MANAGING INTEGRITY AND

ETHICAL VERTICALITY:
ATTRACTING SUPPORT AND
SUSTAINING LOYALTY
INTRODUCTION
Integrity, ethical verticality and trust are
key terms in good corporate governance
which any organisation which intends to
make any impact in today’s governmental
and corporate setting must take seriously.
It is important to remind ourselves that the
need to be upright and observe every
necessary ethical dictate has come to the
front burner of corporate discourse. In
other words, accountability is gradually
being promoted in our country.
 INTEGRITY AND ETHICS

Integrity is the quality of being honest and

having strong moral principles.
key areas of integrity:

 Personal integrity (integrity in personal

endeavours)
 Professional integrity (integrity in professional
endeavours)
Ethics
Ethics are moral principles that control or
influence a person’ behaviour.
Key areas of ethics:

•Professional ethics (moral rules and

regulations guiding a professional’s conduct)
 Business ethics (moral rules and
regulations guiding the conduct of
a business organisation)
AREAS OF BUSINESS / CORPORATE
ETHICS

 Take-over bids( even in govt.)

 Industrial espionage
 Corporate governance
 Corporate political financial contribution
 Corporate abuse/crime (bribery, kickbacks,
facilitation payments)
 Human resource management ethics
- Employee raiding
- Discrimination on the basis of age, religion,
sex, disabilities, weight, attractiveness,, etc.
 Employers’ privacy/confidentiality
 Production ethics
 Ethics on intellectual property, knowledge and
skills
IMPORTANCE OF INTEGRITY
AND ETHICS

 Integrity and ethics help professionals

and organisations in the process of
building their reputation/image
 They assist to build customers’ trust
and confidence in organisations
 Integrity and ethics assist in reducing
governmental rules which may be too
stringent for organisations

 They help in checking the excesses of

organisations and professionals
MAKING INTEGRITY AND
ETHICS A CULTURE

 Lead by example
 Preach it and practice it
 Reward honesty
 Formulate clear policies on employees’ ethical
conduct

 Formulate and circulate integrity and ethical

inspiring statements

 Get the employees to sign an agreement on

compliance
 Consciously promote integrity and ethical
values
 Install checks and balances
 Organise training on ethical issues. It may
cover organisation’s polices, specific case
studies and legal requirements.
 Monitor compliance
CORPORATE GOVERNANCE

Corporate governance refers to the manner

in which an organisation or a management
discharges its responsibilities
 KEY QUESTIONS ON CORPORATE
GOVERNANCE
 Is the organisation effective?
 Are its operations transparent?
 Does it conform to nationally and
internationally accepted standards?
 FEATURES OF GOOD
CORPORATE GOVERNANCE

 Democratic process.

 Rule of law.

 Civil liberties and human rights.

•Good economic and financial
management.

•Efficient and effective welfare

delivery system.
FEATURES OF POOR CORPORATE
GOVERNANCE

 Excessive government intervention.

 Excessive regulation of private entities.
 Adoption of preferential scheme.
GENERATING SUPPORT AND LOYALTY
THROUGH INTEGRITY AND ETHICAL
VERTICALITY
 The society respects and supports moral and
ethical organisations
 International organisations and donors are
quick at extending their facilities to trust-
worthy organisations
 The government can also show its
support through relevant assistance

 Highlevel of ethical behaviour reduces

government intervention

 The customers and other stakeholders

will respect the organisation.