as good as the rules and actors’ interpretations of them

Question 4

Mention 5 steps of managing an integrity culture / strategy

Answer 4

1. Values and commitments that make sense
2. Integration of values into management systems
3. Commitment by leaders and tone from the top
4. System and structures should support and reinforce its values
5. All managers need to have decision-making skills, knowledge and competencies to make ethical sound decisions

Question 5

Mention 4 factors of developing and anchoring corporate values

Answer 5

1. Involve
2. Simple
3. Accountable
4. Honesty

Question 6

Mention 5 ways to shape the tone from the top

Answer 6

1. Clear message
2. Authenticity by leaders
3. Framing of message - emotional connection
4. Stories are a good vehicle
5. Frequency of messages - too much may be ignored