Ethical fading is a legitimate business risk. It occurs when the ethical aspects disappear from the decision-making process and happens when people focus heavily on some other aspect of a decision, such as profit. CEOs and executive teams may focus on compliance, but other competing priorities within the company might influence the final decision. That can lead to court, and penalties. Fines can convert ethical issues into business problems by attaching a price tag to them.
This piece draws lessons from the case of Carnival Corp. and its subsidiary Princess Cruise Lines, which were initially fined $40 million for dumping waste, and then another $20 million for violating their probation terms, by the US Department of Justice.
Via Markkula Centre for Applied Ethics, Santa Clara University, 24 June 2019See More
2020 has provided a range of unwelcome challenges to every sector. Worryingly, some leaders haven’t responded as well as they could have, or in ways which have engendered public trust and confidence.
Following up the latest Edelman Trust Barometer a supplementary study, conducted in early February, “demonstrated that the national bushfire crisis sparked a dramatic decline in trust from an all-time high of 68 points in the informed public to 59 points, a 9-point drop in just three months.
“Australia’s informed public saw a severe breakdown of trust from the government in response to the bush fire catastrophes. This should have been an opportunity to unite the nation and build security, but instead, the lack of empathy, authenticity and communications crushed trust across the country,” said Michelle Hutton, Edelman CEO.
How confident are you in your abilities to respond to a crisis?
via FIA, March 2020See More
Every year, in the second or third week of January, Larry Fink, Chairman and CEO of Black Rock, writes a letter to CEOs of the world. As one of, if not the, largest investors in the world – BlackRock oversees $7 trillion – these letters have impact. CEOs and Boards pay attention, and they react. As the New York Time’s Michael Barbaro says, his letters have ‘a kind of biblical quality in the world of business.’ This year Larry Fink has addressed the climate crisis.
via The New York Times, 24 February 2020See More
The 2019 Ethics Index quantifies the perceptions of adult Australians of the overall importance of ethics, and what the actual level of ethical behaviour is, within Australian society, examining various sectors, organisations, occupations, issues and influences across. On Climate Change the message for business leaders is clear – Australians believe they have an urgent ethical obligation to act.
Lawyers Weekly, December 2019See More
Emilie Prattico offers a framework for action on climate change – justice and deliberation are as important as the science. “While the requirement for scientific and technical expertise about climate change cannot be denied, there are ways to reconcile this reality with the needs for inclusive, democratic processes about climate action. In his theory of deliberative democracy, the German philosopher Jürgen Habermas (1929-) provides a framework within which democratic processes can distinguish between the different dimensions of discourse – scientific-pragmatic and moral-political. In the context of climate change, this means that there are pathways to address the problem that don’t require scientific or technical expertise, and that are geared towards tackling the collective issues it raises democratically.”
Aeon, 18 December 2019See More