"Small is Beautiful" Making Integrity the DNA of the Organization

At a Summit hosted in August 2024, by the NHRDN for the SME Sector, a senior Panelist made an important observation based on his experience  which stuck : Business Schools must conduct a Programme on “Ethics” so Graduates practice “ Ethics” as a default as they transition to the  Industry.  Amongst the other challenges that confront the SME Sector dealing with dis-integrity is certainly not on the Wish List of the Leadership.                                                                          

This took me down memory lane when as Head of HR I was confronted with several  “ Code Red Moments” across Businesses I worked. Coming to specifics , the Procurement Team  demanding high value gifts from the Suppliers, Few Sales Team Members found misusing the Travel Policy, Favored Retailers return unsold Inventory under some pretext in collusion with the Sales and the Quality Control turning a blind eye to a select few manufacturers. Moving the Travel Business to other Stand alone Operators, Using the Free Fuel Facility for Personal Vehicles and submitting fabricated Invoices under Policies to claim money as an entitlement rather than an expense reimbursement. The buzz around bulk hiring for a Healthcare Start Up was dominated by a“ Cash for Jobs” Credo. The “ Golden Boy” phenomenon where I witnessed a high performer getting away with a breach of norms. Importantly a C Suite Executive rationalizing a Quid Pro Quo for favours received from the Accounts team. I can add many more to this list from my corporate journey of four decades.                                     

Yes, these incidents may sound familiar to most of us reading this Article. What was surprising that every organization had a printed  “ Code of Ethics, Certified Standing Orders” “ Value Statements “  pasted at all prominent places, a Vigilance Manager, prolonged investigations, widely talked about consequences of such acts  and hushed up involuntary exits. And Yet these incidents ..  What was the missing piece , how could we get employees to” Do the Right Thing”,  What if such brazen acts hit the media, Is not integrity the outcome of a displayed Policy, should our hiring practice be more stringent, should the senior managers be above the Code?                              

What are the factors  that contributed to “ Integrity Breaches”?  Based on a deep dive into the subject and on hindsight I think were the presence of some or all of the factors including ambiguity, double standards ,  bystander silence ,  the fear of reporting, rationalizing breaches with false tradeoffs and a “ doing what is takes mindset”.  Think about it if this is a Problem that bothers your Organization as these could be some of the underlying reasons.

To make “ Integrity “ a Default Behaviour what I did in consult with the Leadership Team: While the Leadership Buy In was a Given we prepared a Customized Code of Ethics: A truly representative Code specifically aligned to the Purpose, Values & Culture  of the Organization. The New Code factored  trade practices of the industry as well as the Codes of respected Organizations.

Communicating the Code: To give it the importance, the Code was delivered by a member of the Leadership Team at the time of Induction and for existing employees through specific meets. It was uploaded on the Intranet and sent as “ Refresher Mails “ at a pre-determined frequency.                                                                                                                                         

Clear Reporting System: For employees to report ethical lapses a Hotline and a Confidential Mail ID was provided. The access of the Mail Id was also given to Vendors Suppliers and Service Providers. The prospect of hiring  a Third Party was reserved for a later date.
Consequences: For the Code to be effectively enforced , violations at every level must bring consequences which are fair and reasonable. This was the difficult part as much as the proverbial “Belling the Cat.
“Constant: To make sure that “ Integrity “ remained the Central Theme we kept it as a constant drum beat not as a background noise. Taking it up at Town Halls / All Hands Meet with Real Life Examples ( names changed for Privacy) was one such way we did it. The Key here is to refresh it imaginatively and memorably.  

Contract of Employment: Suitable Clauses were added to make consequences of  “ Integrity Breaches” more serious especially for the Senior Leadership.

Imperative Today  What was private, is now public and any lapse of judgement becomes common knowledge given the all-pervasive social media. This brings the Organization into  “ Spotlight” for all the “ Wrong Reasons” adversely impacting the Reputation, the Brand and the Business. What is more important now than before : With the Workplace Getting Redefined,  the worker coming from diverse backgrounds & geographies, it has become imperative for Organizations to bind their sense of right and wrong by a common set of rules clearly defining “ what is the right thing to do”. The “ How To” is the Heart of this Article based on practical experience. Integrity is no longer a “ Soft “ Issue, its role in contributing to business success is as important as the “ Numbers”.        

By Triveni Mehta