AWB – Reaping and Sowing

While the focus of every business should be running profitably, for some it means the exclusion of everything else.

That is probably the most obvious outcome to emerge from the Cole Inquiry into the actions of the Australia Wheat Board who were found to have paid bribes to Iraqi dictator Saddam Hussein.

For former executive Norman Davidson Kelly, described by the Cole inquiry as having "no commercial morality", it means losing a lucrative deal with BHP Billington.

BHP Billington chief executive Chip Goodyear signalled the mining giant would attempt to dump his Tigris company as a joint venture partner in Iraq.

Not only do the unethical actions of a few executives bring harm to themselves but also to the people they lead in business.

Earlier this year the American Management Association published a survey on Ethical Enterprise.
According to the AMA/HRI survey, working in an environment with cynicism or diminished morale, improper training about, or ignorance that, acts are unethical, and the lack of consequences when caught are the next leading factors likely to cause unethical behaviour. These factors are followed by the need to follow the boss’s orders, peer pressure/desire to be a team player, desire to steal from or harm the organisation and, paradoxically, wanting to help the organisation survive.

The survey also found that the single most important ethical leadership behaviour is keeping promises, followed by encouraging open communication, keeping employees informed and supporting employees who uphold ethical standards. If an organisation has leaders who simply don't “walk the talk” when it comes to ethics, there’s little hope of maintaining a strong ethical culture.

All business owners should articulate the standards of behaviour expected from their team but just as importantly, be clear on what moral and ethical standards that one is planning to live by and not simply pay lip service to.