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Session-7
CORPORATE INTEGRITY, CORPORATE
CULTURE, AND ETHICAL LEADERSHIP
1. Integrity versus Compliance Based Approach to
Corporate Ethics.
2.Culture and Organizational/Corporate Culture.
3. Ethical Leadership and Corporate Culture.
4. Building an Ethics-based Corporate Culture.
5. Can Culture be Enforced by Government
Regulation?
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Integrity versus Compliance Based Approach to
Corporate Ethics (1)

corporation .
General
Manager
internal relations
external relations
Internal
External environment
environment of of the
the corporation corporation
as a whole

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Integrity versus Compliance Based Approach to
Corporate Ethics (2)

.
 Integrity versus Compliance Based Approach to
Corporate Ethics (3)
Well, You see there are potentially many limitations of a compliance-based
interesting … approach, namely:
(1) Law (backward looking) is too slow for the fast changing business.
(2) Inadequate to deal with “grey” areas of practice and fair treatment.
(3) Incompatible with the philosophy of empowerment.
(4) Law is not designed to inspire human excellence.
Thus, if the concern is to establish
organizational development, an integrity-based approach need to
be put into place, though it is more demanding:
(1) Developing an ethical framework (compass) PURPOSE
(2) Aligning practice with principles (goals & objectives)
(3) Overcoming cynicism
(4) Resolving ethical conflicts
PRINCIPLE PEOPLE
(obligations, aspirations) (2nd & 3rd party)

POWER (authority & ability)

 Integrity versus Compliance Based Approach to
Corporate Ethics (4)
INTEGRITY-BASED APPROACH

GLOBALIZATION TECHNOLOGY
D*&^%
43)(kjT ethical Organizational Organizational ethical
Gb;”.,>> force Competitiveness PURPOSE Effectiveness force
[<kjh]!
(goals & objectives)

PRINCIPLE PEOPLE
Manage
(obligations & (2nd & 3rd party)
ment
aspirations)

POWER
fun & challenging (authority & ability)
ethical workplace, ethics as ethical
force positive mind-set, a way of life force
creativity & innovation
COMPETITION PUBLIC PERCEPTION
AND THE LAW
 Integrity versus Compliance Based Approach to
Corporate Ethics (5)
Then, what is
organizational Organizational integrity is a trait reflecting
integrity or organization’s capacity for ethical self-governance,
corporate
integrity? where ethics has become part of organizational or
corporate culture or a “soul” of the organization.
As such, ethics provides the infrastructure for social relationships
and social interactions required for enhancing human development
(individually and collectively).
The principles of right and responsibility and the ideals of honesty-
trustworthiness-fairness constitutes a framework that guides
individuals to develop expectations and take actions, while
facilitating cooperation and mutual-trust in the communities of
which individuals are members.
Culture and Organizational/Corporate Culture (1)
.
C
O C
R U
P L
O T
R U
A R
T E
E

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Culture and Organizational/Corporate Culture(2)
.

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Culture and Organizational/Corporate Culture(3)
.

A culture that
commands

Steward the
process

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 .

Rain again…
What man
wants, really?
I miss you!
Ethical (good) leader:
Effective (“good”) leader:
guide, direct, and escort others
guide, direct, and escort others
toward an ethical common
toward a common destination
destination successfully and
successfully and efficiently (can
efficiently by taking an ethical
be thru threats, intimidation,
leadership method/style (e.g.
coercion and harassment).
thru rational persuasion).
[ ]
[ ]

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12
 .

Hi you!
Stop watching
me! Think…

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Can Culture be Enforced by Government Regulation?
.

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